Xstrata Mount Isa Mines€¦ · Xstrata Mount Isa Mines operates two separate mining and processing streams, copper and zinc-lead-silver, at Mount Isa. Together the company’s mines

Xstrata Mount Isa Mines Sustainability Report 2010

Contents

Enquiries and feedbackOur sustainability report is designed to share our progress with you and we welcome your feedback.

Melanie Edgar Manager Corporate Affairs and Community Relations North Queensland Tel: +61 7 4744 2011

Please email your comments to: [email protected] (include Xstrata Mount Isa Mines in the subject line) or write to: Community Relations Xstrata Mount Isa Mines Private Mail Bag 6 Mount Isa, Queensland, 4825, Australia

Xstrata Ethics LineThe Xstrata Ethics Line is a confidential facility operated independently by KPMG. The line provides employees and other stakeholders with a means through which they can report any breaches of Xstrata’s Business Principles, policies or prevailing legislation. A free phone number is provided in every country in which Xstrata has managed operations.

The Ethics Line can be accessed online via www.xstrataethics.comor by calling the following free call phone number within Australia 1800 987 310.

About XstrataXstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc with additional exposure to gold, cobalt, lead and silver. The Xstrata Group also comprises a growing platinum group metals business, iron ore projects, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group’s operations and projects span 20 countries.

About Xstrata CopperXstrata Copper is the world’s fourth largest copper producer. In 2010, its attributable mined production of copper contained in cathodes and concentrates reached 913,500 tonnes. It is also one of the world’s largest producers of smelter and refined copper, including from third-party materials.

Headquartered in Brisbane, Australia, Xstrata Copper is one of the commodity business units within the major global diversified mining group, Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Papua New Guinea, Peru, the Philippines and the United States. Its operations and projects are administered through a regional divisional management structure, which ensures that critical decisions are taken close to the related businesses. Xstrata Copper also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

About Xstrata ZincHeadquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom.

Xstrata Zinc’s operations in Spain comprise the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and the Hinojedo roasting plant in Cantabria.

In Australia, operations comprise: the Mount Isa, George Fisher underground, Handlebar Hill open cut and Black Star open cut zinc-lead mines, zinc-lead concentrator, lead smelter and Bowen Coke Works in north Queensland; the McArthur River open pit zinc-lead mine, processing and loading facility in the Northern Territory; and the Lady Loretta zinc lead deposit in north-west Queensland.

In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZ zinc smelter near Montreal; and the Perseverance zinc deposit in Quebec.

Xstrata Zinc also operates the Nordenham zinc smelter in northern Germany; the Northfleet lead refinery in the United Kingdom; and owns 33.75% of the Antamina mine in Peru.

Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

2 Executives’ message

4 Targets and scorecard

7 Scope of report

8 Our Sustainable Development Strategy

13 Corporate governance

15 Our operations and economic performance

19 Workplace health and safety

19 Health and safety

19 Safety performance

21 Occupational health

20 Monitoring programs

23 Our people

23 Employment

23 Diversity and opportunity

23 Non-discrimination policy

23 Labour relations

29 Sustainable communities

29 Stakeholder engagement and consultation

30 Community feedback

31 Corporate Social Involvement program

31 Community grievances

31 Indigenous rights and Aboriginal cultural heritage

31 Mine closure

37 Environmental performance

37 Environmental incidents

38 Climate change

40 Energy

40 Water management

40 Biodiversity

42 Emissions

44 Waste and tailings management

46 Product responsibility

49 Summary of key sustainability data

50 GRI index

IBC Glossary

QUEENSLAND

Townsville

BowenMount Isa

Cloncurry

BrisbaneAUSTRALIA

Xstrata Mount Isa MinesXstrata Mount Isa Mines operates two separate mining and processing streams, copper and zinc-

lead-silver, at Mount Isa. Together the company’s mines form one of the largest underground mining

operations in the world, and employs 3,390 employees and 1,083 contractors.

Mount Isa Mines copper operations

Copper ore6.1 million tonnes of ore mined at two underground copper mines: Enterprise and X41

Copper in concentrate158,143 tonnes

Copper in anode214,041 tonnes produced at the smelter

Plants1 concentrator – 7.2 million tonnes per annum capacity 1 copper smelter – 300,000 tonnes per annum capacity

Mount Isa Mines zinc, lead and silver operations

Zinc-lead ore8.6 million tonnes of ore mined from George Fisher underground mine, and Black Star and Handlebar Hill open cut mines

Zinc in concentrate355,024 tonnes

Lead in bullion140,059 tonnes

Silver in bullion6,775 kilo ounces in crude lead

Plants1 concentrator – 8 million tonnes per annum capacity1 zinc filter plant; 1 lead smelter – 175,000 tonnes per annum capacity

2010 Production Facts

SuSTAINABILITy REPORT 2010 1

Executives’ messageOverall, 2010 was a very positive year for Xstrata Mount Isa Mines as we continued our

commitment to investing in our business, the community and our people. Through sheer hard

work, dedication and importantly great teamwork we achieved outstanding results in both

our sustainable development practices and operational performance, and a number of key

achievements are highlighted here.

Although we were not successful in achieving all our safety improvement targets for 2010, it is pleasing to report improvements in lost time injury frequency rates at our Mount Isa operations. However, recordable and disabling injuries are continuing to occur in Mount Isa and reinforce our need to remain foused on risks and hazards within our workplaces.

In 2010, we invested more than $1 million in our CSI Program, which comprises the Xstrata Community Partnership Program North Queensland (XCPPNQ) and a sponsorship and donations program. Through the XCPPNQ, we supported 10 initiatives with a program value of $560,000 and we invested more than $533,000 on sponsorships, donations and in-kind community support initiatives, including events such as the Xstrata Mount Isa Rotary Rodeo, and the Xstrata Mount Isa Mining Expo.

In 2010 we also announced a partnership with Queensland Health to contribute $2 million towards the construction of a new Dental Health Building and training centre. This initiative forms part of the Queensland Government’s $65 million redevelopment of the Mount Isa Hospital. Construction of the Dental Health Building commenced in mid-2010 and is due for completion in mid-2011.

Our CSI programs are very important to us and the Mount Isa community, where residents are seeing real benefits from the wide range of initiatives that our programs support. A survey of key stakeholders found a high level of recognition for our commitment and contribution to the area and the effectiveness of our engagement with them.

We are pleased to report that no significant environmental incidents occurred at our Mount Isa operations during the year. We made significant progress with our

committed Regulatory Transition studies and implemented a number of key environmental improvements such as the completion and commissioning of the Death Adder Gully stormwater management system, and completion of a new water recycling project.

Xstrata Mount Isa Mines also reported substantial decreases in five of the six emissions compounds to the Federal Government’s National Pollutant Inventory (NPI) (visit www.npi.gov.au to read more about this).

During the year, we either met or exceeded the majority of our production targets at our Mount Isa operations. The copper concentrator delivered an additional 3,000 tonnes of copper through its innovative mill recovery project, while in our copper smelter, we successfully completed the smelter rebrick shutdown on schedule with no recordable injuries, which paved the way for the second highest ever half year anode production of 125,000 tonnes.

“ In 2010, we invested more than $1 million in our CSI Program, which comprises the Xstrata Community Partnership Program North Queensland and a sponsorship and donations program.”

2 XSTRATA MOuNT ISA MINES

Steve de Kruijff

Brian Hearne

Our zinc-lead operations in Mount Isa set new records for operational performance during the year. A 5% increase in ore production at George Fisher mine to 3.3 million tonnes and a 32% increase at Black Star open cut to 4.5 million tonnes supported a 15% increase in throughput in the Mount Isa concentrator to 8.6 million tonnes. Our zinc-lead operations also announced three major developments valued at $443 million which aim to ensure the full capacity of the zinc-lead concentrator is utilised and continue to improve operational efficiency. The $274 million George Fisher Mine expansion will increase annual production rates by almost 30% to 4.5 million tonnes by 2013. The $133 million Black Star Deeps project is extending this life of this open pit mine by up to four years to 2016. The $36 million George Fisher North Crushing Facility is relocating 40% of crushing from in Mount Isa to the surface of the underground mine 20 kilometres outside town in a development which will reduce emissions from our operations and eliminate double handling.

All these projects are critical to the long-term sustainability of our operations. As these developments progress, our attention to SD strategy will be a key part of their success.

We were very proud to be recognised in 2010 through awards. Xstrata Mount Isa Mines won the Export Awards in the Minerals and Energy category at both the Australian Export Awards and the Premier of Queensland’s Export Awards, in recognition of our outstanding export performance in 2010, which saw exports increase by 22% from the previous year.

Xstrata Mount Isa Mines was also inducted into the Queensland Business Leaders Hall of Fame in recognition of our contribution to the state of Queensland, which was an honour and an outstanding way to finish the year.

Living safely with lead in Mount IsaOur highest priority is the health and safety of our workers, their families, and the communities in which they live. The lead levels in residents of the Mount Isa community continued to be a matter we considered seriously. During the year we worked with the community and other key stakeholders to address this important community health issue.

In 2010, Queensland Health conducted a second screening program of Mount Isa children in the target age range of one to four years, with the results showing the amount of children recording safe blood lead levels has increased to 95%, up from 89% in 2008.

Looking aheadThe economic outlook in 2011 remains good and demand from Asia also remains strong. We are optimistic that this will give us the opportunity in 2011 to capitalise on our achievements in 2010 and look for further efficiency improvements.

Some of the challenges and opportunities facing our Mount Isa operations in 2011 include:

■■ Continually improving efficiency and cost control to remain competitive within the global commodity market

■■ Driving improvements in our overall health and safety performance

■■ Transitioning from the Mount Isa Mines Limited Agreement Act (MIMLAA) 1985 to the Environmental Protection Act (EPA) 1994

■■ Releasing the results of Phases II (Air) and III (Water) of the Lead Pathways Study

■■ Continuing our commitment to the Mount Isa community through our CSI programs

■■ Maintaining our investment in training and apprenticeship programs to ensure a sustainable workforce

■■ Maintaining the strong operating performances we achieved at Xstrata Mount Isa Mines in 2010

■■ Assessing options for securing long-term energy supply to north west Queensland

■■ Progressing the implementation of our continuous improvement programs

■■ Focusing on exploration and business development opportunities.

Xstrata Mount Isa Mines publishes a sustainability report each year that seeks to address the material issues that have been raised by local stakeholders as well as those which Xstrata considers essential to achieve our high standards in sustainable development. This report details our performance against our targets and outlines new targets for the coming year.

I trust that you will find this report a valuable source of information not only about Xstrata Mount Isa Mines, but also about the sustainable development principles and objectives that guide all of Xstrata’s business activities.

Thank you for your support and we look forward to keeping you updated on our operations.

Steve de KruijffChief Operating Officer, Xstrata Copper, North Queensland Division

Brian Hearne Chief Operating Officer, Xstrata Zinc Australia


Executives’ message

Targets and scorecardSafety

2010 Target Performance 2011 Target


Zero fatalities (0) Zero fatalities

LTIFR < 0.4 (0.8) LTIFR < 0.6

TRIFR < 7 (8) TRIFR < 6

DISR < 75 (168.8) DISR < 100

Mount Isa Mines zinc-lead operations

Zero fatalities (0) Zero fatalities

LTIFR < 1.7 1.7 LTIFR < 1.7

TRIFR < 15.1 16.6 TRIFR < 9.1

DISR < 120 494 DISR < 139

Health


> 90% compliance to internal blood lead testing* (91%) > 90% compliance to internal blood lead testing

No lead in blood removals over the national limit of 50 micrograms per decilitre

Nil recorded No lead in blood removals over the national limit of 50 micrograms per decilitre

* This is a Mount Isa Mines copper operations target.

Social Responsibility


Manage existing XCPPNQ partnerships against agreed program outcomes

Partnerships effectively managed Manage new XCPPNQ partnerships against program outcomes

Launch and implement Indigenous Affairs Strategy

Indigenous Affairs Strategy developed and under review

Launch and implement Indigenous Affairs Strategy

Review cultural awareness training and deployment plan across site

Review of cultural awareness training commenced

Deploy cultural awareness training across site

Implement action plan developed in response to 2009 Community Attitudes Survey

Action plan implemented undertake Community Attitudes Survey in Mount Isa and develop action plan


Achieved Not achieved Action continues into 2011

Our People


Award 30 university scholarships and16 high school bursaries

Awarded 26 university scholarships Awarded 16 high school bursaries

Award 30 university scholarships and16 high school bursaries

Maintain apprenticeship intake at ≥ 50; Continue to offer school-based apprenticeships

50 full-time apprentices commenced 11 school-based apprenticeships and

five school-based traineeships commenced

Maintain apprenticeship intake at ≥ 50; Continue to offer school-based traineeships

Continue to offer Graduate and VacationProgram placements in our operations

22 graduates commenced in 2010 76 Vacation Program placements offered

Continue to offer Graduate and Vacation Program placements in our operations

Continue work experience programs withlocal schools

107 work experience placements Continue work experience programs withlocal schools

Conduct 40 Leadership Development Workshops

57 Leadership Development Workshops conducted

Conduct 40 Leadership Development Program Workshops

Continue STEPers Indigenous training and employment program across site operations

Four trainees obtained full-time positions and four new trainees appointed

Appoint 15 new Indigenous trainees in 2011

Continue to offer National Indigenous Cadetship Support Program (NICS)

One NICS program placement awarded Recruit four additional National Indigenous Cadetship Support Program placements

Social Responsibility


Annually review stakeholder engagement plan Plan reviewed and formal stakeholder engagement plan developed

Implement stakeholder engagement plan and annually review

Hold three Community Information Sessions Three Community Information Sessions held (March, July and November)

Hold three Community Information Sessions

Hold a presentation and surface tour for teachers, emergency services personnel and health professionals new to Mount Isa

100 people attended annual “New to Isa” presentation and surface tour

Hold a presentation and surface tour for teachers, emergency services personnel and health professionals new to Mount Isa

Launch Mount Isa Mines website Website launched in November www.mountisamines.com.au

Launch a freecall 1800 Community Complaints Hotline

Freecall 1800 number launched in November 1800 982 982

Conduct 360° Key Stakeholder Survey Xstrata North Queensland 360° Key Stakeholder Survey conducted in October

use key stakeholder survey results to develop and implement an action plan

Environment


Continue progression of Phase 2 (Air) andPhase 3 (Water) of Lead Pathways Study

Draft Phase 3 (Water) report of the Lead Pathways Study received

Complete and publish both Phase 2 (Air) and Phase 3 (Water) of the Lead Pathways Study

Smelter Emissions Project team to progress initiatives to further reduce emissions from the copper and lead smelters

Engineering studies and actions ongoing. Working through continuous improvement plan actions.

Smelter Emissions Project team to continuewith high priority actions in continuous improvement plan

Continue to roll out environmental awareness training across site

Mandatory environmental awareness training package reviewed, and training delivered as scheduled.

Environmental awareness posters developed and displayed.

Complete construction of George Fisher Mine stormwater collection and recycling system

Stormwater collection and recycling system constructed

Xstrata Mount Isa Mines to develop controls for hazardous dams in line with legislation

Review Air Quality Control Centre operation improvements and processes

Review completed and improvements implemented

Average 7.0 megalitres per day of minedewatering into the recycled water circuit

Averaged 7.7 megalitres per day Average 7.0 megalitres per day of minedewatering into the recycled water circuit

Achieve 400 litres of fresh water per tonneof ore milled at the zinc-lead concentrator

490 litres of fresh water per tonne of ore milled

2% reduction in fresh water consumption intensity (m3 per tonne of bullion plus zinc and lead in ore mined) over 2010 performance by 2012

Achieve 300 litres of fresh water per tonneof ore milled at the copper concentrator

209 litres of fresh water per tonne of ore milled

Achieve 260 litres of fresh water per tonne of ore milled at the copper concentrator


Targets and scorecard

Achieved Not achieved Action continues into 2011

Water trucks frequently wet-down haul roads across site to minimise dust Surface infrastructure – Xstrata Mount Isa Mines


Johannes Grobler – Technical Services Manager, George Fisher Mine

This report provides information about the economic, health, safety, environmental and social practices and performance of Xstrata Mount Isa Mines (Mount Isa Mines copper operations and Mount Isa Mines zinc-lead operations) from 1 January 2010 to 31 December 2010.

The report provides a general description of Xstrata’s SD Policy and how this is reflected in the way we manage our business. The full version of this Policy can be found on Xstrata Copper and Xstrata Zinc’s websites1.

We publish our reports annually and this is the sixth Sustainability Report produced by Xstrata Mount Isa Mines.

The Xstrata Mount Isa Mines Sustainability Report 2010 is a more condensed version compared to previous years’ reports. This report will focus on Xstrata Mount Isa Mines’ significant environmental, social and economic impacts during the year, and in particular will focus on key issues that have been identified as important by our local stakeholders in Mount Isa. Readers will be directed to the 2010 Xstrata Copper North Queensland and the Xstrata Zinc Australia Sustainability Reports for more detailed information on our operations’ SD performance and other corporate information.

In regard to changes in data measurement methods since the previous year’s report, due to the detailed and evolving mandatory reporting requirements of NGERS, we continue to review our existing data and reporting systems to improve data integrity and compliance.

This process was applied to 2010 data in this report and has been retrospectively applied to previous years’ data. Changes to our GHG and energy data in this report is due to the way energy use for on-site generation of electricity is reported at Xstrata Mount Isa Mines. This has resulted in revisions to previously reported figures to now align with legislated Australian Government reporting requirements under NGERS.

The Xstrata Group also publishes an annual Sustainability Report which includes an overview of Xstrata Copper and Xstrata Zinc’s SD performance. All of these reports are available on the Xstrata sustainability website2.

As part of the Xstrata Group, Xstrata Mount Isa Mines’ policies are aligned with Xstrata’s SD Policy and 17 SD Standards and its operations and projects are audited annually, either internally or externally, against these standards. The Policy and Standards are published on Xstrata’s sustainability website.

All data and calculations included in this report were obtained through procedures that are regulated and aligned with measurement models provided by Xstrata and also take into account technical protocols for indicators as set out in the Global Reporting Initiative G3 Guidelines.

All monetary values are expressed in Australian Dollars (AuD) unless otherwise stated.

Target audienceThis report provides our stakeholders with information about Xstrata’s SD Policies and practices and our performance at Xstrata Mount Isa Mines. Our target audience groups include local, state and federal government, intergovernmental bodies, local communities, employees and their families, local contractors, community organisations and non-governmental organisations (NGOs), business partners including suppliers, media, and industry participants.

Changes to size, structure, ownership of operationsThere have been no changes to the size, structure, or ownership of Xstrata Mount Isa Mines in 2010.

Report distributionIn order to ensure ready access to this Report, it is available in the following forms:

■■ 800 printed copies

■■ Online at www.xstrata.com/sustainability

■■ Online at www.mountisamines.com.au.

Defining report contentThis report highlights specific issues that are material to Xstrata Mount Isa Mines and are related to the economic, health and safety, community and environmental sustainability of the areas in which we operate.

In addition, it addresses issues considered material by our stakeholders and that have the potential to become material to the long-term success of our business. We are committed to our stakeholders, and we describe the ways we engage with and respond to different groups in the sustainable communities section (from page 29) of this report.

In preparing this report, we have sought to present a view of our sustainability performance that is accurate, clear and balanced.

Scope of reportIn line with Xstrata’s commitment to transparency and stakeholder engagement,

all of its operating divisions and major development projects publish an annual

report on their Sustainable Development (SD) performance.

1 www.xstratacopper.com and www.xstratazinc.com2 www.xstrata.com/sustainability SuSTAINABILITy REPORT 2010 7

In identifying issues or topics that are material to Xstrata Mount Isa Mines, we have considered:

■■ feedback on our sustainability performance and reporting from key stakeholders

■■ company-specific issues raised either directly or indirectly by external stakeholders including NGOs, media, governments, communities and investors

■■ specific issues arising from the management of our business

■■ specific issues raised by our employees

■■ industry challenges raised in industry associations and forums

■■ Xstrata plc’s Business Principles and SD Policy and Standards

■■ Xstrata Copper and Xstrata Zinc’s SD Framework, Policies and Standards

■■ indicators and topics outlined in the GRI G3 Guidelines, International Council on Mining and Metals’ principles, and other best practice guidelines and initiatives.

The Global Reporting Initiative (GRI)This report was prepared in accordance with the GRI G3 Guidelines, the world’s most widely used sustainability reporting framework.

On the basis of the G3 indicators presented here, corresponding to different stages of content definition, we consider that this report complies with Application Level A on the scale of A to C established by the GRI G3 Guidelines, including the Mining and Metals Sector Supplement, to reflect the level of information and indicators reported.

A GRI Index showing how Xstrata Mount Isa Mines has applied the G3 Guidelines in this report can be found on pages 50–51.

Quality assuranceAs part of the external verification of the Xstrata Group’s 2010 Sustainability Report, independent auditors Ernst & young examined the way in which Xstrata compiled its main SD data, figures and/or indicators over the course of the year. The signed assurance statement contains a brief description of this process and is published in Xstrata’s 2010 Sustainability Report which is available on www.xstrata.com.

While this report has not been independently audited, it draws its key sustainability data from the same database as the Group report that is externally assured.

The most recent previous Xstrata Mount Isa Mines Sustainability Report was published in April 2010, which reported on 2009 sustainability performance.

GRI application level

2002 In Accordance C C+ B B+ A A+

Mandatory Self DeclaredReport

Externally Assured

Report Externally Assured

Report Externally Assured


Scope of report

Joe Golling - Acting General Manager, George Fisher Mine addresses workers prior to their shift during a monthly communications meeting

Sustainable Development StrategyXstrata Mount Isa Mines is firmly committed to putting sustainable development (SD) into practice. It understands that, in order for an organisation to be successful and a valuable partner to communities where it operates, it must set and comply with ever higher SD standards.

Please refer to the 2010 Xstrata Copper North Queensland Division Sustainability Report and the 2010 Xstrata Zinc Australia Sustainability Report for more detailed information on our SD Management Framework and SD Policy.

Precautionary approachXstrata Mount Isa Mines takes a precautionary approach to the environmental management of its global activities. We use a comprehensive risk-based approach to manage the potential detrimental impacts of our activities. This approach means that, even in the absence of evidence that environmental degradation is occurring or will occur, we take action to mitigate the possibility that it will.

Key challenges and opportunitiesFrom internal review and feedback from stakeholders, Xstrata Mount Isa Mines has identified a number of key challenges that may affect the success of our business and be relevant to our stakeholders now and in the future.

For each prioritised challenge, targets are set to reduce its impact on our operations. Our performance against these targets in 2010 is shown in the scorecard on pages 4 to 5.

The scorecard also includes future targets which are set to drive further improvements and address areas of under performance in 2010.

Opportunities identified to make a positive contribution to sustainable development and create value for shareholders include:

■■ continuing improvement of energy and resource efficiency at our Mount Isa operations

■■ positively influencing the sustainability performance of the mining industry in Australia through our active participation in forums such as the Minerals Council of Australia, Queensland Resources Council and other industry associations

■■ continuing our commitment to supporting local communities by providing opportunities for employment, using local suppliers and purchasing goods and services from the north west Queensland region wherever possible

■■ increasing our interaction with suppliers and contractors through regular Supplier Forums

Our sustainable development strategySustainable development is at the core of our business strategy.

Definition of purposeWe will maximise value for shareholders by successfully growing and managing an industry-leading portfolio of copper assets that deliver superior returns.

We will achieve this in a safe, environmentally and socially responsible way, in open partnerships between our people and with communities, governments and other stakeholders.

Our strategic objectives■■ Injury-free, safe work environments

■■ Demonstrated leadership in environmental performance

■■ Reputation for social responsibility

■■ Realisation of the full potential of our people

■■ Maximize value from our physical assets

■■ Cost competitiveness through the cycles

■■ Value creation through dynamic growth and continuous improvement

Our valuesOur decisions and actions will reflect the following values:

■■ Honesty

■■ Dependability

■■ Respect

■■ Confidence

■■ Ingenuity

■■ Courage

■■ Passion


■■ contributing to the acquisition of skills and improving education to benefit our future and current workforce through workplace and community training and development programs

■■ maintaining community morale in difficult economic times, the need for good communication and the importance of supporting the local Mount Isa community. We will do this by updating the Mount Isa community on issues important to them through regular community information sessions and forums to ensure residents remain informed of our progress. Feedback will continue to be actively sought from our communities through regular surveys such as the bi-annual Community Attitudes Survey.

Challenges faced by Xstrata Mount Isa Mines include:

■■ Regional growth issues

This includes competition for staff, skills shortages, demand for infrastructure, affordable housing and coping with economic and population growth. In 2010 we continued to implement our Human Resources Strategy to attract and retain talented people and match employees’ family members with suitable local employers where possible. We continued to work with all levels of government and relevant organisations to address infrastructure needs and improve liveability in Mount Isa.

■■ Changes to Federal tax and royalty structure

The Federal Government’s proposed Resource Super Profits Tax (RSPT) resulted in Xstrata suspending its regional exploration programs. These exploration programs resumed in July in light of the Federal Government’s decision to replace the RSPT with a Mineral Resource Rent Tax (MRRT).

■■ Transition to new environmental legislation at Xstrata Mount Isa Mines

We continue to operate within our current environmental licensed limits set by the Queensland Government and continue to work with them to implement the upcoming changes to our environmental regulation. In 2010 several studies were progressed to assist us with developing new environmental authority conditions and to ensure we can continue to sustainably manage our operations. Read more about our transition on page 38.

■■ Mount Isa to Townsville rail corridor

A key issue affecting our north Queensland operations is the reliability of the Mount Isa to Townsville rail link and the potential impact of increased rail and product movements. In 2010 we continued to work with Queensland Rail and the Queensland Government to address this issue.

■■ Environmental and health issues

This includes the lead in blood issue and emissions controls in Mount Isa, and environmental impacts such as water discharge events at Mount Isa. We continue to undertake a process of continuous environmental improvement to underpin our ongoing commitment to ensure the health, safety and wellbeing of our local communities.

During the year we continued our commitment to the Living with Lead Alliance, partnering with the Queensland Government (Queensland Health and the Department of Environment and Resource Management), the local Member of Parliament, and the Mount Isa City Council to increase awareness and influence behaviour of residents to live safely with lead. We also continued our commitment to the Lead Pathways Study and accessing new technologies through the Smelter Emissions Project.

■■ Climate change and energy

As a producer and significant consumer of energy, we seek to contribute to the challenge of satisfying north west Queensland’s growing energy needs while reducing carbon emissions. We do this by participating in the Energy Efficiency Opportunity (EEO) program and proactively managing energy efficiency of our operations, reducing direct emissions and investing in capital projects such as the expansion of the Xstrata Power Station.

In 2010 we expanded the Xstrata Power Station with the installation of three additional 3 MW generation units. This upgrade will not provide enough power to address the long-term energy requirements for Xstrata Mount Isa Mines, the community and other mining projects in the North West Queensland Minerals Province (NWQMP) and we will continue to investigate options for long-term energy supply for our north west Queensland operations.

Most importantly, we continue to work with the Queensland Government and local councils to bring competitive and efficient energy to the NWQMP.

This is critical to ensuring the ongoing competitiveness of regional businesses and our own industry.

AwardsIn 2010 Xstrata Mount Isa Mines received widespread recognition for the positive work its Mount Isa operations have undertaken in its sustainable development activities through the following awards and achievements:

■■ Australian Export Award (Minerals and Energy category) at the 2010 Australian Export Awards – Xstrata Mount Isa Mines

■■ Premier’s Export Award (Minerals and Energy category) at the 2010 Premier of Queensland’s Export Awards – Xstrata Mount Isa Mines

■■ Induction into the Queensland Business Leaders Hall of Fame – Xstrata Mount Isa Mines

■■ Kerry Brisbane, Electrical Team Leader Xstrata Skills Centre – Tradesperson of the year Award at the Queensland Resources Council’s Resources Awards for Women

■■ Ricky O’Donoghue, Boilermaking Apprentice – finalist in the Apprentice of the year category, Queensland Training Awards

■■ North West Minerals Province Mines Rescue Challenge winners – Xstrata Mount Isa Mines.


Our sustainable development strategy

Clockwise from top: New Mount Isa Copper Operations employees undergoing core competency training at the MICO New Starter Centre

An excavator loads zinc lead ore onto a haul truck

Dominic Clarke – Graduate Electrical Engineer, Xstrata Mount Isa Mines


Our sustainable development strategy

Rebecca Caddis and Josie Crawford, Pitram (Mine Control) Operators, George Fisher Mine


Child and forced labour

As stated in Xstrata’s Business Principles, we support the elimination of all forms of forced or compulsory labour and will not tolerate any form of child or forced labour. In 2010 the age of our youngest employee at Xstrata Mount Isa Mines was 17.

Principal membershipsAs members of the Minerals Council of Australia (MCA), Xstrata Copper and Xstrata Zinc are signatories to the MCA’s Enduring Value, the Australian Minerals Industry Framework for Sustainable Development. Enduring Value is the centrepiece of the mining industry’s commitment to achieving continual improvement in its environmental, social and economic performance, accountability, and ensuring that it operates in a manner that is attuned to community expectations.

Human RightsAs part of the Xstrata Group, we endorse the principles set out in the uN universal Declaration of Human Rights, the International Labour Organization Conventions and the uN Global Compact.

Xstrata Mount Isa Mines ensures that all of its human resources employees are trained on human rights policies. In 2010, 100% of our security staff were trained on human rights policies. During the year we also investigated suitable training models for our future needs to remain compliant with our SD commitments and will be implementing ongoing training in 2011.

Corporate GovernanceWe are committed to best practice in corporate governance, recognising that strong and

accountable governance is directly linked to our ability to manage risk, seize opportunities

and achieve optimal performance.

Please refer to pages 18 and 19 of the 2010 Xstrata Copper North Queensland and pages 12 and 16 of the Xstrata Zinc Australia Sustainability Reports for more detailed information on:

■■ our governance structure

■■ our SD policies

■■ how our SD performance is monitored

■■ SD assurance (including details and results of the most recent internal and external audits)

■■ our policies and performance in relation to ethics and transparency

■■ our Human Rights policy and our commitment to protecting the rights of our employees, and

■■ a detailed list of Xstrata Mount Isa Mines’ principal memberships.

Ethics and transparencyIn line with the Xstrata Group’s Statement of Business Principles, we are committed to managing our business ethically and transparently and seek to work in an open and responsible way, both internally and externally.

Corruption

In accordance with Xstrata’s Business Principles, we do not offer, solicit or accept any form of inducement or bribe. In 2010, there were no incidents of corruption, fraud or unethical behaviour recorded at Xstrata Mount Isa Mines.

Public policy participation and political contributions

Xstrata’s Business Principles prohibit political contributions of any kind. In line with this policy, Xstrata Mount Isa Mines did not provide any financial or in-kind contribution to political parties or individuals in 2010.

There were no legal actions for anti-competitive behaviour, anti-trust or monopoly practices at Xstrata Mount Isa Mines in 2010.

Troy Sabin – Supervisor Development Mount Isa Copper Operations, conducts a PPE audit on Robert Pitt – Serviceman



Ore, broken up by blasting at Black Star open cut mine, is scooped up by hydraulic excavators and loaded onto haul trucks for transportation to crushers.

Our operationsXstrata Mount Isa Mines comprises:

■■ Mount Isa Mines copper operations, consisting of Enterprise and X41 underground mines, and metallurgical operations including the Mount Isa copper concentrator and copper smelter

■■ Mount Isa Mines zinc-lead operations, consisting of George Fisher underground zinc-lead mine (GFM), Black Star and Handlebar Hill open cut zinc-lead mines, and metallurgical operations including the Mount Isa zinc-lead concentrator, zinc filter plant and lead smelter

■■ Administration and shared services.

Xstrata Copper in Mount IsaWe use state-of-the-art mining and processing technology to produce approximately six million tonnes of copper ore annually from our world-class underground ore bodies.

In 2010 the copper operations produced 6.1 million tonnes of ore, 158,143 tonnes of copper in concentrate, and 214,041 tonnes of copper in anode. The copper concentrator and copper smelter have a 7.2 million and 300,000 tonnes per annum capacity respectively.

Xstrata Zinc in Mount IsaOur zinc-lead operations use state-of-the-art mining and processing technology to produce ore from our world class underground and open cut ore bodies. In 2010 the zinc-lead operations produced 355,024 tonnes of zinc in concentrate, 140,059 tonnes of lead in bullion, and 6,775 kilo ounces of silver in crude lead.

Net salesInformation on Xstrata Mount Isa Mines’ net sales can be found in Xstrata plc’s Annual Report 2010. Please refer to www.xstrata.com/publications/financial.

Markets and customersIn addition to domestic sales, Xstrata Mount Isa Mines serves 16 countries in five markets including Asia, Europe, North America and the united Kingdom.

Copper cathode is exported to Asia and placed into the Australian domestic market and copper reverts are sold to Canada. The remaining material is exported to markets in Asia including China, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, and Thailand.

Zinc concentrates are sold to India, China, our crude lead to England, and our tankhouse slimes to Germany. Zinc concentrates are also sold to the domestic market.

Lead bullion produced in Mount Isa is exported to Xstrata Zinc’s Britannia Refined Metals refinery in the united Kingdom for further processing.

Our operations and economic performanceIn 2010, Xstrata Mount Isa Mines continued to deliver significant economic, social and infrastructure

benefits to the Mount Isa community by generating employment opportunities, supporting local

businesses, funding community projects and paying government taxes and charges.

“ We used state-of-the-art mining and processing technology to produce 6.1 million tonnes of copper ore and 8.6 million tonnes of zinc-lead ore in 2010 from our world class underground and open cut ore bodies.”


Inside the Y74 Refrigeration Plant

Direct economic contributionDuring 2010 Xstrata Mount Isa Mines contributed almost $2 billion to the Queensland economy through:

■■ employment of 4,473 people; including 3,390 employees and 1,083 contractors

■■ an annual wages bill in excess of $443 million

■■ apprenticeships, scholarships and youth training opportunities of over $18 million

■■ over $608 million spent purchasing goods and services within Queensland, over 30% spent with local Mount Isa suppliers (Mount Isa Mines copper operations)

■■ almost $607 million spent purchasing goods and services within Queensland, 49% spent with local Mount Isa suppliers (Mount Isa Mines zinc-lead operations)

■■ over $1 million paid to the local council for annual rates

■■ annual Corporate Social Involvement contributions of around $1 million directed to community partnerships, donations, sponsorships and community programs

■■ over $225 million in rail, power and water charges

■■ over $65 million paid to governments in taxes, charges and royalties.

Infrastructure for public benefitFollowing a $2 million donation made in late 2009, Xstrata Mount Isa Mines announced a partnership with Queensland Health to contribute towards the construction of a new Dental Health Building and training centre. This initiative forms part of the Queensland Government’s $65 million redevelopment of the Mount Isa Hospital. Construction of the Dental Health Building commenced in mid-2010 and is due for completion in mid-2011.

Local suppliersXstrata Mount Isa Mines supports local businesses by consciously sourcing goods and services from local suppliers wherever possible. The combined copper and zinc businesses averaged almost 40% of total goods and services expenditure with local suppliers. Expenditure on Mount Isa suppliers totalled around $500 million.

Please refer to the 2010 Xstrata Copper North Queensland and Xstrata Zinc Australia Sustainability Reports for more information on our local supplier policy, and for a full list of the major suppliers of Xstrata Mount Isa Mines.

Financial assistance received from governmentIn 2010, Xstrata Mount Isa Mines received government funding of around $1.1 million to support a range of employment, training and education programs. In addition, Xstrata Mount Isa Mines received a government diesel fuel rebate of around $17.5 million in 2010.

Investing in the futureXstrata Mount Isa Mines’ capital projects in 2010 totalled $548 million, with $133 million spent on sustaining projects and $415 million spent on expansionary projects.

We continue to strengthen our investment in the future of north west Queensland through a number of planned projects for 2011 which include:

■■ investigating by-product opportunities –copperbalt project

■■ Mount Isa Open Pit concept study

■■ 1100 Orebody Halo Caving study

■■ Smelter Emissions Project

■■ further expansions to the Black Star Open Cut mine

■■ George Fisher Mine expansion.

For further information on these projects please refer to page 16 of the 2010 Xstrata Copper North Queensland and page 5 of the Xstrata Zinc Australia Sustainability Reports.


Our operations and economic performance

Surface infrastructure at Xstrata Zinc’s George Fisher Mine, 22 kilometres north of Mount Isa

The induction recognises Xstrata Mount Isa Mines’ sustained and outstanding contribution to Queensland’s economic development, the mining industry and rural development.

Speaking at the awards ceremony, Neal O’Connor – Xstrata Mount Isa Mines Director and Company Secretary, said that the company was honoured to be inducted into the Queensland Business Leaders Hall of Fame.

“From humble beginnings, Xstrata Mount Isa Mines has overcome significant adversity to become one of Queensland’s most successful businesses and an icon of the outback,” said Neal.

“This induction pays tribute to the tenacity and entrepreneurial spirit of the men and women who have worked for the company over the past 86 years.

“Their courage and commitment has seen the company grow from a small, isolated mining camp to become a significant employer in regional Queensland, a major exporter of mining technology and product, and a key contributor to the economic development and prosperity of our State.

“We are very proud of the contribution Xstrata Mount Isa Mines has made, and continues to make, to Queensland, particularly to the regional communities in which our employees and their families live and work,” he said.

Xstrata Mount Isa Mines currently employs more than 4,000 people and in 2010 contributed almost $2 billion to the State’s economy.

Xstrata Mount Isa Mines’ induction into the 2010 Queensland Business Leaders Hall of Fame follows its recognition last year by the Premier of Queensland, Hon Anna Bligh, as the business to have made the most significant contribution to the State’s economy since Queensland’s separation from New South Wales in 1859.

The Queensland Business Leaders Hall of Fame is a joint partnership between the State Library of Queensland, the Queensland university of Technology and the Queensland Library Foundation.

Case study

Xstrata Mount Isa Mines inducted into Queensland Business Leaders Hall of FameXstrata Mount Isa Mines was inducted into the 2010 Queensland Business Leaders Hall of Fame by Her

Excellency, Ms Penelope Wensley AO, Governor of Queensland at an annual awards ceremony held in

Brisbane in September.


Above: The crowd at the 2010 Queensland Business Leaders Hall of Fame ceremonyInset: The Governor of Queensland, Her Excellency Ms Penelope Wensley AO with Neal O’Connor – Director and Company Secretary Xstrata Mount Isa Mines and Grant Townsend – Chief Executive of WHK Horwarth (Principal Partner, 2010 Queensland Business Leaders Hall of Fame)

James Saltmarsh – Driller, working with diamond drill rods at George Fisher Mine


Safety performanceXstrata Mount Isa Mines values the health and safety of our employees. Safety performance is tracked using the following measures:

■■ Total Recordable Injury Frequency Rate (TRIFR) which includes all injuries except first aid treatments

■■ Lost Time Injury Frequency Rate (LTIFR)

■■ Disabling Injury Severity Rate (DISR), which records the number of days lost or on restricted duties per million hours worked.


The Mount Isa Mines copper operations continued to show improvement in safety performance in 2010. Our operations were not successful in achieving our safety improvement targets, however we achieved a 16% improvement in the TRIFR, a 13% improvement in the LTIFR, and a 4% improvement in the DISR over our 2009 performance. Significant improvements against all these measures have been achieved since 2003.

Mount Isa Mines zinc-lead operations

The Mount Isa Mines zinc-lead operations also showed improvements in safety performance in 2010. We were successful in achieving our 2010 LTIFR target of less than 1.7, recording 1.7. Although we were not successful in achieving our TRIFR target of less than 15.1, recording a TRIFR of 16.6, this was a 7% improvement compared to 2009. Our DISR target of less than 120 was not achieved, with our operations reporting a DISR of 494 in 2010.

Contractor managementWith contractors representing over 30% of our workforce, Xstrata Mount Isa Mines continued to work with contracting firms to assist them to develop safety management standards aligned with our own. Reviews and audits of contracting firms took place during the year to ensure Xstrata standards are enforced and maintained at our operations.

Xstrata’s Contractor Portal was enhanced in 2010, with Xstrata-engaged contracting firms being given access to Xstrata’s Business Principles, all site-level sustainable development (SD) documents, commercial terms and released site communications.

Crisis and emergency preparationTo ensure we are prepared to respond to a range of operational challenges, our Response and Recovery Manuals are regularly tested with different scenarios.

Our site Mines Rescue Teams annually participate in industry coordinated Mines Rescue Challenges, judging their proficiency at dealing with realistic scenarios that could happen on or around a mine site.

In 2010, Xstrata Mount Isa Mines participated in the North West Queensland Minerals Province Mines Rescue Challenge at Outback at Isa. Xstrata Mount Isa Mines’ B Crew won the overall prize for the competition.

Health and safetyWe pursue this goal by promoting and sustaining a culture of safety that seeks to promote a positive attitude and awareness of the issues involved. We provide visible leadership and make our management accountable for safety performance and for training employees to improve their safety knowledge, skills, and to make them aware that they have a responsibility to themselves, their family and their friends to work and behave safely.

Our challengesEnhancing our risk management strategies in all aspects of our business was a strategic initiative in 2010, with three primary focus areas:

■■ Reduction of high consequence low probability incidents

■■ Reduction of low consequence high probability incidents

■■ Health and hygiene.

In 2010 we continued to develop Xstrata Mount Isa Mines’ Sustainable Development (SD) Management System, and ongoing audits and reviews of our procedures were undertaken to ensure they aligned with internal and external expectations.

During the year we enhanced our training programs and implemented multiple contracts with external registered training organisations for core training requirements. We also improved our data capture and reporting on skills and competency requirements.

For more information on our health and safety initiatives and programs, our challenges and risk management systems and our safety performance, please refer to pages 29 and 34 of the 2010 Xstrata Copper North Queensland Sustainability Report and 18 to 21 of the 2010 Xstrata Zinc Australia Sustainability Report.


Workplace health and safetyWe aim to operate a safe workplace that is injury- and fatality-free, and

to enhance the wellbeing of employees, contractors and communities.

Occupational healthXstrata Mount Isa Mines values the health and wellbeing of our workers and we encourage our employees and their families to maintain a healthy lifestyle.

New cases of occupational illnesses recorded at Xstrata Mount Isa Mines in 2010 are outlined in the table below.

For more detailed information on our occupational health activities in 2010, please refer to page 32 of the 2010 Xstrata Copper North Queensland and page 18 of Xstrata Zinc Australia Sustainability Reports.

Monitoring programsPrevention of harm due to hygiene hazard exposure is a key priority for Xstrata Mount Isa Mines. In 2010 we continued our extensive monitoring programs for dust contaminants, Diesel Particulate Matter (DPM), noise, lead, arsenic, radiation, vibration and potable water.

More than $500,000 was invested on occupational hygiene sampling and analysis at Xstrata Mount Isa Mines in 2010.

Please refer to below table for our 2010 results.

Sampling and analysisPlease refer to the 2010 Xstrata Copper North Queensland and Xstrata Zinc Australia Sustainability Reports for detailed information on our sampling and analysis program for potable water, noise, dust contaminants and Diesel Particulate Matter (DPM), and arsenic, and refer to the table below.

Lead

Lead can enter the body through inhalation, ingestion or, occasionally, skin contact. We minimise exposure through various means, including engineering, mechanical and procedural controls, and additional personal protective equipment where deemed necessary.

An elevated blood lead level at our operations is taken seriously. This is evident in the strict protocols in place to reduce lead exposure to employees in the workplace. Biological and dust monitoring is conducted in accordance with the NOHSC standard and recognised occupational hygiene standards. A community program of blood lead testing is also supported in Mount Isa.

Protocols to reduce risk of exposure to lead in the workplace include mandatory showering on completion of each shift, on-site laundering of work clothes (a Clean-In, Clean-Out policy), mandatory washing before meal breaks, and dedicated smoking areas. At Xstrata Mount Isa Mines, a dedicated internal Xstrata Lead Committee guides the management of lead within the site.

All employees at Xstrata Mount Isa Mines are required to have venous lead in blood tests at frequencies which are determined by the area they work in, their previous result, gender and reproductive capacity. This form of biological sampling provides an accurate measure of a worker’s exposure to lead.

Xstrata sets its medical removal limit below the prescribed standard of 50 micrograms per decilitre (μg/dl). Employees with blood-lead concentration levels of 38 μg/dl or greater must be relocated from their work area to other parts of the operation until concentrations are below 30 μg/dl. In the Mount Isa Mines lead smelter, where the lead is more concentrated, the limit was reduced from 45 μg/dl or greater in 2009, to 38 μg/dl in 2010 for male employees. Female employees should not have a blood-lead concentration that exceeds the national standard of 20 μg/dl.

At Xstrata Mount Isa Mines, 10,876 blood lead samples were taken from our employees and contractors during 2010, providing an accurate evidence base in order to manage lead exposure. Six employees recorded a blood-lead level higher than our internal standard of 38 μg/dl and three of those people had blood-lead levels higher than 40 μg/dl. No employees exceeded the national level of 50 μg/dl.

Job Role Criteria (JRC)The JRC tool, an interactive web-based tool that assists the injury management process at Xstrata Mount Isa Mines, was further developed in 2010. The role library grew to over 200 roles and there was an expansion of the evidence base to include Thermal Work Limit, Manual Task Risk Matrix, and Whole Body Vibration data. Please see our case study on page 21 for more information.

Occupational hygiene sampling and analysis – Xstrata Mount Isa Mines

Type of sample collected and analysed* 2009 2010

Airborne dust (inhalable, respirable, static and asbestos) 314 388

Arsenic in urine 1,290 1,371

Diesel Particulate Matter (DPM) 39 63

Lead in blood (employees and contractors) 8,474 10,876

Noise 106 221

Potable water (microbiological and metals) 547 714

* In the 2009 report, this table recorded separate sampling and analysis numbers for the Mount Isa Mines copper operations and the Mount Isa Mines zinc-lead operations. These numbers are combined in this report and will continue to be for future reporting.

Occupational illnesses by type

Mount Isa Mines copper operations 2009 2010

Musculoskeletal injury 1 2

Noise-induced hearing loss 9 11


Workplace health and safety

During 2009 the Job Role Criteria tool evolved into an interactive web-based resource that provided an accessible, useable, and dynamic presentation of key information that medical, rehabilitation, and operational staff could use throughout the injury management process. The role library grew to over 200 roles and there was an expansion of the evidence base to include Thermal Work Limit, Manual Task Risk Matrix, Whole Body Vibration data, and the review of 17 areas and roles across Xstrata’s north Queensland operations.

The Job Role Criteria tool was rolled out in 2010 through presentations to management, safety, health, training, human resources and medical staff, by the North Queensland Safety and Health department. The web-based program was made available on the Xstrata Mount Isa Mines intranet, making it highly accessible, user friendly, and able to be updated continually. The program provides access to nearly every job on site. Each job contains a role description, its physical requirements, the environmental context of role participation and cognitive performance components for task participation. In addition, the tool was

developed as a transportable uSB-based resource to allow access and interaction by remote and travelling staff and employees.

Brad Pritchard – Occupational Therapist at Xstrata Mount Isa Mines, and Lyndonna Ross – Graduate Occupational Therapist, said it had proved a very useful tool across the company’s north Queensland sites in 2010.

“The Job Role Criteria Tool provides a comprehensive and rich evidence base that allows external medical specialists and internal health and rehabilitation people to make a more informed decision about future goals and the suitability to provide assistance in a return to work process,” said Brad.

“The program has the potential to be used in other departments such as the Safety Department during workplace risk assessments, and human resources during recruitment, not just those based on rehabilitation and other medical services,” he said.

Leanne Ryder – Senior Human Resources Advisor, said the program had been very useful for Human Resources.

“This is a great tool for the recruiting process, as it’s just not possible for one person to know all the tasks and role requirements for every single job across our north Queensland sites,” said Leanne.

“The program is easily accessible on our intranet site, and gives us an instant view of what’s required physically to do a particular job, which has proved really useful throughout the year,” she said.

Since being rolled out in 2010 the Job Role Criteria tool has made notable improvements to:

■■ Pre-employment processes – by providing an objective measure from which to assess applicants

■■ Injury Prevention – by highlighting and addressing hazardous tasks and/or work practices

■■ Injury Management processes – by facilitating appropriate tasking, and providing ultimate functional goals for rehabilitation

■■ Training and Human Resources functions.

Overall, the tool has assisted communication and rehabilitation program development between health, injury management and workplace management and area leaders. It has provided a common language and reference point, assisting in planning, developing and assessing rehabilitation goals and operational risk.

Case study

Job Role Criteria greatly assists the injury management process

Originally developed in 2005 to meet an emerging demand from the working population, the Job Role Criteria tool was designed to assist health and rehabilitation staff during their assessments, observations, treatment and considerations in relation to the daily occupational activities of employees. It has since become a proactive injury management tool which details the functional requirements of all roles within Xstrata’s north Queensland operations.

The Job Role Criteria tool assists health and rehabilitation staff to identify the functional requirements of all roles on site


First year mechanical fitting apprentices receive instruction from Peter Fricke – Xstrata Skills Centre Instructor


The commitment and capability of our people is key to the ongoing success and sustainability of Xstrata Mount Isa Mines. Our Human Resources strategy, and accompanying initiatives, supports this requirement by developing individual capabilities and a constructive organisational culture.

EmploymentIn 2010, Xstrata Mount Isa Mines provided jobs for 4,473 people (3,390 employees and 1,083 contractors). Our rate of voluntary employee turnover in 2010 averaged 17.8%, which is just above the average voluntary turnover rate of 17.6% reported by Queensland participants in the Resources Industry Turnover Analysis.

Employing locally

As part of our ongoing business strategy, we are committed to employing Mount Isa residents. The significant majority of Xstrata Mount Isa Mines’ workforce is employed on a permanent basis. However, the growth in the resources sector in 2010 coupled with the national skills shortage has meant a small number of employees with management and professional skills were recruited from outside Australia.

We are committed to employing local Mount Isa residents. Based on data collected in 2010, we estimate that approximately 65% (2,215) of our employees were hired from the local community.

Diversity and opportunityWe seek to foster a culture in which our employee-related decisions, whether it be hiring, training or promotion, are taken based solely on an individual’s ability and contribution to Xstrata’s success, irrespective of gender, age, race, disability, sexual orientation or any other aspect of their identity. Of our total workforce, 15% are female and 85% are male; total workforce by age demographic shows 33% are under 30, 53% are 30 to 50 and 14% are over 50. Around 7% of our people identify as Aboriginal or Torres Strait Islander.

Non-discrimination policyAs stated in Xstrata’s Business Principles, we value the contribution made by our employees and, under our SD Policy, do not tolerate any form of discrimination, abuse of power, harassment or physical or verbal violence in the workplace. We also provide employees with a fair and non-discriminatory mechanism for complaints and foster practices that respect their rights and personal dignity.

In 2010, 34 incidents of harassment and discrimination were reported at Xstrata Mount Isa Mines. Of these incidents, 29 were resolved internally to the satisfaction of the complainant, and typically involved disciplinary action, directions for training in anger management or counselling. In some of these cases, the complaints were found to be without merit. Two of the complainants have exercised their discretion to refer to external bodies. The reason for the increase in incidents since 2009 is a result of previous reports only reporting incidents of discrimination. In 2010, we reported on all incidents relating to discrimination and harassment, including bullying.

Labour relationsFour union Collective Agreements were negotiated in 2010: Black Star Open Cut union Collective Agreement, Services Area union Collective Agreement, Mining Area union Collective Agreement and the Metallurgical Plants Area union Collective Agreement. The Health and Safety topics covered in those formal agreements with trade unions include: flexible working practices where individuals work to their capacities, subject to being safe, legal and competent; reasonable rest breaks between shifts; introduction of new rosters must be preceded by consultation and satisfy health and safety requirements, as well as clauses relating to personal protective equipment.

All employees are free to join a union and be represented collectively in line with Xstrata’s Business Principles, but subject to the existing Representation Order in Mount Isa. The Enterprise Agreement was renegotiated successfully at Xstrata Mount Isa Mines in 2010. At the Mount Isa Mines zinc-lead operations, the Enterprise Agreement covers 54% of the workforce. At the Mount Isa Mines copper operations, around 1,413 (64.7%) were covered by collective agreements.

Our peopleWe maintain a safe working environment based on mutual respect, equity and integrity.

Our goal is to realise the full potential of our employees.


Beau Butcher – Serviceman and Michael Gorry – Jumbo Operator, perform maintenance on a Jumbo at George Fisher Mine.

Xstrata Apprenticeship Program

Xstrata Mount Isa Mines runs the largest apprenticeship program in north Queensland, with more than 172 apprentices at our operations.

In 2010, we invested $5.1 million in apprenticeships and scholarships, with 50 apprentices plus 11 school-based apprentices and five school based trainees in the Skills Centre, our specialist apprentice and trainee training facility. We also offer existing employees interested in moving into a trade field the opportunity to undertake an apprenticeship through the internal Skills Centre.

In 2010 offers of employment were made for 56 apprenticeships and 19 for school-based trainees who commenced in 2011.

Developing vocational skills and professional skills

We have a range of programs that support the development of vocational skills and professional skills, including the Vocational Skills Development Program, Work Experience Program, Skills for the Future program, Gifted and Talented Program, and Graduate Program. For more detailed information on these programs, please refer to page 45 of the 2010 Xstrata Copper North Queensland and pages 25 and 26 of the Xstrata Zinc Australia Sustainability Reports.

We consult with employees in advance of any significant operational change. Minimum notice periods vary across our operations and are generally specified in collective agreements.

Benefits provided to permanent employees at Xstrata Mount Isa Mines that are not provided to casual employees include paid leave provisions, external/tertiary education assistance, higher rates of superannuation, disability cover, and salary continuance.

The majority of our employees (99.8%) belong to an accumulation style (defined contribution) superannuation funds. A small number belong to a defined benefit fund, which is held and maintained separately from Xstrata’s resources. Assets in the fund are currently greater than the vested benefits of the members. Benefits are payable based on the member’s final salary and the number of years of service with the company.

At Xstrata Mount Isa Mines, we provide industry-leading career development opportunities, competitive remuneration, and fair and non-discriminatory workplaces. Our remuneration system ensures equitable pay and allowances. Roles are based on relevant experience and qualifications, and non-

gender specific criteria. Entry-level wages are higher than the Australian minimum wage, and all positions attract the same rate of pay regardless of gender.

Our Mount Isa SD Workforce Committees comprised 73% employees and 27% management at the copper operations, and 50% employees and 50% management at the zinc-lead operations.

There were no days lost to industrial disputes or stoppages at Xstrata Mount Isa Mines in 2010.

Training and educationTo ensure our employees have the appropriate levels of safety and health competency to perform their work activities and in line with our commitment to developing our people, we invested $12.1 million on training locally during 2010, with an average cost of $2,817 per employee.

Building leadership

Our 2010 Leadership Development Program attracted 432 participants in Mount Isa, which aims to articulate the role of a leader within the business and provide participants with the required skills.

Above: Workers commencing a new shift at the George Fisher underground mine near Mount Isa.

Left: Mike Westerman – General Manager Mount Isa Copper Operations, talks with employees during shift changeover


Our people

Having begun work with Mount Isa Mines in 1957, Ian Brown has a wealth of knowledge about the mine and knows the operations like the back of his hand. Ian commenced his career as a Mill Operator for the No. 1 concentrator and worked in many areas including the Transport department, the Black Rock Open Cut, the underground Mining School and Sub Level Caves – Development Mining.

Ian was involved in some of the mine’s biggest projects including the building of the Copper Concentrator, No. 8 Tailings Dam, Fluoro Solids Roaster Copper Smelter, Mica Creek Power Station and power lines to Hilton, building of the lead stack and construction of the Lead IsaSmelt.

Ian’s experience in shaft sinking is so extensive that he has been involved in six major shaft sinks at Mount Isa Mines including K57 (now R62), A10S (now X41), P49 (at the old Hilton Mine), and K74 (at George Fisher Mine). In high demand due to

“It takes special people to run a mine and I’ve been privileged to work with a lot of them,” said Ian.

“Mount Isa is a wonderful place to live. It has everything that we’ve ever needed. My wife and I have become entrenched in the community over the years,” he said.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland said few people can say they have achieved over 50 years of service with Mount Isa Mines but Ian Brown is one of them.

“Ian has been an invaluable resource for the company and his experience, wisdom and charisma will be missed,” said Steve.

“Ian has experienced and accomplished so much in life – he truly is a Mount Isa Mines Living Legend,” he said.

his experience, Ian was seconded to Tasmania to work on the shaft sinking at the Lake Pedder Project, Gordon River.

For the past 39 years Ian has been involved in the underwater maintenance and recovery dive squad and estimates that over this time he would have spent more than 6.5 months under water!

Ian bared witness to the infamous eight month industrial dispute of 1964/1965, during which he spent time working in the Northern Territory and Tasmania.

For Ian however, the highlights of the past 53 years haven’t all been about work.

In 1958 he met his wife Valerie and they were married in 1960. Together they have three children, and in his spare time Ian enjoys playing golf, and is actively involved in community work.

Ian said that throughout his career he had worked with some brilliant people and had fantastic life experiences.

Case Study:

Ian Brown’s extraordinary career at Xstrata Mount Isa MinesMount Isa Mines’ very own ‘Living Legend’, Ian Brown retires after 53 years with the company.

Above: Ian Brown, retiring after 53 years.

Inset: Ian Brown (left) with colleagues early in his career.


Our people

Copper operations Zinc-lead operations

Employees by age and gender Female Male Total Female Male Total

under 30 143 572 715 69 345 414

30 to 50 157 1,038 1,195 75 529 604

over 50 19 331 350 4 127 131

Total 319 1,941 2,260 148 1,001 1,149

Xstrata Mount Isa Mines

Employees by employment contract Number Number

Permanent 2,143 1,115

Temporary/fixed term 117 34

Total 2,260 1,149

Employees by employment type Number Number

Full Time 2,236 1,122

Part Time 24 27

Total 2,260 1,149

Turnover profile by age and gender Female Male Total Female Male Total

under 30 37 115 152 21 80 101

30 to 50 42 160 202 15 75 90

over 50 4 42 46 1 21 22

Total 83 317 400 37 176 213

Turnover profile by role typeNumber of

leaversNumber of employees

Percentage turnover

Number of leavers

Number of employees

Percentage turnover

Executive Management 0 1 0 0 0 00

Senior Management 2 8 20 1 2 50.0

Management 32 150 17.6 4 11 36.4

Supervisors, administration, technical 122 683 15.2 56 340 16.5

Operational, production, maintenance 244 1,418 14.7 124 796 15.9

Total 400 2,260 17.7 185 1,149 16.4

Average training hours by employee Senior Management Workforce Senior Management and workforce

Average hours per employee/year 17.7 105.7 43.2

Average cost per employee/year $2,044 $5,242 $1,956

Training hours by role type Actual HoursAverage

Hours Actual hoursAverage

hours

Executive Management 0 0 0

Senior Management 71 18 3

Management 11,144 66 33

Supervisors, administration, technical 58,107 77 31

Operational, production, maintenance 283,553 174 71

Total 352,875 138 49,685 43

Ratio of men and women Women Men Women Men

Senior Management 11% 89% 0 100%

Workforce 14% 86% 15% 85%

Employees by role type and gender Female Male Total Female Male Total

Executive Management 0 1 1 0 0 0

Senior Management 1 7 8 0 2 2

Management 24 126 150 0 11 11

Supervisors, administration, technical 220 463 683 80 299 379

Operational, production, maintenance 74 1,344 1,418 94 663 757

Total 319 1,941 2,260 174 975 1,149


Our people

Sophia Johnson – Graduate Mining Engineer, practising the use of a grinder at the MICO New Starter Centre


Our people


Spinifex State College Year 9 students in the new Spinifex Junior Campus multimedia room


We record, monitor and address community complaints and we establish fair and equitable processes for engagement with Indigenous and local communities including, where relevant, free prior informed consent.

Key community challenges for our Mount Isa operations include:

■■ Building community capacity to improve social services and facilities

■■ Ensuring Indigenous cultural heritage is not affected by our mining operations

■■ Increasing emphasis on and awareness of our programs and their long-term, beneficial impacts on the development of our communities.

Stakeholder engagement and consultationXstrata Mount Isa Mines encourages dialogue with our stakeholders and integrates stakeholder feedback into business planning and strategy.

For more detailed information on our stakeholder engagement strategies, practices and consultation activities, please refer to the 2010 Xstrata Copper North Queensland Division and Xstrata Zinc Australia Sustainability Reports.

Xstrata Mount Isa Mines identifies its key stakeholders as:

■■ residents of Mount Isa

■■ Xstrata employees and contractors, unions and other organisations that represent these groups

■■ Traditional Custodian groups in north west Queensland, including the Kalkadoon

■■ business partners, including joint venture partners, suppliers and customers

■■ local, state, and national governments and their agencies

■■ inter-governmental bodies and organisations

■■ local schools

■■ local, regional, national, and international media

■■ non-government and community-based organisations

■■ Xstrata Community Partnership Program North Queensland (XCPPNQ) partners.

Engagement with stakeholders in 2010

■■ Distributing the 2009 Xstrata Mount Isa Mines Sustainability Report to employees and other key stakeholders

■■ Conducting three Community Information Sessions

■■ Conducting a 360° Stakeholder Survey to gain feedback on issues of importance to them and determine where best to direct our future efforts

■■ Conducting a publications survey

■■ Conducting two Supplier Forums

■■ Holding two Business Stakeholder Briefing Sessions for local business owners and associated groups regarding the Federal Government’s proposed Resources Super Profits Tax and Xstrata’s regional exploration program

■■ Mailing 10 issues of the Mine to Market newsletter to employees and stakeholders

■■ Launching a dedicated Mount Isa Mines website www.mountisamines.com.au

■■ Launching a freecall Community Feedback Hotline 1800 982 982

■■ Contributing articles to, and advertising in, the North West Star, and facilitating interviews with local radio outlets to keep community members informed about our operations

■■ Hosting four anniversary dinners for long- term employees celebrating 20, 30, and 40 years of service

■■ Conducting regular surface tours of the mining operations in conjunction with community tourism organisations

■■ Visiting local schools to explain mining and environmental processes to students studying mining units in science

■■ Hosting operational site visits for visiting Australian and overseas dignitaries

■■ Conducting community, employee and multi-stakeholder forums and workshops

■■ Organising regular customer, business partner and supplier meetings

■■ Publicising the Lead Pathways Study through local media and updates in Mine to Market

■■ Participating in regular meetings with our XCPPNQ partners

■■ Providing event management assistance for community events

■■ Participating in major local events such as the annual Mining Expo, Rodeo, Fishing Classic, NAIDOC Week celebrations and employment expos

■■ Having representation on a number of boards and committees of local community organisations

■■ Continuing our annual safety calendar competitions to engage children of employees of our Mount Isa operations

■■ Offering a freecall Ethics Line and other formal grievance mechanisms.

Sustainable communitiesXstrata Mount Isa Mines is proud of its reputation for social responsibility.

We are committed to contributing to the social, economic and institutional

development of the Mount Isa community to improve the quality of life for all.

Community feedbackAs part of our commitment to sustainable development and ensuring we identify and respond to community needs, we conducted the Xstrata North Queensland 360° Stakeholder Survey in October 2010.

More than 20 stakeholders in Mount Isa were interviewed as part of this survey and asked questions about their opinion of Xstrata’s community support programs, view of major social and environmental issues facing the community, the dissemination of information from Xstrata Mount Isa Mines and the best way for Xstrata to communicate news and information to Mount Isa residents.

From this research the following areas of concern in Mount Isa were identified:

■■ The economy, outlook for the future and the possible impact of a planned mining tax on Xstrata’s Mount Isa operations

■■ The lead issue and the impact negative publicity could have on attracting prospective workers and external businesses to Mount Isa if they perceive there is a health risk due to lead in the environment

■■ Employment opportunities for young and Indigenous people

■■ The impact of fly-in fly-out (FIFO) workers on the region and attracting and retaining skilled workers in Mount Isa

■■ Infrastructure access and costs.

An action plan will be developed to address issues and concerns raised and feedback from the survey will also be used to review and refine, where appropriate, our operational responses to these issues in 2011.

The Community Attitudes Survey (CAS) conducted in 2009 identified several key areas of concern facing the community. During 2010 we continued to address the community’s concerns:

Air pollution

Xstrata Mount Isa Mines maintains a robust air monitoring program including 10 sulphur dioxide (SO2) monitors and five high-volume dust samplers to monitor emissions in Mount Isa. We are also working on improving the capture and treatment of smelter emissions through the Smelter Emissions Project. During the year, several operational improvements were implemented to further reduce smelter emissions.

Please refer to the emissions section on pages 43 and 43 of this report for further details

Unemployment

We are maintaining our employee levels at Xstrata Mount Isa Mines, and delivering XCPPNQ initiatives addressing enterprise and job creation. The Xstrata Apprenticeship Program continued to expand with a further 50 apprentices employed in 2010, making the program the largest of its kind in north Queensland.

Future of the mine and long-term viability of the town

Xstrata Mount Isa Mines is committed to investing in CSI activities including the development of social infrastructure in Mount Isa. In 2010 we announced a $2 million contribution towards the construction of a new Dental Health Building and training centre at the Mount Isa Hospital.

Lead in blood levels in Mount Isa

Many residents were concerned with the issue of blood lead levels. Over the past six years, Xstrata has invested more than $275 million in over 220 environmental initiatives to minimise potential impacts of our operations on the environment and local community. We continue to support the Living with Lead Alliance to deliver community education programs concerning living safely with lead in Mount Isa. We also continue to offer free, independent and confidential blood-lead testing through Queensland Medical Laboratory for all community members.

During 2010, the university of Queensland progressed Phases Two (Air) and Three (Water) of the independent Lead Pathways Study following the July 2009 release of Phase One (Land) data that was independently peer reviewed. The reports for both Phase Two and Phase Three will be released and results communicated to the community during 2011. To date, Xstrata Mount Isa Mines has invested in excess of $30 million on a Smelter Emissions Project to further improve the capture and treatment of emissions from its lead and copper smelters.

In early 2011, a court proceeding was commenced on behalf of a claimant against Mount Isa City Council, the Queensland Government and Xstrata Mount Isa Mines seeking damages for alleged negligence. Our operations have never breached regulatory limits for respirable lead at any air monitor in the Mount Isa community since Xstrata’s acquisition of Mount Isa Mines in 2003 and Xstrata is prepared to answer the claim in court.


Sustainable communities

Residents of Laura Johnson Home enjoying the courtyard area recently renovated by members of Xstrata’s Indigenous Employment Program

Corporate Social Involvement programOur Corporate Social Involvement (CSI) program includes the Xstrata Community Partnership Program North Queensland (XCPPNQ) and a sponsorships and donations program. Through the XCPPNQ, we seek to develop partnerships with the community in the areas of art and culture, education, enterprise and job creation, the environment, social and community development and health. We also support a range of other community initiatives and major events in Mount Isa through a sponsorship and donations program, and provide significant in-kind support to community groups through the provision of goods, materials or personnel time throughout the year.

Since the XCPPNQ commenced in 2005, it has expanded to support more than 60 initiatives and several social infrastructure projects with a total program value of more than $16.4 million through to the end of 2010. In 2010, Xstrata Mount Isa Mines supported 10 initiatives with a program value of $560,000 under the XCPPNQ. In addition to this, we invested more than $533,326 in 2010 on sponsorships, donations and in-kind community support initiatives.

Community grievancesXstrata Mount Isa Mines operates a 24-hour community feedback hotline to manage complaints and enquiries and to provide feedback to callers. In late 2010 we launched a freecall Community Feedback Hotline 1800 982 982 and a dedicated feedback page on the Mount Isa Mines website www.mountisamines.com.au to further strengthen the link between our operations and the Mount Isa community.

In 2010, 69 complaints relating to Mount Isa Mines’ operations were received and 71 fallout damage claims were made. The

majority of our complaints related to fumes and in each case complainants were advised of the current Air Quality Control (AQC) Centre status and any action being taken. The AQC Centre closely monitors emissions and automatically closes down the smelter if emissions approach regulatory limits.

Indigenous rights and Aboriginal cultural heritageXstrata Mount Isa Mines facilitates the active involvement of Indigenous peoples such as the Kalkadoon through consultation, including capacity building initiatives where necessary or appropriate. Our Indigenous Affairs Policy has taken the position that identification of local lands with concern to Indigenous peoples shall be based on the Native Title Claims Register administered by the Australian Government’s National Native Title Tribunal (NNTT).

Aboriginal cultural heritage

In 2010 we continued to work collaboratively with the Kalkadoon people to improve operational procedures to ensure the protection and preservation of Aboriginal cultural heritage sites of significance on our Mount Isa mining lease.

During 2010 there were no known incidents of Indigenous rights being violated, and we recorded no breaches of Aboriginal cultural heritage as a result of our copper or zinc-lead operations. However, in July 2010, Xstrata Mount Isa Mines was fined $80,000 in respect of inadvertent damage to cultural heritage objects while a contractor worked to upgrade a road in Mount Isa in 2008.

Draft internal Aboriginal Cultural Heritage and Land Clearance procedures had been developed in consultation with the Kalkadoon people and were being trialled when the incident occurred. The procedures were

reviewed in light of the incident and are now in place. We take the issue of protecting Aboriginal cultural heritage very seriously and deeply regret this incident.

Xstrata Mount Isa Mines has a good working relationship with the Kalkadoon people and continued to work collaboratively with the Kalkadoon people to improve operational procedures to ensure the protection and preservation of Aboriginal cultural heritage sites of significance in 2010.

Employment programs, business opportunities and creating capacity

Please refer to pages 62 and 63 of the 2010 Xstrata Copper North Queensland and page 26 of the Xstrata Zinc Australia Sustainability Reports for more information on our support for the Structured Training Employment Project – Employment Related Services (STEPers), the National Indigenous Cadetship Support Program (NICS), business opportunities, and our involvement in the Queensland Resources Council’s North West Queensland Indigenous Resource Industry Initiative (NWQIRII) during 2010.

Mine closureAs a requirement of our Environmental Management System, Xstrata Mount Isa Mines maintains closure plans based on Xstrata’s Closure Facility guideline. Further details on our operations’ mine closure plans can be found in the 2010 Xstrata Copper North Queensland and Xstrata Zinc Australia Sustainability Reports.

Furthermore, a Closure Planning Working Group was established in 2010 with representation from all departments of the organisation. The working group identified gaps associated with closure planning and developed action plans to address the gaps in 2011.

Aboriginal Cultural Heritage Survey

Outcomes 2010

Number of Aboriginal Cultural Heritage Surveys completed

18

Total area covered (hectares) 1,974

Findings 2010

Aboriginal artefacts 6

Sites of significance 1

Total community complaints by type – Xstrata Mount Isa Mines

2% Access to property

50% Fallout damage

4% Blasting

1% Dust

40% Fumes

1% Noise

1% Traffi c amenities

1% Other

Total CSI expenditure by type –Xstrata Mount Isa Mines

20% Enterprise andjob creation

27% Social andcommunity

development

10% Education

14% Environment

27% Health

2% Art and culture





Kev Brogden – North West Wildlife Carer’s Group, bottle feeds a red kangaroo joey


Xstrata Community Partnership Program North Queensland projects

Enterprise and job creation

Project Partner Description Timeframe 2010 outcomes

North West Queensland Indigenous Catholic Social Services traineeships

North West Queensland Indigenous Catholic Social Services (NWQICSS)

Traineeships for disadvantaged Indigenous students

2008–10 Two new Indigenous trainees commenced traineeships in Community Services and have been placed across the NWQICSS network to work and develop skills needed to complete competencies. Both trainees completed their Certificate IV in Workplace Trainer and Assessor to become trainers for other NWQICSS staff.

Dugalungi Civil Construction and Mining Skills Prevocational Program

Myuma Pty Ltd Fund places for Indigenous participants in two separate 13-week live-in programs, and funds to support the expansion of training and mentoring services delivered during and between programs

2008–10 Myuma conducted two 13-week training programs at the Dugalungi camp in Camooweal in 2010, each of which attracted 30 Indigenous participants.Of the 60 participants who commenced the course 57 successfully graduated, with most securing full-time employment. In total, 33 competencies were delivered to each participant over the course of the program.

Education


Junior Future Classroom

Spinifex State College Develop a media classroom for students to gain exposure to multimedia technology

2008–10 Spinifex Future Classroom has been fully functional since early 2009. 2010 funding enabled the school to update and improve the technology resources and continue subscription to important educational software.

Social and community development


Mount Isa Safe Community Project

Mount Isa Safe Community Action Team (MISCAT)

Assist MISCAT’s application to the World Health Organisation to gain endorsement of Mount Isa as an international Safe Community

2007–09 Due to a delayed commencement to the program in 2007, the partnership continued in 2010.During the year MISCAT and the St George Institute facilitated the first community-based short course in Injury Prevention and Safety Promotion and held an Abstract Writing Workshop. MISCAT worked closely with a number of action partner groups and participated in community events to promote the safety programs implemented under the safe community banner.

Brilla Brilla Breakfast Program and community centre upgrade project

NWQICSS Fund a daily breakfast program at the Brilla Brilla Community Centre at yallambee Reserve, and assist with improvements to the Community Centre’s kitchen and laundry

2008–10 Healthy breakfasts were supplied to an average of 15–20 children five days a week, and around 20 lunches were prepared daily.Please refer to the case study on page 67 of the Xstrata Copper North Queensland sustainability report for a further update on this partnership.

Riverbed Action Group Burke Street Interventions Centre

NWQICSS Provide ongoing diversionary initiatives to combat issues associated with alcohol and substance abuse

2008–10 During 2010 the Interventions Centre ran a 16 week Alcohol and Other Dependencies (AOD) program with eight clients graduating from the program.All graduate clients are participating in follow up aftercare programs or have an open offer to enter this aftercare program.



Environment


Native animal and wildlife care program

North West Wildlife Carers Group

To fund supplies for registered carers in the north west region to assist them to nurse and rehabilitate injured wildlife

2008–10 A variety of native animals including 73 kangaroos, wallabies and over 100 birds were cared for by the North West Wildlife Carers Group.The Group educated the broader community about the importance of native animals in our ecosystem by conducting regular visits to schools and community groups.

Riversleigh Fossil Project

university of New South Wales

To help fund a number of collaborative educational, environmental and research initiatives into the geological and palaeontological resources of the Riversleigh Fossil Trail near Lawn Hill National Park

2008–10 Riversleigh fieldwork resulted in the discovery of a Diprotodon skeleton, the largest marsupial ever to have lived on earth, among other findings. The skeleton will be excavated during 2010–11. Xstrata funding has continued the development of the Xstrata Fossil and Mineral Trail and has helped PhD student Mira Van Der Ley commence her doctoral project focused on the Lawn Hill area of north west Queensland. Lectures and presentations about Riversleigh Fossils were given by researchers and numerous scientific papers produced.

Health


SimMan and SimBaby artificial simulators (medical mannequins)

Mount Isa Centre for Rural and Remote Health; and the Royal Flying Doctor Service (RFDS)

Provide local and regional health professionals with training in the diagnosis and implementation of advanced medical procedures

2008–10 Five Mount Isa District Advanced Life Support (ALS) refresher courses were held. Outreach trips with the RFDS continued and a new training session incorporating Xstrata Mount Isa Mines’ Rescues team and the Queensland Ambulance Service was held. Paediatric Grand Rounds and mock scenario sessions for Queensland Health staff continued, and the appointment of a Mount Isa Health District Coordinator has increased nursing participation in these training activities.

Diabetes Centre and education program

Queensland Health Funding towards a centre that provides modern diabetes management including a diabetes educator for outlying Indigenous communities

2008–10 Mount Isa Diabetes Service continued to provide advice on diabetes management and provided approximately 1,200 free consultations to diabetes sufferers in the Mount Isa community. The diabetes outreach clinic continued visits to the Indigenous communities of Mornington Island, Doomadgee and Normanton.A gap analysis was undertaken for the current service delivery resulting in increased focus and education on gestational diabetes. Xstrata’s support has enabled the purchase of equipment including sharps, containers and lancets.

Equipment upgrades Laura Johnson Home To support the region’s only aged care facility to upgrade its existing equipment and furniture

2008–10 Xstrata’s funding has enabled the home to upgrade the bathrooms in the high care wing and to purchase an additional shower trolley.In early 2010 work was completed on beautifying a courtyard area at the home as an in-kind support initiative between the Xstrata Skills Centre, Building Services Group and Community Relations.

Mount Isa Dental Health Building

Queensland Health To support the construction of a dedicated dental health facility as part of the Mount Isa Hospital Redevelopment

2010–11 An official launch of the Mount Isa Hospital Redevelopment was held in June 2010. Construction of the Dental Health Building is due for completion mid-2011.



Kerry O’Brien – Mount Isa Diabetes Clinic Outreach Educator, discusses nutrition with Frances Page

Denise Perkins – Centacare employee, assists Delta Jay Reid (Peppi) to complete a puzzle at the Brilla Brilla Community Centre

Eli Vincent – Environmental Technician, assists Barkly Highway State School students plant the native garden they won as part of Xstrata’s sponsorship of Green Week

The second initiative launched was a 24 hour community feedback hotline 1800 982 982. The hotline is available 24 hours a day, 7 days a week and is free from fixed lines.

Melanie Edgar – Manager Corporate Affairs and Community Relations North Queensland said that Xstrata Mount Isa Mines values the concerns and feedback of employees and local residents.

“We are committed to providing open, two way communication channels and have introduced these two initiatives to improve the way in which we interact with our people and the local community,” Melanie said.

“From its launch in November to the end of December 2010, the website had received nearly 900 visits, which has highlighted to us the importance to the community of a dedicated Xstrata Mount Isa Mines website.

Xstrata Mount Isa Mines conducts three Community Information Sessions throughout the year to share information on its operations and provide a forum for feedback from community members. At its final Community Information Session for 2010 held in November, Xstrata Mount Isa Mines launched two new initiatives to improve the way in which the company communicates with its employees and the local community.

The first initiative was a new website www.mountisamines.com.au, which is the central point for the latest information on Xstrata Mount Isa Mines’ operations. The website includes a feedback function so that anyone can register concerns online. All concerns are directed to the appropriate person at Xstrata Mount Isa Mines and handled in a professional and timely manner.

“And although members of the public were always able to contact us 24/7 with any concerns, it wasn’t a 1800 number so this new service is allowing the community to voice their concerns through a new freecall number,” she said.

The website and freecall number are accessible by all residents in the north Queensland communities where we operate – Mount Isa, Cloncurry, Townsville and Bowen.

Local Mount Isa resident Betty Regeling, said she had already used the hotline and was pleased with the new service.

“I read in the paper that Xstrata had a free hotline that residents could call if they had any concerns about their operations,” said Betty.

“I called the hotline in December with a query I had and I was really pleased that my concern was dealt with straight away, and I won’t hesitate to use this service again in the future,” she said.

Case study

Launch of new Mount Isa Mines website and 24 hour hotline for local residents

Xstrata believes that by contributing to the development of sustainable

communities, and engaging with our stakeholders in two-way, open

dialogue regardless of our location enhances our corporate reputation.

Our community relations practices are characterised by open and

honest engagement with all our stakeholders through effective,

transparent consultation and communication.




Adi Endro – Environmental Advisor and Ryan Francis – Graduate Environmental Advisor, sample water at the Mount Isa Golf Club

In line with Xstrata’s Sustainable Development (SD) Policy, we operate according to industry-leading environmental norms and, where relevant, eliminate, mitigate or repair the environmental impact of our operations.

The environmental management systems in place at Xstrata Mount Isa Mines are aligned with Xstrata’s Business Principles and SD Standards against which we regularly test our performance.

Our Mount Isa operations must comply with norms that sometimes go beyond legal requirements. We have set robust targets for our operations in terms of carbon intensity, energy intensity, fresh water consumption in arid areas and sulphur dioxide (SO2) emissions.

Environmental protection expendituresSince taking ownership of the Mount Isa Mines operations in 2003, Xstrata has invested in excess of $275 million on over 220 environmental initiatives. In 2010, Xstrata Mount Isa Mines invested more than $47.5 million on environmental protection, management and initiatives. Please refer to the table on this page.

Environmental performanceWe aim to preserve the health, functions and long-term viability of the natural

environments affected by our operations.

Environmental protection expenditures and investment by type

Expenditure/investment category Total

Capital* $18,179,657

Clean up costs for remediation of spills $180,000

Environmental consultants/contractors $4,112,707

Environmental personnel – employees $3,400,003

Licences/liability insurance $1,058,423

Rehabilitation and decommissioning costs $46,233

Research and development $2,977,313

Treatment and disposal of waste** $5,975,854

Treatment of emissions $4,131,780

Monitoring and analysis equipment $1,501,001

Operating costs – other $6,408,122

Total $47,519,399

* The majority of capital expenditure was related to the Smelter Emissions Project and the tailings reclaim water line installation.

** The significant increase in expenditure compared to 2009 is due to Electrostatic Precipitator (ESP) stockpiled material treatment.

Environmental Incident Classification

Incident Category Environmental impact

1 Negligible incident

2 Minor incident

3 Significant incident

4 Serious incident

5 Disastrous incident

Environmental challengesThe key environmental challenges for Xstrata Mount Isa Mines include:

■■ regulatory transition from the Mount Isa Mines Limited Agreement Act 1985, to the Environmental Protection Act 1994

■■ minimising emissions to air from processing areas and dust from surface operations

■■ managing site stormwater according to HAZDAM requirements

■■ preparing for and reducing our contribution to climate change

■■ minimising fresh water consumption and maximising process water reuse

■■ planning for effective progressive rehabilitation

■■ minimising waste generation and maximising materials recycling.

“ In line with Xstrata’s SD Policy, we operate according to industry-leading environmental norms and, where relevant, eliminate, mitigate or repair the environmental impact of our operations.”


Environmental incidents and complianceDuring the year, Xstrata Mount Isa Mines recorded a total of 82 negligible or minor environmental incidents, of which 75 were considered Category 1, and seven were considered Category 2. All incidents were investigated and corrective measures implemented to prevent recurrence. There were no Category 3 incidents recorded at Xstrata Mount Isa Mines in 2010. Regulatory non-compliances were reported to the Queensland Department of Environment and Resource Management (DERM).

In July 2010, Xstrata Mount Isa Mines pleaded guilty in the Brisbane Magistrates Court to one charge under the Aboriginal Cultural Heritage Act 2003 and was fined $80,000 in respect of inadvertent damage to cultural heritage objects while a contractor worked to upgrade a road in Mount Isa in 2008. We take the issue of protecting Aboriginal cultural heritage very seriously and deeply regret this incident.

For more information on our Mount Isa operations’ environmental plans, management systems and procedures, please refer to pages 86 to 95 of the 2010 Xstrata Copper North Queensland and pages 29 to 39 of the Xstrata Zinc Australia Sustainability Reports.

Transition from the Mount Isa Mines Limited Agreement Act 1985In May 2008, the Queensland Government passed legislation to transition Xstrata Mount Isa Mines from the Mount Isa Mines Limited Agreement Act 1985 to the Environmental Protection Act 1994. The current Mining Plan 2010–15 originally established under the Mount Isa Mines Limited Agreement Act 1985 will remain the guiding document for environmental management on site until the transition period expires and Xstrata Mount Isa Mines is provided with a new Environmental Authority beyond May 2011.

During the transition period Xstrata continues to work closely with the Queensland Government and other key stakeholders to implement the upcoming changes to our environmental regulation. Various studies were undertaken during this period to improve understanding of environmental conditions and help develop new Environmental Authority conditions.

Climate changeAs established in Xstrata’s SD Policy, we set targets to reduce our direct and indirect greenhouse gas emissions and work with governments, organisations and other groups to address climate change.

Xstrata Mount Isa Mines is committed to managing energy use and the emission of associated greenhouse gases. We recognise that the future impacts of climate change including increased regulation, higher energy costs, and physical impacts such as drought and flooding, present a risk to our operations.

We support a Climate Change Policy which leads to reductions in global emissions and introduces a carbon cost that is shared across the community. However, we believe that the policy must not prejudice Australian trade competitiveness causing the loss of Australian output and jobs simply to have the production and emissions move off-shore.

Carbon emissions

Xstrata Mount Isa Mines sets annual targets for energy and carbon intensity levels for each major operating area. The targets are set with the aim of reducing where possible, intensity levels year on year. Energy efficiency improvement and awareness programs are run to identify opportunities for actions to achieve these targets.

The amount of carbon emissions from our Mount Isa operations is heavily influenced by changing mineral properties and production rates. As ore grades decline, higher volumes of ore will still need to be processed in order to recover equivalent amounts of contained metal. This increase in processing will increase the site’s energy consumption making continued reductions in carbon intensity and energy intensity a significant challenge going forward.

Xstrata Mount Isa Mines’ carbon intensity per tonne of contained metal was higher during 2010, at 1.39 tonnes of CO2-e per tonne compared to 1.35 tonnes of CO2-e per tonne in 2009.

Xstrata Mount Isa Mines’ total greenhouse gas emissions are comprised of direct and indirect emissions (please refer to the Energy use by source table on page 40). Direct emissions are those which are generated by on-site activities, such as driving a diesel

0

1,200

200

1,000

600

Greenhouse gas emissions – Xstrata Mount Isa Mines^*

’000s tonnes CO2-e

2006 2007 20102008 2009

800

400

^ 2007–09 fi gures have been restated to account for a change in the reporting methodology related to the on-site generation of electricity

* GHG emissions in previous reports highlighted the breakdown between Mount Isa Mines copper and zinc-lead operations. One combined fi gure for Xstrata Mount Isa Mines is provided in this report.

991

927 98

8

877

742

0

3.0

0.5

2.5

1.5

Carbon intensity – Xstrata Mount Isa Mines*

tonnes CO2-e per tonne contained metal

* 2007–09 fi gures have been restated to account for a change in the reporting methodology related to the on-site generation of electricity

2.0

1.0

2009

1.35

2010

1.39

2006

1.4

0

2008

1.42

2007

1.45


Environmental Performance

Top: Xstrata Mount Isa Mines

Middle: Ryan Francis – Graduate Environmental Advisor and Adi Endro – Environmental Advisor, conduct bore sampling

Above and let: Mount Isa landscape

National Greenhouse and Energy Reporting System (NGERS)

Xstrata Holdings Pty Ltd was registered in accordance with National Greenhouse and Energy Reporting Act 2007 and our annual report was submitted to government in October 2010. Xstrata Mount Isa Mines’ activities are reported as part of the Xstrata Holdings Pty Ltd submission.

Due to the detailed and evolving mandatory reporting requirements of NGERS, we continue to review our existing data and reporting systems to improve data integrity and compliance. This process was applied to 2010 data in this report and has been retrospectively applied to previous years’ data. Changes to our GHG and energy data in this report is due to the way energy use for on-site generation of electricity is reported at Xstrata Mount Isa Mines. This has resulted in revisions to previously reported figures to now align with legislated Australian Government reporting requirements under NGERS.

powered truck. Indirect emissions are those which are generated by an external supplier that provides a product or service to the operation, for example emissions generated by a power station that supplies electricity to the site.

In 2010, Xstrata Mount Isa Mines directly emitted 495,000 tonnes of CO2-e, compared to 480,000 tonnes of CO2-e in 2009. The amount of indirect emissions (which are those emitted during production of our purchased electricity) was 493,000 tonnes of CO2-e, compared to 448,000 tonnes of CO2-ein 2009.

Carbon emission reduction through operation efficiencies

The energy efficient 30 megawatt (MW) Xstrata Power Station (XPS) continues to be operated as a base load power station. Due to its higher efficiency compared to alternate power supplies, the XPS reduces indirect emissions by 65,000 tonnes of CO2-e each year. The XPS is being expanded to a capacity of 39 MW with the expansion project to be completed in the second quarter of 2011.

Environmental performance


EnergyIn 2010, Xstrata Mount Isa Mines had a total energy consumption of 10.1 petajoules (PJ) compared to 9.6 PJ in 2009. This increase was primarily due to increased mining activity and ore processing volumes (e.g. the volume of ore processed increased by 9%). The increased mining and processing activity increased consumption of diesel fuel and electricity. Energy intensity per tonne of contained metal increased in 2010 to 14.3 GJ per tonne from 14.0 GJ per tonne in 2009.

Energy Efficiency Opportunities Program

Xstrata Holdings Pty Ltd is a participant in the Australian Government’s Energy Efficiency Opportunities (EEO) Program. Participants are required to assess their operations for energy saving opportunities and to publicly report on initiatives where the payback period for an initiative is less than four years.

The report for the 2009–10 reporting period, including details of Xstrata Mount Isa Mines’ EEO initiatives, is located on the Xstrata Mount Isa Mines website at www.mountisamines.com.au.

As part of the 2010 EEO program, we continued to engage the workforce in identifying and evaluating energy saving opportunities. Xstrata Mount Isa Mines has identified a number of energy saving initiatives. These include the Parkside Solar Project at Mount Isa (see case study on page 45), operational changes at the George Fisher mine to move more ore using the hoist instead of vehicles to reduce the amount of diesel consumed, and the optimisation of ventilation and refrigeration systems servicing underground copper mining at Mount Isa. Work will continue to evaluate and develop business cases for cost effective and technically feasible EEO opportunities in 2011.

Water management

Fresh water supply and use

Effective water management and conservation is critical to the long-term viability of our business. Our operations have taken an integrated approach to water management. Of the fresh water consumed at Xstrata Mount Isa Mines during the year, 100% was sourced from Lake Moondarra. In 2010, a total of 9,700 ML of fresh water was consumed by Xstrata Mount Isa Mines. The water intensity figure for 2010 was 13.23 kilolitres per tonne of contained metal.

Surface water

Surface water in the Mount Isa Mines region flows into the Leichhardt River and then into Lake Moondarra approximately 15 kilometres downstream of the major site operations. Water discharged off site is sampled and analysed, and the results provided to DERM.

In 2010, approximately $4 million was spent on installing a new tailings reclamation line, enabling water that would otherwise be lost to evaporation in the tailings dams, to be reused as process water on site. Other improvements to water management systems on site during 2010 included upgrading antipollution ponds, relining drains, and increasing stormwater pumping capabilities.

During the year, there were several minor instances of stormwater discharging off site from the King Gully area. Significant improvements are being made across site in order to maximise reuse of stormwater, and prevent stormwater from leaving site during high rainfall events. These activities include the King Gully diversion, and the Death Adder Gully (DAG) pumping system.

Energy use by source (GJ) – Xstrata Mount Isa Mines

Consumption 2010

Direct

Coal 319,000

Coke 1,019,000

Diesel 2,012,000

Natural gas 3,527,000

Other sources (other energy sources such as LPG, petrol, and oils and greases) 122,000

Indirect

Electricity 3,138,000

Total 10,137,000

* The increase in natural gas use from the figure reported in 2009 (1,140,000 GJ) is a result of the 2010 figure now including the gas used to generate electricity on site. Prior to 2010, only the natural gas used in the processes (i.e. the smelters) was included in the reported figure.

“ Xstrata Mount Isa Mines has identified a number of energy saving initiatives.”



Xstrata Mount Isa Mines tailings dam

Percentage and total volume (ML) of water recycled and reused – Xstrata Mount Isa Mines

2010

Total water used (includes potable, raw groundwater and recycled/process water) 38,800

Total water recycled or reused* 25,780

Percentage of water recycled and reused* 66%

* Does not include the use of groundwater, however groundwater is included as part of the total water used.

0

15,000

2,500

12,500

7,500

Energy use – Xstrata Mount Isa Mines^*

‘000s GJ

2006 2007 20102008 2009

10,000

5,000

10,7

63

9,56

2

10,1

37

7,95

2

7,11

7


* Energy use in previous reports highlighted the breakdown between Mount Isa Mines copper and zinc-lead operations. One combined fi gure for Xstrata Mount Isa Mines is provided in this report.

0

30

5

25

15

Energy intensity – Xstrata Mount Isa Mines^

GJ per tonne contained metal

20

10


2009

14.0

2010

14.3

2006

13.4

2008

15.4

2007

13.1

0

12

2

10

6

Fresh water use – Xstrata Mount Isa Mines^

8.0 8.

4

9.7

9.6

9.1

GL

2006 2007 20102008 2009

8

4

^ Fresh water use in previous reports highlighted the breakdown between Mount Isa Mines copper and zinc-lead operations. One combined fi gure for Xstrata Mount Isa Mines is provided in this report.

0

30

5

25

15

Water intensity – Xstrata Mount Isa Mines

kL per tonne contained metal

20

10

2009

12.3

2010

13.2

2006

16.6

2008

11.8

2007

16.9

BiodiversityBiodiversity and its management are of strategic importance to Xstrata Mount Isa Mines. We are committed to the integration of biodiversity conservation considerations into environmental and social decision making in the search for sustainable development outcomes.

Xstrata Mount Isa Mines manages approximately 30,000 hectares (ha) of land on mining lease ML8058. In 2010, 19.5 hectares (ha) of land was disturbed by Xstrata Mount Isa Mines for the construction of infrastructure and to support mine development. Numerous rehabilitation studies were progressed in 2010 to develop best practice rehabilitation techniques specifically tailored to the local environment.

In 2010, we continued biodiversity management planning comprising various projects and internal systems’ updates with outcomes from the ML8058 biodiversity study, which was finalised early in 2010.

During the year, recommendations from the ML8058 biodiversity study were developed and will remain ongoing in 2011. Biodiversity projects targeted key threatening processes for biodiversity on the lease and included development of a fire management plan, and pest management plan. No known effects were identified on the Red Goshawk, which is listed as ‘vulnerable’ under national legislation and the International union for Conservation of Nature (IuCN) Red List. During 2010, areas of conservation significance were managed by existing land management systems. No disturbed areas were identified during the biodiversity study as being of conservation significance.

Management of sulphur dioxide (SO2) emissions forms part of the biodiversity strategy as sulphur dioxide fallout from the smelters can have a localised impact on vegetation. The introduction of the acid plant in 2000, owned and operated by Incitec Pivot, reduced SO2 emissions from the copper smelter by 78% during 2010.

The conservation significance of ML8058 has been interpreted with respect to the surrounding landscape, the conservation status of the species present and the potential and actual threats operating on the lease.

Please refer to page 89 of the 2010 Xstrata Copper North Queensland and pages 33 and 34 of the Xstrata Zinc Australia Sustainability Reports for more detail on the biodiversity study and our Conservation Management Plan.



EmissionsXstrata Mount Isa Mines is committed to a process of continuous, proactive environmental improvement. Emissions monitoring, control and impact reduction strategies are a major component of environmental management.

In July 2007, Xstrata Mount Isa Mines established the Smelter Emissions Project to assess the feasibility to further improve the capture and treatment of sulphur dioxide (SO2) emissions from the lead and copper smelters. In 2010, Xstrata invested in excess of $8.7 million on a range of initiatives to limit emissions as part of this project.

At Xstrata Mount Isa Mines we have a comprehensive SO2 and dust monitoring network to measure and manage the impact of emissions on the community. The Air Quality Control (AQC) Centre monitors 10 SO2 real-time monitoring stations located in the community to ensure that the smelters operate within accepted regulatory limits. These in turn direct operations at Xstrata Mount Isa Mines’ copper and lead smelters and Incitec Pivot’s acid plant. No Mount Isa resident lives more than 1,200 metres from one of the real-time SO2 monitors.

There are also five high-volume dust samplers located throughout the community to monitor levels of respirable (particles small enough to be inhaled) lead, cadmium and arsenic in the air. These high-volume dust samplers collect samples of PM10 and PM2.5; that is, particulate matter less than 10 and 2.5 microns in size respectively, which are then analysed at an external laboratory.

Xstrata’s air quality monitoring system provides data which indicates that ambient 90-day average lead-in-air (PM10) concentrations in Mount Isa remained lower than the Mount Isa Mines Limited Agreement Act 1985 air standard during 2010. Ambient lead-in-air (PM10) concentration data for 2006–10 is shown in the graph on this page.

Dust generation is controlled primarily by regularly watering unsealed roads, keeping vehicle traffic volumes and speeds to a minimum and planning blasting to coincide with favourable weather conditions. Dust suppressant additives are also used at our operations and a road sweeper is used to maintain reduced levels of dust on the sealed road areas.

Xstrata Mount Isa Mines does not emit ozone depleting substances.

Annual sulphur dioxide (SO2) emissions

The annual average ground level SO2 concentration was recorded as 16 micrograms per cubic metre (µg/m3) in 2010, which has remained consistent with the 2009 average, and is an improvement on the 2008 average of 26 µg/m3. The 2010 result is well below the Mount Isa Mines Limited Agreement Act’s required level of 80 µg/m3.

Westerly winds have a significant impact on our Mount Isa operations. In 2010, the Mount Isa Mines AQC restricted smelter operations (including complete and partial shutdowns) for 889 hours in the copper smelter, and 536 hours in the lead smelter. The copper and lead smelters collectively recorded SO2 emissions of 176,000 tonnes in the 2009–10 National Pollutant Inventory reporting year. The copper smelter has achieved a 487,000 tonne (92%) decrease on SO2 emissions (from 530,600 tonnes) since the acid plant, owned by Incitec Pivot, was introduced in 2000.

National Pollutant Inventory (NPI)

The NPI is an initiative of the Federal Department of Environment, Water, Heritage and the Arts. The online database contains information relating to the emission of 93 substances from industrial facilities and diffuse (non-industrial) sources across Australia.

The NPI does not measure emissions into the community itself and cannot be used

directly to determine the potential impact of these emissions on the community and the environment.

Due to the proximity of Xstrata Copper and Xstrata Zinc’s mining, processing and smelting operations in Mount Isa, emissions are reported to the NPI as a single operational footprint. As a result, Xstrata Mount Isa Mines is comparable to the sum of multiple individual mines and industrial facilities listed on the NPI.

Xstrata Mount Isa Mines reported substantial decreases in seven of the eight emissions compounds to the NPI database in 2009–10 for which it was the top emitter the previous year. This included decreases in cobalt, copper, zinc, arsenic, lead, antimony and sulphur dioxide.

These decreases were due to an improved confidence in emissions estimates; a reduction in feed through the copper smelter; a focus on continuous environmental improvement; and an increase in the treatment of gas at Incitec Pivot’s acid plant, which takes sulphur dioxide gas from the copper smelter and turns it into liquid sulphuric acid. An increase in cadmium emissions was due to a change in the feed grade of the concentrates processed in the zinc-lead processing stream.

A summary of Xstrata Mount Isa Mines’ reported emissions for which it was the major contributor the previous year is outlined in the table on page 43.

Information on the NPI and estimated on-site emissions at the source are available from www.npi.gov.au.

0

2.0

0.5

1.5

1.0

Ambient PM10 lead-in-air 90 day averageconcentrations for monitored sites

µg/m3

2006 2007 20102008 2009

Mount Isa Mines Limited Agreement Act level

Monitoring Locations

RSLMiles St

BSDRacecourse

Kruttschnitt Oval

0

300

50

250

150

Annual* sulphur dioxide (SO2) emissions – Xstrata Mount Isa Mines

250*

*

263

176

210

240

‘000s tonnes

2006 2007 20102008 2009

200

100

Copper operations Zinc-lead operations

* National Pollutant Inventory (NPI) reporting year for Xstrata Mount Isa Mines is 1 July 2009 – 30 June 2010.

** 2008 data has been restated from 261 to 250 to correct a previous error.



Summary of top eight of the most significant on-site emissions estimates as reported to the National Pollutant Inventory (NPI)*

2009–10

% change to previous

year 2008–09


year 2007–08


year

Antimony (t) 5 -34% 8 -60% 21 -21%

Arsenic (t) 18 -54% 40 -37% 64 -15%

Cobalt (t) 9 -86% 68 83 37 290%

Copper (t) 28 -71% 95 -72% 338 -18%

Cadmium (t) 12 42% 9 -17% 10 144%

Lead (t) 118 -44% 209 -21% 263 -15%

Sulphur dioxide (t) 176,103 -33% 262,626 5% 249,131 19%

Zinc (t) 71 -70% 238 -25% 316 -30%

* The Xstrata Mount Isa Mines NPI report includes on-site emissions estimates for the copper and zinc-lead businesses in Mount Isa. Due to geographical location, George Fisher Mine and Handlebar Hill open cut (both zinc-lead operations) submit separate reports.

Emissions reduction strategies

A number of major projects are underway at Xstrata Mount Isa Mines to manage emissions as well as to assess the potential for impact from emissions, including the Smelter Emissions Project, and the Lead Pathways Study.

Smelter Emissions Project

Xstrata established a Smelter Emissions Project team in 2007 to characterise smelter emissions, identify opportunities to significantly increase the capture and treatment of emissions, and design and implement controls to realise those opportunities. As part of the Smelter Emissions Project, Xstrata Mount Isa Mines has been assessing the feasibility of and progressively implementing opportunities from over 120 emissions reduction initiatives.

A number of key activities of the Smelter Emissions Project in 2010 are outlined below.

At the Mount Isa copper smelter we:

■■ Designed and constructed off-site trials of Isasmelt furnace feed port sealed feeder prototype

■■ Designed, constructed and installed new ventilation system and new matte spout hood on rotary holding furnace No.1

■■ Carried out feasibility study for new hood and ventilation system on rotary holding furnace No.2 hood system

■■ Developed key performance indicators (KPIs) and worked with smelter operations to embed “Operational Best Practices for Reduced Emissions”.

At the Mount Isa lead smelter:

■■ Installation of new in-stack monitoring equipment

■■ Further research evaluating options for managing future emissions

■■ A pilot plant was operated to demonstrate the efficiency of Dynawave scrubbing technology (removing sulphur dioxide from off-gas, and producing effluent streams from which valuable by-products can potentially be extracted).

In 2011, work will continue on assessing the feasibility of, and implementing opportunities to significantly increase the capture and treatment of smelter emissions.

RSL Club, Barkly Highway

Erap St

Racecourse, Simpson St

Sunset State School

Qld Country Credit union,Camooweal St

Outback at Isa

Kruttschnitt Oval

Incitec Pivotacid plant car park

FN Land,Fourth Ave

Parkside Flats, Railway Ave

Brett Ave

Opal St

Kookaburra St

Miles St

North



SO2 MonitorsDERM Ambient Metals MonitorHi-Volume Monitors

Mount Isa air quality monitoring stations are strategically placed to ensure no resident is more than 1,200 metres from a real-time monitoring station



Lead Pathways Study

In late 2006, Xstrata commissioned an independent Lead Pathways Study to examine potential sources of lead in the Mount Isa community from both naturally occurring minerals and those from mining operations.

The Lead Pathways Study is a comprehensive research program being conducted by the university of Queensland’s Centre for Mined Land Rehabilitation in collaboration with the National Research Centre for Environmental Toxicology.

The Study has three phases to enable us to better understand potential pathways of lead into the Mount Isa community through land, air and water.

We are committed to this study and we will continue to act on its recommendations and keep the Mount Isa community informed of the study’s progress.

Read more about the Lead Pathways Study in the case study on page 45 of this report.

Waste and tailings managementAt Xstrata Mount Isa Mines all non-salvageable waste is disposed of in line with our strict waste management systems and legislative requirements. In 2010, over 4.1 million tonnes of waste material was recycled. The major components being 3.3 million tonnes of tailings used as underground fill in underground operations and slag materials reprocessed through the concentrators. Please see the table to the right for more information on other regulated wastes that were recycled.

There were no significant environmental spills during the year at Xstrata Mount Isa Mines.

Tailings from the copper and zinc-lead concentrators that are not recycled as fill for underground operations are stored as per the Tailings Placement Strategy. Currently, tailings’ dams seven and eight store all tailings produced by the operations.

The table here identifies the major waste streams of Xstrata Mount Isa Mines and the disposal or treatment method for each.

Major waste streams and disposal/treatment methods – Xstrata Mount Isa Mines

Waste type Amount Treatment methods

Recycled/reused

Batteries (t) 212 Recycled off site

Conveyor belt (m) 2,322 Repaired and reused on site

Scrap metal (t) 4,574 Recycled off site

Waste oil (kL) 780 Recycled off site

Waste sent to landfill

General waste (t) 5,163 General waste is disposed of in on-site landfills

Hazardous wastes (t) 15,168 Mount Isa Mines maintains a regulated landfill in which the majority of hazardous wastes generated on site are disposed where appropriate

Conveyor belt (m) 5,799 Conveyor belt that cannot be repaired is disposed of in an on-site landfill

Processing wastes

Tailings (t) 8,810,000 Tailings storage facility

(t) 3,294,490 Recycled as underground fill

Copper reverts (t) 86,500 Recycled in the copper smelter

Copper slag (t) 700,000 Recycled in the copper concentrator

Refractory block (t) 1,933 Majority (>95%) is recycled

Coarse rejects (t) 1,866,000 Primarily stockpiled, for potential future use

Lead slag (t) 200,367 Primarily stockpiled, for potential future use or sale off site



Water capture improvements to Death Adder Gully were completed during 2010 resulting in improved stormwater management

In late 2006 Xstrata Mount Isa Mines commissioned the Lead Pathways Study to better understand the potential pathways of lead in the Mount Isa community.

The Lead Pathways Study is an independent research program being undertaken by the university of Queensland’s Centre for Mined Land Rehabilitation in collaboration with the National Research Centre for Environmental Toxicology. The study has three phases of assessing potential pathways of natural and industrial sources of lead in the Mount Isa community through land, air and water.

In October 2010, the Lead Pathways Study team invited homeowners in Mount Isa to participate in the Phase Two (Air) house dust sampling program. Local homeowners showed full support for the house dust sampling program with the project team receiving over 100 requests to participate.

The project team identified the required 44 properties in line with the Property Selection protocol, to ensure a broad variety of houses were sampled, and to ensure a geographic representation of houses from across Mount Isa.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland said it was great to see the Mount Isa community support this landmark study.

“Our aim is to ensure this independent study delivers a comprehensive analysis of potential pathways of lead into the Mount Isa community,” Mr de Kruijff said.

“The collected dust samples from each house will be assessed for lead levels and potential human health impacts in various parts of the house.

“An analysis of these dust samples will also be used to compare lead samples taken at various sites across our operations, as well as naturally occurring lead sources across the community,” he said.

In July 2009 the Lead Pathways Study released its Phase One (Land) report; finding that the risk to human health from historical mine sediment is low.

Despite this finding, Xstrata has invested around $2.7 million to remove over 160,000 tonnes of soil containing historical mine sediment from the Leichhardt River. Xstrata is committed to the Lead Pathways Study and will continue to act on its recommendations.

Xstrata Mount Isa Mines anticipates that the Phase Two (Air) and the Phase Three (Water) reports will be delivered in 2011.

Case study

Mount Isa homeowners support Lead Pathways Study

Xstrata takes the health and safety of the Mount Isa community

very seriously and understands the unique situation of mining

and smelting operations situated close to town amid an area of

naturally-occurring lead mineralisation.

Associate Professor Barry Noller collects a house dust sample for analysis from Betty Kiernan – Member for Mount Isa’s – residence

SuSTAINABILITy REPORT 2010 45 SuSTAINABILITy REPORT 2010 45

Caption

MaterialsWe are committed to the efficient use of input materials. As a result we are actively seeking opportunities to reduce input consumption.

For example, a significant amount of cement is saved by using tailings in filling operations of the underground copper and zinc operations. Projects to improve the recycling and reuse of process water also have the benefits of a reduction in fresh water consumption, and potential flow-on benefits with respect to energy efficiency.

Product responsibilityA number of initiatives are in place at Xstrata Mount Isa Mines to facilitate and encourage responsible product design, and use, reuse, recycling and disposal of our products. This has been achieved through continuous improvements in our emissions reduction, materials use, waste management and environmental management systems and strategies.

In 2010, there were no significant fines for non-compliance with laws and regulations concerning the provision and use of products at Xstrata Mount Isa Mines.

Total materials usage – Xstrata Mount Isa Mines

Product Annual usage

Raw materials and consumables

Acetylene (m3) 7,537

Cement (t) 127,242

Coal (t) 11,802

Coke (t) 37,774

Copper Sulphate (t) 4,169

Flocculants (t) 404

Grinding media (t) 18,092

Lime/limestone – other purposes (t) 6,638

Limestone – flux (t) 90,169

Oils and greases – lubricating, hydraulic, cooling (kL) 2,354

Oxygen purchased (not made on site) (m3) 47,428

Silica (t) 49,317

Sodium carbonate (t) 62

Sodium hydroxide (t) 82

Tyres used – large vehicles, heavy equipment (No.) 724

Tyres used – light vehicle (No.) 3,529

Xanthates and other floatation reagents (t) 4,317

Fuel consumed

Diesel* (kL) 51,602

Kerosene (used but not combusted) (kL) 18

LPG (kL) 578

unleaded fuel (kL) 278

Wood (t) 278

Explosives

Explosives (t) 10,646

* In previous sustainability reports, ‘Diesel’ was reported as ‘Diesel non-transport’ and ‘Diesel transport’. From 2010, consumption will be recorded as one total amount.



Five TEOM dust sampling monitors are stationed within the Mount Isa community

Lee Kingdom - Air Quality Controller, analyses wind and weather data received from a doppler radar

We are committed to a process of continuous, proactive environmental improvement. Emissions monitoring, control and impact reduction strategies are a major component of environmental management at our operations in north Queensland. In 2010 we implemented a solar panels initiative in Mount Isa that demonstrates our leadership in environmental performance.

The initiative involved the installation of 96 Solar PV systems that have 155 kilowatts of total generating capacity. The solar panels will provide renewable electricity supply to apartments in the Xstrata Parkside accommodation complex used by Xstrata Mount Isa Mines for employee and contractor accommodation. The panels will provide export power to the local electricity grid at times when the apartments are not occupied.

Pieter Swart, Environment Manager North Queensland said the installation of the solar panels highlights to Queensland communities the benefits of renewable energy.

“These solar panels provide clean energy for our apartment complex in Mount Isa and demonstrate the effectiveness of solar technology to communities in north west Queensland,” said Pieter.

“Other environmental benefits include reduced use of fossil fuel generated electricity, reduced carbon dioxide emissions and lower energy costs.

“Again, this highlights to our local community and other stakeholders our commitment to investing in renewable energy and the process of proactive environmental improvement,” he said.

The installation will have metering of power generated by the solar panels to provide quantifiable results. The data will also be used for community promotion of and education about solar energy. It is estimated that this initiative will reduce greenhouse gas emissions by 500 kilograms of CO2-e per day.

The solar panels initiative will be eligible to create renewable energy certificates in accordance with the Australian Government’s renewable energy target scheme. In this way the project is supported by government, as well as through policies to encourage solar installations on households such as solar feed in tariffs.

The installation of the solar panels was completed in December 2010 and will operate indefinitely. Xstrata invested more than $900,000 on the implementation of this initiative.

Case study

Installation of solar panels in Mount Isa

Top: Kevin Lu – Electrical Engineer, and Bruce Valentine – Engineering Superintendent, inspect a section of the solar panel installation at Mount Isa Mines’ Parkside Accommodation

Left: Solar panel installation at Mount Isa Mines’ Parkside Accommodation

At Xstrata Mount Isa Mines, we recognise that the future

impacts of climate change including increased regulation,

higher energy costs, and physical impacts such as drought

and flooding, present a risk to our operations.



Children from Yallambee Indigenous community enjoy puzzle time at Brilla Brilla community centre

Summary of key sustainability data


Economic contribution 2008 2009 2010

Employee wages (AUD $ million)Division royalties, taxes and charges (AUD $ million)Corporate Social Involvement (AUD $ million)Apprenticeships, scholarships and training (AUD $ million)

37755.72.3416.5

39673.8

416.8

443651

18

Corporate governance and ethics

Total value of financial and in-kind contributions to political partiesPercentage of security personnel trained in human rights (%)

Nil100

Nil100

Nil100

Our people

Total workforce (No.)Employees (No.)Contractors (No.)

4,3673,428

939

4,0833,362

721

4,4923,4091,083

Total employees covered by collective agreements (%)Average hours of training per employee (No.)Percentage of employees hired from local area (%)

2,21772

Not reported

2,18711164

2,03311865

Fatalities (No.)Total Recordable Injury Frequency Rate (TRIFR) Mount Isa Mines copper operations (No.) Mount Isa Mines zinc-lead operations (No.)Lost Time Injury Frequency Rate (LTIFR) Mount Isa Mines copper operations (No.) Mount Isa Mines zinc-lead operations (No.)Disabling Injury Severity Rate (DISR) Mount Isa Mines copper operations (No.) Mount Isa Mines zinc-lead operations (No.)

0

10.413.1

0.50.5

98.880.7

1

9.317.8

1.052.1

175.04141.4

0

816.6

0.81.7

168.8494

Occupational illnesses (No.) 12* 16 23

Community

Community complaints (No.) 68 151 140

Environment

Direct energy use (PJ)Total energy use (PJ)Energy intensity (GJ per tonne contained metal)Carbon intensity (tonnes CO2-e per tonne contained metal)

8.010.715.41.42

6.79.6

14.01.35

7.010.114.31.39

Direct greenhouse gas emissions (CO2-e thousand tonnes)Total greenhouse gas emissions (CO2-e thousand tonnes)Sulphur dioxide emissions** (thousand tonnes)Ground level sulphur dioxide concentration (annual average micrograms per cubic metre)

565991250

26

480927263

16

49598817616

Total fresh water use*** (GL) 8.0 8.4 9.7

Land disturbed (ha)Total land rehabilitated (to date) (ha)

130

230

19.50

Category 3 (significant) incidents (No.)Category 4 (serious) incidents (No.)Category 5 (disastrous) incidents (No.)

000

000

000

Prosecutions (No.)Fines ($)

00

00

1$80,000

* Mount Isa zinc-lead operations did not report on occupational illnesses in 2008.** Data is for NPI reporting year 1 July 2009-30 June 2010.*** Does not include dirty water from mine dewatering, or groundwater consumed.

GRI indexThis table indicates where to locate information relating to GRI G3 indicators and principles

in this report or other publications.

fully reported partially reported not reported n/a = not applicable

Indicator Description Level Reference

Strategy & analysis

1.1 Statement from the most senior decision maker about the relevance of sustainability to the organisation and its strategy p.2-3

1.2 Description of key impacts, risks, and opportunities p.9-10

Organisational Profile

2.1 Name of the organisation IFC

2.2 Primary brands, products, and/or services IFC

2.3 Operational structure of the organisation IFC

2.4 Location of organisation’s headquarters IFC

2.5 Number of countries where the organisation operates, and names of countries IFC

2.6 Nature of ownership and legal form IFC

2.7 Markets served including geographic breakdown, sectors served, and types of customers/beneficiaries p.15

2.8 Scale of the reporting organisation p.1

2.9 Significant changes during the reporting periods p.7

2.10 Awards received in the reporting period p.10

Report Parameters

3.1 Reporting period for information provided p.7

3.2 Date of most recent previous report p.8

3.3 Reporting cycle p.7

3.4 Contact point for questions regarding the report or its contents IFC

3.5 Process for defining report content p.7

3.6 Boundary of the report p.7

3.7 State any specific limitations on the scope or boundary of the report n/a No specific limitations

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities n/a Not relevant

3.9 Data measurement techniques, and the basis of calculations n/a Did not substantially diverge from the GRI indicator

protocols

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and reasons p.7

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied p.7

3.12 Table identifying the location of the standard disclosures report p.50-52

3.13 Policy and current practices with regard to external assurance p.8

Governance, Commitments and Engagement

4.1 Governance structure of the organisation p.13

4.2 Indicate whether the Chair of the highest governance body is also an executive officer n/a Refer to Xplc 2010 Sustainability Report

4.3 State the number of members of the highest governance body that are independent, and/or non-executive n/a

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body n/a

4.5 Linkage between compensation and the organisation’s performance (including social and environmental performance) n/a

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided n/a

4.7 Process for determining the qualification and expertise of Board members on economic, environmental, and social topics n/a

4.8 Statements of mission or values, codes of conduct, and principles p.9

4.9 Procedures for overseeing the identification and management of economic, environmental, and social performance p.13

4.10 Processes for evaluating Board performance, particularly with respect to economic, environmental and social performance n/a Refer to Xplc 2010 Sustainability Report

4.11 Explanation of whether and how the precautionary approach or principal is addressed by the organisation p.9

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses

p.13

4.13 Memberships in associations and/or national/international advocacy organisations p.13

4.14 List of stakeholder groups engaged by the organisation p.7,29-31

4.15 Basis for identification and selection of stakeholders p.29

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group p.29-31

4.17 Key topics and concerns raised through stakeholder engagement, and how the organisation has responded p.30-31




Economic indicators

EC1 Direct economic value generated and distributed p.16

EC2 Financial implications, other risks and opportunities for the organisation’s activities due to climate change p.38

EC3 Coverage of the organisation’s defined benefit plan obligations p.24

EC4 Significant financial assistance received from government p.16

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation p.24

EC6 Policies, practices and proportion of spending on locally-based suppliers at significant locations p.9,16

EC7 Procedures for local hiring, and proportion of senior management hired from the local community p.23

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit p.16,31,33-34

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts p.16

Environmental indicators

EN1 Weight of materials used by weight or volume p.46

EN2 Percentage of materials used that are recycled input materials Not material

EN3 Direct energy consumption by primary energy source p.40-41

EN4 Indirect energy consumption broken down by primary source

EN5 Energy saved due to conservation and efficiency improvements p.10,38,40,46

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements

EN7 Initiatives to reduce indirect energy consumption and reductions achieved

EN8 Total water withdrawal by source p.40-41

EN9 Water sources significantly affected by withdrawal of water n/a No water sources significantly affected

EN10 Percentage and total volume of water recycled and reused p.40-41

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

p.41

EN12 Description of significant impacts of activities on biodiversity in protected areas and areas of high biodiversity value

EN13 Habitats protected or restored

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

EN16 Total direct and indirect greenhouse gas emissions by weight p.38-40

EN17 Other relevant indirect greenhouse gas emissions by weight Data is currently not recorded

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved p.38,40,43,47

Environmental indicators

EN19 Emissions of ozone-depleting substances by weight p.42

EN20 NOx, SOx, and other significant air emissions by type and weight p.42-43

EN21 Total water discharge by quality and destination p.40

EN22 Total weight of waste by type and disposal method p.44

EN23 Total number and volume of significant spills p.44

EN24 Weight of transported, imported, exported, or treated hazardous waste p.44

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by discharges of water and runoff

n/a No water bodies or habitats significantly affected

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation p.46

EN27 Percentage of products sold and their packaging materials that are reclaimed by category n/a -

EN28 Value and number of significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations p.38,49

EN29 Significant environmental impacts of transporting products and other goods and materials n/a No significant impacts

EN30 Total environmental protection expenditures and investments by type p.37

MM1 Amount of land disturbed or rehabilitated p.41,49

MM2 The number/percentage of sites identified as requiring biodiversity management plans, and with plans in place p.41

MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks p.44


GRI Index


Labour Practices and Decent Work

LA1 Total workforce by employment type, employment contract, and region p.23,26

LA2 Total number and rate of employee turnover by age group, gender, and region p.23,26

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations p.24

LA4 Percentage of employees covered by collective bargaining agreements p.23

LA5 Minimum notice period(s) regarding significant operational changes p.23

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

p.24

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region p.19-20

LA8 Education, training, counselling, prevention, and risk-control programmes in place regarding serious diseases p.20

LA9 Health and safety topics covered in formal agreements with trade union p.23

LA10 Average hours of training per year per employee by employee category p.24,26

LA11 Programs for skills management and lifelong learning p.24

LA12 Percentage of employees receiving regular performance and career development reviews All employees receive annual reviews

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity

p.23,26

LA14 Ratio of basic salary of men to women by employee category p.23

MM4 Number of strikes and lock-outs exceeding one week’s duration by country n/a No strikes or lock-outs

MM12 Approach to identifying, preparing for, and responding to emergency situations p.19

MM13 Number of new cases of occupational disease by type. Programmes to prevent occupational disease p.20

Human Rights

HR1 Percentage and total number of significant investment agreements that include human rights clauses or human rights screening n/a No significant investment agreements

in 2010

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken p.13

HR3 Employee training on policies and procedures concerning aspects of human rights p.13

HR4 Total number of incidents of discrimination and actions taken p.23

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk n/a No significant risk

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour n/a No risk for incidents

HR8 Percentage of security personnel trained in policies or procedures concerning human rights p.13

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken p.31

MM5 Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sties where there are formal agreements with Indigenous Peoples’ communities

p.31

Society

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

p.29-31

SO2 Percentage and total number of business units analysed for risks related to corruption p.13

S03 Percentage of employees trained in organisation anti-corruption policies and procedures p.13

S04 Actions taken in response to incidents of corruption n/a No incidents of corruption

SO5 Public policy positions and participation in public policy development and lobbying p.13

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country p.13

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes p.13

SO8 Monetary value of and total number of fines or non-monetary sanctions for non-compliance with laws/regulations p.31,38,49

MM6 Number and description of significant disputes relating to land use, customary rights of local communities and Indigenous Peoples p.31

MM7 The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and Indigenous Peoples, and the outcomes

p.31

MM8 Number (and percentage) of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks

n/a No artisinal mining and small-scale mining taking place

MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process n/a No resettlement

MM10 Number and percentage of operations with closure plans p.31

Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

p.46

PR9 Monetary value of significant fines for non-compliance with laws/regulations concerning the provision and use of products and services n/a No fines

MM11 Programs and progress relating to materials stewardship p.46


GRI Index


GlossaryAQC Air Quality Control centre. The centre monitors sulphur dioxide emissions and weather conditions and directs the operations of the Mount Isa Mines smelters to control sulphur dioxide concentrations within license limits.ATSI Aboriginal and Torres Strait Islander.AWAs Australian Workplace Agreements.Biodiversity An abbreviation of ‘biological diversity’ that means the variability among living organisms from all sources, including land based and aquatic ecosystems of which they are a part. These include diversity within species, and of ecosystems.Business Principles Xstrata’s Statement of Business Principles sets out the ethical framework for the way we work globally. The statement sets out specific aspirations and commitments that apply to the company’s relations with its customers, employees, stakeholders, partners, suppliers and in the communities where it operates.Carbon intensity Calculated as CO2-e tonnes per tonne of product.CAS Community Attitudes Survey.Closure Plan A formal document detailing a costed conceptual outline of how the operation will be completed, taking into account the options available to deal with prevailing social and environmental issues.CO2-e Carbon dioxide equivalent is a standard metric by which greenhouse gases other than carbon dioxide are converted to CO2 equivalence to facilitate comparisons and quantification.Commodity business Xstrata’s activities are structured into global commodity businesses organised along commodity lines.Community grievances Any issue raised by a member of the community relating to the operation in question, whether resolved or not. This can relate to an enquiry or other incident or non-compliance.CSI Corporate Social Involvement.DAG Death Adder Gully.DEEWR Federal Government Department of Education, Employment and Workplace Relations.DERM Queensland Department of Environment and Resource Management.DISR – Disabling Injury Severity Rate = (LTI days lost + RWI days lost) x 1,000,000/hours worked in the reporting period.DPM – Diesel Particulate Matter – consisting of small particles that aggregate to form chains to make larger particles which are usually less than one micron.EBAs Enterprise Bargaining Agreements.EEO Energy Efficiency Opportunity.EIS Environmental Impact Statement.EITI Extractive Industries Transparency Initiative aims to increase transparency in transactions between governments and companies within extractive industries.

EMS Environmental Management System(s).ERT Emergency Response Team.ESIA Environmental and Social Impact Assessment.ESL English as a second language.ETS Emissions trading scheme.Fatality A death resulting from an occupational injury or disease/illness and identified within the reporting period.FIFO Fly-in/fly-out (type of employee/contractor).Feed Ore entering the beginning of a unit process.Fresh water untreated water extracted from ground water, dams or rivers.GET Ground Engaging Tools.GFC Global Financial Crisis.GFM George Fisher Mine.GHG – Greenhouse gas Any gas that absorbs infra-red radiation in the atmosphere, causing the warming of the earth’s atmosphere.GJ Gigajoules (1 GJ = 1,000,000,000 joules).Global Compact The uN Global Compact is a voluntary corporate responsibility initiative to advance ten universal principles in the areas of human rights, labour, the environment and anti-corruption.GRI – Global Reporting Initiative a multi-stakeholder, international process whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines to assist corporations in reporting on the economic, environmental, and social performance of their operations.H1N1 Influenza A virus.ha Hectares (1 ha = 10,000 square metres).Hours worked Total number of hours worked by employees in the reporting period, including overtime and training, excluding leave, sickness and other absences, including the total number of contractor hours worked on site during the year.HPRI High Potential Risk Incident.IBA Indigenous Business Australia.IEP Indigenous Employment Program.ICMM International Council on Mining and Metals.ISO International Standardisation Organisation.ISO 14001 The International Standardisation Organisation’s standard for environmental management systems.ITEAs Individual Transitional Employment Agreements.IUCN International union for Conservation of Nature.JRC Job Role Criteria.JSA Job Safety Analysis.Kg Kilogram (1 kg = 1,000 grams).kL Kilolitre (1 kL = 1,000 litres).Km Kilometre (1 km = 1,000 metres).kW Kilowatt (1 kilowatt = 100,000 watts).Land disturbed Land disturbed by operational activities.

Land rehabilitated Land disturbed by operational activities and then reshaped and revegetated.LDP Leadership Development Program.Local supplier – a supplier from the nearest regional centre with proximity to our mining operations.LPG Liquid petroleum gas.LPS Lead Pathways Study.LSI Life Styles Inventory.LTI – Lost Time Injury An occupational injury or disease that results in days away from work on any rostered shift subsequent to that on which the injury occurred. A fatality is also recorded as an LTI.LTIFR – Lost Time Injury Frequency Rate Lost time injury frequency rate = LTI x 1,000,000/hours worked in the reporting period.M3 Cubic metres.Materiality Disclosing all information of significant concern to stakeholders for assessing our economic, environmental, and social performance.MCA Minerals Council of Australia.MISC Mining Industry Skills Centre.MISCAT Mount Isa Safe Community Action Team.MITA Mount Isa Tourism Association.ML Megalitre (1 megalitre = 1,000,000 litres or 1,000 kilolitres).ML8058 the Xstrata Mount Isa Mines mining lease.Mount Isa Mines Limited the copper and zinc-lead business operating on ML8058.MRRT Minerals Resource Rent Tax.MTI Medical Treatment Injuries – an occupational injury/illness which is not classified as an LTI or RWI, but which results in loss of consciousness or medical treatment after first aid.MW Megawatt, a unit for measuring electric power, which has the value of 1,000,000 watts or 1,000 kilowatts.MWh Megawatt hours.μg/dl Micrograms per decilitre.μg/m2/day Micrograms per square metre per day.NGERS National Greenhouse and Energy Reporting System.NGOs Non-governmental organisations.NICP National Indigenous Cadetship Program.NISC National Industry Skills Centre.NNTT National Native Title Tribunal.NOHSC National Occupational Health and Safety Commission.NOx Oxides of nitrogen (nitric oxide and nitrogen dioxide).NPI National Pollutant Inventory. Australia’s national public database of pollutant emissions.NWQIRII North West Queensland Indigenous Resource Industry Initiative.NWQMP North West Queensland Minerals Province.Occupational illness An occupational illness is registered when it is confirmed as a work-related compensable case by a medical practitioner/physician.Ore A mineral-bearing rock from which metal can be extracted.

Oz Ounces.Particulate emissions Controlled discharges from stacks containing microscopic solids in the form of dust or smoke.PASS Positive Attitude Safety System.PJ Petajoules (1 PJ = 1,000,000,000,000,000 joules).PM10 Particulate matter less than 10 microns in size.PPE Personal protective equipment.QMEA Queensland Minerals and Energy Academy.QML Queensland Medical Laboratory.QRC Queensland Resources Council.Recycled water Recycled/re-used water is water that has been used at least once in a process within the operation or at another operation within the organisation; and that would otherwise be part of a waste stream; and if not re-used, would require the input of raw water.Red List IuCN Red List of Threatened Species.Rehabilitation In this report, rehabilitation is defined as disturbed areas that have been prepared for rehabilitation and seeded.RFDS Royal Flying Doctor Service.RSPT Resources Super Profit Tax.RWIs Restricted Work Injuries.SD Sustainable Development.SD Standards A set of 17 Standards which set out corporate performance expectations for each operation and against which sites and commodity businesses are independently audited through the Xstrata SD Assurance Program.SO2 Sulphur dioxide.STEPers Structured Training and Employment Projects – Employment Related Services.Stormwater Rainfall that does not infiltrate into the soil but runs overland into creeks, catchment areas or man-made water storage facilities, such as dams (i.e. unplanned discharge of water).Tailings and tailings dams The fine fraction of waste rock remaining after the mining and on-site processing of mineral resources. Tailings are piped into engineered impoundments known as tailings dams.t tonnes.TRIFR – Total Recordable Injury Frequency Rate = (LTI + RWI + MTI) x 1,000,000/hours worked.TWL Thermal work limit.Wastewater discharged Total volume of effluent discharged to: surface water for irrigation; third parties for treatment; and rivers or oceans.WBV Whole Body Vibration.XCPPNQ Xstrata Community Partnership Program North Queensland.Xplc Xstrata plc.XPS Xstrata Power Station.Xstrata Mount Isa Mines Xstrata Copper and Xstrata Zinc operations on ML8058.XT Xstrata Technology.

MIM1699 05/11

Xstrata Queensland Limited ABN 69 009 814 019

GPO Box 1433 Brisbane Queensland Australia 4001 Tel +61 7 3295 7500 Fax +61 7 3295 7640

www.xstrata.com

www.mountisamines.com.au

Mount Isa Mines Limited ABN: 87 009 661 447

Private Mail Bag 6 Mount Isa Queensland 4825 Australia Tel +61 7 4744 2011 Fax +61 7 4744 3731

Xstrata Mount Isa Mines€¦ · Xstrata Mount Isa Mines operates two separate mining and processing streams, copper and zinc-lead-silver, at Mount Isa. Together the company’s mines

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