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What is Sustainable Development?

Sustainable Development in Comalco New Zealand Aluminium Smelter’s Contribution to Sustainable Development David Bloor Manager-Health, Safety, Environment & Community Relations. What is Sustainable Development?. A standard definition

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What is Sustainable Development?

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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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