Waste

Mining and metallurgical operations produce considerable amounts of hazardous and non-hazardous wastes which, unless properly disposed of, can be a threat to the environment. The costs of disposal can be high, so there is also a financial incentive to minimise the amount of waste we generate.

Xstrata is committed to reducing the quantity and toxicity of the waste we produce, and to managing waste safely and effectively. Tailings dams represent a particular risk and we carry out comprehensive risk assessments and regular monitoring of all the tailings dams at managed operations. Our hazard management planning involves regular audits by independent experts who assess the degree of risk posed by sites' tailings dams according to factors such as the size of the dam and whether the area is prone to seismic events.

We are progressively reducing the quantity of waste we send to landfill by recycling as much as possible. We operate our own recycling business in North America which recycles metal-bearing materials sourced globally. All our operations have a waste management plan to reduce, reuse, recycle or responsibly dispose of the waste they generate. This minimises the amount of waste sent to landfill, cuts costs, and maximises opportunities to generate additional revenue - for example, from recycled precious metals. Waste management plans are tailored according to sites' specific needs, which vary according to the activities taking place. Coal mines, metallurgical mines and smelters produce distinct wastes that must be dealt with in specific ways.

We have made progress towards our goal for all managed operations to develop waste to landfill reduction targets, however, targets are still being implemented at Xstrata Copper's Ernest Henry Mine and Townsville operations, and at Xstrata Nickel sites.

The wastes we produce include:

• Tailings and slag from processing ore and concentrates, as well as coal mine tailings (known as fines) suspended in water;
• Rock from the removal of strata to expose ores or coal; and
• Hazardous wastes such as jarosite (a high iron content waste from zinc production), hydrocarbons and heavy metal contaminated sludge.

The vast majority of the waste we produce is non-hazardous waste rock and overburden. In 2009, we produced nearly 1.2 billion tonnes of waste, of which 86 million tonnes was hazardous. We recycled 11 million tonnes of waste.