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Sustainable Development at Comalco New Zealand: A Commitment to the Future

Explore how Comalco New Zealand’s aluminum smelter contributes to sustainable development, meeting present needs without compromising future generations. This encompasses economic diversification, education, public health, and environmental protection. Learn how sustainability impacts business behavior, employee choices, community trust, product sales, and investment opportunities. Discover the journey toward sustainable value, with a focus on health, safety, environmental practices, and community relationships. Dive into the efforts to enhance safety performance, reduce injuries, address health issues, and manage environmental impacts.

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Sustainable Development at Comalco New Zealand: A Commitment to the Future

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  1. Sustainable Development in ComalcoNew Zealand Aluminium Smelter’s Contribution to Sustainable DevelopmentDavid BloorManager-Health, Safety, Environment & Community Relations

  2. What is Sustainable Development? • A standard definition • “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Bruntland • A mining & metals definition • “ensuring that our businesses create a valuable legacy rather than leave a costly liability behind” • building capacity for diversified economic activity • education and skills development • better public health • environmental protection • What does it mean to us ?

  3. What does it mean to us? What if people don’t believe our business behaviour is consistent with that? • Will they want to work for us? • Will they want us as their neighbours? • Will they want to buy our products? • Will they want to invest in our business? • Will they trust us to care for their environment and resources? • Will they elect people that will support us? What are the implications of being unsustainable for our business?

  4. Rio Tinto Policy: “Rio Tinto businesses, projects, operations and products should contribute constructively to the global transition to sustainable development” Comalco Core Purpose: “To create the most sustainable value from our resources and relationships” The Response

  5. The Journey Health & Safety The world’s preferred aluminium business from mine to market Environment & Communities Strategic Map People Commitment Market Position ‘To create the most sustainable value from our resources and relationships Operational Excellence Financial Strength Business Results Purpose Vision

  6. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Safety • Reducing LTIFR from 9.25 in 1997 to 0.86 in 2003 for Comalco managed sites (The Goal is ZERO) • NZAS 2003 Performance – 0.43 • Achieving at least a NOSA *** rating across all sites • NZAS 2003 performance ***** rating • Best 5 star smelter in Australasia and S.E. Asia • Implementing and complying with RioTinto Safety Standards • Winner of Rio Tinto CEO’s annual safety award

  7. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Safety Plant Safety Performance First Aid Cases Recordable Injuries (LTI + MTC) LTIs 200 185 180 160 140 120 Number of Injuries 100 80 61 54 60 52 48 45 40 28 18 15 20 12 11 6 5 5 4 4 3 3 1 0 1997 1998 1999 2000 2001 2002 2003 2004 Year

  8. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Safety

  9. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Safety

  10. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Safety

  11. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Health • Continuing to reduce the number of respiratory illness cases • Developing and implementing Health Standards • Applying more effective pre-employment screening • Focusing on workplace hygiene • Developing a programme to deliver 5-year occupational health targets for Rio Tinto

  12. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean - Environment • Environmental Management Systems (ISO14001) • Identifying priority areas for re-using, reducing or recycling the resources we use and the wastes we generate • Developing viable solutions to problematic waste streams • Imaginative solutions for using resources more effectively • Anticipating changing expectations • Moving “beyond compliance” to eliminate incidents • Understanding the life cycle inventory of our operations

  13. What does it mean - Environment kg 300 1997 : 85 kg per car2002 : 117 kg per car 250 200 150 100 50 0 1990 1995 2000 2005 2010 2015 Each 100 kg of automotive aluminium replacing other heavier materials saves about 2 tonnes of CO² over the car’s life time from enhanced fuel efficiency

  14. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Greenhouse • Understanding the GHG debate – positive participation • Reducing on-site GHG emissions per tonne of Al by ~50% since 1990 • Investing in R&D to reduce the GHG intensity of our processes • Working with industry groups and governments in policy formulation • Promoting recycling and the life cycle benefits of Aluminium usage

  15. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Greenhouse A high aluminium end-of-life products recycling in the main applications: 95 % in automotive 92 to 98 % in building For aluminium cans 40% in 1997 and 46% in 2002 Market share of aluminium cans 45% in 1997 and 50% in 2002 Aluminium the recyclable material

  16. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Greenhouse NZAS Site CO - e / tonne Al 2 2.50 1990 - 264, 083 tonnes 2003 - 333, 653 tonnes 2.25 2.00 1.75 tonnes CO2 - e / tonne Al 1.50 1990 1.25 2003 1.00 0.75 0.50 0.25 0.00 Fuel Process C PFC's 1990 – 4.48 t CO2 e / t Al 2003 – 2.09 t CO2 e / t Al

  17. Health & Safety Environment & Communities People Commitment Market Position How significant is this ? Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Greenhouse DC KW Hr / Kg Al

  18. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Greenhouse Enough electricity to power the whole of Bluff – a township of 2,200 people

  19. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Communities • Understanding what is important to the needs of our communities where we operate and following up with action • Building capacity • Communicating about our activities and listening to feedback

  20. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean -Communities • Positive participation in the kakapo recovery programme. • Resolving long-standing community issues • Regional Needs Analysis survey • Public tours – open doors • Building a national profile • New Zealand Business Excellence Award

  21. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean –Our People • Surveys to determine what is important to our employees and following up with action • Employment and training • Equal opportunities • Role-based training

  22. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean –Our People • Employer of choice • Culture of trust, understanding, contribution where our people work to the maximum of their potential and ability • “The Way We Work” • NZAS average age of our people is now ~ 45 years with more than 15 years of service.

  23. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean –Markets • Working with our customers and suppliers to enhance SD (our performance and theirs: e.g. safety, environment, assurance)

  24. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean –Markets • NZAS produces the highest quality, highest purity aluminium from any of the 200 smelters across the world • 90% of product is value added • Shipping to markets across the world

  25. Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ What does it mean –Bottom Line • Delivering positive value to shareholders • Delivering positive value to New Zealand • Electricity sales • Wages • Taxes • Goods and services • Delivering value via business improvement • Six Sigma • One Comalco • Competing in a global commodity market

  26. Working for a sustainable future • NZAS is a true world-class aluminium smelter competing in a tough global market. • NZAS creates wealth for all stakeholders • NZAS is recognised for • World class safety performance • Environmental excellence • Supplier of choice : purest aluminium anywhere in the world • Value adding use of New Zealand’s sustainable energy resources • Excellence in business performance • Sustained improvements across our business • An example for others to follow

  27. Working for a sustainable future • As we say…….. New Zealand Aluminium Smelters………. Creating value for New Zealand

  28. Sustainable Development in ComalcoNew Zealand Aluminium Smelter’s Contribution to Sustainable DevelopmentDavid BloorManager-Health, Safety, Environment & Community Relations

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