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Ways to View This Report Sustainability Report 2015 Ways to view this Report: Continue here to view online version Print from your own printer Contents Glossary Print Contents Arrium Sustainability Report 2015 Contents Glossary Print Arrium Limited is an international diversified mining and materials company with three business segments: Arrium Mining Arrium Arrium Consumables Mining Steel supplies resource companies with a includes the Company’s export iron ore includes both the Steel and Recycling range of key mining consumables, business and a wholly‑owned port at businesses. The Steel business is including grinding media and rail wheels. Whyalla, both in South Australia. The Australia’s only manufacturer of steel Through its Moly‑Cop brand, it is the business was restructured during the long products with steel‑making largest supplier of grinding media in financial year to focus on its lower cost capacity of approximately 2.5 million the world with leading market positions Middleback Ranges operation. Export tonnes per annum. It is also Australia’s in North America, South America and sales of hematite iron ore for the year leading steel distributor and reinforcing Australasia. were 12.5 million tonnes. In addition, steel supplier. The Recycling business Arrium Mining also supplies iron ore to has operations focused on the southern the Company’s integrated steelworks and eastern coasts of Australia, as well at Whyalla. as non‑ferrous operations in Asia. Arrium Sustainability Report 2015 / Page 1 Contents Glossary Print Milestones 2015 financial year July August September/October November – Jim White Scholarship launched – Mr Jerry Maycock joined – Raised ~$750 million from fully – 2014 Annual General Meeting 2014 Arrium Board underwritten capital raising – 2 014 Safety Excellence Awards – M r Peter Smedley retired as – F Y14 results announcement Chairman – C ommenced construction of Moly-Cop La Joya, Peru facility – Mr Jerry Maycock appointed Chairman January/February March/April May June – Announced re-design of – First ores railed from Iron Knob – Celebrated golden jubilee of – Celebrated 100th anniversary 2015 Arrium Mining Whyalla Steelworks of steelmaking and steel related – C ompletion of sale of Wire Ropes activities in Newcastle – 1 H15 results announcement to Bekaert – M r Douglas Ritchie joined Arrium Board – Whyalla reheat furnace upgrade – “Swear by Safety” campaign completed launched in Whyalla – Successfully refinanced ~A$200 million of FY17 maturing – A nnounced Strategic Review and debt facilities for four-year period further restructuring of Mining business – Moly-Cop Kamloops, Canada expansion commissioned Arrium Sustainability Report 2015 / Page 2 Contents Glossary Print Where we do business In addition to our Australian operations, Arrium operates 13 key facilities overseas, with the majority of these Mining Consumables and Recycling sites in North America, South America and Asia. North and South America Australia x Darwin Edmonton x Broome x Cairns Kamloops Canada Townsville x Port Hedland x Asia x Karratha Mount Isa x x Mackay Kansas City Emerald x x Rockhampton USA x Gladstone x Bundaberg Sunshine Coast x El Salto Ipswich x Mexico Toowoomba x x Brisbane China x Geraldton x Gold Coast Hong Kong x Moora x Kalgoorlie x Merredin Lismore x x x Northham x Coffs Harbour Perth Tamworth x x Port Macquarie Bangkok Manila Dubbo x Whyalla xx Port Hexham Philippines Adelaide x Newcastle Thailand Mandurah x x Wagin x Esperance x Mildura Orange x Albany x x Gosford Bunbury x Chipping Norton x x Lima Adelaide Wetherill Park x Sydney Wagga Wagga x Wollongong x Peru Arequipa Malaysia Shepparton x Canberra Bendigo x Albury x Mejillones Mt Gambier x Ballarat x x Somerton Melbourne x Santiago x Key Geelong Chile Cilegon Iron Ore Mine Sites Devonport Talcahuano Key Mining Consumables Sites x Indonesia x Key Steel Sites x Launceston Key Recycling Sites x Hobart Tasmania Arrium Sustainability Report 2015 / Page 3 Contents Glossary Print Introduction by Managing Director and Chief Executive Officer I am pleased to introduce Arrium’s Sustainability Report for the financial year This is reflected in our decision to move to the next level in sustainability reporting ended 30 June 2015. through adoption of the Global Reporting Initiative G4 reporting guidelines. Our Recently I reported that this was a very challenging year for the Company due to report includes many noteworthy achievements in the year, with the following few external factors, including a significant and sharp fall in iron ore prices. We have, that I would like to highlight: and we continue to respond to these challenges with speed while maintaining – Supporting the communities in which we operate, such as through the our commitment to conducting our business to global environmental, social appointment of a local indigenous business, Walga Mining, to provide services and commercial standards. This remains integral to our continued growth and at our Iron Knob mine site; development as a business – it is our platform for providing value to our wide – G enuine progress in Arrium’s quest for diversity, including promotion of the role range of stakeholders. of women through the “Women at Arrium” program; and We are committed to our two core values of Safety and Customer, and we have – Translation of Arrium’s commitment to World Class Safety into initiatives such strengthened our commitment to diversity and inclusion. It is no coincidence that as Whyalla’s award-winning “Swear by Safety” campaign. our core values are also two of Arrium’s five sustainability drivers – the others being Economic, Community and Our People. Our Sustainability Report presents I hope that you find this year’s Sustainability Report informative and I encourage achievements and challenges for each of these drivers while also demonstrating you to provide feedback through the online feedback facility. progress in our drive for continuous improvement in Sustainability. Andrew Roberts Managing Director and CEO Arrium Limited Arrium Sustainability Report 2015 / Page 4 Contents Glossary Print Scorecard Sustainability Planned Initiatives Outcomes Planned Initiatives Drivers in FY15 in FY15 in FY16 Safety Arrium continues to work to achieve “Goal Zero”, a The Lost Time Injury Frequency Rate (LTIFR) was 1.2, Arrium continues to work to achieve “Goal Zero”, a workplace free from injuries, incidents and illness. an 8% reduction on the previous year and a new record workplace free from injuries, incidents and illness. low. The Medical Treatment Injury Frequency Rate (MTIFR) increased slightly by 0.1 to 5.4 for the year. Release of updated and new Codes of Practice, The new Code of Practice was released in July 2015. Introduction of Recordable Injury Frequency including “Crane Integrity and Safe Access”. Rate as an additional safety lag indicator. Focus on prevention of falls and molten High Potential Incidents in the areas of Fall Prevention Reduction in the number of “Zero Barrier” High Potential material safety for Arrium Steel. and Molten Materials were reduced by 10% and Incidents that represent incidents with high potential 38% respectively in FY15 compared to FY14. risk through the commencement of deployment of Arrium Code of Practice Engagement Training. Arrium will continue to promote and reward employees The annual Arrium Safety Excellence Awards were and contractors for their safety excellence. held in July. In 2015 a record 175 nominations were received and 28 finalists recognised at the Arrium Safety Excellence awards. A record seven finalists were from outside Australia. Senior Leadership Team to develop core elements of the During FY15, a further two groups of senior leaders Continue the development of senior leaders plan to implement “World Class Safety” performance visited World Class facilities in the United States. A “World through opportunities to experience World within the business. Focusing on leadership, employee Class Safety” Framework has also been developed. This Class facilities and progress the deployment engagement and clear standards and expectations. framework has identified six themes of work to improve of the World Class Safety Framework. safety leadership, engagement and operational discipline. Development of a new Risk Management Framework document to provide more context for leaders deploying risk management systems within the business. People Communicate the Arrium diversity framework The Arrium diversity framework has been Ensure that employees have clarity about the business globally, implementing programs that help Arrium adopted globally with businesses running context and their role in delivering the required outcomes. better harness the benefits of workplace diversity. programs and initiatives focused on diversity. Continued investment in building the skills of our Arrium has worked with external specialists Continue to build leaders’ engagement and inclusion leadership community to actively identify and including Symmetra to build skills in inclusion. skills to ensure we fully leverage the skills and leverage diversity and ensure there is an inclusive This included workshops looking at unconscious capabilities of all our employees. Implement the environment where all stakeholders feel valued. bias and creating a respectful workplace. leadership learnings from “World Class Safety”. Commence the “Women at Arrium” program “Women at Arrium” sessions have Continue to expect leaders to implement initiatives in North America and South America. been hosted in Chile and Peru. and programs
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