Biodiversity conservation

The sacred Bottle Tree at Rolleston coal mine was relocated within the mining lease

Biodiversity is the variety of all life forms. Loss of biodiversity due to competing land use is a significant risk for native ecosystems around the world. To obtain and retain a licence to operate, mining and metal production companies must exceed community and legislative expectations for environmental stewardship. We seek to play an active role in conserving biodiversity and in minimising the impact of our operations on native ecosystems. Xstrata's HSEC Management Standard: Biodiversity and Land Management requires that biodiversity conservation is integrated into environmental impact assessments and management plans at each stage of the life cycle of our operations and that biodiversity-rich areas are systematically identified and biodiversity conservation plans implemented. Biodiversity issues are considered during the appraisal of new projects or potential acquisitions, including biodiversity-rich habitats and sensitive areas. We have committed not to explore or mine in World Heritage properties, which are sites identified by the UNESCO World Heritage Committee.

In 2005 Xstrata assessed each operation to identify sites located in or adjacent to biodiversity-rich habitats and sensitive areas (see below). No Xstrata operations are located in biodiversity-rich habitats, and one site (Rolleston coal mine, Queensland) owns a lease of 340 hectares adjacent to a Category II protected area (Albinia National Park). In total, 11 sites are in or adjacent to sensitive areas and are required to have active biodiversity conservation plans. All Xstrata sites were independently audited against the Biodiversity and Land Management Standard in 2005.

In line with this Standard, biodiversity conservation plans are in place for all 11 sites in or adjacent to sensitive areas. Other operations are moving from predominantly a rehabilitation focus to biodiversity conservation.

We define biodiversity-rich habitats as:

• National protected areas as defined by IUCN, registered with the World Conservation Union, and managed in accordance with the IUCN protected areas management categories I-IV; and/or
• Globally identified sites of significant international or global value that are recognised by:
  • UNESCO World Heritage Convention;
  • Ramsar Convention on Wetlands of International Importance; and
  • UNESCO Man and Biosphere Reserves Programme.

We define sensitive areas as areas which, while not protected or recognised as biodiversity-rich habitats, include one or more of the following characteristics:

• High species diversity or high levels of endemism;
• Contains species included in the IUCN Red List Of Threatened Species (regionally extinct, critically endangered, endangered, vulnerable and near-threatened species); and
• Rare, vulnerable and threatened habitats or ecosystems (e.g. arid lands or wetlands).

Overall, Xstrata's audit score for this standard was slightly below the satisfactory range. Sites in or near to ecologically sensitive areas performed within or above the satisfactory level for this Standard. However the Group average reflects a number of sites in low biodiversity risk areas where a historic focus on land management is being upgraded to integrate biodiversity conservation fully into environmental management plans. All sites are targeting improvements and a minimum satisfactory level score in this Standard in 2006.

In March 2005, Xstrata Coal launched a specific Biodiversity Strategy for coal operations, to undertake progressive rehabilitation of land disturbed by mining, to provide sustainable lands post-mine closure and to facilitate biodiversity conservation. Mount Owen Mine in New South Wales was recognised for excellence in environmental management and won the 2005 Hunter-Central Rivers Coal Industry Environmental Award in November 2005 for its industry-leading Biodiversity Management Programme (see case study: Conserving biodiversity through a major mine expansion).

Xstrata Coal achieved the highest average score against the Biodiversity and Land Management Standard, reflecting its stewardship of the majority of the land in or adjacent to sensitive sites under Xstrata management.

Rolleston

Rolleston moved from project status to initial production in September 2005 and produced around one million tonnes in 2005. The mine will have full production capacity of 8 million tonnes per annum. Rolleston Coal's mining lease is adjacent to the Albinia National Park in Queensland which was recently declared for the conservation of endangered native bluegrass communities.

Xstrata has agreed with the Commonwealth and Queensland governments to offset disturbed bluegrass communities through establishing new native bluegrass pastures in rehabilitated mine spoil and to manage conservation areas of native bluegrass outside the mining footprint.

Mount Owen

See case study.

McArthur River Mine

Lesego Raberifi with wild olive saplings at Boshoek chrome smelter

Xstrata Zinc owns and operates McArthur River zinc-lead mine in the Northern Territory and in August 2005, announced the proposed conversion from an underground to an open cut operation to enable production to continue. Underground mining activities were significantly scaled down at the end of 2005 and are no longer economic. The development of open cut mining will require a 5.5 kilometre section of the seasonal McArthur River and around 2.5 kilometres of Barney and Surprise creeks within the mining lease to be rechannelled. A full Environmental Impact Statement (EIS) has been lodged with the Northern Territory Government and following public consultation, a supplementary EIS was lodged in December 2005 to address issues and concerns raised during the process. Both statements were prepared by Xstrata and URS Australia and were independently reviewed by Matrix+ Consulting Pty Ltd.

Through the EIS and supplementary EIS, some of the principal environmental commitments made by McArthur River Mine, are to:

• appoint a specialist biologist for the design and construction phases of the river diversion to ensure that fish habitats are protected;
• conduct aquatic fauna surveys before and after river diversion to identify species to be monitored to assess impacts on the riverine system;
• design the realigned river channel to avoid any physical or hydraulic obstruction to fish passage;
• provide a variety of substrates and micro habitats along the channel to minimise impacts on fish;
• continue to monitor ecosystems within and around the mining lease throughout the development and operation of the open cut;
• extend the existing marine environmental monitoring programme, which monitors impacts on water and sediment quality and includes studies on seagrass and marine biota. The existing programme works with Charles Darwin University and the amateur fisherman's society and this will be expanded to include participatory community monitoring;
• form a biodiversity and environmental management committee comprising local communities, government and other stakeholders; and
• establish a biodiversity offset area for the project, in consultation with the biodiversity and environmental management committee. Five potential sites have been identified:
• • the Abner Range
  • Glyde River Gorge
  • Upper McArthur River
  • Caranbirini Conservation Reserve, and
  • Port McArthur Tidal Wetlands.

In February 2006, the Environment Minister in the Northern Territory announced her decision not to recommend the approval of the project, due to environmental concerns. The Northern Territory Cabinet subsequently recommended further discussion take place between Xstrata and the Government and negotiations are ongoing.

Further information including factsheets and newsletters about MRM and the environment are available at www.mcarthurriver.com.au.

South African chrome operations

Kroondal chrome smelter is located adjacent to a wetlands area, although this is not a protected area or listed in the RAMSAR convention on wetlands of international importance. The Eastern mines, comprising Thorncliffe and Helena chrome operations and the Mototolo project (under construction) are near to a plant endemism centre. Red list species are protected by identifying and tagging trees before development occurs. Awareness is raised through induction, monthly red list species topics, the display of red list species posters and in weekly HSEC meetings. In 2005, the Eastern mines were able to limit encroachment into the Cicada Pycna Sylvia habitat. This cicada is rare but is not on the red list due to insufficient data. The cicadas congregate in small communities in open savannah areas and there is also a small localised population at the Mototolo project, a joint venture with Anglo Platinum to develop a platinum mine and concentrator. The EIA for the Mototolo project will include measures to further limit our impact on the cicada's habitat. Xstrata Alloys' eastern mines have introduced a Cicada Pycna Sylvia awareness campaign with posters, mapping the distribution area and ensuring that all construction work does not encroach on this area. A biodiversity management plan is in place for the Eastern mines and is being enhanced from 2006 with phase two scheduled for the following year.

Bluegrass at Rolleston open cut coal mine