Key challenges
Planning for closure
Project Lion is training local community members and employees from the closed Vantech operation
Xstrata aims to build economic and social capacity and infrastructure in the communities near to our operations to encourage self-sufficiency and prevent reliance on our businesses and contribute to sustainable development. All our operations maintain or are developing detailed closure plans which address the social, environmental and economic impacts of closure. These plans are prepared in line with Xstrata's HSEC Standards, community expectations and regulatory requirements. The following examples from the Vantech vanadium operation and Ernest Henry copper mine illustrate how we tackle social impacts of closure at various stages of the closure life cycle.
Planning for the staged closure of the Vantech vanadium operation and associated Kennedy Vales Mine in Mpumalanga Province, South Africa, began in 2003. Employees were informed about the closure by the General Works Manager in 2003 and a consultation programme was undertaken through the respective trade unions. A commitment was made to employ former Vantech employees during the construction of Project Lion and these people will also be considered for permanent positions during the operational phase of Lion. Community consultation for the Vantech closure was conducted through the Project Lion EIA interested and affected parties' process to limit consultation 'overload' on local communities. In addition to social surveys, formal consultation forums were established to enable community members to discuss their concerns with Xstrata representatives. The main issues raised were around employment and environmental impacts and our actions to address these concerns are outlined on pages 96-97 of this chapter and in the environment chapter. Throughout its operational life, Vantech's main community development projects have focused on infrastructure and education. Commitments for closure were outlined in Vantech's Environmental Programme Management Report (EMPR) which was approved in 2003 and a comprehensive independent closure planning audit was conducted in April 2005 to assess the site's progress. A final closure plan was prepared in accordance with community expectations, regulatory requirements, the audit findings and the ANZMEC and Minerals Council of Australia's (Strategic Framework for Mine Closure), considered to be a best practice guideline for closure activities. The plan was submitted to the Department of Mines and Energy in January 2006 and rehabilitation is ongoing at the site.
In 2003, its final full year of operation, the Vantech operation produced 10.2 million pounds of vanadium pentoxide, around a third of Xstrata's total vanadium pentoxide production that year. The operation was put into care and maintenance in early 2004, following the depletion of the Kennedy Vale ore deposit in December 2003. The decision to close Vantech followed a thorough assessment of the operation's future prospects and of the financial viability of opening a new mining area at the site.
In north Queensland, Ernest Henry Mine is working with the Cloncurry Tourism Advisory Committee and Cloncurry Council to develop a sustainable tourism industry to help offset the economic impact of eventual mine closure. Encouraged by a 4.5% increase in outback tourism last year, the mine commissioned a tourism proposal which has been embraced by the North Queensland Area Consultative Committee. Ernest Henry also conducts mine tours, donating the fees charged to the local Historical Society. The mine employs around 400 people with annual production of around 110,000 tonnes of copper concentrate and 100,000 ounces of gold in concentrate.