Sustainable Development Report 2012
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Sustainable Development Report 2012 Pantone 298C 65c 0m 0y 0k 35r 196g 244b #23c4f4 Pantone 135C 0c 20m 100y 0k 255r 203g 5b #ffcb05 Pantone 425C 0c 0m 0y 70k 110r 112g 114b #6e7072 Pantone Cool Grey 6C 0c 0m 0y 40k 167r 169g 172b #a7a9ac Pantone 185C 0c 91m 90y 0k 230r 13g 46b #e60d2e About this report This sustainable development report covers the 2012 Links calendar year, which coincides with Richards Bay Minerals’ Stakeholders can download copies of this and previous financial year. reports from our website: www.rbm.co.za Richards Bay Minerals (RBM) comprises the following Rio Tinto’s “The way we work” and other policy and privately held companies: guideline documents are available online at: • Richards Bay Mining Proprietary Limited www.riotinto.com/library • Richards Bay Titanium Proprietary Limited Readers can find an index of the International Council on • Tisand Proprietary Limited Mining and Metals’ Ten Principles on page 50. In this report, Richards Bay Minerals, RBM, “we” and “our” Readers can find our Global Reporting Initiative content refer to all three companies collectively. Where we mention and index on pages 51, 52 and the inside back cover. Rio Tinto or Blue Horizon, we refer to Rio Tinto International Holdings Limited and Blue Horizon Investments 41 Feedback Proprietary Limited respectively. We value your feedback. If you have any comments or queries regarding this report, please contact: Our report seeks to reflect the fact that we have been operating in a sustainable manner and will continue to Communications Department do so in the future. In it we share our successes and Richards Bay Minerals challenges, and offer a candid view of our performance and Richards Bay strategy going forward. South Africa PO Box 401 Our ownership structure has changed significantly in the 3900 past year, with Rio Tinto now holding a majority stake. We Tel.: +27 35 901 3111 have also taken this opportunity to restructure our report Fax: +27 35 901 3442 slightly and improve its quality, depth and comparability. E-mail: [email protected] Minor restatements compared to last year’s report are www.rbm.co.za noted where applicable. This report conforms to Rio Tinto’s internal standards and has been compiled according to the following international reporting guidelines: • the International Council on Mining and Metals’ Ten Principles; • the Global Reporting Initiative’s reporting standards, and specifically the Mining and Metals Sector supplement (G3.1 MMSS); and • the King Code on Corporate Governance Principles for South Africa (King III). Our reporting will continue to evolve. We are aware of proposed new reporting guidelines and will incorporate them as they come into effect. We believe this report represents a Global Reporting Initiative (GRI) Application Level C Report. External assurance has been sought only for those elements requiring it by law. The RBM board has approved the content of the report and is satisfied that it fairly represents RBM’s 2012 sustainability performance. 1 RICHARDS BAY MINERALS SUSTAINABLE DEVELOPMENT REPORT 2012 About this report ........................................ IFC Social well-being ........................................ 22 Occupational health and safety ..................... 23 RBM highlights and recognition .................. 2 Employer of choice ....................................... 24 Company overview ....................................... 4 Diversity and equal opportunity ..................... 29 2012 Organic growth from Day One ........................ 4 Communities ................................................ 32 Ownership and structure ................................ 5 Product responsibility ................................... 34 Board of directors ........................................... 6 Geographic location ....................................... 7 Environmental stewardship ........................ 36 Essential products .......................................... 8 Biodiversity ................................................... 37 Market dominance .......................................... 9 Energy and greenhouse gas (GHG) Production process ...................................... 10 emissions ..................................................... 39 Mining rights and life of mine ........................ 11 Water ........................................................... 40 Air quality and emissions .............................. 42 Strategic intent ........................................... 12 Waste management ..................................... 42 Determining our material issues .................... 12 Distribution network ..................................... 44 Sustainability governance ............................. 13 Business strategy ......................................... 14 Governance ................................................ 46 RBM’s board of directors ............................. 48 Managing director’s report ........................ 16 RBM board committees ............................... 48 Economic prosperity .................................. 18 Board-level concerns ................................... 49 Financial performance .................................. 19 Local spend .................................................. 19 Appendices ................................................. 50 Broad-based black economic Appendix 1: ICMM principles index ............... 50 empowerment scorecards ............................ 20 Appendix 2: GRI content index ..................... 51 Pantone 298C 65c 0m 0y 0k 35r 196g 244b #23c4f4 Sustainable development report Pantone 135C 0c 20m 100y 0k 255r 203g 5b #ffcb05 Pantone 425C 0c 0m 0y 70k 110r 112g 114b #6e7072 Pantone Cool Grey 6C 0c 0m 0y 40k 167r 169g 172b #a7a9ac Pantone 185C 0c 91m 90y 0k 230r 13g 46b #e60d2e 2 RBM highlights and recognition 3 RICHARDS BAY MINERALS SUSTAINABLE DEVELOPMENT REPORT 2012 A significant economic contributor, both Leading the way in skills development and locally and nationally diversity • Largest mineral sands producer and beneficiation • Progressive leadership and cultural development company in South Africa programme • Directly and indirectly, contributed R5.8 billion • Historically disadvantaged South Africans represent (or 0.83 per cent) of government revenues over the 68 per cent of the workforce past five years • Women occupy 34 per cent of management and • Major employer and largest single tax payer in 10 per cent of core mining positions KwaZulu-Natal, representing 3.5 per cent of KwaZulu- • Bursaries, study grants and apprenticeships available Natal’s gross geographic product to previously disadvantaged individuals Sought-after production capabilities and Important community investor products • Productive union and community relations and forums • Capable of producing up to 2 million tonnes of product • Spent R61.3 million on corporate social investment annually (CSI) and local economic development (LED), primarily • One of the world’s lowest-cost titanium feedstock education and health programmes producers, supplying 14 per cent of the world market • Constructed two clinics in our host communities • Supplier of 25 per cent of the world’s high-purity pig • Committed R30 million to the Bambisanani Learning iron, and the second-largest zircon producer worldwide Community Programme and science centre Ongoing investment in the business • To date invested in excess of R1 billion in • Rio Tinto share of RBM increased to 74 per cent community projects • Successfully converted all mining rights World-class environmental management • Furnace 1 rebuild completed successfully • Best-practice dune forest rehabilitation programme • Investing in technology to maintain zircon and rutile • Improved water treatment capabilities allow us to reuse quality grades water up to 21 times • High-performance Organisation Programme • Implemented real-time emissions monitoring technology implemented to optimise our logistics • Re-use of waste gas (CO) from the smelter plant as an • Zulti South pre-feasibility study well under way to energy source in the production process allows us to sustain production past 2034 reduce our GHG emissions Zero-harm safety culture Not without our fair share of challenges • A Lost time injury frequency rate (LTIFR) of 0.26, our • Global demand remains subdued, while competing second-best safety performance ever supply streams have come online close to • OHSAS 18001, ISO 14001 and ISO 9001 certified lucrative markets • Critical control monitoring plans for material risks • Mined zircon and rutile quality on the decline developed and monitored • Host community growth and unemployment rates on the increase • Still seeking suitable solutions for managing radioactive tailings “ ‘Responsible beyond mining.’ Our mission is to be the safest, most reliable and sustainable industrial minerals supplier in the world, to the benefit of all our stakeholders.” overview Founded in 1976, RBM this year celebrated its 37th year of commercial operations in South Africa. Today we are an award-winning organisation and continue to mine and beneficiate the mineral-rich sands of the KwaZulu-Natal seaboard around Richards Bay. Organic growth from Day One Company RBM started operations in the Tisand area in 1977 with one dredge mining plant and two furnaces, producing approximately 400 000 tonnes of titania slag a year. In 1986 an additional mining plant and furnace were added, increasing output to 750 000 tonnes per year. During the early 1990s a fourth furnace and mining