environmental management systems

Eva Simak, Project Metallurgist at Xstrata's Mount Isa copper smelter

All Xstrata's operations continue to develop and implement environmental management systems (EMSs) which are consistent with ISO 14001. In line with the requirements of this international standard, our operations have developed environmental procedures, standards and strategies to achieve their environmental objectives and targets, and each site maintains 'aspects and impacts' registers which identify key environmental risks. While every operation must implement systems that are consistent with the requirements of ISO 14001, the decision whether to obtain external certification is left to the discretion of the operation's General Manager, based on commercial imperatives. At the end of 2004, nine sites (around 15% of Group operations) had obtained ISO 14001 certification.

The requirements specified in Xstrata's HSEC Policy, HSEC Standards and Assurance Programme are being integrated into our sites' environmental management systems, incorporated into training materials and publicised on Commodity Business intranet sites across the Group.

During 2004, a number of improvements were made to EMSs across the Group. Xstrata's chrome smelters at Wonderkop and Boshoek and the vanadium Rhovan operation in South Africa have already been certified to ISO 14001. In 2004, these smelters incorporated their EMSs into fully integrated management systems that also address occupational health, safety and quality management. To make HSEC information more widely available within the Group, Xstrata Alloys loaded this information onto an intranet.

All Xstrata Coal operations have begun incorporating environmental, community and health and safety systems into integrated HSEC management systems, resulting in a simpler system and a more consistent approach across these disciplines.

A number of Xstrata Copper sites intend to obtain ISO 14001 certification. The Ernest Henry mine in Queensland is targeting certification in 2005 and, in preparation for this, an external gap analysis was conducted against ISO 14001 standards at the end of 2004. The Alumbrera mine in Argentina, the Mount Isa copper operations and the Townsville copper refinery in Australia are aiming to gain certification in 2006.

McArthur River zinc-lead mine in the Northern Territory completed an ISO 14001 gap analysis of its EMS with a view to achieving ISO 14001 certification by 2007. Northfleet lead refinery, which is already certified to ISO 14001, completed the transition to a fully computerised HSEC incident management system in 2004 with the installation of a new incident reporting system.

Environmental risk

Risk is an intrinsic aspect of business and Xstrata has developed a robust and comprehensive programme to identify, understand and manage risk across its operations, including specific assessments of environmental risks. The majority of sites review their aspect registers annually, while others review them every two years or when there is a material change to a process or procedure.

One of the most significant environmental risks associated with our operations is the storage of minerals processing waste. We manage more than 60 surface tailings facilities, slimes dams and mineral waste ponds. The walls of these structures range in height from five metres to 102 metres and cover a combined area of more than 3,800 hectares.

Xstrata Coal's mines in South Africa and New South Wales, Xstrata Alloys' mines, Alumbrera copper mine and McArthur River zinc-lead mine have completed risk assessments on their water storage facilities as part of the mandatory risk assessment process for mine residue deposits, and these assessments form the basis for each mine's code of practice.

Performance assessment

Xstrata uses a range of internal and external audits to assess environmental performance across its operations on an annual basis, including an internal review of environmental management systems and third-party audits of ISO 14001 systems. In addition, under the Xstrata HSEC Assurance Programme, all Xstrata sites will be independently audited every two years. This audit examines whether an operation has the necessary systems and performance to ensure compliance with relevant regulatory requirements and conformance with Xstrata HSEC Policy and Standards.

Training and awareness

We conduct a range of environmental training programmes across our operations to ensure that best practice environmental performance is fully understood and embedded into our employees' and contractors' day-to-day work practices. An environment component is included in inductions for new employees and contractors at all our operations and in our management training programmes. We also provide on-the-job training in environmental procedures where appropriate and many operations have introduced environmental awareness programmes.

At Xstrata Coal's South African operations, training courses were held on ISO 14001, geographical information systems and groundwater modelling. In Australia, awareness training was conducted for all operations. In addition to standard awareness programmes, the Alumbrera copper operation conducted an environmental strategic overview course for superintendents, supervisors and staff which detailed environmental issues, current management strategies, and research programmes.

Reporting

Environmental incidents and their remedial actions are reported to the Group Executive on a monthly basis. All significant environmental incidents (Xstrata Categories 3 to 5) are reviewed by the Board every quarter.

All our Australian operations are required to report annually to the National Pollutant Inventory with the exception of Xstrata Technology and the Hydrometallurgical Laboratory. The Northfleet lead refinery (UK), Spanish zinc operations and Nordenham zinc smelter (Germany) report to similar government schemes. Every two years, Northfleet is required to report on its progress in meeting its Climate Change Levy targets under UK legislation. In Argentina, Alumbrera provides environment impact report updates to the Tucum…n and Catamarca provincial governments every two years. In South Africa, our operations submit annual performance assessments on the approved environmental management programme reports (EMPR) on performance to the Department of Minerals and Energy.