Our performance

The baseline audit completed in 2005 highlighted good practices across the Group and a number of areas for improvement. Each site is provided with a detailed HSEC improvement plan and references the good practices report and our benchmark sites.

Environmental fines and penalties

No environmental fines or penalties were issued to any of Xstrata's operations in 2005 compared to one fine of AUD1,500 incurred in 2004 for the non-capture of a blast at an Australian coal operation.

Environmental incidents

The total number of environmental incidents reduced from 825 incidents in 2004 to 619 incidents in 2005. The number of Category 3 (significant) environmental incidents reduced by 43%, from 35 incidents in 2004 to 20 in 2005. No Category 4 (serious) or Category 5 (disastrous) environmental incidents were recorded across the Group, in line with the previous three years' performance.

The continued strong reporting of Category 1 (negligible) and Category 2 (minor) environmental incidents since 2003 gives us confidence in the level of environmental reporting across the Group and demonstrates the effectiveness of our environmental inductions for new employees and contractors and ongoing environmental awareness campaigns.

Tropical storm events during the wet season in north Queensland caused 12 of the 20 Category 3 (significant) environmental incidents in 2005, comprising six storm water discharges, five containment pond overflows and one sewage overflow at our Mount Isa Mines complex of copper, lead and zinc operations. Programmes to improve the management of these storm events are continuing.