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 if people don’t believe our business behaviour is consistent with that? Will they want to work for us? Will they want us as their neighbours? Will they want to buy our products? Will they want to invest in our business? Will they trust us to care for their environment and resources? Will they elect people that will support us? What are the implications of being unsustainable for our business?

The Response Rio Tinto Policy: “Rio Tinto businesses, projects, operations and products should contribute constructively to the global transition to sustainable development” Comalco Core Purpose: “To create the most sustainable value from our resources and relationships”

The Journey Environment & Communities Market Position Health & Safety Operational Excellence People Commitment Financial Strength Strategic Map VisionPurposeBusiness Results ‘To create the most sustainable value from our resources and relationships The world’s preferred aluminium business from mine to market

What does it mean - Safety Reducing LTIFR from 9.25 in 1997 to 0.86 in 2003 for Comalco managed sites (The Goal is ZERO) – NZAS 2003 Performance – 0.43 Achieving at least a NOSA *** rating across all sites – NZAS 2003 performance ***** rating – Best 5 star smelter in Australasia and S.E. Asia Implementing and complying with RioTinto Safety Standards – Winner of Rio Tinto CEO’s annual safety award Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Safety Plant Safety Performance Year Number of Injuries First Aid CasesRecordable Injuries (LTI + MTC)LTIs Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Safety Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Safety Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Safety Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Health Continuing to reduce the number of respiratory illness cases Developing and implementing Health Standards Applying more effective pre-employment screening Focusing on workplace hygiene Developing a programme to deliver 5-year occupational health targets for Rio Tinto Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Environment Environmental Management Systems (ISO14001) Identifying priority areas for re-using, reducing or recycling the resources we use and the wastes we generate – Developing viable solutions to problematic waste streams – Imaginative solutions for using resources more effectively Anticipating changing expectations – Moving “beyond compliance” to eliminate incidents Understanding the life cycle inventory of our operations Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Environment 1997 : 85 kg per car 2002 : 117 kg per car Each 100 kg of automotive aluminium replacing other heavier materials saves about 2 tonnes of CO² over the car’s life time from enhanced fuel efficiency kg

What does it mean - Greenhouse Understanding the GHG debate – positive participation Reducing on-site GHG emissions per tonne of Al by ~50% since 1990 Investing in R&D to reduce the GHG intensity of our processes Working with industry groups and governments in policy formulation Promoting recycling and the life cycle benefits of Aluminium usage Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Greenhouse Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength A high aluminium end-of-life products recycling in the main applications: 95 % in automotive 92 to 98 % in building For aluminium cans 40% in 1997 and 46% in 2002 Market share of aluminium cans 45% in 1997 and 50% in 2002 Aluminium the recyclable material

What does it mean - Greenhouse NZAS Site CO 2 - e / tonne Al FuelProcess C PFC's tonnes CO2 - e / tonne Al , 083 tonnes , 653 tonnes 1990 – 4.48 t CO 2 e / t Al 2003 – 2.09 t CO 2 e / t Al Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Greenhouse DC KW Hr / Kg Al Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength How significant is this ?

What does it mean - Greenhouse Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength Enough electricity to power the whole of Bluff – a township of 2,200 people

What does it mean - Communities Understanding what is important to the needs of our communities where we operate and following up with action Building capacity Communicating about our activities and listening to feedback Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean - Communities Positive participation in the kakapo recovery programme. Resolving long-standing community issues Regional Needs Analysis survey Public tours – open doors Building a national profile New Zealand Business Excellence Award Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean – Our People Surveys to determine what is important to our employees and following up with action Employment and training Equal opportunities Role-based training Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean – Our People Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength Employer of choice Culture of trust, understanding, contribution where our people work to the maximum of their potential and ability “The Way We Work” NZAS average age of our people is now ~ 45 years with more than 15 years of service.

What does it mean – Markets Working with our customers and suppliers to enhance SD (our performance and theirs: e.g. safety, environment, assurance) Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

What does it mean – Markets Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength NZAS produces the highest quality, highest purity aluminium from any of the 200 smelters across the world 90% of product is value added Shipping to markets across the world

What does it mean – Bottom Line Delivering positive value to shareholders Delivering positive value to New Zealand – Electricity sales – Wages – Taxes – Goods and services Delivering value via business improvement – Six Sigma – One Comalco Competing in a global commodity market Environment & Communities Market Position ‘Sustainable value’ Health & Safety Operational Excellence People Commitment Financial Strength

Working for a sustainable future NZAS is a true world-class aluminium smelter competing in a tough global market. NZAS creates wealth for all stakeholders NZAS is recognised for – World class safety performance – Environmental excellence – Supplier of choice : purest aluminium anywhere in the world – Value adding use of New Zealand’s sustainable energy resources – Excellence in business performance – Sustained improvements across our business – An example for others to follow

Working for a sustainable future As we say…….. New Zealand Aluminium Smelters………. Creating value for New Zealand

Sustainable Development in Comalco New Zealand Aluminium Smelter’s Contribution to Sustainable Development David Bloor Manager-Health, Safety, Environment & Community Relations