AA Sust Report 2006 - Rio Tinto

www.angleseyaluminium.co.uk
sustaining growth
SUSTAINABLE DEVELOPMENT REPORT 2005
RIO
TINTO
ALUMINIUM

1
TABLE OF CONTENTS
Message from the Managing Director 2
01 Company Profile and Operations 3
02 Occupational Health and Safety 5
03 Our Business Approach 8
04 Markets and Suppliers 11
05 Communities 12
06 People Commitment 14
07 Energy and the Environment 16
08 Energy 19
09 Performance Summary 20
10 External Verification, Contacts and Feedback 21
WHAT'S INSIDE?
This is Anglesey Aluminium Metal Limited's (AAM) annual Sustainable
Development Report that provides all our employees, their families, our
neighbours, community members and other interested parties with an overview
of our operations and performance and a summary of our commitment to
integrating sustainability into our business processes in 2005.
What is Sustainable Development?
Nobel physics laureate Murray Gell-Mann talked about sustainable development
as 'living on nature’s income rather than its capital'. In other words individuals
should endeavour to 'leave the world better than you found it, take no more than
you need, try not to harm life or the environment, make amends if you do.'
When extracted and used in ways that are socially and environmentally responsible,
metals and minerals can help to reduce the pressure on biological resources
and thus contribute significantly to the transition to sustainable development.
Rio Tinto Aluminium's vision is to be “the world's preferred aluminium business
from mine to market” with a core purpose “to create the most sustainable value
from our resources and relationships”.
Why bother with sustainable development?
Simply we believe it is the best business behaviour and in the interests of all
our stakeholders to do so. Commitment to sustainable development allows AAM
to build a responsible reputation and it also reflects the values and concerns of
the workforce which makes for a more attractive company to work for.

Welcome to the 2005 Anglesey Aluminium Metal Limited (AAM)
Sustainable Development Report. With this report we seek to provide
information to all our stakeholders on our Health, Safety, Environment and
Business performance.
2005 was a year of change at AAM. We implemented new Personal Protective
Equipment (PPE), reached an agreement with our employees to change the way
we work and initiated Project 2010, an improvement programme to prepare us
for the increasing costs of our future energy. We achieved this against a
backdrop of solid metal production and value-added product results.
Finding a new electricity supply that will sustain the business going forward
after 2009 remains our critical issue. During 2006 we will put every effort to
work with stakeholders and Government to seek a solution.
Unfortunately our safety performance equalled that of 2004 and failed to meet the
improvement targets we had set for ourselves. I am pleased to note that the
Carbon Department reached 1000 days without a Lost Time Injury, a significant
achievement. Our stated aim of zero Injuries remains the goal of our team.
Our health programme has made significant progress during 2005. Additional
resources have been employed to improve testing and monitoring and to
understand the health issues in our working environment. These activities
2005 PERFORMANCE SUMMARY
MESSAGE FROM THE
MANAGING DIRECTOR
Contribution to local community in salaries/contracts Approximately £20 million
Frequency of Lost Time Injuries (time away from work) One every two months
Energy efficiency of the reduction process 95 per cent current efficiency
Production Approximately 144,000 tonnes
Energy use per unit of aluminium produced 76.6 GJ/t Al
Greenhouse gas emissions 2.51 t CO2-e/t Al
Freshwater consumption 1.6 ML/kt Al
Fluoride emissions 1.12 (kg/t Al)
Environment incidents (category two or above) 2
“I invite you to work with us in 2006 as we continue on our
journey of continuous improvement to secure a long-term
sustainable future for AAM and our employees in partnership
with the community.”
RON DOUGLAS
Managing Director, Anglesey Aluminium Metal Limited
supplement the performance of the medical centre and this work will continue
into 2006.
Environmentally we reported several fluoride emission permit exceedances to
the Environmental Agency during the year, however with some focussed
operational improvement by the Carbon Department we are now below fluoride
permit levels.
We continued to perform well despite reducing metal production due to
extraordinary energy costs in November and December.
A very successful Open Day provided an opportunity for the local community to
visit the smelter and view our operation first hand. We took the opportunity to
share some of the issues facing the smelter and the Project 2010 programme we
have put in place to address these.
2005 has been challenging, however the commitment of our employees and
their families together with the support of the community and other stakeholders
has enabled the ongoing success of our business.
RON DOUGLAS
Managing Director,
Anglesey Aluminium Metal Limited
Aluminium cast samples
12

01
COMPANY PROFILE AND OPERATIONS
Rio Tinto (51 percent) and Kaiser Aluminum (49 percent) jointly own
Anglesey Aluminium Metal Limited (AAM), with operational management
undertaken by Rio Tinto Aluminium, a wholly owned subsidiary of Rio Tinto.
Located at Holyhead in North Wales, AAM has been in operation since 1971,
producing aluminium in differing forms for extruding,
rolling and remelting. AAM is one of the largest
suppliers of aluminium metal in the United Kingdom
British
Mainland
and sells its products throughout the UK and Europe.
Glasgow
Glasgow
Edinburgh
In 2005 AAM contributed in excess of £20 million
through payment of salaries and wages into the local
economy. Product sales in 2005 were in
excess of £143 million and taxes paid
Cemaes
amounted to £17.8 million.
Aerial view of AAM
3
Holyhead
B4545
Irish
Sea
Irish Sea
A5
Anglesey
Aluminium
Holyhead
Holy Island
Island
Anglesey
Aluminium
Valley Valley
Aberffraw
Penrhos
A55
A5
Rhosneigr
Amlwch
A5025
Carlisle
Manchester
Liverpool
Cardiff
Bristol
Plymouth Plymouth
Benllech
Llangefni
A4080
Caernarfon
Anglesey
Aluminium
Newcastle
Newcastle
Birmingham
London
Irish Sea
Beaumaris
Beaumaris
Menai Bridge
Bridge
Bangor
A5
Isle of
Anglesey
FAST FACTS
• AAM has doubled its production since it opened in 1971, rising year
on year from 70,000 tonnes in the early 1970s to about 140,000 tonnes
today.
• AAM has reduced total carbon equivalent emissions by 52 percent
since 1990, against a Kyoto target of 12.5 percent, while increasing hot
metal production by 20 percent in the same period.
• Metal production in 2005 was 144,000 tonnes in the following products:
billet, rolling ingot and one tonne sow. Consumed in the process was
280,000 tonnes of alumina and 55,000 tonnes of calcined coke.
• AAM employs 562 full time permanent employees.
• AAM consumes 255MW of power on a continuous basis,
approximately 12 percent of the power consumed in Wales.
• Aluminium is easily and endlessly recyclable by remelting without
changing its inherent properties, with a 95 percent energy saving.
• AAM owns a 200-acre coastal park that boasts breathtaking scenic
views and provides a natural shelter for many varieties of flora and
fauna. Each year about 100,000 people visit the park.
John Owen, Process Metal
Planner, analysing a sample

Harri Evans,
Operator, Carbon
4

5
02
OCCUPATIONAL HEALTH AND SAFETY
Protecting our people
OUR PRIORITIES
• Maintain emphasis on
eliminating workplace
incidents and injuries
towards our goal of zero
injuries.
• Continue risk identification
to eliminate hazards and
exposures from
the workplace.
• Encourage healthy lifestyles
and provide access to
regular health
assessments and wellness
programmes.
Our aim is for each employee, visitor and contractor who enters the site to perform
his or her tasks and return home safely without harm to their health.
Performance in 2005
In 2005 we did not achieve the safety targets we set for ourselves, however we
maintained the performance levels achieved in 2004. Although our overall safety
performance level was similar to last year, success was noted in the Carbon area as
the department reached 1000 days without a Lost Time Injury. Hazard awareness,
safe working practices, employee involvement and enthusiasm are important for
success.
Number of injuries
120
100
80
60
40
20
2002 2003 2004 2005
Total Injuries
Medical Treatment
Injuries
Lost Time Injuries
Kerri-Ann Jessep, Senior Industrial
Hygienist, weighing dust filters

Karen Hughes, Industrial Hygiene
Technician performing personal noise dose
monitoring on Geraint Williams,
Maintenance Team Leader, Metal Products
Dave Thomas,
System Specialist and
Mike Roberts,
Reduction Team
Leader
completing
SAFER book
Our Approach and Progress
We believe that a business cannot be successful unless it holds the protection
of all employees, contractors and visitors of paramount importance. This is why
we have developed core systems to help us effectively identify and control
hazards at work and communicate them to all employees. These systems
include our policy document, risk assessment system, hazard identification tool
called “Stop and First Evaluate Risk” (SAFER), procedures that define our
working systems and Best Current Practice documents that detail and describe
our processes. Using these systems and involving and engaging all employees
is important in making our operations safe.
Significant Safety Initiatives
Our standards and procedures have been undergoing review, with the Health
and Safety procedures now forming an integral part of our business system.
During the year we were audited against Rio Tinto corporate standards in health
and safety. An action plan was put together to meet the recommendations and
we have made good progress towards completion.
A major project to upgrade our protective garments was completed in
September with the roll out of new workwear. Developments in the field of
aluminium protective fabrics enabled us to change to more comfortable,
breathable, easier to maintain fabric that can be worn by all employees. As the
workwear is used as protective equipment, it is important that we have detailed
information on its maintenance, care and use. With a bar-coding system to track
each item of clothing, we have the information to review each garment's history,
and ensure they are fit for purpose at all times.
We are keen to look out for new safety initiatives and best practice opportunities
and in 2005 we had visits from some of our industry colleagues, local
businesses and customers who discussed their approach to health and safety.
We continued to take a key role in the Aluminium Federation Safety Committee,
and the North Wales Responsible Care (health, safety and environment) Group.
Within the UK, aluminium smelters were brought under the Control of Major
Accident Hazards (COMAH) Regulations. The site produced and submitted a
detailed Safety Report in February to the relevant authorities (that is, the Health
and Safety Executive and Environment Agency). This report outlined how AAM
manages hazards and the procedures we have in place to prevent accidents. We
continue to work closely with these authorities, reviewing their recommendations
and developing our systems further.
We conducted a full emergency exercise in November that involved stagemanaging
a mock incident. The test scenario activated the Disaster Management
and Recovery Team and the front line Emergency Control Team. This exercise
enabled AAM to practice and develop the skills of incident management.
Industrial Hygiene Programme
AAM now has a full time Industrial Hygiene team which includes a Senior
Industrial Hygienist and Industrial Hygiene Technician.
Carol Parry,
Senior Nurse,
carrying out
audiometic
testing
Industrial Hygiene is associated with ensuring and providing a safe and healthy
work environment through Recognition, Evaluation, Control and
Anticipation of potential physical, chemical, and biological hazards in the
workplace environment.
• Recognition - Experience gained from similar industries; Examination of
the process for potentially hazardous inputs and by-products; Feedback from
people closely associated with the process.
• Evaluation - Visual inspections; monitoring to quantify the extent of the
identified hazard; Compare findings with current health standards.
• Control - Elimination, substitution or modification to the process and work
practices; isolation or enclosure; ventilation; housekeeping; training and
education; personal protective equipment; personal hygiene; job rotation.
• Anticipation - Consideration of new technology, processes, equipment,
and materials before they are introduced into the workplace, taking into
account the consequences of unplanned process changes, failure of control
equipment, or short cuts in work practices.
Quantitative respirator fit testing was introduced during 2005 to ensure that
each person's respirator fits correctly providing appropriate protection of
their airways. A total of 570 people were fit tested, including 67
contractors.
6

7
02
OCCUPATIONAL HEALTH AND SAFETY
Health Screening Programme
During 2005, the Occupational Health group continued with a screening
programme for employees and contractors. In total, 270 employees were
evaluated against standards that are designed to gauge not only their fitness for
work, but also their general well being, as part of the site's Wellness and Fitness
for Life programme. Advice was given on diet, exercise and work-life balance
following the medical evaluation of blood and urine samples together with a
health questionnaire.
Recruitment of new staff during 2005 meant that 98 pre-employment medicals
were completed in order to evaluate the candidates' fitness, including hearing
and lung function prior to employment. In addition, six apprentices and 21
summer vacation employment students each had a pre-employment medical
before commencing their placement.
The requirements of the AAM Drug and Alcohol Policy continue with 160
people randomly tested during 2005. These tests help to ensure that employees
are able to work safely, free from the influence of drugs and alcohol.
Every pre-employment medical also has a drug and alcohol test as part of
the process.
Karen Hughes, Industrial Hygiene Technician,
carrying out respirator fit testing on John
Gwyn Thomas, Reduction Administrator
Number of Drug and Alcohol Tests
200
180
160
140
120
100
80
60
40
20
2003 2004 2005
Number of Drug and Alcohol Tests
The physiotherapist service provided to employees continues to be a valuable
asset with over 600 employees attending appointments during 2005. This service
continues to improve recovery times from injuries sustained at work or at home.
During the autumn of 2005, the Occupational Health group offered all employees
a free influenza inoculation. 60 people received the inoculation.

03
OUR BUSINESS APPROACH
Achieving sustainable growth by focussing on continuous improvement
OUR PRIORITIES
• Develop Sustainable Development (SD) decision making criteria to
ensure we consider all social, environmental as well as economic
aspects of our projects.
wneud dim, ddim yn ddewis” (“Doing nothing is not
“Gan option”) is the mantra for AAM's Project 2010
which commenced in 2005. With AAM's long term power
contract with British Nuclear Fuels Limited (BNFL)
• Introduce SD concepts to our employees.
terminating in September 2009 and with smelters throughout
• Extend structured business improvement practices of Six Sigma and Europe under threat of closure owing to high market prices
Lean Manufacturing (especially under the Project 2010 banner) to our for power and gas, AAM needs to make significant business
entire workforce.
improvements in the coming years in order to enable a
• Communicate the benefits of achieving operational excellence to
motivate employees.
• Continue to leverage benefits from the shared services provided by Rio
Tinto Aluminium.
sustainable future to 2010 and beyond.
Dave Thomas, System Specialist and
John Gwyn Thomas, Reduction
Administrator viewing the Potlines
8

9
03
OUR BUSINESS APPROACH
Project 2010 is a package of improvement initiatives intended to deliver
ongoing annual cost savings of £10 million together with increases in annual
revenue of £10 million. It consists of six components:
• Use of capital - An improved business planning process and stricter
control of capital expenditure, both initiated in 2005.
• The Way We Work - An AAM policy that includes conditions of
employment (for example, shift patterns and holidays), employee participation
in achieving improvements and the use of contractors and external services.
• Six Sigma and Lean Manufacturing - Six Sigma provides the
methodology for a data driven approach to productivity and cost improvements,
while the techniques of Lean Manufacturing allow a larger proportion of the
workforce to be involved in achieving improvements in the areas for which they
are accountable.
• Energy Efficiency - Projects that evaluate the reduction of gas and
electricity usage in our operations.
• Process Improvements - A variety of process improvement initiatives are
under way across the plant. Some are facilitated using the tools of Six
Sigma or Lean Manufacturing and others by capital improvements. There is
also a focus on asset management to ensure equipment performs to its
optimum through maintenance practices.
• Increased Revenue - Increase the percentage of metal that is produced as
value-added product, (those products which command a premium price as a
result of alloying or purity). The aim is to increase this percentage to the
maximum level.
LEAN - “Lean” is the process of waste elimination and work
standardisation to deliver reduced process variation and is achieved by
engaging more of the workforce in improvement initiatives. Following
the successful implementation of Lean techniques in the Cell
Reconstruction section, Lean is being introduced across the site. A full
time Lean coach, Rita Caven, has been appointed to provide the support
and direction.
SIX SIGMA - “Six Sigma” is a structured problem solving methodology
designed to achieve break-throughs in operating performance, productivity
and cost improvements. A further eight people are currently being
trained in Six Sigma to add to the existing 13 trained project leaders.
The focus for projects in 2006 is to improve the effectiveness of maintenance,
reduce energy consumption and improve process performance.
Six Sigma wave two trainees
Front row (left-right): Rita Caven; Donna Evans; Sam Fagan; Emma Harrison.
Back row (left-right): Louise Crawford; Derfel Jones; Keith Jones; Steve Sodzi.
The Way We Work
AAM is certified to ISO 14001 for environmental performance, ISO 9001:2000
for its quality and business systems and is subject to Rio Tinto standards for
health, safety and the environment, as well as information security. The
business systems that support compliance to these various standards and
requirements have been brought together as an integrated set of systems which
all come under the heading of “The Way We Work”. In the process, many of the
existing systems have been updated and simplified. These systems, which also
include our personnel systems, represent the values of the company and how
these values are put into practice in the workplace. They represent a framework
upon which all our other improvement work is built.
The Way We Work Policy
Anglesey Aluminium Metal (AAM) has been operational for over 30 years and
we are continually seeking to learn and improve the way we work to ensure we
meet or exceed our commitments to our customers and stakeholders.
AAM is considered to be one of the top performing smelters in the world for the
cell technology we employ. This performance is measured against agreed
objectives and targets called Key Performance Indicators (KPI) that encompass
health, safety, environment, product quality, asset utilisation and people metrics.

Derek Jones, Electrical
Craftsman, Engineering Services
Alwyn Jones,
Reduction Operator,
monitoring the process
We maintain our focus by:
- Continually assessing our performance against KPI metrics
- Using energy and raw materials efficiently to minimise the environmental
impact of the operation and maximise our potential for supplying product
that meets customer specification and is delivered on time.
- Committing to continual environmental improvement and prevention of
pollution through:
•Effective waste management including promoting the reuse and recycling
of products;
•Promoting and improving our use of natural resources;
• Involving suppliers, contractors and customers in environmental
initiatives.
- Benchmarking our performance against other operations within Rio Tinto
Aluminium and other similar businesses.
- Promoting a health, safety and environmental culture that aims to deliver A
Zero Injury and Incident workplace for all employees, contractors and
visitors, with consistent application of “if it's not safe, don't do it that
way!” and “a control action that allows an incident to be
repeated is deemed to have failed”.
- Working together to promote a fair and challenging workplace where all
employees, including contractors, are valued and their improvement ideas
welcomed.
- Providing training and information so all employees, contactors and visitors
can carry out their tasks in a manner consistent with achieving excellence in
health, safety, environment and product quality and are aware of AAM safety,
environmental and health requirements.
Our Policy
As a minimum, our aim is to meet all applicable legislative, and other,
requirements and to openly communicate our performance to the workforce and
interested parties.
This is The Way We Work and this policy is published within the workplace
and communicated to all stakeholders.
Sion Jones,
Garage Mechanic,
Engineering Services
Improvement Ideas
AAM has, in the past, had several suggestion schemes and methods for
collecting ideas to improve the business and save costs. As part of the ongoing
business improvement at AAM, we need to ensure that all good ideas are
captured and recognised; that they receive appropriate consideration and that
good ideas are acted upon. This is particularly important for Project 2010,
where we need to capitalise on all the knowledge and experience gained at AAM
over the years to ensure that we have a sustainable future post 2010. The
“Anglesey Improvement Ideas Centre” is a website that has been launched as a
means of collecting ideas, sharing them, allowing comment and giving feedback
on how ideas are being progressed and completed.
10

11
04
MARKET POSITION AND SUPPLIERS
Integrating sustainability into procurement and sales
n 2005 AAM contracted with 974 suppliers and
OUR PRIORITIES I
• Introduce Sustainable
Development (SD) concept
to our supply and
contracting community.
• Introduce specific SD
targets to all new contracts
placed in 2006 over
the value of £100K.
• Continue to leverage
benefits from the services
provided by the
Strategic Procurement
Group (Comalco).
Louise Crawford,
Buyer, Business
Services
contractors, with a total expenditure (excluding electricity
and alumina) in excess of £34M.
Integrating SD at the pre-tender stage
In 2005, as an initial step to integrate SD principles into the
supply chain, the AAM procurement team developed a pretender
SD qualification process for raw material suppliers.
The process requires potential suppliers to complete an
'AAM Request for Proposal' (RFP) document. This pretender
document was created to seek an understanding
from potential suppliers of their current SD practices.
Answers to SD questions along with a pre-contract site
visit establish a SD rating. The rating determines if a
supplier is qualified to receive an AAM tender.
Supplier performance “learning together”
The objective of the procurement function is to increase
business value by building long term relationships with
suppliers and contractors that are similarly committed to
high standards of performance in the areas of environment,
health, safety and community. AAM monitors supplier and
contractor performance in these areas. The procurement
team, along with the internal customer, engages with
suppliers and contractors when a deviation is reported. This
engagement ensures that a 'learning relationship' is
established as well as maintaining a sound commercial one.
SD on the learning agenda
In 2005 members of the procurement team commenced a
National Vocation Qualifications (NVQ) programme. This
programme was initiated to widen the knowledge of
procurement principles. Part of the programme included
the collation of SD activities by the team. In 2005 two
members of the team completed NVQ Level 3, doing so
ahead of plan. They will commence NVQ Level 4 in 2006.
“Back Haul”, saving money, fuel and double
handling… working smarter not harder!
Buyers Louise Crawford and Meirion Davies jointly
developed a logistics strategy that enabled regular
collection of a key raw material following the delivery of
aluminium to a customer. It is common practice for
haulage companies to return to their yards empty after a
delivery. Working with the raw material supplier, the
haulage company, and the internal customer, a collection
schedule was developed that enabled the haulage
company to collect AAM's raw material when returning to
their yards. This model is now part of a Six Sigma project
by Louise which has a potential to not only save money
but also valuable wasted miles, and in turn the
environment.
Meirion Davies,
Systems Specialist,
Business Services

05
COMMUNITIES
Supporting sustainable communities
OUR PRIORITIES
• Engage local communities to ensure our approach to providing
information meets their needs.
• Contribute to local community development programmes in ways that
deliver mutual benefit and long-term sustainable results.
• Respecting and protecting cultural heritage, through responsible
management of land and access to resources.
We seek to be a valued member of the community and
through our actions within this environment contribute
by benefiting employees, customers, community
members and shareholders. During 2006 we will carry
out a feedback survey of community stakeholders.
Ron Douglas presenting Royal
Institution certificates to students
at the Mathematics Master Class,
University of Wales, Bangor
12

13
Good management of our local relationships is
critical to being recognised as an integral part of a
community. A number of existing programmes
were continued and new initiatives commenced to
achieve this aim.
During 2005 AAM employees' children were again
given the opportunity of work experience at AAM.
Twenty students attended site during the summer
vacation period and carried out project work complementary
to their chosen degree course. All the students appreciated this opportunity and
made a valuable contribution to the business.
AAM maintains close links with the local secondary schools through such
activities as work placements, providing assistance with skills development and
awarding those pupils who display achievement in their later years at school.
Thirty secondary school pupils were provided with work experience in various
sections across the site. Placements are usually for a couple of weeks but two
young people were provided with the opportunity of an extended period of up to
12 months, attending site one day each week.
On an annual basis, AAM provides six £1,000 bursaries to pupils who are
embarking on University education.
Employees, family members and members
of the community at the AAM Open Day
AAM employee Wyn Jones
handing over the minibus keys
to Youth leader, Sharon Bibby
A major initiative this year was the Open Day held on 17 September. Hundreds of
employee family members and members of the community visited the site and
were provided with information about the smelter, taking advantage of the guided
tours provided on the day.
In early December, AAM in co-ordination with the local Police, kick-started the
Christmas Drink Drive campaign for 2005. The police team spent a day on site
demonstrating testing equipment and distributing information about the dangers
of drinking and driving.
The Company has again this year been able to
respond to over 70 requests for assistance from
various local interest groups and charities that all
contribute to the local community. One donation of
note was to supply one of our minibuses to be
used by the community youth clubs on the Island.
The vehicle was fully repaired and resprayed.
Tˆy Mawr Land
In October 2005, 100 acres of land was sold to the
Welsh Development Agency. This land was vital to the development of Holyhead
and the Tˆy Mawr Industrial Park. This has provided the potential to develop light
industries and create significant numbers of jobs. Whilst originally purchased to
maintain a cordon around the smelter, the benefit to the community was
recognised and the sale agreed.
Penrhos Coastal Park
Owned and managed by AAM, the Penrhos Coastal Park continues to be a
major attraction to both visitors and local residents alike. A number of
signposted nature trails guide the visitor through the park and the numerous
wooded areas provide a natural habitat to many species of birds and small
animals. The park is one of the most popular tourist attractions in the region
and the facilities are continually being reviewed and improved upon in order
to enhance visitor enjoyment.
Bursary Awards presentation for
pupils of Holyhead High School

06
PEOPLE COMMITMENT
People achieving their potential
OUR PRIORITIES
• Recruit and retain a skilled and motivated workforce.
• Maintain our commitment to engage employees and communicate our
strategic direction.
• Align people systems and processes across AAM to facilitate a
seamless value system based on fairness and equality.
The sustainability of our business depends on our
commitment to value, retain and develop existing
employees. We employ the most capable and
enthusiastic people and seek to enable them to achieve
their potential. Our aim is to create a safe and productive
working environment, where everyone is working
together and where people enjoy coming to work.
Kevin Howarth, ESPCO and Jim
Jardine, Training Specialist,
Organisational Support,
conducting reach truck training
Kimberley Williams,
Apprentice, Engineering
Services
Our Progress
There have been many challenges for the Company and our employees during
2005. The most significant of these has been the change of working patterns for
all our employees. This has included a move from a five-panel shift system to a
four-panel shift system to be effective April 2006. An Implementation Team has
been working through the consultation and implementation issues for these
improved working arrangements. It is the willingness to embrace these and
other changes that will assist AAM to achieve a more competitive market
position and sustain the business in the future.
Employee Satisfaction Survey
A confidential survey is conducted every 18 months to gauge employee opinion
and feedback. This survey was conducted in November 2005 and the results,
due to be released in early 2006, will be used to improve the way we work.
Employee Assistance Programme
2005 saw the introduction of a confidential Employee Assistance programme.
This programme enables employees to seek information and assistance on
lifestyle, health or financial issues and is provided free of charge by the
company to all employees and families.
14

Owain Arwel Jones, Barry Lee Evans and Dion
Owen collecting individual achievements at the
EEF Apprentice of the Year (from left to right)
15
Apprenticeship Programme
AAM has recruited and trained apprentices since its inception in 1970. In 1999
AAM entered into an agreement with Môn Training Apprentice Scheme which is
sponsored by Anglesey County Council, and since this time it has been our
preferred apprentice training provider.
We believe that recruiting and training the apprentices adds value to our
business. Succession planning has ensured that on completion of their
apprenticeships to-date there have been vacancies available to replace retiring
employees.
Apprenticeship frameworks available at AAM:
• Electrical
• Instruments/Electronics
• Mechanical Fitting
• Machining
• Mobile Equipment Mechanics
• Welding and Fabrication
As in previous years, in 2005 three of our current apprentices were successful
in the Engineering Employers’ Federation Apprentice of the Year competition.
They were invited to a presentation evening held in Cardiff in December 2005.
APPRENTICESHIP FACTS
• 50 percent of our 130 Craft employees…
• 25 percent of our Middle Management Team…
• 25 percent of our Senior Management Team…
…are our ex-apprentices!
AAM Training Activity Highlights - 2005
Employment Law Training
Training
AAM is committed to training and developing all employees to meet their full
potential and the needs of the business.
Many of the skills acquired are necessary to the business but may also be
considered as “skills for life”. One such example is the “Driver Risk
Awareness programme” launched in 2005 with over 80 employees being
trained to date.
In 2005 a series of workshops were delivered to employees examining the circumstances
surrounding the most common types of road incidents. Participants learnt
improved driving skills to reduce their likelihood of being involved in an incident.
The training included a practical driving test designed to improve 'hands-on' driving
skills including hazard awareness and management of the driving environment. The
training was well received.
SAFETY SKILLS MOBILE
BUSINESS SKILLS TECHNICAL SKILLS
• Formal Risk Assessments/SAFER
• Risk Assessment/Loss Reporting
EQUIPMENT
SKILLS
• Introductory Certificate in Team Leading (ILM)
• Six Sigma - Green and Black Belt
• AK Strapping Machine
• Abrasive Wheels
• Safety Management Audit Training (SMAT) • Fork Lift Truck • Introduction to practical buying (CIPS)
• EN ISO 15614 and
• Resuscitation/Defibrillator Oxygen,
• Overhead Crane • Best Current Practice Development and Management (BCP) BSEN 287
Entonox and Mars
• Driver Risk • Change Management
• 16th Edition Wiring
• Cardio Pulmonary Resuscitation (CPR) Awareness •Information Systems
Regulations
• STOP for Supervision
• Scissor Lift • Internal QMS (Quality Management Service) Auditor • Modicom ProworX32
• Permit to Work, Isolation and Lock Off
•Work Performance Review
• Autocad 2004/05
• National Examination Board in
• Sustainable and Profitable Process
• Access Scaffold Towers -
Occupational Safety & Health/General
• Manufacturing Excellence
Inspection and erection
Certificate and Diploma (NEBOSH)
• Employment Law and Absence Control
• Microsoft Office Suite - Excel, Word, Outlook, Word
• Inverter Training

07
ENERGY AND THE ENVIRONMENT
Making the most of our resources
OUR PRIORITIES
• Identify environmental aspects associated with all our activities,
products and services.
• Reduce the use of energy (power and gas) in the smelting process.
• Develop improved efficiencies in motors, lights and equipment.
• Develop a recycling campaign to minimise waste.
• Reduce emissions by improved operating practice.
• Maintain certification to ISO 14001 and enhance our environmental
management system.
• Ensure compliance with all Rio Tinto Environmental Standards.
• Reduce total fluoride emissions from 1.3kg F/tonne Al to
< 1.0 kg F/tonne Al produced.
• Reduce greenhouse gas emissions.
• Reduce hazardous waste to landfill.
• Determine quantities of PAH (poly aromatic hydrocarbons), fluorides,
particulates and sulphur dioxide on the ambient air.
In line with the AAM policy,
“The Way We Work”, we
strive for continual improvement in our practices and
performance, with the key driver for environmental
management being our aspirational goal of zero harm
to the environment.
16

17
07
ENERGY AND THE ENVIRONMENT
Environmental standards are in place to provide direction. These standards
form the basis of AAM's environmental management system.
Protecting the environment for future generations lies at the heart of AAM's
sustainable development activities. Our industry is raw material intensive
including energy in particular. Our activities also produce greenhouse gas and
fluoride emissions and waste by-products.
At AAM, we believe our ongoing sustainability depends on our record of
responsible management of resources and the environment. Our stakeholders
expect AAM to take responsibility for environmental management.
AAM continues to host local councillors on an annual basis for its Council
Liaison Committee when the smelter reviews environmental performance and
outlines future plans. The Environment Agency and Department of Public
Protection also participate in order to consolidate the value of these
discussions.
AAM also employs the services of a veterinary surgeon to carry out bone
biopsies at various farm locations on behalf of the local farming community.
Environmental aspects associated with AAM activities have been identified and
scored to determine significance. Those determined to have significant impacts
based upon the scoring criteria were defined as significant environmental
aspects. Targets and objectives were developed to reduce their negative environmental
impacts. Table 1 contains some of the environmental aspects that the
process determined to be significant or even potentially significant.
TABLE 1 - SIGNIFICANT ENVIRONMENTAL ASPECTS
Electrical Energy Use
Hazardous Wastes
Releases to Air
Discharge to Water
Mineral Wastes
Greenhouse Gases
Hazardous Materials Use
Noise
Air Quality
IMPROVEMENT INDICATOR
AAM achieved certification to ISO 14001 in 2001. The British
Standards Institution (BSI) is an independent auditor which audited
AAM's progress in October 2005 and found that the operation has
progressed sufficiently to be recommended for certification to the
new ISO 14001 standard requirements.
Total Fluoride Emissions and Metal Tonnage Produced 1971 - Present
3000
2500
2000
1500
1000
500
0
Kg Fluoride/Day tonnage metal per annum
1971- 1975- 1979- 1983- 1987- 1991- 2001 2002 2003 2004 2005
1974 1978 1982 1986 1990 1994
High concentrations of fluoride can negatively impact on local vegetation and
AAM continues to look for ways to minimise emissions of fluoride from the site.
The Environment Agency licence limit of 1.3kg/t Al was met during 2005 with
an average result of 1.1kg/t Al, slightly above the internal target of 1.0kg/t Al.
The long term plan is to reduce this further to 0.9kg/t Al by 2007 through
projects such as the introduction of new cell hoods and continued maintenance
of the gas treatment equipment.
IMPROVEMENT INDICATOR
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
We have installed “real time” analysers in the reduction and carbon
areas that use laser technology, enabling us to monitor fluoride
trends and alter work practices on an ongoing basis.
Oystercatcher
chick
New trees being
planted in
the Penrhos
Coastal Park

Emma Harrison,
Environmentalist,
Organisational
Support and
Stephen Roberts,
Environmentalist,
Organisational
Support
Waste Reduction
AAM produces a combination of non-hazardous and hazardous wastes from the
various process areas. Much of the waste produced is recycled, reused or sold
with a view to minimising waste to landfill.
In one of the best examples of sustainable development, AAM is leading the way
in finding an alternative use for one of the primary aluminium's largest byproducts.
AAM transported 50 tonnes of Spent Pot Liner (SPL) to the Jesse
Brough Metals Group in 2005 as part of a sustainability trial for the cement
industry. SPL contains silica, alumina and fluoride components, which are
useful to the process of cement manufacture. The trial was a total success and
attracted the support of the UK Environment Agency.
IMPROVEMENT INDICATOR
In a win-win situation AAM will aim to reduce 80 percent of
SPL through recycling in 2007 and reduce the burden on UK
hazardous landfill.
One initiative proposed by the AAM environment team has improved the
management of waste disposal at the site. Paper, scrap wood and scrap steel is
now recovered for recycling and no longer sent to landfill.
At AAM we recycled
approximately 4,675 tonnes
of material in 2005.
Recycling this material has
saved AAM approximately
£36,000 in landfill tax alone.
Pictured are Owain Hughes, Claudia
Owen, Katrina Daniel and Lucy Holland
from Cemaes Primary School
presenting a squirrel nest-box to one of
the Anglesey Aluminium Environmental
Team, Stephen Roberts
Dealing with environmental incidents
At AAM an environmental license non-compliance is also a Rio Tinto Category
Two environmental incident. During 2005 AAM recorded eight non-compliances.
These incidents arose when hydrogen fluoride emissions from the Pot Rooms
and Carbon Bake exceeded our limits for a short duration. Although these
incidents had little or no impact on the environment, reports were issued to the
UK Environment Agency along with plans for corrective actions.
IMPROVEMENT INDICATOR
At the end of 2005 there were no outstanding non-compliance issues.
Achievements in Biodiversity
Owain Hughes, Claudia Owen, Katrina Daniel and Lucy Holland from Cemaes
Primary School presented a squirrel nest-box to one of the Anglesey
Aluminium’s Environmental Team members - Steve Roberts. The school's
Project on the Anglesey Red Squirrels recently won a national competition.
As part of its tree planting and biodiversity programme, AAM is planning to
introduce a small population of Red Squirrels into the wooded areas close to the
plant site.
PAPER - 8.6 TONNES
The paper is collected for recycling by Antur Waunfawr. Antur Waunfawr offers
training and employment opportunities to people with learning difficulties.
WOOD - 165 TONNES
The wood is collected and chipped. This chipped wood is then made into chipboard.
SCRAP STEEL - 1,502 TONNES
Scrap steel is collected then sorted and then reprocessed into useable steel.
REFRACTORY MATERIAL - 3,000 TONNES
Good refractory material is crushed up and used in making refractory material and
other material is used for hardcore.
18

3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
19
08
ENERGY
Energy efficiency at AAM
The profile of energy efficiency has significantly increased over the last few
years, not only as a result of regulation and climate change but because it
makes good business sense for an energy intensive business such as AAM.
With the increased worldwide drive to reduce greenhouse gases, particularly CO2,
there has been a strong emphasis by industry to manage carbon emissions.
Milestone year for CCLA and we failed to
meet our agreed target of 2.41 and were
forced to purchase carbon credits
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD Target
3.28 3.17 2.81 2.60 2.50 2.49 2.55 2.55 2.39 2.34 2.30 2.30 2.36
Total Ceq/tonne Al
Milestone year for CCLA
and bettered target of 2.41
Total Greenhouse Gas Emissions 1995 to Present
Metal Products celebrating
the production of the four
millionth tonne of metal at
AAM since 1971
Since 1990, AAM has reduced its total greenhouse gas emissions by 52
percent, against a UK Kyoto target of 12.5 percent, while increasing hot metal
production by 20 percent during the same period.
Climate Change
2006 will be a 'milestone' year under our existing Climate Change Levy
Agreement with the UK Government. AAM is on target to meet our requirements.
New targets have been agreed with the UK Government for the period
2006-2010 to reflect the change in product output.
Milestone year for
CCLA and bettered
target of 2.41
CCLA = Climate Change
Levy Agreement
Ceq = Carbon Equivalent
GG = Greenhouse Gas
GG Emissions
A number of energy efficiency projects are underway and
include: voltage saving projects in our Reduction area;
initiatives to save on gas usage in the Carbon Bake and
Metal Products areas; saving of energy on the
use of plant lighting and the introduction of
energy efficient motors.
John Batson, Derek Roberts,
Gareth Parry and Peter
Hodgson, Operators from the
Green Carbon Team

09
PERFORMANCE SUMMARY
John Jeffrey, Instruments
Craftsman, Engineering Services
PROGRESS AGAINST
PLANS FOR 2005
PEOPLE
Health and Safety
• A 25 per cent reduction in Lost Time Injuries
from 2004 and 50 per cent reduction on 2003.
People Commitment
• Continue Team Leader training and
development and commence Superintendent
training.
Communities
• Complete the land sale transaction.
PLANET
Environment
• Work with Environment Agency to ensure
agreed revised emission levels are achieved.
• Work with Department of Environment, Food
and Rural Affairs to ensure changing
regulatory requirements are workable and
able to be implemented.
Climate Change
• Continue to reduce site fluoride emissions,
meeting and improving upon regulatory limits
• Continue to reduce Carbon Emissions,
meeting and improving upon regulatory limits.
PROSPERITY
Operational Excellence
• Continue improvement through integration
into a single Business System supported by
management led focus teams.
• Continue with Stage 2 of the project
progressing consenting and partnership
development.
• Further enhance AAM's ability to produce
value added product with target of 81 per cent.
In the 2004 Social and Environment Report, AAM
identified a number of objectives to be achieved
for the 2005 year. This table outlines our
performance against these objectives.
• Target not met (No improvement on 2004
performance).
• Target met/ongoing.
• Target met.
• Target met.
• Ongoing.
• Target met.
• Target met.
• Target met.
STATUS PLANS FOR 2006
• Target not met (UK energy prices resulted in
expenditure & development slowdown).
• Ongoing - casting pit modified, however
reduced Value Added product demand to 74
per cent.
• A 30 per cent reduction in Lost Time Injuries
from 2005.
• Introduce behavioural safety into the AAM
safety approach.
• Implement four panel 12 hours shift pattern
for work/family balance.
• Develop red squirrel and coastal park
programmes for the community.
• Recycle > 80 per cent of spent cell lining
material (usually land filled).
• Meeting and maintaining our Climate
Change Levy agreement with Department of
Environment, Food and Rural Affairs.
• Maintain fluoride emissions below
1.0kg F/t Al.
• Maintaining emissions below 0.6kg F/t Al.
• Implement centralised breakdown
maintenance and restructure maintenance
teams to improve asset utilisation.
• Introduce Lean techniques into the
operational departments to improve process
outputs.
• Role out 5S programme across the site.
20

21
10
EXTERNAL VERIFICATION,
CONTACTS AND FEEDBACK
Need more information?… www.angleseyaluminium.co.uk
AAM is keenly committed to the community of North Wales and recognises
that relationships with our stakeholders are a vital component of our long
term success.
The company takes its responsibility for Sustainable Development seriously and
your expectations of AAM are important to us.
A draft of this report was sent to a number of people external to AAM for review
including the Environment Agency Wales and a local High School. These people
were selected on the basis of their knowledge of the smelter. The feedback
provided was invaluable in finalising this 2005 report.
This report is sent to stakeholders including AAM employees, the Health and
Safety Executive, the Farmers Liaison Committee, the Isle of Anglesey County
Council and local schools. All these groups have an interest in our activities
and can provide valuable information to enable the company to better
understand community concerns.
We welcome your feedback on our performance and the contents of this report.
If there are topics that you would like to see included in future editions please
send your comments to:
Colin Webb
Organisation Support Manager
Anglesey Aluminium Metals Limited
Penrhos Works
Holyhead
Anglesey LL65 2UJ
Email: Colin.Webb@anglesey.riotinto.com
Other contacts are:
David Bloor, Managing Director
John Mervyn Jones, Senior Environmentalist
Tel: 01407 725000, Fax: 01407 725001
The Carbon Team celebrate 1,000
days without a Lost Time Injury