Sustainable Development in Comalco New Zealand Aluminium Smelter’s Contribution to Sustainable Development David Bloor Manager-Health, Safety, Environment & Community Relations
What is Sustainable Development? • A standard definition – • “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Bruntland A mining & metals definition – “ensuring that our businesses create a valuable legacy rather than leave a costly liability behind” building capacity for diversified economic activity • education and skills development • better public health • environmental protection • • What does it mean to us ?
What does it mean to us? What if people don’t believe our business behaviour is consistent with that? • • • Will they want to work for us? Will they want us as their neighbours? Will they want to buy our products? Will they want to invest in our business? Will they trust us to care for their environment and resources? Will they elect people that will support us? What are the implications of being unsustainable for our business?
The Response Rio Tinto Policy: “Rio Tinto businesses, projects, operations and products should contribute constructively to the global transition to sustainable development” Comalco Core Purpose: “To create the most sustainable value from our resources and relationships”
The Journey Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength Business Results ‘To create the most sustainable value from our resources and relationships Purpose Vision Strategic Map The world’s preferred aluminium business from mine to market
What does it mean - Safety Health & Safety • Environment & Communities People Commitment – • Market Position NZAS 2003 Performance – 0. 43 Achieving at least a NOSA *** rating across all sites NZAS 2003 performance ***** rating – Best 5 star smelter in Australasia and S. E. Asia – Operational Excellence Financial Strength • ‘Sustainable value’ Reducing LTIFR from 9. 25 in 1997 to 0. 86 in 2003 for Comalco managed sites (The Goal is ZERO) Implementing and complying with Rio. Tinto Safety Standards – Winner of Rio Tinto CEO’s annual safety award
What does it mean - Safety Plant Safety Performance Health & Safety First Aid Cases Environment & Communities 200 People Commitment Recordable Injuries (LTI + MTC) LTIs 180 185 Operational Excellence Financial Strength ‘Sustainable value’ Number of Injuries 160 Market Position 140 120 100 80 60 61 40 54 52 48 45 28 15 20 0 1997 1998 1999 12 3 2000 Year 11 18 5 5 4 6 4 3 1 2002 2003 2004
What does it mean - Safety Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean - Safety Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean - Safety Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean - Health • Continuing to reduce the number of respiratory illness cases • Developing and implementing Health Standards Market Position • Applying more effective pre-employment screening Operational Excellence • Focusing on workplace hygiene Financial Strength • Developing a programme to deliver 5 -year occupational health targets for Rio Tinto Health & Safety Environment & Communities People Commitment ‘Sustainable value’
What does it mean - Environment Health & Safety • Environmental Management Systems (ISO 14001) Environment & Communities • Identifying priority areas for re-using, reducing or recycling the resources we use and the wastes we generate People Commitment Market Position Developing viable solutions to problematic waste streams – Imaginative solutions for using resources more effectively – Operational Excellence Financial Strength • Anticipating changing expectations – ‘Sustainable value’ • Moving “beyond compliance” to eliminate incidents Understanding the life cycle inventory of our operations
What does it mean - Environment kg 300 1997 : 85 kg per car 2002 : 117 kg per car 250 200 150 100 50 0 1995 2000 2005 2010 Each 100 kg of automotive aluminium replacing other heavier materials saves about 2 tonnes of CO² over the car’s life time from enhanced fuel efficiency 2015
What does it mean - Greenhouse Health & Safety • Understanding the GHG debate – positive participation • Reducing on-site GHG emissions per tonne of Al by ~50% since 1990 • Investing in R&D to reduce the GHG intensity of our processes • Working with industry groups and governments in policy formulation • Promoting recycling and the life cycle benefits of Aluminium usage Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean - Greenhouse Health & Safety A high aluminium end-of-life products recycling in the main applications: Environment & Communities 95 % in automotive People Commitment Market Position Operational Excellence Financial Strength 92 to 98 % in building ‘Sustainable value’ Aluminium the recyclable material For aluminium cans 40% in 1997 and 46% in 2002 Market share of aluminium cans 45% in 1997 and 50% in 2002
What does it mean - Greenhouse Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ tonnes CO 2 - e / tonne Al Health & Safety NZAS Site CO 2 - e / tonne Al 2. 50 2. 25 2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0. 25 0. 00 1990 - 264, 083 tonnes 2003 - 333, 653 tonnes 1990 2003 Fuel 1990 – 4. 48 t CO 2 e / t Al 2003 – 2. 09 t CO 2 e / t Al Process C PFC's
What does it mean - Greenhouse Health & Safety DC KW Hr / Kg Al Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ How significant is this ?
What does it mean - Greenhouse Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ Enough electricity to power the whole of Bluff – a township of 2, 200 people
What does it mean - Communities Health & Safety • Understanding what is important to the needs of our communities where we operate and following up with action • Building capacity • Communicating about our activities and listening to feedback Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean - Communities • Positive participation in the kakapo recovery programme. People Commitment • Resolving long-standing community issues Market Position • Regional Needs Analysis survey • Public tours – open doors • Building a national profile • New Zealand Business Excellence Award Health & Safety Environment & Communities Operational Excellence Financial Strength ‘Sustainable value’
What does it mean – Our People Health & Safety • Surveys to determine what is important to our employees and following up with action • Employment and training • Equal opportunities • Role-based training Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’
What does it mean – Our People Health & Safety • Employer of choice • Culture of trust, understanding, contribution where our people work to the maximum of their potential and ability Operational Excellence • “The Way We Work” Financial Strength • NZAS average of our people is now ~ 45 years with more than 15 years of service. Environment & Communities People Commitment Market Position ‘Sustainable value’
What does it mean – Markets Health & Safety Environment & Communities People Commitment Market Position Operational Excellence Financial Strength ‘Sustainable value’ • Working with our customers and suppliers to enhance SD (our performance and theirs: e. g. safety, environment, assurance)
What does it mean – Markets • NZAS produces the highest quality, highest purity aluminium from any of the 200 smelters across the world Market Position • 90% of product is value added Operational Excellence • Shipping to markets across the world Health & Safety Environment & Communities People Commitment Financial Strength ‘Sustainable value’
What does it mean – Bottom Line Health & Safety • Delivering positive value to shareholders Environment & Communities • Delivering positive value to New Zealand People Commitment – Electricity sales Market Position – Wages Operational Excellence – Taxes Financial Strength – Goods and services ‘Sustainable value’ • Delivering value via business improvement – – • Six Sigma One Comalco Competing in a global commodity market
Working for a sustainable future • • • NZAS is a true world-class aluminium smelter competing in a tough global market. NZAS creates wealth for all stakeholders NZAS is recognised for – – – – World class safety performance Environmental excellence Supplier of choice : purest aluminium anywhere in the world Value adding use of New Zealand’s sustainable energy resources Excellence in business performance Sustained improvements across our business An example for others to follow
Working for a sustainable future • As we say……. . New Zealand Aluminium Smelters………. Creating value for New Zealand
Sustainable Development in Comalco New Zealand Aluminium Smelter’s Contribution to Sustainable Development David Bloor Manager-Health, Safety, Environment & Community Relations
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