sustainable development in comalco new zealand aluminium smelter’s contribution to sustainable...
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Sustainable Development in Comalco
New Zealand Aluminium Smelter’s Contribution to Sustainable Development
David BloorManager-Health, Safety, Environment & Community Relations
What is Sustainable Development?• A standard definition
– “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Bruntland
• A mining & metals definition– “ensuring that our businesses create a valuable legacy rather than leave a
costly liability behind”• building capacity for diversified economic
activity• education and skills development• better public health• environmental protection
• What does it mean to us ?
What does it mean to us?What if people don’t believe our business behaviour is consistent with that?
• Will they want to work for us?• Will they want us as their neighbours?• Will they want to buy our products?• Will they want to invest in our business?• Will they trust us to care for
their environment and resources?• Will they elect people that will support us?
What are the implications of being unsustainable for our business?
The Response
Rio Tinto Policy:
“Rio Tinto businesses, projects, operations and products should contribute constructively to the global transition to sustainable development”
Comalco Core Purpose:
“To create the most sustainable value from our resources and relationships”
The Journey
Environment & Communities
Market Position
Health & Safety
Operational Excellence
People Commitment
Financial Strength
Strategic M
ap
VisionPurposeBusiness Results
‘To create the most sustainable value from our resources and relationships
The world’s preferred aluminium
business from mine to market
What does it mean - Safety• Reducing LTIFR from 9.25 in 1997 to 0.86 in 2003
for Comalco managed sites (The Goal is ZERO)– NZAS 2003 Performance – 0.43
• Achieving at least a NOSA *** rating across all sites
– NZAS 2003 performance ***** rating– Best 5 star smelter in Australasia and S.E. Asia
• Implementing and complying with RioTinto Safety Standards
– Winner of Rio Tinto CEO’s annual safety award
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - SafetyPlant Safety Performance
52
18
185
5445
126 3
61
2815
3 4 1
48
511
45
0
20
40
60
80
100
120
140
160
180
200
1997 1998 1999 2000 2001 2002 2003 2004Year
Nu
mb
er
of
Inju
rie
sFirst Aid Cases Recordable Injuries (LTI + MTC) LTIs
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Safety
0
5
10
15
20
25
30
35
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Year
LTIFR
NZAS
Contractor
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Safety
THE G O AL IS
ZER
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Safety
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Health• Continuing to reduce the number of respiratory illness
cases
• Developing and implementing Health Standards
• Applying more effective pre-employment screening
• Focusing on workplace hygiene
• Developing a programme to deliver 5-year occupational health targets for Rio Tinto
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Environment• Environmental Management Systems (ISO14001)
• Identifying priority areas for re-using, reducing or recycling the resources we use and the wastes we generate
– Developing viable solutions to problematic waste streams– Imaginative solutions for using resources more effectively
• Anticipating changing expectations– Moving “beyond compliance” to eliminate incidents
• Understanding the life cycle inventory of our operations
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Environment
1997 : 85 kg per car2002 : 117 kg per car
Each 100 kg of automotive aluminium replacing other heavier materials saves about 2 tonnes of CO² over the car’s life time from
enhanced fuel efficiency
0
50
100
150
200
250
300
1990 1995 2000 2005 2010 2015
kg
What does it mean - Greenhouse• Understanding the GHG debate – positive
participation
• Reducing on-site GHG emissions per tonne of Al by ~50% since 1990
• Investing in R&D to reduce the GHG intensity of our processes
• Working with industry groups and governments in policy formulation
• Promoting recycling and the life cycle benefits of Aluminium usage
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Greenhouse
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
A high aluminium end-of-life products recycling in the main applications:
95 % in automotive
92 to 98 % in building
For aluminium cans 40% in 1997 and 46% in 2002
Market share of aluminium cans45% in 1997 and 50% in 2002
Aluminium the recyclable material
What does it mean - Greenhouse
NZAS Site CO 2 - e / tonne Al
0.000.250.500.751.001.251.501.752.002.252.50
Fuel Process C PFC's
ton
nes
CO
2 -
e /
ton
ne
Al
19902003
1990 - 264, 083 tonnes2003 - 333, 653 tonnes
1990 – 4.48 t CO2 e / t Al
2003 – 2.09 t CO2 e / t Al
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Greenhouse
14.00
14.50
15.00
15.50
16.00
16.50
1974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004
DC KW Hr / Kg Al
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
How significant is this ?
What does it mean - Greenhouse
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
Enough electricity to power the wholeof Bluff – a township of 2,200 people
What does it mean - Communities• Understanding what is important to the
needs of our communities where we operate and following up with action
• Building capacity
• Communicating about our activities and listening to feedback
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean - Communities• Positive participation in the kakapo recovery
programme.
• Resolving long-standing community issues
• Regional Needs Analysis survey
• Public tours – open doors
• Building a national profile
• New Zealand Business Excellence Award
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean – Our People
• Surveys to determine what is important to our employees and following up with action
• Employment and training
• Equal opportunities
• Role-based training
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean – Our People
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
• Employer of choice
• Culture of trust, understanding, contribution where our people work to the maximum of their potential and ability
• “The Way We Work”
• NZAS average age of our people is now ~ 45 years with more than 15 years of service.
What does it mean – Markets
• Working with our customers and suppliers to enhance SD (our performance and theirs: e.g. safety, environment, assurance)
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
What does it mean – Markets
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
• NZAS produces the highest quality, highest purity aluminium from any of the 200 smelters across the world
• 90% of product is value added
• Shipping to markets across the world
What does it mean – Bottom Line• Delivering positive value to shareholders
• Delivering positive value to New Zealand
– Electricity sales
– Wages
– Taxes
– Goods and services
• Delivering value via business improvement
– Six Sigma
– One Comalco
• Competing in a global commodity market
Environment & Communities
Market Position
‘Sustainable value’
Health & Safety
Operational Excellence
People Commitment
Financial Strength
Working for a sustainable future• NZAS is a true world-class aluminium smelter competing
in a tough global market.• NZAS creates wealth for all stakeholders• NZAS is recognised for
– World class safety performance– Environmental excellence– Supplier of choice : purest aluminium anywhere in the world– Value adding use of New Zealand’s sustainable energy
resources– Excellence in business performance– Sustained improvements across our business– An example for others to follow
Working for a sustainable future• As we say……..
New Zealand Aluminium Smelters……….
Creating value for New Zealand
Sustainable Development in Comalco
New Zealand Aluminium Smelter’s Contribution to Sustainable Development
David BloorManager-Health, Safety, Environment & Community Relations