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BHP BILLITON aLumINIum CuSTOmER SECTOR GROuP REPORT 2006

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A message from the President, Aluminium Customer Sector Group ..........................2BHP Billiton Aluminium Customer Sector Group Profile ............................................3Product summary ........................................................................................................5Managed operationsWorsley, australia .......................................................................................................6BHP Billiton maatschappij Suriname (BmS) ...................................................................7mozal, mozambique ....................................................................................................8Hillside, South africa ...................................................................................................9Bayside, South africa ................................................................................................ �0Non-managed operationsParanam Refinery, Suriname ....................................................................................... ��alumar, Brazil ........................................................................................................... �2mineração Rio do Norte Sa (mRN), Brazil ................................................................... �3Sustainability at BHP Billiton Aluminium ................................................................. �4BHP Billiton Charter .................................................................................................. �5BHP Billiton's Sustainable Development Policy ............................................................ �6Governance .............................................................................................................. �7Sustainability overview ............................................................................................. 2�Health .........................................................................................................................22Safety .........................................................................................................................29Environment ...............................................................................................................38Community .................................................................................................................55EconomicSocio-Economic: Our people and our neighbours ........................................................ 68Economic contributions ............................................................................................. 75HSEC Awards ........................................................................................................... 76Statistics for the financial year 2006 ....................................................................... 77Process description: mining, refining, smeltingaluminium at workaluminium facts and figuresTransport sector case studyGlossary

CONTENTS

aCkNOWLEDGEmENTSThis report was produced by the aluminium Customer Sector Group of BHP Billiton.

Editor: Hendrik LouwEnquiries:marius van TonderGeneral manager, HSECBHP Billiton aluminiumTel: +27 35 908 [email protected]

Typeset and designed by:

aRTWORkS Communications, Durban, South africa

MANAGED OPERATIONSWORSlEy Worsley RefineryGastaldo Road, Worsley, Western australiaPO Box 344 Collie, Western australia 6225Tel: +6� 8 9734 83�� • Fax: +6� 8 9734 84�[email protected] • www.wapl.com.au

Boddington Bauxite MineWilliams Pinjarra Rd, Boddington, W. australiaPO Box 50 Boddington, Western australia 6390Tel: +6� 8 9883 8005 • Fax: +6� 8 9734 [email protected] •www.wapl.com.au

BHP BIllITON MAATSCHAPPIj SuRINAME (BMS)Paranam Operations�3 V. H. HogerhuysstraatPO Box �8�0, Paramaribo, SurinameTel: +597 32328�, ext. 242 • Fax +597 3233�4

HIllSIDE AluMINIuMPO Box 897, Richards Bay 39009 West Central arterial, Richards BayTel: +27 35 908 8��[email protected]://aluminium.bhpbilliton.co.za

BAySIDE AluMINIuM4 Harbour arterial, Richards Bay, 3900PO Box 284, Richards Bay, 3900Tel: +27 35 999 2��http://aluminium.bhpbilliton.co.za

MOzAlBeloluane Industrial Park Boane District PO Box �235 maputo mozambiqueTel: +258 2� 735000 • Fax: +258 2� [email protected] [email protected]://aluminium.bhpbilliton.co.za


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In the field of HSEC our goal is to achieve zero Harm. This is not a simple task and success requires the positive commitment and supportive efforts of all our employees.

In the fiscal year just ended our safety performance as measured across lagging indicators was mixed. We did not meet the year on year improvement goal we set ourselves, as not all parts of the aluminium Customer Sector Group (CSG) made positive progress.

So while there is clearly still a challenge before us, I believe we are on the right track and the necessary commitment of the aluminium CSG to HSEC values and targets is clearly demonstrated by our employees. This year saw a total of 66 entries for the aluminium CSG in the annual BHP Billiton HSEC awards function (a new record), of which ten have been selected as finalists. In addition, submissions of case studies to the Corporate Sustainability Report were of the highest standard, reflecting excellent work by individuals and teams in the area of HSEC across all our operations globally.

Our focus on behavioural safety remains a high priority, underpinned by significant allocation of financial and other resources to the improvement of the working environment at all operations through the implementation of the BHP Billiton fatal risk control protocols. Combined with a drive to report near misses, we believe we are well on the way towards achieving the employee mindset required to assist the elimination of serious incidents which may cause fatality or serious process damage. This focus will continue in the coming period.

The CSG occupational health management program is well developed now and a plan to identify and address occupational exposure as well as perform medical surveillance of all employees is in place at all our sites. In addition we have matured our health focus with further implementation of the BHP Billiton Fit for Work/Fit for Life programs. In the past period specific emphasis has been placed on drug and alcohol, fatigue management, travel health and medical assessment programs.

Community health work by the CSG, particularly in the southern africa region, has continued to receive much of our attention, given the priority of these concerns in this region. HIV/aIDS and malaria programs continue to receive acclaim from third parties and our aim is to apply our efforts in the coming period to similar initiatives in other parts of the african continent where we may have influence.

In terms of environmental management our programs continue to address the demands of deteriorating raw material quality as well as to ensure that we meet our targets for emissions reductions and land and water management.

as with most resources, aluminium continues to enjoy global demand growth, with resulting high prices. This is reflected in our financial and production results for 2006. The commitment and contribution of our employees to the sustainable and value-based growth of our company plays a major part in the ability of the business to meet these demands. The continued commitment for all employees to our HSEC values and to quality production will sustain this delivery into the future.

Graeme Hunt President, BHP Billiton Aluminium

a mESSaGE FROm THE PRESIDENT


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BHP Billiton is a major producer of primary aluminium, with a total operating capacity from our operated sites of around 14 million tonnes of bauxite, in excess of 4 million tonnes of alumina and in excess of 1.3 million tonnes of aluminium per annum.

The aluminium CSG comprises sites in South america, Southern africa and australia. These include:

• primary aluminium smelters – Hillside aluminium and Bayside aluminium located in South africa, mozal located in mozambique, and alumar in Brazil

• alumina refineries – Worsley located in australia, Paranam in Suriname and alumar in Brazil

• bauxite mines – mRN located in Brazil, BmS in Suriname and Boddington in australia.

The aluminium CSG services key market segments such as the automotive sector, the packaging sector and the construction industry. The CSG is supported by marketing hubs located in The Hague and Singapore, and South africa for domestic sales.

The aluminium CSG is a division of BHP Billiton, the world’s largest diversified resources company, with more than �00 operations and offices in 25 countries.

The Company was created in 200� through the dual listed companies merger of BHP Limited (now BHP Billiton Ltd) and Billiton Plc (now BHP Billiton Plc). Headquartered in melbourne, the Company has primary listings on the australian and London stock exchanges.

BHP BILLITON aLumINIum CSG PROFILE

Worsley operations.

BHP BIllITON % SHAREHOlDING

Primary aluminium smelters %

Hillside aluminium, South africa �00%

Bayside aluminium, South africa �00%

mozal, mozambique 47.�%

alumar, Brazil 40%

Alumina refineries

Worsley, australia 86%

Paranam, Suriname 45%

alumar, Brazil 36%

Bauxite mines

mRN, Brazil �4.8%

Lelydorp III, Suriname 45%

Coermotibo, Suriname 45%

kaaimansgrasie, Suriname 45%

klaverblad, Suriname 45%

Boddington, australia 86%


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KEYOperated sitesNon-operated sites

231

4

7865

aBOuT THIS REPORTThe Report covers the health, safety, environment and community performance and socio-economic contributions of the operations which are managed by BHP Billiton’s aluminium Customer Sector Group, for the period � July 2005 to 30 June 2006. For completeness, the non-managed operations are listed below and profiled on pages ��-�3. all the statistics in this Report refer to operated sites only. Statistics reported reflect �00 per cent production by sites as well as full sustainability impact.

aLumINIum CSG maNaGED OPERaTIONS1 Mozalmozal is a primary aluminium smelter in maputo Province, mozambique.

2 Hillside AluminiumHillside is a primary aluminium smelter in Richards Bay, South africa.

3 Bayside AluminiumBayside is a value-added primary aluminium smelter in Richards Bay, South africa.

4 Worsley Worsley comprises a bauxite mine and an alumina refinery in Western australia.

5 BHP Billiton Maatschappij Suriname (BMS)BmS comprises bauxite mines at Lelydorp III, Coermotibo, kaaimangrasie and klaverblad, Suriname.

NON-maNaGED OPERaTIONS6 Paranam Refinery, SurinameThe Paranam refinery is 45 per cent owned by BHP Billiton, and managed by alcoa.

7 Alumar, BrazilThe alumar Consortium (alumar) is an unincorporated joint venture comprising an alumina refinery, aluminium smelter and support facilities, located in Sao Luis, Brazil.

8 Mineração Rio do Norte (MRN), Brazil

BHP Billiton owns �4.8 per cent interest in mRN, a Brazilian mining company which extracts and processes bauxite (�7 million tonnes per annum).

Mozal, Mozambique.

Alumar refinery, Brazil.


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Product summary

aLumINaBauxite is processed at the refineries in South-Western australia and Suriname, South america, to produce alumina (aluminium oxide), a white-ish powder seen here being transported on an overland conveyor to the Hillside smelter from Richards Bay harbour.

T-BaRST-bars are cast at the South african smelters, Bayside and Hillside, for customers requiring primary aluminium in a larger format.

BauXITEBauxite is extracted from the mining operations at Worsley in South-Western australia, Lelydorp III and Coermotibo in Suriname, South america, and at the non-managed mRN operation in Brazil.

INGOTSPrimary aluminium produced at the smelters in southern africa and South america is cast into ingots for efficient handling and transportation.

Redraw rod Rolling ingotExtrusion billet

Value added aluminium products produced at Bayside, South Africa


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Worsley, australiaWorsley Alumina’s operations are based on a mine site, refinery and ship loading operation in the South West region of Western Australia.

Bauxite is mined from reserves mainly within state forest on the eastern edge of the Darling Ranges in Western australia, near the township of Boddington.

The bauxite is crushed and carried 5�km by a two-flight cable belt conveyor system to the refinery site at Worsley.

It is then processed, and the separated alumina is carted by rail and exported through the Port of Bunbury.

Worsley commissioned a new, high technology ship loader at the Port in February this year. The Cleveland cascade chute design incorporates the latest technology in dust and noise control.

There are around � 300 employees at the mine site and refinery including more than �00 trainees, apprentices and graduates. many more jobs have been created through the employment of sub-contractors and the purchase of goods and services from local businesses.

Community developmentWorsley works closely with neighbourhood communities, providing regular information about its activities as well as providing community support through its sponsorship programs.

Community liaison committees established at the refinery and at the mine site provide a direct interface between the company and the neighbourhood community. The company also conducts regular briefings for government, non-government and community groups.

Sponsorship activities are focused on adding long-term value to neighbourhood communities through social programs, the development of community infrastructure and by establishing government and community partnerships for special projects.

Worsley is also providing significant economic benefits to the region through its support of local contractors, businesses and suppliers.

HistoryThe Worsley alumina project takes its name from the settlement of Worsley, once a thriving timber town near Collie in the southwest corner of Western australia.

The project dates back to the early �960s when a group of local business people formed a company to explore, develop and sell deposits of bauxite ore on the eastern side of the Darling Range.

There were several changes in ownership before construction of a mine site and refinery began in �980. The first alumina was produced in april �984.

In �985, production reached one million tonnes. Since that time a number of expansion projects, upgrading works, new technology and process efficiencies have enabled production to grow to a capacity of around 3.3 million tonnes a year.

In april this year, Worsley was given environmental approval to increase production to 4.4 million tonnes a year. a feasibility study is in progress.

The 51 km overland conveyor transports bauxite to the Worsley refinery.

Operations Bauxite mine, alumina refinery, and ship loading facility

location Boddington, Worsley and Bunbury in Western australia

Shareholding BHP Billiton: 86% Japan alumina associates (australia) Pty Ltd: �0% Sojitz alumina Pty Ltd: 4%

Production commenced april �984

Annual production 3.3 million tonnes alumina

No. of employees � 300

Market Export

HSEC Report www.wapl.com.au

WORSlEy AT A GlANCE

aLumINIum CSG maNaGED OPERaTIONS


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KAAIMANGRASIE

KLAVERBLAD

BMS AT A GlANCE

Operations Lelydorp III, Coermotibo, kaaimangrasie and klaverblad bauxite mines

location Suriname

Shareholding BHP Billiton: 45% Suralco: 55%

Production commenced �940

Annual production 5 million tonnes bauxite, 2.2 million tonnes alumina

No. of employees 2 200

Market Bauxite to Paranam alumina refinery

BHP Billiton maatschappij Suriname, Suriname

BMS operations comprise bauxite mines at lelydorp III and Coermotibo, Suriname.

Lelydorp III is an open-pit bauxite mine situated in the coastal plain of Suriname, around 25 kilometres south of Paramaribo and �7 kms west of the Paranam refinery.

In the bauxite mining process the overburden is removed by a bucket wheel excavator and dragline. Bauxite is removed using an excavator, and transported to the Paranam refinery by road.

The Coermotibo mine is a surface mine located �50 kms east of the Paranam refinery. The bauxite is hauled to the Coermotibo crushing and loading facility and subsequently transported by barge to the Paranam refinery.

as the Lelydorp III and Coermotibo mines will be depleted in early 2007, BHP Billiton and joint venture partner Suralco are investing $200 million to develop two new bauxite mines, kaaimangrasie and klaverblad, which will be operational by mid-2006 and mid-2007 respectively.

Rehabilitation and closure plans are in place for the Lelydorp III and Coermotibo mines.

Community developmentThe BHP Billiton Suriname Sustainable Development Foundation was established in 2005 to initiate, implement, coordinate and manage sustainable projects in Suriname in partnership with key stakeholders. a key objective of the Foundation is to secure the participation and involvement of local communities in projects from the outset.

The Foundation selects projects which support capacity building and strengthening of local communities, create long term and sustainable income for communities, and contribute to socio-economic upliftment of the communities where BmS operates.

The Foundation has identified five focus areas for sustainable development: education, health, job creation, arts and culture, and environment.

HistoryIn �939 the Billiton company, which was originally involved in tin mining in Indonesia, came to Suriname to explore bauxite, and mining started in �940. In �970 the Royal Dutch/Shell Group bought Billiton, which was headquartered at The Hague, Netherlands. In �984 the first joint venture with alcoa’s affiliate Suralco was signed.

In august 2003 the mining and refining joint venture with Suralco was reviewed, and the current division of ownership was adopted.

Mining bauxite, Suriname.


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mozal, mozambique

Mozal, situated near Maputo in southern Mozambique, produces around 560 000 tonnes of aluminium per year using upgraded Pechiney AP35 technology. Mozal employs around 1 100 people directly. An estimated 10 000 people benefit from Mozal’s indirect job creation.

Partnerships have been a vital component of mozal’s success. mOTRaCO was formed by the public owned Electricity Company of mozambique (EDm), South africa (Eskom) and Swaziland (SEB) to deliver mozal's power requirements. maputo Port Development Company and the mozambiquan Railway and Port authority (CFm) are responsible for bringing the alumina ships to mozal’s dedicated berth at matola and for despatching the aluminium ingot vessels to Europe.

Community developmentThe mozal Community Development Trust (mCDT) was established in august 200� by the mozal shareholders to address five key areas: small business development, education and training, health and environment, sports and culture and community infrastructure. In the health arena, key programs addressing HIV/aIDS and malaria have been initiated.

The mCDT works with communities situated within a 20 km radius of the smelter, although projects in the matola and maputo city areas are also considered. a key aspect of the mCDT’s work is that communities are encouraged to take ownership of programs so that they can play a proactive role in improving the quality of their lives.

HistoryThe successful completion of the Hillside smelter in Richards Bay, and the arrival of a new era of peace and stability in southern africa following democratic elections in South africa and mozambique in �994, provided the impetus for the construction of the mozal smelter.

after receiving the backing of the mozambican government and completion of a feasibility study and environmental impact assessment, Billiton and project partner, the Industrial Development Corporation of South africa, gave the project the green light in June �997.

Construction of phase � of the project began in July �998. at a budgeted cost of $�.�8 billion, it was the first major development in mozambique for 30 years and the country's largest private investment ever.

Phase � was successfully completed six months ahead of schedule and within budget. The first aluminium was cast in June 2000 and the first ingots exported in august that year.

In June 200�, phase 2 of the project was approved with a construction budget of $860 million. The expansion, completed ahead of schedule and within budget in august 2003, doubled capacity.

An aerial view of Mozal.

MOzAl AT A GlANCE

Operations aluminium smelter

location maputo, mozambique

Shareholding BHP Billiton: 47.�% mitsubishi Corporation of Japan: 25% Industrial Development Corporation (Sa): 24% mozambique Government: 4%

Production commenced June 2000

Annual production 560 000 tonnes primary aluminium

No. of employees � �00

Market Export

HSEC Report www.mozal.com


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Hillside Aluminum is a modern primary aluminium smelter with 720 reduction (electrolytic) cells, producing in excess of 700 000 tonnes aluminium per annum.

The smelter is based on Pechiney aP35 technology and employs around � �00 people directly and � 500 indirectly. The Hillside smelter is situated in Richards Bay, 200 km north of Durban, kwaZulu-Natal, South africa, and was commissioned between July �995 and June �996.

Community developmentHillside aluminium is a strategic investor in local community development, supporting a variety of projects in health, education, skills development, job creation, crime prevention and environmental conservation.

Hillside employees are represented on a CSI Employee Forum which screens funding applications from community organisations. This forum, together with the matched Giving and Give-as-You-Earn programs, ensures that employees get actively involved in community development efforts.

HistoryHillside aluminium was established in Richards Bay in �995. The smelter was located in Richards Bay due to the availability of competitively priced electric power in South africa and because of the town’s deep-water port.

an expansion, completed in 2003, increased the smelter's capacity by around �30 000 tonnes per year.

Hillside, South africa

A potline at Hillside Aluminium. Aerial view of the Hillside smelter.

HIllSIDE AT A GlANCE

Operations aluminium smelter

location Richards Bay, South africa

Shareholding BHP Billiton: �00%

Production commenced July �995

Annual production 700 000 tonnes primary aluminium

No. of employees � �00

Market Domestic and export

HSEC Report http//:aluminium. bhpbilliton.co.za


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Bayside, South africa

The Bayside Aluminium smelter was established at Richards Bay, South Africa, in 1971. It is the only producer of value added primary aluminium products in southern Africa.

an upgrade of the B and C potrooms in 2002 realised a significant improvement in environmental performance.

a $25 million upgrade completed in November 2003, which improved safety, quality and productivity in the Casthouse, turned the Bayside smelter into a facility capable of competing with the world’s most modern plants.

Bayside currently produces �80 000 tonnes of primary aluminium per annum. The smelter employs around � 000 people directly and another � 000 indirectly.

Bayside’s expertise lies in the manufacture of a wide product range including rolling ingot, extrusion ingot and redraw rod for local and export markets. Total casting capacity at Bayside is 250 000 tonnes.

Community developmentBayside smelter is a strategic investor in local community development, supporting a variety of projects in health, education, skills development, job creation, crime prevention and environmental conservation.

Bayside employees are represented on a CSI Employee Forum which screens funding applications from community organisations. This forum, together with the matched Giving and Give-as-You-Earn programs, ensures that employees get actively involved in community development efforts.

HistoryThe Bayside smelter was established by the South african company, alusaf, in �97� close to the port of Richards Bay.

The alusaf smelter was the first major industry to be established at Richards Bay. This region has now become a significant and rapidly growing industrial centre linked to the busy deep-water port.

The Bayside smelter is situated close to the Richards Bay harbour. Redraw rod produced at Bayside.

BAySIDE AT A GlANCE

Operations auminium smelter

location Richards Bay, South africa

Shareholding BHP Billiton: �00%

Production commenced may �97�

Annual production �80 000 tonnes primary aluminium


Market Domestic and export

HSEC Report http//:aluminium. bhpbilliton.co.za


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Paranam, Suriname

Paranam refinery, Suriname.

PARANAM AT A GlANCE

Operations alumina refinery

location Suriname

Shareholding BHP Billiton: 45% Suralco: 55%


Annual production 2.25 million tonnes alumina

No. of employees 860

Market Export

aLumINIum CSG NON-maNaGED OPERaTIONS

The Paranam Refinery is situated in Paramaribo, Suriname, close to the Coermotibo and lelydorp III mines which supply it with bauxite. The operations in Suriname are a joint venture between Suralco (55%) and BHP Billiton (45%). Suralco is responsible for the management of the Paranam refinery, while BHP Billiton is responsible for the management of the bauxite mining activities.

The refinery is a low temperature plant utilising Bayer technology, and produces around 2.3 million tones of alumina per year – all of which is exported.

Construction of the refinery began in �958, was fully operational by �965, and contributes substantially to progressive development within Suriname.

alumina mined and refined by Suralco is sold into the global market for smelting and further processing.

Community developmentToday, Suralco is Suriname’s largest private employer and tax payer. The company further contributes to the national economy through substantial purchases of local goods and services, contributions to charity, and support of social, sports, cultural, educational, and other activities. The company’s policies and practices are directed toward the promotion of trade and industry in the country as well as toward the improvement of living conditions for employees, their families, and the communities in which they live.

HistorySuralco was incorporated in Suriname in �9�6 as Surinaamsche Bauxite maatschappij N.V. This early company was solely engaged in the development, mining, and export of the country’s bauxite resources until the signing of the Brokopondo agreement in �958. This agreement created a joint venture with the Suriname government for the development of hydroelectric power on the Suriname River and a fully integrated aluminium industry in the country. The company’s name changed to Suriname aluminium Company (Suralco).

The construction of industrial facilities covered by the Brokopondo agreement started immediately in �958. By �965, when the refining and smelting plants went into operation, more than $�50 million had been invested.

In �984, Suralco and Billiton maatschappij Suriname (BmS) signed two agreements: one for the exploration of bauxite and one for the production of alumina. a second joint venture between Suralco and BHP Billiton was signed in august 2003.


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alumar, Brazil

Alumar, located in Northern Brazil, produces around 440 000 tonnes of aluminium and 1.5 million tonnes of alumina per annum.

alumar is situated in São Luis Island, in Northern Brazil. It is one of the world’s largest industrial complexes in the primary aluminum segment and comprises:

• a port with a capacity for berthing ships up to 50 000 tonnes where the raw materials are unloaded (bauxite, coke, pitch, coal and caustic soda)

• a refinery, where the alumina is extracted from bauxite, producing around �.5 million tonnes per year. most of this production is sent to the alumar smelter

• a smelter which produces around 440 000 tonnes per year of primary aluminum ingots.

alumar has a positive impact on the regional and national economies, employing more than � 800 people and � 605 contractors.

The environmental management system adheres to the principles of sustainable development that are based on economic prosperity, and social and environmental responsibility. The health and safety management system is based on adherence to rigorous standards and the elimination of risks. The company invests in prevention processes and programs, focusing on employee awareness and commitment.

Community DevelopmentSince its establishment alumar’s relationship with the community has grown through consistent and effective participation in local projects and activities, in partnership with community and government institutions.

HistoryBilliton and alcoa started construction of the alumar industrial complex in �980, and operations began in august �984.

an expansion project in the refinery is currently being implemented that will result in an increase in production from �.5 million tonnes to 3.5 million tonnes per year. The expansion is scheduled for completion in mid-2008.

The entrance to the Alumar refinery.

AluMAR AT A GlANCE

Operations alumina refinery & aluminium smelter

location Northern Brazil

Shareholding Refinery alcoa: 54% BHP Billiton: 36% alcan: �0% Smelter alcoa: 60% BHP Billiton: 40%

Production commenced august �984

Annual production �.5 million tonnes of alumina 440 000 tonnes primary aluminium


Market Domestic & international

Ã

The Alumar smelter.


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mineração Rio do Norte (mRN), Brazil

MRN’s operations include bauxite mining, beneficiation, railroad transport and ship-loading.

Bauxite ore deposits at mRN are found at an average depth of eight metres.

after beneficiation, the ore is transported from the mine to the port on a 30km-long railway. at the port, the ore is stored to feed the dryers or it is conveyed wet to the ships. The port’s draft can accommodate ships of up to 70 000 tonnes capacity.

The project’s initial production capacity was three million tonnes per year. Current capacity is over �7 million tonnes per year of bauxite ore.

Community developmentmRN is situated in the amazon, and the company is fully aware of its responsibility to ensure there is no negative impact on the community and environment.

The social programs developed by mRN, through partnership with external stakeholders and the volunteering participation of its employees, are built on four pillars: education, health and safety, environment and sustainable development. The ethical and social behaviour carries the essence of the paths the Company has followed towards achieving balance and harmony among employees, the community and the environment, which is translated into sustainable social and economic development, and simultaneously improving the quality of life of its employees and their families, of local communities and of the society as a whole.

Since its first year of operations, mRN has been engaged in efforts to reduce environmental impacts, including the following key programs:

• rehabilitation of mined-out areas

• elimination of solid particle emissions from the bauxite dryer stacks

• rehabilitation of Lake Batata.

Historyafter the discovery of bauxite in the amazon in �960, a number of companies got together to initiate a bauxite mining project. Construction began in �976 and the first ore was mined in �979, with an initial capacity of three million tonnes per year.

an expansion project completed in 2003 increased bauxite capacity to its current level of �6.3 million tonnes per year.

Loading bauxite ore, MRN.

MRN AT A GlANCE

Operations Bauxite mine

location Oriximiná, Brazil

Shareholding Vale do Rio Doce alumínio Sa: 40% BHP Billiton metais Sa: �4.8% alcan alumínio do Brasil Ltda: �2% Cia. Brasileira de alumínio – CBa: �0% alcoa alumínio Sa: 8.58% Norsk Hydro do Brasil Ltda: 5% alcoa World alumina LLC: 5% abalco Sa: 4.62%


Annual production �7 million tonnes


Market Domestic and international


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The business caseFor BHP Billiton, sustainable development is about ensuring our business remains viable and contributes lasting benefits to society through the consideration of social, environmental, ethical and economic aspects in all that we do, according to our own Charter and Sustainable Development Policy (see pages �5 & �6).

Without a profitable business, we are simply unable to contribute to the broader goals of sustainability. We recognise, however, that our bottom line performance is dependent on ensuring access to resources and securing a licence to operate. Therefore maximising the bottom line is about recognising the value protection and value add that can be achieved through enhanced performance in the non-financial dimensions. We term this our sustainability value add and recognise the value it can bring to our business through:

• reduced business risk and enhanced business opportunities

• gaining and maintaining our licence to operate and grow

• improved operational performance and efficiency

• improved attraction and retention of our workforce

• maintained security of operations

• enhanced brand recognition and reputation• enhanced ability to strategically plan for the longer term.

Our approachOur Sustainable Development Road map is a strategy map that provides a contextual framework for how we measure our progress on our journey towards sustainable development.

We will be encouraging our managers to place their decisions in the context of this Road map and question how they can better improve the sustainability performance of our operations. The Road map seeks to illustrate that there are three contexts to consider when making decisions that influence our ability to contribute to sustainable development.

at the operational level, we will be encouraging our managers to increasingly seek out leading practices across the HSEC dimensions. On a strategic level, we will be encouraging management teams to identify opportunities that drive sustainable value creation. at the commodity level, we will be encouraging our businesses to demonstrate stewardship by building partnerships across the lifecycles of our products to deliver broader business and societal returns. We recognise that there may not always be a need for operations to excel in all aspects of sustainability, and therefore encourage an approach whereby operations strive for excellence in areas where they perceive the greatest relevance to their stakeholders and business. While each stage in maturity is distinct, it is recognised that the requirements of the previous stage must be maintained and built upon in order to progress in maturity.

mature sustainable development is about strong leadership and foresight. We see this as leading to the strategic alignment of

Legislation Systems & Procedures

Values & Behaviours

Efficiencies & Partnerships

Leadership

BuSINESS MATuRITy >

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Compliance Operational Leading Practice

Threat Strategic Opportunity Identification

Insular Stewardship Partner Focused

PHASE 1 Compliance

PHASE 2 Risk

management

PHASE 3 Responsibility

PHASE 4 Innovation

PHASE 5 Strategic

alignment

Sustainable Development Road Map

SuSTaINaBILITY aT BHP BILLITON aLumINIum

opportunities – for example, the use of spent potlining in the cement industry.

Sustainability challengesOur sustainability challenges are those issues that we believe may have a material impact on our ability to be a successful business. These include:

• Fatal risks – Our challenge is to fully implement and optimise the safety management standards we have developed. We need to ensure that all our employees and contractors understand, apply rigorously, and fully comply with these standards.

• Occupational and community health – Our challenge is to ensure that our health programs are continually evolving in order to maintain our journey towards Zero Harm, recognising and influencing those factors that impact upon our employees, their families and our communities.

• Greenhouse gas emissions – Our challenge as a member of global society is to help meet the world's minerals and energy needs while mitigating the potential impact of greenhouse gas emissions on the climate.

• Access to resources – Our challenge is to achieve access to the resources relevant to our scope of operations while addressing heightened political and societal expectations related to obtaining and maintaining a ‘licence to operate’.

• Sustainable community development and closure – Our challenge is to maximise the benefits to communities during the operational phase of the operation so that we leave a lasting positive legacy after closure.


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BHP BILLITON CHaRTER

To prosper and achieve real growth, we must:

• actively manage and build our portfolio of high quality assets and services,

• continue the drive towards a high performance organisation in which every individual accepts responsibility and is rewarded for results,

• earn the trust of employees, customers, suppliers, communities and shareholders by being forthright in our communications and consistently delivering on commitments.

We value:

• Safety and the Environment – an overriding commitment to health, safety, environmental responsibility and sustainable development.

• Integrity – Including doing what we say we will do.

• High Performance – The excitement and fulfilment of achieving superior business results and stretching our capabilities.

• Win-win Relationships – Having relationships which focus on the creation of value for all parties.

• The Courage to lead Change – accepting the responsibility to inspire and deliver positive change in the face of adversity.

• Respect for Each Other – The embracing of diversity, enriched by openness, sharing, trust, teamwork and involvement.

We are successful in creating value when:

• our shareholders are realising a superior return on their investment

• our customers and suppliers are benefiting from our business relationships

• the communities in which we operate value our citizenship

• every employee starts each day with a sense of purpose and ends each day with a sense of accomplishment.

Chip GoodyearChief Executive Officer

October 2004

WE aRE BHP BILLITON, a LEaDING GLOBaL RESOuRCES COmPaNY. Our purpose is to create long-term value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions.


< �6 >

Chip GoodyearChief Executive Officer

September 2005

OuR aPPROaCH TO HEaLTH, SaFETY, ENVIRONmENT aND THE COmmuNITY

BHP BILLITON'S SuSTaINaBLE DEVELOPmENT POLICY

At BHP Billiton our objective is to be the company of choice – creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business partners and host communities.

We aspire to zero Harm to people, our host communities and the environment and strive to achieve leading industry practice. Sound principles to govern safety, business conduct, social, environmental and economic activities are integral to the way we do business.

Wherever we operate we will develop, implement and maintain management systems for sustainable development that drive continual improvement and ensure we:

• do not compromise our safety values, and seek ways to promote and improve the health of our workforce and the community

• identify, assess and manage risks to employees, contractors, the environment and our host communities

• uphold ethical business practices and meet or, where less stringent than our standards, exceed applicable legal and other requirements

• understand, promote and uphold fundamental human rights within our sphere of influence, respecting the traditional rights of Indigenous peoples and valuing cultural heritage

• encourage a diverse workforce and provide a work environment in which everyone is treated fairly, with respect and can realise their full potential

• set and achieve targets that promote efficient use of resources and include reducing and preventing pollution

• enhance biodiversity protection by assessing and considering ecological values and land-use aspects in investment, operational and closure activities

• engage regularly, openly and honestly with people affected by our operations, and take their views and concerns into account in our decision-making

• develop partnerships that foster the sustainable development of our host communities, enhance economic benefits from our operations and contribute to poverty alleviation

• work with those involved through the lifecycles of our products and by-products to promote their responsible use and management

• regularly review our performance and publicly report our progress.

In implementing this Policy, we will engage with and support our employees, contractors, suppliers, customers, business partners and host communities in sharing responsibility for meeting our requirements.

We will be successful when we achieve our targets towards zero Harm, are valued by our host communities, and provide lasting social, environmental and economic benefits to society.


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Management of the Health, Safety, Environment and Community aspects of the Aluminium Customer Sector Group is governed by a framework of policies, standards, procedures and protocols which emanate from the parent company, BHP Billiton. The BHP Billiton Charter and Sustainable Development Policy (shown on pages 15 and 16) are the key documents governing all BHP Billiton operations.

Structure and responsibilitiesBHP Billiton's organisation for sustainable development is characterised by the following key features (see diagram opposite):

• a Sustainability Committee (formerly HSE Committee) of the Board provides assurance on HSE matters across the Group

• Line management has primary responsibility and accountability for HSEC performance

• The HSEC function provides advice and guidance and advocates leading practices directly, and through a series of networks across the business

• Executive remuneration is directly linked to performance indicators that include health, safety, environment and community targets.

Hierarchy of systems and documentsOur hierarchy of systems and documents (as shown opposite) represents our HSEC system and other related Company policies and documents.

Central to our business is our Company Charter, which expresses our Company’s ‘overriding commitment to health, safety, environmental responsibility and sustainable development’.

Supporting the values of our Charter is the Sustainable Development Policy. While we strive to deliver strong financial returns to shareholders, we fully recognise and deliver on our wider responsibilities to our stakeholders – as the Policy states: ‘our objective is to be the company of choice – creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business partners and host communities.’ Integral to this is our aspirational goal of Zero Harm.

The Guide to Business Conduct applies to our entire workforce, regardless of their specific job or location. It provides employees and contractors with direction and advice on conducting business and interacting with governments, communities and business partners.

The BHP Billiton HSEC Management Standards form the basis of the development and application of HSEC management systems at all levels in the Company, and represent a key process through which we drive our contribution to sustainable development.

The Standards cover all operational aspects and activities across the entire lifecycle of operations that have the potential to affect HSEC, either positively or negatively. The terminology Health, Safety, Environment and Community (or HSEC) has been utilised throughout the Standards to highlight four key components of sustainable development. These are:

GovernanceBHP Billiton: sustainable development

organisational structure

Risk & Audit Committee

Global Ethics Panel

BHP Billiton Board

*Executive Management

Customer Sector Groups

Site line Management

Corporate HSEC

CSG HSEC Representatives

HSEC Personnel

Sustainability Committee of the Board (formerly HSE Committee)

* includes the Office of the Chief Executive, Executive Committee and Operating Committee

Ensuring alignment with Company sustainability objectives

Health – promoting and improving the health of the Company’s workforce and host communities.Safety – ensuring that safety values are not compromised, and providing a workplace where people are work without being injured.

Environment – promoting the efficient use of resources, reducing and preventing pollution, and enhancing biodiversity protection.

Community: • internal community: engaging regularly with employees & contractors• external community: engaging regularly with those affected by

our operations, including our host communities• human rights: understanding, promoting and upholding fundamental

human rights within BHP Billiton’s sphere of influence.

Hierarchy of systems and documents

Charter

Sustain- able

Development Policy

HSEC Management Standards

Procedures, Protocols, Guidelines and Toolkits

Business-based HSEC Management Systems

Operational HSEC Procedures

• Guide to Business Conduct • Policy on Independence of Directors • Enterprise-Wide Risk Management Policy • Employment Principles

• Closure Standard • Investment Process Manual

& Standards • Crisis and Emergency

Management Systems

OTHER KEy POlICIES AND DOCuMENTS

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BuSIN

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• Fatal Risk Control Protocols • Carbon Pricing Protocol • Anti-trust Protocols • Records Disposal Manual• Fit for work/Fit for life• Incident Cause Analysis

Method (ICAM)

HSEC Forum

HSEC Networks


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auDIT aND SELF-aSSESSmENTCentral to the management Standards is a requirement for an auditing process to check that the BHP Billiton Charter, Sustainable Development Policy and Standards are being applied, and to verify performance.

all aluminium CSG sites have been audited since the implementation of the management Standards.

as in previous years, operating sites not audited during the year under review were required to undertake self-assessments against the Standards.

It was observed that the discrepancy between scores from self assessments and that from audits was negligible.

The results from these self-assessments have been combined with the audit results to give the average level and range of conformance for each Standard presented in the graph (below left). an overall conformance of 3.9 out of 5 was achieved against our target of full conformance (a score of greater than 4 out of 5) with the Standards by 30 June 2005.

HSEC management standardsStandard � Leadership and accountabilityStandard 2 Legal requirements, commitments and document controlStandard 3 Risk and change managementStandard 4 Planning, goals and targetsStandard 5 awareness, competence and behaviourStandard 6 Health and hygieneStandard 7 Communication, consultation and participationStandard 8 Business conduct, human rights and community developmentStandard 9 Design, construction and commissioningStandard �0 Operations and maintenanceStandard �� Suppliers, contractors and partnersStandard �2 StewardshipStandard �3 Incident reporting and investigationStandard �4 Crisis and emergency managementStandard �5 monitoring, audit and review

Fatal Risk Control ProtocolsBackgrounda key part of audit and self-assessment is the auditing of compliance to the BHP Billiton FRCPs. a Group-wide review of past fatalities and significant safety incidents identified a series of key potentially fatal risks to BHP Billiton employees and contractors – risks that required the development of sound practices to eliminate fatalities and incidents that could, in slightly different circumstances, cause fatalities.

The Fatal Risk Control Protocols, which were developed by workgroups comprising individuals from across BHP Billiton with extensive experience in operations, establish minimum performance expectations for managing these risk areas at leading practice levels. (The Protocols do not presume to cover all risk areas faced by our operations – including some which have caused multiple fatalities. These other risk areas are addressed through the risk management process that is a key element of the BHP Billiton HSEC management Standards.)

ApplicationThese Protocols apply at all BHP Billiton controlled sites and controlled activities, and to all BHP Billiton employees, contractors and visitors when involved in controlled activities.

Sustaining of FRCPafter the initial planning and implementation phases there is now a big drive towards the sustainability of, and adherence to, the FRCP.

The Protocols cover �0 risk areas, namely:

�) Light Vehicles2) Surface mobile Equipment3) underground mobile Equipment4) underground Control5) Hazardous materials management6) molten materials management7) Equipment Safeguarding

8) Isolation9) Working at Heights�0) Lifting Operations

Note that FRCP 3 & 4 do not apply to aluminium sites. FRCP 6 does not apply to mines and refineries.

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A booklet containing details of the Fatal Risk Control Protocols has been distributed to all employees and contractors.

Targets setThe Fatal Risk Control Protocols were published in april 2003 and a target for completion of all activities required for the first nine protocols was set for 30 June 2005. a second edition that introduced Protocol �0 was published in January 2005 and compliance was set for 30 June 2006. This limited time frame meant that the method used to implement the needed hardware, systems and training was critical for the successful completion and sustaining of the Protocol requirements.

Setting a good foundationImplementation of activities so diverse needed good planning, monitoring and allocation of the correct resources. For this reason most sites approached this as a project and used the project execution systems, structures and resources in place at each site to plan, implement and monitor the different activities.

Maximising synergiesThe aluminium sites identified the need to work closely together and formed a work group that met regularly to report back on progress and to discuss areas of constraint. The electronic media was used extensively to communicate and make available material related to the requirements of the Protocols. The appointment of global Fatal Risk Control Protocol facilitators for each protocol led to vastly improved communication and sharing of information across the different CSGs.

Challenges and opportunitiesThe requirements set out by the Protocol brought some unexpected challenges which were tackled as ‘opportunities’ to make BHP Billiton sites safer places to work in. In some cases manufacturers and suppliers have agreed to make modifications to their product in order to meet BHP Billiton’s safety requirements, as in the case of hand tools which needed to be fitted with a fail-safe device.

Inter site auditsDuring the roll out and implementation of the FRCPs at Hillside, mozal, Bayside, Worsley and most of the global FRCP auditors participated in ‘audits between sites’ (see graph on page �8). This was used as an opportunity to assist each other in identifying areas of concern, opportunities and challenges. In addition the audits served to build stronger bridges between the different teams at participating sites.

Some of the FRCP initiatives that were identified as best practice and subsequently implemented at the other sites, include:

Surface Mobile Vehicles

• Segregation between people and surface mobile vehicles (mozal)

• Fire blankets in vehicles to protect the driver should it be necessary to escape during a fire (Worsley).

case study

ImPLEmENTING THE FaTaL RISk CONTROL PROTOCOLS

Equipment Safeguarding• The designs of some of the guards (Hillside)

• Equipment access gates (mozal, Hillside and Bayside worked together on design).

• Inter-locking on bake furnace transfer and cleaning station access gates (Hillside).

Isolations

• Permits and key control system (Worsley, Hillside, Bayside and mozal worked together on design).

Working at Heights

• Rescue plans for all types of working at heights rescue (Hillside)

• Rescue equipment (Hillside).

• Working at heights checklist and permits (mozal and Hillside designed).

• Type and installer of anchor points (mozal, Hillside and Bayside worked together on design).

• The greatest success is the ‘BHP Billiton Safety Harness’ that went through more than 20 design changes before being accepted by Hillside, mozal and Bayside as the standard for safety harnesses. This harness was subsequently manufactured and tested by Spider Webb, a safety harness manufacturing company, and is now freely available on the world market.


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BmS management believed it was necessary to come up with an innovative method of communicating the Fatal Risk Control Protocols in order to address language and literacy challenges.

The FRCP team was tasked with the production of an illustrated summary of the FRCPs that would make the material easy to understand, and also easier to use for training purposes.

The team was able to capture 80% of the standards of more than 300 pages in just �2 pages. more importantly, it enabled 2 500 people to understand and implement FRCPs, thereby contributing to the BmS drive towards Zero Harm.

The following is an example of the FRCP summary for Light motor Vehicles.

BMS light vehicle Fatal Risk Control Protocol quick referenceThe intention of this procedure is to minimise and eliminate the risk of fatalities, accidents, incidents and damage that might occur during the use of Light Vehicles.

PurposeThis procedure will contribute to ensure a safe way to equip and use BmS Light Vehicles for all employees and contractors employed at BHP Billiton Suriname.

Definition of a Light Vehiclea Light Vehicle (LV) is a motor vehicle which:

· where registered, could be legally driven on a public roadway by a driver issued with a standard basic level (BE) public road driver’s license

· has three or more wheels· is two or four wheel driven· seats a maximum of �2 adults (including the driver)· does not exceed 4.5 tonnes gross vehicle mass (GVm).

Plant and equipment requirements· Complete guidelines for the equipping and use of LV has

been approved for use by the management team – ask your safety officer/manager for a copy when required.

· Vehicle types must be approved by the FRCP champion and each vehicle will be certified as being Site and/or PIT compliant. Site and pit compliant vehicles will be certified for that purpose and a compliance sticker license will be issued accordingly.

· all vehicle modifications must be done according to BmS change management procedures.

· Site and PIT boundaries will be demarcated and only vehicles approved for those areas will be allowed access.

Procedural requirements· all LV users are to fill out a pre-use inspection report

· The use of seatbelts in Light Vehicles is mandatory for all occupants.

· Light Vehicle running head lights must be left on whenever the vehicle is in operation (day and night).

· Vehicles must be maintained according to the formal maintenance program recommended by the manufacturer.

· a LV service sheet shall be completed at the completion of each service.

· a journey management procedure is to be used for long on duty trips.

· The use of mobile phones, whether hands free or not, by a driver of a light vehicle is prohibited while driving. mobile phones to be turned off at refuelling stations and near blasting operations/explosives.

· always be on the lookout for pedestrians and obey all signs. keep a safe distance between vehicles.

· Obey all rules and adhere to the approved traffic management plan.

· always reverse park or stop in a way that you can drive forward after stopping. Don’t park within 20m of a highwall. Remove keys whilst parked.

· Don’t overtake unless you have made positive radio contact with the vehicle you wish to pass.

· Transport of passengers in the cargo tray is prohibited and the picking up of hitch hikers is also not allowed.

People requirements· Drivers of BmS Light Vehicles must have a BmS license + DD

and a valid national or international BE license or equivalent when on site for a period of more than three months. For a period less than three months a national or international BE license or equivalent is required.

· all LV pit drivers must have a PIT license.

· all drivers are encouraged to attend Fit For Work/Fit For Life training and fatigue management training.

case studyINITIaTIVE TO SImPLIFY THE FRCPs aT BmS

This illustration indicates the minimum, pit, other and site specific requirements for Light Vehicles.

Buggy whip

Flashing light

Certified ROPs (4wd)

High vis. colour

Reflective striping, Company logo and ID# when on site


< 2� >

Key aspects of the Aluminium CSG HSEC performance for the reporting period 2005/06.

• We have sustained our Total Recordable Injury Frequency Rate with year end TRIFR being 4.�2.

• We continued roll out of the BHP Billiton Fatal Risk Control Protocols.

• Behaviour-based HSE programs were enhanced with a continued drive across all sites to report near miss incidents and take appropriate action to rectify, reduce risk and raise awareness.

• No significant environmental incidents occurred.• all managed sites maintained their ISO �400� certification. • The CSG continued the implementation of a leading practice

occupational health management program. • We continued implementation of the Fit for Work/Fit for Life

guideline program as part of our holistic approach to health and safety for all employees.

• Contractor management training at all sites has progressed well, with around 70% of employees trained so far.

• We have continued to operate and support community programs in all countries where we operate, with international recognition being attained for community health initiatives in mozambique and South africa.

Challenges and opportunities Looking ahead to 2007, our focus on the BHP Billiton Sustainability Challenges will include the following:

Fatal Risks Zero Harm is based on having appropriate programs and systems implemented, understood and adhered to by all. Continued implementation of the BHP Billiton Fatal Risk Control Protocols and behaviour based HSE programs for all employees will remain a high priority for leadership. application of these programs at all sites will be maintained through self-assessments and cross-asset audits, with continuous improvement the desired result of each audit.

Sustainable Community Development and Closure • We are continuing to focus on the control and reporting of

emissions to improve air quality around our operations and ensure transparency with our key stakeholders.

• In line with the Company’s Closure Standard, a review of closure plans for all sites is well advanced, with the bauxite mines in Suriname receiving significant management input. all plans will be finalised in the 2007 financial year.

• Programs to improve cross-cultural awareness have been identified as an opportunity to improve leadership effectiveness in the operations, and will be tracked for wider application in all operations.

• Our focus on human rights responsibilities and community development activities will expand to ensure that our programs are relevant to the communities in which we operate.

• Community projects will continue to focus on fostering positive partnerships with the communities and governments. Programs will be designed to impact overall HSEC needs as well as capacity building, but with an increased focus on the HIV/aIDS pandemic in southern africa and South america.

Access to and management of resources• access to available water resources is under increasing

pressure from population growth and an increasing prevalence of drought. The efficient and effective use of water is a priority, with a particular focus on recycling process water.

• High quality environmental studies associated with new developments/projects are designed to ensure minimum impact on natural resources.

Greenhouse Gas Emissions • aluminium smelting, being energy intensive, will ensure a

continuous focus on energy efficiency to curtail cost and minimise impact, and to achieve BHP Billiton Corporate HSEC targets.

Occupational and Community Health • We will focus on the continued application of the CSG

occupational health program for all employees, and additional reporting metrics will be employed to improve our understanding of health performance. The need to establish maintenance and assessment programs to ensure sustained monitoring of occupational health programs is key, as is skills development in occupational health.

• The impact of HIV/aIDS on the smelters as well as the communities in which we operate will continue to be a threat into the future. For this reason an ongoing program of aIDS education within the operations as well as in the communities remains a high priority. In addition skills training and succession planning is an important human resources management function.

• Health pandemics such as avian Flu now exist globally and steps to mitigate this impact are being taken, and will remain high on the agenda in the coming year.

The Gas Treatment Centre, Mozal.

SuSTaINaBILITY OVERVIEW


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The health and well-being of people is fundamental to the success of our business. Understanding the potential health risks inherent in our industry, establishing mitigation measures and implementing programs to encourage healthy lifestyles are key aspects of our journey towards Zero Harm.

FIT FOR WORK/FIT FOR LIFEThe Fit for Work/Fit for Life initiative is progressively being introduced Company-wide to assist our drive towards Zero Harm. The initiative seeks to promote a consistent approach to the management of health issues in the work environment and supports efforts to address lifestyle and community-related health issues.

During the past year, the BHP Billiton aluminium CSG has focused on implementation of drug and alcohol abuse programs, fatigue management, travel health and medical assessment programs. The challenge for the year ahead is to maintain the current programs while focusing on the implementation of rehabilitation and health promotion programs as well as development of plans for ergonomic analysis and employee assistance programs.

OCCuPaTIONaL HEaLTHThere are a number of health risks associated with the aluminium industry that must be controlled in order to ensure the health and safety of employees and contractors. To improve the identification and management of these risks in a comprehensive and systematic manner, an occupational health management strategy has been developed and is being implemented by the BHP Billiton aluminium CSG operations.

During the past year, significant progress was made in the following key focus areas.

• Development of protocols to align key health processes across the operations

Protocols have been developed for key processes including medical evaluation of fitness to work for mobile equipment operators, people working at heights, people working in areas where there is potential for exposure to respiratory hazards, respirator users and for the classification and reporting of hearing loss.

• Establishing exposure risk profiles for employees and contractors

all operations have completed qualitative exposure risk assessments and baseline sampling plans. The CSG exposure baseline for employees and contractors is now 80 per cent complete and will be finalised in all assets in the coming year. Specific attention was given to understanding the potential for exposure to pitch in the aluminium smelting assets. Exposure baselines have been completed for this exposure agent, and

exposure control plans are currently undergoing review to identify improvement opportunities.

• Implementation of risk-based periodic medical assessment programs for employees and contractors

Implementation of standard risk-based periodic medical protocols has progressed well. Implementation of risk-based periodic medical surveillance for employees is 94 per cent complete against plan for this year. mozal and BmS have successfully integrated contractors into this process. Other assets will review current contractor medical programs and incorporate them into their plan for FY07 to ensure program alignment.

• Implementation of gap closure plans to further enhance the work done in the area of respiratory health during the previous year

While maintaining focus on medical assessments and management of respiratory health issues, the smelting assets have focused on prevention initiatives. Improvements in respiratory protection programs, exposure prevention and education and training initiatives have resulted in reduced respiratory health impacts compared with previous years.

• Continued focus on hearing conservation programsNoise surveys of plant and equipment have been completed at all assets to identify and prioritise noise control opportunities. Personal noise exposure baselines are nearing completion. Investigation, classification and reporting of hearing loss has been standardised across the CSG and aligned with international standards.

Fit for Work/Fit for Life program at Worsley promotes a total health approach for all employees.

HEaLTH


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Occupational health: future challengesKey objectives for FY07:

• maintain focus on existing occupational health initiatives• exposure baseline maintenance programs• risk-based periodic medical assessment• implementation of pitch exposure control strategies• respiratory health management strategies

• Implement exposure control initiatives

• Implement Fit for Work/Fit for Life initiatives focusing on occupational rehabilitation and health promotion programs

• Focus on on-going program development and sustainability by strengthening occupational health networks, development of aluminium CSG health resources and regular assessment and review against international standards.

metrics to track the implementation of these initiatives have been developed. Progress against these objectives will be reported regularly by each operation.

COmmuNITY HEaLTHDuring the year we progressed our support of the medicines for malaria venture to develop new, affordable anti-malarial medication. malaria is a significant health issue in southern mozambique and northern Brazil where our operations are located. medicines for malaria was established through the World Health Organisation. We have continued our strong support for the malaria

eradication program in southern africa through our collaboration in an extensive spraying program (see case study on page 27).

HIV/AIDS interventionsHIV/aIDS is a significant threat to the working population in africa. For example the HIV infection rate in the KwaZulu-Natal region of South africa is estimated to be between 35-40 per cent of people of reproductive age. The infection rate at the Bayside and Hillside smelters is substantially less than the regional infection rate, and this is attributed to the effectiveness of the HIV/aIDS intervention programs.

The intervention strategy is aimed at employees specifically and the wider community in general, and comprises a number of pillars. These include awareness, prevention, treatment and measurement.

Both Hillside and Bayside have contracted an external service provider to monitor and implement appropriate treatment regimes at no cost to the employee.

BHP Billiton opted for a holistic health care approach and provides financial support to enable every employee to be a member of a private medical aid. all such medical aids are required to provide holistic treatment for HIV/aIDS, including provision of antiretrovirals and symptomatic treatment.

HIV/aIDS is less of a threat at BmS and Worsley, although both assets have information available at site health centres, and information is communicated regularly by means of posters, articles in newsletters, etc.

case study

a SImPLE SOLuTION TO a DuST aND NOISE PROBLEm, mOZaLSince the beginning of production at the mozal aluminium smelter in 2000, metal Ladle Lifting Beam (mLLB) testing was being carried out in the maintenance workshop, generating fluorinated dust and noise which was affecting the health and safety of people working there.

maintenance artisan Ramiro Roy lodged a request to the Engineering department to design a device to mitigate the impact of the testing process. This was unsuccessful and in June 2005 Roy suggested his own solution, a filter made from material recovered from waste. The project, dubbed ‘Roy’s filter’, was approved by mozal’s management team.

The following month the filter was fitted, tested and approved. The dust collector was put together by using an empty 210 litre drum, a 60 mm diameter pipe with fitting and one 1 500 mm length of 60 mm diameter flex hose (all collected from the scrap bin), one tube of silicone and one internal filter ordered from the warehouse.

The following benefits of the filter were noted:

• No dust generation• No dust mask required during test• Contribution to good housekeeping• Noise reduced during test• Low cost solution. The filter made from recycled materials reduces dust and noise.


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HIV/aIDS CamPaIGN aT BaYSIDE

a number of initiatives were implemented at Bayside during the past year to ensure a high level of awareness of HIV/aIDS among employees and contractors. The purpose was also to get as many of them as possible to know their status so that they could manage their health effectively.

a Knowledge, attitudes, and Practices (KaP) survey was undertaken in may to assess the level of awareness among employees and contractors. a KaP profile was built regarding HIV related issues such as sexually transmitted infections, sexual risk practices, disclosure of HIV status and the Lifeworks health program.

all Bayside employees and contractors were required to attend presentations on HIV/aIDS, and this was followed by a Voluntary, Confidential, Counselling and Testing Campaign. more than 75% of employees and 30% of contractors participated.

The campaign ensures that employees and contractors have an opportunity to know their HIV status and manage their lives accordingly.

Employees who tested positive were immediately registered on the Lifeworks program, which provides expert treatment and care, and contractors were referred to local community-based health organisations for further assistance. all information is kept confidential.

a similar program is being rolled out at Hillside.

Members of the management team ‘lead by example’ by undergoing an HIV test.

Initiatives implemented at Bayside: A banner (above) and poster (below).


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case study

TaCKLING HIV/aIDS IN SOuTHERN aFRICaThe communities neighbouring the Hillside, Bayside and mozal smelters – as well as employees and contractors working at the smelters – are at high risk as HIV/aIDS infection rates in southern africa are among the highest in the world.

The smelters have comprehensive programs in place to tackle the epidemic, targeted at both employees and contractors and neighbouring communities where employees and their families live.

Below is a brief summary of two community programs.

Total control of Epidemic (TCE), MozambiqueThe mozal Community Development Trust (mCDT) opted to fund the aDPP, a local NGO, to run the community component of mozal’s HIV/aIDS program, called Total Control of Epidemic (TCE).

The TCE program was designed to focus on communities by mobilising the people themselves, so that they could gain control of the situation and help each other to avoid the spread of this deadly disease in their communities.

The TCE program was initially introduced into the Boane and matola areas, where the mozal smelter is located. However due to the importance and impact of the program in the community, it was expanded in September 2001 to include the maputo area, in particular the Costa do Sol, Laulane, Polana Caniço and Ferroviário das mahotas villages.

Since inception, the following has been achieved:

• 200 000 community members have been educated and sensitised to HIV/aIDS through training workshops, industrial theatre performances, presentations, etc.

• 3 105 community leaders and influential people have been trained to continue the work of raising awareness within communities. This they do both formally and informally at various community gatherings

• establishment of Voluntary Counselling and Testing Centres

• establishment of HIV/aIDS support structures in the community e.g. home-based care givers

• establishment of information centres in schools, known as Corners of Hope.

a key factor in the success of the program is that it has been implemented as a ‘partnership’ with the community. many people within the community, including people in leadership positions, have received training and have become HIV/aIDS ‘activists’ thereby communicating factual information about the virus deeper into communities.

Ethembeni Care Centre, Richards BayThe Ethembeni Care Centre in Richards Bay, South africa, was founded in 1966 by occupational health nurses from BHP Billiton and five other major companies operating in the region. It began in an abandoned farmhouse, initially catering for only six patients. The original intention was for the centre to address

Field officers get ready to spread HIV/AIDS awareness.

A field officer chats to community members about HIV/AIDS.

Community leaders trained by the TCE receive HIV/AIDS awareness material to be used in the community.


< 26 >

Healthcare professionals provide a wide range of services and community programs at Ethembeni Care Centre.

HIV/aIDS-related problems that the occupational health clinics were experiencing.

In 2002, Ethembeni Care Centre relocated to amangwe Village, a community support complex set up near Richards Bay. In December the following year, the centre opened a new 18-bed facility under the auspices of the Zululand Chamber of Business Foundation. as well as caring for HIV/aIDS patients, the new centre included facilities for orphans and vulnerable children and began providing community outreach, education and training programs.

Ethembeni Care Centre was established primarily for use by the employees of local companies. The original business model was based on the assumption that the centre would be self-sustainable through the fees charged to the companies for patient services. Over time, this assumption proved incorrect; news of Ethembeni’s facilities and services spread by word of mouth and the clinic began to admit patients from the wider community. Subsequently, Bayside and Hillside aluminium took on the role of covering the costs of patients who could not afford the fees, as well as being the main funder for infrastructure works.

In mid-2005 the issue of sustainability was addressed by registering the Centre as a Section 21 not-for-profit company. It entered into a Service Level agreement with the Department of Health to provide operational sustainability for the centre.

Ethembeni currently comprises a 45-bed ward for adults and an 18-bed paediatric centre, and provides a range of other services and community programs. a recent upgrade of the sewerage infrastructure has increased capacity to a 200-bed facility, providing significant scope for future development.

Services offered by the Centre include:

• in-patient care for adults and children

• outpatient services

• voluntary counselling and testing

• antiretroviral drug treatment administration

• tuberculosis and other infectious diseases management

• pharmacy services

• HIV/aIDS counselling • social security assistance (applications for grants)• antiretroviral drugs education program (e.g., drug literacy,

drug adherence and nutrition literacy)• a ‘buddy’ system (replacing the traditional home-based

carer system).

Ethembeni has also entered into a memorandum of agreement with Ngwelezane Hospital in northern KwaZulu-Natal, which provides access to other services including ambulance, social worker, physiotherapy, psychology, medical and mortuary services.


< 27 >

case study

BuSINESS JOINS aFRICaN EFFORT TO CuT maLaRIa

Extracts from an article by Sharon LaFraniere, published in the New York Times, June 29, 2006

Beluluane, mozambique — With malaria spread across southern mozambique, executives at the international mining company Billiton expected some workers to call in sick as it began building a massive new aluminum smelter amid the cornfields here.

What they did not expect was that nearly one in three employees would fall ill — 6,600 cases in just two years. and they certainly did not expect 13 deaths, not after the company had built a medical clinic, doused the construction site with pesticides and handed out bed nets to thwart malaria-carrying mosquitoes.

"You can imagine, it was a huge disaster," said Carlos mesquita, the general manager. "We could not deal with that level of absenteeism, and we would have had more fatalities. If we didn't treat malaria we could not operate."

But confining measures to the plant, executives realised, would not protect their 1 100 employees, or their $1.3 billion investment, so long as malaria raged all around it, including in the capital, maputo, just 10 miles up the highway.

and so one of the world's biggest aluminum producers joined in an exceptional partnership with the governments of three countries and with other businesses to take on malaria systematically across a broad region. Six years later, the scorecard is in. amazingly, malaria is losing. Wielding a combination of new medicines, better bed nets, old-fashioned pesticides and computer analysis to clean up the most afflicted areas, the smelter and its partners in business and government have turned malaria in one of its former hot spots into a manageable threat.

Photo courtesy of Joao Silva/The New York Times/ReduxIn Patrice Lumumba, on the outskirts of Maputo, a municipal worker sprays a house with insecticide.

The results are a rare bright spot in fighting a parasitic killer that has thrived in the face of flawed, inadequate programs by african nations and international organisations.

Last year a united Nations task force singled out the joint effort, which today covers an area the size of Kentucky, as a model for a continent that still has nearly a million malaria deaths a year. The focused effort in southern mozambique, experts say, may point the way toward a broader and more effective strategy.

Southern mozambique's success, health specialists say, is rooted in two facts: a realisation that malaria can be defeated only if campaigns are taken on regionwide, and a commitment by business and government to put up money and wage war until the disease reaches a tipping point of retreat.

"This is the first time in mozambique we have used the private sector," said the country's deputy health minister, avertino Barreto. "The results have been terribly good."

absences at the plant, once affecting nearly a fifth of the work force, are down to 1 per cent. The plant has expanded and doubled its production in the last three years. Even attendance at the nearby primary school is up, officials say.

"We are not suffering from this disease any more here," said mr. mesquita, a boyish-looking metallurgical engineer of 47 who greets visitors in a worker's gray jumpsuit.

malaria is estimated to shave up to 1.3 percent off africa's growth annually, a cost of roughly $12 billion a year. Health officials here say it remains mozambique's leading cause of absenteeism and death, even with the advance of aIDS.


< 28 >

Hardly a family, farmer, small business or major investor is immune to malaria's impact. Some companies, like in the sugar cane and tobacco industries, have noted the smelter's success and are now eager to imitate it, if for no other reason than it makes rational economic sense.

Health surveys in the targeted areas in Swaziland and South africa show that the incidence of malaria plummeted to fewer than five cases per 1 000 people last year, from as many as 66 cases per 1 000 in 1999.

In southern mozambique, surveys show similarly huge drops. Nearly nine in ten children who lived near the smelter were infected in 1999. By last June, that had fallen to about two in ten, according to the South african medical Research Council.

The malaria control effort now covers an area that is home to four million people and is expanding with the help of $21 million in grants from the Global Fund to Fight aIDS, malaria and Tuberculosis. Still, it reaches only a fraction of mozambique's population, and health experts say a much greater effort is necessary.

For executives in charge of the aluminum smelter, it was obvious that the disease was far too prevalent to fight alone. andre van der Bergh, regional health and safety adviser for BHP Billiton, the corporation formed when British-based Billiton merged with australian-based BHP in 2001, estimates that malaria control issues ate up a third or more of his time until the project got off the ground.

"You cannot operate as an island," he said. "I certainly learned the value of partnerships."

The government was eager to cooperate. The smelter, known as mozal — short for mozambique aluminum — was an important symbol that mozambique, after a devastating 17-year civil war, was open for business to foreign investors.

across the border, South african officials were worried that malaria was scaring away tourists. South africa and Swaziland agreed to join mozambique in 1999 to fight malaria in the region.

Seventy per cent of financing for the first three years came from a coalition of 145 South african businesses, which contributed $2.6 million, and BHP Billiton, which kicked in $1.2 million.

Clinics throughout southern mozambique were supplied with more powerful medicines. The smelter alone distributed 6 141 bed nets — the newest of which repel mosquitoes for five years. and house-to-house indoor spraying of insecticides was begun, including the targeted use of DDT, which remains controversial.

Fears that uncontrolled outdoor spraying of DDT would contaminate ecosystems led many nations, including the united States, to ban the pesticide.

Dr. Barreto of the Health ministry argues that mozambique should stick to more expensive pesticides that are less risky for the environment. But his superiors were swayed by the World Health Organisation's approval of DDT's limited use for malaria control and by South africa's resumption of its use in 2000 after a four-year break, during which malaria resurged.

Dr. Barreto said the government now planned to apply the indoor spraying of pesticides throughout the country. One day recently, a team of four sprayers hiked down the dirt paths of a neighborhood in Patrice Lumumba, a settlement on the outskirts of maputo. at nearly every house, residents had a tale of malaria.

Jacinto maela, 38, a laboratory analyst, hauled buckets of corn and water into his dirt yard. "This is very welcome," he said, "because we suffer a lot from malaria. I have had it three times. The last time, I was off work for three weeks."

Tvete Dimande, medical chief of maputo's health department, said the campaign's impact was obvious at the clinics: "Previously the hospitals were filled with malaria cases. People were lying everywhere. Now that number is being reduced. They should have done this a long time ago."

“Congratulations to you and your teams on the success of the program, the strong effort to continue this important work and sharing our lessons. While we manage for outcomes, not awards, recognition like this helps to carry the message of what is possible when governments, communities and businesses work together.” BHP Billiton CEO, Chip Goodyear.


< 29 >

SaFETY

Behavioural safety initiativesThe behavioural safety process adopted at aluminium CSG sites focuses on safe behaviour through hazard and at-risk behaviour reporting. This takes place through peer and leadership observations.

a ‘NO NamE NO BLamE’ approach to peer observations encourages employees to look out for their colleagues, thus positively reinforcing safe behaviour. These initiatives, follow-up corrective action and job safety observations ensure that a high level of safety awareness among employees is maintained. all employees and contractors are encouraged to be part of the process. The overriding objective of the behavioural processes is a reduction in the number and severity of injuries, and good results have been achieved at some sites already.

Contractor managementmanaging contractors and their activities more effectively across the various sites has been identified as a significant opportunity to improve safety. The objective is to ensure that standards and procedures adopted by contractors are consistent with the BHP Billiton standards, and to ensure that site-based policies and procedures are well understood. To this end an ongoing initiative is in place to improve the contractor management skills of all supervisory management through training. This has resulted in improved contractor safety performance.

The safety of our employees, contractors and the communities in which we operate is an integral part of our business. Our aspirational goal is Zero Harm. To this end we are seeking to create a mindset and an environment where people believe that it is possible to work injury-free – regardless of where they are in the world, what role they undertake or in which business they work.

all the operations comply with the stringent requirements of the BHP Billiton standards and protocols with regard to safety reporting and occupational health issues. These include regular Health, Safety and Environment (HSE) meetings with representatives from all levels of the workforce taking part. The outcomes of these meetings cascade upwards through management HSE reports and ensure follow-up and good governance.

SaFETY PERFORmaNCEThe aluminium CSG has sustained its Total Recordable Injury Frequency Rate with a TRIFR of 4.12 for FY'06. Through the year under review we continued to roll out the BHP Billiton Fatal Risk Control Protocols, with compliance monitored through regular self-assessment as well as inter-company audits (see page 18). In addition behaviour-based HSE programs were enhanced with a sustained drive across all sites to report near miss incidents and take appropriate action to rectify, reduce risk and raise awareness.

Reporting and investigating near missesan important mechanism for raising safety awareness within the Company is the reporting and investigation of near miss incidents. These are incidents which did not result in injury, but which nevertheless occurred as a result of at-risk behaviour and had the potential to cause injury. Our objective in investigating these near miss incidents is to identify the root causes and put systems in place to prevent them from occurring again. Of note is the fact that aluminium CSG sites are reporting monitored near miss incidents. monitored incidents refer to activities over which BHP Billiton has a measure of influence, but which are not subject to Company HSEC standards, and which cannot be supervised or enforced.

An employee wearing full PPE in a Bayside potline.

CIFR 12 month rolling average


2003

2004

2005

Jul 0

5

Aug

05

Sep

05

Y220

02

Oct

05

Nov

05

Dec

05

Jan

06Fe

b 06

Mar

06

Apr

06

May

06

Jun

06

0

1

2

3

4

5

6

7

Total aluminium Target

TRIFR 12 month rolling average


Jul 0

5A

ug 0

5

Sep

05

Y220

03

Oct

05

Nov

05

Dec

05

Jan

06Fe

b 06

Mar

06

Apr

06

May

06

Jun

060

2

4

6

12

Total aluminium Target

8

10

Y220

04

Y220

05

TRIFR is total recordable injury frequency rate CIFR is classified injury frequency rate


< 30 >

Contractors busy at Bayside.

Improving contractor management and safety at BaysideOver the past year, Bayside has undertaken major reviews of contractor performance and controls, and the manner in which contractors are managed. This review has resulted in a greater focus on contractor safety at Bayside.

Previously contractor performance was measured using basic criteria such as safety observations performed and near misses reported. However greater participation from contractor teams working on site was required in order to increase safety awareness.

Contractor performance systems were customised to enable the contractor management team to focus on each contractor individually. The result was a more focused approach to their site safety, which is reflected in the improved safety performances over the past twelve months.

Contractor management has focused on the following aspects:

• Permits

• Each contractor has been informed of their safety performance in terms of TRIFR, CIFR and FaFR in 12-month and three-month rolling averages. This is done on an individual and group basis

• Site inspections are performed daily by contractors' supervision

• Team input into risk assessments and the Job Safety analysis (JSa) process

• Contractors have to update their monthly risk assessments, and Bayside has started tracking this via a data base. JSas are tracked in the same manner

• Contractor management has also tested the new JSa system to go hand in hand with the permit and risk assessments being done. This was based on the Contractor Safety

Contractors Overall Categories June 05 June 06

TRIFR 7.03 4.89

CIFR 2.46 2.28

case study

CONTRaCTOR SaFETY INITIaTIVES aT BaYSIDE, mOZaL & WORSLEY

management Initiative rolled out at Bayside and Hillside

• FRCP requirements have to be strictly adhered to.

The contractor management team holds monthly meetings with contractors to discuss and highlight changing or additional contractor requirements, trends and problems emerging in the plant. Examples include condition of tools being used on site and vehicle inspections. Bayside has also started sharing free learnings from other BHP Billiton sites.

Future ImprovementsBayside will be introducing aLuTRaC, a new site access control system. This will allow Bayside to define contractors in terms of


< 31 >

four categories (a, B, C and D), and to identify where in the plant they are working. The access badges that will be issued will have the contractor’s skills, inductions and licenses displayed, enabling Bayside to check if the correct person is performing the job.

Tighter controls around inductions, license renewals, number of vehicles allowed on site and refresher training for company employees will be built into the system.

Contractor management at MozalContractor safety management is seen as an essential component of mozal’s overall health, safety and environment strategy. a strategic framework has been designed to ensure that mozal’s expectations and aspirations for contractors’ HSE performance are clearly identified and that all contractors are aware of their contribution to the overall HSE performance.

The strategic framework is divided into two risk profiles (Risk Profiling and Risk management) and has five basic components: pre-qualification, tender and award selection, access and activation, execution and control, and performance management.

Each of the components in turn is broken down into specific objectives, the method of achieving the objectives, and the measures to establish if the objectives are attained. The risk profiles ensure a single point of accountability, safe work execution and stable industrial relations climate, promote a reduction in vendor turnover and improved vendor selection. The entire framework underpins the development of long-term relationships and facilitates the sharing of learnings and completion of projects.

Achievements of the strategic framework

Contractor foruma contractor forum has been established to officially represent contractor companies in formal communications with mozal. It is responsible for ensuring that members’ issues are raised and addressed in a timely fashion through a collective process. Topics range from contractual issues to HSEC matters.

Uniform contractor medicals Prior to working at the mozal plant, each prospective contractor employee is required to undergo a pre-employment medical examination to ascertain their fitness for work. To ensure a uniform approach, the decision as to whether a person is fit or unfit is made by the on-site medical practitioner.

Mentoringa mentoring and coaching program for all contractor employees in leadership roles has been established.

all contractor employees are also integrated into the mozal training systems. This has raised their awareness of employee responsibilities and helped motivate interest and pride in their day-to-day activities.

also, contractor recognition programs are held annually.

Lagging indicator – measuring successThe positive impact of the strategic framework is reflected in the lagging indicator Total Recordable Injury Frequency Rate (TRIFR) for contractors. at 30 april 2006, the TRIFR (12-month moving average) had shown a 27 per cent improvement. This in itself has contributed to the improvement in mozal’s overall safety performance.

Future initiatives and challengesNew Employee Development programThe strategic framework provides guidelines for a mandatory new-hire identification program which is designed to help new employees to avoid incidents and injuries and to enhance their acclimatisation to mozal’s HSEC culture.

Contractor safety award, Mozal.

Mentoring and coaching program for contractors.


< 32 >

Workplace injury trends indicate that approximately 40 per cent of injuries occur to new-hire employees with less than three months on the job. Early identification and correction of unsafe work habits will help to promote a safe and healthy workplace. an experienced HSE coordinator or owner/sponsor will be allocated to each newly hired and newly assigned field personnel to act as a mentor for 30 days. mentor training will be available to promote ownership and accountability of this key initiative.

Contractor sponsor appraisalsmozal aims to implement sponsor appraisals, where the sponsor must stipulate the current status of their safety performance and future challenges. This initiative is to take place on a six-monthly basis and will highlight best practices and ensure learnings are shared across the Company and its contractors.

Contractor management project at Worsleya contract management project at Worsley alumina has helped improve the safety performance of contractors on site.

The development of a special competency-based course has seen a reduction in the Total Recordable Injury Frequency Rate (TRIFR) from 11 to 5, which means more productive work time and less time spent on investigations and reporting.

a project team was set up in October 2004 with the brief to develop a competency-based course, deliver the course, assess its impact and share the results with BHP Billiton operations.

The project was initiated because different areas of the operation were not aligned in their safety procedures. as a result, there were several different standards across the site.

Statistics over the 12 months period prior to the project had shown that, despite a number of initiatives, the safety performance was not improving.

The situation was aggravated by the presence of a large number of extra personnel on site due to construction activities.

Worsley uses more than 200 contract companies – ranging from large scale, planned, routine work to breakdown, emergency and one-off tasks. This made it difficult to develop a single set of rules as well as a course that would suit all needs.

an information search within Worsley alumina and across the greater BHP Billiton organisation found that there was a lack of information in this area.

In order to develop a course outline that would fill this need, the project team:

• reviewed BHP Billiton Corporate Contractor Safety Course materials

• reviewed site procedures

• defined HSE management competency requirements for key contract management positions

• developed a competency-based training course, and

• developed systems and procedures needed to support the course.

a number of workshops were held on site and supporting documents developed. a behaviour-based safety questionnaire was completed by all participants.

a pilot course was tested in December 2004 – and following modifications – an updated course was rolled out in march 2005.

The effort is supported by performance measures which assess the participant’s competency at the time of the course, and again three months later.

mentors are available in the workplace to help improve competency.

a series of videos were produced and filmed on site to support the course content and to give the course a local flavour. These videos were shared with other assets and incorporated into the corporate course.

The Principles of Corporate Contractor Safety has now been delivered to 200 contractors on site. Key contract management positions have been identified and 29 contract coordinators have been audited to assess their competency.

The competency of Worsley employees directly supervising contractors has also been assessed.

The details of the Contract management Project have now been provided to other BHP Billiton assets. a modified course and guidelines have been developed which can be applied to different sites.

The Contractor HSEC management document:

• provides a framework for sites to create their own course

• helps sites to identify gaps in their contractor management systems

• provides templates for use for some elements of a contractor management system

• provides a framework/template to enable training to be competency based

• encourages sites to take responsibility and action for implementation of the 41 point checklist and HSEC management Standards, and

• provides references to resources to assist sites along the journey.

The competency element for key positions ensures the project is sustainable.


< 33 >

case study

mOZaL'S JOuRNEY TO ZERO HaRm a tragic accident occurred at mozal in June 2005 in which an employee was killed when he was struck by a mobile crane. Following an investigation into the incident utilising the BHP Billiton Incident Cause and analysis methodology (ICam), the recommendations of the investigating team were carefully analysed by mozal’s senior management team to determine the conditions and behaviours that the recommendations were addressing, and to determine the root causes e.g. language barriers and local cultural characteristics.

a list of actions was compiled for each recommendation and a senior manager was allocated responsibility for each action. a full-time Operating Excellence project leader was deployed to oversee the completion of the project and the coordination of the various activities. Regular review meetings have been held to track actual progress against target and to refine the action list, thereby ensuring the completion of actions by the due date.

The project has a four-pronged approach: awareness, empowerment, discipline and visible leadership.

Awareness: an intensive drive was implemented to educate employees and contractors through safety-related training modules, including risk assessment and fatigue management modules based on the Company’s Fatal Risk Control Protocols.

Empowerment: Employees and contractors have been empowered to stop any work that they consider to be unsafe until the risks have been eliminated. This has been done through the introduction of a system of ‘red cards’ that are signed by the General manager. These can be used by any employee or contractor to stop an unsafe job or act. The system has been successful several times in stopping unsafe jobs and behaviours, thereby avoiding safety incidents, and has become institutionalised.

Discipline: a set of five basic rules has been implemented that are non-negotiable. Breaking any of these rules is considered to be a dismissible offence. Further to this, more discipline and rigour has been put into incident investigation and reporting. Learnings are shared within the organisation and with contractors.

Visible Leadership: there has been greater focus on leadership visibility, for example:

• a two-hour period has been defined during which all team leaders must be on the shopfloor. This gives the leaders an opportunity to assess any unsafe behaviour and conditions that exist in the plant.

• middle and senior management visit the plant after hours (weekends and between 10.00 pm and 6.00 am) to establish safety behaviour and ensure an understanding of operational conditions.

• One-to-one delivery of HSEC communications by leadership enables team leaders to address employees and contractors

Pedestrian walkway constructed as a safety measure.

on a personal level. To date, three such rounds of communications have been undertaken, covering a range of topics from the red card system to HIV management.

Challenges addressedThe primary challenge in the setting of systems and rules has been to take into account the generally reticent nature of the local people. This was identified as a key contributor to the fatality. The crane operator had recognised that poor visibility constituted a risk, but as he had been instructed to complete a task he continued to drive the vehicle.

Introduction of the red card system was a key strategy in addressing this challenge. use of the red card has been widely encouraged and promoted in the plant media, to the point where all employees and contractors on site are aware of the function of the cards and carry them at all times.


< 34 >

Effectiveness of the projectThe roll-out of the project has resulted in the following:

• the implementation of pedestrian/vehicle separation measures

• an improvement in incident reporting and the quality of the investigations

• greater integration of the contractors into the mozal HSEC systems

• a marked increase in HSEC leadership visibility

• a significant decrease in the Total Recordable Injury Frequency Rate (TRIFR) 3-month moving average, from 5.13 to zero by December 2005 (see graph on previous page).

In summary, the project has increased the focus on safety at mozal and has encouraged behavioural change that is improving safety performance.

Barriers in mobile equipment workshop have been installed for safer pedestrian movement.

case study

PaRTNERS IN SaFETY: BaYSIDE REDuCTION B & CBayside Reduction B and C Potrooms introduced an initiative in conjunction with contractors (our Partners in Safety) in order to improve safety performance.

The project began with a half-day meeting at which contractors were asked to identify any shortcomings that needed to be addressed e.g. performing risk assessments on the current working instructions and the re-training of relevant staff with regards to the working instructions. Contracting company owners were present at the meeting.

Every Tuesday a structured meeting takes place at which the current week’s safety performance is discussed. The previous week’s behavioural safety observations, near miss reports and the current month’s work stoppages – for both Bayside teams and contractors – are displayed and discussed. The previous week’s minutes are then used to determine which action items are outstanding.

at the conclusion of the meeting, line management does a one-hour walk-about on the shop floor. mentoring and coaching of our Partners in Safety is done during this time. In addition leadership team members conduct scheduled walkabouts twice a week after hours.

The department manager holds individual meetings every six months with contracting company owners and the site manager/supervisor. audits are also done at the contractors’ premises.

Every leadership member and contractor company conducts one work stoppage per month; in addition a combined six-monthly work stoppage is held and led by the manager. During these stoppages all risk assessments and SOPs are reviewed and changed where necessary. The new and old SOPs as well as risk assessments are discussed with the relevant teams.

Achievements to date:• reduction B and C have improved their safety performance,

and have worked one year without a classified injury for the first time

• current CIFR is 0 and TRIFR is 0.82. The aim is to achieve a TRIFR of 0 by September 2006

• correct implementation and usage of safety systems by all

• getting commitment to the safety effort by both employees and contractors, and involving the contractor company owners in the safety initiative

• improved management visibility on the shop floor

• diligent reporting of potential level 4 incidents and timeous actioning.

C & D Category Performance June 05 June 06 Percentage

FaFR 27.78 18.30 66% reduction

CIFR 3.09 2.51 81% reduction

TRIFR 6.17 3.95 64% reduction

C & D Category Contractors

0

5

10

15

20

25

30

35

TRIFR 3 months

FAFR 12 MMATRIFR 12 monthsFirst aidTotal record, injuries

FAFR 3 months

CIFR 12 months CIFR 3 months


< 35 >

case study

REDuCING ROaD TRaNSPORT RISKS aT mOZaL The mozal aluminium operation is located approximately 17 kilometres west of maputo, the capital of mozambique. mozal’s raw materials and finished products are transported on public roads through densely populated suburban areas. unsafe driving habits and low levels of traffic law enforcement contribute to a generally poor safety culture within the community.

Road safety initiativesOur transport vehicles travel between the smelter and harbour terminal on a 24-hour basis. Drivers contend with numerous risks, many of which are beyond their direct control and include pedestrians, animals, high traffic densities, poorly maintained road infrastructure and the unsafe driving habits of many road users.

The vehicle fleet consists of 17 truck haulers and trailers that together complete an average of 148 000 kilometres per month. Despite the significant road transport risks, the fleet completed over 800 000 incident-free kilometres in the six-month period from 1 September 2005 to 28 February 2006. In addition, zero incidents were recorded over the extremely high-risk festive season in December 2005; an outstanding performance when compared to the last week of 2004, when two raw materials vehicles overturned.

This achievement is the result of numerous road safety initiatives and programs implemented under the Company’s guidance.

Strategic partnership with specialist supplier In February 2005, mozal terminated a raw materials transport agreement due to unacceptable safety performance by the supplier, and entered into a long-term agreement with a specialist logistics company, Strang Rennies mozambique Consortium (SRmC), which has an excellent record of safety performance and is an ISO 9001 and OHSaS 18 000 accredited company.

andrew Strang, Director of SRmC, comments that the success of this venture with mozal is largely due to the mutual co-operation between both companies to achieve the common strategic objective of Zero Harm.

Driver fatigue management Driver fatigue was identified as the root cause of a number of prior incidents involving the mozal fleet. In cooperation with SRmC, a fatigue management system was implemented that includes:

• minimising transport operations during high-risk times (raw materials transport is stopped daily between 3.00 am and 6.00 am)

• in-depth driver training and awareness programs on methods to minimise and combat fatigue

• visual fatigue systems for supervisors to control driving hours• start-of-shift fatigue checklists • analysis of driver sleeping patterns and ‘at risk’ behaviours

(individuals who exhibit high-risk behavioural patterns are counselled and advised on corrective measures).

Zero alchohol and drug tolerance all drivers are required to report their drug and alchohol status prior to the start of each shift. alchohol testing (breathalyser tests) at the beginning of each shift is mandatory.

Increased vehicle payloads In December 2005, mozal purchased six alumina trailers with a capacity of 36-tonne legal payloads. Commissioning of the new trailer fleet has reduced the required number of daily trips by 10 per cent and has enabled a further reduction in the time spent by fleet vehicles on public roads.

Random speed checksRandom speed tests are conducted in various speed zones, both inside mozal premises and on public roads, to ensure drivers comply with speed regulations. In addition, truck haulers have been fitted with speed governors to ensure that the vehicles cannot exceed a speed of 60 kilometres per hour.

Noise reduction During the environmental impact assessment for the mozal project, vehicle noise levels were identified as being potentially disturbing to the community. as a consequence, all truck haulers have been fitted with silencers, limiting the engine noise to less than 85 decibels. additional noise reducing measures have been implemented by disabling vehicle exhaust brakes and erecting sound absorbing walls at specific high-noise zones.

Behavioural safety observations Both SRmC and mozal employees perform frequent behavioural and job safety observations. Rostered shifts that are considered high risk, such as weekend night shifts and ‘red flag’ nightshifts after pay days, are specifically targeted for in-depth behavioural safety audits by SRmC management.

OutcomesThe road safety initiatives implemented in partnership with SRmC continue to deliver excellent results. Further initiatives that are under development or investigation include automated vehicle management and a tyre management system.

36-tonne interlink alumina trailer.


< 36 >

case study

BmS SaFETY INITIaTIVE FOCuSES ON FaTIGuE Fatigue, especially among operators in the BmS mining operations, has been identified as a safety risk, and an initiative has been launched to address the issue.

Contractor mobile equipment operators were involved in discussions around issues relating to fatigue. The labour union was invited to participate to ensure their support and buy-in.

after a thorough review of the existing BmS fatigue management procedure, a personal fatigue management checklist was adopted. a new wave of training was provided in fatigue management. These sessions were presented primarily in the local indigenous language, Sranan Tongo, to ensure effective communication.

BmS Coermotibo took the lead by establishing a formal monthly fatigue management team meeting tasked with formulating an action plan to improve fatigue management. Training sessions were conducted in which the effects of stress, alcohol and drugs (including prescription drugs) were addressed.

Regular rest periods for operators during shift time were made mandatory. a specially designed air-conditioned rest room furnished with simple, light-weight beds was installed in the Spanhoek area of BmS Coermotibo mine. a mandatory 90-minute break was established from 3 am to 4:30 am, during which time operators could take a revitalizing nap. Work is resumed only after guided physical exercise.

The personal checklist was found to be a useful tool, and a Stop Fatigue card was produced, with a strong slogan in Sranan Tongo.

The new approach has had an unintended benefit in that communication between operators has improved due to increased interaction before and after rest periods.

as part of the review process, some additional issues that have an impact on fatigue were identified, and need to be addressed, eg condition of equipment, salary review (some people have second jobs), and haul road design.

Operators during their nap.

We only take the steering wheel again after practicing physical exercise together.


< 37 >

• create a Hand Safety awareness training package, and

• distribute posters and pocket cards to identify the correct gloves to be worn for specific hazards.

The Hand Protection Policy came into effect in December 2005. The Hand Safety awareness training roll-out began in November 2005 and now forms part of the Core module units for Worsley employees.

already behavioural improvements have been observed with more people wearing/carrying gloves, and a general heightened awareness of hand safety across site. The heightened awareness has also encouraged employees to report all minor hand and finger injuries, and this is helping in ongoing analysis for further improvement.

Key success factors for this project related to the ‘a’ side of the methodology – gaining employees’ acceptance. This was achieved via a number of methods:

• Weekly newsletters

• Safe Hands video

• Helmet and door stickers

• Stencils on known high risk hand and finger injury sites, and

• Promotion of continuous improvement ideas.

Learnings from this project have been widely shared across BHP Billiton. Presentations have been given at the australian Six Sigma Conference and the Iron Ore Coaches Conference. many people from other sites have requested information from the project and this information has been shared willingly.

an intensive review of injury data at the Worsley alumina refinery revealed a high rate of injuries to fingers and hands.

In response, a Safe Hands Project team was established to look at ways to reduce and eliminate the causes of these types of injuries.

Six Sigma yellow-belt teams were set up to examine closely the issues in the refinery process areas, the Power House, Raw materials and the Overland Bauxite Conveyor.

Each team consisted of maintenance, operations and contractor representatives. The yellow belts heading up each of these teams formed the make-up of the black belt team, a structure used for the first time at Worsley.

Each step of the process was conducted via black belt team meetings and duplicated in each of the yellow belt team meetings. This ensured that the greatest involvement and coverage of personnel on site was achieved. Some 40 people were involved in all of the teams across site.

The initial data collected did not lend itself to anything conclusive. Instead the team moved on to identify root causes using standard Root Cause analysis (RCa) techniques. Part of this meeting was spent identifying possible quick wins to keep up the momentum of the project.

There was significant input across the refinery. The project team gained a wide range of suggestions and ideas from all levels of the organisation which were absorbed into the approach to hand and finger safety.

The focus of the project was also helped by analysing the surveys and trials conducted, and then slicing and dicing this information in the data gathering phase and progressing with the results.

The outcome of all the RCa sessions was a list of 93 root causes. The Black Belt Team came together to look at the root causes and discuss how they were raised in the separate forums. This led to a large multi-voting exercise to narrow the list down to the top 10 root causes.

Surveys of the workforce were conducted to validate the root causes.

From this information, a range of solutions were proposed:

• new style and size range of gloves

• improve the incident reporting system

• improve communication of key learnings from injuries

• create a Hand Protection Policy for Worsley – mandatory to carry gloves at all times

case study

SaFE HaNDS PROJECT aT WORSLEY


< 38 >

ENvIRONmENT

While all sites are currently in the process of reviewing their closure plans, those for BmS have already been updated in accordance with the BHP Billiton Closure Standard.

BmS established a special team to perform this task to ensure the appropriate mix of knowledge, skills and experience. This included representatives from the HSE department, people with a Planning, Operational and Project management background, and independent consultants. Extensive stakeholder consultation was held at local and national level during the planning process, and risk workshops were held to establish risk-based cost estimates for closure plans.

The BmS Lelydorp III mines are expected to close in 2007 and review of closure plans will be stepped up to twice a year so that the latest information derived from on-going research and data collection can be taken into account.

While closing one operational area after 65 years of mining by BmS and 90 years by Suralco (alcoa), the BmS/Suralco Joint venture is opening new mines on the eastern side of the Suriname River. This makes it possible to address Human Relations and other organisational issues in advance of closure.

although mining operations in Coermotibo in East Suriname are scheduled to continue until 2011, closure-related activities – such as revegation of mined out areas – are occurring simultaneously.

Hillside Aluminium, Richards Bay.

The Aluminium CSG’s objectives for environmental management are outlined in the BHP Billiton Sustainable Development Policy, which states that we will:

• strive to achieve leading industry practice• meet or, where less stringent than our standards, exceed

applicable legal and other requirements• set and achieve targets that include promoting the efficient

use of resources and reducing and preventing pollution• enhance biodiversity protection and assess and consider

ecological values and land use aspects in our decisions.

LaNDThe total footprint of the aluminium CSG’s operational sites is around 586 000 ha of which 99.9 per cent is used for mining and refining purposes. The mining sites have land management plans in place to guide decisions on land use. a broad range of issues are addressed in these plans including ecosystem and biodiversity management.

In addition the sites are actively seeking the best options for rehabilitation and determining post-closure land use, consistent with agreed closure criteria.

a total of 190 ha of mined land was rehabilitated in the year under review: 112 ha at Worsley and 78 ha at BmS.

Closure planninga Company-wide Closure Standard applies to all BHP Billiton controlled operations. The Closure Standard requires compliance with relevant legislative and regulatory requirements as well as BHP Billiton’s Charter and Sustainable Development Policy.

many BHP Billiton operations have existing closure plans that have been developed to satisfy regulatory or internal needs. The Closure Standard requires that each operation reviews existing plans to ensure full compliance. These reviews take place over a two year period and include a rigorous assessment of site specific closure risks and opportunities, identification of risk management actions and development of reasonable and accurate closure cost estimates.

Closure planning occurs throughout the lifecycle of the operation, starting with exploration and development of a property and continuing as long as necessary. The Closure Standard requires operations to calculate the cost of closure and to make provision for that cost from the early stages of operation.

The provisions for reclamation and decommissioning are calculated by discounting the expected expenditures to their net current value. The estimated total site rehabilitation cost (undiscounted and in today’s dollars) to be incurred in the future arising from operations to date, and including amounts already provided for, is around $1,2 billion.

at 30 June 2006, $455 million was provided for reclamation and decommissioning costs of operating sites.


< 39 >

Biodiversity at BMSThe BmS Bakhuis exploration concession currently being evaluated by BmS is located in a high biodiversity region, adjacent to the Central Suriname Nature Reserve, a World Heritage Site.

The BmS leadership team has demonstrated its commitment to Zero Harm by giving its full support to a high level assessment of environmental risks prior to investment and development. To this end, BmS is conducting an Environmental and Social Impact assessment (ESIa) of its Bakhuis bauxite project in the interior of Suriname. an independent consultant is managing the ESIa and has undertaken intensive baseline studies of existing conditions.

Like most of Suriname, Bakhuis is a high biodiversity area, so particular emphasis has been placed on understanding and cataloguing flora and fauna, as well as water resources and aquatic ecosystems. as part of these studies, a camera trapping program to observe the fauna of the exploration concession has been running for nearly two years (see case study on page 53).

Consultation with local communities has been taking place since the inception of the ESIa and will continue throughout the process, which is expected to be completed in late 2007.

During FY2006, separate ESIas have been conducted for the Caramacca, Nassau and Coermotibo deep-seated exploration programs.

Worsley Mining leaseWorsley mining lease covers state forest and farmland along the eastern edge of the Darling Range.

The original lease covered 11 300 square kilometres. Over the

Tree nursery at Coermotibo, Suriname. The trees are used for rehabilitation of mined-out land.

past 20 years, through negotiations with the state government, Worsley has been relinquishing areas which are not scheduled for mining. The release of these tenements – which covers about 70 per cent of the lease area – has allowed for the establishment of conservation areas and long term forest management programs.

Detailed flora, fauna and heritage studies have been undertaken in large portions of the remaining lease area.

Forest areas that have a high conservation value are excluded from mining plans.

Key issues for management during the mining process include:

• conservation of significant vegetation communities

• sustainable use of groundwater resources

• protection of dieback free forest within the Saddleback Timber Reserve (STR), and

• management of noise and dust.

Land rehabilitation strategy at WorsleyComprehensive biological baseline studies have been conducted in the Worsley mining lease area since 1980. Information gathered during these studies is used to assess potential environmental impacts and to develop and refine rehabilitation plans.

The rehabilitation process is based on rapid revegetation of disturbed areas – usually within 12 months of mining.

The broad objective of rehabilitation in forest areas is to regenerate a stable forest ecosystem with flora characteristics compatible with the eastern jarrah forest. Specific goals include the maintenance of recreation, conservation, timber production, landscape


< 40 >

A pigmy possum monitored during Worsley's forest rehabilitation activities.

and hydrology values, and to minimise impact on undisturbed areas.

Between January and June, all areas are seeded with native seed from more that 150 species of trees, legumes, understorey and groundcover plants collected from the local flora provenances.

In June, seedlings of recalcitrant species – those difficult to return through topsoil management or by broadcast seeding – are planted. Rehabilitated areas are fertilised by helicopter in august.

Success criteria include the establishment of 500-700 stems per ha of tree species for the total area rehabilitated, and the establishment of at least two native plants – one legume and one non-legume – per square metre.

For farmland areas, the general objective is to return a stable agricultural system. This includes creating a compatible landscape and restoring land capability and productivity levels. Rehabilitation plans are prepared in consultation with the landowner.

Rehabilitation over the past 12 months has taken place in 113ha of state forest and 8ha of agricultural land.

Flora and fauna conservation at WorsleyWorsley’s flora and fauna conservation strategy aims to minimise impacts through management measures, including:

• detailed flora and fauna surveys before mining

• identification and protection of areas of high flora and fauna conservation significance

• establishment of wildlife corridors

• prompt rehabilitation of land and development of fauna habitats

• monitoring of vegetation diversity and fauna populations in rehabilitated areas

• support for research into rehabilitation and diversity, and

• workforce education and training.

a study to assess the success of recolonisation of fauna species in rehabilitation areas began in the spring of 2002. The study found that 90 of the 104 vertebrate species known to occur within the Saddleback state forest were present in rehabilitated areas.

In 2003, a plan was developed to establish an enhanced wildlife corridor between the Saddleback Timber Reserve and George Forest Block.

Rehabilitation land at Alumar, Brazil.

a fence has been built along the corridor to protect more than 70ha of native vegetation from degradation by livestock grazing.

In 2005, work began on the revegetation of 29ha of existing pasture within the corridor. Livestock has been excluded and weed control works were undertaken in preparation for direct seeding with local native species in 2006.

Biodiversity research at WorsleyWorsley has continued to support in-house and external research programs aimed at achieving continuous improvement in environmental management. most of these programs are designed to enhance rehabilitation techniques and are coordinated through or in conjunction with the Biodiversity Conservation Centre (at the Botanic Gardens and Parks authority), the minerals and Energy Research Institute of Western australia, the CSIRO, universities (The university of Western australia, Curtin university of Technology, murdoch university) and in collaboration with industry partners.

These studies and programmes include:

• examination of processes involved in the establishment of a range of species to be used for rehabilitation from seeds and cuttings

• investigating techniques to deter kangaroos from rehabilitated areas until the plants are large enough to tolerate grazing

• better seed selection and planting methods to improve re-establishment of macrozamia riedlei (a forest palm) which is common in forest areas

• topsoil-sieving trials to quantify the potential benefits of this technique, resulting in increased floristic richness of the vegetation

• examination of the effect of fertiliser timing, placement and type on vegetation in rehabilitation

• evaluation of the population of invertebrates as an indicator of success of rehabilitation

• research into the control and management of the pathogen Phytophthora cinnamomi which causes dieback in forest areas of the Worsley operations.

In april 2006, Worsley alumina was given government approval to expand its operations to 4.4mtpa. This will require the exploitation of new mining areas, increased bauxite transport, an


< 41 >

upgrade of the refinery and upgraded port handling facilities.

Expansion into new mining areas is conditional on the results of biodiversity studies and development of environmental management plans, rolling 10-year mining plans and the identification of a transport corridor.

To date, biodiversity investigations within the expansion areas (predominantly to the north of the existing Boddington bauxite mine) have included preliminary flora and fauna baseline studies.

Future studies will look more closely at specific issues raised during the EIa process, and will also seek to integrate the various aspects of biodiversity (eg. flora and hydrology) to increase the understanding of the natural ecological processes involved in the local ecosystems. This will result in a more informed assessment of the potential impacts of expanded mining operation.

The biodiversity investigations will be undertaken over a number of years, and will culminate in a formal public report. The report will require government endorsement before any new mining or construction activities begin.

BauXITE PROCESSING RESIDuE maNaGEmENT During the digestion stage of bauxite processing, alumina is dissolved into the liquor stream while other components form solid residues, commonly known as red mud (bauxite residue).

at Worsley, disposal areas lined with clay and surrounded by batters or embankments have been constructed to store this residue.

Each red mud containment facility is designed to collect residue liquor via decant and a network of slotted underdrainage pipes installed above the clay liner. Collected residue liquor is returned back to the process.

Each disposal area also has a network of pipes to maintain separation of the natural groundwater from water seeping through the bauxite residue. This groundwater drainage system collects water from under the clay liner and carries it to the fresh water lake.

Regular monitoring showed no change in the fresh water quality.

Dust is one of the main environmental issues associated with the disposal areas. Current strategy is to increase surface roughness and to lower surface wind speeds by means of breaking up the residue surface, thus allowing for shorter drying times.

Other strategies include dividing the containment facilities into small working areas and investigating alternative residue management techniques. Extensive trials have been undertaken in assessing the use of surface covers to cover and/or bind the dust particles to reduce dust being lifted by wind.

There is a long term plan to rehabilitate the bauxite residue areas, and on-going research is taking place, including:

• understanding the hydro-geological and geotechnical properties of the residue

• land form stability• requirements of the soil to support vegetation• methods for stabilisation of steep slopes.

a large scale trial will be established to evaluate the rehabilitation options.

alternative uses for residue are being investigated, including:soil amelioration, construction, acid mine drainage and water treatment.

Treatment and alternative uses of residue are also being investigated by the australian aluminium Council, of which Worsley is a member.

WaTERMining and refiningmining and refining activities are responsible for the bulk of the water consumed within the aluminium CSG.

Water is used at the Boddington bauxite mine mainly for dust suppression.

about 10ml was used for domestic and drinking use during the year, compared to 250ml used for dust suppression.

a water conservation team has been set up at the mine to find ways of reducing water consumption, focusing on mining activities and community campaigns. One project involved the installation of an evaporation cover on a dam in February 2006. It will save approximately 5ml of water a year by reducing evaporation.

The water management system at the refinery is designed to contain, separate and recycle water used during the refining process. Recycled water constitutes close to 50 per cent of the water used for refining.

an intensive campaign to encourage employees and the general public to control water consumption was conducted at the Boddington bauxite mine. The successful ‘Slow the Flow’ campaign has been nominated for a Golden Gecko environmental award in 2005.

Currently Worsley’s Drinking Water Safety management Plan is regarded as leading practice within BHP Billiton. The purpose of this document is to provide guidance on the provision of drinking water at the Worsley alumina Refinery site and where supplied offsite. adequate water quality, water management standards and procedures for testing and distribution are described.

Red mud containment facility, Worsley.


< 42 >

SmeltingWater used for cooling at the aluminium smelters is recycled.

Impoundment dams at the Hillside and mozal sites play a key role in managing storm water run-off by serving as buffers between the sites and the downstream environment. This system ensures that fluoride levels discharged are within zero harm limits.

all sites have extensive surface water and groundwater monitoring programs in place, with sampling points located on and off site. Compliance reports are submitted to authorities where applicable.

mozal reviewed the water quality monitoring programme in place at the Rio matola River, which receives water from mozal and flows into the maputo Bay estuary. Water and sediment is sampled at low-tide and high-tide during spring and neap extremes, and has been extremely valuable in setting long term baseline values.

The revised monitoring programme will resolve seasonal variations and determine current water quality parameters in the matola River and estuary, and verify current results against the data gathered in previous studies.

Water storage dam at Alumar.


FY2003 FY2004 FY2005

Fresh Water Consumption (megalitre)

thou

sand

s

0

2

4

6

8

10

12

14

16

18

20

FY2006


< 43 >

WaSTEa number of waste initiatives are being implemented within the aluminium CSG, which has the highest waste recycling rate (77 per cent), excluding mineral waste, in the BHP Billiton Group.

Initiatives vary from awareness campaigns, minimisation and recycling projects to waste strategies. mineral waste represents around 99 per cent of waste generated by the aluminium CSG and is discussed above under ‘Bauxite Processing Residue management’.

another form of waste is Spent Pot Lining (SPL) at the smelters. There was a temporary increase in SPL waste during the year under review owing to the Potline a freeze at Bayside, but this waste stream has subsequently been stabilised.

Both the refractory and carbonaceous portions of the pot lining are currently recycled, mainly in the cement industry.

a waste recycling project involving the three southern african smelters aims to identify better recycling opportunities, which have greater financial benefits. Savings during the past year was around $1.4 million (See case study on page 51).

Waste classification per source is carried out at all the sites to avoid waste contamination and to promote recycling.

Key performance indicators for the percentage recyclables contained in general waste were introduced at Worsley. a target of less than 5 per cent contamination was set to be achieved by June 2007. Targets are measured every quarter and relayed to employees through Waste awareness programs which aim to promote recycling initiatives, propose possible alternative products and packaging, and improved standards of practice.

Cost savings achieved by recycling initiatives at Worsley have a direct community benefit through the Ruggies minerals Industry Recycling Scheme. Worsley donates 30 per cent of all recycling returns to the scheme, which are then passed on to Princess margaret Hospital for Children and the Royal Flying Doctors association.

Worsley donated around $38 000 to the scheme this year – bringing total donations since June 2000 to nearly $190 000.

Worsley is running an effective recycling awareness campaign which involves the donation of bins to schools. The campaign is such a success that additional bins are being donated to cater for the increase in recycling taking place.

Worsley’s target of a 20 per cent decrease in solid waste to landfill over five years from 2002 has been exceeded.

Bayside launched a waste awareness campaign on World Environment Day whereby teams were given boxes containing non-hazardous recyclable waste generated on site and given the task of producing something creative from the waste streams.

mozal started using the recently completed mavoco hazardous waste site in march 2005. mavoco is situated ± 12km from the mozal smelter, and has an estimated 25-year life span. It was constructed by the BHP Billiton project team during the mozal II expansion, was funded out of the project budget, and donated to the government. It is the first facility of its kind in mozambique, and extensive liaison and cooperation between mozal, the ministry of Environmental affairs and EnviroServ (the waste management company responsible for operating the site) was necessary to ensure the project’s success. The current challenge is to get other companies generating hazardous waste to use mavoco.

Waste Generation (excludingResidue) and Recycling

Bayside HillsideMozal

FY2003 FY2004 FY2005

WorsleyBMS

0

20

40

60

80

100

120

0

20

40

60

80

% recycling

% re

cycl

ing

thou

sand

tonn

es

140 100

FY2006


< 44 >

ENERGYaluminium production, specifically smelting and the associated electricity usage, is very energy intensive. The aluminium CSG is the major contributor to energy consumption in BHP Billiton (44 per cent), of which 55 per cent is electricity consumption. almost 20 per cent of the energy used by the smelters is from carbon anode consumption, although the carbon is consumed as an electricity conductor and not as a source of energy.

The major contribution to direct fossil fuel usage is electricity generation at Worsley. Energy consumption at BmS is relatively low, since the company is only engaged in mining.

Greenhouse gas management programs and energy conservation plans have been developed at all sites with annual emissions greater than 100 000 tonnes of CO2 equivalent. This includes all aluminium CSG sites apart from BmS.

The Hillside and mozal smelters are currently among world benchmark smelters in terms of energy intensity and specific greenhouse gas emissions. Process control software in the older Hillside potlines is currently being updated in line with the newer Hillside 3 and mozal software. This will improve potline stability, which in turn contributes to energy efficiency.

Worsley uses coal and gas-fired power stations to produce the energy required to make steam used in the process. Surplus energy from the gas-fired power station is supplied to the public grid.

There has been continuous improvement in energy efficiency at the Worsley refinery since the addition of the co-generation power station, and through engineering and technological improvement in the refining process.

a steam recovery plan has been initiated at the refinery to ensure all steam traps are operating as designed. a steam leak survey completed in June 2005 has now become a regular part of operations to improve steam reticulation and maintenance programs.

Improved alumina seed classification has led to higher plant yield with no increase in steam demand.

a program is underway to upgrade filters around the refinery to further improve steam efficiency.

The aluminium CSG is a member of the International aluminium Institute, which is currently doing extensive work on aluminium life-cycle assessment (LCa), specifically with regards to energy and greenhouse gas emissions. (See the case study regarding aluminium LCa in the transport sector at the end of this Report). a Hillside student is also busy with a dissertation on energy LCa specific to Hillside aluminium and its raw material suppliers.

Connecting power supply cables at the Hillside smelter.

Energy Consumed (PJ)

FY2003 FY20040

20

40

60

80

100

120

130

140

FY2005 FY2006


Aluminium CSG Energy Breakdown

Purchased electricity55%

Coal and coke 27%

Natural gas11%

Distillate andothers 7%


< 45 >

aIRThe key air emissions generated by the aluminium CSG’s activities include greenhouse gases, oxides of sulphur, fluoride gases and particulates.

Primary greenhouse gases of concern are carbon dioxide (CO2) and emissions of perfluorocarbons (PFCs). PFCs are formed under specific conditions, when process instability, known as ‘anode effect’, is experienced in the pots during aluminium smelting. Oxides of sulphur (SOx) and fluoride emissions are generated chiefly from smelting operations.

The Richards Bay smelters, Hillside and Bayside, provide financial support to an independent body, the Richards Bay Clean air association (RBCaa), that measures and reports publicly on ambient air quality, while mozal conducts bi-annual surveys on air quality.

Results of the ambient monitoring program indicate that all parameters measured are within the Zero Harm limits set by the World Bank.

all three smelters engage in discussions around their air emission results at the annual Interested and affected Parties meetings.

measures to control dust are important aspects of both operational and environmental management systems, especially at the mining and refining sites. Dust is generated by activities such as earthworks, excavation, blasting, transportation and product processing, and is exacerbated by dry climatic conditions and wind.

a major challenge at the Worsley refinery in recent years has been the management and control of air emissions. as production has increased, so has the demand for higher emission control standards.

In response, Worsley has:

• adopted a detailed process for managing air emission projects

• developed solutions for reducing emissions from the liquor burner

• improved control of emissions during the digestion stage, and

• established a comprehensive health and hygiene surveillance program.

an air Emissions Impact assessment Process was established by Worsley in 2003. a panel comprising employees and consultants with high-level expertise in the management of air emissions was set up, and is responsible for the development of a comprehensive air emissions program that includes sampling and analysis, modelling, community and employee consultation, and environmental improvement plans.

The assessment process has been promoted as industry best practice for managing air quality.

Following an evaluation of control technologies, Worsley has fitted its liquor burner with emission control equipment to significantly reduce the generation of odourous volatile organic compounds (vOCs).

The odour emission rates from the liquor burner are now less than 2 per cent of the total refinery emission rate, and as a consequence can be considered insignificant in terms of environmental impact.

Monitoring emissions at the Fume Treatment Centre, Hillside.


< 46 >

a $7.5 million project now underway aims to re-route gases from the digestion process into a collection vessel where they will be processed through a Regenerative Thermal Oxidiser, similar to those used for the liquor burner.

Greenhouse gasesa number of initiatives relating to climate change risks and opportunities are being implemented, in line with BHP Billiton’s Sustainable Development policy. These include:

• reducing the greenhouse gas (GHG) intensity of operations in line with the target

• the development of site-level GHG management and energy conservation plans

• pricing carbon in investment decision-making

• funding research and development activities.

Greenhouse gas management programs and energy conservation plans have been developed at all sites with annual emissions greater than 100 000 tonnes of CO2 eq. These include all aluminium CSG sites except BmS.

Carbon pricing sensitivity analysis is a key factor in decision-making on new projects that would emit more than 100 000 tonnes of CO2 eq per annum. This analysis incorporates a range of prices for developed and developing countries over an extended period of time.

BHP Billiton’s total greenhouse gas emissions amounted to 51 million tonnes of carbon dioxide equivalent, a similar level to that reported in the previous reporting period. The aluminium CSG contributes a total of 51 per cent to this figure. major contributions were from the three aluminium smelters, amounting to 25 million tonnes of CO2 eq.

Total greenhouse gas emissions have increased over the past few years due to expansion projects at Hillside, mozal and Worsley. a power outage at Bayside Reduction a resulted in higher PFC emissions and higher anode consumption. This has now stabilised. BmS has almost negligible greenhouse gas emissions compared to the other aluminium CSG sites.

BHP Billiton has set a target to achieve an improvement in the greenhouse gas intensity of operations (including emissions from purchased electricity) of 5 per cent over the period 1 July 2002 to 30 June 2007.

The greenhouse gas intensity index is used to monitor performance against this target. BHP Billiton’s performance is significantly ahead of schedule and the target has already been exceeded.

The graph shows the greenhouse gas intensity index for the past four years. although an increase in greenhouse gas intensity for the aluminium CSG occurred during the past financial year, an overall reduction to date of 3 per cent against the 2001/02 baseline was achieved.

a major contributor to the decrease in intensity was a decrease in emissions from Bayside of almost 12 per cent.

Bayside is currently focusing on reducing its direct greenhouse gas emissions through the management and improvement of energy efficiency and carbon consumption.

although there was an increase in specific greenhouse gas emissions from electricity

Greenhouse Gases Intensity(including purchased electricity)

(tonnes CO2 eq/ton product)

Bayside HillsideMozalWorsleyFY2003 FY2004 FY2005FY2002

Intensity index (%)

0

5

10

15

20

25

30

35

perc

enta

ge (%

)

tonn

es C

O2

eq p

er to

nne

prod

uct ��

��

��

��

��

��

��

��

��

��

��

��

FY2006


FY2003 FY2004 FY2005

Worsley

Greenhouse Gases (includingpurchased electricity) (ton CO2 eq)

mill

ions

BMS

0

5

10

15

20

25

30

FY2006

Note: Baseline FY2002 used as per BHP Billiton target.


< 47 >


0

5

10

15

20

25

30

35

40

45

FY2003 FY2004 FY2005

Worsley

Sulphur Dioxide (tonne)

thou

sand

s

FY2006

FY2003 FY2004 FY2005


Fluoride Emissions (tonne)

0

200

400

600

800

1 000

1 200

Worsley

FY2006

generation in southern africa, improvements in process specific emissions were realised. an increase in process specific GHG emissions was noted at mozal due to potline outages and relining.

Improved process control software in the newer potlines at mozal and Hillside, as well as improved management of anode effects at all smelters, contributed significantly to a reduction in PFC emissions.

an annual survey of PFC emissions by the IaI has shown that mozal and Hillside are among the benchmark smelters worldwide in PFC emission levels.

Greenhouse gas intensity reductions achieved at the Worsley refinery were mainly due to projects to increase heat recovery and energy fuel switching and the establishment of a specialist team to reduce GHGs by 40 per cent (based on 2002 emission rates), at the mine site.

Life cycle assessments are being done by the IaI to establish the impact that aluminium has on energy consumption and the emission of greenhouse gases. (See the transport sector case study at the end of this Report.)

Sulphur dioxideSulphur dioxide (SO2) emissions arise from the use of fossil fuels, mainly coal and petroleum coke. Emissions from the aluminium CSG contribute 41 per cent of total BHP Billiton emissions. Currently a silo is under construction at the Hillside smelter facilitating the blending of low sulphur coke in order to reduce emissions. apart from a general worldwide increase in sulphur content in coal and petroleum coke, the expansions at Hillside and mozal contributed to the increase in emissions. Note that SO2 emissions from BmS are negligible.

FluorideFluoride is an essential component in the aluminium smelting process and, when emitted, is recovered as far as possible by means of adsorption on alumina. This is then recycled back into the process.

Factors influencing fluoride emissions are pot-closure and adsorption efficiency. Fluoride emission from the aluminium CSG contributes 72 per cent to that of BHP Billiton. an increase in absolute emissions is due to expansions at Hillside and mozal.

Specific emissions show a general downward trend with mozal being regarded as one of the lowest emitters of fluoride for the technology that is utilised.

an environmental upgrade at Bayside’s B and C potlines during the 2003/2004 financial year contributed to a reduction in fluoride emissions of more than 100 tonnes per annum.

a small amount of fluoride is emitted by Worsley due to coke consumption.

The mayor of uMhlathuze Municipality and media representatives during a visit to the new coke silo under construction at Hillside Aluminium.


< 48 >

ENvIRONmENTaL SPENDINGThe most significant contributor to environmental spending (excluding capital and operational expenditure) was on environmental management, including human resources, training, consultants, environmental impact assessments and project execution. a trend of increasing environmental spend is noted, mainly due to an increase in management and monitoring from Worsley. In addition, rehabilitation costs at BmS started to become a factor during the last two years.

Research and development cost was mainly incurred by Worsley for the air Emission Impact assessment process, biodiversity research and research related to the development of a rehabilitation strategy.

These costs exclude expenditure associated with capital cost, operation and maintenance of pollution control equipment and the like.

RESPONDING TO COmPLaINTSall operations record and investigate environmental complaints received from members of the public. During the year under review a general decrease in complaints has occurred due to pro-active initiatives to manage environmental impacts, as well as initiatives to more effectively communicate planned activities with neighbouring communities. Individual feedback is provided in the case of specific complaints, as well as public feedback where appropriate.

Complaints at Worsley are mainly related to noise which is associated with the use of heavy vehicles and the operation of the overland conveyor. many initiatives are ongoing to minimise noise, including:

• noise modelling to predict mining noise levels at residential locations, and the use of this information on a daily basis for planning of noise related activities

• use of ‘Nonel’ detonation devices during blasting at the mining sites

• introduction of silent horns on heavy vehicles. During the loading of trucks, a radio signal is sent out from the related loader when required. This signal is received as an audible alarm in the truck’s cabin. Each truck operates on a unique frequency

• changing of operational procedures and systems to accommodate noise management

• external review of noise management procedures and systems

• reduction of the Sound Power Level of all equipment by 7dB(a).

Complaints received by the aluminium smelters mainly concern visible air emissions. many initiatives to minimise emissions, and the resulting complaints, have been implemented, including:

• informing the authorities and public prior to planned maintenance of air emission abatement equipment

• monitoring of emissions during planned maintenance

• improvement of planned maintenance procedures to minimise emissions.

at Bayside visible emissions are logged internally in order to address the source of visible emissions immediately.

ENVIRONMENTAL SPENDING

unit: uS$ 000

Aluminium BHP Billiton

Research and Development 1,690 12,249

Site Rehabilitation 2,448 189,281

Environmental monitoring 3,347 29,535

Others 2,810 78,368

Total 10,296 309,433

Doing noise surveys in a residential area.

ENVIRONMENTAL COMPLAINTS

unit: Number of Complaints

FY2003 FY2004 FY2005 FY2006

Worsley 54 38 29 24

BmS 0 0 1 4

Hillside 6 35 5 1

mozal 2 0 2 0

Bayside 4 4 11 12

Total 66 77 48 41


< 49 >

case study

WaSTE RECYCLING PROJECT aT aLumaR, BRaZILa waste recycling project at the Consórcio de alumínio do maranhão (alumar) aluminium operation has led to coal fines from the refinery boilers being used as a substitute for the coke burned in the kilns at a local cement plant.

The innovative recycling concept has the potential to produce significant environmental and socio-economic benefits, including:

• reduced storage of coal fines at the plant by 18 000 tonnes per year

• the opportunity to develop a highly efficient recycling technology at low cost

• reduced fugitive emissions, with subsequent health, environmental and visual benefits

• saving of $400 000 by avoiding the need for a new coal fines disposal area

• increased awareness of the Company’s endeavours to provide leadership in environmental management.

The coal fines re-use projectThe refinery employs a steam-based process to produce alumina. most of the steam is produced by three coal-fired boilers, which generate ashes. Since the facility began operating, coal ashes (including coal fines, which are the finest of the ashes) have been stored in a purpose-designed area that occupies 1.3 hectares of land and cost $400 000 to construct.

Coal fines are generated by the refinery at an annual rate of 26 400 tonnes. By January 2005, all of the stored ashes had been removed for use in the rehabilitation of bauxite residue storage areas. Coal ashes improve the physical properties of soil and act as a source of nutrients for plants.

Since then, approximately 24 000 tonnes have been stored in the ash disposal area. They could be used for further rehabilitation of the surfaces of the bauxite residue storage areas. However, such rehabilitation projects occur only about every six years.

In October 2005, a project was initiated to find a re-use for all the coal fines generated by the refinery. Coal fines have a heat value of approximately 5 000 kcal/kg. They are not corrosive and are not a hazardous waste. These properties make them suitable for use in cement plants as a partial replacement for the coke burned in the kilns.

Tests were conducted in partnership with a cement production company located in the state of Ceará, with the approval of the environmental authorities in both maranhão and Ceará. In the initial stages of the project, from October 2005 to February 2006, a total of 1 950 tonnes of coal fines were sent to the cement plant. as the project develops, the volume shipped is expected to increase to a steady rate of 1 500 tonnes per month.

at that rate, up to 18 000 tonnes of ashes per year will be re-used and therefore will not need to be stored. The balance of the coal

fines being generated by the refinery will be used as required for the rehabilitation of the bauxite residue disposal areas, and other potential applications are being explored. This means a new storage area for coal fines will not need to be constructed.

Refinery expansionThe refinery is currently undergoing an expansion project, scheduled for completion in 2008, which will result in an increase in the generation of coal ashes from 2 200 tonnes per month (26 400 tonnes per year) to 7 200 tonnes per month (86 400 tonnes per year).

In response to the projected increase in ash production, other avenues for use of coal fines are currently being explored.

In addition to its usefulness in the cement industry, the project results indicate that coal fines could be used as a partial replacement for coal in steel plants and for charcoal in pig-iron plants. This provides scope for the trade of coal fines to these industries as well.

The coal fines disposal area at Alumar.

Waste recycling project coal fines in Brazil

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

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< 50 >

case study

aSa WaSTE maNaGEmENT PROGRammEa BHP Billiton aSa (aluminium Southern africa) waste management programme was initiated in 2004, involving the three southern african smelters, Hillside, Bayside and mozal. The initiative arose out of BHP Billiton’s goal for ‘Zero Harm’, and is supported by the ‘Centre of Excellence’ methodology.

The following factors also contributed to the decision to establish the waste management initiative:

• ever increasing waste cost• low waste recycling ratios• limited spent pot lining (SPL) recycling opportunities• individual smelter volumes, not able to meet external

market demands• exploration of synergies• storage of hazardous waste.

Forming the groupan aSa waste initiative group, representing all three smelters and various disciplines within aSa, including environmental, production and commercial people, was formalised in January 2005.

The group’s first task was to find a total waste solution partner, whose core business is waste management. a commercial and technical assessment led to a contractual agreement between EnviroServ Waste management and aSa, which hinges on a sharing in cost savings.

The agreement between aSa and EnviroServ is developed on the basis of ‘16 Principles’ as agreed on by the group. Principle 1 reads:

“It is the intent of both parties to develop a win-win partnership that will for an indefinite period aspire to reduce the costs of BHP Billiton waste management and increase the value of its waste streams into specific offset markets.”

Principle 1 sets the tone on which the remaining principles expand.

EnviroServ is working closely with role-players in each smelter to find the best resolution for each waste stream. Their focus covers all waste streams in aSa and incorporates all waste processes from waste avoidance to waste disposal. The mission statement of the group is:

To eliminate, reduce and recycle all waste, at zero cost and harm to environment and people.

This mission can be achieved by changing the current waste management focus, as shown in the illustration at right.

One of the crucial points in changing this focus is education. The aSa group is busy developing a handbook, to be distributed to relevant employees at the three smelters, which aims to align the thinking and processes within aSa.

Combining the dataOne of the first targets of the group was to combine all the waste data from the three smelters in terms of volumes and cost, and to treat the data as one waste source. an aSa waste database was

minimisation

Re-use

Recycling

Treatment

Current Focus Future Focus

Disposal

Carbonaceous SPL Charge carbon

Fuel

Refractory SPL use as raw material

SiC SPL use as reductant

Carbon Dust Slag conditioner

Ladle refractories Ladle insulating cover

X-material Ladle insulating cover

Bake furnace refractories Paving & grog

Waste Stream Application

established and is updated on a monthly basis. This database provides the information to track the progress of the waste group. The database also provides valuable information in developing new markets for external recycling.

Identifying opportunitiesmany of the waste streams within aSa contain significant value for external markets which have never been developed before. The table (above) shows specific streams and the possible markets.

Priority streams were determined in terms of cost and volume and the market development is currently underway. Identifying further prospects will be based on the continuous improvement methodology to ultimately reach the target of zero cost and zero waste to landfill in aSa.

Current achievementsSeven months after the program was initiated, the following had been achieved:

• total waste solution partnership formed between aSa and EnviroServ

• all three smelters have on-site waste management contracts in place

• EnviroServ operating mavoco (mozambique’s first hazardous waste facility)

• EnviroServ operating the Bayside smelter SPL processing facility with increased throughput and decreased cost

• EnviroServ erected and commissioned the mozal smelter SPL screening plant

avoidance


< 51 >

Trials have been conducted in the steel and cement industries, confirming the favourable application of the product and the negligible environmental impact. The results of these trials were used to get approval from the regional air pollution officers for further extended trials.

Some savings have been realised as a result of diverting SPL into the test markets.

Facing the challengesmore than 7 000 tonnes of waste has been recycled, with a saving of more than $1.4 million.

“EnviroServ is proud to be involved with this first of its kind agreement within BHP Billiton aSa. We are committed to making it a success, and in the process pioneering the way to supply new win-win integrating waste solutions in africa.”

Des Gordon, EnviroServ Chief Executive Officer.Trials are being done to test the use of spent potlining in the cement and steel industries.

case study

ESTaBLISHmENT OF a BRaZIL NuT GERmPLaSm BaNK aT SaRaCa-TaQuERa NaTIONaL FOREST, BRaZILThe aim of the project is to preserve, characterise and quantify the genetic variability of the Brazil Nut (Bertholletia excelsa), which is a tree species of great social, economic and environmental importance in the amazon. This involves the establishment of a Brazil Nut germplasm bank in the Saraca-Taquera National Forest, containing samples from different amazon populations. It is a pioneering project and extremely significant for the people of Brazil, bearing in mind the importance of the species.

The project was started in November 2002 in a partnership between mRN, the Brazilian Environmental and Renewable Resources Institute and the National amazon Research Institute.

mRN’s role in the project, in addition to the funding of the project and the provision of supporting manpower and logistics of the team members, is overall co-ordination and implementation.

In the first three years the focus has been on the collection of germplasm from ten sampling sites, sowing of seedlings in a nursery, reforestation of specific controlled areas in the mine with Brazilian Nut trees, and molecular characterisation of the germplasm bank.

The project team is led by an agronomist and two forest scientists. additional team members include biologists and foresters.

One-year-old germplasm bank plantation.

Left: Brazil Nut (Bertholletia excelsa).

One of the biggest challenges is gaining access to the Brazil Nut tree forests to collect living material (seeds, pollen and tissue) for the germplasm bank. These areas are scattered throughout the amazon region covering an area of roughly 3 000 000 square kilometres.

The knowledge obtained from this project will serve as a model for the creation of germplasm banks of other important plant species in the amazon and elsewhere in the world.


< 52 >

case study

WILDLIFE STuDY IN THE BaKHuIS EXPLORaTION CONCESSION aREa In November 2003, BHP Billiton maatschappij Suriname (BmS) commenced a two-year exploration program to define bauxite resources in its Bakhuis concession in western Suriname. The concession covers 2 800 square kilometres and comprises a largely undisturbed tract of tropical rainforest. It also lies adjacent to the Central Suriname Nature Reserve, a designated World Heritage Site and rainforest wilderness that encompasses 10 per cent of the land area of Suriname.

The Bakhuis field staff recognised early in the exploration program that the concession hosted very diverse and abundant fauna and therefore decided to implement a camera trapping program to record the wildlife of the concession. an approach was made to Conservation International (CI), the international not-for-profit organisation focused on conserving biodiversity, to provide guidance in setting up and operating the camera network. The first pictures were obtained in July 2004, and included good images of a wide range of animal and bird species.

Environmental and social impact assessmentDuring 2005, an environmental and social impact assessment of possible future mining at Bakhuis was launched. under the guidance of Dr Jim Sanderson, a renowned cat specialist with CI’s Centre for applied Biodiversity Science, the camera network was expanded and improved, and the results were spectacular. Together with other field observations, the team has identified 34 medium and large terrestrial mammals to date, and further species are anticipated. Four cat species were observed, and the images demonstrated that jaguar and puma are abundant.

“The wildlife throughout Suriname is extremely biologically rich and diverse,” commented Dr Sanderson. “Through this project with BmS, rare cat species and other large mammals are being photo-trapped at high rates and at many sites. CI believes private sector partnerships like this are critical to achieving our global biodiversity conservation outcomes.”

andy Witcomb, Environmental manager Projects, BmS, adds: “The camera trapping program has added immensely to our understanding of the species richness and abundance of the Bakhuis fauna, and expands existing ecological knowledge in Suriname. It also allows us to compare Bakhuis with other locations in the Guianas and amazonia and provides a sound basis for prediction of potential impacts of any future mining at Bakhuis, together with responsible management of those operations.

“The technical expertise, guidance and spirit of cooperation of CI have been critical factors in the success of the camera trapping program. Partly as a result of this partnership, BmS and CI have since worked together on other ecological assessment programs elsewhere in Suriname.”

Environmental field coordinator checking a camera trap.

A camera trap in place.

A jaguar photographed during the study.


< 53 >

There have been negative perceptions of the mozal operation among some members of the surrounding community since the smelter was established in 1998. For example, mozal has been accused of causing changes to natural weather patterns, and even for being responsible for droughts.

These perceptions have been ascribed to a lack of understanding of the aluminium production process and to distrust as to why mozal invested in mozambique (mozal is the biggest investment undertaken in mozambique since independence in 1975).

Hence the process of engaging with local communities and stakeholders through the Interested and affected Parties (I&aP) meetings and other communication channels has taken on an added significance. mozal’s desire to be viewed as a good corporate citizen that nurtures realistic opportunities, while uplifting people and building long-term relationships built on honesty, openness, mutual trust and involvement, is enshrined in the BHP Billiton Charter and is an integral part of mozal’s operating philosophy.

mozal has maintained a relationship with the community in which it operates since the construction and commissioning phases of the smelter through a number of communication channels. One in particular that has been extensively used with success is the bi-annual I&aP meeting.

The first I&aP meeting was held in January 1998, and was probably the first such meeting ever held in mozambique. It was attended by 40 people (primarily senior government officials). Currently I&aP meetings are attended by more than 200 people.

Thorough preparation is undertaken prior to I&aP meetings to ensure that they are effective:

• prior to each I&aP meeting the HSE team reviews the opinions and concerns raised by the community, gleaned from media reports, social perception surveys, public visit feedback, general community feedback and previous I&aP meetings.

• approximately three to four weeks prior to the I&aP meeting, the HSE and Communications teams co-ordinate and arrange the logistics of the meeting. This includes:

• ensuring the presentation material is presented in both English and Portuguese

• appointing an external master of Ceremonies, respected by the community, to facilitate the meeting

• appointing an official English-Portuguese translator to carry out simultaneous translation during the meeting

• sending personal invitations to people who have attended previous meetings

• placing an open invitation to the general community

Interested and Affected Parties meeting in progress, Mozal.

in the local newspapers in the weeks leading up to the meeting

• placing information notices at strategically located distribution points, inviting the general community

• arranging transportation to and from the meeting for targeted rural groups that were affected by relocation strategies adopted by the mozambican government during the development of the Beloluane Industrial park in which mozal is located

• ensuring the proactive and enthusiastic participation of the mozal presenters.

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Bayside HillsideMozalWorsleyFY2003 FY2004 FY2005FY2002

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case study

CHaNGING PERCEPTIONS OF mOZaL PERTaINING TO ENvIRONmENTaL ImPaCT


< 54 >

Follow-upTo improve the depth of communication, meeting participants are encouraged to pass information on to their relatives. In addition information brochures are distributed with frequently asked questions and answers that clarify myths about the aluminium processes.

members of the community who have expressed strong views on certain aspects of the processes employed by mozal or the impacts that mozal has on the environment (including the community) are followed up directly. This has entailed personally inviting the people concerned to visit the smelter to see first hand how things are done. This has had a resounding impact and has in some instances resulted in a fundamental change of attitude to the extent that people who once had a negative attitude towards mozal now promote it in a positive light among the community.

For example, the concept of Zero Harm was introduced at an I&aP meeting in 2003, and was challenged by a professor from the local university, who re-iterated his challenge in the local press. Subsequently the professor was invited to visit mozal to discuss the concept of Zero Harm and its application. The professor then followed up on his earlier article in the local press with a challenge to other industries to buy into the concept of Zero Harm.

as a result of the engagement process:

• negative media articles on mozal have decreased significantly

• the type of questions raised by the public prove that they now understand mozal’s aluminium production process

• the number of complaints and questions received from the public has dropped significantly.

Additional benefits of the engagementmozal has established a rapport with the community, to the extent that community members express their support when criticism has been deemed to be unreasonable or unfair, and have advised other companies to follow the same engagement process.

The overall impact of the I&aP meetings has resulted in a two-way communication process whereby mozal has been sensitised to the opinions and concerns of the community and can take these into account in any planned activities or programmes.

mozal, through the I&aP meeting has created a more knowledgeable community empowered to take on more of a ‘guardianship’ role. This ensures that mozal continually strives to improve its HSEC performance.

Members of the public gather for an Interested and Affected Parties meeting, Mozal.


< 55 >

Employees help out at a soup kitchen in Richards Bay.

COmmuNITY

The importance of establishing good relations with host communities continues to grow, particularly in countries where external factors outside the Company’s control have the potential to impact on our operations.

The diversity of locations, languages and cultures that frame our interactions with communities also adds a further layer of complexity, which presents ongoing challenges.

The role of community relations practitioners within our operations continues to expand to ensure communities are informed about our operations, have the opportunity to express their views and opinions, and engage in decision-making in aspects of our business that relate to them.

Community relationsOur HSEC management Standard 7 forms the basis of our approach to communications, consultation and participation with stakeholders. Our aim is to maintain effective, transparent and open communication and consultation with stakeholders associated with BHP Billiton activities. Stakeholders are encouraged to participate in and contribute to sustainable development through HSEC performance improvement initiatives.

Following the review of the HSEC management Standards, the requirement for community relations plans has now become an integral requirement of HSEC management Standard 7 moving forward.

Effective communicationall the aluminium CSG operations hold regular interface meetings with the public to provide an opportunity for the management to discuss any plans, and for the public to raise any concerns. This provides an opportunity for the operations' management, in consultation with the community, to determine a way forward. The smelters also allow site visits to promote transparency of operations.

Community surveys are conducted at the operations to determine local perceptions of the businesses.

as discussed in the environmental section of this report, the Richards Bay smelters (Hillside and Bayside) provide financial support to an independent body that measures and reports publicly (in the media) on air quality. mozal conducts annual surveys on air quality and discusses the results at their interested and affected parties meetings.

BmS engages the community in discussions around operational changes at these sessions. The community has the opportunity to raise their concerns and aspirations on operational issues related to subsistence, land use, land ownership and environmental impacts.

BHP BILLITON COMMuNITY CONTRIBuTIONS (1 July 2005 – 30 June 2006)

arts Community Welfare Education Environment Health Sport/Recreation Other TOTaL ($uS)

BmS 52,238 13,670 202,252 9,874 6,450 8,731 45,989 339,204

mozal 78,512 1,128,636 186,259 119,907 485,901 79,172 651,927 2,730,314

Worsley 9,750 39,176 27,510 76,859 15,082 139,299 196,519 504,195

Hillside/Bayside 44,164 664,254 1,930,644 97,162 501,785 13,580 1,328,031 4,579,620

CSG Total 184,664 1,845,736 2,346,665 303,802 1,009,218 240,782 2,222,466 8,153,333

Aluminium CSG CorporateSocial Investment spending

Arts

Community Welfare

Education

Environment

Health

Sport/Recreation

Other

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27% 23%

29%12%

3%

2%

4%


< 56 >

CORPORaTE SOCIaL INvESTmENT aT THE HILLSIDE aND BaYSIDE SmELTERSThe Hillside and Bayside smelters provide support for a variety of projects in health, education, skills development, job creation, crime prevention and environmental conservation, through a Corporate Social Investment program.

The common theme running through the portfolio of projects is that they all aim to promote the establishment of a secure and economically sound environment in the Zululand region, where the smelters are located. This not only benefits Bayside and Hillside smelters, but the local communities as well.

Employee ForumBayside and Hillside employees are represented on a CSI Employee Forum which receives and screens applications for funding from various community-based organisations. The Forum, matched Giving Programme and Give-as-You-Earn programs, encourage employees to involve themselves in community development efforts.

an Employee volunteer Week was organised by both smelters in april 2006, during which Baysiders and Hillsiders used their own time, and were given time off work, to do community work for a charity of their choice (see case study on Page 64).

Ethembeni Care CentreBHP Billiton is a key corporate funder of the Ethembeni Care Centre (ECC), which has recently expanded to a 45-bed facility, and has become a flagship resource centre for HIv/aIDS interventions in Zululand. It offers help and hope to members of local communities (including employees of the smelters) who are infected and affected by HIv/aIDS.

Ethembeni is a past winner of the Mail & Guardian ‘Investing in the Future’ award, and has been nominated for a prestigious ‘Best Practice’ award. BHP Billiton annually contributes around 80 per cent of the operating costs of the centre, and the smelters

Employee Volunteer Week at the Garden of Hope.

Employee Volunteer Week, Bayside.


< 57 >

provide on-going support to ensure that it continues to deliver affordable care and quality services.

Science CentreThe university of Zululand boasts an excellent Science Centre in Richards Bay which is part-sponsored by Bayside and Hillside. The Centre, visited by more than 60 000 students per annum, offers workshops to learners preparing for their final Grade 12 exams, teacher workshops, science competitions, school visits and a resource centre with wonderful exhibitions that make maths and Science fun for any student. Bayside and Hillside upped their commitment to this institution this year by donating the funds necessary to construct an auditorium for the Science Centre which will enhance their ability to reach out to more students.

The PEN ProjectThe Partnership-In-Education Network (PEN) schools project is successfully managed by Bayside and Hillside and was initiated after the smelters had received numerous requests for financial assistance from more than 800 schools across the region. It was felt that rather than make ad-hoc cash donations, it would be better to ‘adopt’ a limited number of schools and focus on improving standards to match some of the best urban schools in the region. 38 Schools currently benefit from this project.

Physical Schools Development is a public/private sector partnership with the smelters and other stakeholders aimed at providing school buildings in under-resourced areas.

Community Bursary FundBursaries are awarded annually to individuals who have the potential to succeed at tertiary level, but would not otherwise be able to afford secondary or tertiary education.

Craft ProjectThe Zululand Craft action Body has assisted in providing rural people with a range of marketing skills. The objective of the project is to increase the ability of disadvantaged, unemployed and unqualified people to become food secure through accessing economic opportunities with a specific emphasis on creating self-employment (see case study on Page 74).

Tree-preneurs ProjectThis project aims to empower the ‘poorest of the poor’ to engage in community development projects, thereby allowing them to generate desperately needed cash, improve their basic communication and numeracy skills and, possibly most importantly, nurture self confidence and hope.

It enables unskilled community members to participate in community development and to reward them according to the amount of effort they put into the project. The Indigenous Trees for Life project specifically targets single parent and child headed homesteads, whilst the Community Greening project targets unemployed youth.

a network of 60 Tree-preneurs from two communities were identified by school principals and teachers as the most vulnerable scholars, the ‘poorest of the poor’. They are given basic training and are given indigenous tree seedlings to be planted in their communities.

Zululand Craft Action Body stand at a Zululand craft show.

A nurse tends to a patient at the Ethembeni Clinic in Zululand.

Tree-preneurs Project creates jobs and raises environmental awareness.


< 58 >

The BHP Billiton funding is used to establish these Green Teams that plant the trees, care for them for a year and remove alien vegetation in the areas being greened.

Project GreenThis initiative aims to ensure that all projects supported by the Hillside/Bayside CSI are supporting environmental sustainability. additional objectives include:

• identifying opportunities for environmental education

• raising awareness and understanding concerning environmental issues and risks

• taking action on environmental issues and risks

• ensuring sustainability and conservation of natural resources.

Business Against CrimeBusiness against Crime is a successful private/public sector partnership which coordinates a portfolio of projects promoting an effective, orderly criminal justice system. The smelters have been instrumental in installing CCTv cameras in the CBD, training of police reservists and crime prevention partnerships.

Rehabilitation of Offenders ProgramPhoenix Zululand is a community-based organisation working in the context of the criminal justice system but with a special emphasis on prisons. Ten central Zululand prisons and surrounding communities have been targeted. The aim of the project, supported by BHP Billiton, is to help rehabilitate past offenders in terms of accepted Restorative Justice codes and practices (see case study on Page 65).

COmmuNITY DEvELOPmENT IN mOZamBIQuESmall and micro enterprise developmentWith high levels of unemployment and few formal job opportunities, members of local communities surrounding the mozal smelter have little option but to try and make a living by running their own micro businesses. The mozal Community Development Trust (mCDT), which was established by the mozal shareholders in 2000, has committed resources to a small and micro enterprise program which aims to empower these entrepreneurs and strengthen their businesses.

One such program focuses on training single mothers and widows at Djuba village in the matola-Rio region.

Two groups of 40 women (widows and single mothers) attended training on raising chickens. On completion of the course each group received 700 chicks, plus equipment and tools to enable them to launch a chicken rearing business. With the profit earned from the fledgeling business, the women have increased production, and now produce some 2 000 chickens per month, which are sold at local markets.

another group of 20 poor women from Djuba attended a carpet-making and embroidery training course. On completion of the course each group received a starter kit of tools and material to help them establish their own businesses, and they are now selling their products in maputo.

Fifteen widows and single mothers from Djuba village received assistance in the form of training, material and equipment (including sewing machines, mosquito netting and insecticides) to start their own businesses making mosquito nets. malaria is rife in mozambique, and the nets help to prevent infection. The mCDT is already involved in a number of programs aimed at controlling malaria, and so the training supports the overall effort.

Mozambicans involved in carpet making, sewing and harvesting.


< 59 >

The mCDT is now able to purchase nets from the new entrepreneurs for wider distribution as part of the on-going efforts to eradicate malaria and improve the health of communities.

The project aims to:

• fight against malaria infection in the community• create a platform for social development, especially among

needy communities • create sustainable employment and improve people’s access to

economic opportunities.

Alleviating poverty and hungerBecause of its geographical location, mozambique is vulnerable to natural disasters such as floods, cyclones and drought. For the last four years, for example, the maputo and Gaza provinces have been experiencing a severe drought. The effects have been so harsh that many people can no longer earn enough to meet their basic needs, and people are struggling to survive.

This situation has brought with it many health problems including disease and malnutrition, particularly in children, along with social issues such as poor self-esteem and lack of dignity; factors that are all contributing to a decrease in life expectancy.

The mozal Community Development Trust (mCDT) was established to make a contribution to improving the quality of life in mozal's host communities. In this regard, its objectives are to:

• assist drought-affected people by mitigating hunger

• help them to minimise the negative effect that the hunger has brought upon them and their children.

To help achieve these objectives, the mCDT has embarked on a number of initiatives, including providing support to the Red Cross Society of mozambique and assisting with the development of sustainable farming through the establishment of the agriculture Development Program.

The mCDT has contributed $200 000 to the Red Cross of mozambique in support of the aid programs this humanitarian organisation is conducting for the people of the maputo and Gaza provinces. These funds are helping the Red Cross in its fight to alleviate poverty in the region.

When mozal was being established, the agriculture Development Program (aDP) was initiated, on the advice of the International Finance Corporation, to benefit the 650 farmers relocated from the project site. The program, which commenced in 2000 and was implemented over a four-year period, provided the farmers with plots on which to re-settle and has assisted them to move from subsistence farming to raising crops as a sustainable resource.

The aDP, using the expertise of specialist support organisations, has benefited the local communities by providing more land under sustained cultivation, improved agricultural production, and assistance with the sale of surplus produce, thereby enhancing the commercial potential of the farms.

Training and capacity building have been key components of the aDP. The National Institute for agricultural Research has been involved in providing the farmers with training in:

• management of a farmers association

• land preparation

• farming systems

• soil and plant nutrition

• the use and application of fertilizers

• pest and weed control

• crop marketing

• farm records

• finance and budgeting

• harvesting and storage.

Chicken rearing with help from the Mozal Community Development Trust.


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as a result, productivity increased from an average yearly production of 400 kilograms per family in 1999/2000 to around 2 tonnes per family in 2001/02.

after 2002, when the drought began to take its toll, the aDP assisted the farmers to diversify into crops that are resistant to drought, such as cowpeas, cassava and sweet potatoes. Through this support, the farmers have been able to harvest their crops during times of drought and help to alleviate hunger in their families.

COmmuNITY DEvELOPmENT IN SuRINamEBHP Billiton Suriname Sustainable Development Foundation was established in mid-2005 to initiate, implement, coordinate and manage sustainable projects in Suriname in partnership with key stakeholders. a key objective of the Foundation is to secure the participation and involvement of local communities in projects from the outset.

The Foundation selects projects which support capacity building and strengthening of local communities, create long term and sustainable income for communities, and contribute to socio-economic upliftment of the communities where BmS operates.

The Foundation has identified five focus areas for sustainable development: education, health, job creation, arts and culture, and environment.

Opening of a footbridge for St Angelina school along the Cottica river in Suriname (the previous bridge was washed away in a flood.)

Nassau Cultural houseThe Nassau bauxite exploration is located in an area controlled by the Paramacaners, a maroon tribe in Suriname. Seeking an opportunity to initiate a project that would add value to the lives of this community, BmS representatives visited their village, called ‘Nason’ situated on an island in the marowijne River, and spoke with the captains and villagers in the presence of the district commissioner. BmS selected a project to build a cultural house and employ eight young men of the tribe at the Nassau Bauxite Exploration.

Building the cultural house is a project where maximum involvement of the community was required. Together with the captain a design was drawn up and a list of necessary materials compiled. Community involvement in the construction project included provision of river sand, gravel and labour.

School of musicBmS contributed to the renovation and upgrading of the National School of music centre, and to assisting the school to take music education to the rural areas. This process will start in 2006 and will be implemented in 2007 and 2008 enabling children in rural areas to have music education for the first time.

Pedestrian footpathBmS financed the construction of a pedestrian pathway alongside a busy connector road situated close to its Onverdacht operations in Para district. The pathway will significantly improve safety


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for the many people – particularly school children – who walk alongside this road daily. The project was a partnership with the district commissioner of Para, who will be responsible for maintaining the path. The children from the primary school at ‘La vigilantia’ were instructed in how to use the foot path safely.

Supporting secondary education in Suriname BmS has committed itself to providing support for the Natuurtechnisch Instituut (Natin), the only secondary level technical education institution in Suriname. BmS will provide technical and financial support in order to improve the facilities and quality of teaching.

many graduates from the institute find jobs in the private and public sector at mid-level supervisory and specialist positions, and form the backbone of Suriname’s workforce. Some 20 per cent of NaTIN graduates enter the university after an intermediate course. NaTIN graduates hold the majority of positions as crew and shop foremen and field supervisors in Suriname’s bauxite and aluminium industries.

COmmuNITY aCTIvITY IN WORSLEYThere are two key objectives for Worsley’s community relations activities:

• to add value to the communities in which Worsley operates, and

• to be widely recognised as a responsible corporate citizen.

The first goal is achieved through the company’s pro-active work in its neighbourhood communities.

The second goal is achieved in the way that the company manages its operations, and how it interacts with neighbours and other stakeholder groups likely to be affected by operations.

Community relations activities are built around community consult-ation, research, information exchange and sponsorship programs.

Community consultationWorsley has established two liaison committees that provide an opportunity to share information and opinions between the company and representatives of local communities and community groups.

The refinery community liaison committee has been operating for nearly three years.

The committee initially provided important input into the development of Worsley’s air quality plan. more recently the focus has also been on the company’s plans to increase production at the refinery, on land management issues and the development of community partnerships.

at the mine, the community liaison committee has also been providing feedback on proposals to increase the rate of mining, as well as discussing plans to move to new mining areas.

The committees meet every two months.

Community informationWorsley alumina’s operations have a significant economic and social impact in surrounding communities, and require a strong commitment to manage environmental impacts.

This level of impact requires Worsley to be pro-active in sharing information about its activities with government, neighbours,

communities and special interest groups.

Information about mining, refining and shipping activities is provided through displays, brochures, newsletters, on the web and in the local media.

Worsley continues to conduct briefings and meetings with local landowners to discuss the rolling ten-year mining plans and other environmental matters.

a comprehensive Health, Safety, Environment and Community report is produced annually to provide the public with an overview of the company’s performance in each of these areas.

Each year Worsley joins other mining and industry operations to host a public open day for people to get a close-up view of the operations. about 400 people attended the Open Day at the refinery and the mine last year. In November last year, Worsley also participated in an Open Day at the Port of Bunbury, which attracted about 5 000 visitors.

Tours of the refinery, mine site and port facilities are held regularly for community, school and business groups.

Over the past year, Worsley has also been sharing details about its growth plans with state government agencies, local governments, business groups and the media as part of a widespread information campaign.

Community supportEvery year Worsley alumina gets hundreds of requests from community organisations seeking support for events, programs and special projects. most of these requests are referred to Worsley’s Community Involvement Committee (WaCIC) which is made up of employees.

The committee aims to ensure that sponsorship is spread across a range of categories, and that all neighbourhood communities benefit from the sponsorship program. most requests relate to sport, recreation and arts activities. Other groups to benefit include those involved in community events, health, education and the environment.

Requests for larger donations are dealt with at a management and corporate level.

Organisations to benefit from regular corporate donations include the Bunbury Regional Entertainment Centre, Collie Family Centre, the Boddington Rodeo, Bunbury Regional art Galleries and City of Bunbury Eisteddfod, Dardanup Bull and Barrel Festival, Harvey Harvest Festival, Bunbury Chamber of Commerce, St John ambulance sub centres and the South West Opera Company.

During the past year, the guidelines for community and corporate sponsorship requests have been reviewed. The guidelines aim to give community groups a clear understanding of the types of activities and projects that are considered for support, and also provide clear and easy steps to making applications.

The Smith FamilyWorsley has established an ongoing partnership with The Smith Family to bring the ‘Learning for Life’ program to Collie. The program helps with the education costs and support for disadvantaged children from primary school through to tertiary level.


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Worsley alumina – along with other industries operating from the Port of Bunbury – has joined forces to support an international research project that will examine the impact of human interaction on the local dolphin population.

The project aims to evaluate the impacts of dolphin tourism in order to implement procedures that ensure sustainable tourism. The results will provide a guide for the development of management policies for dolphin eco-tourism ventures across the world.

Contractors get involvedContractors involved in a construction program at the Worsley refinery left their mark on the local community through a number of significant fundraising efforts.

On one occasion, site project managers volunteered to take part in a head shave day as part of the celebrations for a safety milestone, and as a way to raise funds for the community. as a result, more than $15 000 was raised from employees and contractors.

about half of the money was given to the Riding for the Disabled Group in Collie which provides people with disabilities the opportunity to enjoy the experience of horse riding. The money was used for maintaining the group’s 13 horses, buying hay and building a shed.

Funds were also provided to the Bunbury Regional Hospital to buy a vital signs monitor, which allows nurses to simultaneously check blood pressure, heart rate, oxygen level and respiratory rate for paediatric patients.

Later in the year, contractors on site joined a major community appeal to help two young children battling a rare brain disease. a trial treatment involving gene replacement therapy in New York gave the family a glimmer of hope but the costs were enormous.

Contractors and employees at Worsley donated more than $20 000 to the family to help with the cost of the treatment.

In 2006, more than 100 ‘scholarships’ were awarded to families in Collie. The Smith Family is a national organisation with branches throughout australia and is supported by corporate sponsorship from BHP Billiton.

a full-time education support worker has been employed in Collie to work with local schools and families to identify children who would benefit from the scholarships.

Val Lishman Health Research FoundationThe val Lishman Health Research Foundation was established in the South West with a brief to undertake health research which aimed to provide direct benefits to regional areas.

Worsley has been a strong supporter of the Foundation since it was established. One of the key projects supported by Worsley has been research into Ross River virus, a debilitating disease spread by mosquitos. The South West is one of the worst affected regions in australia.

The company is also supporting a major research program – part of a world-wide effort – into cancer survival rates under different treatment regimes.

Youth FocusYouth Focus is a West australian, non-profit community organisation working with young people aged 12 to 18 who are showing early signs of suicide or self harm. Last year, Worsley provided funds for Youth Focus to conduct intensive research into this issue. The research was specific to the South West region.

The project is now moving into its second stage, with Worsley working with the Youth Focus group and local youth workers to identify ‘on-the-ground’ activities that address the main issues leading to self harm.

Dolphin Discovery CentreThe dolphins that visit Koombana Bay in Bunbury have attracted world-wide interest from tourists and researchers.

The vital signs monitor at Bunbury Hospital improves medical care for children.


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case study

EmPLOYEE INvOLvEmENT aT BHP BILLITON aLumINIum, RICHaRDS BaYEmployee involvement in uplifting communities in the Zululand region surrounding the Hillside and Bayside smelters is a key component of the sustainable development strategy.

an Employee Involvement programme serves to encourage employees to go out and get involved in community activities. The Company supports their initiatives in a number of ways, including through a matched Giving Programme, in terms of which the Company matches the employees’ contributions.

Gone are the days when employees would go away on costly team-building exercises and events which would involve spending time and money on entertainment. Instead teams select community projects in which they interface with the community and build spirit under very different conditions.

Employee involvement – which includes time, money, energy, expertise, and leadership – gives the Company the reach, the power and the talent to build stable and cohesive societies and to make a difference in the communities where our people live and work.

Over the past two years, as teams and as individuals, BHP Billiton employees have devoted thousands of volunteer hours participating in community projects such as school and playground clean-ups, doing maintenance and assisting at HIv/aIDS clinics, visiting patients in local hospitals and old age homes, delivering meals to the sick, and refurbishing and renovating creches and youth recreational facilities.

The benefits of employee volunteering include:

• employers demonstrate their commitment to helping the local community while developing skills and morale within their workforce

• employees feel an increased job satisfaction and pride in giving back to society

• departmental teams from the smelters have access to expertise and energetic volunteers to carry out much needed work

• helps to break down barriers in society and contributes to an increased understanding of social issues

• it is fun and can offer a welcome break from the daily work routine

• the smelters improve their public image

• increases employee commitment and motivation

• enhances the skills of employees

• improves levels of recruitment and retention – because employee volunteering creates a positive culture

• encourages innovation.

During 2005-2006, the following institutions benefited from employee involvement:

• Richards Bay Family Welfare Society

• Thuthukani Special School for Handicapped Children

• Bevies aids Orphanage

• Isibonela - Feed the Children Zululand

• Bhejane Junior Primary School

• mbuyewezulu Creche

• Thandakuphila aids Drop-Off Centre

• Ngwelezane Creche

• Phakamisani Creche

• Ethembeni Care Centre

• Khongisa Youth Orchestra

• SPCa

• aids Pin Project

The smelters also participated in Employee volunteer Week in march 2005 and march 2006. The CSI department actively encouraged teams of employees to participate by selecting a charity and completing a project. The support offered by the smelters included allowing employees to take time off work to do volunteer work, allowing access to company resources and matching volunteer hours with cash contributions to the institutions concerned.

Employees help out at the SPCA.


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case study

INNOvaTIvE RESTORaTIvE JuSTICE PROGRammE, ZuLuLaNDCrime is a huge social preoccupation in Central Zululand and South africa. The press and media are full of references to crime in the social environment from which the Company’s employees are drawn. Crime has a profound influence on the social commonwealth, and therefore the cohesiveness of communities and mental well-being of people.

Phoenix Zululand is a community-based organisation working in the context of the criminal justice system but with a special emphasis on prisons. Ten central Zululand prisons and surrounding communities have been targeted.

The primary objective of Phoenix Zululand is to address the corrosive social effects of crime, and to influence public attitudes to this burning social issue in the Zululand region of KwaZulu-Natal, where the Hillside and Bayside smelters are located. It does this by working with serving offenders in prisons, youth at risk and various community groups in five focus areas:

• developing program work to promote attitudes conducive to rehabilitation and re-integration among serving offenders

• developing victim-offender mediation

• challenging the public discourse relating to crime to promote a deeper understanding of how crime is a social phenomenon

• building a program for ‘Youth at Risk’ consistent with Child Justice legislation, and

• developing professional support programs for members of the Department of Correctional Services.

The program started work in three prisons and has since been expanded to ten prisons in Zululand.

During the first two years, about 360 serving prisoners participated in a variety of short-term courses. Program content is strongly orientated to therapeutic educational practices and has the primary aim of enabling offenders to face up to the actions in their past lives, to want to come face to face with their victims, and to re-vision hopeful and positive futures. Program facilitators are now being inundated with requests from prisoners for mediated meetings with victims.

a core of voluntary community victim-Offender mediators have been trained in a cluster of central Zululand towns to undertake restorative justice. They will form a core resource for the Parole Board of the Department of Correctional Services as parolees come to be reintegrated back into society.

There are several very distinctive and innovative aspects to the Program:

• Employees of the Program are serving or recently paroled prisoners. appointments have been made, and the Parole Board has been asked to parole the individual offenders in order that they can take up their employment. While awaiting parole, these individuals work as ‘Peer Tutors’ and as such, have accomplished some extremely impressive training in prisons. They are required, with training and support, to undertake leadership training under the difficult circumstances of prison existence.

• The Program is drawing in several people from the community as voluntary workers. These people are often established professionals with considerable levels of experience.

• a variety of ways are being found to integrate prison existence with life outside the walls and fences. The purpose of this is to enable prisoners and communities to grapple with the task of prisoner reintegration. an example of this kind of activity is in the collaboration of the Program with a community radio station to produce radio plays from within the prison walls, devised, enacted and produced by prisoners themselves about how youths are drawn into crime and possible ways out of crime.

The Program, supported by BHP Billiton, is strongly in line with the BHP Billiton Charter and Policy in that it sets out to be innovative in tackling social issues that affect the community.

Program participants.


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case study

CENTRE FOR ORPHaNS aND STREET CHILDREN IN mOZamBIQuEa mozal employee and his wife, working voluntarily and in their own time, have set up a centre which provides a home for 18 needy and abandoned children in mozambique.

The aim of the project, which was initiated by Emile muller, Business Improvement Superintendent at mozal, is to care for and assist orphans, abandoned children, children with family and social problems and children with HIv in mozambique.

The centre currently accommodates 18 children and has five mozambican educators who help take care of the children.

The centre operates from a house in matola which has three bedrooms, two bathrooms, a large kitchen, lounge and a big garden. a flat attached to the house accommodates the mozambican couple who act as managers of the centre.

Currently, four of the children in the centre are HIv positive. Future plans include the building of a permanent centre on 5 200m2 of land which has been acquired.

The project started in November 2004 in the rented property in matola which initially accommodated five children. By December 2005, 18 children were living in the centre, which is at maximum capacity.

The Directors of the centre are Emile muller and his wife Katy. They take responsibility for overall planning, financial and administrative management and liaising with social welfare organisations and local government.

a mozambican couple living on the premises provide day-to-day management, parenting and supervision. a number of local people provide assistance with caring for the children on a voluntary basis.

all of the children in the centre have been enrolled in school. One of the children, maria (12-years-old) has attended school for the first time and can now read and write. Two of the children have sponsorships for an international school.

another two, Chica and marina (aged 5 and 2) were brought to the centre by the police. They both had TB and had been living on the streets with their mother. They have both recovered and are living happily in the centre.

Their mother has recently started to volunteer and help as an educator at the centre. The children that are HIv positive receive daily care and treatment.

This project was started with minimum resources – the key

Betinho (centre) with his grandparents at the centre.

ingredients driving it were the willingness, vision, belief and perseverance by all involved to change the lives of the children in need.

The directors of the centre have engaged with social welfare and the police from the beginning to share their vision and build relationships, and as a result have been able to call on their help and assistance in times of need. With their help the grandparents of one of the boys (Bethinho) was located, though he will continue to stay in the centre as the grandparents are not able to look after him.

The centre where 18 needy and abandoned children are cared for.


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The number of young drivers killed on local roads is a major social issue among communities in the South West region of australia. Road statistics show that 34 per cent of serious injuries and fatalities on local roads occur among 17 to 24-year-olds – even though they represent only 13 per cent of drivers.

In 1998, Worsley responded to mounting community concern by initiating a program which has now become the benchmark for youth driver training in the state. Worsley used the expertise and knowledge from its own employee driver training program - introduced in 1984 - to improve driver safety. The company also promoted the establishment of a community committee to harness the skills and resources needed to run the youth driver training scheme.

The Youth Driver Development Program (YDDP) is aimed at 15 to 16-year-olds about to apply for learner driver permits. The comprehensive program provides practical training and aims to reduce crash risk through modifying young drivers’ attitudes, education and teaching an understanding of basic driving skills.

The program delivers 20 hours of training in safe, off-road locations by qualified instructors. It was rolled out in Bunbury, Collie and Busselton under the Road Skills australia banner. Other South West mining companies, private companies and local governments have since joined Worsley by providing financial support through the Wa Chamber of minerals and Energy. The program captured the attention of the state government, which granted further funds through the office of Road Safety.

The high visibility and success of the program has also attracted the attention of other communities in Western australia, and the program has now been rolled out in Kalgoorlie and mandurah. Worsley alumina has also hosted summer schools at its refinery near Collie in a bid to meet the growing demand for the course.

more than 2000 youths have graduated from the program and research from Edith Cowan university and feedback from students and parents suggests that it has a beneficial effect on modifying attitudes and behaviours of young drivers.

case study

YOuTH DRIvER DEvELOPmENT PROGRam IN WORSLEY

case study

ENERGY CHaLLENGE, SOuTH WESTERN auSTRaLIaSouth West australian schools have agreed to participate in a unique energy challenge which aims to reduce their electricity bills by 20 per cent over the next five years.

The schools will cut back on their use of energy from fossil fuels by installing wind turbines, and photo voltaic cells, and by focusing on energy saving practices. The use of biodiesel as an energy source is also being investigated.

The supply and installation of equipment for the energy challenge is being funded by Worsley alumina.

The initiative for the Worsley Energy Challenge came from the South West branch of the australian association for Environmental Education and has been supported by the four schools, and Edith Cowan and Curtin universities.

association spokesman Richard Jeffreys said that schools were actively teaching students about environmental sustainability, but few schools provided practical opportunities to implement what was being taught.

“By promoting this through local schools we hope that students will carry the energy efficiency message home to their families and to the general community.”

The equipment will be capable of generating between 3kW and 4.6kW of renewable energy at each school. It is expected that the 20 per cent target will also be achieved through additional energy conservation practices, technology and behaviours at each school.

The Energy Challenge is encouraging schools to reduce energy consumption.

Worsley alumina general manager Pete Wilshaw said that energy efficiency was a significant economic, environmental and social issue for the company, and that the project provided an opportunity for Worsley to extend its support for energy efficiency to neighbourhood communities.


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case study

OZ mOZ PROJECT, WORSLEY aND mOZamBIQuEThe Oz moz project is a shining example of the rewards that can be achieved through the co-operation of two BHP Billiton operations thousands of kilometres apart, and in two different cultures.

The Oz moz project grew out of an idea from a group of Worsley alumina employees who believed they could use existing BHP Billiton networks to forge closer friendships between australia and mozambique. Employees in mozambique quickly became enthused with the idea and began to help.

The Worsley employees developed an idea to send clothes, books and other donated goods to needy communities in mozambique in time for Christmas 2005. The plan was to fill a container to be transported on one of the many alumina cargo ships sailing from the Port of Bunbury to the matola harbour in mozambique.

Staff at the refinery and the Boddington bauxite mine rallied to a call to donate second hand, surplus goods to fill the large container. Worsley alumina’s logistics staff liaised with BHP Billiton colleagues in The Hague and with industry contacts to secure an agreement from an international ship owner to carry the container.

Bunbury trucking company, Giacci provided staff and a truck to transport the container while P&O loaded the container using alcoa-owned ship loading facilities.

Employees worked in their lunch hours and after work to sort through more than eight tonnes of donated goods in order to meet a November 24 deadline when the ship was scheduled to sail. although initially an employee project, Worsley contractors and the local community soon heard about the project and thousands of additional items were sent in trailer-loads to Worsley alumina to add to the container.

The container is on its way to Mozambique.

Worsley employees with donated items.

meanwhile, staff at mozal were liaising with trucking companies to transport the container to the mozal Community Development Trust. mozal employees then set about distributing 8 800 items of clothing, 2 400 books, 1 300 toys and 18 bicycles, as well as strollers, beds, wheelchairs, sewing machines, computers and a stove to orphanages and aged care centres.

The project has continued to foster relationships between the employees and the communities in the two countries, and many presentations on the project have been shared with company and community audiences. This has strengthened the ties between the employees of the two operations and raised awareness about community issues in mozambique.


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ECONOmIC

Socio-economic: Our people and our neighbours

Participants in the BHP Billiton Southern African Development Programme, which aims to develop a future generation of managers in the resources and processing industry.

Employees have the right to be represented by trade unions at all the operations. The level of union representation varies from operation to operation. Employees are engaged on staff contracts and are remunerated under a site-specific Staff Salary and Benefit Systems. The organisational culture is collaborative in nature and the structure promotes employee participation in various teams and committees, particularly with reference to HSE issues.

Regular interface meetings are held with unions, and management consults with union representatives over a wide range of issues. Where appropriate, union members are included in various organising committees to ensure union representation.

all five operations subscribe to the BHP Billiton code of business conduct, which specifies corporate governance standards. The code is communicated regularly to ensure a high level of understanding.

Training and educationall the aluminium operations have implemented documented training programmes specifically directed at employee development and capacity building. Training is targeted at meeting individual development needs identified through performance management programmes.

all the operations utilise talent management and succession planning systems, and offer traineeships and or apprenticeships depending on their operational requirements.

The socio-economic aspects of our operations relate to how we manage our people and contribute to the economies within which we operate.

Our priorities are:

• relationships with our employees and contractors: development of our leaders; diversity, including indigenous employment; training; remuneration and other benefits of our employees

• economic contribution to society: the payments we make to governments, including taxes and royalties, and the added value we provide as a result of our operations and their broader contributions through aspects such as payments to suppliers and employees.

Employee relations

Employee relations at BHP Billiton is the responsibility of local and business unit management. Each business is required to:

• implement employment arrangements that deliver outcomes consistent with the BHP Billiton Charter, Sustainable Development Policy and Guide to Business Conduct

• build open and productive relationships with employees and provide processes to address workplace issues in an equitable manner

• ensure that employees have the opportunity to develop skills that allow them to contribute to business success, and are recognised and rewarded for those results

• support fundamental human rights and freedom of association and ensure legal requirements governing employment are fully met

• respect local legislative requirements and other local standards and circumstances.

Employment practicesBayside and Hillside set Employment Equity targets to ensure that the employee race and gender profile reflects the demographics of the area. Both smelters run accelerated development and graduate development programmes to assist with meeting these targets.

mozal runs development programs to ensure that the workforce becomes more localised. Six percent of the current mozal workforce are expatriates.

all operations provide medical cover for employees and their immediate families.

all operations provide financial assistance for the education of employees and their family members.


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All operations prohibit discrimination on racial grounds.

School girls are hosted at Hillside and Bayside as part of a program to provide an insight into different career paths.

Left: Etelvina Mausse, Mozal's first female superintendent.

In addition to the above, Bayside provides adult basic education courses for Zulu-speaking employees who require it.

DIvERSITY aND OPPORTuNITYThere has been a marked increase in the number of women middle managers over the past three years at all aluminium operations. However, increasing the number of women in senior management positions, remains an objective.

Issues such as harassment, non discrimination and equal opportunity are covered within the BHP Billiton Guide to Business Conduct and as such, all operations are obliged to adhere to and report on adherence to these requirements.

Black Economic Empowermenta Black Economic Empowerment Procurement Policy has been implemented across aluminium CSG sites in southern africa since 2003. The Policy attempts to address the socio-economic imbalance by increasing the participation of previously disadvantaged groups. It has been rolled out to aluminium CSG sites throughout the country. In addition a central BEE Supply unit has been established.

The objectives of the Supply unit are to provide access by black suppliers to the Company’s procurement activities, and to ensure that all buying organisations within the Group have the support to successfully achieve legislated procurement targets.

The benefits of these objectives are being realised through increased understanding of the issues surrounding encouragement of BEE involvement, and closer monitoring and reporting of the engagement of BEE suppliers.


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HumaN RIGHTSStrategy and management

all aluminium operations have developed HR policies and procedures that are aligned with the BHP Billiton Charter and Guide to Business Conduct, and which protect and uphold human rights. a few examples of clauses relating to human rights are given below:

• no operation utilises child labour, nor uses suppliers that utilise child labour

• no operation utilises slave labour or prison labour, nor pays lower salaries or wages than the country’s specified minimum

• all operations permit freedom of association and prohibit discrimination on any grounds, for example race, gender, belief or sexual preference, etc.

all the operations endeavour to give business to local vendors, and these vendors are assessed to ensure their adherence to a number of criteria including adherence to health and safety standards and human rights issues.

Disciplinary practicesall operations have formal disciplinary and grievance procedures. Disciplinary sanctions are monitored to ensure consistency of application within the operation. No sanction impinges on the individual’s human rights. Examples of disciplinary sanctions, which depend on the seriousness of the transgression, are oral or written warnings, counselling, transfer to a lower status or position of responsibility, suspension or dismissal. No operation tolerates any form of punishment or retaliatory action.

SOCIETYBribery and corruptionThe BHP Billiton Code of Business Conduct specifically forbids any form of bribery; this includes the offering of a bribe to obtain a service, or the receipt of a gift, by an employee from a supplier, with the intention of obtaining preferential treatment.

With regard to the exchange of gifts the guide specifies that these must be moderate in nature, and the emphasis is on transparency. any gifts accepted should be declared to the next level of management, and the receipt should be recorded in a register.

Political contributionsBHP Billiton maintains a position of impartiality with respect to party politics. as a result BHP Billiton does not make any contributions to political parties, politicians or candidates for public office.

BHP Billiton will contribute to the public debate on issues that affect the company in the countries in which it operates.

This policy does not prevent individual employees from making personal contributions, in their private capacity, to political parties, nor from participating in political activities, provided that they do not use company resources, take place in company time, and provided that the individual makes it clear that he or she is participating in a personal capacity.

Respect for privacyThe following is extracted from the BHP Billiton Guide to Business Conduct:

“All employees are required to protect proprietary, commercial and other information that is confidential. These obligations of confidentiality continue after an individual’s employment with BHP Billiton ends.

Confidentiality provisions are included in contracts with consultants, contractors and other parties who provide services.

BHP Billiton will only collect personal information from its employees ethically and lawfully. People collecting personal information on behalf of the company must inform the persons involved why the information is being collected, and must ensure that the confidentiality of personal information contained in records is strictly maintained.

Personal information must not be disclosed unless it is a requirement for that person to do their job.”


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case study

ImPLEmENTING BLaCK ECONOmIC EmPOWERmENT aT HILLSIDEThe relationship between Hillside aluminium and Yandisa Tony’s Construction (YTC) highlights the success of BHP Billiton aSa’s strategy of transforming and growing Black Economic Empowerment (BEE) companies in its emerging market.

YTC was founded in 1995 as Tony marreiros Construction cc to provide engineering and construction services, including specialised and complex rigging. These services have been procured by Hillside and Bayside for the past ten years.

as part of BHP Billiton aSa’s BEE strategy, Hillside teamed up with the engineering company to help with its transformation. Hillside provided constant mentoring and support which allowed the engineering company to grow. Tony marreiros saw the benefits and in 2005 sold 51% of the company to black partners ambrose msiza and Dumisani Dlamini. This led to the establishment of Yandisa Tony’s Construction.

The two new partners were not ‘fronts’ for transformation, and brought a wealth of experience in their respective fields into the business.

ambrose msiza is the managing Director of YTC. a mechanical engineer by profession, he holds a Government Certificate of Competencies (mines) for mechanical Engineers and 17 years’ experience in engineering including management, maintenance, design and projects. Dumisani Dlamini is an experienced marketer and is the marketing Director of YTC.

In addition to its ownership profile, the company demonstrates employment equity in that 52 per cent of artisans employed are drawn from previously disadvantaged backgrounds.

Yandisa, the Zulu word for “growing together” is an appropriate name given the growth which the newly formed partnership is beginning to experience.

Ambrose Msiza, Mishanth Ardithpersad and Kersten Venter in front of the YTC mobile crane.

This year the business coming from Hillside, Bayside and surrounding customers has increased significantly. The government is also acknowledging their efforts by subsiding 75 per cent of their marketing costs, and 75 per cent of their ISO accreditation costs.

Future goals include a joint venture with Hillside aluminium to start a training centre, targeting scarce skills in the area such as boiler making and welding.


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case study

HELPING ZuLuLaND CRaFTERS TO BuILD CaPaCITY aND aLLEvIaTE POvERTYThe Hillside and Bayside smelters are strategic supporters of the Zululand Crafters association (ZCa) through the Community Social Investment programme.

The ZCa is a non-profit organisation formed in 1995 to help local crafters develop viable, income-producing businesses that can sustain their families and assist the advancement of women, the disabled, and young people in rural communities.

There are 76 groups of crafters currently affiliated to the ZCa. Through support from the smelters, the association operates with a management body, a coordinator, trainers and volunteers. It is located in a new centre which includes an exhibition area, conference room and training facility, and has other outlets thrughout Zululand.

a training program funded by the smelters enables the crafters to attend workshops that address topics such as business skills, production, pricing, packaging and customer care. To date, more than 1 100 people have attended the training courses.

In addition to providing financial support, the CSI team visits the centre on a regular basis, facilitates exhibitions, open days and monthly craft markets and actively seeks marketing opportunities.

The CSI team played an integral role in setting up a networking system for the ZCa, which links crafters with markets, businesses, community forums and government departments. Orders have been received from local governments, and from as far afield as the uK and Germany.

Zululand Crafters Association display of traditional craft items.

The smelters’ support of the ZCA is helping to keep traditional crafts alive while also providing opportunities for rural communities to become sustainable through self-employment.

Zululand crafters at work.


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The aim of the project is the production of tambaqui (fresh water fish) in net tanks, taking full advantage of the natural resources available in the region, thereby creating an additional source of food and income for local communities.

The project also has considerable environmental benefits as the preservation of the indigenous fish species ensures that the balance of local ecosystems is maintained.

The beneficiaries of the project are the families living in riverside communities neighbouring the mRN operation on the banks of the Trombetas, amazon and Inhamunda Rivers. most of these communities are engaged in small scale fishing, subsistence agriculture and collecting fruits and seeds from the forests.

The project involves 10 communities and benefits approximately 200 families which survive on an average monthly income of around $28 (20 per cent of Brazil’s minimum wage).

The project provides start-up equipment and training for the development of fish farming. Since 2003 mRN has employed a biologist, who specialises in fresh water fish farming, to provide training and advice for community members.

In the first phase of the project mRN supplies three pools for each community participating, fish fingerlings and a supply of fish food for the early stages of growth. Each tank has a capacity for 1 300 fish.

up until 2005 the catering company managing mRN’s canteens purchased the entire production, yielding revenue of $17 000 for the communities.

Since the beginning of 2006, when production almost doubled in relation to the first cycle, the fish are also being traded at the fish markets in surrounding towns and villages.

The project is a model for development and there has been growing interest from other communities and from local government who wish to replicate the project elsewhere

case study

FISH FaRmING aT mRN, BRaZIL

The project commenced in 2002 and has yielded 12 harvests to date.

mRN’s vision in supporting this project is to prepare the local people for the future by helping them to develop a means of support that does not depend on mining activities.

Fish farming (above and below) provides a source of income and protein for local communities.


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Since 2002, mozal has increased spending with mozambican companies from around $6 million per month to more than $15 million per month.

This significant increase is the result of a focused drive by mozal's operational areas and procurement department to award contracts to mozambican suppliers who comply with the Company's HSEC and business conduct principles.

In addition, mozal has continued to pro-actively support programs and initiatives aimed at building the capacity of small and medium enterprises (SmEs). One such initiative is the mozlink SmE Development Centre, which provides SmEs with training in safety, maintenance, quality and management.

Mozlink II Following a benchmarking exercise with the International Finance Corporation (IFC), a new strategy to build on the benefits being derived from the existing mozlink program was adopted in an effort to further accelerate the growth of the mozambican economy. The first step was to analyse the supply chain together with other big mozambican companies in order to identify materials and services currently purchased from outside mozambique that could potentially be provided from within the country. Then SmEs could be equipped and developed to manufacture the materials or deliver the services locally.

The mozlink II concept has been put into practice and five companies — Sasol, Cervejas de mocambique, Banco austral, Corridor Sands and maputo Port — have enthusiastically committed to join with mozal in advancing the program. meetings are currently being held on a monthly basis to further analyse the supply chain, to identify opportunities and find local SmEs that have the potential to become suppliers.

The range of commodities that can potentially be supplied by mozambican SmEs includes abrasives and welding consumables, adhesives and sealants, airconditioners, auto batteries, bearings, cleaning consumables, corporate clothing, corporate gifts, fasteners and springs, hand tools, office furniture and equipment, personal protective clothing and equipment, scrap recycling, signs and display boards, stationery, tyres and tubes.

case study

PROmOTING SmE DEvELOPmENT IN mOZamBIQuE

The first contract package under the enhanced mozlink program has been awarded to Faumil, a personal protective clothing (PPC) manufacturer. The PPC is made from a specialised material needed for hot metal work at mozal. Previously, the clothing was procured from outside mozambique. Through mozlink II, the existing supplier has transferred garment manufacturing skills to a mozambican SmE. although the material is still purchased outside of mozambique, the garments are tailored locally, boosting the economy by around $500 000 and further building capacity. It is anticipated that the value of the contract for the total project could grow to around $5 million per annum within two years.

The Global Linkages unit manager of the IFC, Sujata Lamba, has noted: “The IFC considers the mozal Linkages Program a pioneering program and an example of best practice in supporting supplier linkages, one which has been shared with colleagues from around the globe. However, we always note that the project would never have been successful had it not been for the commitment and participation of mozal and its parent BHP Billiton.”

Tailoring personal protective clothing at Faumil.


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Aluminium Customer Sector GroupEarnings Before Interest and Tax (EBIT)

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BHP BILLITON CSG COMPARATIVE PERFORMANCE 2006 ($ MILLION)

Revenue EBIT Capital Net expenditure operating assets

Aluminium 377 5,895

Carbon Steel materials 1,606 6,905

Petroleum 1,124 7,420

Base metals 861 9,419

Energy Coal 131 3,018

Stainless Steel materials 1,423 5,692

Diamonds and Specialty Products 202 1,630

5,084

9,760

5,876

10,294

3,319

2,955

1,263

1,191

4,503

2,968

5,400

327

901

345

Economic contributions

aLumINIumRecord annual production volumes for aluminium was achieved. underlying EBIT was $1,191 million, an increase of $232 million, or 24.2 per cent, compared to last year. Higher prices for aluminium and alumina had a favourable impact, with the average LmE aluminium price increasing to $2,244 per tonne (compared with $1,804 per tonne for the corresponding period).

Earnings from third party trading were also higher. Earnings were adversely impacted mainly by higher charges for LmE linked power, raw materials, fuel, labour and pot relining, in line with global supply pressures. Exchange rate movements in the period also had an unfavourable effect on EBIT, particularly on the earnings derived from our Brazilian operations. The write-down of $50 million of our interest in valesul to fair value, in line with the value achieved on its subsequent divestment, was also a factor.

Despite the higher costs, EBIT margins improved significantly in the second half of the year. This improved translation of rising aluminium and alumina price into higher net earnings, despite the current environment of rising costs, reflects an intensive focus on cost containment.

In august 2006, the aluminium CSG completed the sale of its 45.5% interest in valesul aluminium Sa Joint venture to its joint venture partner, Companhia vale do Rio Doce (CvRD).

DEvELOPmENT PROJECTSWorsleyIn 2004, we commenced the $192 million ($165 million BHP Billiton share) Worsley alumina Development Capital Project (DCP). The DCP, which is now mechanically complete, will result in a 0.25 mtpa increase in alumina production (0.215 mtpa our share) to 3.5 mtpa. Ramping up to full production is currently in progress and we expect the final costs to be close to budget.

SurinameThe joint venture is currently developing the Kaaimangrasie and Klaverblad deposits, which will replace the current Lelydorp and Coermotibo operations upon depletion. The Kaaimangrasie mine will be in operation as from 1 July 2006.

AlumarIn December 2005, we approved a project to expand the refinery, which will increase annual alumina production capacity by 2.0 mtpa (0.7 mtpa our share) to 3.5 mtpa (1.3 mtpa our share). We have estimated that our share of this investment will total $518 million.


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Site Name Nominee Category Project Case StudyBayside Jannie Kleynsmith Individual upgrading of Lock, Test & Tag System Excellence Jannie Kleynsmith was nominated for his excellent work in upgrading the Lock, Test and Tag system at Bayside, to align the organisation with the requirements of the Fatal Risk Control Protocols on Isolation. Jannie was responsible for revising current documentation, and developing supporting documentation and training materials that were practical, visual and user-friendly. This resulted in a high level of understanding and buy-in by employees and contractors during the rollout process.

mineração Rio do Norte (mRN) ademar Cavalcanti Filho Environment Implementation of the Brazil Nut (Bertholletia excelsa, Page 52 Lecythidaceae) Germplasm Bank at Saraca – Taquera National Forest

alumar Emanoel varao Environment Transforming a waste into product: Coal fine reuse at cement plants Page 50 as a secondary fuel

mozal Ramiro Roy Health Reducing dust and noise generation during metal Ladle Lifting Beam Page 24 (mLLB) test

mozal John Christowitz Safety Reducing road transport risks Page 36

mineração Rio do Norte (mRN) Jose Haroldo Paula Community Fish Farming Development Program Page 75

mozal Frans-Jozef Jaspers Community mozlink II: Joined Supply Chain analysis in mozambique Page 68

mozal Salvador Traquino Community Drought relief program to ensure sustainable food supplies and Page 60 alleviate poverty

valesul aluminium* Ladiera victor Environment valesul volunteer Program

valesul aluminium* Sebastiao Rodrigues Health management of Health risks at valesul's Horizontal Direct Chilled casting machine

HSEC aWaRDS

BHP Billiton holds an annual awards function to recognise individual and team efforts globally in the areas of health, safety, environment and community work. The Aluminium CSG was well represented with 66 submissions to the awards. The table at the bottom of the page lists the Aluminium CSG winners.

Aluminium 66

Base Metals 111

Carbon Steel Metals 111

Corporate 8

Diamonds & Specialty Products 10

Energy Coal 21

Petroleum 25

Stainless Steel Materials 13

Total 365

HSEC AWARD NOMINATIONS PER CSG

* Valesul was still part of BHP Billiton during the reporting period.

Aluminium CSG Award recipients at the 2005 HSEC Awards function.


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STaTISTICS FOR THE FINaNCIaL YEaR 2006

BMS Worsley Bayside Mozal Hillside Aluminium CSG

Production tonne 4,908,613 3,211,988 176,494 557,393 700,089

Revenue uS$ million 5,084

EBIT uS$ million 1,191

Capital investment uS$ million 377

Net operating assests uS$ million 5,895

HSEC Management Standard Score (0-5) 3.3 3.8 3.9 4.2 4.2 3.9

FRCP % compliance 90.4 82.3 88.0 96.0 87.9 88.9

Land in use ha 311,502 273,967 150 140 144 585,903

Land rehabilitated during year ha 78 112 0 0 0 190

Total energy consumed GJ 1,427,556 35,368,519 14,077,229 37,141,394 47,147,198 135,161,896

Electricity GJ 93,960 282,056 10,396,152 28,627,120 35,431,331 74,830,619

Coal & Coke GJ 16,443,116 2,810,894 7,412,693 10,268,480 36,935,183

Natural gas GJ 11,165,915 820,315 1,036,982 1,397,149 14,420,361

Distillate & others GJ 1,333,596 7,477,432 49,868 64,599 50,238 8,975,733

Water consumed ml 764 6,498 1,096 519 404 9,281

Waste (excluding mineral waste) ton 1,189 6,988 43,002 22,230 48,272 121,682

Waste recycled % 8 42.8 76.4 80.7 80.8 76.3

Greenhouse gas emissions tonne CO2 eq

Including electricity 121,370 2,550,605 4,120,288 9,422,747 11,579,490 27,794,499

Excluding electricity 97,410 2,253,600 1,096,740 1,097,026 1,274,878 5,819,654

Sulphur dioxide tonne 0 10,576 4,021 11,946 11,161 37,704

Fluoride tonne 20 357 249 354 980

Environmental complaints 4 24 12 0 1 41

Environmental spending uS$ thousand 3,310 6,462 104 211 207 10,296

Total employees 2,243 2,738 1,019 1,126 1,079 8,205

CIFR 1.60 5.29 1.54 1.15 0.75 2.10

TRIFR 2.70 8.10 4.25 2.30 3.20 4.12

Occupational illnesses 8 0 3 0 3 14

Number of HSE professionals 37 22 11 17 10 97

Training hr/employee 40.7 119.4 0.0 0.0 32.0 55.2

Community contributions "1" uS$ 339,204 504,195 4,579,620 2,730,315 4,579,620 8,153,333

arts 52,238 9,750 44,164 78,512 44,164 184,664

Community Welfare 13,670 39,176 664,254 1,128,636 664,254 1,845,736

Education 202,252 27,510 1,930,644 186,259 1,930,644 2,346,665

Environment 9,874 76,859 97,162 119,907 97,162 303,802

Health 6,450 15,082 501,785 485,901 501,785 1,009,218

Sport/recreation 8,731 139,299 13,580 79,172 13,580 240,782

Other 45,989 196,519 1,328,031 651,927 1,328,031 2,222,466

Notes: 1 Note that the community contribution for Hillside and Bayside are combined into a central fund for the two smelters.

$ uS dollar, unless otherwise indicated

aaC australian aluminium Council

aEIa air Emission Impact assessment

anode Effect (aE) an ‘anode effect’ is a process upset condition of an aluminium electrolysis cell due to too little

alumina dissolved in the electrolyte. The anode effect is accompanied by release of CF4 and C2F6.

aSa aluminium Southern africa

BEE Black Economic Empowerment

BmS BHP Billiton maatschappij Suriname

CIFR Classified Injury Frequency Rate

CO2eq Carbon dioxide equivalent. The global warming potential equivalent to that of carbon dioxide

CSG Customer Sector Group

CSI Corporate Social Investment

EBIT Earnings before interest and tax

EBITDa Earnings before interest, tax, depreciation, impairments and amortisation

FaFR First aid Frequency Rate

FRCP Fatal Risk Control Protocols

FTC Fume Treatment Centre

FY Financial Year

GHG Greenhouse gas

GJ Gigajoules

GWh Gigawatt hours

ha Hectares

HSEC Health, safety, environment and community

IaI International aluminium Institute

IFC International Finance Corporation

IuCN World Conservation union

JSa Job Safety analysis

Jv Joint venture

km Kilometres

LmE London metal Exchange

ml megalitres

mCDT mozal Community Development Trust

mRN mineração Rio do Norte

mWh megawatt hours

NGO Non governmental organisation

PFC Perfluorocarbon (CF4 & C2F6)

PJ Petajoules

Protected area management Categories 1a: Strict Nature Reserve; 1b: Wilderness area; 4: Habitat/Species management area

Sa South africa

SmE Small and medium enterprises

SOx Oxides of sulphur

SPL Spent pot lining

TRIFR Total Recordable Injury Frequency Rate

vOC volatile Organic Compound

GLOSSaRY

ALUMINIUM AT WORK

Body sheet for ships, aeroplanes, cars and high speed trains; gearboxes, motor parts

Aluminium makes a key contribution to fuel efficiency in cars, trucks, high speed rail andsea travel. By reducing weight it cuts down on fuel consumption and emissions, withoutcompromising the size or safety of the vehicles. And as it reduces the weight of cars, trucks,ships and trains, they can carry more while causing less wear and tear on road and railinfrastructures.

Canada's LRC trains, France's TGV (high-speed) trains and the latest version of the Japanese‘Bullet Train’ all have passenger cars made of aluminium. Fast ferries, with speeds of 35-50 knots, built of aluminium are revolutionising transport over short sea routes.

Foil wrap, beverage cans, bottle tops, cosmetics and pharmaceutical containers

Aluminium is used extensively for the protection, storage and preparation of food andbeverages. Aluminium can be rolled into ultra-thin foils which are light, strong and haveunique barrier and insulation qualities to preserve food, cosmetics, pharmaceutical productsand protect from ultra-violet light, odours and bacteria. Aluminium packages are secure,tamper-proof, hygienic, easy to open and recyclable. Aluminium withstands both heat andcold. It is easy to sterilise for food and medical applications. It's an excellent barrier againstliquids, vapours and light. It transmits conducted heat, and reflects radiant heat. Less thanan ounce of aluminium sprayed on a polymer forms a thin insulating sheet that can keep anew born baby warm or save the life of someone on an exposed mountain top.

Roofs, walls, windows, doors, facades, staircases, heating and air-conditioningsystems, solar panels, shelving

Aluminium's formability, high strength-to-weight ratio, corrosion resistance, and ease ofrecycling makes it the ideal material for a wide range of building applications. It allows ahigh degree of prefabrication with a variety of finishes before components leave the factory,thus reducing the work load at the construction site. Aluminium's resistance to corrosionis particularly important when a component is installed in an inaccessible area.

Components for TV sets, air conditioners, radios, saucepans

Components for fridges, washing machines, kettles, cutlery

Around half the cookware sold globally each year is made of aluminium. It loses only aboutseven per cent of the heat it receives, leaving 93 per cent of the heat to cook your food.Using aluminium cookware, you only need a quarter of the energy required to heat stainlesssteel or cast iron, thus saving on energy bills.

Sports and leisure

Aluminium is used in the manufacture of a wide range of sports equipment and leisure itemssuch as tennis racquets, baseball bats, golf clubs, indoor and outdoor furniture, bicycles.

High tension power lines, wires and cables

Aluminium or aluminium alloy electrical conductors are now widely used in overhead lines,electrical energy distribution and transport cables, and energy cables for industria l use.

Aluminium is particularly suited to these uses because of its high electrical conductivity, lowweight and good resistance to corrosion. Almost all electric lights, motors, appliances andpower systems depend on a vast grid of aluminium wire. Around the world most high-voltageoverhead transmission and distribution lines and many underground lines are made ofaluminium. Aluminium replaced copper in high-voltage transmission lines after 1945 andtoday is the most economical way to transmit electric power.

The information in this section is courtesy of the International Aluminium Institute.

For more information, visit www.world-aluminium.org

ALUMINIUM FACTS AND FIGURES

Aluminium can be recycled again and againwithout loss of quality. It has a low meltingtemperature and is therefore able to berecycled with comparatively little energy. Theenergy required to produce secondary ingotfrom scrap is only about 5 per cent of thatrequired to produce primary aluminium.About 30 per cent of the world's annualaluminium usage is supplied from processingscrap (post consumer scrap 50 per cent, newscrap 50 per cent).

Aluminium used in the construction ofbuildings has a very long life cycle of between30 and 50 years. Aluminium stored in suchlong life products is therefore in effectwarehoused for future use. As almost allaluminium used in construction is recycled,the considerable energy invested in theproduction of primary aluminium can bereinvested into other aluminium products.Scrap may not necessarily be recycled backinto its original product or even reused in

the country in which it was firstmanufactured, but the original energyinvestment will not be lost. Aluminium istherefore effectively an energy bank – theoriginal energy input can be recovered againand again every time the product is recycled.Three quarters of all aluminium everproduced is still in productive use (516 Mtof 706 Mt).

Alumina is found in bauxite ore, which isformed by the weathering of clay in warmregions that experience wet and dry weathercycles. It is found close to the earth’s surface,and is mined by open cut excavation.

Over 90 per cent of global bauxite mined isused to produce alumina. The remainder is usedin the refractory, abrasive and chemicalindustries. Bauxite is also used in the productionof high-alumina cement, as a catalyst in the oilindustry, in welding rod coatings, and as a fluxin making steel and ferroalloys.

In 1900 annual output of aluminium was1 000 tonnes. In 2000 it reached 32 milliontonnes, comprising 24 million tonnes ofprimary aluminium and eight million tonnesfrom recycled metal. This makes aluminiumthe world’s second most used metal.

Socio-economic impactsThe aluminium industry employs more thanone million people world wide directly. Indirectemployment in downstream and serviceindustries is approximately four million.

The Aluminium industry can have a significantimpact on the economy of developingcountries. For example, in Suriname, thealuminium industry generates $350 millionannually, accounts for 70 per cent of thecountry’s exports and is the major source offoreign currency. The industry directly supports2 500 workers with a multiplier of four.Average wages are about four times thecountry average, and some 90 per cent of theworkforce is Surinamese.

Abundant natural resources7.3 per cent of the earth’s crust is made upof aluminium compounds.

The known reserves of high quality bauxite,the ore from which aluminium is produced,are sufficient to provide over 300 years ofsupply.

The use of mineral resources for theproduction of aluminium is fairly modest –beween four and five tonnes of bauxite arerequired to produce one tonne of alumina,and two tonnes of alumina are required toproduce one tonne of aluminium metal.

However the largest known and most rapidlygrowing stock of aluminium is ‘metal in use’.This represents a permanent asset for society,because aluminium is not bio-degradable anddoes not rust away.

EnergyProduction of primary aluminium requiressignificant energy. Due to technology andprocess improvements the average energyconsumption and subsequent emissions pertonne of production has fallen by 70 per centover the past century, and by 40 per centsince the 1950s.

More than 55 per cent of the world’s primaryaluminium is produced using hydro-electricpower, which is clean, CO2 free and renewable.

AviationThe Wright brothers’ first aeroplane, which flewin 1903, had a four-cylinder, 12 horsepower auto

engine, modified with a 30-pound aluminiumblock to reduce weight – otherwise it wouldnever have got off the ground.

Aluminium comprises about 65 per cent ofthe structural weight of the Airbus A380.

WaterAluminium sulphate is widely used in thepurification of waste water as well as waterfrom rivers, lakes and reservoirs. It is aflocculating agent with the capacity tocoagulate and trap solid matter which maybe floating in the water; such as algae andother organic and non-organic matter.

MedicineAluminium hydroxide is widely used as anantacid to relieve gastric irritation and assistin the healing of peptic ulcers. It has goodacid neutralising capacity and also has theability to absorb and reduce the activity ofpepsin.

Productline

Scrapcollection

Secondarysmelting

Bauxiteextraction

Aluminarefining

Processing:Rolling &extrusion

Powergeneration

Primarysmelting

Aluminium production and life cycle

RECYCLING ALUMINIUM

Manufacturingindustry

ALUMINIUM AT WORK





Aluminium is used extensively for the protection, storage and preparation of food andbeverages. Aluminium can be rolled into ultra-thin foils which are light, strong and haveunique barrier and insulation qualities to preserve food, cosmetics, pharmaceutical productsand protect from ultra-violet light, odours and bacteria. Aluminium packages are secure,tamper-proof, hygienic, easy to open and recyclable. Aluminium withstands both heat andcold. It is easy to sterilise for food and medical applications. It's an excellent barrier againstliquids, vapours and light. It transmits conducted heat, and reflects radiant heat. Less thanan ounce of aluminium sprayed on a polymer forms a thin insulating sheet that can keep anew bor n baby warm or save the life of some one on an expose d mountain top.


Aluminium's formability, high strength-to-weight ratio, corrosion resistance, and ease ofrecycling makes it the ideal material for a wide range of building applications. It allows ahigh degree of prefabrication with a variety of finishes before components leave the factory,thus reducing the work load at the construction site. Aluminium's resistance to corrosionis particularly important when a component is installed in an inacce ssible area.




Sports and leisure



Aluminium or aluminium alloy electrical conductors are now widely used in overhead lines,electrical energy distribution and transport cables, and energy cables for industrial use.








Global Aluminium Consumption4540353025201510

50

1950 1960 1970 1980 1990 2000 2002Primary Consumed Used Scrap Utilized Total Consumption

















Productline

Scrapcollection

Secondarysmelting

Bauxiteextraction

Aluminarefining


Powergeneration

Primarysmelting


RECYCLING ALUMINIUM


ALUMINIUM AT WORK





Aluminium is used extensively for the protection, storage and preparation of food andbeverages. Aluminium can be rolled into ultra-thin foils which are light, strong and haveunique barrier and insulation qualities to preserve food, cosmetics, pharmaceutical productsand protect from ultra-violet light, odours and bacteria. Aluminium packages are secure,tamper-proof, hygienic, easy to open and recyclable. Aluminium withstands both heat andcold. It is easy to sterilise for food and medical applications. It's an excellent barrier againstliquids, vapours and light. It transmits conducted heat, and reflects radiant heat. Less thanan ounce of aluminium sprayed on a polymer forms a thin insulating sheet that can keep anew bor n baby warm or save the life of some one on an expose d mountain top.


Aluminium's formability, high strength-to-weight ratio, corrosion resistance, and ease ofrecycling makes it the ideal material for a wide range of building applications. It allows ahigh degree of prefabrication with a variety of finishes before components leave the factory,thus reducing the work load at the construction site. Aluminium's resistance to corrosionis particularly important when a component is installed in an inacce ssible area.




Sports and leisure



Aluminium or aluminium alloy electrical conductors are now widely used in overhead lines,electrical energy distribution and transport cables, and energy cables for industrial use.
























Productline

Scrapcollection

Secondarysmelting

Bauxiteextraction

Aluminarefining


Powergeneration

Primarysmelting


RECYCLING ALUMINIUM


Reducing environmentalimpacts in the transport sectorThe rapid growth in the world’s vehicle fleet isresulting in an ever-increasing use of energy,which in turn results in increasing CO2 emissions.As a result vehicle manufacturers and theirsuppliers, seeking to find ways of reducingenvironmental impacts, are turning to thealuminium industry which helps to meet thischallenge by reducing the weight of vehicles.

Life-cycle assessments have shown that onekg aluminium in a car body, replacing two kgof steel, saves about 20 kg of greenhousegas emissions (in CO2 equivalents) during thelife of a car.

Moreover, if 1000 kg of greenhouse gas issaved by the use of less petrol in a light-weight vehicle, this also means a reductionof other potential environmental impacts,including:

• 15 800 MJ of crude oil resources• 933 kg of water• 1.8 kg ethylene equivalents of ozone

forming hydrocarbons• a saving of 2.1 kg SO2 equivalents of

acidification potential.

The global use of aluminium in the automotivesector has increased from 3.9 million tonnesin 1991 to nearly 7.7 million tonnes in 2003.This has the potential, over the lifespan ofthe vehicles, to reduce overall GHG emissionsby 155 million tonnes CO2 equivalent(assuming that all the aluminium was usedto replace denser materials).

The GHG savings of light-weight buses, long-haul trucks and trains, which typically covermuch greater distances than passenger cars,is therefore much greater.

TRANSPORT SECTOR CASE STUDY

Overview of Results - USCAR AMP Project Sullivan, Williams,et al., Society of Automotive Engineers Total Life CycleConference,December 1998, page 12, Graz, Austria.

Materials Assembly Vehicle Use Maintenance End of Life0

10 000

20 000

30 000

40 000

50 000

60 000The International Aluminium Institute isengaged in a full life-cycle analysis for themain applications of aluminium. Below is asummary of the study report on theautomotive industry.

The substitution of aluminium for higherdensity traditional materials saves 2.5 metrictons of CO2 equivalents (878 litres of gasoline)over the lifetime of today's average NorthAmerican passenger car or light truck. If theuse of aluminium to replace traditionalmaterials continues to grow from the presentaverage of 113 kgs to 227 kgs the potentialsaving per vehicle would increase to 5 metrictons of CO2, the equivalent of 1 756 litres ofgasoline.

Study report summaryThe report concluded that:• Each kilogram of automotive aluminium

replacing traditional higher densitymaterials can save a net 20 kgs of CO2

equivalents due mainly to the efficienciesof lightweighting. The magnitude of thissaving is influenced by a critical set offactors such as the average distance avehicle is driven over its lifetime, fuelssavings that result from lightweighting,and the substitution rate of aluminiumfor other heavier materials. The impactof these factors was evaluated using amulti-parameter sensitivity analysis andthe CO2 savings were positive under allsets of assumptions.

• Recovering and re-melting aluminiumautomotive scrap saves more than 95 percent of the greenhouse gas emissionsassociated with primary aluminium ingotproduction. The aluminium industry isworking closely with the automobile

manufacturers to enable the easier dismantlingof aluminium components from cars in orderto improve the recovery of aluminium.Recycling rates for transport applicationsrange from 60-90 per cent in somecountries. In 1997 over 4.4 million tonnesof aluminium was used in the transportsector and the use of aluminium inautomobiles is increasing year upon year.

Improvement in vehicle operation representsthe largest opportunity to minimise thegreenhouse gas implications of automotive andother transportation products. The followinggraph compares CO2 emissions throughout avehicle’s life, from its materials and assemblyto the vehicle's use followed by its maintenanceand end-of-life processing.

Hand-planting programsre-establish tree, shrub

and groundcover species

The land profile is re-established bygrading pit walls in mined areas. Stored

topsoil is used for the final layer

Worsley's mining lease covers the eastern jarrah forestand private land near Boddington. Rehabilitation workaims to re-establish a self-sustaining native forest.Specific goals include preserving recreation, conservation,landscape and hydrology values.

Initial earthworks loosen compacted areas and beginshaping the pit to reflect the surrounding landscape.The entire area is then contoured and ripped to loosenthe clay base, improve water drainage and promoteroot growth.

Scrapers spread gravel overburden from newly minedareas or stockpiles. Topsoil, which contains organicmatter and native seeds, is spread as the final layer.

Forest litter including logs, leaves and rocks, collectedbefore mining, is then distributed over the topsoil.This helps re-establish habitats for soil conditioninginvertebrates like ants and for reptiles, which arequick to move into rehabilitated areas. It also provideshabitats for burrowing animals once rehabilitationcover has been established.

The last stage in preparing the area for seeding isscarification, which involves "scratching" the topsoilto encourage growth. Locally collected seeds arespread by hand, and seedlings are planted.

Land Rehabilitation

Swamp

The bauxite mining process commences with dredgingwhere required.

Primary stripping is conducted by a bucket wheelexcavator.

A dragline is used for secondary stripping.

Secondary strippingDredging

Bauxite Bauxite

Primary stripping

Bauxite

A layer of topsoil and gravel overburden is removedfrom the bauxite ore by scrapers and excavators. Thisoverburden is directly backfilled into previously minedareas, or stored for later use.

The hardcap layer of bauxite ore is drilled and blasted. Large bulldozers rip into the softer layers of oreexposed by the drilling and blasting. The bauxite layervaries from two metres to 12 metres deep. The minedbauxite is transported to the refinery.

Bauxite

Bulldozers rip up the softerlayers of bauxite ore exposedby the drilling and blasting

Bauxite

Scrapers and excavators expose the layer ofbauxite

Drilling and blasting

Bauxite

BAUXITEMINING

Before mining begins, flora and fauna surveys are undertaken, land contours mapped, water qualityanalysed and soil hydrology and composition recorded so that the land can be rehabilitated to itsnatural state after mining is complete.

Forest timber is salvaged and milled or used as firewood.Commercial timber is harvested, and stumps, logs and forest floorlitter are set aside to be used later in the rehabilitation process.

Pre-mining Preparation

When the bauxite arrives from the mine it is finely

ground in a mill and mixed with hot caustic soda to

form a slurry. The slurry is heated to remove any

contaminants that can form scale on the inside ofthe pipes.

ALUMINAREFINING

Bauxite storage

Rod Mill

HopperMill

Digestion

Alumina is extracted from bauxite using the Bayer Process,which dissolves alumina in solution, and separates itfrom the red mud residue. There are four main stagesin the process: digestion, clarification,precipitation and calcination.

Slurry Mixer

LimeSteam

CausticSoda

Digesters

Blow Offand HeatExchanger

The clarification stage separates the alumina dissolvedin the liquor from the red mud residue. This is doneby settling. Liquor is pumped into settling tanks wherea settling agent is added.

Clarificationon the type of process. (The gibbsitic bauxite minedat Worsley does not require the higher temperaturesused for other forms of bauxite.)

The alumina is dissolved into the slurry in digestervessels through a combination of pressure and heat.The temperature and the pressure at which the slurryis put into the digesters depend on the bauxite and

PrecipitationThe mud bonds with the settling agent and sinks tothe bottom of the tank where it is removed. Thefloating liquor is then filtered and sent to precipitationtanks. The red mud residue is washed to recover any

This stage marks the beginning of the ‘white side’ ofthe process, where the alumina hydrate-rich solutionin the liquor has been cleaned of all mud and is nolonger red. The alumina hydrate slowly precipitatesfrom tank to tank as the temperature lowers.

alumina not in solution, which is returned to theprocess. The caustic soda is also washed from thered mud before it is stored in specially built bauxiteresidue disposal areas.

Thickenerand Washer

Filter

Mud

Red Mud Disposal

Heat Exchanger

Precipitators

Filter

Seed

ClassifyingThickeners

CalcinatingKiln Alumina

Calcination

Washed and filtered hydrate is dried in hotair at about 6000C before being passed intoa gas furnace where it is heated to 9000C.The extreme temperature removes watertrapped in the hydrate crystals.The final product resembles a fine whitepowder, which is approximately 99 per centalumina. The calcined alumina is cooled andthen conveyed using air slides to storagesilos ready for rail loading.The refined alumina is transported by rail tothe port, from where it is shipped to smeltersaround the world.

The introduction of alumina hydrate, which has already beenprecipitated, speeds up the process. The liquor is filtered toseparate the wet hydrate to be washed, removing final tracesof caustic soda and other impurities.

The hydrate is then calcined to remove the chemical boundwater. The remaining liquor is recycled back to the beginningof the refinery to begin the process again.

Holding Furnace

Mozal and Hillside cast primary aluminium ingots. Hillsidealso produces T-bar in horizontal casters. Bayside castsa number of value added products for specific industries:rod, billet, rim alloy and slabs.

Casting

Redraw Rod

Wheel Alloy

Extrusion Billet

Rolling Ingot

Remelt T-Bar

Casting Wheel

Conveyor

Molten aluminiumIngots

Ingot

Launder

Cooling Tunnel

Robot stacks ingots

Ladle

DC Current

GAS TREATMENT CENTREHot gases from Pots are sent to the

GTC which traps impurities andfluoride

Pot

Aluminium

Electrical energy passes through transformers toreduce the voltage and increase the current, andthrough rectifiers to convert the alternating current(AC) to direct current (DC). The electricity then entersthe potlines where the pots are connected togetherin series.

The electrical charge passes from the anode throughthe electrolyte into a negatively charged cathode,generating enormous heat due to the resistance ofthe electrolyte. The alumina is reduced to moltenaluminium which collects at the bottom of the pot,

and is then siphoned out at 32 hour (Hillside andMozal) or 48 hour intervals (Bayside). Moltenaluminium that has been siphoned from the pots isstored in holding furnaces before casting.

PotPot

Ladle

Pot TendingAssemblyMolten

aluminium issyphonedinto ladle

Pot - Cross Section

Anode

CoverBath

Feeder addsflourinated

alumina

Molten aluminiumCathode

Electrolyte

ALUMINIUMSMELTING

Alumina, coke and liquid pitch are shipped to Richards Bay (Baysideand Hillside) and Matola harbour (Mozal). The alumina and cokeare transported to silos at the smelters, while the liquid pitch istransported to storage tanks.

CokeRecycledAnodes

CoolingTunnel

Carbon anodes play a key role in the smelting process, and aremanufactured on site. Coke is sorted, graded and blended withliquid pitch and used anodes which have been crushed for recycling.The paste is moulded in a vibro-compactor.

Paste fed into Vibro-Compactor Mould

Making AnodesRaw Materials

Vibro-CompactorMould

Top of mould

Silo

Pitch

Reduction

AC Current

The ‘green’ anodes pass through a cooling tunneland are baked for 20 days in a gas-fired furnace at11000C.

Ano

des

Baking Furnace

FUME TREATMENT CENTREFumes from the baking furnace aresent to the FTC where dust, flouride

and tars are removed.

Reduction is an electrolysis process wherebyfluorinated alumina is converted into moltenaluminium in containers called pots, which arearranged in long lines. The electrolyte, known asBATH, contains alumina powder, aluminium tri-fluorideand cryolite.

The anodes are then connected to an aluminium stemwelded to an iron hexapod. The rodded anodeassemblies are transported to Reduction in aspecialised vehicle and installed in the reduction pots.

Anodes

Molten cast iron AluminaSilo

Transformersand Rectifiers

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