energy

The graph below indicates Xstrata's energy use over the past three years. Energy use decreased slightly in 2004, despite increased production.

Of the energy consumed, 67% is supplied by electricity networks, as illustrated below. In Argentina and Spain, the power generation mix includes hydro-electricity.

Waste

Xstrata's standards require all operations, contractors and suppliers to eliminate, reduce, reuse, recycle, treat or properly dispose of wastes. The majority of Xstrata operations have waste management plans in place, all operations will complete their plans in 2005.

In 2004, Xstrata Alloys mines implemented total waste management systems, including the establishment of dedicated salvage yards where all waste is separated, recycled, refurbished or appropriately disposed.

All Xstrata Coal sites use external waste management contractors. In 2004, Xstrata Coal focused on waste minimisation reducing waste to landfill and increasing recycling legislative compliance and employee awareness programmes. Xstrata Copper and Xstrata Zinc operations use the services of authorised companies to manage their domestic and hazardous waste.

General waste

Xstrata's operations disposed of 12,000 tonnes of general waste to landfill in 2004 while 134,000 tonnes of non-hazardous waste was sent for recycling. The majority of this material was from the decommissioning of the Vantech vanadium plant.

Scrap steel recovered at Vantech and Rhovan chrome smelters in South Africa is being recovered for reuse, and Rhovan's damaged wooden pallets are being repaired by a local entrepreneur on site and reused in product dispatch.

To encourage recycling on site, United Colliery in New South Wales donated the proceeds from its scrap metal recycling to the mine's social club.

Minera Alumbrera has continued to focus on providing used wood, metal and rubber to be collected by local communities. During 2004, 556 tonnes were collected. McArthur River zinc-lead mine recycles scrap metal, batteries, aluminium cans, waste automotive oil, kitchen oil, printer cartridges and oil drums.

Energy use graph Energy use by commodity business Energy source

Energy use increased in 2003 following the acquisition of MIM Holdings Limited, a mining and metals group that doubled the Group's size.

Hazardous waste

Xstrata's operations generated 893,000 tonnes of hazardous waste during 2004, 75% of which was disposed to landfill on site and 25% disposed off site. During 2004, 58,000 kilolitres of waste oil were used in blasting or sent off site for recycling.

During the reporting period, 80 million tonnes of waste from operations were generated as tailings, coarse reject and slag. This waste is recycled where possible - four million tonnes were recycled in 2004.

Hazardous waste initiatives in 2004 included:

  • approval for the construction of facilities at the Mount Isa copper operations to enable the recycling of flue dusts from the copper smelter, which eliminates the need to store and dispose of the dusts;
  • increased slag sales at the Lydenburg chrome smelter from around 2,000 tonnes a month to about 8,000 tonnes per month;
  • recycling of bag plant dust and cyclone fines through the block plants at Rustenburg chrome smelter;
  • the sale of Rolleston coal mine's overburden (120,000 cubic metres in 2004) for use in the construction of the Bauhinia regional rail line, which will link the new mine to the port;
  • ongoing production of briquettes using waste coal fines at Baal Bone;
  • the sale of Chartech's waste materials, fines and tar; and
  • reusing 2.5 million litres of waste oil in blasting at Alumbrera and as a fuel to power local industries, such as a confectionery factory, brick production and capsicum drying.

In 2005, Alumbrera plans to install diesel extenders on all mine haul trucks, which will reduce the amount of waste oil generated. The Townsville copper refinery will engage a waste management contractor to help improve the site's recycling and training and awareness programmes.