www.bhpbilliton.com

Transcription

www.bhpbilliton.com

www.bhpbilliton.com
Contents
A message from the President, Aluminium Customer Sector Group...........................2
BHP Billiton Aluminium Customer Sector Group Profile.............................................3
Product summary.........................................................................................................5
Managed operations
Worsley, Australia........................................................................................................6
BHP Billiton Maatschappij Suriname (BMS)....................................................................7
Mozal, Mozambique.....................................................................................................8
Hillside, South Africa....................................................................................................9
Bayside, South Africa................................................................................................. 10
Non-managed operations
Paranam Refinery, Suriname........................................................................................ 11
Alumar, Brazil............................................................................................................ 12
Mineração Rio do Norte SA (MRN), Brazil.................................................................... 13
Sustainability at Bhp Billiton Aluminium.................................................................. 14
BHP Billiton Charter................................................................................................... 15
BHP Billiton's Sustainable Development Policy............................................................. 16
Governance............................................................................................................... 17
Sustainability overview.............................................................................................. 21
Health..........................................................................................................................22
Safety..........................................................................................................................29
Environment................................................................................................................38
Community..................................................................................................................55
Economic
Socio-Economic: Our people and our neighbours......................................................... 68
Economic contributions.............................................................................................. 75
HSEC Awards............................................................................................................ 76
Statistics for the financial year 2006........................................................................ 77
Process description: mining, refining, smelting
Aluminium at work
Aluminium facts and figures
Transport sector case study
Glossary
acknowleDgements
This report was produced by the Aluminium Customer
Sector Group of BHP Billiton.
Editor: Hendrik Louw
Enquiries:
Marius van Tonder
General Manager, HSEC
BHP Billiton Aluminium
Tel: +27 35 908 8389
marius.vantonder@bhpbilliton.com
www.bhpbilliton.com
Typeset and designed by:
Artworks Communications, Durban, South Africa
MANAGED OPERATIONS
Worsley
Worsley Refinery
Gastaldo Road, Worsley, Western Australia
PO Box 344 Collie, Western Australia 6225
Tel: +61 8 9734 8311 • Fax: +61 8 9734 8413
info@wapl.com.au • www.wapl.com.au
Boddington Bauxite Mine
Williams Pinjarra Rd, Boddington, W. Australia
PO Box 50 Boddington, Western Australia 6390
Tel: +61 8 9883 8005 • Fax: +61 8 9734 8245
info@wapl.com.au •www.wapl.com.au
BHP Billiton Maatschappij Suriname (BMS)
Paranam Operations
13 V. H. Hogerhuysstraat
PO Box 1810, Paramaribo, Suriname
Tel: +597 323281, ext. 242 • Fax +597 323314
Hillside Aluminium
PO Box 897, Richards Bay 3900
9 West Central Arterial, Richards Bay
Tel: +27 35 908 8111
hillside@bhpbilliton.com
http://aluminium.bhpbilliton.co.za
Bayside Aluminium
4 Harbour Arterial, Richards Bay, 3900
PO Box 284, Richards Bay, 3900
Tel: +27 35 999 2111
Mozal
Beloluane Industrial Park Boane District
PO Box 1235 Maputo Mozambique
Tel: +258 21 735000 • Fax: +258 21 735082
mozal.site@bhpbilliton.com
mozal.marketing@bhpbilliton.com
BHP BILLITON aluminium CUSTOMER SECTOR GROUP REPORT 2006
<>
A message from the President
In the field of HSEC our goal is to achieve Zero Harm. This is not a simple task
and success requires the positive commitment and supportive efforts of all our
employees.
In the fiscal year just ended our safety performance as measured across lagging
indicators was mixed. We did not meet the year on year improvement goal we set
ourselves, as not all parts of the Aluminium Customer Sector Group (CSG) made positive
progress.
So while there is clearly still a challenge before us, I believe we are on the right track
and the necessary commitment of the Aluminium CSG to HSEC values and targets is
clearly demonstrated by our employees. This year saw a total of 66 entries for the
Aluminium CSG in the annual BHP Billiton HSEC awards function (a new record), of
which ten have been selected as finalists. In addition, submissions of case studies to the
Corporate Sustainability Report were of the highest standard, reflecting excellent work by
individuals and teams in the area of HSEC across all our operations globally.
Our focus on behavioural safety remains a high priority, underpinned by significant
allocation of financial and other resources to the improvement of the working
environment at all operations through the implementation of the BHP Billiton fatal risk
control protocols. Combined with a drive to report near misses, we believe we are well
on the way towards achieving the employee mindset required to assist the elimination
of serious incidents which may cause fatality or serious process damage. This focus will
continue in the coming period.
The CSG occupational health management program is well developed now and a plan to
identify and address occupational exposure as well as perform medical surveillance of
all employees is in place at all our sites. In addition we have matured our health focus
with further implementation of the BHP Billiton Fit for Work/Fit for Life programs. In the
past period specific emphasis has been placed on drug and alcohol, fatigue management,
travel health and medical assessment programs.
Community health work by the CSG, particularly in the southern Africa region, has continued
to receive much of our attention, given the priority of these concerns in this region. HIV/AIDS
and malaria programs continue to receive acclaim from third parties and our aim is to apply
our efforts in the coming period to similar initiatives in other parts of the African continent
where we may have influence.
In terms of environmental management our programs continue to address the demands
of deteriorating raw material quality as well as to ensure that we meet our targets for
emissions reductions and land and water management.
As with most resources, aluminium continues to enjoy global demand growth, with
resulting high prices. This is reflected in our financial and production results for 2006.
The commitment and contribution of our employees to the sustainable and value-based
growth of our company plays a major part in the ability of the business to meet these
demands. The continued commitment for all employees to our HSEC values and to quality
production will sustain this delivery into the future.
Graeme Hunt
President, BHP Billiton Aluminium
<>
Bhp Billiton Aluminium CSG profile
BHP Billiton is a major producer of primary aluminium, with a total operating capacity
from our operated sites of around 14 million tonnes of bauxite, in excess of 4 million
tonnes of alumina and in excess of 1.3 million tonnes of aluminium per annum.
BHP BILLITON % SHAREHOLDING
Primary aluminium smelters
%
Hillside Aluminium, South Africa 100%
Bayside Aluminium, South Africa 100%
The Aluminium CSG comprises sites in South America, Southern Africa and Australia.
These include:
Mozal, Mozambique • primary aluminium smelters – Hillside Aluminium and Bayside Aluminium located in
South Africa, Mozal located in Mozambique, and Alumar in Brazil
Alumina refineries
• alumina refineries – Worsley located in Australia, Paranam in Suriname and Alumar in
Brazil
Worsley, Australia 86%
Paranam, Suriname 45%
Alumar, Brazil 36%
• bauxite mines – MRN located in Brazil, BMS in Suriname and Boddington in Australia.
The Aluminium CSG services key market segments such as the automotive sector, the
packaging sector and the construction industry. The CSG is supported by marketing hubs
located in The Hague and Singapore, and South Africa for domestic sales.
The Aluminium CSG is a division of BHP Billiton, the world’s largest diversified resources
company, with more than 100 operations and offices in 25 countries.
The Company was created in 2001 through the dual listed companies merger of BHP Limited
(now BHP Billiton Ltd) and Billiton Plc (now BHP Billiton Plc). Headquartered in Melbourne,
the Company has primary listings on the Australian and London stock exchanges.
Worsley operations.
<>
Alumar, Brazil 47.1%
40%
Bauxite mines
MRN, Brazil 14.8%
Lelydorp III, Suriname 45%
Coermotibo, Suriname 45%
Kaaimansgrasie, Suriname
45%
Klaverblad, Suriname
45%
Boddington, Australia 86%
56
8
1
23
4
KEY
Operated sites
Non-operated sites
about this report
The Report covers the health, safety, environment and community performance and
socio-economic contributions of the operations which are managed by BHP Billiton’s
Aluminium Customer Sector Group, for the period 1 July 2005 to 30 June 2006. For
completeness, the non-managed operations are listed below and profiled on pages 11-13.
All the statistics in this Report refer to operated sites only. Statistics reported reflect
100 per cent production by sites as well as full sustainability impact.
aluminium csg managed operations
1 Mozal
Mozal is a primary aluminium smelter in Maputo Province, Mozambique.
2 Hillside Aluminium
Hillside is a primary aluminium smelter in Richards Bay, South Africa.
3 Bayside Aluminium
Bayside is a value-added primary aluminium smelter in Richards Bay, South Africa.
Mozal, Mozambique.
4 Worsley
Worsley comprises a bauxite mine and an alumina refinery in Western Australia.
5 BHP Billiton Maatschappij Suriname (BMS)
BMS comprises bauxite mines at Lelydorp III, Coermotibo, Kaaimangrasie and Klaverblad,
Suriname.
non-managed operations
6 Paranam Refinery, Suriname
The Paranam refinery is 45 per cent owned by BHP Billiton, and managed by Alcoa.
7 Alumar, Brazil
The Alumar Consortium (Alumar) is an unincorporated joint venture comprising an
alumina refinery, aluminium smelter and support facilities, located in Sao Luis, Brazil.
8 Mineração Rio do Norte (MRN), Brazil
BHP Billiton owns 14.8 per cent interest in MRN, a Brazilian mining company which
extracts and processes bauxite (17 million tonnes per annum).
<>
Alumar refinery, Brazil.
7
Product summary
BAUXITE
INGOTS
Bauxite is extracted from the mining operations at Worsley
in South-Western Australia, Lelydorp III and Coermotibo in
Suriname, South America, and at the non-managed MRN
operation in Brazil.
Primary aluminium produced at the smelters in southern
Africa and South America is cast into ingots for efficient
handling and transportation.
ALUMINA
T-BARS
Bauxite is processed at the refineries in South-Western
Australia and Suriname, South America, to produce alumina
(aluminium oxide), a white-ish powder seen here being
transported on an overland conveyor to the Hillside smelter
from Richards Bay harbour.
T-bars are cast at the South African smelters, Bayside and
Hillside, for customers requiring primary aluminium in a larger
format.
Value added aluminium products produced at Bayside, South Africa
Redraw rod
Extrusion billet
<>
Rolling ingot
ALUMINIUM CSG MANAGED OPERATIONS
Worsley, Australia
WORSLEY AT A GLANCE
Worsley Alumina’s operations are based on a mine site, refinery and ship loading
operation in the South West region of Western Australia.
Bauxite is mined from reserves mainly within state forest on the eastern edge of the
Darling Ranges in Western Australia, near the township of Boddington.
The bauxite is crushed and carried 51km by a two-flight cable belt conveyor system to the
refinery site at Worsley.
It is then processed, and the separated alumina is carted by rail and exported through the
Port of Bunbury.
Worsley commissioned a new, high technology ship loader at the Port in February this year. The
Cleveland cascade chute design incorporates the latest technology in dust and noise control.
There are around 1 300 employees at the mine site and refinery including more than
100 trainees, apprentices and graduates. Many more jobs have been created through
the employment of sub-contractors and the purchase of goods and services from local
businesses.
Operations Bauxite mine, alumina refinery, and ship loading facility
Location Boddington, Worsley and Bunbury in Western Australia
Shareholding BHP Billiton: 86%
Japan Alumina Associates
(Australia) Pty Ltd: 10%
Sojitz Alumina Pty Ltd: 4%
Production commencedApril 1984
Annual production
3.3 million tonnes alumina
No. of employees1 300
Market
Export
HSEC Report
www.wapl.com.au
Community development
Worsley works closely with neighbourhood communities, providing regular information
about its activities as well as providing community support through its sponsorship
programs.
Community liaison committees established at the refinery and at the mine site provide a
direct interface between the company and the neighbourhood community. The company
also conducts regular briefings for government, non-government and community groups.
Sponsorship activities are focused on adding long-term value to neighbourhood
communities through social programs, the development of community infrastructure and by
establishing government and community partnerships for special projects.
Worsley is also providing significant economic benefits to the region through its support of
local contractors, businesses and suppliers.
History
The Worsley Alumina project takes its name from the settlement of Worsley, once a thriving
timber town near Collie in the southwest corner of Western Australia.
The project dates back to the early 1960s when a group of local business people formed
a company to explore, develop and sell deposits of bauxite ore on the eastern side of the
Darling Range.
There were several changes in ownership before construction of a mine site and refinery
began in 1980. The first alumina was produced in April 1984.
In 1985, production reached one million tonnes. Since that time a number of expansion
projects, upgrading works, new technology and process efficiencies have enabled
production to grow to a capacity of around 3.3 million tonnes a year.
In April this year, Worsley was given environmental approval to increase production to
4.4 million tonnes a year. A feasibility study is in progress.
<>
The 51 km overland conveyor transports bauxite to
the Worsley refinery.
BHP Billiton Maatschappij Suriname, Suriname
BMS operations comprise bauxite mines at Lelydorp III and Coermotibo, Suriname.
Lelydorp III is an open-pit bauxite mine situated in the coastal plain of Suriname, around
25 kilometres south of Paramaribo and 17 kms west of the Paranam refinery.
In the bauxite mining process the overburden is removed by a bucket wheel excavator
and dragline. Bauxite is removed using an excavator, and transported to the Paranam
refinery by road.
The Coermotibo mine is a surface mine located 150 kms east of the Paranam refinery.
The bauxite is hauled to the Coermotibo crushing and loading facility and subsequently
transported by barge to the Paranam refinery.
As the Lelydorp III and Coermotibo mines will be depleted in early 2007, BHP Billiton
and joint venture partner Suralco are investing $200 million to develop two new bauxite
mines, Kaaimangrasie and Klaverblad, which will be operational by mid-2006 and mid2007 respectively.
BMS AT A GLANCE
Operations
Lelydorp III, Coermotibo, Kaaimangrasie and Klaverblad bauxite mines
Location Suriname
Shareholding
BHP Billiton: 45% Suralco: 55%
Production commenced 1940
Annual production 5 million tonnes bauxite, 2.2 million
tonnes alumina
No. of employees
2 200
Market
Bauxite to Paranam alumina refinery
Rehabilitation and closure plans are in place for the Lelydorp III and Coermotibo mines.
The BHP Billiton Suriname Sustainable Development Foundation was established in
2005 to initiate, implement, coordinate and manage sustainable projects in Suriname
in partnership with key stakeholders. A key objective of the Foundation is to secure the
participation and involvement of local communities in projects from the outset.
KAAIMANGRASIE
KLAVERBLAD
The Foundation selects projects which support capacity building and strengthening
of local communities, create long term and sustainable income for communities, and
contribute to socio-economic upliftment of the communities where BMS operates.
The Foundation has identified five focus areas for sustainable development: education,
health, job creation, arts and culture, and environment.
History
In 1939 the Billiton company, which was originally involved in tin mining in Indonesia,
came to Suriname to explore bauxite, and mining started in 1940. In 1970 the Royal
Dutch/Shell Group bought Billiton, which was headquartered at The Hague, Netherlands.
In 1984 the first joint venture with Alcoa’s affiliate Suralco was signed.
In August 2003 the mining and refining joint venture with Suralco was reviewed, and the
current division of ownership was adopted.
Mining bauxite, Suriname.
<>
Mozal, Mozambique
Mozal, situated near Maputo in southern Mozambique, produces around 560 000
tonnes of aluminium per year using upgraded Pechiney AP35 technology. Mozal
employs around 1 100 people directly. An estimated 10 000 people benefit from
Mozal’s indirect job creation.
Partnerships have been a vital component of Mozal’s success. MOTRACO was formed
by the public owned Electricity Company of Mozambique (EDM), South Africa (Eskom)
and Swaziland (SEB) to deliver Mozal's power requirements. Maputo Port Development
Company and the Mozambiquan Railway and Port Authority (CFM) are responsible for
bringing the alumina ships to Mozal’s dedicated berth at Matola and for despatching the
aluminium ingot vessels to Europe.
The Mozal Community Development Trust (MCDT) was established in August 2001 by the
Mozal shareholders to address five key areas: small business development, education and
training, health and environment, sports and culture and community infrastructure. In the
health arena, key programs addressing HIV/AIDS and malaria have been initiated.
The MCDT works with communities situated within a 20 km radius of the smelter, although
projects in the Matola and Maputo city areas are also considered. A key aspect of the MCDT’s
work is that communities are encouraged to take ownership of programs so that they can
play a proactive role in improving the quality of their lives.
History
The successful completion of the Hillside smelter in Richards Bay, and the arrival of a new
era of peace and stability in southern Africa following democratic elections in South Africa
and Mozambique in 1994, provided the impetus for the construction of the Mozal smelter.
After receiving the backing of the Mozambican government and completion of a feasibility
study and environmental impact assessment, Billiton and project partner, the Industrial
Development Corporation of South Africa, gave the project the green light in June 1997.
Construction of phase 1 of the project began in July 1998. At a budgeted cost of
$1.18 billion, it was the first major development in Mozambique for 30 years and the
country's largest private investment ever.
Phase 1 was successfully completed six months ahead of schedule and within budget. The
first aluminium was cast in June 2000 and the first ingots exported in August that year.
In June 2001, phase 2 of the project was approved with a construction budget of
$860 million. The expansion, completed ahead of schedule and within budget in August
2003, doubled capacity.
An aerial view of Mozal.
<>
MOZAL AT A GLANCE
OperationsAluminium smelter
LocationMaputo, Mozambique
Shareholding
BHP Billiton: 47.1% Mitsubishi Corporation of Japan: 25%
Industrial Development Corporation (SA): 24%
Mozambique Government: 4%
Production commenced June 2000
Annual production
560 000 tonnes primary aluminium
Market
Export
HSEC Report
www.mozal.com
Hillside, South Africa
Hillside Aluminum is a modern primary aluminium smelter with 720 reduction
(electrolytic) cells, producing in excess of 700 000 tonnes aluminium per annum.
The smelter is based on Pechiney AP35 technology and employs around 1 100 people
directly and 1 500 indirectly. The Hillside smelter is situated in Richards Bay, 200 km
north of Durban, KwaZulu-Natal, South Africa, and was commissioned between July 1995
and June 1996.
Hillside Aluminium is a strategic investor in local community development, supporting a
variety of projects in health, education, skills development, job creation, crime prevention
and environmental conservation.
Hillside employees are represented on a CSI Employee Forum which screens funding
applications from community organisations. This forum, together with the Matched
Giving and Give-As-You-Earn programs, ensures that employees get actively involved in
community development efforts.
HILLSIDE AT A GLANCE
Operations
Aluminium smelter
Location
Richards Bay, South Africa
Shareholding
BHP Billiton: 100%
Production commenced
July 1995
Annual production
Market
Domestic and export
HSEC Report
http//:aluminium.
bhpbilliton.co.za
History
Hillside Aluminium was established in Richards Bay in 1995. The smelter was located in
Richards Bay due to the availability of competitively priced electric power in South Africa
and because of the town’s deep-water port.
An expansion, completed in 2003, increased the smelter's capacity by around 130 000
tonnes per year.
A potline at Hillside Aluminium.
Aerial view of the Hillside smelter.
<>
Bayside, South Africa
The Bayside Aluminium smelter was established at Richards Bay, South Africa, in
1971. It is the only producer of value added primary aluminium products in southern
Africa.
An upgrade of the B and C potrooms in 2002 realised a significant improvement in
environmental performance.
A $25 million upgrade completed in November 2003, which improved safety, quality
and productivity in the Casthouse, turned the Bayside smelter into a facility capable of
competing with the world’s most modern plants.
Bayside currently produces 180 000 tonnes of primary aluminium per annum. The smelter
employs around 1 000 people directly and another 1 000 indirectly.
Bayside’s expertise lies in the manufacture of a wide product range including rolling
ingot, extrusion ingot and redraw rod for local and export markets. Total casting
capacity at Bayside is 250 000 tonnes.
BAYSIDE AT A GLANCE
Operations
Auminium smelter
Location
Richards Bay, South Africa
Shareholding
BHP Billiton: 100%
Production commencedMay 1971
Annual production180 000 tonnes primary aluminium
Market
Domestic and export
HSEC Report
http//:aluminium.
bhpbilliton.co.za
Bayside smelter is a strategic investor in local community development, supporting a
variety of projects in health, education, skills development, job creation, crime prevention
and environmental conservation.
Bayside employees are represented on a CSI Employee Forum which screens funding
applications from community organisations. This forum, together with the Matched
Giving and Give-As-You-Earn programs, ensures that employees get actively involved in
community development efforts.
History
The Bayside smelter was established by the South African company, Alusaf, in 1971 close
to the port of Richards Bay.
The Alusaf smelter was the first major industry to be established at Richards Bay. This
region has now become a significant and rapidly growing industrial centre linked to the
busy deep-water port.
The Bayside smelter is situated close to the Richards Bay harbour.
Redraw rod produced at Bayside.
< 10 >
ALUMINIUM CSG NON-MANAGED OPERATIONS
Paranam, Suriname
PARANAM AT A GLANCE
Operations
Alumina refinery
Location
Suriname
The Paranam Refinery is situated in Paramaribo, Suriname, close to the Coermotibo
and Lelydorp III mines which supply it with bauxite. The operations in Suriname are
a joint venture between Suralco (55%) and BHP Billiton (45%). Suralco is responsible
for the management of the Paranam refinery, while BHP Billiton is responsible for
the management of the bauxite mining activities.
Shareholding
BHP Billiton: 45%
Suralco: 55%
The refinery is a low temperature plant utilising Bayer technology, and produces around
2.3 million tones of alumina per year – all of which is exported.
Construction of the refinery began in 1958, was fully operational by 1965, and contributes
substantially to progressive development within Suriname.
Alumina mined and refined by Suralco is sold into the global market for smelting and
further processing.
Today, Suralco is Suriname’s largest private employer and tax payer. The company further
contributes to the national economy through substantial purchases of local goods and
services, contributions to charity, and support of social, sports, cultural, educational, and
other activities. The company’s policies and practices are directed toward the promotion
of trade and industry in the country as well as toward the improvement of living
conditions for employees, their families, and the communities in which they live.
History
Suralco was incorporated in Suriname in 1916 as Surinaamsche Bauxite Maatschappij N.V.
This early company was solely engaged in the development, mining, and export of the
country’s bauxite resources until the signing of the Brokopondo Agreement in 1958. This
agreement created a joint venture with the Suriname government for the development of
hydroelectric power on the Suriname River and a fully integrated aluminium industry in
the country. The company’s name changed to Suriname Aluminium Company (Suralco).
The construction of industrial facilities covered by the Brokopondo Agreement started
immediately in 1958. By 1965, when the refining and smelting plants went into operation,
more than $150 million had been invested.
In 1984, Suralco and Billiton Maatschappij Suriname (BMS) signed two agreements: one
for the exploration of bauxite and one for the production of alumina. A second joint
venture between Suralco and BHP Billiton was signed in August 2003.
Paranam refinery, Suriname.
< 11 >
Production commenced1965
Annual production
2.25 million tonnes alumina
No. of employees
860
Market
Export
Alumar, Brazil
Alumar, located in Northern Brazil, produces around 440 000 tonnes of aluminium and
1.5 million tonnes of alumina per annum.
Alumar is situated in São Luis Island, in Northern Brazil. It is one of the world’s largest
industrial complexes in the primary aluminum segment and comprises:
• a port with a capacity for berthing ships up to 50 000 tonnes where the raw materials
are unloaded (bauxite, coke, pitch, coal and caustic soda)
• a refinery, where the alumina is extracted from bauxite, producing around 1.5 million
tonnes per year. Most of this production is sent to the Alumar smelter
• a smelter which produces around 440 000 tonnes per year of primary aluminum
ingots.
Alumar has a positive impact on the regional and national economies, employing more than
1 800 people and 1 605 contractors.
The environmental management system adheres to the principles of sustainable
development that are based on economic prosperity, and social and environmental
responsibility. The health and safety management system is based on adherence to
rigorous standards and the elimination of risks. The company invests in prevention
processes and programs, focusing on employee awareness and commitment.
alumar AT A GLANCE
OperationsAlumina refinery & aluminium smelter
Location
Northern Brazil
Shareholding
Refinery
Alcoa: 54%
BHP Billiton: 36% Alcan: 10%
Smelter
Alcoa: 60%
BHP Billiton: 40%
Production
commencedAugust 1984
Annual production1.5 million tonnes of alumina
Market
Domestic & international
Community Development
Since its establishment Alumar’s relationship with the community has grown through
consistent and effective participation in local projects and activities, in partnership with
community and government institutions.
History
Billiton and Alcoa started construction of the Alumar industrial complex in 1980, and
operations began in August 1984.
An expansion project in the refinery is currently being implemented that will result in
an increase in production from 1.5 million tonnes to 3.5 million tonnes per year. The
expansion is scheduled for completion in mid-2008.
The Alumar smelter.
The entrance to the Alumar refinery.
< 12 >
Ã
Mineração Rio do Norte (MRN), Brazil
MRN’s operations include bauxite mining, beneficiation, railroad transport and
ship-loading.
MRN AT A GLANCE
Operations
Bauxite mine
Bauxite ore deposits at MRN are found at an average depth of eight metres.
Location
Oriximiná, Brazil
After beneficiation, the ore is transported from the mine to the port on a 30km-long
railway. At the port, the ore is stored to feed the dryers or it is conveyed wet to the ships.
The port’s draft can accommodate ships of up to 70 000 tonnes capacity.
Shareholding
Vale do Rio Doce Alumínio SA: 40%
BHP Billiton Metais SA: 14.8% Alcan Alumínio do Brasil
Ltda: 12%
Cia. Brasileira de Alumínio – CBA: 10%
Alcoa Alumínio SA: 8.58%
Norsk Hydro do Brasil Ltda: 5%
Alcoa World Alumina LLC: 5%
Abalco SA: 4.62%
The project’s initial production capacity was three million tonnes per year. Current
capacity is over 17 million tonnes per year of bauxite ore.
MRN is situated in the Amazon, and the company is fully aware of its responsibility to
ensure there is no negative impact on the community and environment.
The social programs developed by MRN, through partnership with external stakeholders
and the volunteering participation of its employees, are built on four pillars: education,
health and safety, environment and sustainable development. The ethical and social
behaviour carries the essence of the paths the Company has followed towards achieving
balance and harmony among employees, the community and the environment, which
is translated into sustainable social and economic development, and simultaneously
improving the quality of life of its employees and their families, of local communities and
of the society as a whole.
Since its first year of operations, MRN has been engaged in efforts to reduce
environmental impacts, including the following key programs:
• rehabilitation of mined-out areas
• elimination of solid particle emissions from the bauxite dryer stacks
• rehabilitation of Lake Batata.
History
After the discovery of bauxite in the Amazon in 1960, a number of companies got
together to initiate a bauxite mining project. Construction began in 1976 and the first ore
was mined in 1979, with an initial capacity of three million tonnes per year.
An expansion project completed in 2003 increased bauxite capacity to its current level of
16.3 million tonnes per year.
Loading bauxite ore, MRN.
< 13 >
Production
commenced1979
Annual production17 million tonnes
Market
Domestic and international
Sustainability at Bhp Billiton aluminium
Without a profitable business, we are simply unable to contribute
to the broader goals of sustainability. We recognise, however, that
our bottom line performance is dependent on ensuring access to
resources and securing a licence to operate. Therefore maximising
the bottom line is about recognising the value protection and
value add that can be achieved through enhanced performance in
the non-financial dimensions. We term this our sustainability value
add and recognise the value it can bring to our business through:
Operational
Compliance
Leading Practice
Threat
Strategic
Opportunity
Identification
Insular
Stewardship
Partner Focused
PHASE 1
Compliance
PHASE 2
PHASE 3
Risk
Responsibility
Management
PHASE 4
Innovation
PHASE 5
Strategic
Alignment
Efficiencies &
Partnerships
Leadership
VALUE ADD
Sustainable Development Road Map
VALUE CREATION > VALUE PROTECTION
The business case
For BHP Billiton, sustainable development is about ensuring our
business remains viable and contributes lasting benefits to society
through the consideration of social, environmental, ethical and
economic aspects in all that we do, according to our own Charter
and Sustainable Development Policy (see pages 15 & 16).
• reduced business risk and enhanced business opportunities
• gaining and maintaining our licence to operate and grow
• improved operational performance and efficiency
Legislation
• improved attraction and retention of our workforce
Systems &
Procedures
• maintained security of operations
Values &
Behaviours
BUSINESS MATURITY >
• enhanced brand recognition and reputation
• enhanced ability to strategically plan for the longer term.
Our approach
Our Sustainable Development Road Map is a strategy map that
provides a contextual framework for how we measure our progress
on our journey towards sustainable development.
We will be encouraging our managers to place their decisions in
the context of this Road Map and question how they can better
improve the sustainability performance of our operations. The
Road Map seeks to illustrate that there are three contexts to
consider when making decisions that influence our ability to
contribute to sustainable development.
At the operational level, we will be encouraging our managers to
increasingly seek out leading practices across the HSEC dimensions.
On a strategic level, we will be encouraging management teams
to identify opportunities that drive sustainable value creation.
At the commodity level, we will be encouraging our businesses
to demonstrate stewardship by building partnerships across the
lifecycles of our products to deliver broader business and societal
returns. We recognise that there may not always be a need for
operations to excel in all aspects of sustainability, and therefore
encourage an approach whereby operations strive for excellence
in areas where they perceive the greatest relevance to their
stakeholders and business. While each stage in maturity is distinct,
it is recognised that the requirements of the previous stage must be
maintained and built upon in order to progress in maturity.
Mature sustainable development is about strong leadership and
foresight. We see this as leading to the strategic alignment of
opportunities – for example, the use of spent potlining in the
cement industry.
Sustainability challenges
Our sustainability challenges are those issues that we believe may
have a material impact on our ability to be a successful business.
These include:
• Fatal risks – Our challenge is to fully implement and optimise
the safety management standards we have developed. We need
to ensure that all our employees and contractors understand,
apply rigorously, and fully comply with these standards.
• Occupational and community health – Our challenge is to
ensure that our health programs are continually evolving in
order to maintain our journey towards Zero Harm, recognising
and influencing those factors that impact upon our employees,
their families and our communities.
• Greenhouse gas emissions – Our challenge as a member of
global society is to help meet the world's minerals and energy
needs while mitigating the potential impact of greenhouse gas
emissions on the climate.
• Access to resources – Our challenge is to achieve access
to the resources relevant to our scope of operations while
addressing heightened political and societal expectations
related to obtaining and maintaining a ‘licence to operate’.
• Sustainable community development and closure – Our
challenge is to maximise the benefits to communities during
the operational phase of the operation so that we leave a
lasting positive legacy after closure.
< 14 >
BHP BILLITON CHARTER
We are BHP Billiton, a leading global resources company.
Our purpose is to create long-term value through the discovery, development
and conversion of natural resources, and the provision of innovative customer
and market-focused solutions.
To prosper and achieve real growth, we must:
• actively manage and build our portfolio of high quality assets and services,
• continue the drive towards a high performance organisation in which every individual
accepts responsibility and is rewarded for results,
• earn the trust of employees, customers, suppliers, communities and shareholders by being
forthright in our communications and consistently delivering on commitments.
We value:
• Safety and the Environment – An overriding commitment to health, safety, environmental
responsibility and sustainable development.
• Integrity – Including doing what we say we will do.
• High Performance – The excitement and fulfilment of achieving superior business results
and stretching our capabilities.
• Win-win Relationships – Having relationships which focus on the creation of value for all
parties.
• The Courage to Lead Change – Accepting the responsibility to inspire and deliver positive
change in the face of adversity.
• Respect for Each Other – The embracing of diversity, enriched by openness, sharing, trust,
teamwork and involvement.
We are successful in creating value when:
• our shareholders are realising a superior return on their investment
• our customers and suppliers are benefiting from our business relationships
• the communities in which we operate value our citizenship
• every employee starts each day with a sense of purpose and ends each day with a sense of
accomplishment.
Chip Goodyear
Chief Executive Officer
October 2004
< 15 >
our approach to health, safety, environment
and the community
bhp billiton's sustainable
development policy
At BHP Billiton our objective is to be the company of choice – creating
sustainable value for our shareholders, employees, contractors, suppliers,
customers, business partners and host communities.
We aspire to Zero Harm to people, our host communities and the environment
and strive to achieve leading industry practice. Sound principles to govern
safety, business conduct, social, environmental and economic activities are
integral to the way we do business.
Wherever we operate we will develop, implement and maintain management systems
for sustainable development that drive continual improvement and ensure we:
• do not compromise our safety values, and seek ways to promote and improve the health of
our workforce and the community
• identify, assess and manage risks to employees, contractors, the environment and our host
communities
• uphold ethical business practices and meet or, where less stringent than our standards,
exceed applicable legal and other requirements
• understand, promote and uphold fundamental human rights within our sphere of influence,
respecting the traditional rights of Indigenous peoples and valuing cultural heritage
• encourage a diverse workforce and provide a work environment in which everyone is treated
fairly, with respect and can realise their full potential
• set and achieve targets that promote efficient use of resources and include reducing and
preventing pollution
• enhance biodiversity protection by assessing and considering ecological values and land-use
aspects in investment, operational and closure activities
• engage regularly, openly and honestly with people affected by our operations, and take their
views and concerns into account in our decision-making
• develop partnerships that foster the sustainable development of our host communities,
enhance economic benefits from our operations and contribute to poverty alleviation
• work with those involved through the lifecycles of our products and by-products to promote
their responsible use and management
• regularly review our performance and publicly report our progress.
In implementing this Policy, we will engage with and support our employees, contractors,
suppliers, customers, business partners and host communities in sharing responsibility
for meeting our requirements.
We will be successful when we achieve our targets towards Zero Harm, are valued by
our host communities, and provide lasting social, environmental and economic benefits
to society.
Chip Goodyear
Chief Executive Officer
September 2005
< 16 >
Governance
Ensuring alignment with
Company sustainability objectives
BHP Billiton: sustainable development
organisational structure
Management of the Health, Safety, Environment and
Community aspects of the Aluminium Customer Sector Group
is governed by a framework of policies, standards, procedures
and protocols which emanate from the parent company, BHP
Billiton. The BHP Billiton Charter and Sustainable Development
Policy (shown on pages 15 and 16) are the key documents
governing all BHP Billiton operations.
BHP Billiton
Board
Global Ethics
Panel
*Executive
Management
CSG HSEC
Representatives
HSEC Networks
Site Line
Management
HSEC Personnel
* includes the Office of the Chief Executive, Executive Committee and Operating Committee
• Line management has primary responsibility and accountability
for HSEC performance
• The HSEC function provides advice and guidance and
advocates leading practices directly, and through a series of
networks across the business
Hierarchy of systems
and documents
OTHER KEY POLICIES
AND DOCUMENTS
•Closure Standard •Investment Process Manual
& Standards
•Crisis and Emergency
Management Systems
•Fatal Risk Control Protocols
•Carbon Pricing Protocol
•Anti-trust Protocols
•Records Disposal Manual
•Fit for work/Fit for life
•Incident Cause Analysis
Method (ICAM)
Sustainable
Development
Policy
HSEC Management
Standards
S
Central to our business is our Company Charter, which expresses
our Company’s ‘overriding commitment to health, safety,
environmental responsibility and sustainable development’.
•Guide to Business Conduct
•Policy on Independence of Directors
•Enterprise-Wide Risk Management Policy
•Employment Principles
STEM
E SY
Hierarchy of systems and documents
Our hierarchy of systems and documents (as shown opposite) represents
our HSEC system and other related Company policies and documents.
Charter
D
Y-WI
PAN
COM
• Executive remuneration is directly linked to performance indicators
that include health, safety, environment and community targets.
Procedures, Protocols,
Guidelines and Toolkits
Business-based HSEC
Management Systems
-WID
NESS
BUSI
Operational HSEC Procedures
STEM
E SY
Supporting the values of our Charter is the Sustainable
Development Policy. While we strive to deliver strong financial
returns to shareholders, we fully recognise and deliver on our wider
responsibilities to our stakeholders – as the Policy states: ‘our
objective is to be the company of choice – creating sustainable value
for our shareholders, employees, contractors, suppliers, customers,
business partners and host communities.’ Integral to this is our
aspirational goal of Zero Harm.
Corporate
HSEC
HSEC Forum
Customer
Sector Groups
Structure and responsibilities
BHP Billiton's organisation for sustainable development is
characterised by the following key features (see diagram opposite):
• A Sustainability Committee (formerly HSE Committee) of the
Board provides assurance on HSE matters across the Group
Sustainability
Committee of the
Board (formerly
HSE Committee)
Risk & Audit
Committee
S
The Guide to Business Conduct applies to our entire workforce,
regardless of their specific job or location. It provides employees and
contractors with direction and advice on conducting business and
interacting with governments, communities and business partners.
Health – promoting and improving the health of the Company’s
workforce and host communities.
Safety – ensuring that safety values are not compromised, and
providing a workplace where people are work without being injured.
The BHP Billiton HSEC Management Standards form the basis of
the development and application of HSEC management systems at
all levels in the Company, and represent a key process through which Environment – promoting the efficient use of resources, reducing and
we drive our contribution to sustainable development.
preventing pollution, and enhancing biodiversity protection.
The Standards cover all operational aspects and activities across
the entire lifecycle of operations that have the potential to affect
HSEC, either positively or negatively. The terminology Health, Safety,
Environment and Community (or HSEC) has been utilised throughout
the Standards to highlight four key components of sustainable
development. These are:
Community:
• internal community: engaging regularly with employees & contractors
• external community: engaging regularly with those affected by
our operations, including our host communities
• human rights: understanding, promoting and upholding fundamental
human rights within BHP Billiton’s sphere of influence.
< 17 >
AUDIT AND SELF-ASSESSMENT
Fatal Risk Control Protocols
Central to the Management Standards is a requirement for
an auditing process to check that the BHP Billiton Charter,
Sustainable Development Policy and Standards are being applied,
and to verify performance.
Background
A key part of audit and self-assessment is the auditing of compliance
to the BHP Billiton FRCPs. A Group-wide review of past fatalities
and signiﬁcant safety incidents identiﬁed a series of key potentially
fatal risks to BHP Billiton employees and contractors – risks that
required the development of sound practices to eliminate fatalities
and incidents that could, in slightly different circumstances, cause
fatalities.
All Aluminium CSG sites have been audited since the
implementation of the Management Standards.
As in previous years, operating sites not audited during the year
under review were required to undertake self-assessments against
the Standards.
The Fatal Risk Control Protocols, which were developed by
workgroups comprising individuals from across BHP Billiton
It was observed that the discrepancy between scores from self
with extensive experience in operations, establish minimum
assessments and that from audits was negligible.
performance expectations for managing these risk areas at
The results from these self-assessments have been combined
leading practice levels. (The Protocols do not presume to cover all
with the audit results to give the average level and range of
risk areas faced by our operations – including some which have
conformance for each Standard presented in the graph (below
caused multiple fatalities. These other risk areas are addressed
left). An overall conformance of 3.9 out of 5 was achieved against through the risk management process that is a key element of the
our target of full conformance (a score of greater than 4 out of 5) BHP Billiton HSEC Management Standards.)
with the Standards by 30 June 2005.
Application
These Protocols apply at all BHP Billiton controlled sites
and controlled activities, and to all BHP Billiton employees,
contractors and visitors when involved in controlled activities.
Aluminium CSG audit and self-assessment scores
5.0
4.5
4.0
Sustaining of FRCP
After the initial planning and implementation phases there is now a
big drive towards the sustainability of, and adherence to, the FRCP.
3.5
3.0
2.5
2.0
1.5
1.0
Average
70
60
50
Hillside
40
HSEC management standards
30
Standard 1 Leadership and accountability
Standard 2 Legal requirements, commitments and document control
Standard 3 Risk and change management
Standard 4 Planning, goals and targets
Standard 5 Awareness, competence and behaviour
Standard 6 Health and hygiene
Standard 7 Communication, consultation and participation
Standard 8 Business conduct, human rights and community development
Standard 9 Design, construction and commissioning
Standard 10 Operations and maintenance
Standard 11 Suppliers, contractors and partners
Standard 12 Stewardship
Standard 13 Incident reporting and investigation
Standard 14 Crisis and emergency management
Standard 15Monitoring, audit and review
20
BMS
Worsley
Bayside
Mozal
Average
FRCP 10
FRCP 9
FRCP 8
FRCP 7
0
FRCP 6
10
FRCP 5
Standard 15
Standard 13
Standard 14
Standard 11
Standard 12
Mozal
80
FRCP 2
Bayside
Standard 10
Standard 9
Standard 8
Standard 7
Standard 6
Worsley
FRCP compliance scores
FRCP 1
BMS
Standard 5
Standard 4
90
Standard 3
0
Standard 2
100
Standard 1
0.5
Hillside
The Protocols cover 10 risk areas, namely:
1) Light Vehicles
2) Surface Mobile Equipment
3) Underground Mobile Equipment
4) Underground Control
5) Hazardous Materials Management
6) Molten Materials Management
7) Equipment Safeguarding
< 18 >
8) Isolation
9) Working at Heights
10) Lifting Operations
Note that FRCP 3 & 4 do not apply to
aluminium sites. FRCP 6 does not apply
to mines and refineries.
case study
implementing the Fatal Risk Control Protocols
Targets set
The Fatal Risk Control Protocols were published in April 2003
and a target for completion of all activities required for the
first nine protocols was set for 30 June 2005. A second edition
that introduced Protocol 10 was published in January 2005
and compliance was set for 30 June 2006. This limited time
frame meant that the method used to implement the needed
hardware, systems and training was critical for the successful
completion and sustaining of the Protocol requirements.
Setting a good foundation
Implementation of activities so diverse needed good planning,
monitoring and allocation of the correct resources. For this
reason most sites approached this as a project and used the
project execution systems, structures and resources in place at
each site to plan, implement and monitor the different activities.
Maximising synergies
The Aluminium sites identified the need to work closely together
and formed a work group that met regularly to report back
on progress and to discuss areas of constraint. The electronic
media was used extensively to communicate and make available
material related to the requirements of the Protocols. The
appointment of global Fatal Risk Control Protocol facilitators for
each protocol led to vastly improved communication and sharing
of information across the different CSGs.
A booklet containing details of the Fatal Risk Control Protocols has been
distributed to all employees and contractors.
Equipment Safeguarding
• The designs of some of the guards (Hillside)
Challenges and opportunities
The requirements set out by the Protocol brought some unexpected
challenges which were tackled as ‘opportunities’ to make BHP
Billiton sites safer places to work in. In some cases manufacturers
and suppliers have agreed to make modifications to their product
in order to meet BHP Billiton’s safety requirements, as in the case of
hand tools which needed to be fitted with a fail-safe device.
• Equipment access gates (Mozal, Hillside and Bayside worked
together on design).
• Inter-locking on bake furnace transfer and cleaning station
access gates (Hillside).
Isolations
Inter site audits
During the roll out and implementation of the FRCPs at Hillside,
Mozal, Bayside, Worsley and most of the global FRCP auditors
participated in ‘audits between sites’ (see graph on page
18). This was used as an opportunity to assist each other in
identifying areas of concern, opportunities and challenges. In
addition the audits served to build stronger bridges between
the different teams at participating sites.
• Permits and key control system (Worsley, Hillside, Bayside
and Mozal worked together on design).
Some of the FRCP initiatives that were identified as best
practice and subsequently implemented at the other sites,
include:
• Type and installer of anchor points (Mozal, Hillside and
Bayside worked together on design).
Working at Heights
• Rescue plans for all types of working at heights rescue (Hillside)
• Rescue equipment (Hillside).
• Working at heights checklist and permits (Mozal and Hillside
designed).
• The greatest success is the ‘BHP Billiton Safety Harness’ that
went through more than 20 design changes before being
Surface Mobile Vehicles
accepted by Hillside, Mozal and Bayside as the standard for
• Segregation between people and surface mobile vehicles (Mozal)
safety harnesses. This harness was subsequently manufactured
• Fire blankets in vehicles to protect the driver should it be
and tested by Spider Webb, a safety harness manufacturing
necessary to escape during a fire (Worsley).
company, and is now freely available on the world market.
< 19 >
case study
Initiative to simplify the FRCPs at BMS
BMS management believed it was necessary to come up with
an innovative method of communicating the Fatal Risk Control
Protocols in order to address language and literacy challenges.
The FRCP team was tasked with the production of an illustrated
summary of the FRCPs that would make the material easy to
understand, and also easier to use for training purposes.
Buggy
whip
The team was able to capture 80% of the standards of more
than 300 pages in just 12 pages. More importantly, it enabled
2 500 people to understand and implement FRCPs, thereby
contributing to the BMS drive towards Zero Harm.
Flashing
Light
Certified
ROPs (4wd)
High vis.
colour
The following is an example of the FRCP summary for Light
Motor Vehicles.
Reflective striping, Company
logo and ID# when on site
BMS light vehicle Fatal Risk Control Protocol quick reference
The intention of this procedure is to minimise and eliminate the
risk of fatalities, accidents, incidents and damage that might
This illustration indicates the minimum, pit, other and site specific
requirements for Light Vehicles.
occur during the use of Light Vehicles.
Purpose
This procedure will contribute to ensure a safe way to equip
and use BMS Light Vehicles for all employees and contractors
employed at BHP Billiton Suriname.
· Vehicles must be maintained according to the formal
maintenance program recommended by the manufacturer.
· A LV service sheet shall be completed at the completion of
each service.
Definition of a Light Vehicle
A Light Vehicle (LV) is a motor vehicle which:
· A journey management procedure is to be used for long on
duty trips.
· where registered, could be legally driven on a public
roadway by a driver issued with a standard basic level (BE)
public road driver’s license
· has three or more wheels
· is two or four wheel driven
· seats a maximum of 12 adults (including the driver)
· does not exceed 4.5 tonnes gross vehicle mass (GVM).
· The use of mobile phones, whether hands free or not, by a
driver of a light vehicle is prohibited while driving. Mobile
phones to be turned off at refuelling stations and near
blasting operations/explosives.
· Always be on the lookout for pedestrians and obey all signs.
Keep a safe distance between vehicles.
Plant and equipment requirements
· Complete guidelines for the equipping and use of LV has
been approved for use by the management team – ask your
safety officer/manager for a copy when required.
· Vehicle types must be approved by the FRCP champion and
each vehicle will be certified as being Site and/or PIT compliant.
Site and pit compliant vehicles will be certified for that purpose
and a compliance sticker license will be issued accordingly.
· All vehicle modifications must be done according to BMS change
management procedures.
· Site and PIT boundaries will be demarcated and only vehicles
approved for those areas will be allowed access.
Procedural requirements
· All LV users are to fill out a pre-use inspection report
· Obey all rules and adhere to the approved traffic
management plan.
· Always reverse park or stop in a way that you can drive
forward after stopping. Don’t park within 20m of a highwall.
Remove keys whilst parked.
· Don’t overtake unless you have made positive radio contact
with the vehicle you wish to pass.
· Transport of passengers in the cargo tray is prohibited and
the picking up of hitch hikers is also not allowed.
People requirements
· Drivers of BMS Light Vehicles must have a BMS license + DD
and a valid national or international BE license or equivalent
when on site for a period of more than three months. For a
period less than three months a national or international BE
license or equivalent is required.
· The use of seatbelts in Light Vehicles is mandatory for all
occupants.
· All LV pit drivers must have a PIT license.
· Light Vehicle running head lights must be left on whenever
the vehicle is in operation (day and night).
· All drivers are encouraged to attend Fit For Work/Fit For Life
training and fatigue management training.
< 20 >
SUSTAINABILITY overview
Key aspects of the Aluminium CSG HSEC performance for the
reporting period 2005/06.
• We have sustained our Total Recordable Injury Frequency Rate
with year end TRIFR being 4.12.
• We continued roll out of the BHP Billiton Fatal Risk Control
Protocols.
• Behaviour-based HSE programs were enhanced with a
continued drive across all sites to report near miss incidents
and take appropriate action to rectify, reduce risk and raise
awareness.
• No significant environmental incidents occurred.
•All managed sites maintained their ISO 14001 certification.
• The CSG continued the implementation of a leading practice
occupational health management program.
• We continued implementation of the Fit for Work/Fit for Life
guideline program as part of our holistic approach to health
and safety for all employees.
• Contractor management training at all sites has progressed
well, with around 70% of employees trained so far.
• We have continued to operate and support community
programs in all countries where we operate, with international
recognition being attained for community health initiatives in
Mozambique and South Africa.
The Gas Treatment Centre, Mozal.
• Community projects will continue to focus on fostering
positive partnerships with the communities and governments.
Programs will be designed to impact overall HSEC needs as
well as capacity building, but with an increased focus on the
HIV/AIDS pandemic in southern Africa and South America.
Access to and management of resources
•Access to available water resources is under increasing
pressure from population growth and an increasing prevalence
of drought. The efficient and effective use of water is a
priority, with a particular focus on recycling process water.
• High quality environmental studies associated with new
Challenges and opportunities
developments/projects are designed to ensure minimum
Looking ahead to 2007, our focus on the BHP Billiton Sustainability
impact on natural resources.
Challenges will include the following:
Fatal Risks
Zero Harm is based on having appropriate programs and systems
implemented, understood and adhered to by all. Continued
implementation of the BHP Billiton Fatal Risk Control Protocols and
behaviour based HSE programs for all employees will remain a high
priority for leadership. Application of these programs at all sites
will be maintained through self-assessments and cross-asset audits,
with continuous improvement the desired result of each audit.
Sustainable Community Development and Closure
• We are continuing to focus on the control and reporting of
emissions to improve air quality around our operations and
ensure transparency with our key stakeholders.
• In line with the Company’s Closure Standard, a review of
closure plans for all sites is well advanced, with the bauxite
mines in Suriname receiving significant management input. All
plans will be finalised in the 2007 financial year.
• Programs to improve cross-cultural awareness have
been identified as an opportunity to improve leadership
effectiveness in the operations, and will be tracked for wider
application in all operations.
• Our focus on human rights responsibilities and community
development activities will expand to ensure that our programs
are relevant to the communities in which we operate.
Greenhouse Gas Emissions
•Aluminium smelting, being energy intensive, will ensure a
continuous focus on energy efficiency to curtail cost and
minimise impact, and to achieve BHP Billiton Corporate HSEC
targets.
Occupational and Community Health
• We will focus on the continued application of the CSG
occupational health program for all employees, and
additional reporting metrics will be employed to improve our
understanding of health performance. The need to establish
maintenance and assessment programs to ensure sustained
monitoring of occupational health programs is key, as is skills
development in occupational health.
• The impact of HIV/AIDS on the smelters as well as the
communities in which we operate will continue to be a
threat into the future. For this reason an ongoing program
of AIDS education within the operations as well as in the
communities remains a high priority. In addition skills training
and succession planning is an important human resources
management function.
• Health pandemics such as Avian Flu now exist globally and
steps to mitigate this impact are being taken, and will remain
high on the agenda in the coming year.
< 21 >
health
The health and well-being of people is fundamental to the
success of our business. Understanding the potential health
risks inherent in our industry, establishing mitigation measures
and implementing programs to encourage healthy lifestyles are
key aspects of our journey towards Zero Harm.
FIT FOR WORK/FIT FOR LIFE
The Fit for Work/Fit for Life initiative is progressively being introduced
Company-wide to assist our drive towards Zero Harm. The initiative
seeks to promote a consistent approach to the management of health
issues in the work environment and supports efforts to address
lifestyle and community-related health issues.
During the past year, the BHP Billiton Aluminium CSG has focused
on implementation of drug and alcohol abuse programs, fatigue
management, travel health and medical assessment programs. The
challenge for the year ahead is to maintain the current programs
Fit for Work/Fit for Life program at Worsley promotes a total health approach
for all employees.
while focusing on the implementation of rehabilitation and
health promotion programs as well as development of plans for
ergonomic analysis and employee assistance programs.
exposure control plans are currently undergoing review to identify
improvement opportunities.
OCCUPATIONAL HEALTH
There are a number of health risks associated with the aluminium
industry that must be controlled in order to ensure the health and
safety of employees and contractors. To improve the identification
and management of these risks in a comprehensive and
systematic manner, an occupational health management strategy
has been developed and is being implemented by the BHP Billiton
Aluminium CSG operations.
During the past year, significant progress was made in the
following key focus areas.
• Development of protocols to align key health processes
across the operations
Protocols have been developed for key processes including
medical evaluation of fitness to work for mobile equipment
operators, people working at heights, people working in areas
where there is potential for exposure to respiratory hazards,
respirator users and for the classification and reporting of hearing
loss.
• Establishing exposure risk profiles for employees and
contractors
All operations have completed qualitative exposure risk
assessments and baseline sampling plans. The CSG exposure
baseline for employees and contractors is now 80 per cent
complete and will be finalised in all assets in the coming year.
Specific attention was given to understanding the potential for
exposure to pitch in the aluminium smelting assets. Exposure
baselines have been completed for this exposure agent, and
• Implementation of risk-based periodic medical
assessment programs for employees and contractors
Implementation of standard risk-based periodic medical protocols
has progressed well. Implementation of risk-based periodic
medical surveillance for employees is 94 per cent complete
against plan for this year. Mozal and BMS have successfully
integrated contractors into this process. Other assets will review
current contractor medical programs and incorporate them into
their plan for FY07 to ensure program alignment.
• Implementation of gap closure plans to further enhance
the work done in the area of respiratory health during the
previous year
While maintaining focus on medical assessments and
management of respiratory health issues, the smelting assets have
focused on prevention initiatives. Improvements in respiratory
protection programs, exposure prevention and education and
training initiatives have resulted in reduced respiratory health
impacts compared with previous years.
• Continued focus on hearing conservation programs
Noise surveys of plant and equipment have been completed at all
assets to identify and prioritise noise control opportunities. Personal
noise exposure baselines are nearing completion. Investigation,
classification and reporting of hearing loss has been standardised
across the CSG and aligned with international standards.
< 22 >
Occupational health: future challenges
Key objectives for FY07:
eradication program in southern Africa through our collaboration in
an extensive spraying program (see case study on page 27).
•Maintain focus on existing occupational health initiatives
• exposure baseline maintenance programs
• risk-based periodic medical assessment
• implementation of pitch exposure control strategies
• respiratory health management strategies
HIV/AIDS interventions
HIV/AIDS is a significant threat to the working population in
Africa. For example the HIV infection rate in the KwaZulu-Natal
region of South Africa is estimated to be between 35-40 per cent
of people of reproductive age. The infection rate at the Bayside
and Hillside smelters is substantially less than the regional
infection rate, and this is attributed to the effectiveness of the
HIV/AIDS intervention programs.
• Implement exposure control initiatives
• Implement Fit for Work/Fit for Life initiatives focusing on
occupational rehabilitation and health promotion programs
• Focus on on-going program development and sustainability by
strengthening occupational health networks, development of
Aluminium CSG health resources and regular assessment and
review against international standards.
Metrics to track the implementation of these initiatives have been
developed. Progress against these objectives will be reported
regularly by each operation.
COMMUNITY HEALTH
During the year we progressed our support of the Medicines
for Malaria venture to develop new, affordable anti-malarial
medication. Malaria is a significant health issue in southern
Mozambique and northern Brazil where our operations are located.
Medicines for Malaria was established through the World Health
Organisation. We have continued our strong support for the malaria
The intervention strategy is aimed at employees specifically and
the wider community in general, and comprises a number of pillars.
These include awareness, prevention, treatment and measurement.
Both Hillside and Bayside have contracted an external service
provider to monitor and implement appropriate treatment regimes
at no cost to the employee.
BHP Billiton opted for a holistic health care approach and provides
financial support to enable every employee to be a member
of a private medical aid. All such medical aids are required to
provide holistic treatment for HIV/AIDS, including provision of
antiretrovirals and symptomatic treatment.
HIV/AIDS is less of a threat at BMS and Worsley, although both
assets have information available at site health centres, and
information is communicated regularly by means of posters,
articles in newsletters, etc.
case study
A SIMPLE SOLUTION TO A DUST AND NOISE PROBLEM, Mozal
Since the beginning of production at the Mozal aluminium
smelter in 2000, Metal Ladle Lifting Beam (MLLB) testing was
being carried out in the maintenance workshop, generating
fluorinated dust and noise which was affecting the health and
safety of people working there.
Maintenance artisan Ramiro Roy lodged a request to the
Engineering department to design a device to mitigate the
impact of the testing process. This was unsuccessful and in
June 2005 Roy suggested his own solution, a filter made from
material recovered from waste. The project, dubbed ‘Roy’s
filter’, was approved by Mozal’s management team.
The following month the filter was fitted, tested and approved. The
dust collector was put together by using an empty 210 litre drum, a
60 mm diameter pipe with fitting and one 1 500 mm length of 60
mm diameter flex hose (all collected from the scrap bin), one tube
of silicone and one internal filter ordered from the warehouse.
The following benefits of the filter were noted:
•
•
•
•
•
No dust generation
No dust mask required during test
Contribution to good housekeeping
Noise reduced during test
Low cost solution.
The filter made from recycled materials reduces dust and noise.
< 23 >
hiv/aids campaign at bayside
Members of the management team ‘lead by example’ by undergoing an HIV test.
A number of initiatives were implemented at Bayside during
the past year to ensure a high level of awareness of HIV/AIDS
among employees and contractors. The purpose was also to get
as many of them as possible to know their status so that they
could manage their health effectively.
A Knowledge, Attitudes, and Practices (KAP) survey was
undertaken in May to assess the level of awareness among
employees and contractors. A KAP profile was built regarding
HIV related issues such as sexually transmitted infections,
sexual risk practices, disclosure of HIV status and the Lifeworks
health program.
Initiatives implemented at Bayside: A banner (above) and poster (below).
All Bayside employees and contractors were required to attend
presentations on HIV/AIDS, and this was followed by a Voluntary,
Confidential, Counselling and Testing Campaign. More than 75%
of employees and 30% of contractors participated.
The campaign ensures that employees and contractors have an
opportunity to know their HIV status and manage their lives
accordingly.
Employees who tested positive were immediately registered on
the Lifeworks program, which provides expert treatment and
care, and contractors were referred to local community-based
health organisations for further assistance. All information is
kept confidential.
A similar program is being rolled out at Hillside.
< 24 >
case study
Tackling HIV/AIDS in southern Africa
The communities neighbouring the Hillside, Bayside and Mozal
smelters – as well as employees and contractors working at the
smelters – are at high risk as HIV/AIDS infection rates in southern
Africa are among the highest in the world.
The smelters have comprehensive programs in place to tackle
the epidemic, targeted at both employees and contractors and
neighbouring communities where employees and their families live.
Below is a brief summary of two community programs.
Total control of Epidemic (TCE), Mozambique
The Mozal Community Development Trust (mcdt) opted to fund
the adpp, a local ngo, to run the community component of
Mozal’s hiv/aids program, called Total Control of Epidemic (tce).
The TCE program was designed to focus on communities by
mobilising the people themselves, so that they could gain
control of the situation and help each other to avoid the spread
of this deadly disease in their communities.
A field officer chats to community members about HIV/AIDS.
The TCE program was initially introduced into the Boane and
Matola areas, where the Mozal smelter is located. However due
to the importance and impact of the program in the community,
it was expanded in September 2001 to include the Maputo
area, in particular the Costa do Sol, Laulane, Polana Caniço and
Ferroviário das Mahotas villages.
Since inception, the following has been achieved:
• 200 000 community members have been educated and
sensitised to HIV/AIDS through training workshops,
industrial theatre performances, presentations, etc.
• 3 105 community leaders and influential people have been
trained to continue the work of raising awareness within
communities. This they do both formally and informally at
various community gatherings
• establishment of Voluntary Counselling and Testing Centres
Community leaders trained by the TCE receive HIV/AIDS awareness material
to be used in the community.
• establishment of HIV/AIDS support structures in the
community e.g. home-based care givers
Field officers get
ready to spread HIV/
AIDS awareness.
• establishment of information centres in schools, known as
Corners of Hope.
A key factor in the success of the program is that it has been
implemented as a ‘partnership’ with the community. Many
people within the community, including people in leadership
positions, have received training and have become HIV/AIDS
‘activists’ thereby communicating factual information about the
virus deeper into communities.
Ethembeni Care Centre, Richards Bay
The Ethembeni Care Centre in Richards Bay, South Africa, was
founded in 1966 by occupational health nurses from BHP Billiton
and five other major companies operating in the region. It
began in an abandoned farmhouse, initially catering for only six
patients. The original intention was for the centre to address
< 25 >
HIV/AIDS-related problems that the occupational health clinics
were experiencing.
In 2002, Ethembeni Care Centre relocated to Amangwe Village, a
community support complex set up near Richards Bay. In December
the following year, the centre opened a new 18-bed facility under
the auspices of the Zululand Chamber of Business Foundation.
As well as caring for HIV/AIDS patients, the new centre included
facilities for orphans and vulnerable children and began providing
community outreach, education and training programs.
Ethembeni Care Centre was established primarily for use by the
employees of local companies. The original business model was
based on the assumption that the centre would be self-sustainable
through the fees charged to the companies for patient services.
Over time, this assumption proved incorrect; news of Ethembeni’s
facilities and services spread by word of mouth and the clinic
began to admit patients from the wider community. Subsequently,
Healthcare professionals provide a wide range of services and community
Bayside and Hillside Aluminium took on the role of covering the
programs at Ethembeni Care Centre.
costs of patients who could not afford the fees, as well as being
the main funder for infrastructure works.
In mid-2005 the issue of sustainability was addressed by
registering the Centre as a Section 21 not-for-profit company. It
entered into a Service Level Agreement with the Department of
Health to provide operational sustainability for the centre.
Ethembeni currently comprises a 45-bed ward for adults and an
18-bed paediatric centre, and provides a range of other services
and community programs. A recent upgrade of the sewerage
infrastructure has increased capacity to a 200-bed facility,
providing significant scope for future development.
Services offered by the Centre include:
• in-patient care for adults and children
• outpatient services
• voluntary counselling and testing
• antiretroviral drug treatment administration
• tuberculosis and other infectious diseases management
• pharmacy services
• HIV/AIDS counselling
• social security assistance (applications for grants)
• antiretroviral drugs education program (e.g., drug literacy,
drug adherence and nutrition literacy)
• a ‘buddy’ system (replacing the traditional home-based
carer system).
Ethembeni has also entered into a Memorandum of Agreement
with Ngwelezane Hospital in northern KwaZulu-Natal, which
provides access to other services including ambulance, social
worker, physiotherapy, psychology, medical and mortuary
services.
< 26 >
case study
Business Joins African Effort to Cut Malaria
In Patrice Lumumba, on the outskirts of Maputo, a municipal worker sprays a house with insecticide.
Extracts from an article by Sharon LaFraniere, published in
the New York Times, June 29, 2006
Beluluane, Mozambique — With malaria spread across southern
Mozambique, executives at the international mining company
Billiton expected some workers to call in sick as it began building
a massive new aluminum smelter amid the cornfields here.
What they did not expect was that nearly one in three employees
would fall ill — 6,600 cases in just two years. And they certainly
did not expect 13 deaths, not after the company had built a
medical clinic, doused the construction site with pesticides and
handed out bed nets to thwart malaria-carrying mosquitoes.
"You can imagine, it was a huge disaster," said Carlos
Mesquita, the general manager. "We could not deal with that
level of absenteeism, and we would have had more fatalities. If
we didn't treat malaria we could not operate."
But confining measures to the plant, executives realised,
would not protect their 1 100 employees, or their $1.3 billion
investment, so long as malaria raged all around it, including in
the capital, Maputo, just 10 miles up the highway.
And so one of the world's biggest aluminum producers joined
in an exceptional partnership with the governments of three
countries and with other businesses to take on malaria
systematically across a broad region. Six years later, the scorecard
is in. Amazingly, malaria is losing. Wielding a combination of
new medicines, better bed nets, old-fashioned pesticides and
computer analysis to clean up the most afflicted areas, the
smelter and its partners in business and government have turned
malaria in one of its former hot spots into a manageable threat.
Photo courtesy of Joao Silva/The New York Times/Redux
The results are a rare bright spot in fighting a parasitic killer
that has thrived in the face of flawed, inadequate programs by
African nations and international organisations.
Last year a United Nations task force singled out the joint
effort, which today covers an area the size of Kentucky, as a
model for a continent that still has nearly a million malaria
deaths a year. The focused effort in southern Mozambique,
experts say, may point the way toward a broader and more
effective strategy.
Southern Mozambique's success, health specialists say, is
rooted in two facts: a realisation that malaria can be defeated
only if campaigns are taken on regionwide, and a commitment
by business and government to put up money and wage war
until the disease reaches a tipping point of retreat.
"This is the first time in Mozambique we have used the private
sector," said the country's deputy health minister, Avertino
Barreto. "The results have been terribly good."
Absences at the plant, once affecting nearly a fifth of the work
force, are down to 1 per cent. The plant has expanded and
doubled its production in the last three years. Even attendance
at the nearby primary school is up, officials say.
"We are not suffering from this disease any more here," said
Mr. Mesquita, a boyish-looking metallurgical engineer of 47 who
greets visitors in a worker's gray jumpsuit.
Malaria is estimated to shave up to 1.3 percent off Africa's
growth annually, a cost of roughly $12 billion a year. Health
officials here say it remains Mozambique's leading cause of
absenteeism and death, even with the advance of AIDS.
< 27 >
For executives in charge of the aluminum smelter, it was
obvious that the disease was far too prevalent to fight alone.
Andre van der Bergh, regional health and safety adviser for
BHP Billiton, the corporation formed when British-based Billiton
merged with Australian-based BHP in 2001, estimates that
malaria control issues ate up a third or more of his time until
the project got off the ground.
"You cannot operate as an island," he said. "I certainly learned
the value of partnerships."
The government was eager to cooperate. The smelter, known as
Mozal — short for Mozambique aluminum — was an important
symbol that Mozambique, after a devastating 17-year civil war,
was open for business to foreign investors.
Across the border, South African officials were worried that
malaria was scaring away tourists. South Africa and Swaziland
agreed to join Mozambique in 1999 to fight malaria in the region.
Seventy per cent of financing for the first three years came from
a coalition of 145 South African businesses, which contributed
$2.6 million, and BHP Billiton, which kicked in $1.2 million.
“Congratulations to you and your teams on the success of the
program, the strong effort to continue this important work and
sharing our lessons. While we manage for outcomes, not awards,
recognition like this helps to carry the message of what is possible
when governments, communities and businesses work together.”
BHP Billiton CEO, Chip Goodyear.
Hardly a family, farmer, small business or major investor is
immune to malaria's impact. Some companies, like in the sugar
cane and tobacco industries, have noted the smelter's success
and are now eager to imitate it, if for no other reason than it
makes rational economic sense.
Clinics throughout southern Mozambique were supplied with
more powerful medicines. The smelter alone distributed 6 141
bed nets — the newest of which repel mosquitoes for five
years. And house-to-house indoor spraying of insecticides
was begun, including the targeted use of DDT, which remains
controversial.
Fears that uncontrolled outdoor spraying of DDT would
contaminate ecosystems led many nations, including the United
States, to ban the pesticide.
Dr. Barreto of the Health Ministry argues that Mozambique
should stick to more expensive pesticides that are less risky for
the environment. But his superiors were swayed by the World
Health Organisation's approval of DDT's limited use for malaria
control and by South Africa's resumption of its use in 2000 after
a four-year break, during which malaria resurged.
Health surveys in the targeted areas in Swaziland and South
Africa show that the incidence of malaria plummeted to fewer
than five cases per 1 000 people last year, from as many as 66
cases per 1 000 in 1999.
Dr. Barreto said the government now planned to apply the
indoor spraying of pesticides throughout the country. One day
recently, a team of four sprayers hiked down the dirt paths
of a neighborhood in Patrice Lumumba, a settlement on the
outskirts of Maputo. At nearly every house, residents had a tale
of malaria.
In southern Mozambique, surveys show similarly huge drops.
Nearly nine in ten children who lived near the smelter were
infected in 1999. By last June, that had fallen to about two in
ten, according to the South African Medical Research Council.
Jacinto Maela, 38, a laboratory analyst, hauled buckets of corn
and water into his dirt yard. "This is very welcome," he said,
"because we suffer a lot from malaria. I have had it three times.
The last time, I was off work for three weeks."
The malaria control effort now covers an area that is home
to four million people and is expanding with the help of
$21 million in grants from the Global Fund to Fight AIDS,
Malaria and Tuberculosis. Still, it reaches only a fraction of
Mozambique's population, and health experts say a much
greater effort is necessary.
Tvete Dimande, medical chief of Maputo's health department,
said the campaign's impact was obvious at the clinics:
"Previously the hospitals were filled with malaria cases. People
were lying everywhere. Now that number is being reduced. They
should have done this a long time ago."
< 28 >
Safety
TRIFR 12 month rolling average
CIFR 12 month rolling average
12
7
6
10
5
8
4
6
3
BMS
Worsley Bayside
Total aluminium
Mozal
Target
Hillside
BMS
TRIFR is total recordable injury frequency rate
Worsley Bayside
Total aluminium
CIFR is classified injury frequency rate
Mar 06
Apr 06
May 06
Jun 06
0
Jan 06
Feb 06
0
Aug 05
Sep 05
Oct 05
Nov 05
Dec 05
1
Y22002
2003
2004
2005
Jul 05
Apr 06
2
2
May 06
Jun 06
Mar 06
Jan 06
Feb 06
Dec 05
Oct 05
Nov 05
Sep 05
Jul 05
Aug 05
Y22005
Y22003
Y22004
4
Mozal
Target
Hillside
The safety of our employees, contractors and the communities
in which we operate is an integral part of our business. Our
aspirational goal is Zero Harm. To this end we are seeking to
create a mindset and an environment where people believe
that it is possible to work injury-free – regardless of where
they are in the world, what role they undertake or in which
business they work.
All the operations comply with the stringent requirements of the
BHP Billiton standards and protocols with regard to safety reporting
and occupational health issues. These include regular Health, Safety
and Environment (HSE) meetings with representatives from all
levels of the workforce taking part. The outcomes of these meetings An employee wearing full PPE in a Bayside potline.
cascade upwards through management HSE reports and ensure
Behavioural safety initiatives
follow-up and good governance.
The behavioural safety process adopted at Aluminium CSG sites
focuses on safe behaviour through hazard and at-risk behaviour
SAFETY PERFORMANCE
reporting. This takes place through peer and leadership observations.
The Aluminium CSG has sustained its Total Recordable Injury
Frequency Rate with a TRIFR of 4.12 for FY'06. Through the year
A ‘NO NAME NO BLAME’ approach to peer observations
under review we continued to roll out the BHP Billiton Fatal Risk
encourages employees to look out for their colleagues, thus
Control Protocols, with compliance monitored through regular
positively reinforcing safe behaviour. These initiatives, followself-assessment as well as inter-company audits (see page 18). In
up corrective action and job safety observations ensure that a
addition behaviour-based HSE programs were enhanced with a
high level of safety awareness among employees is maintained.
sustained drive across all sites to report near miss incidents and
All employees and contractors are encouraged to be part of the
take appropriate action to rectify, reduce risk and raise awareness. process. The overriding objective of the behavioural processes is a
reduction in the number and severity of injuries, and good results
Reporting and investigating near misses
have been achieved at some sites already.
An important mechanism for raising safety awareness within the
Company is the reporting and investigation of near miss incidents.
Contractor management
These are incidents which did not result in injury, but which
Managing contractors and their activities more effectively across
nevertheless occurred as a result of at-risk behaviour and had the
the various sites has been identified as a significant opportunity
potential to cause injury. Our objective in investigating these near
to improve safety. The objective is to ensure that standards and
miss incidents is to identify the root causes and put systems in
procedures adopted by contractors are consistent with the BHP
place to prevent them from occurring again. Of note is the fact that Billiton standards, and to ensure that site-based policies and
Aluminium CSG sites are reporting monitored near miss incidents.
procedures are well understood. To this end an ongoing initiative
Monitored incidents refer to activities over which BHP Billiton has a is in place to improve the contractor management skills of all
measure of influence, but which are not subject to Company HSEC
supervisory management through training. This has resulted in
standards, and which cannot be supervised or enforced.
improved contractor safety performance.
< 29 >
case study
contractor safety initiatives at bayside, mozal & worsley
Improving contractor management and safety at Bayside
Over the past year, Bayside has undertaken major reviews of
contractor performance and controls, and the manner in which
contractors are managed. This review has resulted in a greater
focus on contractor safety at Bayside.
Previously contractor performance was measured using basic
criteria such as safety observations performed and near misses
reported. However greater participation from contractor teams
working on site was required in order to increase safety awareness.
Contractor performance systems were customised to enable
the contractor management team to focus on each contractor
individually. The result was a more focused approach to
their site safety, which is reflected in the improved safety
performances over the past twelve months.
Contractors busy at Bayside.
Contractor management has focused on the following aspects:
Contractors Overall Categories
June 05
June 06
• Permits
TRIFR
7.03
4.89
• Each contractor has been informed of their safety
performance in terms of TRIFR, CIFR and FAFR in 12-month
and three-month rolling averages. This is done on an
individual and group basis
CIFR
2.46
2.28
• Site inspections are performed daily by contractors'
supervision
• Team input into risk assessments and the Job Safety
Analysis (JSA) process
• Contractors have to update their monthly risk assessments,
and Bayside has started tracking this via a data base. JSAs
are tracked in the same manner
Management Initiative rolled out at Bayside and Hillside
• FRCP requirements have to be strictly adhered to.
The contractor management team holds monthly meetings with
contractors to discuss and highlight changing or additional
contractor requirements, trends and problems emerging in the
plant. Examples include condition of tools being used on site
and vehicle inspections. Bayside has also started sharing free
learnings from other BHP Billiton sites.
• Contractor management has also tested the new JSA system Future Improvements
Bayside will be introducing ALUTRAC, a new site access control
to go hand in hand with the permit and risk assessments
system. This will allow Bayside to define contractors in terms of
being done. This was based on the Contractor Safety
< 30 >
four categories (A, B, C and D), and to identify where in the plant
they are working. The access badges that will be issued will have
the contractor’s skills, inductions and licenses displayed, enabling
Bayside to check if the correct person is performing the job.
Tighter controls around inductions, license renewals, number
of vehicles allowed on site and refresher training for company
employees will be built into the system.
Contractor management at Mozal
Contractor safety management is seen as an essential component
of Mozal’s overall health, safety and environment strategy. A
strategic framework has been designed to ensure that Mozal’s
expectations and aspirations for contractors’ HSE performance
are clearly identified and that all contractors are aware of their
contribution to the overall HSE performance.
Contractor safety award, Mozal.
The strategic framework is divided into two risk profiles (Risk
Profiling and Risk Management) and has five basic components:
pre-qualification, tender and award selection, access and
activation, execution and control, and performance management.
Mentoring and coaching
program for contractors.
Each of the components in turn is broken down into specific
objectives, the method of achieving the objectives, and the
measures to establish if the objectives are attained. The risk
profiles ensure a single point of accountability, safe work
execution and stable industrial relations climate, promote a
reduction in vendor turnover and improved vendor selection.
The entire framework underpins the development of longterm relationships and facilitates the sharing of learnings and
completion of projects.
Achievements of the strategic framework
Contractor forum
A contractor forum has been established to officially represent
contractor companies in formal communications with Mozal.
It is responsible for ensuring that members’ issues are raised
and addressed in a timely fashion through a collective process.
Topics range from contractual issues to HSEC matters.
Uniform contractor medicals
Prior to working at the Mozal plant, each prospective contractor
employee is required to undergo a pre-employment medical
examination to ascertain their fitness for work. To ensure a
uniform approach, the decision as to whether a person is fit or
unfit is made by the on-site medical practitioner.
Mentoring
A mentoring and coaching program for all contractor employees
in leadership roles has been established.
All contractor employees are also integrated into the Mozal
training systems. This has raised their awareness of employee
responsibilities and helped motivate interest and pride in their
day-to-day activities.
Also, contractor recognition programs are held annually.
Lagging indicator – measuring success
The positive impact of the strategic framework is reflected in
the lagging indicator Total Recordable Injury Frequency Rate
(TRIFR) for contractors. At 30 April 2006, the TRIFR (12-month
moving average) had shown a 27 per cent improvement. This
in itself has contributed to the improvement in Mozal’s overall
safety performance.
Future initiatives and challenges
New Employee Development program
The strategic framework provides guidelines for a mandatory
new-hire identification program which is designed to help new
employees to avoid incidents and injuries and to enhance their
acclimatisation to Mozal’s HSEC culture.
< 31 >
Workplace injury trends indicate that
approximately 40 per cent of injuries
occur to new-hire employees with
less than three months on the job.
Early identification and correction
of unsafe work habits will help to
promote a safe and healthy workplace.
An experienced HSE coordinator or
owner/sponsor will be allocated to each
newly hired and newly assigned field personnel to act as a
mentor for 30 days. Mentor training will be available to promote
ownership and accountability of this key initiative.
• reviewed site procedures
• defined HSE management competency requirements for key
contract management positions
• developed a competency-based training course, and
• developed systems and procedures needed to support the
course.
A number of workshops were held on site and supporting
documents developed. A behaviour-based safety questionnaire
was completed by all participants.
Contractor sponsor appraisals
Mozal aims to implement sponsor appraisals, where the sponsor
must stipulate the current status of their safety performance
and future challenges. This initiative is to take place on a sixmonthly basis and will highlight best practices and ensure
learnings are shared across the Company and its contractors.
Contractor management project at Worsley
A contract management project at Worsley Alumina has helped
improve the safety performance of contractors on site.
The development of a special competency-based course has
seen a reduction in the Total Recordable Injury Frequency Rate
(TRIFR) from 11 to 5, which means more productive work time
and less time spent on investigations and reporting.
A project team was set up in October 2004 with the brief to
develop a competency-based course, deliver the course, assess
its impact and share the results with BHP Billiton operations.
The project was initiated because different areas of the
operation were not aligned in their safety procedures. As a
result, there were several different standards across the site.
Statistics over the 12 months period prior to the project
had shown that, despite a number of initiatives, the safety
performance was not improving.
A pilot course was tested in December 2004 – and following
modifications – an updated course was rolled out in March
2005.
The effort is supported by performance measures which assess
the participant’s competency at the time of the course, and
again three months later.
Mentors are available in the workplace to help improve
competency.
A series of videos were produced and filmed on site to support
the course content and to give the course a local flavour. These
videos were shared with other assets and incorporated into the
corporate course.
The Principles of Corporate Contractor Safety has now been
delivered to 200 contractors on site. Key contract management
positions have been identified and 29 contract coordinators
have been audited to assess their competency.
The competency of Worsley employees directly supervising
contractors has also been assessed.
The details of the Contract Management Project have now
been provided to other BHP Billiton assets. A modified course
and guidelines have been developed which can be applied to
different sites.
The Contractor HSEC Management document:
• provides a framework for sites to create their own course
The situation was aggravated by the presence of a large number
• helps sites to identify gaps in their contractor management
of extra personnel on site due to construction activities.
systems
Worsley uses more than 200 contract companies – ranging from
• provides templates for use for some elements of a
large scale, planned, routine work to breakdown, emergency
contractor management system
and one-off tasks. This made it difficult to develop a single set
• provides a framework/template to enable training to be
of rules as well as a course that would suit all needs.
competency based
An information search within Worsley Alumina and across the
• encourages sites to take responsibility and action for
greater BHP Billiton organisation found that there was a lack of
implementation of the 41 point checklist and HSEC
information in this area.
Management Standards, and
In order to develop a course outline that would fill this need,
the project team:
• provides references to resources to assist sites along the
journey.
• reviewed BHP Billiton Corporate Contractor Safety Course
materials
The competency element for key positions ensures the project is
sustainable.
< 32 >
case study
Mozal's journey to zero harm
A tragic accident occurred at Mozal in June 2005 in which an
employee was killed when he was struck by a mobile crane.
Following an investigation into the incident utilising the BHP
Billiton Incident Cause and Analysis Methodology (ICAM), the
recommendations of the investigating team were carefully
analysed by Mozal’s senior management team to determine
the conditions and behaviours that the recommendations were
addressing, and to determine the root causes e.g. language
barriers and local cultural characteristics.
A list of actions was compiled for each recommendation and a
senior manager was allocated responsibility for each action. A
full-time Operating Excellence project leader was deployed to
oversee the completion of the project and the coordination of
the various activities. Regular review meetings have been held
to track actual progress against target and to refine the action
list, thereby ensuring the completion of actions by the due date.
The project has a four-pronged approach: awareness,
empowerment, discipline and visible leadership.
Awareness: an intensive drive was implemented to educate
employees and contractors through safety-related training
modules, including risk assessment and fatigue management
modules based on the Company’s Fatal Risk Control Protocols.
Empowerment: Employees and contractors have been
empowered to stop any work that they consider to be unsafe
until the risks have been eliminated. This has been done
through the introduction of a system of ‘red cards’ that are
signed by the General Manager. These can be used by any
employee or contractor to stop an unsafe job or act. The system
has been successful several times in stopping unsafe jobs and
behaviours, thereby avoiding safety incidents, and has become
institutionalised.
Pedestrian walkway constructed as a safety measure.
Discipline: a set of five basic rules has been implemented that
are non-negotiable. Breaking any of these rules is considered
to be a dismissible offence. Further to this, more discipline and
rigour has been put into incident investigation and reporting.
Learnings are shared within the organisation and with
contractors.
on a personal level. To date, three such rounds of
communications have been undertaken, covering a range of
topics from the red card system to HIV management.
Challenges addressed
The primary challenge in the setting of systems and rules has
been to take into account the generally reticent nature of the
local people. This was identified as a key contributor to the
fatality. The crane operator had recognised that poor visibility
constituted a risk, but as he had been instructed to complete a
task he continued to drive the vehicle.
Visible Leadership: there has been greater focus on leadership
visibility, for example:
•A two-hour period has been defined during which all team
leaders must be on the shopfloor. This gives the leaders an
opportunity to assess any unsafe behaviour and conditions
that exist in the plant.
•Middle and senior management visit the plant after
hours (weekends and between 10.00 pm and 6.00 am) to
establish safety behaviour and ensure an understanding of
operational conditions.
• One-to-one delivery of HSEC communications by leadership
enables team leaders to address employees and contractors
Introduction of the red card system was a key strategy in
addressing this challenge. Use of the red card has been widely
encouraged and promoted in the plant media, to the point
where all employees and contractors on site are aware of the
function of the cards and carry them at all times.
< 33 >
Effectiveness of the project
The roll-out of the project has resulted in the following:
• the implementation of pedestrian/vehicle separation measures
• an improvement in incident reporting and the quality of the
investigations
• greater integration of the contractors into the Mozal HSEC
systems
• a marked increase in HSEC leadership visibility
• a significant decrease in the Total Recordable Injury
Frequency Rate (TRIFR) 3-month moving average, from 5.13
to zero by December 2005 (see graph on previous page).
In summary, the project has increased the focus on safety
at Mozal and has encouraged behavioural change that is
improving safety performance.
Barriers in mobile equipment workshop have been installed for safer
pedestrian movement.
case study
partners in safety: bayside Reduction B & c
Bayside Reduction B and C Potrooms introduced an initiative in
conjunction with contractors (our Partners in Safety) in order to
improve safety performance.
35
30
25
The project began with a half-day meeting at which contractors
were asked to identify any shortcomings that needed to be
addressed e.g. performing risk assessments on the current
working instructions and the re-training of relevant staff with
regards to the working instructions. Contracting company
owners were present at the meeting.
20
15
10
5
0
Total record, injuries First aid
TRIFR 3 months
FAFR 3 months
TRIFR 12 months
FAFR 12 MMA
CIFR 3 months
CIFR 12 months
Every Tuesday a structured meeting takes place at which the
current week’s safety performance is discussed. The previous week’s
behavioural safety observations, near miss reports and the current
month’s work stoppages – for both Bayside teams and contractors
– are displayed and discussed. The previous week’s minutes are then
used to determine which action items are outstanding.
At the conclusion of the meeting, line management does a onehour walk-about on the shop floor. Mentoring and coaching
of our Partners in Safety is done during this time. In addition
leadership team members conduct scheduled walkabouts twice
a week after hours.
The department manager holds individual meetings every six
months with contracting company owners and the site manager/
supervisor. Audits are also done at the contractors’ premises.
Every leadership member and contractor company conducts one
work stoppage per month; in addition a combined six-monthly
work stoppage is held and led by the manager. During these
stoppages all risk assessments and SOPs are reviewed and
changed where necessary. The new and old SOPs as well as risk
assessments are discussed with the relevant teams.
C & D Category Contractors
C & D Category Performance June 05
June 06
Percentage
FAFR
27.78
18.30
66% reduction
CIFR
3.09
2.51
81% reduction
TRIFR
6.17
3.95
64% reduction
Achievements to date:
• reduction B and C have improved their safety performance,
and have worked one year without a classified injury for the
first time
• current CIFR is 0 and TRIFR is 0.82. The aim is to achieve a
TRIFR of 0 by September 2006
• correct implementation and usage of safety systems by all
• getting commitment to the safety effort by both employees
and contractors, and involving the contractor company
owners in the safety initiative
• improved management visibility on the shop floor
• diligent reporting of potential level 4 incidents and timeous
actioning.
< 34 >
case study
Reducing road transport risks at Mozal
The Mozal aluminium operation is located approximately 17
kilometres west of Maputo, the capital of Mozambique. Mozal’s
raw materials and finished products are transported on public
roads through densely populated suburban areas. Unsafe driving
habits and low levels of traffic law enforcement contribute to a
generally poor safety culture within the community.
Road safety initiatives
Our transport vehicles travel between the smelter and harbour
terminal on a 24-hour basis. Drivers contend with numerous
risks, many of which are beyond their direct control and include
pedestrians, animals, high traffic densities, poorly maintained road
infrastructure and the unsafe driving habits of many road users.
The vehicle fleet consists of 17 truck haulers and trailers that
together complete an average of 148 000 kilometres per month.
Despite the significant road transport risks, the fleet completed
over 800 000 incident-free kilometres in the six-month period
from 1 September 2005 to 28 February 2006. In addition, zero
incidents were recorded over the extremely high-risk festive
season in December 2005; an outstanding performance when
compared to the last week of 2004, when two raw materials
vehicles overturned.
This achievement is the result of numerous road safety initiatives
and programs implemented under the Company’s guidance.
Strategic partnership with specialist supplier
In February 2005, Mozal terminated a raw materials transport
agreement due to unacceptable safety performance by the
supplier, and entered into a long-term agreement with a specialist
logistics company, Strang Rennies Mozambique Consortium
(SRMC), which has an excellent record of safety performance and
is an ISO 9001 and OHSAS 18 000 accredited company.
36-tonne interlink alumina trailer.
Zero alchohol and drug tolerance
All drivers are required to report their drug and alchohol status
prior to the start of each shift. Alchohol testing (breathalyser
tests) at the beginning of each shift is mandatory.
Increased vehicle payloads
In December 2005, Mozal purchased six alumina trailers with a
capacity of 36-tonne legal payloads. Commissioning of the new
trailer fleet has reduced the required number of daily trips by 10
per cent and has enabled a further reduction in the time spent
by fleet vehicles on public roads.
Random speed checks
Random speed tests are conducted in various speed zones, both
inside Mozal premises and on public roads, to ensure drivers
comply with speed regulations. In addition, truck haulers have
been fitted with speed governors to ensure that the vehicles
cannot exceed a speed of 60 kilometres per hour.
Noise reduction
During the environmental impact assessment for the Mozal
project, vehicle noise levels were identified as being potentially
disturbing to the community. As a consequence, all truck haulers
have been fitted with silencers, limiting the engine noise to less
than 85 decibels. Additional noise reducing measures have been
implemented by disabling vehicle exhaust brakes and erecting
sound absorbing walls at specific high-noise zones.
Andrew Strang, Director of SRMC, comments that the success
of this venture with Mozal is largely due to the mutual cooperation between both companies to achieve the common
strategic objective of Zero Harm.
Behavioural safety observations
Both SRMC and Mozal employees perform frequent behavioural
and job safety observations. Rostered shifts that are considered
high risk, such as weekend night shifts and ‘red flag’
nightshifts after pay days, are specifically targeted for in-depth
behavioural safety audits by SRMC management.
Driver fatigue management
Driver fatigue was identified as the root cause of a number of
prior incidents involving the Mozal fleet. In cooperation with
SRMC, a fatigue management system was implemented that
includes:
• minimising transport operations during high-risk times (raw
materials transport is stopped daily between 3.00 am and
6.00 am)
• in-depth driver training and awareness programs on
methods to minimise and combat fatigue
• visual fatigue systems for supervisors to control driving hours
• start-of-shift fatigue checklists
• analysis of driver sleeping patterns and ‘at risk’ behaviours
(individuals who exhibit high-risk behavioural patterns are
counselled and advised on corrective measures).
Outcomes
The road safety initiatives implemented in partnership with
SRMC continue to deliver excellent results. Further initiatives
that are under development or investigation include automated
vehicle management and a tyre management system.
< 35 >
case study
BMS safety initiative focuses on fatigue
Fatigue, especially among operators in the BMS mining
operations, has been identified as a safety risk, and an initiative
has been launched to address the issue.
Contractor mobile equipment operators were involved in
discussions around issues relating to fatigue. The labour union
was invited to participate to ensure their support and buy-in.
After a thorough review of the existing BMS fatigue
management procedure, a personal fatigue management
checklist was adopted. A new wave of training was provided in
fatigue management. These sessions were presented primarily
in the local indigenous language, Sranan Tongo, to ensure
effective communication.
BMS Coermotibo took the lead by establishing a formal monthly
fatigue management team meeting tasked with formulating an
action plan to improve fatigue management. Training sessions
were conducted in which the effects of stress, alcohol and drugs
(including prescription drugs) were addressed.
Regular rest periods for operators during shift time were made
mandatory. A specially designed air-conditioned rest room
furnished with simple, light-weight beds was installed in the
Spanhoek area of BMS Coermotibo mine. A mandatory
90-minute break was established from 3 am to 4:30 am, during
which time operators could take a revitalizing nap. Work is
resumed only after guided physical exercise.
Operators during their nap.
The personal checklist was found to be a useful tool, and a Stop
Fatigue card was produced, with a strong slogan in Sranan Tongo.
The new approach has had an unintended benefit in that
communication between operators has improved due to
increased interaction before and after rest periods.
As part of the review process, some additional issues that have
an impact on fatigue were identified, and need to be addressed,
eg condition of equipment, salary review (some people have
We only take the steering wheel again after practicing physical exercise
together.
second jobs), and haul road design.
< 36 >
case study
Safe Hands Project at Worsley
An intensive review of injury data at the Worsley Alumina
refinery revealed a high rate of injuries to fingers and hands.
In response, a Safe Hands Project team was established to look
at ways to reduce and eliminate the causes of these types of
injuries.
Six Sigma yellow-belt teams were set up to examine closely
the issues in the refinery process areas, the Power House, Raw
Materials and the Overland Bauxite Conveyor.
Each team consisted of maintenance, operations and contractor
representatives. The yellow belts heading up each of these
teams formed the make-up of the black belt team, a structure
used for the first time at Worsley.
Each step of the process was conducted via black belt team
meetings and duplicated in each of the yellow belt team
meetings. This ensured that the greatest involvement and
coverage of personnel on site was achieved. Some 40 people
were involved in all of the teams across site.
The initial data collected did not lend itself to anything
conclusive. Instead the team moved on to identify root causes
using standard Root Cause Analysis (RCA) techniques. Part of
this meeting was spent identifying possible quick wins to keep
up the momentum of the project.
• create a Hand Safety Awareness training package, and
• distribute posters and pocket cards to identify the correct
gloves to be worn for specific hazards.
There was significant input across the refinery. The project team
gained a wide range of suggestions and ideas from all levels
of the organisation which were absorbed into the approach to
hand and finger safety.
The focus of the project was also helped by analysing the
surveys and trials conducted, and then slicing and dicing this
information in the data gathering phase and progressing with
the results.
The outcome of all the RCA sessions was a list of 93 root
causes. The Black Belt Team came together to look at the root
causes and discuss how they were raised in the separate forums.
This led to a large multi-voting exercise to narrow the list down
to the top 10 root causes.
Surveys of the workforce were conducted to validate the root
causes.
From this information, a range of solutions were proposed:
• new style and size range of gloves
• improve the incident reporting system
• improve communication of key learnings from injuries
• create a Hand Protection Policy for Worsley – mandatory to
carry gloves at all times
The Hand Protection Policy came into effect in December 2005.
The Hand Safety Awareness training roll-out began in November
2005 and now forms part of the Core Module Units for Worsley
employees.
Already behavioural improvements have been observed with
more people wearing/carrying gloves, and a general heightened
awareness of hand safety across site. The heightened awareness
has also encouraged employees to report all minor hand and
finger injuries, and this is helping in ongoing analysis for further
improvement.
Key success factors for this project related to the ‘A’ side of
the methodology – gaining employees’ acceptance. This was
achieved via a number of methods:
• Weekly newsletters
• Safe Hands video
• Helmet and door stickers
• Stencils on known high risk hand and finger injury sites, and
• Promotion of continuous improvement ideas.
Learnings from this project have been widely shared across BHP
Billiton. Presentations have been given at the Australian Six
Sigma Conference and the Iron Ore Coaches Conference. Many
people from other sites have requested information from the
project and this information has been shared willingly.
< 37 >
environment
The Aluminium CSG’s objectives for environmental
management are outlined in the BHP Billiton Sustainable
Development Policy, which states that we will:
• strive to achieve leading industry practice
• meet or, where less stringent than our standards, exceed
applicable legal and other requirements
• set and achieve targets that include promoting the efficient
use of resources and reducing and preventing pollution
• enhance biodiversity protection and assess and consider
ecological values and land use aspects in our decisions.
LAND
The total footprint of the Aluminium CSG’s operational sites is around
586 000 ha of which 99.9 per cent is used for mining and refining
purposes. The mining sites have land management plans in place to
guide decisions on land use. A broad range of issues are addressed in
these plans including ecosystem and biodiversity management.
In addition the sites are actively seeking the best options for
rehabilitation and determining post-closure land use, consistent
with agreed closure criteria.
A total of 190 ha of mined land was rehabilitated in the year
under review: 112 ha at Worsley and 78 ha at BMS.
Hillside Aluminium, Richards Bay.
Closure planning
A Company-wide Closure Standard applies to all BHP Billiton
controlled operations. The Closure Standard requires compliance
with relevant legislative and regulatory requirements as well as
BHP Billiton’s Charter and Sustainable Development Policy.
While all sites are currently in the process of reviewing their
closure plans, those for BMS have already been updated in
accordance with the BHP Billiton Closure Standard.
Many BHP Billiton operations have existing closure plans that have
been developed to satisfy regulatory or internal needs. The Closure
Standard requires that each operation reviews existing plans to
ensure full compliance. These reviews take place over a two year
period and include a rigorous assessment of site specific closure risks
and opportunities, identification of risk management actions and
development of reasonable and accurate closure cost estimates.
Closure planning occurs throughout the lifecycle of the operation,
starting with exploration and development of a property and
continuing as long as necessary. The Closure Standard requires
operations to calculate the cost of closure and to make provision
for that cost from the early stages of operation.
The provisions for reclamation and decommissioning are
calculated by discounting the expected expenditures to their
net current value. The estimated total site rehabilitation cost
(undiscounted and in today’s dollars) to be incurred in the future
arising from operations to date, and including amounts already
provided for, is around $1,2 billion.
At 30 June 2006, $455 million was provided for reclamation and
decommissioning costs of operating sites.
BMS established a special team to perform this task to ensure
the appropriate mix of knowledge, skills and experience. This
included representatives from the HSE department, people with a
Planning, Operational and Project management background, and
independent consultants. Extensive stakeholder consultation was
held at local and national level during the planning process, and
risk workshops were held to establish risk-based cost estimates
for closure plans.
The BMS Lelydorp III mines are expected to close in 2007 and
review of closure plans will be stepped up to twice a year so that
the latest information derived from on-going research and data
collection can be taken into account.
While closing one operational area after 65 years of mining by
BMS and 90 years by Suralco (Alcoa), the BMS/Suralco Joint
Venture is opening new mines on the eastern side of the Suriname
River. This makes it possible to address Human Relations and
other organisational issues in advance of closure.
Although mining operations in Coermotibo in East Suriname are
scheduled to continue until 2011, closure-related activities – such
as revegation of mined out areas – are occurring simultaneously.
< 38 >
Tree nursery at Coermotibo, Suriname. The trees are used for rehabilitation of mined-out land.
Biodiversity at BMS
The BMS Bakhuis exploration concession currently being evaluated
by BMS is located in a high biodiversity region, adjacent to the
Central Suriname Nature Reserve, a World Heritage Site.
The BMS leadership team has demonstrated its commitment to
Zero Harm by giving its full support to a high level assessment
of environmental risks prior to investment and development. To
this end, BMS is conducting an Environmental and Social Impact
Assessment (ESIA) of its Bakhuis bauxite project in the interior of
Suriname. An independent consultant is managing the ESIA and
has undertaken intensive baseline studies of existing conditions.
Like most of Suriname, Bakhuis is a high biodiversity area, so
particular emphasis has been placed on understanding and
cataloguing flora and fauna, as well as water resources and
aquatic ecosystems. As part of these studies, a camera trapping
program to observe the fauna of the exploration concession has
been running for nearly two years (see case study on page 53).
Consultation with local communities has been taking place
since the inception of the ESIA and will continue throughout the
process, which is expected to be completed in late 2007.
During FY2006, separate ESIAs have been conducted for the
Caramacca, Nassau and Coermotibo deep-seated exploration
programs.
Worsley Mining lease
Worsley mining lease covers state forest and farmland along the
eastern edge of the Darling Range.
The original lease covered 11 300 square kilometres. Over the
past 20 years, through negotiations with the state government,
Worsley has been relinquishing areas which are not scheduled for
mining. The release of these tenements – which covers about 70
per cent of the lease area – has allowed for the establishment of
conservation areas and long term forest management programs.
Detailed flora, fauna and heritage studies have been undertaken
in large portions of the remaining lease area.
Forest areas that have a high conservation value are excluded
from mining plans.
Key issues for management during the mining process include:
•
conservation of significant vegetation communities
• sustainable use of groundwater resources
• protection of dieback free forest within the Saddleback Timber
Reserve (STR), and
• management of noise and dust.
Land rehabilitation strategy at Worsley
Comprehensive biological baseline studies have been conducted
in the Worsley mining lease area since 1980. Information gathered
during these studies is used to assess potential environmental
impacts and to develop and refine rehabilitation plans.
The rehabilitation process is based on rapid revegetation of
disturbed areas – usually within 12 months of mining.
The broad objective of rehabilitation in forest areas is to
regenerate a stable forest ecosystem with flora characteristics
compatible with the eastern jarrah forest. Specific goals include the
maintenance of recreation, conservation, timber production, landscape
< 39 >
and hydrology values, and to minimise impact on undisturbed areas.
Between January and June, all areas are seeded with native seed
from more that 150 species of trees, legumes, understorey and
groundcover plants collected from the local flora provenances.
In June, seedlings of recalcitrant species – those difficult to return
through topsoil management or by broadcast seeding – are
planted. Rehabilitated areas are fertilised by helicopter in August.
Success criteria include the establishment of 500-700 stems
per ha of tree species for the total area rehabilitated, and the
establishment of at least two native plants – one legume and one
non-legume – per square metre.
For farmland areas, the general objective is to return a stable
agricultural system. This includes creating a compatible landscape Rehabilitation land at Alumar, Brazil.
and restoring land capability and productivity levels. Rehabilitation
plans are prepared in consultation with the landowner.
A fence has been built along the corridor to protect more than
Rehabilitation over the past 12 months has taken place in 113ha of 70ha of native vegetation from degradation by livestock grazing.
state forest and 8ha of agricultural land.
In 2005, work began on the revegetation of 29ha of existing
pasture within the corridor. Livestock has been excluded and weed
control works were undertaken in preparation for direct seeding
with local native species in 2006.
Flora and fauna conservation at Worsley
Worsley’s flora and fauna conservation strategy aims to minimise
impacts through management measures, including:
• support for research into rehabilitation and diversity, and
Biodiversity research at Worsley
Worsley has continued to support in-house and external research
programs aimed at achieving continuous improvement in
environmental management. Most of these programs are designed
to enhance rehabilitation techniques and are coordinated through
or in conjunction with the Biodiversity Conservation Centre (at the
Botanic Gardens and Parks Authority), the Minerals and Energy
Research Institute of Western Australia, the CSIRO, universities (The
University of Western Australia, Curtin University of Technology,
Murdoch University) and in collaboration with industry partners.
• workforce education and training.
These studies and programmes include:
A study to assess the success of recolonisation of fauna species in
rehabilitation areas began in the spring of 2002. The study found
that 90 of the 104 vertebrate species known to occur within the
Saddleback state forest were present in rehabilitated areas.
• examination of processes involved in the establishment of a
range of species to be used for rehabilitation from seeds and
cuttings
• detailed flora and fauna surveys before mining
• identification and protection of areas of high flora and fauna
conservation significance
• establishment of wildlife corridors
• prompt rehabilitation of land and development of fauna
habitats
• monitoring of vegetation diversity and fauna populations in
rehabilitated areas
In 2003, a plan was developed to establish an enhanced wildlife
corridor between the Saddleback Timber Reserve and George
Forest Block.
• investigating techniques to deter kangaroos from rehabilitated
areas until the plants are large enough to tolerate grazing
• better seed selection and planting methods to improve reestablishment of Macrozamia riedlei (a forest palm) which is
common in forest areas
• topsoil-sieving trials to quantify the potential benefits of
this technique, resulting in increased floristic richness of the
vegetation
• examination of the effect of fertiliser timing, placement and
type on vegetation in rehabilitation
• evaluation of the population of invertebrates as an indicator
of success of rehabilitation
• research into the control and management of the pathogen
Phytophthora cinnamomi which causes dieback in forest areas
of the Worsley operations.
A pigmy possum monitored during Worsley's forest rehabilitation activities.
In April 2006, Worsley Alumina was given government approval
to expand its operations to 4.4Mtpa. This will require the
exploitation of new mining areas, increased bauxite transport, an
< 40 >
upgrade of the refinery and upgraded port handling facilities.
A large scale trial will be established to evaluate the rehabilitation
options.
Expansion into new mining areas is conditional on the results
of biodiversity studies and development of environmental
management plans, rolling 10-year mining plans and the
identification of a transport corridor.
Alternative uses for residue are being investigated, including:
soil amelioration, construction, acid mine drainage and water
treatment.
To date, biodiversity investigations within the expansion areas
(predominantly to the north of the existing Boddington bauxite
mine) have included preliminary flora and fauna baseline studies.
Treatment and alternative uses of residue are also being
investigated by the Australian Aluminium Council, of which
Worsley is a member.
Future studies will look more closely at specific issues raised
during the EIA process, and will also seek to integrate the various
aspects of biodiversity (eg. flora and hydrology) to increase the
understanding of the natural ecological processes involved in the
local ecosystems. This will result in a more informed assessment
of the potential impacts of expanded mining operation.
WATER
Mining and refining
Mining and refining activities are responsible for the bulk of the
water consumed within the Aluminium CSG.
Water is used at the Boddington bauxite mine mainly for dust
suppression.
The biodiversity investigations will be undertaken over a number
of years, and will culminate in a formal public report. The report
will require government endorsement before any new mining or
construction activities begin.
About 10Ml was used for domestic and drinking use during the
year, compared to 250Ml used for dust suppression.
A water conservation team has been set up at the mine to find
ways of reducing water consumption, focusing on mining activities
and community campaigns. One project involved the installation
of an evaporation cover on a dam in February 2006. It will save
approximately 5Ml of water a year by reducing evaporation.
BAUXITE PROCESSING
residue management
During the digestion stage of bauxite processing, alumina is
dissolved into the liquor stream while other components form
solid residues, commonly known as red mud (bauxite residue).
The water management system at the refinery is designed to
contain, separate and recycle water used during the refining
process. Recycled water constitutes close to 50 per cent of the
water used for refining.
At Worsley, disposal areas lined with clay and surrounded by batters
or embankments have been constructed to store this residue.
Each red mud containment facility is designed to collect residue
liquor via decant and a network of slotted underdrainage pipes
installed above the clay liner. Collected residue liquor is returned
back to the process.
An intensive campaign to encourage employees and the general public
to control water consumption was conducted at the Boddington
bauxite mine. The successful ‘Slow the Flow’ campaign has been
nominated for a Golden Gecko environmental award in 2005.
Each disposal area also has a network of pipes to maintain
separation of the natural groundwater from water seeping through
the bauxite residue. This groundwater drainage system collects water
from under the clay liner and carries it to the fresh water lake.
Regular monitoring showed no change in the fresh water quality.
Dust is one of the main environmental issues associated with the
disposal areas. Current strategy is to increase surface roughness
and to lower surface wind speeds by means of breaking up the
residue surface, thus allowing for shorter drying times.
Currently Worsley’s Drinking Water Safety Management Plan is
regarded as leading practice within BHP Billiton. The purpose of
this document is to provide guidance on the provision of drinking
water at the Worsley Alumina Refinery site and where supplied
offsite. Adequate water quality, water management standards and
procedures for testing and distribution are described.
Other strategies include dividing the containment facilities
into small working areas and investigating alternative residue
management techniques. Extensive trials have been undertaken in
assessing the use of surface covers to cover and/or bind the dust
particles to reduce dust being lifted by wind.
There is a long term plan to rehabilitate the bauxite residue areas,
and on-going research is taking place, including:
• understanding the hydro-geological and geotechnical
properties of the residue
• land form stability
• requirements of the soil to support vegetation
• methods for stabilisation of steep slopes.
Red mud containment facility, Worsley.
< 41 >
Water storage dam at Alumar.
Fresh Water Consumption (megalitre)
Smelting
Water used for cooling at the aluminium smelters is recycled.
20
All sites have extensive surface water and groundwater monitoring programs in place,
with sampling points located on and off site. Compliance reports are submitted to
authorities where applicable.
Mozal reviewed the water quality monitoring programme in place at the Rio Matola
River, which receives water from Mozal and flows into the Maputo Bay estuary. Water
and sediment is sampled at low-tide and high-tide during spring and neap extremes, and
has been extremely valuable in setting long term baseline values.
The revised monitoring programme will resolve seasonal variations and determine
current water quality parameters in the Matola River and estuary, and verify current
results against the data gathered in previous studies.
< 42 >
18
16
14
thousands
Impoundment dams at the Hillside and Mozal sites play a key role in managing storm
water run-off by serving as buffers between the sites and the downstream environment.
This system ensures that fluoride levels discharged are within zero harm limits.
12
10
8
6
4
2
0
FY2003
BMS
FY2004
Worsley
FY2005
Bayside
Mozal
FY2006
Hillside
WASTE
140
A number of waste initiatives are being implemented within the Aluminium CSG, which
has the highest waste recycling rate (77 per cent), excluding mineral waste, in the BHP
Billiton Group.
120
Another form of waste is Spent Pot Lining (SPL) at the smelters. There was a temporary
increase in SPL waste during the year under review owing to the Potline A freeze at
Bayside, but this waste stream has subsequently been stabilised.
Both the refractory and carbonaceous portions of the pot lining are currently recycled,
mainly in the cement industry.
A waste recycling project involving the three southern African smelters aims to identify
better recycling opportunities, which have greater financial benefits. Savings during the
past year was around $1.4 million (See case study on page 51).
Waste classification per source is carried out at all the sites to avoid waste
contamination and to promote recycling.
Key performance indicators for the percentage recyclables contained in general waste
were introduced at Worsley. A target of less than 5 per cent contamination was set to
be achieved by June 2007. Targets are measured every quarter and relayed to employees
through Waste Awareness programs which aim to promote recycling initiatives, propose
possible alternative products and packaging, and improved standards of practice.
Cost savings achieved by recycling initiatives at Worsley have a direct community benefit
through the Ruggies Minerals Industry Recycling Scheme. Worsley donates 30 per cent of all
recycling returns to the scheme, which are then passed on to Princess Margaret Hospital for
Children and the Royal Flying Doctors Association.
Worsley donated around $38 000 to the scheme this year – bringing total donations
since June 2000 to nearly $190 000.
Worsley is running an effective recycling awareness campaign which involves the
donation of bins to schools. The campaign is such a success that additional bins are
being donated to cater for the increase in recycling taking place.
Worsley’s target of a 20 per cent decrease in solid waste to landfill over five years from
2002 has been exceeded.
Bayside launched a waste awareness campaign on World Environment Day whereby
teams were given boxes containing non-hazardous recyclable waste generated on site
and given the task of producing something creative from the waste streams.
Mozal started using the recently completed Mavoco hazardous waste site in March 2005.
Mavoco is situated ± 12km from the Mozal smelter, and has an estimated 25-year life
span. It was constructed by the BHP Billiton project team during the Mozal II expansion,
was funded out of the project budget, and donated to the government. It is the first
facility of its kind in Mozambique, and extensive liaison and cooperation between Mozal,
the Ministry of Environmental Affairs and EnviroServ (the waste management company
responsible for operating the site) was necessary to ensure the project’s success. The
current challenge is to get other companies generating hazardous waste to use Mavoco.
< 43 >
100
80
100
60
% recycling
thousand tonnes
Initiatives vary from awareness campaigns, minimisation and recycling projects to
waste strategies. Mineral waste represents around 99 per cent of waste generated
by the Aluminium CSG and is discussed above under ‘Bauxite Processing Residue
Management’.
Waste Generation (excluding
Residue) and Recycling
80
60
40
40
20
20
0
FY2003
BMS
FY2004
Worsley
FY2005
Bayside
Mozal
% recycling
FY2006
0
Hillside
Energy Consumed (PJ)
ENERGY
Aluminium production, specifically smelting and the associated electricity usage, is very
energy intensive. The Aluminium CSG is the major contributor to energy consumption in
BHP Billiton
(44 per cent), of which 55 per cent is electricity consumption. Almost 20 per cent of the
energy used by the smelters is from carbon anode consumption, although the carbon is
consumed as an electricity conductor and not as a source of energy.
The major contribution to direct fossil fuel usage is electricity generation at Worsley.
Energy consumption at BMS is relatively low, since the company is only engaged in
mining.
Greenhouse gas management programs and energy conservation plans have been
developed at all sites with annual emissions greater than 100 000 tonnes of CO2
equivalent. This includes all Aluminium CSG sites apart from BMS.
The Hillside and Mozal smelters are currently among world benchmark smelters in terms
of energy intensity and specific greenhouse gas emissions. Process control software in
the older Hillside potlines is currently being updated in line with the newer Hillside 3 and
Mozal software. This will improve potline stability, which in turn contributes to energy
efficiency.
140
130
120
100
80
60
40
20
0
FY2003
BMS
FY2004
Worsley
FY2005
Bayside
FY2006
Hillside
Aluminium CSG Energy Breakdown
Purchased electricity
55%
Worsley uses coal and gas-fired power stations to produce the energy required to make
steam used in the process. Surplus energy from the gas-fired power station is supplied to
the public grid.
There has been continuous improvement in energy efficiency at the Worsley refinery
since the addition of the co-generation power station, and through engineering and
technological improvement in the refining process.
Mozal
Natural gas
11%
Coal and coke 27%
Distillate and
others 7%
A steam recovery plan has been initiated at the refinery to ensure all steam traps are
operating as designed. A steam leak survey completed in June 2005 has now become a
regular part of operations to improve steam reticulation and maintenance programs.
Improved alumina seed classification has led to higher plant yield with no increase in
steam demand.
A program is underway to upgrade filters around the refinery to further improve steam
efficiency.
The Aluminium CSG is a member of the International Aluminium Institute, which is
currently doing extensive work on aluminium life-cycle assessment (LCA), specifically
with regards to energy and greenhouse gas emissions. (See the case study regarding
aluminium LCA in the transport sector at the end of this Report). A Hillside student is
also busy with a dissertation on energy LCA specific to Hillside Aluminium and its raw
material suppliers.
Connecting power supply cables at the Hillside
smelter.
< 44 >
air
The key air emissions generated by the Aluminium CSG’s activities include greenhouse
gases, oxides of sulphur, fluoride gases and particulates.
Primary greenhouse gases of concern are carbon dioxide (CO2) and emissions of
perfluorocarbons (PFCs). PFCs are formed under specific conditions, when process
instability, known as ‘anode effect’, is experienced in the pots during aluminium
smelting. Oxides of sulphur (SOx) and fluoride emissions are generated chiefly from
smelting operations.
The Richards Bay smelters, Hillside and Bayside, provide financial support to an
independent body, the Richards Bay Clean Air Association (RBCAA), that measures and
reports publicly on ambient air quality, while Mozal conducts bi-annual surveys on air
quality.
Results of the ambient monitoring program indicate that all parameters measured are
within the Zero Harm limits set by the World Bank.
All three smelters engage in discussions around their air emission results at the annual
Interested and Affected Parties meetings.
Measures to control dust are important aspects of both operational and environmental
management systems, especially at the mining and refining sites. Dust is generated
by activities such as earthworks, excavation, blasting, transportation and product
processing, and is exacerbated by dry climatic conditions and wind.
A major challenge at the Worsley refinery in recent years has been the management
and control of air emissions. As production has increased, so has the demand for higher
emission control standards.
In response, Worsley has:
• adopted a detailed process for managing air emission projects
• developed solutions for reducing emissions from the liquor burner
• improved control of emissions during the digestion stage, and
• established a comprehensive health and hygiene surveillance program.
An Air Emissions Impact Assessment Process was established by Worsley in 2003. A panel
comprising employees and consultants with high-level expertise in the management of
air emissions was set up, and is responsible for the development of a comprehensive
air emissions program that includes sampling and analysis, modelling, community and
employee consultation, and environmental improvement plans.
The assessment process has been promoted as industry best practice for managing air
quality.
Following an evaluation of control technologies, Worsley has fitted its liquor burner with
emission control equipment to significantly reduce the generation of odourous volatile
organic compounds (VOCs).
The odour emission rates from the liquor burner are now less than 2 per cent of the total
refinery emission rate, and as a consequence can be considered insignificant in terms of
environmental impact.
< 45 >
Monitoring emissions at the Fume Treatment Centre,
Hillside.
A $7.5 million project now underway aims to re-route gases from the digestion process
into a collection vessel where they will be processed through a Regenerative Thermal
Oxidiser, similar to those used for the liquor burner.
• reducing the greenhouse gas (GHG) intensity of operations in line with the target
• the development of site-level GHG management and energy conservation plans
25
20
millions
Greenhouse gases
A number of initiatives relating to climate change risks and opportunities are being
implemented, in line with BHP Billiton’s Sustainable Development policy. These include:
30
Greenhouse Gases (including
purchased electricity) (ton CO2 eq)
15
10
• pricing carbon in investment decision-making
• funding research and development activities.
5
0
Carbon pricing sensitivity analysis is a key factor in decision-making on new projects that
would emit more than 100 000 tonnes of CO2 eq per annum. This analysis incorporates a
range of prices for developed and developing countries over an extended period of time.
Total greenhouse gas emissions have increased over the past few years due to expansion
projects at Hillside, Mozal and Worsley. A power outage at Bayside Reduction A resulted
in higher PFC emissions and higher anode consumption. This has now stabilised. BMS has
almost negligible greenhouse gas emissions compared to the other Aluminium CSG sites.
BHP Billiton has set a target to achieve an improvement in the greenhouse gas intensity
of operations (including emissions from purchased electricity) of 5 per cent over the
period 1 July 2002 to 30 June 2007.
The greenhouse gas intensity index is used to monitor performance against this target. BHP
Billiton’s performance is significantly ahead of schedule and the target has already been
exceeded.
The graph shows the greenhouse gas intensity index for the past four years. Although
an increase in greenhouse gas intensity for the Aluminium CSG occurred during the past
financial year, an overall reduction to date of 3 per cent against the 2001/02 baseline
was achieved.
A major contributor to the decrease in intensity was a decrease in emissions from
Bayside of almost 12 per cent.
Bayside is currently focusing on reducing its direct greenhouse gas emissions through the
management and improvement of energy efficiency and carbon consumption.
Although there was an increase in specific greenhouse gas emissions from electricity
< 46 >
35
tonnes CO2 eq per tonne product
BHP Billiton’s total greenhouse gas emissions amounted to 51 million tonnes of carbon
dioxide equivalent, a similar level to that reported in the previous reporting period. The
Aluminium CSG contributes a total of 51 per cent to this figure. Major contributions were
from the three aluminium smelters, amounting to 25 million tonnes of CO2 eq.
FY2003
BMS
30
FY2004
Worsley
Bayside
FY2005
Mozal
15
Hillside
Greenhouse Gases Intensity
(including purchased electricity)
(tonnes CO2 eq/ton product)
��
��
��
��
��
��
��
��
��
10
��
5
0
��
��
25
20
FY2006
��
FY2002 FY2003 FY2004 FY2005 FY2006
Worsley Bayside
Mozal
Hillside
Intensity index (%)
Note: Baseline FY2002 used as per BHP Billiton
target.
��
percentage (%)
Greenhouse gas management programs and energy conservation plans have been
developed at all sites with annual emissions greater than 100 000 tonnes of CO2 eq.
These include all Aluminium CSG sites except BMS.
generation in southern Africa, improvements in process specific emissions were realised.
An increase in process specific GHG emissions was noted at Mozal due to potline
outages and relining.
Sulphur Dioxide (tonne)
40
35
thousands
Improved process control software in the newer potlines at Mozal and Hillside, as well
as improved management of anode effects at all smelters, contributed significantly to a
reduction in PFC emissions.
45
An annual survey of PFC emissions by the IAI has shown that Mozal and Hillside are
among the benchmark smelters worldwide in PFC emission levels.
Greenhouse gas intensity reductions achieved at the Worsley refinery were mainly due
to projects to increase heat recovery and energy fuel switching and the establishment of
a specialist team to reduce GHGs by 40 per cent (based on 2002 emission rates), at the
mine site.
Life cycle assessments are being done by the IAI to establish the impact that aluminium
has on energy consumption and the emission of greenhouse gases. (See the transport
sector case study at the end of this Report.)
Sulphur dioxide
Sulphur dioxide (SO2) emissions arise from the use of fossil fuels, mainly coal and
petroleum coke. Emissions from the Aluminium CSG contribute 41 per cent of total BHP
Billiton emissions. Currently a silo is under construction at the Hillside smelter facilitating
the blending of low sulphur coke in order to reduce emissions. Apart from a general
worldwide increase in sulphur content in coal and petroleum coke, the expansions at
Hillside and Mozal contributed to the increase in emissions. Note that SO2 emissions
from BMS are negligible.
Fluoride
Fluoride is an essential component in the aluminium smelting process and, when emitted,
is recovered as far as possible by means of adsorption on alumina. This is then recycled
back into the process.
30
25
20
15
10
5
0
FY2003
Worsley
FY2004
Bayside
FY2005
Mozal
FY2006
Hillside
Fluoride Emissions (tonne)
1 200
1 000
800
600
400
200
0
FY2003
Worsley
FY2004
Bayside
FY2005
Mozal
FY2006
Hillside
Factors influencing fluoride emissions are pot-closure and adsorption efficiency. Fluoride
emission from the Aluminium CSG contributes 72 per cent to that of BHP Billiton. An
increase in absolute emissions is due to expansions at Hillside and Mozal.
Specific emissions show a general downward trend with Mozal being regarded as one of
the lowest emitters of fluoride for the technology that is utilised.
An environmental upgrade at Bayside’s B and C potlines during the 2003/2004 financial
year contributed to a reduction in fluoride emissions of more than 100 tonnes per annum.
A small amount of fluoride is emitted by Worsley due to coke consumption.
The mayor of uMhlathuze Municipality and media
representatives during a visit to the new coke silo
under construction at Hillside Aluminium.
< 47 >
ENVIRONMENTAL SPENDING
ENVIRONMENTAL SPENDING
The most significant contributor to environmental spending (excluding capital and
operational expenditure) was on environmental management, including human
resources, training, consultants, environmental impact assessments and project
execution. A trend of increasing environmental spend is noted, mainly due to an increase
in management and monitoring from Worsley. In addition, rehabilitation costs at BMS
started to become a factor during the last two years.
Unit: US$ 000
Research and development cost was mainly incurred by Worsley for the Air Emission
Impact Assessment process, biodiversity research and research related to the
development of a rehabilitation strategy.
Aluminium
BHP Billiton
Research and Development
1,690
12,249
Site Rehabilitation
2,448
189,281
Environmental Monitoring
3,347
29,535
Others
2,810
78,368
Total
10,296
309,433
These costs exclude expenditure associated with capital cost, operation and maintenance of
pollution control equipment and the like.
RESPONDING TO COMPLAINTS
All operations record and investigate environmental complaints received from members
of the public. During the year under review a general decrease in complaints has occurred
due to pro-active initiatives to manage environmental impacts, as well as initiatives to
more effectively communicate planned activities with neighbouring communities. Individual
feedback is provided in the case of specific complaints, as well as public feedback where
appropriate.
Complaints at Worsley are mainly related to noise which is associated with the use of
heavy vehicles and the operation of the overland conveyor. Many initiatives are ongoing
to minimise noise, including:
ENVIRONMENTAL COMPLAINTS
Unit: Number of Complaints
FY2003
FY2004
FY2005
FY2006
54
38
29
24
BMS
0
0
1
4
Hillside
6
35
5
1
Worsley
Mozal
2
0
2
0
Bayside
4
4
11
12
66
77
48
41
Total
• noise modelling to predict mining noise levels at residential locations, and the use of
this information on a daily basis for planning of noise related activities
• use of ‘Nonel’ detonation devices during blasting at the mining sites
• introduction of silent horns on heavy vehicles. During the loading of trucks, a radio signal
is sent out from the related loader when required. This signal is received as an audible
alarm in the truck’s cabin. Each truck operates on a unique frequency
• changing of operational procedures and systems to accommodate noise management
• external review of noise management procedures and systems
• reduction of the Sound Power Level of all equipment by 7dB(A).
Complaints received by the aluminium smelters mainly concern visible air emissions.
Many initiatives to minimise emissions, and the resulting complaints, have been
implemented, including:
• informing the authorities and public prior to planned maintenance of air emission
abatement equipment
• monitoring of emissions during planned maintenance
• improvement of planned maintenance procedures to minimise emissions.
At Bayside visible emissions are logged internally in order to address the source of visible
emissions immediately.
< 48 >
Doing noise surveys in a residential area.
case study
Waste recycling project at Alumar, Brazil
A waste recycling project at the Consórcio de Alumínio do
Maranhão (Alumar) aluminium operation has led to coal fines
from the refinery boilers being used as a substitute for the coke
burned in the kilns at a local cement plant.
90 000
Waste recycling project coal fines in Brazil
Refinery
expansion
Coal fines
80 000
��
The innovative recycling concept has the potential to produce
significant environmental and socio-economic benefits, including:
100 000
70 000
60 000
50 000
• reduced storage of coal fines at the plant by 18 000 tonnes
per year
40 000
• the opportunity to develop a highly efficient recycling
technology at low cost
20 000
30 000
10 000
• reduced fugitive emissions, with subsequent health,
environmental and visual benefits
0
��
��
��
��
��
��
��
��
• saving of $400 000 by avoiding the need for a new coal
fines disposal area
fines being generated by the refinery will be used as required
for the rehabilitation of the bauxite residue disposal areas, and
other potential applications are being explored. This means a new
storage area for coal fines will not need to be constructed.
• increased awareness of the Company’s endeavours to
provide leadership in environmental management.
The coal fines re-use project
The refinery employs a steam-based process to produce
alumina. Most of the steam is produced by three coal-fired
boilers, which generate ashes. Since the facility began
operating, coal ashes (including coal fines, which are the finest
of the ashes) have been stored in a purpose-designed area that
occupies 1.3 hectares of land and cost $400 000 to construct.
Coal fines are generated by the refinery at an annual rate of
26 400 tonnes. By January 2005, all of the stored ashes had
been removed for use in the rehabilitation of bauxite residue
storage areas. Coal ashes improve the physical properties of soil
and act as a source of nutrients for plants.
Since then, approximately 24 000 tonnes have been stored
in the ash disposal area. They could be used for further
rehabilitation of the surfaces of the bauxite residue storage
areas. However, such rehabilitation projects occur only about
every six years.
Refinery expansion
The refinery is currently undergoing an expansion project,
scheduled for completion in 2008, which will result in an
increase in the generation of coal ashes from 2 200 tonnes per
month (26 400 tonnes per year) to 7 200 tonnes per month
(86 400 tonnes per year).
In response to the projected increase in ash production, other
avenues for use of coal fines are currently being explored.
In addition to its usefulness in the cement industry, the project
results indicate that coal fines could be used as a partial
replacement for coal in steel plants and for charcoal in pig-iron
plants. This provides scope for the trade of coal fines to these
industries as well.
In October 2005, a project was initiated to find a re-use for all
the coal fines generated by the refinery. Coal fines have a heat
value of approximately 5 000 kcal/kg. They are not corrosive
and are not a hazardous waste. These properties make them
suitable for use in cement plants as a partial replacement for
the coke burned in the kilns.
Tests were conducted in partnership with a cement production
company located in the state of Ceará, with the approval of the
environmental authorities in both Maranhão and Ceará. In the
initial stages of the project, from October 2005 to February 2006,
a total of 1 950 tonnes of coal fines were sent to the cement
plant. As the project develops, the volume shipped is expected to
increase to a steady rate of 1 500 tonnes per month.
At that rate, up to 18 000 tonnes of ashes per year will be re-used
and therefore will not need to be stored. The balance of the coal
The coal fines disposal area at Alumar.
< 49 >
case study
asa Waste management programme
A BHP Billiton ASA (Aluminium Southern Africa) waste
management programme was initiated in 2004, involving the
three southern African smelters, Hillside, Bayside and Mozal. The
initiative arose out of BHP Billiton’s goal for ‘Zero Harm’, and is
supported by the ‘Centre of Excellence’ methodology.
Waste Stream
Application
Carbonaceous SPL
Charge carbon
Fuel
Refractory SPLUse as raw material
SiC SPLUse as reductant
The following factors also contributed to the decision to establish
the waste management initiative:
•
•
•
•
ever increasing waste cost
low waste recycling ratios
limited spent pot lining (SPL) recycling opportunities
individual smelter volumes, not able to meet external
market demands
• exploration of synergies
• storage of hazardous waste.
Carbon Dust
Slag conditioner
Ladle refractories
Ladle insulating cover
X-material
Ladle insulating cover
Bake furnace refractories
Paving & grog
Avoidance
Minimisation
Re-use
Forming the group
An ASA waste initiative group, representing all three smelters and
various disciplines within ASA, including environmental, production
and commercial people, was formalised in January 2005.
The group’s first task was to find a total waste solution partner,
whose core business is waste management. A commercial and
technical assessment led to a contractual agreement between
EnviroServ Waste Management and ASA, which hinges on a
sharing in cost savings.
Recycling
Treatment
Disposal
Current Focus
Future Focus
established and is updated on a monthly basis. This database
provides the information to track the progress of the waste group.
The database also provides valuable information in developing
new markets for external recycling.
The agreement between ASA and EnviroServ is developed on the
basis of ‘16 Principles’ as agreed on by the group. Principle 1 reads:
“It is the intent of both parties to develop a win-win
partnership that will for an indefinite period aspire to reduce
the costs of BHP Billiton waste management and increase the
value of its waste streams into specific offset markets.”
Principle 1 sets the tone on which the remaining principles expand.
Identifying opportunities
Many of the waste streams within ASA contain significant value
for external markets which have never been developed before.
The table (above) shows specific streams and the possible
markets.
EnviroServ is working closely with role-players in each smelter
to find the best resolution for each waste stream. Their focus
covers all waste streams in ASA and incorporates all waste
processes from waste avoidance to waste disposal. The mission
statement of the group is:
Priority streams were determined in terms of cost and volume
and the market development is currently underway. Identifying
further prospects will be based on the continuous improvement
methodology to ultimately reach the target of zero cost and zero
waste to landfill in ASA.
To eliminate, reduce and recycle all waste, at zero cost and
harm to environment and people.
Current achievements
Seven months after the program was initiated, the following
had been achieved:
This mission can be achieved by changing the current waste
management focus, as shown in the illustration at right.
One of the crucial points in changing this focus is education.
The ASA group is busy developing a handbook, to be distributed
to relevant employees at the three smelters, which aims to align
the thinking and processes within ASA.
Combining the data
One of the first targets of the group was to combine all the waste
data from the three smelters in terms of volumes and cost, and to
treat the data as one waste source. An ASA waste database was
• total waste solution partnership formed between ASA and
EnviroServ
• all three smelters have on-site waste management contracts
in place
• EnviroServ operating Mavoco (Mozambique’s first hazardous
waste facility)
• EnviroServ operating the Bayside smelter SPL processing
facility with increased throughput and decreased cost
• EnviroServ erected and commissioned the Mozal smelter SPL
screening plant
< 50 >
Trials have been conducted in the steel and cement industries,
confirming the favourable application of the product and the
negligible environmental impact. The results of these trials were
used to get approval from the regional air pollution officers for
further extended trials.
Some savings have been realised as a result of diverting SPL
into the test markets.
Facing the challenges
More than 7 000 tonnes of waste has been recycled, with a
saving of more than $1.4 million.
“EnviroServ is proud to be involved with this first of its kind
agreement within BHP Billiton ASA. We are committed to
making it a success, and in the process pioneering the way to
supply new win-win integrating waste solutions in Africa.”
Des Gordon, EnviroServ Chief Executive Officer.
Trials are being done to test the use of spent potlining in the cement and
steel industries.
case study
ESTABLISHMENT OF A BRAZIL NUT GERMPLASM
BANK AT SARACA-TAQUERA NATIONAL FOREST, BRAZIL
The aim of the project is to preserve, characterise and
quantify the genetic variability of the Brazil Nut (Bertholletia
excelsa), which is a tree species of great social, economic and
environmental importance in the Amazon. This involves the
establishment of a Brazil Nut germplasm bank in the SaracaTaquera National Forest, containing samples from different
Amazon populations. It is a pioneering project and extremely
significant for the people of Brazil, bearing in mind
the importance of the species.
The project was started in November 2002
in a partnership between MRN, the Brazilian
Environmental and Renewable Resources Institute
and the National Amazon Research Institute.
MRN’s role in the project, in addition to the funding
of the project and the provision of supporting
manpower and logistics of the team members, is
overall co-ordination and implementation.
In the first three years the focus has been on
the collection of germplasm from ten sampling sites, sowing
of seedlings in a nursery, reforestation of specific controlled
areas in the mine with Brazilian Nut trees, and molecular
characterisation of the germplasm bank.
The project team is led by an agronomist and two forest
scientists. Additional team members include biologists and
foresters.
One-year-old germplasm bank plantation.
Left: Brazil Nut (Bertholletia excelsa).
One of the biggest challenges is gaining access to the Brazil Nut
tree forests to collect living material (seeds, pollen and tissue)
for the germplasm bank. These areas are scattered throughout
the Amazon region covering an area of roughly
3 000 000 square kilometres.
The knowledge obtained from this project will serve as a model
for the creation of germplasm banks of other important plant
species in the Amazon and elsewhere in the world.
< 51 >
case study
Wildlife study in the Bakhuis exploration concession area
In November 2003, BHP Billiton Maatschappij Suriname (BMS)
commenced a two-year exploration program to define bauxite
resources in its Bakhuis concession in western Suriname. The
concession covers 2 800 square kilometres and comprises
a largely undisturbed tract of tropical rainforest. It also lies
adjacent to the Central Suriname Nature Reserve, a designated
World Heritage Site and rainforest wilderness that encompasses
10 per cent of the land area of Suriname.
The Bakhuis field staff recognised early in the exploration program
that the concession hosted very diverse and abundant fauna and
therefore decided to implement a camera trapping program to
record the wildlife of the concession. An approach was made to
Conservation International (CI), the international not-for-profit
organisation focused on conserving biodiversity, to provide
guidance in setting up and operating the camera network. The
first pictures were obtained in July 2004, and included good
Environmental field coordinator checking a camera trap.
images of a wide range of animal and bird species.
Environmental and social impact assessment
During 2005, an environmental and social impact assessment
of possible future mining at Bakhuis was launched. Under the
guidance of Dr Jim Sanderson, a renowned cat specialist with
CI’s Centre for Applied Biodiversity Science, the camera network
was expanded and improved, and the results were spectacular.
Together with other field observations, the team has identified
34 medium and large terrestrial mammals to date, and further
species are anticipated. Four cat species were observed, and the
images demonstrated that jaguar and puma are abundant.
“The wildlife throughout Suriname is extremely biologically rich
and diverse,” commented Dr Sanderson. “Through this project
with BMS, rare cat species and other large mammals are being
photo-trapped at high rates and at many sites. CI believes
private sector partnerships like this are critical to achieving our
global biodiversity conservation outcomes.”
A camera trap in place.
Andy Witcomb, Environmental Manager Projects, BMS, adds:
“The camera trapping program has added immensely to our
understanding of the species richness and abundance of the
Bakhuis fauna, and expands existing ecological knowledge
in Suriname. It also allows us to compare Bakhuis with other
locations in the Guianas and Amazonia and provides a sound
basis for prediction of potential impacts of any future mining
at Bakhuis, together with responsible management of those
operations.
“The technical expertise, guidance and spirit of cooperation
of CI have been critical factors in the success of the camera
trapping program. Partly as a result of this partnership, BMS and
CI have since worked together on other ecological assessment
programs elsewhere in Suriname.”
A jaguar photographed during the study.
< 52 >
case study
Changing perceptions of Mozal
pertaining to environmental impact
Media Attention
There have been negative perceptions of the Mozal operation
among some members of the surrounding community since the
smelter was established in 1998. For example, Mozal has been
accused of causing changes to natural weather patterns, and
even for being responsible for droughts.
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
�
These perceptions have been ascribed to a lack of
understanding of the aluminium production process and to
distrust as to why Mozal invested in Mozambique (Mozal
is the biggest investment undertaken in Mozambique since
independence in 1975).
��
�
��
�
��
�
��
��
Hence the process of engaging with local communities and
stakeholders through the Interested and Affected Parties (I&AP)
meetings and other communication channels has taken on
an added significance. Mozal’s desire to be viewed as a good
corporate citizen that nurtures realistic opportunities, while
uplifting people and building long-term relationships built on
honesty, openness, mutual trust and involvement, is enshrined
in the BHP Billiton Charter and is an integral part of Mozal’s
operating philosophy.
�
�
��
��
�
��
��
Complaints from the Public
8
Numbers
6
6
7
5
4
2
2
0
0
Mozal has maintained a relationship with the community in
which it operates since the construction and commissioning
phases of the smelter through a number of communication
channels. One in particular that has been extensively used with
success is the bi-annual I&AP meeting.
2002
2003
2004
2005
2006
The first I&AP meeting was held in January 1998, and was
probably the first such meeting ever held in Mozambique. It was
attended by 40 people (primarily senior government officials).
Currently I&AP meetings are attended by more than 200 people.
Thorough preparation is undertaken prior to I&AP meetings to
ensure that they are effective:
• prior to each I&AP meeting the HSE team reviews the opinions
and concerns raised by the community, gleaned from media
reports, social perception surveys, public visit feedback,
general community feedback and previous I&AP meetings.
Interested and Affected Parties meeting in progress, Mozal.
• approximately three to four weeks prior to the I&AP
meeting, the HSE and Communications teams co-ordinate
and arrange the logistics of the meeting. This includes:
in the local newspapers in the weeks leading up to the
meeting
• ensuring the presentation material is presented in both
English and Portuguese
• appointing an external Master of Ceremonies, respected
by the community, to facilitate the meeting
• appointing an official English-Portuguese translator to
carry out simultaneous translation during the meeting
• sending personal invitations to people who have
attended previous meetings
• placing information notices at strategically located
distribution points, inviting the general community
• arranging transportation to and from the meeting for
targeted rural groups that were affected by relocation
strategies adopted by the Mozambican government
during the development of the Beloluane Industrial park
in which Mozal is located
• ensuring the proactive and enthusiastic participation of
the Mozal presenters.
• placing an open invitation to the general community
< 53 >
Follow-up
To improve the depth of communication, meeting participants
are encouraged to pass information on to their relatives. In
addition information brochures are distributed with frequently
asked questions and answers that clarify myths about the
aluminium processes.
Members of the community who have expressed strong views
on certain aspects of the processes employed by Mozal or
the impacts that Mozal has on the environment (including
the community) are followed up directly. This has entailed
personally inviting the people concerned to visit the smelter to
see first hand how things are done. This has had a resounding
impact and has in some instances resulted in a fundamental
change of attitude to the extent that people who once had a
negative attitude towards Mozal now promote it in a positive
light among the community.
For example, the concept of Zero Harm was introduced at an
I&AP meeting in 2003, and was challenged by a professor from
the local university, who re-iterated his challenge in the local
press. Subsequently the professor was invited to visit Mozal
to discuss the concept of Zero Harm and its application. The
professor then followed up on his earlier article in the local
press with a challenge to other industries to buy into the
concept of Zero Harm.
As a result of the engagement process:
• negative media articles on Mozal have decreased
significantly
• the type of questions raised by the public prove that they
now understand Mozal’s aluminium production process
• the number of complaints and questions received from the
public has dropped significantly.
Members of the public gather for an Interested and Affected Parties meeting,
Mozal.
Additional benefits of the engagement
Mozal has established a rapport with the community, to the
extent that community members express their support when
criticism has been deemed to be unreasonable or unfair, and
have advised other companies to follow the same engagement
process.
The overall impact of the I&AP meetings has resulted in a twoway communication process whereby Mozal has been sensitised
to the opinions and concerns of the community and can take
these into account in any planned activities or programmes.
Mozal, through the I&AP meeting has created a more
knowledgeable community empowered to take on more of a
‘guardianship’ role. This ensures that Mozal continually strives
to improve its HSEC performance.
< 54 >
Community
BHP Billiton Community Contributions (1 July 2005 – 30 June 2006)
Arts Community Welfare Education
Environment
Health Sport/Recreation
Other TOTAL ($US)
BMS
52,238
13,670
202,252
9,874
6,450
8,731
45,989
339,204
Mozal 78,512
1,128,636
186,259
119,907
485,901
79,172
651,927
2,730,314
Worsley Hillside/Bayside
CSG Total
9,750
39,176
27,510
76,859
15,082
139,299
196,519
504,195
44,164
664,254
1,930,644
97,162
501,785
13,580
1,328,031
4,579,620
184,664
1,845,736
2,346,665
303,802
1,009,218
240,782
2,222,466
8,153,333
The importance of establishing good relations with host communities continues
to grow, particularly in countries where external factors outside the Company’s
control have the potential to impact on our operations.
Aluminium CSG Corporate
Social Investment spending
2%
The diversity of locations, languages and cultures that frame our interactions with
communities also adds a further layer of complexity, which presents ongoing challenges.
The role of community relations practitioners within our operations continues to expand
to ensure communities are informed about our operations, have the opportunity to
express their views and opinions, and engage in decision-making in aspects of our
business that relate to them.
Community relations
Our HSEC Management Standard 7 forms the basis of our approach to communications,
consultation and participation with stakeholders. Our aim is to maintain effective,
transparent and open communication and consultation with stakeholders associated with
BHP Billiton activities. Stakeholders are encouraged to participate in and contribute to
sustainable development through HSEC performance improvement initiatives.
Following the review of the HSEC Management Standards, the requirement for community
relations plans has now become an integral requirement of HSEC Management Standard 7
moving forward.
23%
27%
3%
29%
12%
4%
Arts
Environment
Community Welfare
Health
Education
Sport/Recreation
Other
Effective communication
All the Aluminium CSG operations hold regular interface meetings with the public to
provide an opportunity for the management to discuss any plans, and for the public to
raise any concerns. This provides an opportunity for the operations' management, in
consultation with the community, to determine a way forward. The smelters also allow
site visits to promote transparency of operations.
Community surveys are conducted at the operations to determine local perceptions of
the businesses.
As discussed in the environmental section of this report, the Richards Bay smelters
(Hillside and Bayside) provide financial support to an independent body that measures
and reports publicly (in the media) on air quality. Mozal conducts annual surveys on air
quality and discusses the results at their interested and affected parties meetings.
BMS engages the community in discussions around operational changes at these
sessions. The community has the opportunity to raise their concerns and aspirations on
operational issues related to subsistence, land use, land ownership and environmental
impacts.
< 55 >
Employees help out at a soup kitchen in Richards
Bay.
Employee Volunteer Week at the Garden of Hope.
Corporate Social Investment at
the Hillside and Bayside smelters
The Hillside and Bayside smelters provide support for a variety of projects in health,
education, skills development, job creation, crime prevention and environmental
conservation, through a Corporate Social Investment program.
The common theme running through the portfolio of projects is that they all aim to
promote the establishment of a secure and economically sound environment in the
Zululand region, where the smelters are located. This not only benefits Bayside and
Hillside smelters, but the local communities as well.
Employee Forum
Bayside and Hillside employees are represented on a CSI Employee Forum which receives
and screens applications for funding from various community-based organisations.
The Forum, Matched Giving Programme and Give-As-You-Earn programs, encourage
employees to involve themselves in community development efforts.
An Employee Volunteer Week was organised by both smelters in April 2006, during
which Baysiders and Hillsiders used their own time, and were given time off work, to do
community work for a charity of their choice (see case study on Page 64).
Ethembeni Care Centre
BHP Billiton is a key corporate funder of the Ethembeni Care Centre (ECC), which has
recently expanded to a 45-bed facility, and has become a flagship resource centre for HIV/
AIDS interventions in Zululand. It offers help and hope to members of local communities
(including employees of the smelters) who are infected and affected by HIV/AIDS.
Ethembeni is a past winner of the Mail & Guardian ‘Investing in the Future’ award,
and has been nominated for a prestigious ‘Best Practice’ award. BHP Billiton annually
contributes around 80 per cent of the operating costs of the centre, and the smelters
< 56 >
Employee Volunteer Week, Bayside.
provide on-going support to ensure that it continues to deliver
affordable care and quality services.
Science Centre
The University of Zululand boasts an excellent Science Centre in
Richards Bay which is part-sponsored by Bayside and Hillside.
The Centre, visited by more than 60 000 students per annum,
offers workshops to learners preparing for their final Grade 12
exams, teacher workshops, science competitions, school visits and
a resource centre with wonderful exhibitions that make Maths
and Science fun for any student. Bayside and Hillside upped their
commitment to this institution this year by donating the funds
necessary to construct an auditorium for the Science Centre which
will enhance their ability to reach out to more students.
The PEN Project
The Partnership-In-Education Network (PEN) schools project is
successfully managed by Bayside and Hillside and was initiated
A nurse tends to a patient at the Ethembeni Clinic in Zululand.
after the smelters had received numerous requests for financial
assistance from more than 800 schools across the region. It was felt
that rather than make ad-hoc cash donations, it would be better
to ‘adopt’ a limited number of schools and focus on improving
standards to match some of the best urban schools in the region. 38
Schools currently benefit from this project.
Physical Schools Development is a public/private sector partnership
with the smelters and other stakeholders aimed at providing school
buildings in under-resourced areas.
Community Bursary Fund
Bursaries are awarded annually to individuals who have the
potential to succeed at tertiary level, but would not otherwise be
able to afford secondary or tertiary education.
Craft Project
The Zululand Craft Action Body has assisted in providing rural
people with a range of marketing skills. The objective of the
project is to increase the ability of disadvantaged, unemployed
and unqualified people to become food secure through accessing
economic opportunities with a specific emphasis on creating selfemployment (see case study on Page 74).
Zululand Craft Action Body stand at a Zululand craft show.
Tree-preneurs Project
This project aims to empower the ‘poorest of the poor’ to
engage in community development projects, thereby allowing
them to generate desperately needed cash, improve their basic
communication and numeracy skills and, possibly most importantly,
nurture self confidence and hope.
It enables unskilled community members to participate in
community development and to reward them according to the
amount of effort they put into the project. The Indigenous Trees
for Life project specifically targets single parent and child headed
homesteads, whilst the Community Greening project targets
unemployed youth.
Tree-preneurs Project creates jobs and raises environmental awareness.
A network of 60 Tree-preneurs from two communities were
identified by school principals and teachers as the most vulnerable
scholars, the ‘poorest of the poor’. They are given basic training
and are given indigenous tree seedlings to be planted in their
communities.
< 57 >
The BHP Billiton funding is used to establish these Green Teams
that plant the trees, care for them for a year and remove alien
vegetation in the areas being greened.
community development
in mozambique
Project Green
This initiative aims to ensure that all projects supported by the
Hillside/Bayside CSI are supporting environmental sustainability.
Additional objectives include:
• identifying opportunities for environmental education
• raising awareness and understanding concerning environmental
issues and risks
• taking action on environmental issues and risks
Small and micro enterprise development
With high levels of unemployment and few formal job
opportunities, members of local communities surrounding the
Mozal smelter have little option but to try and make a living
by running their own micro businesses. The Mozal Community
Development Trust (MCDT), which was established by the Mozal
shareholders in 2000, has committed resources to a small
and micro enterprise program which aims to empower these
entrepreneurs and strengthen their businesses.
One such program focuses on training single mothers and widows
at Djuba village in the Matola-Rio region.
• ensuring sustainability and conservation of natural resources.
Business Against Crime
Business Against Crime is a successful private/public sector
partnership which coordinates a portfolio of projects promoting an
effective, orderly criminal justice system. The smelters have been
instrumental in installing CCTV cameras in the CBD, training of
police reservists and crime prevention partnerships.
Rehabilitation of Offenders Program
Phoenix Zululand is a community-based organisation working
in the context of the criminal justice system but with a special
emphasis on prisons. Ten central Zululand prisons and surrounding
communities have been targeted. The aim of the project, supported
by BHP Billiton, is to help rehabilitate past offenders in terms of
accepted Restorative Justice codes and practices (see case study on
Page 65).
Two groups of 40 women (widows and single mothers) attended
training on raising chickens. On completion of the course each
group received 700 chicks, plus equipment and tools to enable
them to launch a chicken rearing business. With the profit
earned from the fledgeling business, the women have increased
production, and now produce some 2 000 chickens per month,
which are sold at local markets.
Another group of 20 poor women from Djuba attended a carpetmaking and embroidery training course. On completion of the
course each group received a starter kit of tools and material
to help them establish their own businesses, and they are now
selling their products in Maputo.
Fifteen widows and single mothers from Djuba Village received
assistance in the form of training, material and equipment
(including sewing machines, mosquito netting and insecticides) to
start their own businesses making mosquito nets. Malaria is rife
in Mozambique, and the nets help to prevent infection. The MCDT
is already involved in a number of programs aimed at controlling
malaria, and so the training supports the overall effort.
Mozambicans involved in carpet making, sewing and harvesting.
< 58 >
Chicken rearing with help from the Mozal Community Development Trust.
The MCDT has contributed $200 000 to the Red Cross of
The MCDT is now able to purchase nets from the new
entrepreneurs for wider distribution as part of the on-going efforts Mozambique in support of the aid programs this humanitarian
organisation is conducting for the people of the Maputo and Gaza
to eradicate malaria and improve the health of communities.
provinces. These funds are helping the Red Cross in its fight to
The project aims to:
alleviate poverty in the region.
• fight against malaria infection in the community
When Mozal was being established, the Agriculture Development
• create a platform for social development, especially among
Program
(ADP) was initiated, on the advice of the International
needy communities
Finance
Corporation,
to benefit the 650 farmers relocated from
• create sustainable employment and improve people’s access to
the
project
site.
The
program,
which commenced in 2000 and was
economic opportunities.
implemented over a four-year period, provided the farmers with
Alleviating poverty and hunger
plots on which to re-settle and has assisted them to move from
Because of its geographical location, Mozambique is vulnerable to
subsistence farming to raising crops as a sustainable resource.
natural disasters such as floods, cyclones and drought. For the last
four years, for example, the Maputo and Gaza provinces have been The ADP, using the expertise of specialist support organisations,
experiencing a severe drought. The effects have been so harsh that has benefited the local communities by providing more land under
many people can no longer earn enough to meet their basic needs, sustained cultivation, improved agricultural production, and
assistance with the sale of surplus produce, thereby enhancing the
and people are struggling to survive.
commercial potential of the farms.
This situation has brought with it many health problems including
disease and malnutrition, particularly in children, along with social Training and capacity building have been key components of the
ADP. The National Institute for Agricultural Research has been
issues such as poor self-esteem and lack of dignity; factors that
involved in providing the farmers with training in:
are all contributing to a decrease in life expectancy.
The Mozal Community Development Trust (MCDT) was established
to make a contribution to improving the quality of life in Mozal's
host communities. In this regard, its objectives are to:
• management of a farmers association
• assist drought-affected people by mitigating hunger
• soil and plant nutrition
• help them to minimise the negative effect that the hunger has
brought upon them and their children.
• the use and application of fertilizers
To help achieve these objectives, the MCDT has embarked on a
number of initiatives, including providing support to the Red Cross
Society of Mozambique and assisting with the development of
sustainable farming through the establishment of the Agriculture
Development Program.
• crop marketing
• land preparation
• farming systems
• pest and weed control
• farm records
• finance and budgeting
• harvesting and storage.
< 59 >
As a result, productivity increased from an average yearly
production of 400 kilograms per family in 1999/2000 to around 2
tonnes per family in 2001/02.
Nassau Cultural house
The Nassau bauxite exploration is located in an area controlled
by the Paramacaners, a Maroon tribe in Suriname. Seeking an
opportunity to initiate a project that would add value to the lives
of this community, BMS representatives visited their village, called
‘Nason’ situated on an island in the Marowijne River, and spoke
with the captains and villagers in the presence of the district
commissioner. BMS selected a project to build a cultural house
and employ eight young men of the tribe at the Nassau Bauxite
Exploration.
After 2002, when the drought began to take its toll, the ADP
assisted the farmers to diversify into crops that are resistant to
drought, such as cowpeas, cassava and sweet potatoes. Through
this support, the farmers have been able to harvest their crops
during times of drought and help to alleviate hunger in their
families.
Community development in Suriname
BHP Billiton Suriname Sustainable Development Foundation
was established in mid-2005 to initiate, implement, coordinate
and manage sustainable projects in Suriname in partnership with
key stakeholders. A key objective of the Foundation is to secure
the participation and involvement of local communities in projects
from the outset.
The Foundation selects projects which support capacity building
and strengthening of local communities, create long term and
sustainable income for communities, and contribute to socioeconomic upliftment of the communities where BMS operates.
The Foundation has identified five focus areas for sustainable
development: education, health, job creation, arts and culture,
and environment.
Building the cultural house is a project where maximum
involvement of the community was required. Together with the
captain a design was drawn up and a list of necessary materials
compiled. Community involvement in the construction project
included provision of river sand, gravel and labour.
School of music
BMS contributed to the renovation and upgrading of the National
School of Music centre, and to assisting the school to take music
education to the rural areas. This process will start in 2006 and
will be implemented in 2007 and 2008 enabling children in rural
areas to have music education for the first time.
Pedestrian footpath
BMS financed the construction of a pedestrian pathway alongside
a busy connector road situated close to its Onverdacht operations
in Para district. The pathway will significantly improve safety
Opening of a footbridge for St Angelina school along the Cottica river in Suriname (the previous bridge was washed away in a flood.)
< 60 >
communities and special interest groups.
for the many people – particularly school children – who walk
alongside this road daily. The project was a partnership with
the district commissioner of Para, who will be responsible for
maintaining the path. The children from the primary school at ‘La
Vigilantia’ were instructed in how to use the foot path safely.
Information about mining, refining and shipping activities is
provided through displays, brochures, newsletters, on the web
and in the local media.
Supporting secondary education in Suriname
BMS has committed itself to providing support for the Natuurtechnisch
Instituut (Natin), the only secondary level technical education institution
in Suriname. BMS will provide technical and financial support in order
to improve the facilities and quality of teaching.
Many graduates from the institute find jobs in the private and public
sector at mid-level supervisory and specialist positions, and form
the backbone of Suriname’s workforce. Some 20 per cent of NATIN
graduates enter the university after an intermediate course. NATIN
graduates hold the majority of positions as crew and shop foremen
and field supervisors in Suriname’s bauxite and aluminium industries.
Worsley continues to conduct briefings and meetings with local
landowners to discuss the rolling ten-year mining plans and other
environmental matters.
A comprehensive Health, Safety, Environment and Community
report is produced annually to provide the public with an overview
of the company’s performance in each of these areas.
Each year Worsley joins other mining and industry operations
to host a public open day for people to get a close-up view of
the operations. About 400 people attended the Open Day at the
refinery and the mine last year. In November last year, Worsley
also participated in an Open Day at the Port of Bunbury, which
attracted about 5 000 visitors.
Tours of the refinery, mine site and port facilities are held regularly
for community, school and business groups.
community activity in worsley
There are two key objectives for Worsley’s community relations
activities:
Over the past year, Worsley has also been sharing details about its
growth plans with state government agencies, local governments,
business groups and the media as part of a widespread
information campaign.
• to add value to the communities in which Worsley operates, and
• to be widely recognised as a responsible corporate citizen.
Community support
Every year Worsley Alumina gets hundreds of requests from
community organisations seeking support for events, programs
and special projects. Most of these requests are referred to
Worsley’s Community Involvement Committee (WACIC) which is
made up of employees.
The first goal is achieved through the company’s pro-active work in
its neighbourhood communities.
The second goal is achieved in the way that the company manages
its operations, and how it interacts with neighbours and other
stakeholder groups likely to be affected by operations.
Community relations activities are built around community consultation, research, information exchange and sponsorship programs.
Community consultation
Worsley has established two liaison committees that provide an
opportunity to share information and opinions between the company
and representatives of local communities and community groups.
The committee aims to ensure that sponsorship is spread across
a range of categories, and that all neighbourhood communities
benefit from the sponsorship program. Most requests relate to
sport, recreation and arts activities. Other groups to benefit
include those involved in community events, health, education
and the environment.
The refinery community liaison committee has been operating for
nearly three years.
Requests for larger donations are dealt with at a management
and corporate level.
The committee initially provided important input into the
development of Worsley’s air quality plan. More recently the focus
has also been on the company’s plans to increase production at
the refinery, on land management issues and the development of
community partnerships.
Organisations to benefit from regular corporate donations include
the Bunbury Regional Entertainment Centre, Collie Family Centre,
the Boddington Rodeo, Bunbury Regional Art Galleries and
City of Bunbury Eisteddfod, Dardanup Bull and Barrel Festival,
Harvey Harvest Festival, Bunbury Chamber of Commerce, St John
Ambulance sub centres and the South West Opera Company.
At the mine, the community liaison committee has also been
providing feedback on proposals to increase the rate of mining, as
well as discussing plans to move to new mining areas.
The committees meet every two months.
Community information
Worsley Alumina’s operations have a significant economic and
social impact in surrounding communities, and require a strong
commitment to manage environmental impacts.
This level of impact requires Worsley to be pro-active in sharing
information about its activities with government, neighbours,
During the past year, the guidelines for community and corporate
sponsorship requests have been reviewed. The guidelines aim
to give community groups a clear understanding of the types of
activities and projects that are considered for support, and also
provide clear and easy steps to making applications.
The Smith Family
Worsley has established an ongoing partnership with The Smith
Family to bring the ‘Learning for Life’ program to Collie. The program
helps with the education costs and support for disadvantaged
children from primary school through to tertiary level.
< 61 >
The vital signs monitor at Bunbury Hospital improves medical care for children.
In 2006, more than 100 ‘scholarships’ were awarded to families in
Collie. The Smith Family is a national organisation with branches
throughout Australia and is supported by corporate sponsorship
from BHP Billiton.
Worsley Alumina – along with other industries operating from the
Port of Bunbury – has joined forces to support an international
research project that will examine the impact of human interaction
on the local dolphin population.
A full-time education support worker has been employed in Collie
to work with local schools and families to identify children who
would benefit from the scholarships.
The project aims to evaluate the impacts of dolphin tourism in
order to implement procedures that ensure sustainable tourism. The
results will provide a guide for the development of management
policies for dolphin eco-tourism ventures across the world.
Val Lishman Health Research Foundation
The Val Lishman Health Research Foundation was established in
the South West with a brief to undertake health research which
aimed to provide direct benefits to regional areas.
Contractors get involved
Contractors involved in a construction program at the Worsley
refinery left their mark on the local community through a number
of significant fundraising efforts.
Worsley has been a strong supporter of the Foundation since it
was established. One of the key projects supported by Worsley has
On one occasion, site project managers volunteered to take
been research into Ross River Virus, a debilitating disease spread
part in a head shave day as part of the celebrations for a safety
by mosquitos. The South West is one of the worst affected regions
milestone, and as a way to raise funds for the community. As
in Australia.
a result, more than $15 000 was raised from employees and
The company is also supporting a major research program – part
contractors.
of a world-wide effort – into cancer survival rates under different
About half of the money was given to the Riding for the Disabled
treatment regimes.
Group in Collie which provides people with disabilities the
opportunity to enjoy the experience of horse riding. The money
Youth Focus
was used for maintaining the group’s 13 horses, buying hay and
Youth Focus is a West Australian, non-profit community
building a shed.
organisation working with young people aged 12 to 18 who are
showing early signs of suicide or self harm. Last year, Worsley
provided funds for Youth Focus to conduct intensive research into
this issue. The research was specific to the South West region.
The project is now moving into its second stage, with Worsley
working with the Youth Focus group and local youth workers to
identify ‘on-the-ground’ activities that address the main issues
leading to self harm.
Dolphin Discovery Centre
The dolphins that visit Koombana Bay in Bunbury have attracted
world-wide interest from tourists and researchers.
Funds were also provided to the Bunbury Regional Hospital to buy
a vital signs monitor, which allows nurses to simultaneously check
blood pressure, heart rate, oxygen level and respiratory rate for
paediatric patients.
Later in the year, contractors on site joined a major community
appeal to help two young children battling a rare brain disease.
A trial treatment involving gene replacement therapy in New York
gave the family a glimmer of hope but the costs were enormous.
Contractors and employees at Worsley donated more than
$20 000 to the family to help with the cost of the treatment.
< 62 >
case study
EMPLOYEE INVOLVEMENT AT BHP BILLITON ALUMINIUM, RICHARDS BAY
Employee involvement in uplifting communities in the Zululand
region surrounding the Hillside and Bayside smelters is a key
component of the sustainable development strategy.
An Employee Involvement programme serves to encourage
employees to go out and get involved in community activities.
The Company supports their initiatives in a number of ways,
including through a Matched Giving Programme, in terms of
which the Company matches the employees’ contributions.
Gone are the days when employees would go away on costly
team-building exercises and events which would involve
spending time and money on entertainment. Instead teams
select community projects in which they interface with the
community and build spirit under very different conditions.
Employee involvement – which includes time, money, energy,
expertise, and leadership – gives the Company the reach, the
power and the talent to build stable and cohesive societies and to
make a difference in the communities where our people live and
Employees help out at the SPCA.
work.
Over the past two years, as teams and as individuals, BHP
Billiton employees have devoted thousands of volunteer
hours participating in community projects such as school and
playground clean-ups, doing maintenance and assisting at
HIV/AIDS clinics, visiting patients in local hospitals and old
age homes, delivering meals to the sick, and refurbishing and
renovating creches and youth recreational facilities.
The benefits of employee volunteering include:
• employers demonstrate their commitment to helping the
local community while developing skills and morale within
their workforce
• employees feel an increased job satisfaction and pride in
giving back to society
During 2005-2006, the following institutions benefited from
employee involvement:
• Richards Bay Family Welfare Society
• Thuthukani Special School for Handicapped Children
• Bevies Aids Orphanage
• Isibonela - Feed the Children Zululand
• Bhejane Junior Primary School
•Mbuyewezulu Creche
• Thandakuphila Aids Drop-Off Centre
• Ngwelezane Creche
• Phakamisani Creche
• departmental teams from the smelters have access to expertise • Ethembeni Care Centre
and energetic volunteers to carry out much needed work
• Khongisa Youth Orchestra
• helps to break down barriers in society and contributes to
• SPCA
an increased understanding of social issues
•Aids Pin Project
• it is fun and can offer a welcome break from the daily work
routine
The smelters also participated in Employee Volunteer Week
in March 2005 and March 2006. The CSI department actively
• the smelters improve their public image
encouraged
teams of employees to participate by selecting a
• increases employee commitment and motivation
charity and completing a project. The support offered by the
• enhances the skills of employees
smelters included allowing employees to take time off work
• improves levels of recruitment and retention – because
to do volunteer work, allowing access to company resources
employee volunteering creates a positive culture
and matching volunteer hours with cash contributions to the
institutions concerned.
• encourages innovation.
< 63 >
case study
Innovative restorative justice programme, Zululand
Crime is a huge social preoccupation in Central Zululand and
South Africa. The press and media are full of references to crime
in the social environment from which the Company’s employees
are drawn. Crime has a profound influence on the social
commonwealth, and therefore the cohesiveness of communities
and mental well-being of people.
Phoenix Zululand is a community-based organisation working
in the context of the criminal justice system but with a
special emphasis on prisons. Ten central Zululand prisons and
surrounding communities have been targeted.
The primary objective of Phoenix Zululand is to address the
corrosive social effects of crime, and to influence public attitudes
to this burning social issue in the Zululand region of KwaZuluNatal, where the Hillside and Bayside smelters are located. It
does this by working with serving offenders in prisons, youth at
risk and various community groups in five focus areas:
• developing program work to promote attitudes conducive to
rehabilitation and re-integration among serving offenders
Program participants.
There are several very distinctive and innovative aspects to the
Program:
• developing victim-offender mediation
• Employees of the Program are serving or recently paroled
prisoners. Appointments have been made, and the Parole
Board has been asked to parole the individual offenders
in order that they can take up their employment. While
awaiting parole, these individuals work as ‘Peer Tutors’
and as such, have accomplished some extremely impressive
training in prisons. They are required, with training and
support, to undertake leadership training under the difficult
circumstances of prison existence.
• challenging the public discourse relating to crime to
promote a deeper understanding of how crime is a social
phenomenon
• building a program for ‘Youth at Risk’ consistent with Child
Justice legislation, and
• developing professional support programs for members of
the Department of Correctional Services.
The program started work in three prisons and has since been
expanded to ten prisons in Zululand.
During the first two years, about 360 serving prisoners
participated in a variety of short-term courses. Program content
is strongly orientated to therapeutic educational practices and
has the primary aim of enabling offenders to face up to the
actions in their past lives, to want to come face to face with
their victims, and to re-vision hopeful and positive futures.
Program facilitators are now being inundated with requests
from prisoners for mediated meetings with victims.
A core of voluntary community Victim-Offender Mediators have
been trained in a cluster of central Zululand towns to undertake
restorative justice. They will form a core resource for the Parole
Board of the Department of Correctional Services as parolees
come to be reintegrated back into society.
• The Program is drawing in several people from the
community as voluntary workers. These people are often
established professionals with considerable levels of
experience.
• A variety of ways are being found to integrate prison
existence with life outside the walls and fences. The purpose
of this is to enable prisoners and communities to grapple
with the task of prisoner reintegration. An example of this
kind of activity is in the collaboration of the Program with a
community radio station to produce radio plays from within
the prison walls, devised, enacted and produced by prisoners
themselves about how youths are drawn into crime and
possible ways out of crime.
The Program, supported by BHP Billiton, is strongly in line with
the BHP Billiton Charter and Policy in that it sets out to be
innovative in tackling social issues that affect the community.
< 64 >
case study
Centre for orphans and street children in Mozambique
A Mozal employee and his wife, working voluntarily and in their
own time, have set up a centre which provides a home for 18
needy and abandoned children in Mozambique.
The aim of the project, which was initiated by Emile Muller,
Business Improvement Superintendent at Mozal, is to care for
and assist orphans, abandoned children, children with family
and social problems and children with HIV in Mozambique.
The centre currently accommodates 18 children and has five
Mozambican educators who help take care of the children.
The centre operates from a house in Matola which has three
bedrooms, two bathrooms, a large kitchen, lounge and a
big garden. A flat attached to the house accommodates the
Mozambican couple who act as managers of the centre.
Currently, four of the children in the centre are HIV positive.
Future plans include the building of a permanent centre on
5 200m2 of land which has been acquired.
Betinho (centre) with his grandparents at the centre.
The project started in November 2004 in the rented property
in Matola which initially accommodated five children. By
December 2005, 18 children were living in the centre, which is
at maximum capacity.
The Directors of the centre are Emile Muller and his wife Katy.
They take responsibility for overall planning, financial and
administrative management and liaising with social welfare
organisations and local government.
A Mozambican couple living on the premises provide day-today management, parenting and supervision. A number of local
people provide assistance with caring for the children on a
voluntary basis.
All of the children in the centre have been enrolled in school.
One of the children, Maria (12-years-old) has attended school
for the first time and can now read and write. Two of the
children have sponsorships for an international school.
The centre where 18 needy and abandoned children are cared for.
Another two, Chica and Marina (aged 5 and 2) were brought to
the centre by the police. They both had TB and had been living
on the streets with their mother. They have both recovered and
are living happily in the centre.
Their mother has recently started to volunteer and help as
an educator at the centre. The children that are HIV positive
receive daily care and treatment.
This project was started with minimum resources – the key
ingredients driving it were the willingness, vision, belief and
perseverance by all involved to change the lives of the children
in need.
The directors of the centre have engaged with social welfare
and the police from the beginning to share their vision and
build relationships, and as a result have been able to call on
their help and assistance in times of need. With their help the
grandparents of one of the boys (Bethinho) was located, though
he will continue to stay in the centre as the grandparents are
not able to look after him.
< 65 >
case study
energy challenge, south western australia
South West Australian schools have agreed to participate in a
unique energy challenge which aims to reduce their electricity
bills by 20 per cent over the next five years.
The schools will cut back on their use of energy from fossil
fuels by installing wind turbines, and photo voltaic cells, and by
focusing on energy saving practices. The use of biodiesel as an
energy source is also being investigated.
The supply and installation of equipment for the energy
challenge is being funded by Worsley Alumina.
The initiative for the Worsley Energy Challenge came from
the South West branch of the Australian Association for
Environmental Education and has been supported by the four
schools, and Edith Cowan and Curtin universities.
Association spokesman Richard Jeffreys said that schools were
actively teaching students about environmental sustainability,
but few schools provided practical opportunities to implement
what was being taught.
“By promoting this through local schools we hope that students
will carry the energy efficiency message home to their families
and to the general community.”
The Energy Challenge is encouraging schools to reduce energy consumption.
Worsley Alumina general manager Pete Wilshaw said that
energy efficiency was a significant economic, environmental
and social issue for the company, and that the project provided
an opportunity for Worsley to extend its support for energy
efficiency to neighbourhood communities.
The equipment will be capable of generating between 3kW and
4.6kW of renewable energy at each school. It is expected that
the 20 per cent target will also be achieved through additional
energy conservation practices, technology and behaviours at
each school.
case study
YOUTH DRIVER development program IN worsLEy
The number of young drivers killed on local roads is a major
social issue among communities in the South West region of
Australia. Road statistics show that 34 per cent of serious
injuries and fatalities on local roads occur among 17 to 24-yearolds – even though they represent only 13 per cent of drivers.
In 1998, Worsley responded to mounting community concern by
initiating a program which has now become the benchmark for
youth driver training in the state. Worsley used the expertise
and knowledge from its own employee driver training program
- introduced in 1984 - to improve driver safety. The company
also promoted the establishment of a community committee to
harness the skills and resources needed to run the youth driver
training scheme.
The Youth Driver Development Program (YDDP) is aimed at 15
to 16-year-olds about to apply for learner driver permits. The
comprehensive program provides practical training and aims to
reduce crash risk through modifying young drivers’ attitudes,
education and teaching an understanding of basic driving skills.
The program delivers 20 hours of training in safe, off-road
locations by qualified instructors. It was rolled out in Bunbury,
Collie and Busselton under the Road Skills Australia banner.
Other South West mining companies, private companies and
local governments have since joined Worsley by providing
financial support through the WA Chamber of Minerals and
Energy. The program captured the attention of the state
government, which granted further funds through the office of
Road Safety.
The high visibility and success of the program has also attracted
the attention of other communities in Western Australia, and the
program has now been rolled out in Kalgoorlie and Mandurah.
Worsley Alumina has also hosted summer schools at its refinery
near Collie in a bid to meet the growing demand for the course.
More than 2000 youths have graduated from the program
and research from Edith Cowan University and feedback from
students and parents suggests that it has a beneficial effect on
modifying attitudes and behaviours of young drivers.
< 66 >
case study
oz moz project, WORSLEY and MOZAMBIQUE
The Oz Moz project is a shining example of the rewards that can be
achieved through the co-operation of two BHP Billiton operations
thousands of kilometres apart, and in two different cultures.
The Oz Moz project grew out of an idea from a group of
Worsley Alumina employees who believed they could use
existing BHP Billiton networks to forge closer friendships
between Australia and Mozambique. Employees in Mozambique
quickly became enthused with the idea and began to help.
The Worsley employees developed an idea to send clothes,
books and other donated goods to needy communities in
Mozambique in time for Christmas 2005. The plan was to fill a
container to be transported on one of the many alumina cargo
ships sailing from the Port of Bunbury to the Matola harbour in
Mozambique.
Worsley employees with donated items.
Staff at the refinery and the Boddington bauxite mine rallied
to a call to donate second hand, surplus goods to fill the large
container. Worsley Alumina’s logistics staff liaised with BHP
Billiton colleagues in The Hague and with industry contacts to
secure an agreement from an international ship owner to carry
the container.
Bunbury trucking company, Giacci provided staff and a truck to
transport the container while P&O loaded the container using
Alcoa-owned ship loading facilities.
Employees worked in their lunch hours and after work to sort
through more than eight tonnes of donated goods in order to
meet a November 24 deadline when the ship was scheduled to
sail. Although initially an employee project, Worsley contractors
and the local community soon heard about the project and
thousands of additional items were sent in trailer-loads to
Worsley Alumina to add to the container.
The container is on its way to Mozambique.
Meanwhile, staff at Mozal were liaising with trucking companies
to transport the container to the Mozal Community Development
Trust. Mozal employees then set about distributing 8 800 items
of clothing, 2 400 books, 1 300 toys and 18 bicycles, as well as
strollers, beds, wheelchairs, sewing machines, computers and a
stove to orphanages and aged care centres.
The project has continued to foster relationships between the
employees and the communities in the two countries, and
many presentations on the project have been shared with
company and community audiences. This has strengthened the
ties between the employees of the two operations and raised
awareness about community issues in Mozambique.
< 67 >
economic
Socio-economic: Our people and our neighbours
The socio-economic aspects of our operations relate to how
we manage our people and contribute to the economies
within which we operate.
Employees have the right to be represented by trade unions at
all the operations. The level of union representation varies from
operation to operation. Employees are engaged on staff contracts
and are remunerated under a site-specific Staff Salary and Benefit
Systems. The organisational culture is collaborative in nature and
the structure promotes employee participation in various teams
and committees, particularly with reference to HSE issues.
Our priorities are:
• relationships with our employees and contractors:
development of our leaders; diversity, including indigenous
employment; training; remuneration and other benefits of our
employees
Regular interface meetings are held with unions, and management
consults with union representatives over a wide range of issues.
Where appropriate, union members are included in various
organising committees to ensure union representation.
• economic contribution to society: the payments we make
to governments, including taxes and royalties, and the added
value we provide as a result of our operations and their
broader contributions through aspects such as payments to
suppliers and employees.
All five operations subscribe to the BHP Billiton code of business
conduct, which specifies corporate governance standards. The code
is communicated regularly to ensure a high level of understanding.
Employee relations
Employee relations at BHP Billiton is the responsibility of local and
business unit management. Each business is required to:
• implement employment arrangements that deliver outcomes
consistent with the BHP Billiton Charter, Sustainable
Development Policy and Guide to Business Conduct
• build open and productive relationships with employees and
provide processes to address workplace issues in an equitable
manner
• ensure that employees have the opportunity to develop skills
that allow them to contribute to business success, and are
recognised and rewarded for those results
Training and education
All the Aluminium operations have implemented documented
training programmes specifically directed at employee
development and capacity building. Training is targeted at meeting
individual development needs identified through performance
management programmes.
All the operations utilise talent management and succession
planning systems, and offer traineeships and or apprenticeships
depending on their operational requirements.
• support fundamental human rights and freedom of association
and ensure legal requirements governing employment are fully
met
• respect local legislative requirements and other local standards
and circumstances.
Employment practices
Bayside and Hillside set Employment Equity targets to ensure that
the employee race and gender profile reflects the demographics of
the area. Both smelters run accelerated development and graduate
development programmes to assist with meeting these targets.
Mozal runs development programs to ensure that the workforce
becomes more localised. Six percent of the current Mozal
workforce are expatriates.
All operations provide medical cover for employees and their
immediate families.
All operations provide financial assistance for the education of
employees and their family members.
Participants in the BHP Billiton Southern African Development Programme,
which aims to develop a future generation of managers in the resources and
processing industry.
< 68 >
School girls are hosted
at Hillside and Bayside
as part of a program to
provide an insight into
different career paths.
In addition to the above, Bayside provides adult basic education
courses for Zulu-speaking employees who require it.
Diversity and opportunity
There has been a marked increase in the number of women middle
managers over the past three years at all Aluminium operations.
However, increasing the number of women in senior management
positions, remains an objective.
Left: Etelvina Mausse,
Mozal's first female
superintendent.
Issues such as harassment, non discrimination and equal
opportunity are covered within the BHP Billiton Guide to Business
Conduct and as such, all operations are obliged to adhere to and
report on adherence to these requirements.
Black Economic Empowerment
A Black Economic Empowerment Procurement Policy has been
implemented across Aluminium CSG sites in southern Africa
since 2003. The Policy attempts to address the socio-economic
imbalance by increasing the participation of previously
disadvantaged groups. It has been rolled out to Aluminium CSG
sites throughout the country. In addition a central BEE Supply Unit
has been established.
The objectives of the Supply Unit are to provide access by black
suppliers to the Company’s procurement activities, and to ensure
that all buying organisations within the Group have the support
to successfully achieve legislated procurement targets.
The benefits of these objectives are being realised through
increased understanding of the issues surrounding encouragement
of BEE involvement, and closer monitoring and reporting of the
engagement of BEE suppliers.
< 69 >
All operations prohibit
discrimination on racial
grounds.
Human rights
Strategy and management
All aluminium operations have developed HR policies and
procedures that are aligned with the BHP Billiton Charter and
Guide to Business Conduct, and which protect and uphold human
rights. A few examples of clauses relating to human rights are
given below:
• no operation utilises child labour, nor uses suppliers that
utilise child labour
• no operation utilises slave labour or prison labour, nor pays
lower salaries or wages than the country’s specified minimum
• all operations permit freedom of association and prohibit
discrimination on any grounds, for example race, gender,
belief or sexual preference, etc.
All the operations endeavour to give business to local vendors,
and these vendors are assessed to ensure their adherence to
a number of criteria including adherence to health and safety
standards and human rights issues.
Disciplinary practices
All operations have formal disciplinary and grievance procedures.
Disciplinary sanctions are monitored to ensure consistency of
application within the operation. No sanction impinges on the
individual’s human rights. Examples of disciplinary sanctions,
which depend on the seriousness of the transgression, are oral
or written warnings, counselling, transfer to a lower status or
position of responsibility, suspension or dismissal. No operation
tolerates any form of punishment or retaliatory action.
Society
Bribery and corruption
The BHP Billiton Code of Business Conduct specifically forbids any
form of bribery; this includes the offering of a bribe to obtain a
service, or the receipt of a gift, by an employee from a supplier,
with the intention of obtaining preferential treatment.
With regard to the exchange of gifts the guide specifies that these
must be moderate in nature, and the emphasis is on transparency.
Any gifts accepted should be declared to the next level of
management, and the receipt should be recorded in a register.
Respect for privacy
The following is extracted from the BHP Billiton Guide to Business
Conduct:
“All employees are required to protect proprietary, commercial
and other information that is confidential. These obligations
of confidentiality continue after an individual’s employment
with BHP Billiton ends.
Confidentiality provisions are included in contracts with
consultants, contractors and other parties who provide services.
BHP Billiton will only collect personal information from its
employees ethically and lawfully. People collecting personal
information on behalf of the company must inform the
persons involved why the information is being collected, and
must ensure that the confidentiality of personal information
contained in records is strictly maintained.
Political contributions
BHP Billiton maintains a position of impartiality with respect to party
politics. As a result BHP Billiton does not make any contributions to
political parties, politicians or candidates for public office.
BHP Billiton will contribute to the public debate on issues that
affect the company in the countries in which it operates.
Personal information must not be disclosed unless it is a
requirement for that person to do their job.”
This policy does not prevent individual employees from making
personal contributions, in their private capacity, to political
parties, nor from participating in political activities, provided that
they do not use company resources, take place in company time,
and provided that the individual makes it clear that he or she is
participating in a personal capacity.
< 70 >
case study
implementing Black Economic Empowerment at Hillside
The relationship between Hillside Aluminium and Yandisa
Tony’s Construction (YTC) highlights the success of BHP Billiton
ASA’s strategy of transforming and growing Black Economic
Empowerment (BEE) companies in its emerging market.
YTC was founded in 1995 as Tony Marreiros Construction cc
to provide engineering and construction services, including
specialised and complex rigging. These services have been
procured by Hillside and Bayside for the past ten years.
As part of BHP Billiton ASA’s BEE strategy, Hillside teamed up
with the engineering company to help with its transformation.
Hillside provided constant mentoring and support which
allowed the engineering company to grow. Tony Marreiros saw
the benefits and in 2005 sold 51% of the company to black
partners Ambrose Msiza and Dumisani Dlamini. This led to the
establishment of Yandisa Tony’s Construction.
The two new partners were not ‘fronts’ for transformation, and
brought a wealth of experience in their respective fields into the
business.
Ambrose Msiza is the Managing Director of YTC. A mechanical
engineer by profession, he holds a Government Certificate of
Competencies (Mines) for Mechanical Engineers and 17 years’
experience in engineering including management, maintenance,
design and projects. Dumisani Dlamini is an experienced
marketer and is the Marketing Director of YTC.
In addition to its ownership profile, the company demonstrates
employment equity in that 52 per cent of artisans employed are
drawn from previously disadvantaged backgrounds.
Ambrose Msiza, Mishanth Ardithpersad and Kersten Venter in front of the
YTC mobile crane.
This year the business coming from Hillside, Bayside and
surrounding customers has increased significantly. The
government is also acknowledging their efforts by subsiding 75
per cent of their marketing costs, and 75 per cent of their ISO
accreditation costs.
Yandisa, the Zulu word for “growing together” is an appropriate Future goals include a joint venture with Hillside Aluminium to
name given the growth which the newly formed partnership is
start a training centre, targeting scarce skills in the area such as
beginning to experience.
boiler making and welding.
< 71 >
case study
Helping Zululand crafters to build
capacity and alleviate poverty
The Hillside and Bayside smelters are strategic supporters of
the Zululand Crafters Association (ZCA) through the Community
Social Investment programme.
The ZCA is a non-profit organisation formed in 1995 to help
local crafters develop viable, income-producing businesses
that can sustain their families and assist the advancement of
women, the disabled, and young people in rural communities.
There are 76 groups of crafters currently affiliated to the
ZCA. Through support from the smelters, the Association
operates with a management body, a coordinator, trainers
and volunteers. It is located in a new centre which includes an
exhibition area, conference room and training facility, and has
other outlets thrughout Zululand.
A training program funded by the smelters enables the crafters
to attend workshops that address topics such as business skills,
production, pricing, packaging and customer care. To date,
more than 1 100 people have attended the training courses.
In addition to providing financial support, the CSI team visits
the centre on a regular basis, facilitates exhibitions, open
days and monthly craft markets and actively seeks marketing
opportunities.
The CSI team played an integral role in setting up a networking
system for the ZCA, which links crafters with markets,
businesses, community forums and government departments.
Orders have been received from local governments, and from as
far afield as the UK and Germany.
Zululand Crafters Association display of traditional craft items.
The smelters’ support of the ZCA is helping
to keep traditional crafts alive while also
providing opportunities for rural communities
to become sustainable through selfemployment.
Zululand crafters at work.
< 72 >
case study
Fish farming at MRN, Brazil
The aim of the project is the production of tambaqui (fresh
water fish) in net tanks, taking full advantage of the natural
resources available in the region, thereby creating an additional
source of food and income for local communities.
The project also has considerable environmental benefits as
the preservation of the indigenous fish species ensures that the
balance of local ecosystems is maintained.
The beneficiaries of the project are the families living in riverside
communities neighbouring the MRN operation on the banks of
the Trombetas, Amazon and Inhamunda Rivers. Most of these
communities are engaged in small scale fishing, subsistence
agriculture and collecting fruits and seeds from the forests.
The project involves 10 communities and benefits approximately
200 families which survive on an average monthly income of
around $28 (20 per cent of Brazil’s minimum wage).
Fish farming (above and below) provides a source of income and
protein for local communities.
The project provides start-up equipment and training for the
development of fish farming. Since 2003 MRN has employed a
biologist, who specialises in fresh water fish farming, to provide
training and advice for community members.
In the first phase of the project MRN supplies three pools for each
community participating, fish fingerlings and a supply of fish food for
the early stages of growth. Each tank has a capacity for 1 300 fish.
Up until 2005 the catering company managing MRN’s canteens
purchased the entire production, yielding revenue of $17 000 for
the communities.
Since the beginning of 2006, when production almost doubled
in relation to the first cycle, the fish are also being traded at the
fish markets in surrounding towns and villages.
The project commenced in 2002 and has yielded 12 harvests to
date.
The project is a model for development and there has been
growing interest from other communities and from local
government who wish to replicate the project elsewhere
MRN’s vision in supporting this project is to prepare the local
people for the future by helping them to develop a means of
support that does not depend on mining activities.
< 73 >
case study
Promoting SME development in Mozambique
Since 2002, Mozal has increased spending with Mozambican
companies from around $6 million per month to more than
$15 million per month.
This significant increase is the result of a focused drive by
Mozal's operational areas and procurement department to
award contracts to Mozambican suppliers who comply with the
Company's HSEC and business conduct principles.
In addition, Mozal has continued to pro-actively support
programs and initiatives aimed at building the capacity of
small and medium enterprises (SMEs). One such initiative is the
Mozlink SME Development Centre, which provides SMEs with
training in safety, maintenance, quality and management.
Mozlink II
Following a benchmarking exercise with the International
Finance Corporation (IFC), a new strategy to build on the
benefits being derived from the existing Mozlink program was
adopted in an effort to further accelerate the growth of the
Mozambican economy. The first step was to analyse the supply
chain together with other big Mozambican companies in order to
identify materials and services currently purchased from outside
Mozambique that could potentially be provided from within
the country. Then SMEs could be equipped and developed to
manufacture the materials or deliver the services locally.
Tailoring personal protective clothing at Faumil.
The first contract package under the enhanced Mozlink program
has been awarded to Faumil, a personal protective clothing
(PPC) manufacturer. The PPC is made from a specialised material
needed for hot metal work at Mozal. Previously, the clothing
was procured from outside Mozambique. Through Mozlink II,
the existing supplier has transferred garment manufacturing
skills to a Mozambican SME. Although the material is still
The Mozlink II concept has been put into practice and five
purchased outside of Mozambique, the garments are tailored
companies — Sasol, Cervejas de Mocambique, Banco Austral,
locally, boosting the economy by around $500 000 and further
Corridor Sands and Maputo Port — have enthusiastically
building capacity. It is anticipated that the value of the contract
committed to join with Mozal in advancing the program.
Meetings are currently being held on a monthly basis to further for the total project could grow to around $5 million per annum
analyse the supply chain, to identify opportunities and find local within two years.
SMEs that have the potential to become suppliers.
The Global Linkages Unit Manager of the IFC, Sujata Lamba,
has noted: “The IFC considers the Mozal Linkages Program
The range of commodities that can potentially be supplied by
Mozambican SMEs includes abrasives and welding consumables, a pioneering program and an example of best practice in
supporting supplier linkages, one which has been shared with
adhesives and sealants, airconditioners, auto batteries,
colleagues from around the globe. However, we always note
bearings, cleaning consumables, corporate clothing, corporate
that the project would never have been successful had it not
gifts, fasteners and springs, hand tools, office furniture and
been for the commitment and participation of Mozal and its
equipment, personal protective clothing and equipment, scrap
recycling, signs and display boards, stationery, tyres and tubes. parent BHP Billiton.”
< 74 >
Economic contributions
Aluminium
BHP BILLITON CSG COMPARATIVE PERFORMANCE 2006 ($ MILLION)
Record annual production volumes for aluminium was achieved.
Underlying EBIT was $1,191 million, an increase of $232 million, or
24.2 per cent, compared to last year. Higher prices for aluminium
and alumina had a favourable impact, with the average LME
aluminium price increasing to $2,244 per tonne (compared with
$1,804 per tonne for the corresponding period).
Revenue EBIT Capital Net
expenditure operating
assets
Earnings from third party trading were also higher. Earnings were
adversely impacted mainly by higher charges for LME linked power,
raw materials, fuel, labour and pot relining, in line with global
supply pressures. Exchange rate movements in the period also had
an unfavourable effect on EBIT, particularly on the earnings derived
from our Brazilian operations. The write-down of $50 million of our
interest in Valesul to fair value, in line with the value achieved on
its subsequent divestment, was also a factor.
Base Metals
1,606 6,905
1,124 7,420
10,294 5,400
861 9,419
Energy Coal
3,319 327
131 3,018
Stainless Steel Materials
2,955 901
1,423 5,692
202 1,630
Diamonds and Specialty Products
��
��
��
��
��
��
��
��
��
LME Price
��
��
��
��
��
��
��
��
��
��
��
��
��
< 75 >
��
��
��
�
��
��
��
��
��
�
��
�
��
��
�
��
�
��
�
��
��
��
�
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
Alumar
In December 2005, we approved a project to expand the refinery,
which will increase annual alumina production capacity by 2.0 mtpa
(0.7 mtpa our share) to 3.5 mtpa (1.3 mtpa our share). We have
estimated that our share of this investment will total $518 million.
345
��
�
Suriname
The joint Venture is currently developing the Kaaimangrasie and
Klaverblad deposits, which will replace the current Lelydorp and
Coermotibo operations upon depletion. The Kaaimangrasie mine
will be in operation as from 1 July 2006.
1,263 Aluminium Customer Sector Group
Earnings Before Interest and Tax (EBIT)
��
development Projects
Worsley
In 2004, we commenced the $192 million ($165 million BHP
Billiton share) Worsley Alumina Development Capital Project
(DCP). The DCP, which is now mechanically complete, will result
in a 0.25 mtpa increase in alumina production (0.215 mtpa our
share) to 3.5 mtpa. Ramping up to full production is currently in
progress and we expect the final costs to be close to budget.
5,895
4,503
9,760 ��
In August 2006, the Aluminium CSG completed the sale of its
45.5% interest in Valesul Aluminium SA Joint Venture to its joint
venture partner, Companhia Vale do Rio Doce (CVRD).
377 Petroleum
5,876 2,968
Carbon Steel Materials
��
Despite the higher costs, EBIT margins improved significantly in
the second half of the year. This improved translation of rising
aluminium and alumina price into higher net earnings, despite the
current environment of rising costs, reflects an intensive focus on
cost containment.
5,084 1,191
Aluminium
HSEC awards
BHP Billiton holds an annual awards
function to recognise individual and team
efforts globally in the areas of health,
safety, environment and community work.
The Aluminium CSG was well represented
with 66 submissions to the awards. The
table at the bottom of the page lists the
Aluminium CSG winners.
HSEC AWARD NOMINATIONS PER CSG
Aluminium 66
Base Metals
111
Carbon Steel Metals
111
Corporate
8
Diamonds & Specialty Products 10
Energy Coal
21
Petroleum
25
Stainless Steel Materials
13
Total
365
Aluminium CSG Award recipients at the 2005 HSEC Awards function.
Site Name
Nominee
Category
Project Case Study
Bayside
Jannie Kleynsmith
IndividualUpgrading of Lock, Test & Tag System
Excellence
Jannie Kleynsmith was nominated for his excellent work in
upgrading the Lock, Test and Tag system at Bayside, to align the
organisation with the requirements of the Fatal Risk Control
Protocols on Isolation. Jannie was responsible for revising current
documentation, and developing supporting documentation and
training materials that were practical, visual and user-friendly. This
resulted in a high level of understanding and buy-in by employees
and contractors during the rollout process.
Mineração Rio do Norte (MRN)Ademar Cavalcanti Filho
Environment
Implementation of the Brazil Nut (Bertholletia excelsa, Page 52
Lecythidaceae) Germplasm Bank at Saraca – Taquera National Forest
Alumar
Emanoel Varao
Environment
Transforming a waste into product: Coal fine reuse at cement plants Page 50
as a secondary fuel
Mozal Ramiro Roy
Health
Reducing dust and noise generation during Metal Ladle Lifting Beam Page 24
(MLLB) test
Mozal
John Christowitz
Safety
Reducing road transport risks
Page 36
Mineração Rio do Norte (MRN)
Jose Haroldo Paula
Community
Fish Farming Development Program
Page 75
Mozal
Frans-Jozef Jaspers
CommunityMozlink II: Joined Supply Chain Analysis in Mozambique
Mozal
Salvador Traquino
Community
Valesul Aluminium*
Ladiera Victor Drought relief program to ensure sustainable food supplies and
alleviate poverty
EnvironmentValesul Volunteer Program
Valesul Aluminium*
Sebastiao Rodrigues HealthManagement of Health risks at Valesul's Horizontal Direct Chilled
casting machine
* Valesul was still part of BHP Billiton during the reporting period.
< 76 >
Page 68
Page 60
Statistics for the financial year 2006
BMS
Production
tonne
Worsley
4,908,613
3,211,988
Bayside
Mozal
176,494
Hillside
557,393
Aluminium CSG
700,089
RevenueUS$ million
5,084
EBITUS$ million
1,191
Capital investmentUS$ million
377
Net operating assestsUS$ million
5,895
HSEC Management Standard Score (0-5)
3.3
3.8
3.9
4.2
4.2
3.9
% compliance
90.4
82.3
88.0
96.0
87.9
88.9
Land in use
ha
311,502
273,967
150
140
144
585,903
Land rehabilitated during year
ha
78
112
0
0
0
190
Total energy consumed
GJ
1,427,556
35,368,519
14,077,229
37,141,394
47,147,198
135,161,896
Electricity
GJ
93,960
282,056
10,396,152
28,627,120
35,431,331
74,830,619
Coal & Coke
GJ
16,443,116
2,810,894
7,412,693
10,268,480
36,935,183
Natural gas
GJ
11,165,915
820,315
1,036,982
1,397,149
14,420,361
Distillate & others
GJ
1,333,596
7,477,432
49,868
64,599
50,238
8,975,733
Water consumedMl
764
6,498
1,096
519
404
9,281
ton
1,189
6,988
43,002
22,230
48,272
121,682
%
8
42.8
76.4
80.7
80.8
76.3
FRCP Waste (excluding mineral waste)
Waste recycled
Greenhouse gas emissions
tonne CO2 eq
Including electricity
121,370
2,550,605
4,120,288
9,422,747
11,579,490
27,794,499
Excluding electricity
97,410
2,253,600
1,096,740
1,097,026
1,274,878
5,819,654
0
10,576
4,021
11,946
11,161
37,704
20
357
249
354
980
Sulphur dioxide
tonne
Fluoride
tonne
Environmental complaints
4
24
12
0
1
41
Environmental spendingUS$ thousand
3,310
6,462
104
211
207
10,296
Total employees
2,243
2,738
1,019
1,126
1,079
8,205
CIFR
1.60
5.29
1.54
1.15
0.75
2.10
TRIFR
2.70
8.10
4.25
2.30
3.20
4.12
Occupational illnesses
8
0
3
0
3
14
Number of HSE professionals
37
22
11
17
10
97
Training
hr/employee
40.7
119.4
0.0
0.0
32.0
55.2
Community contributions "1"US$
339,204
504,195
4,579,620
2,730,315
4,579,620
8,153,333
Arts
52,238
9,750
44,164
78,512
44,164
184,664
Community Welfare
13,670
39,176
664,254
1,128,636
664,254
1,845,736
Education
202,252
27,510
1,930,644
186,259
1,930,644
2,346,665
Environment
9,874
76,859
97,162
119,907
97,162
303,802
Health
6,450
15,082
501,785
485,901
501,785
1,009,218
Sport/recreation
8,731
139,299
13,580
79,172
13,580
240,782
Other
45,989
196,519
1,328,031
651,927
1,328,031
2,222,466
Notes:
1 Note that the community contribution for Hillside and Bayside are combined into a central fund for the two smelters.
< 77 >
Glossary
$US dollar, unless otherwise indicated
AACAustralian Aluminium Council
AEIAAir Emission Impact Assessment
Anode Effect (AE)An ‘anode effect’ is a process upset condition of an aluminium electrolysis cell due to too little
alumina dissolved in the electrolyte. The anode effect is accompanied by release of CF4 and C2F6.
ASAAluminium Southern Africa
BEE
Black Economic Empowerment
BMS
BHP Billiton Maatschappij Suriname
CIFR
Classified Injury Frequency Rate
CO2eq
Carbon dioxide equivalent. The global warming potential equivalent to that of carbon dioxide
CSG
Customer Sector Group
CSI
Corporate Social Investment
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation, impairments and amortisation
FAFR
First Aid Frequency Rate
FRCP
Fatal Risk Control Protocols
FTC
Fume Treatment Centre
FY
Financial Year
GHG
Greenhouse gas
gj
Gigajoules
gwh
Gigawatt hours
ha
Hectares
HSEC
Health, safety, environment and community
IAI
International Aluminium Institute
IFC
International Finance Corporation
IUCN
World Conservation Union
JSA
Job Safety Analysis
JV
Joint venture
km
Kilometres
LME
London Metal Exchange
MlMegalitres
MCDTMozal Community Development Trust
MRNMineração Rio do Norte
mwhMegawatt hours
NGO
Non governmental organisation
PFC
Perfluorocarbon (CF4 & C2F6)
PJ
Petajoules
Protected Area Management Categories 1a: Strict Nature Reserve; 1b: Wilderness Area; 4: Habitat/Species Management Area
SA
South Africa
SME
Small and medium enterprises
SOx
Oxides of sulphur
SPL
Spent pot lining
TRIFR
Total Recordable Injury Frequency Rate
VOCVolatile Organic Compound
ALUMINIUM AT WORK
Body sheet for ships, aeroplanes, cars and high speed trains; gearboxes, motor parts
Aluminium makes a key contribution to fuel efficiency in cars, trucks, high speed rail and
sea travel. By reducing weight it cuts down on fuel consumption and emissions, without
compromising the size or safety of the vehicles. And as it reduces the weight of cars, trucks,
ships and trains, they can carry more while causing less wear and tear on road and rail
infrastructures.
Canada's LRC trains, France's TGV (high-speed) trains and the latest version of the Japanese
‘Bullet Train’ all have passenger cars made of aluminium. Fast ferries, with speeds of 3550 knots, built of aluminium are revolutionising transport over short sea routes.
High tension power lines, wires and cables
Aluminium or aluminium alloy electrical conductors are now widely used in overhead lines,
electrical energy distribution and transport cables, and energy cables for industria l use.
Aluminium is particularly suited to these uses because of its high electrical conductivity, low
weight and good resistance to corrosion. Almost all electric lights, motors, appliances and
power systems depend on a vast grid of aluminium wire. Around the world most high-voltage
overhead transmission and distribution lines and many underground lines are made of
aluminium. Aluminium replaced copper in high-voltage transmission lines after 1945 and
today is the most economical way to transmit electric power.
Roofs, walls, windows, doors, facades, staircases, heating and air-conditioning
systems, solar panels, shelving
Aluminium's formability, high strength-to-weight ratio, corrosion resistance, and ease of
recycling makes it the ideal material for a wide range of building applications. It allows a
high degree of prefabrication with a variety of finishes before components leave the factory,
thus reducing the work load at the construction site. Aluminium's resistance to corrosion
is particularly important when a component is installed in an inaccessible area.
Foil wrap, beverage cans, bottle tops, cosmetics and pharmaceutical containers
Aluminium is used extensively for the protection, storage and preparation of food and
beverages. Aluminium can be rolled into ultra-thin foils which are light, strong and have
unique barrier and insulation qualities to preserve food, cosmetics, pharmaceutical products
and protect from ultra-violet light, odours and bacteria. Aluminium packages are secure,
tamper-proof, hygienic, easy to open and recyclable. Aluminium withstands both heat and
cold. It is easy to sterilise for food and medical applications. It's an excellent barrier against
liquids, vapours and light. It transmits conducted heat, and reflects radiant heat. Less than
an ounce of aluminium sprayed on a polymer forms a thin insulating sheet that can keep a
new born baby warm or save the life of someone on an exposed mountain top.
Components for TV sets, air conditioners, radios, saucepans
Components for fridges, washing machines, kettles, cutlery
Around half the cookware sold globally each year is made of aluminium. It loses only about
seven per cent of the heat it receives, leaving 93 per cent of the heat to cook your food.
Using aluminium cookware, you only need a quarter of the energy required to heat stainless
steel or cast iron, thus saving on energy bills.
Sports and leisure
Aluminium is used in the manufacture of a wide range of sports equipment and leisure items
such as tennis racquets, baseball bats, golf clubs, indoor and outdoor furniture, bicycles.
The information in this section is courtesy of the International Aluminium Institute.
For more information, visit www.world-aluminium.org
ALUMINIUM FACTS AND FIGURES
Alumina is found in bauxite ore, which is
formed by the weathering of clay in warm
regions that experience wet and dry weather
cycles. It is found close to the earth’s surface,
and is mined by open cut excavation.
Over 90 per cent of global bauxite mined is
used to produce alumina. The remainder is used
in the refractory, abrasive and chemical
industries. Bauxite is also used in the production
of high-alumina cement, as a catalyst in the oil
industry, in welding rod coatings, and as a flux
in making steel and ferroalloys.
In 1900 annual output of aluminium was
1 000 tonnes. In 2000 it reached 32 million
tonnes, comprising 24 million tonnes of
primary aluminium and eight million tonnes
from recycled metal. This makes aluminium
the world’s second most used metal.
Abundant natural resources
7.3 per cent of the earth’s crust is made up
of aluminium compounds.
The known reserves of high quality bauxite,
the ore from which aluminium is produced,
are sufficient to provide over 300 years of
supply.
The use of mineral resources for the
production of aluminium is fairly modest –
beween four and five tonnes of bauxite are
required to produce one tonne of alumina,
and two tonnes of alumina are required to
produce one tonne of aluminium metal.
Global Aluminium Consumption
45
40
35
30
25
20
15
10
5
0
1950
1960
Primary Consumed
1970
1980
1990
Used Scrap Utilized
2000
2002
Total Consumption
engine, modified with a 30-pound aluminium
block to reduce weight – otherwise it would
However the largest known and most rapidly never have got off the ground.
growing stock of aluminium is ‘metal in use’.
This represents a permanent asset for society, Aluminium comprises about 65 per cent of
because aluminium is not bio-degradable and the structural weight of the Airbus A380.
does not rust away.
Socio-economic impacts
The aluminium industry employs more than
one million people world wide directly. Indirect Energy
Production of primary aluminium requires
employment in downstream and service
significant energy. Due to technology and
industries is approximately four million.
process improvements the average energy
The Aluminium industry can have a significant consumption and subsequent emissions per
tonne of production has fallen by 70 per cent
impact on the economy of developing
over the past century, and by 40 per cent
countries. For example, in Suriname, the
since the 1950s.
aluminium industry generates $350 million
annually, accounts for 70 per cent of the
More than 55 per cent of the world’s primary
country’s exports and is the major source of aluminium is produced using hydro-electric
foreign currency. The industry directly supports power, which is clean, CO2 free and renewable.
2 500 workers with a multiplier of four.
Average wages are about four times the
Aviation
country average, and some 90 per cent of the The Wright brothers’ first aeroplane, which flew
workforce is Surinamese.
in 1903, had a four-cylinder, 12 horsepower auto
Water
Aluminium sulphate is widely used in the
purification of waste water as well as water
from rivers, lakes and reservoirs. It is a
flocculating agent with the capacity to
coagulate and trap solid matter which may
be floating in the water; such as algae and
other organic and non-organic matter.
Medicine
Aluminium hydroxide is widely used as an
antacid to relieve gastric irritation and assist
in the healing of peptic ulcers. It has good
acid neutralising capacity and also has the
ability to absorb and reduce the activity of
pepsin.
Aluminium production and life cycle
Scrap
collection
Power
generation
Secondary
smelting
Product
line
Bauxite
extraction
Alumina
refining
Primary
smelting
Processing:
Rolling &
extrusion
Manufacturing
industry
RECYCLING ALUMINIUM
Aluminium can be recycled again and again
without loss of quality. It has a low melting
temperature and is therefore able to be
recycled with comparatively little energy. The
energy required to produce secondary ingot
from scrap is only about 5 per cent of that
required to produce primary aluminium.
About 30 per cent of the world's annual
aluminium usage is supplied from processing
scrap (post consumer scrap 50 per cent, new
scrap 50 per cent).
Aluminium used in the construction of
buildings has a very long life cycle of between
30 and 50 years. Aluminium stored in such
long life products is therefore in effect
warehoused for future use. As almost all
aluminium used in construction is recycled,
the considerable energy invested in the
production of primary aluminium can be
reinvested into other aluminium products.
Scrap may not necessarily be recycled back
into its original product or even reused in
the country in which it was first
manufactured, but the original energy
investment will not be lost. Aluminium is
therefore effectively an energy bank – the
original energy input can be recovered again
and again every time the product is recycled.
Three quarters of all aluminium ever
produced is still in productive use (516 Mt
of 706 Mt).
TRANSPORT SECTOR CASE STUDY
Reducing environmental
impacts in the transport sector
The rapid growth in the world’s vehicle fleet is
resulting in an ever-increasing use of energy,
which in turn results in increasing CO2 emissions.
As a result vehicle manufacturers and their
suppliers, seeking to find ways of reducing
environmental impacts, are turning to the
aluminium industry which helps to meet this
challenge by reducing the weight of vehicles.
The International Aluminium Institute is
engaged in a full life-cycle analysis for the
main applications of aluminium. Below is a
summary of the study report on the
automotive industry.
60 000
50 000
40 000
30 000
The substitution of aluminium for higher
20 000
density traditional materials saves 2.5 metric
10 000
tons of CO2 equivalents (878 litres of gasoline)
over the lifetime of today's average North
0
Materials Assembly Vehicle Use Maintenance End of Life
American passenger car or light truck. If the
Life-cycle assessments have shown that one use of aluminium to replace traditional
Overview of Results - USCAR AMP Project Sullivan, Williams,
kg aluminium in a car body, replacing two kg materials continues to grow from the present et al., Society of Automotive Engineers Total Life Cycle
Conference,December 1998, page 12, Graz, Austria.
average of 113 kgs to 227 kgs the potential
of steel, saves about 20 kg of greenhouse
gas emissions (in CO2 equivalents) during the saving per vehicle would increase to 5 metric
tons of CO2, the equivalent of 1 756 litres of
life of a car.
gasoline.
manufacturers to enable the easier dismantling
Moreover, if 1000 kg of greenhouse gas is
of aluminium components from cars in order
saved by the use of less petrol in a lightStudy report summary
to improve the recovery of aluminium.
weight vehicle, this also means a reduction
Recycling rates for transport applications
The
report
concluded
that:
of other potential environmental impacts,
range from 60-90 per cent in some
• Each kilogram of automotive aluminium
including:
countries. In 1997 over 4.4 million tonnes
replacing traditional higher density
of aluminium was used in the transport
• 15 800 MJ of crude oil resources
materials can save a net 20 kgs of CO2
sector and the use of aluminium in
• 933 kg of water
equivalents due mainly to the efficiencies
automobiles is increasing year upon year.
of lightweighting. The magnitude of this
• 1.8 kg ethylene equivalents of ozone
saving is influenced by a critical set of
Improvement in vehicle operation represents
forming hydrocarbons
factors such as the average distance a
the largest opportunity to minimise the
• a saving of 2.1 kg SO2 equivalents of
vehicle is driven over its lifetime, fuels
greenhouse gas implications of automotive and
acidification potential.
savings that result from lightweighting, other transportation products. The following
The global use of aluminium in the automotive
and the substitution rate of aluminium
graph compares CO2 emissions throughout a
sector has increased from 3.9 million tonnes
for other heavier materials. The impact vehicle’s life, from its materials and assembly
in 1991 to nearly 7.7 million tonnes in 2003.
of these factors was evaluated using a
to the vehicle's use followed by its maintenance
This has the potential, over the lifespan of
multi-parameter sensitivity analysis and and end-of-life processing.
the vehicles, to reduce overall GHG emissions
the CO2 savings were positive under all
by 155 million tonnes CO2 equivalent
sets of assumptions.
(assuming that all the aluminium was used
• Recovering and re-melting aluminium
to replace denser materials).
automotive scrap saves more than 95 per
The GHG savings of light-weight buses, longcent of the greenhouse gas emissions
haul trucks and trains, which typically cover
associated with primary aluminium ingot
much greater distances than passenger cars,
production. The aluminium industry is
is therefore much greater.
working closely with the automobile
BAUXITE
MINING
Pre-mining Preparation
Before mining begins, flora and fauna surveys are undertaken, land contours mapped, water quality
analysed and soil hydrology and composition recorded so that the land can be rehabilitated to its
natural state after mining is complete.
Dredging
Forest timber is salvaged and milled or used as firewood.
Commercial timber is harvested, and stumps, logs and forest floor
litter are set aside to be used later in the rehabilitation process.
Primary stripping
Secondary stripping
Swamp
Bauxite
Bauxite
The bauxite mining process commences with dredging
where required.
Primary stripping is conducted by a bucket wheel
excavator.
Scrapers and excavators expose the layer of
bauxite
Bauxite
A layer of topsoil and gravel overburden is removed
from the bauxite ore by scrapers and excavators. This
overburden is directly backfilled into previously mined
areas, or stored for later use.
Bauxite
Drilling and blasting
A dragline is used for secondary stripping.
Bulldozers rip up the softer
layers of bauxite ore exposed
by the drilling and blasting
Bauxite
The hardcap layer of bauxite ore is drilled and blasted.
Bauxite
Large bulldozers rip into the softer layers of ore
exposed by the drilling and blasting. The bauxite layer
varies from two metres to 12 metres deep. The mined
bauxite is transported to the refinery.
Land Rehabilitation
Scrapers spread gravel overburden from newly mined
areas or stockpiles. Topsoil, which contains organic
matter and native seeds, is spread as the final layer.
Forest litter including logs, leaves and rocks, collected
before mining, is then distributed over the topsoil.
This helps re-establish habitats for soil conditioning
invertebrates like ants and for reptiles, which are
quick to move into rehabilitated areas. It also provides
habitats for burrowing animals once rehabilitation
cover has been established.
The land profile is re-established by
grading pit walls in mined areas. Stored
topsoil is used for the final layer
Worsley's mining lease covers the eastern jarrah forest
and private land near Boddington. Rehabilitation work
aims to re-establish a self-sustaining native forest.
Specific goals include preserving recreation, conservation,
landscape and hydrology values.
Hand-planting programs
re-establish tree, shrub
and groundcover species
Initial earthworks loosen compacted areas and begin
shaping the pit to reflect the surrounding landscape.
The entire area is then contoured and ripped to loosen
the clay base, improve water drainage and promote
root growth.
The last stage in preparing the area for seeding is
scarification, which involves "scratching" the topsoil
to encourage growth. Locally collected seeds are
spread by hand, and seedlings are planted.
Alumina is extracted from bauxite using the Bayer Process,
which dissolves alumina in solution, and separates it
from the red mud residue. There are four main stages
in the process: digestion, clarification,
precipitation and calcination.
Hopper
Mill
ALUMINA
REFINING
Rod Mill
Digestion
Bauxite storage
Lime
Steam
Digesters
When the bauxite arrives from the mine it is finely
ground in a mill and mixed with hot caustic soda to
form a slurry. The slurry is heated to remove any
contaminants that can form scale on the inside of
the pipes.
Blow Off
and Heat
Exchanger
Caustic
Soda
Slurry Mixer
Clarification
The alumina is dissolved into the slurry in digester
vessels through a combination of pressure and heat.
The temperature and the pressure at which the slurry
is put into the digesters depend on the bauxite and
on the type of process. (The gibbsitic bauxite mined
at Worsley does not require the higher temperatures
used for other forms of bauxite.)
The clarification stage separates the alumina dissolved
in the liquor from the red mud residue. This is done
by settling. Liquor is pumped into settling tanks where
a settling agent is added.
Precipitators
Heat Exchanger
Thickener
and Washer
Filter
Mud
Red Mud Disposal
Precipitation
The mud bonds with the settling agent and sinks to
the bottom of the tank where it is removed. The
floating liquor is then filtered and sent to precipitation
tanks. The red mud residue is washed to recover any
alumina not in solution, which is returned to the
process. The caustic soda is also washed from the
red mud before it is stored in specially built bauxite
residue disposal areas.
Classifying
Thickeners
This stage marks the beginning of the ‘white side’ of
the process, where the alumina hydrate-rich solution
in the liquor has been cleaned of all mud and is no
longer red. The alumina hydrate slowly precipitates
from tank to tank as the temperature lowers.
Calcination
Filter
Calcinating
Kiln
0
Alumina
Seed
The introduction of alumina hydrate, which has already been
precipitated, speeds up the process. The liquor is filtered to
separate the wet hydrate to be washed, removing final traces
of caustic soda and other impurities.
Washed and filtered hydrate is dried in hot
air at about 600 C before being passed into
a gas furnace where it is heated to 900 C.
The extreme temperature removes water
trapped in the hydrate crystals.
The final product resembles a fine white
powder, which is approximately 99 per cent
alumina. The calcined alumina is cooled and
then conveyed using air slides to storage
silos ready for rail loading.
The refined alumina is transported by rail to
the port, from where it is shipped to smelters
around the world.
The hydrate is then calcined to remove the chemical bound
water. The remaining liquor is recycled back to the beginning
of the refinery to begin the process again.
0
Coke
Recycled
Anodes
Pitch
Paste fed into VibroCompactor Mould
Top of mould
Vibro-Compactor
Mould
ALUMINIUM
SMELTING
Cooling
Tunnel
Silo
Raw Materials
Making Anodes
Alumina, coke and liquid pitch are shipped to Richards Bay (Bayside
and Hillside) and Matola harbour (Mozal). The alumina and coke
are transported to silos at the smelters, while the liquid pitch is
transported to storage tanks.
Carbon anodes play a key role in the smelting process, and are
manufactured on site. Coke is sorted, graded and blended with
liquid pitch and used anodes which have been crushed for recycling.
The paste is moulded in a vibro-compactor.
FUME TREATMENT CENTRE
Fumes from the baking furnace are
sent to the FTC where dust, flouride
and tars are removed.
AC Current
Alumina
Silo
Molten cast iron
Baking Furnace
Anodes
Transformers
and Rectifiers
Anodes
The ‘green’ anodes pass through a cooling tunnel
and are baked for 20 days in a gas-fired furnace at
1100 C.
0
Molten
aluminium is
syphoned
into ladle
Pot Tending
Assembly
Pot
Reduction
The anodes are then connected to an aluminium stem
welded to an iron hexapod. The rodded anode
assemblies are transported to Reduction in a
specialised vehicle and installed in the reduction pots.
GAS TREATMENT CENTRE
Hot gases from Pots are sent to the
GTC which traps impurities and
fluoride
Pot
Pot
Reduction is an electrolysis process whereby
fluorinated alumina is converted into molten
aluminium in containers called pots, which are
arranged in long lines. The electrolyte, known as
BATH, contains alumina powder, aluminium tri-fluoride
and cryolite.
Pot - Cross Section
Feeder adds
flourinated
alumina
Cover
Bath
Anode
Electrolyte
Molten aluminium
Ladle
Ladle
Cathode
Aluminium
DC Current
Electrical energy passes through transformers to
reduce the voltage and increase the current, and
through rectifiers to convert the alternating current
(AC) to direct current (DC). The electricity then enters
the potlines where the pots are connected together
in series.
The electrical charge passes from the anode through
the electrolyte into a negatively charged cathode,
generating enormous heat due to the resistance of
the electrolyte. The alumina is reduced to molten
aluminium which collects at the bottom of the pot,
and is then siphoned out at 32 hour (Hillside and
Mozal) or 48 hour intervals (Bayside). Molten
aluminium that has been siphoned from the pots is
stored in holding furnaces before casting.
Rolling Ingot
Holding Furnace
Casting Wheel
Robot stacks ingots
Wheel Alloy
Redraw Rod
Molten aluminium
Casting
Ingots Cooling Tunnel
Launder
Extrusion Billet
Conveyor
Mozal and Hillside cast primary aluminium ingots. Hillside
also produces T-bar in horizontal casters. Bayside casts
a number of value added products for specific industries:
rod, billet, rim alloy and slabs.
Ingot
Remelt T-Bar

www.bhpbilliton.com

Transcription

Similar documents

www.alubond.com Aluminium composite panels for facade cladding

bayu intan - EMAS Offshore Limited

Matt Haigh – Planet-X Stealth Pro-Carbon

a world of possibilities

impressions - Polychromal

SFH6590 - Solray - Radiant Heating Panels

The Picture Works

week2-leticia.dadalto

A company presentation

Furnlink - Vettro Chair