Expansion Projects manages a broad range of environmental issues from conceptual stage through to engineering design, construction and eventual handover to RTIO Pilbara operations. In each of these phases, Expansion Projects carefully evaluates and manages the activities which may have an impact on the environment.

This is the second year that Expansion Projects has reported environmental data within the RTIO Pilbara Operations Sustainable Development Report.


Environmental Management System

Environment Policy

In early 2006, Expansion Projects in coordination with RTIO Pilbara operations reviewed and revised the environmental policy. The new policy provides an overview of the breadth of activities undertaken by Expansion Projects and has been endorsed by the Managing Director Expansion Projects. The policy is available by clicking here.

Iron Environment Management System (IEMS)

Expansion Projects operates under the AS/NZS:ISO14001 certified environmental management system known as the Iron Environmental Management System (IEMS). The system is used to facilitate identification and management of environmental risks and opportunities during all stages of project execution. There is close alignment with systems used by Pilbara operations, ensuring a smooth transition from construction to operation. In 2006, IEMS was successfully re-certified.

Rio Tinto Environment Standards

The Rio Tinto Environment Standards set the benchmark for all work which Expansion Projects completes. There are 10 Environment Standards that are discussed in the general Environment section of this report. In addition, Rio Tinto has developed a Closure Standard which addresses the social, environmental and economic requirements associated with closure. Expansion Projects regulates the standards requirements at all stages of project development.

Sustainable Development

Expansion Projects have implemented the RTIO Sustainable Development decision-making methodology which is applied during pre-feasibility studies to assess various project options. The methodology requires the identification of relevant stakeholders and their interests as well as setting minimum acceptable criteria for relevant social, economic and environmental indicators. Each of the project options is then assessed against each indicator and scored. Scores range from 0 (unacceptable) – 100 (desired) with a minimum score of 50 required (acceptable). The assessment is performed by a multi-disciplinary team and includes environmental, community and financial specialists as well as mine planners, engineers, geologists, hydrogeologists and a management representative.


Environmental Risks

Regulatory Fines and Prosecutions

There were no environmental-related fines or prosecutions associated with the Expansion Projects activities in 2006.

Environmental Incidents

In 2006, Expansion Projects recorded a total of 165 incidents, of which 7 were Category II incidents, with the remaining being Category I.

Incident Category Number of Incidents 2006
Category I 158
Category II 7
Category III 0
Category IV 0
TOTAL 165

The majority of incidents recorded involved hydrocarbon spills, non-conformances with internal procedures and effluent spills. The hydrocarbon spills were mainly attributed to hose and part failures of mobile equipment and spillage during re-fuelling.

Significant Incidents

Incidents rated as Category II or above are considered significant. In 2006, Expansion Projects recorded 7 significant incidents, as listed below.

Dampier Port Upgrade

Brownfields Mine Expansions – Tom Price

Yandicoogina Junction South East

Lang Hancock Railway

Paraburdoo Sustaining Works



Dust

The Rio Tinto Environment Standards require that baseline dust conditions and potential impacts of activities are measured by sensitive receptors. Sensitive receptors include nearby towns, National Parks, and workforce accommodation.

One of the challenges for Expansion Projects is the reliance on water for dust management. To meet the water targets and control dust, Expansion Projects have had to employ a number of water efficient dust control technologies including pressure sealed enclosures and dry dust-extraction systems. In response to community concerns, the causeway conveyor at Dampier was covered. Smarter ways of using water e.g. sprays at key points and wider conveyors are being investigated. Expansion Projects also liaise with RTIO Pilbara operations to share knowledge and learnings on effective dust management.


Water

Expansion Projects promote the maintenance or improvement of water quality (upstream and downstream), minimisation of freshwater use and the maximisation of reuse and recycling.

When a new project commences, whether it is an upgrade to an existing facility or a completely new mine, understanding the amount of water available and the water requirements of the project are fundamental. Almost all water is sourced from groundwater reserves and detailed groundwater operating strategies and water management plans are developed to ensure water resources are managed responsibly. An example is the groundwater re-injection system at Yandicoogina Junction South East.

Some of the steps that Expansion Projects are taking to ensure sound management of water resources include:

Biodiversity


Intensive baseline environmental studies are undertaken early in the development phase for each project. These studies identify rare or priority species, endemic communities and environmentally sensitive areas. Project teams evaluate options to ensure that the project designs minimise impacts to significant flora, fauna, and vegetation communities. Study findings lead to development of management plans and strategies for the protection of biodiversity. Some of the plans developed for various projects include:

Expansion Projects follows the established ground disturbance procedure used by operations to ensure that biodiversity is protected.

Marine Biodiversity

Works at the ports (Dampier and Cape Lambert) include construction of seawalls, land reclamation and dredging in close proximity to sensitive areas such as the proposed Dampier Archipelago/Cape Preston Marine Park. In 2006, an Artificial Reef was completed as part of the Dampier Port Upgrade Phase B Project. The Artificial Reef which is located within King Bay, Dampier, was built to offset corals impacted by seawall construction. Work is conducted under a strict set of permit, licence and ministerial conditions specific to each project.

In order to ensure this area is protected, the following management plans have been developed and subsequently approved by both Western Australian and Commonwealth Government environment agencies:

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Greenhouse Gas Emissions

Rio Tinto through its Greenhouse Gas Emission Environment Standard has mandated that greenhouse gas evaluations must be completed for all projects. This facilitates identification of efficiency opportunities. In addition, when evaluating various options for a project's development, the different greenhouse gas performance of the option is evaluated as part of a sustainable development review.

All projects are required to account for carbon-tax costs of CO 2 emissions as a part of project financial forecasting. In the absence of legislative requirements, an internally derived carbon tax is used in project financial modelling.

Expansion Projects generate emissions during the construction and commissioning phases of the project. In 2006, greenhouse gas emissions were 116kt CO 2 -e, predominantly from land clearing and fuel (diesel) combustion.


Emissions, Effluents and Wastes

When upgrades or new mines are being planned, the projected emissions, effluents and wastes are areas of specific management attention. Expansion Projects ensure that appropriate treatment systems are designed and constructed, for example:

These systems aim to minimise emissions and use best available technology where practicable.


Management of sewage

During construction, all projects must manage sewage. To ensure we continue to improve our management of sewage, an external consultant was commissioned to complete a review of all current wastewater treatment plants. This review looked at legal requirements, design, operational and maintenance requirements and monitoring. The review identified improvement opportunities that are being implemented across the projects as well as some design specifications that will be used in future wastewater treatment plants.


Targets and Plans

2006 Performance against targets

2007 Plans

 

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