CALLIDE MINE SEAT REPORT 2015–2017

SOCIO-ECONOMIC ASSESSMENT TOOLBOX (SEAT) CONTENTS

GENERAL MANAGER’S MESSAGE 1

INTRODUCTION 2

OBJECTIVES AND APPROACH 3

CALLIDE MINE OPERATION 4

OUR COMMUNITIES 6

SOCIAL MANAGEMENT AND INVESTMENT 10

SOCIAL AND ECONOMIC IMPACTS OF THE MINE 14

SOCIAL MANAGEMENT PLAN 18

CONTACTS

If you would like further information or to provide any feedback please contact: Post Human Resources Manager Anglo American Coal Callide mine PO Box 144, QLD 4715 Phone 07 4990 1649 Email [email protected] Web www.angloamerican.com.au

B CALLIDE MINE SEAT REPORT GENERAL MANAGER’S MESSAGE

It is with pleasure that I present the Callide mine This report provides a snapshot of the key characteristics 2015–2017 SEAT Report. of life in the Callide Valley in 2014 and the issues raised by stakeholders for Anglo American to consider when formulating Having recently returned to Callide from Peace River mine in our annual Community Engagement Plan and Social Investment Canada, I am looking forward to settling back into the Callide Strategy. Valley community. Callide mine is committed to continuing to partner with As the largest employer and a major stakeholder in the Callide stakeholders to further develop the Callide Valley community. Valley, the Callide management team, employees and contractors are committed to our Social Licence to Operate within the Callide Valley and Banana Shire through our continued support of local enterprise, sponsorship of local community groups and community relations. Stakeholders have acknowledged the positive influence Anglo American continues to have on Callide Valley communities. Our contributions to community clubs, organisations and events have been very well received and have allowed these groups to continue to contribute to the liveability and sustainability of the Clarence Robertson Callide Valley. Callide mine General Manager

CALLIDE MINE SEAT REPORT 1 INTRODUCTION

This report presents findings from a study that commenced in 2014 to assess the socio-economic impacts of Callide mine. Anglo American’s Socio-Economic Assessment Toolbox (SEAT) Version 3 was used as the framework for this study.

BACKGROUND REPORT STRUCTURE

The SEAT process has been developed by Anglo American to The first section of this report consists of an introduction to the enable its mines to engage with stakeholders, and identify and SEAT process used by Anglo American sites globally. It sets out understand the socio-economic impacts of its mining activities the objectives and the approach applied, as well as identifying on surrounding local communities. This engagement process the stakeholders engaged during Callide’s SEAT assessment. aims to provide knowledge and guidance on how to improve Callide’s operations and local Callide Valley communities are Anglo American’s performance on identified key social issues profiled, followed by a section showcasing the existing social and to strengthen relationships with community stakeholders. management initiatives and key community investments made Underpinning the SEAT philosophy is the acknowledgement within the Callide Valley over the past three years. that good corporate citizenship is a core Anglo American value. Finally, Callide’s socio-economic impacts, both positive and Our commitment is to make a valuable contribution to the negative, on these local communities are presented and the communities in which we operate, not only through job creation, key social management focus areas for the 2015–2017 period but by supporting and working with stakeholders to help create a are identified. sustainable structure in our community. To accomplish this, Anglo American: • Engages in a variety of community projects that reflect local priorities, sustainability and cost effectiveness, and add value to the community. • Commits to regular engagement with the community on issues which concern them in all phases of our operations. • Undertakes to report on the social dimension of our operations.

2 CALLIDE MINE SEAT REPORT OBJECTIVES AND APPROACH

OBJECTIVES The seven steps of the SEAT process are as follows:

The core objectives of the SEAT process are to: • Provide guidance and support for achieving full compliance STEP 1: PROFILE THE ANGLO AMERICAN with the Social Way – Anglo American’s framework of CALLIDE OPERATIONS. requirements for social performance management during project development and closure. • Identify key social and economic impacts and issues that need to be managed and, thereby, improve risk management. • Assess existing social performance initiatives and identify STEP 2: PROFILE AND ENGAGE WITH where improvements are required. STAKEHOLDERS. • Facilitate the capture and sharing of ‘best practice’ across Anglo American. • Improve each operation’s understanding of the full range of local stakeholders and their views and interests, provide guidance in developing and updating annual Stakeholder STEP 3: ASSESS AND PRIORITISE Engagement Plans, and increase trust and goodwill IMPACTS AND ISSUES. amongst host communities. • Support sustainable socio-economic development in host communities. To achieve these objectives the SEAT process involves seven steps (see right). STEP 4: IMPROVE SOCIAL PERFORMANCE MANAGEMENT. APPROACH

Callide mine recognises that its stakeholders can be broadly classified as anyone who has an interest in its mining operations. Some of Callide’s key stakeholders include: STEP 5: DELIVER ENHANCED SOCIO-ECONOMIC BENEFITS. • Mine workforce (employees) and their families. • Regular contractors and service providers. • Neighbours/adjacent landholders. • Traditional owners. • Local community and business groups. STEP 6: DEVELOP A SOCIAL • Banana Shire Council. MANAGEMENT PLAN. • Customers. • Regulators. • Government organisations, services and institutions. To maximise stakeholder participation in this study, Callide STEP 7: PREPARE SEAT REPORT AND undertook a multi-faceted engagement approach encompassing FEEDBACK TO STAKEHOLDERS. surveys, presentations and face-to-face discussions. The information gained through the SEAT process and reported in this document represents the thoughts and perceptions of the participants who voluntarily took the time to respond. More information about our stakeholders and engagement approach is detailed in the Social and Economic Impacts of the Mine section of this report.

CALLIDE MINE SEAT REPORT 3 CALLIDE MINE OPERATION

4 CALLIDE MINE SEAT REPORT CALLIDE MINE OPERATION

Callide mine is an open cut mining operation managed The current Boundary Hill pit is mined using open cut mining and operated by Anglo American. techniques. Overburden is removed by a walking dragline supported by a hydraulic excavator and truck pre-strip fleet. Callide consists of four major pits. The southern area of the mine A hydraulic excavator is used to load coal into rear dump trucks consists of Dunn Creek, Trap Gully and the Hut pits. The fourth for transport to the run-of-mine (ROM) stockpile located at the pit, Boundary Hill, is located 20 kilometres to the northwest. existing Boundary Hill pit. All coal is crushed and screened at the The operation has capacity to produce approximately 9.5 million Boundary Hill Coal Handling Plant (CHP) area. The crushed coal tonnes (Mt) of coal annually. Callide mine operates two electric is then conveyed to a screening and secondary crusher plant. walking draglines for overburden removal. Truck and excavator Coal is sold as an unwashed product, and therefore no tailings pre-stripping is also used in advance of the dragline operation. are generated. The mine produces sub-bituminous, sub-hydrous, low rank, Due to the mining process to be adopted for the project, steaming coal with good combustion properties, primarily for minimal changes will be required to the current infrastructure domestic power generation, but also with export blend potential. that supports the existing mine. A hydraulic excavator will be This coal is sent to a coal handling plant to be processed to a used to load coal into rear dump trucks for transport to either the top size of 75 mm before being transported to customers. ROM stockpile located adjacent to the Boundary Hill South pit, Callide is a key provider of thermal coal to power stations within or to the existing Boundary Hill ROM. Central and has sufficient coal reserves to continue The activities associated with the project will include: to cost effectively supply competitive energy resources well into the future. Callide supplies coal to the neighbouring Callide • Development of open cut operations in the extended area. Power Station (5.8 Mt per annum), Gladstone Power Station • Construction of a haul road north from the extended open cut (1.5 Mt per annum), Queensland Alumina Refinery (1.6 Mt per pit to facilitate transport of overburden for backfilling into the annum) and Comalco Alumina Refinery (0.35 Mt per annum). existing Boundary Hill residual void and haulage of coal to the As a dedicated supplier to its customers, Callide is the single CHP area. largest supplier of coal into the domestic market in Queensland, • Construction of a new overburden dump area to the west of supplying over one third of the state’s domestic coal the area to be mined. requirements. • Additional temporary mine infrastructure, such as crib rooms The success of Callide is built on utilising the skills and and amenities. knowledge of the mine’s most important asset, its workforce. • Realignment of Inverness Road. Callide is currently one of the largest employers in the Banana Shire, employing 566 full time employees and approximately EXISTING CLOSURE PLANS 134 full time equivalent contractors. Callide is committed to the ongoing development of its current The existing mine closure plans at Callide are primarily related to and future employees through performance management, the impact on the environment. training and career development programs. Callide is also an Upon termination of mining operations, pit dewatering would active employer of trainees, apprenticeships and graduates. cease and any remaining mining voids would be filled to some extent with water. During the period of revegetation and EXPANSION PLANS – BOUNDARY HILL stabilisation of the final landform, sedimentation dams will control SOUTH PROJECT the suspended sediment in catchment runoff prior to discharge from the lease area. The Boundary Hill South project is located immediately to the Once the drainage structures and rehabilitation works have south of the existing Boundary Hill pit. The project comprises been established, the dams will not be required. This storage an area of approximately 630 hectares, of which approximately will become an integral part of the landscape, providing a 485 hectares will be subject to disturbance associated with the good quality water supply for native fauna in the area. The mining operations including pits and spoil dumps. likelihood of achieving long term surface stability of the post mining landform will be enhanced if the land is used for nature conservation, such as the establishment of native vegetation cover similar to surrounding vegetation types and suitable as habitat for native fauna. This was the primary land use before mining, and consequently there would be no overall reduction in agricultural productivity.

CALLIDE MINE SEAT REPORT 5 OUR COMMUNITIES

6 CALLIDE MINE SEAT REPORT OUR COMMUNITIES

Callide mine operates within the Banana Shire, which has Cania Gorges. The Dawson River and Callide Dam provide a population of approximately 15,000 people. The district opportunities for fishing and water sports. The Shire can also includes Biloela and the adjacent townships of , provide many adventures for the 4WD enthusiast. Many of the Jambin, , Banana, Moura, Wowan, , Shire’s towns have a rich agricultural and mining history that is Baralaba, Cracow, and Theodore as well as the well documented in historical villages and museums. surrounding rural areas. The average annual rainfall of the area is 700 mm (28 inches), The zone of influence, the Callide region, has a population of but tends to be erratic in distribution. When seasonal conditions approximately 10,000, including Biloela, 6128; Thangool, 839; are favourable, excellent yields of all grain crops are harvested. Jambin, 308; and Goovigen, 229, and the districts of Mount Dry land crops include sorghum, wheat, cotton, sunflower, Murchison, Prospect Creek, Dawes, Lawgi, Lake Callide, Argoon barley and mung beans. The principal irrigated crops are cotton, and Callide, with an additional population of 2,180. lucerne, sorghum, wheat and beans. BANANA SHIRE BILOELA

LOCATION LOCATION Banana Shire covers 28,577 square kilometres and is located Biloela is a rural service centre at the junction of the Burnett 130 kilometres south-west of Gladstone, south west of and Dawson Highways 594 kilometres north-west of , and 540 kilometres north of Brisbane. The 145 kilometres south-west of Rockhampton and 127 kilometres Leichhardt, Dawson and Burnett Highways pass through from Gladstone. Banana. It includes the Callide and Dawson Valleys and their associated coalfields, together with about two-thirds of the HISTORY former Taroom Shire, which was added to it in 2008. The tribe, who inhabited the region prior to European settlement, named the area Biloela after their totem: the white HISTORY cockatoo. The town was gazetted in 1924 and the railway arrived Pastoral occupation began in the 1850s and Banana was the following year along with the opening of a primary school. chosen as the region’s township in 1862. A court of petty The primary infrastructure of the town was developed between sessions and a police lock-up were installed within a year. The 1930 and 1941 and included the School of Arts, local churches, Banana local government division (1880) and the subsequent courthouse, hospitals and a local newspaper. In 1946 the Council shire were headquartered in Banana until 1930. offices were transferred to Biloela from Wowan and by 1952 DESCRIPTION numerous retailers had opened stores after the meatworks began operation. By 1965 the Callide Dam was completed, creating The Banana Shire has many natural attractions including gorges, a reliable water supply for the area. Since then the town has rivers and National Parks such as Kroombit and Mount Scoria continued to grow and increase its population significantly. Conservation Parks, and is within 100 kilometres of Isla and

CALLIDE MINE SEAT REPORT 7 OUR COMMUNITIES

DESCRIPTION THANGOOL Biloela is the administrative centre of the Banana Shire. Today Biloela is a modern town characterised by very broad streets and a well-established business and service centre. Due to its LOCATION location, the town is well supplied with accommodation and The town of Thangool is located 12 kilometres south of Biloela, eating facilities. Anglo American, CS Energy, Teys Brothers, 153 kilometres south of Rockhampton and 577 kilometres nearby mines and a healthy agricultural base, which includes north-west of Brisbane. the growing of sorghum, wheat and mung beans, drive Biloela’s economy. It is also the centre of a very successful beef HISTORY producing area. Originally part of the large Prairie run, Thangool was named The Callide region supports one state high school, four larger in 1924 from a derivative of the Aboriginal word ‘tangoor’, primary schools (including two private), four small, one teacher, meaning possum. schools and a number of kindergartens and child care facilities. DESCRIPTION Biloela offers locals the professional services of resident doctors, Thangool is best known for its aerodrome, with daily flights to dentists, accountants, lawyers and other business providers as and from Brisbane. The Thangool Race Course holds regular well as government services such as the Department of Primary meetings and is the main track in the shire and the fourth largest Industries, Centrelink, Community Health Services and the in the central region. The Mount Scoria Conservation Park is Agent Program. located 10 kilometres south of Thangool and is home to one of The town has a quality nursing service supporting the local only three known formations of its kind in the world. hospital and an efficient ambulance service. Biloela no longer maintains a permanently manned fire station but has a capable JAMBIN and enthusiastic group of dedicated auxiliary members. The Biloela PCYC has a body shop gymnasium and hosts jujitsu, LOCATION futsal, basketball, boxing, gym circuit, aerobics, yoga, karate, The township of Jambin is located 29 kilometres trampoline and an outside school hours care program. north-west of Biloela, 113 kilometres south of Rockhampton and 617 kilometres north-west of Brisbane.

HISTORY Jambin, Aboriginal for Echidna, was originally set up as a supply depot for the railways. It now forms an intricate part of the rich agricultural area.

8 CALLIDE MINE SEAT REPORT OUR COMMUNITIES

DEMOGRAPHICS

The table below outlines the demographics of the total population within the zone of influence.

Demographics Total population 9,116 Males 4,649 Females 4,467 Labour force (population aged 15 years and over) Total labour force 4,653 Occupation (employed persons aged 15 years and over) Technician and trades 850 Community and services workers 290 DESCRIPTION Managers 738 Jambin is located on the Burnett just north of Biloela. It boasts a small, tight knit community and is the centre for a Labourers 733 variety of agriculture businesses and industry. Jambin maintains Clerical and admin workers 484 a popular rest stop for travellers and a variety of other services Professionals 494 and facilities such as Jambin Community Hall, Post Office and shop and the Jambin Hotel/Motel. Machinery operators 669 Sales workers 316 GOOVIGEN Industry of employment > 200 Coal mining 710 LOCATION Manufacturing (including meat processing) 512 The township of Goovigen is located approximately 43 kilometres from Biloela and 109 kilometres south of Agriculture 568 Rockhampton. School education 302 HISTORY Electricity, gas, water and waste 275 Goovigen, Aboriginal for Box Tree, was originally set up as a Construction 243 supply depot for the railways. It now forms an intricate part of the Health care and social assistance 309 rich agricultural area. Public administration 248 DESCRIPTION Retail trade 389 Goovigen has a population of 250 including surrounding grain Income (population aged 15 years and over ($/weekly) and cattle properties. Median individual income 532 The turn-off to the town is located just north of the township Median household income 1,207 of Jambin on the . The topography and soils make Goovigen ideal for irrigation and dry land farming. The Median family income 1,461 land is suitable for grazing, horticulture and a wide range of both 2011 Census – Data generated using ABS Table Builder summer and winter crops.

CALLIDE MINE SEAT REPORT 9 SOCIAL MANAGEMENT AND INVESTMENT

10 CALLIDE MINE SEAT REPORT SOCIAL MANAGEMENT AND INVESTMENT

This section highlights some of Anglo American’s social investments over the past three years. Callide has made a number of important contributions benefiting the economy and community and this will continue to be an important focus for Anglo American. ECONOMIC CONTRIBUTION

In 2014 Callide’s local, state and national procurement spend was $25.6 million, $133.5 million and $116 million respectively. The table below outlines Callide’s payments to local, state and federal governments. It also shows the benefits of employing 700 full time equivalent positions directly as well as the indirect flow-on benefits.

PAYMENTS TO GOVERNMENTS AND AUTHORITIES 2011 2012 2013 2014 (Million AUD) (Million AUD) (Million AUD) (Million AUD) Income Tax paid on behalf of employees 18.41 19.94 21.46 21.62 Payroll Tax paid 3.28 3.46 3.67 3.87 Workers Compensation Premiums 2.43 2.83 1.97 1.2 Stamp Duty, lodgement fees, filing fees licences and permits 0.08 0.04 0.05 0 Australian Mining Industry Council Subscription - 0.78 0.09 .27 Safety, Health and Mine Levies 0.02 0.94 0.44 .55 Coal Research levy 0.36 0.34 0.30 .34 Coal 21 Research levy - 0.54 0.33 0 Royalties 18.51 16.13 17.28 15.2 Rail Charges 15.13 6.87 1.97 0 Port Charges 3.75 2.50 0.48 0 Company/Corporation Tax (13.312) (1.914) 0 0 Environmental Authority Fees .267 .278 .288 .172 Tenure Rents .286 .296 .306 .329 Rates 1.21 1.22 1.23 1.31

CALLIDE MINE SEAT REPORT 11 SOCIAL MANAGEMENT AND INVESTMENT

• Providing donations for equipment and awards nights to local schools including: --Thangool State School. --Goovigen State School. --Jambin State School. --Prospect State School. --Biloela High School. --Biloela Primary School. --Mt Murchison State School. --St Joseph’s School and Pre Prep. • Sponsoring cultural awards for art and music including: --Biloela Eisteddfod. --Callide Valley Show Arts Competition. --Banana Shire Art Gallery Committee. SOCIAL INVESTMENT • Providing educational information and opportunities via careers markets, work experience programs and participation in the Callide provides community support through involvement Queensland Minerals and Energy Academy program. in business forums, educational activities, donations and sponsorships, employment and training, accommodation and BILOELA MEDICAL CENTRE housing, localised focus in contract matters and general good corporate citizenship. Callide donated $100,000 towards the development of the Biloela Medical Centre, which opened in 2011. The centre The principle underpinning Callide’s social management and provides members of the local community with access to modern investment is to work with our stakeholders and the community equipment, practical engagement and procedural areas, and to look for opportunities to build capacity, not dependency. emergency triage services all within an accredited facility. It Callide has invested over $300,000 in the Callide Valley supplies much needed specialist treatment that was previously community over the past three years. only available in the coastal towns of Gladstone or Rockhampton. The centre has also achieved its greatest goal of attracting more Specific activities undertaken during the study period include: doctors to the community. • Providing support to community groups and associations including: CALLIDE SHARES TRAINING SECRETS WITH --Cancer Council Queensland. THE COMMUNITY --Callide Valley Chaplaincy. Callide is a proud supporter of the annual Callide Valley Show. --Banana Shire Industry Summit. In 2014 Callide mine teamed up with Lee Crane Hire to bring Callide’s training simulator to the Show to give the community --Anglicare. the opportunity to virtually drive a Caterpillar 789c truck. --Biloela PCYC. Experienced trainers from the mine helped visitors at the Anglo --Biloela Visual Arts Inc. American information booth hop aboard and safely learn what it --Biloela Indigenous Advisory Group. takes to manoeuvre a large haul truck in a mining situation. --Goovigen Pony Club. --Biloela Enterprise. --Biloela Promotion Bureau.

12 CALLIDE MINE SEAT REPORT SOCIAL MANAGEMENT AND INVESTMENT

CALLIDE’S SPECIAL DELIVERY TO ST JOSEPH’S DONATION OF LAPTOP AND IPADS PRE-PREP CENTRE In 2014 Callide donated 10 iPads to Thangool, Goovigen, With more than 80% of Queensland drought-declared, Callide Jambin, Prospect, Mt Murchison and Biloela State Primary partnered with the Banana Shire Council to arrange the in-kind Schools, and five laptops to a number of Biloela community transportation of a water tank from Brisbane to the doorstep of groups including the Community Resource Centre, Queensland St Joseph’s Pre-Prep Centre. Heritage Park, Biloela Information Centre and Wahroonga Retirement Village. The water tank provided the pre-prep centre with a much needed water storage device for the future. The benefits will The donated iPads helped boost the schools’ existing reading be shared with the current 44 enrolled students and all future program to develop a solid foundation for Prep and Year 1 students that will use the centre facilities. students’ literacy capabilities.

Banana Shire Deputy Mayor Councillor Warren Middleton said CALLIDE HOSTS TOOLKIT 4 SCHOOL KIDS this successful logistics exercise provided a fantastic example of the mining industry stepping up to partner with Council and WORKSHOP IN BILOELA support the local community. In 2014 Callide sponsored the Queensland Minerals and Energy Academy (QMEA) ‘Toolkit 4 School Kids’ workshop in Biloela. CALLIDE SUPPORTS BANANA SHIRE Students from Monto, Moura, Biloela, Rockhampton and Mount INDUSTRY SUMMIT Morgan State High Schools gained a valuable insight into the life of a tradesperson and exposure to the types of training and In September 2014 the Biloela Civic Centre was transformed activities they would complete through an apprenticeship in the into a hive of activity with the staging of the annual Banana mining and energy sector. Shire Industry Summit which was supported by Callide and Dawson mines. The event brought industry and community representatives together to discuss development opportunities within the Banana Shire. As the largest employer in the Banana Shire, Anglo American is committed to working with the local community and businesses to help ensure the long term sustainability of the region.

CALLIDE MINE SEAT REPORT 13 SOCIAL AND ECONOMIC IMPACTS OF THE MINE

14 CALLIDE MINE SEAT REPORT SOCIAL AND ECONOMIC IMPACTS OF THE MINE

An important aspect of the community engagement STAKEHOLDER PERCEPTIONS process was to assess how the community perceives Callide mine. Generally, the operations have a good OF CALLIDE MINE reputation. However, there were some issues that concerned the stakeholders consulted. The perception of Callide mine as an employer, a value-adding business and as a community partner was generally positive. STAKEHOLDER ENGAGEMENT Approximately three quarters of all participants indicated an UNDERTAKEN average or good response to these questions. The table below indicates the perceptions of survey respondents: The following research was conducted during the SEAT process: • Analysis of community development work completed and existing engagement plans at Callide. • Engagement with Callide employees to gather operational and site based information.

• Engagement with community stakeholders though a Strongly Agree Agree Unsure Disagree Strongly Disagree N/A questionnaire and face-to-face discussions. 352 stakeholders STATEMENT PERCEPTION were engaged face-to-face from the following groups: Callide mine is important to 81 36 7 5 0 0 --Callide employees (including contractors). the economic stability of the --Community members in the Biloela area. community --Business owners and industry representatives in the Callide mine contributes to the 35 41 34 14 2 1 Biloela area. social wellbeing of the community --Immediate neighbours of Callide mine. Callide mine communicates well 9 29 50 33 7 1 --Members of the Community Liaison Forum. with the community A total of 2,230 newsletters explaining the SEAT process and Callide mine understands and 12 32 59 17 7 0 inviting responses were distributed to 9,116 residents across supports the values of the community the Callide Valley. Callide mine support and 10 52 46 13 5 3 Employees were engaged and invited to respond during participate in events presentations at weekly bench talks, via written questionnaires and/or face-to-face meetings held on site. Callide mine demonstrates Care 9 43 54 14 7 2 and Respect Community members were invited to provide feedback at an Callide mine demonstrates 11 31 62 12 5 5 engagement stand set up at the local shopping centre and Collaboration through a survey tool distributed throughout the community. Callide mine demonstrates Integrity 9 38 58 11 9 3 Business owners and industry representatives were contacted for feedback through personally delivered surveys, door-to-door Callide mine demonstrated 7 30 67 15 6 3 engagement and via the Enterprise Biloela team and Banana Innovation Shire Council offices. Callide mine demonstrates 9 31 60 17 7 3 Accountability The mine’s neighbours were engaged face-to-face and the Community Liaison Forum was engaged during Callide mine demonstrates Safety 27 51 35 8 5 3 quarterly meetings.

CALLIDE MINE SEAT REPORT 15 SOCIAL AND ECONOMIC IMPACTS OF THE MINE

SUMMARY OF ISSUES RAISED DURING EDUCATION AND CHILD CARE FACILITIES THE STAKEHOLDER ENGAGEMENT Education is an extremely important part of the social fabric, growth and development of the community. The key socio-economic impacts identified by stakeholders Stakeholders believe Callide should be involved in the following are outlined below. In broad terms the groupings reflect the programs to ensure the delivery of education opportunities within community’s concerns about social, economic, employment, the Callide Valley: educational and environmental issues that impact on the lifestyle • Traineeships and apprenticeships for local people, including of local residents. Indigenous people. It is important to note that Biloela, unlike many neighbouring • Support and assistance for the local Indigenous community. mining towns, is the operating base for a • Career awareness programs. number of other significant industries, which also have socio- economic impacts on the local community in relation to housing • Work experience for locals. and accommodation costs and availability of child care and • Child care and kindergarten facilities. health facilities. COMMUNICATING WITH THE COMMUNITY HOUSING AND ACCOMMODATION Stakeholders made it clear they want to know more about the Housing and accommodation is a historical issue for Callide, mine’s operations, including: and market forces and industry fluctuations will continue to • General information about the mine, such as growth, have both negative and positive effects. Anglo American has projects and life-span. worked very hard with the community to manage this issue in an extremely difficult marketplace. • Updates on community engagement and community investment. Due to the high investment in housing stock in 2012 and • Information on environmental activities and mitigation 2013, housing and accommodation was not raised as an issue strategies. in the SEAT process. Increased housing stock has a positive impact on home buyers and renters. The mine’s current housing COMMUNITY ENGAGEMENT management action will continue to support market stability and the community. Stakeholders identified a number of preferred communication methods to help improve community engagement including: ECONOMIC AND EMPLOYMENT • Website. 98% of all respondents spoke positively about the mine’s • Local communication networks (e.g. newspapers). economic contribution to the local community and employment • Interact with community groups including Rotary, Probus, policies, particularly the employment of apprentices. Many people Enterprise Biloela and Lions Club. expressed their support for the Boundary Hill South project as critical to the local economy. • Engage and partner with Council on community matters. • Community State of the Nation talks. HEALTH INFRASTRUCTURE, • Quarterly community newsletter. FACILITIES AND SERVICES • School education processes. Due to the demographic spread of both young families and retirees in the Callide Valley, stakeholders believe Callide should be involved in the following programs: • Health. • Disability and Allied Health services. • Aged care. A clear message was that developing and maintaining health infrastructure and services is paramount to the continued growth of the community.

16 CALLIDE MINE SEAT REPORT SOCIAL AND ECONOMIC IMPACTS OF THE MINE

ENVIRONMENTAL ISSUES Having identified the key areas of social and economic need, the survey also asked for feedback on existing facilities and services Environmental issues are extremely important to the whole in Biloela. The socio-economic satisfaction table below breaks community. Stakeholders want to be assured that the mine down the responses. is committed to the long term management of the following key issues: • Water management. SATISFACTION LEVEL OF SOCIAL AND ECONOMIC • Dust and noise control. SERVICES AND FACILITIES • Weed control. • Community education regarding environmental activities.

SOCIAL INVESTMENT INDICATORS The following social investment graph provides a statistical overview of the social and economic needs in Biloela as raised by stakeholders. The top five social and economic needs in Satisfied Very Satisfied Unsure Unsatisfied Unsatisfied Very N/A Biloela are: STATEMENT PERCEPTION • Education, including childcare/early education. Footpaths, walking/cycling features 18 59 7 18 8 16 • Health, including Allied Health and disability. Street lighting 5 83 10 14 3 11 • Arts. Traffic management 7 86 9 16 1 6 • Aged care. Parking facilities 10 72 7 2 2 11 • Junior sport. Sporting and recreational facilities 18 71 12 11 5 8 Cultural and entertainment facilities 11 70 15 16 6 5 Libraries and other 25 80 7 5 3 5 SOCIAL AND ECONOMIC NEEDS IN BILOELA information access Education 17% Community safety 23 83 12 5 1 1 Disability i.e. Community Resource Centre 14% Shopping facilities 18 71 13 17 3 3 Childcare/early education 13% Economic development 1 46 42 19 13 3 Health 11% Development of tourism 1 30 39 36 14 6 Arts 9% Government services 5 67 24 20 3 4 Aged care 9% Junior sport 7% Childcare 3 31 26 17 4 44 Social services i.e. Bluecare, Housing and accommodation 6 50 23 21 8 17 Anglicare etc. 6% Environment 6% Health 7 60 20 22 15 2 Senior sport 3% Education 18 73 15 8 2 9 Culture and heritage 3% Disability services 7 43 39 9 7 21 Social housing 2%

CALLIDE MINE SEAT REPORT 17 SOCIAL MANAGEMENT PLAN

18 CALLIDE MINE SEAT REPORT SOCIAL MANAGEMENT PLAN

During the consultation process four main themes In addition to the management actions outlined below, Callide emerged as key concerns for the Callide Valley will continue to work with the community to assist and support communities: community initiatives through the Anglo American Social Investment and Donations Policy. • Health. • Education. Anglo American will work towards achieving all of the objectives and management actions listed in this report by the end of this • Social and community. reporting period (2017). This will involve an annually updated • Environment. Community Engagement Plan outlining specific actions the mine Accommodation and employment have been historical issues. will take each year to achieve improved social management within its local communities. The Social Management Plan has been developed to outline how Callide will focus, monitor and strive towards achieving The below Social Management Action table outlines Anglo improvements in these key areas over the next three years. American’s responses to the key issues identified by stakeholders in the SEAT survey.

ISSUE RESPONSE AND ACTIONS HEALTH FACILITIES AND As an employer, Callide mine recognises the importance of the availability of medical services in the SERVICES AND RESEARCH attraction and retention of staff across all industry sectors. Support for community facilities will have ongoing and measurable benefits to the broader Callide and Dawson Valley communities. • Health (including research). Callide is committed to ongoing partnerships for the provision of aged facilities that encourage retirees to • Allied Health services stay in the community, as this is essential for maintaining and strengthening a sustainable and prosperous (including disability). community. • Aged Care. In 2012 Callide invested $100,000 into the Biloela Medical Centre. The mine also supports health research through the Breast Cancer and Prostate Cancer, Pink and Blue truck programs, and Allied Health services including Anglicare, Bluecare and Callide Dawson Special Needs Group. 2015 will see the continued support for health related programs that deliver services in the Callide Valley. Callide will also provide professional support to the Biloela Systems Health Action Group (BSHAG). EDUCATIONAL AND CHILD CARE All spheres of education are of high importance to the community. Infrastructure is provided by the FACILITIES government and the private investment sector. However, the community wishes to see partnerships developed that deliver innovative educational initiatives. • Innovative support to education facilities and providers. Callide will continue to actively support educational and childcare facilities within the community through financial, personnel and equipment contributions. Callide will continue its proud partnership with the Queensland Mining and Energy Academy, bringing opportunities to tomorrow’s apprentices and tradespeople, and will maintain this commitment for the next three years.

CALLIDE MINE SEAT REPORT 19 SOCIAL MANAGEMENT PLAN

ISSUE RESPONSE AND ACTIONS SOCIAL AND COMMUNITY Callide will continue to be a valuable community partner in the Callide Valley by keeping abreast of community issues through visits with neighbours, Callide Community Liaison Group and participation in • Information to community meetings with local business and community organisations. members. Within the local community, the mine has a number of ongoing supportive partnerships which bring health, • Health. cultural and educational benefits to the members of the local community who choose to engage in these • Education activities. The mine will continue to support the Biloela Indigenous Advisory Group to build on their service • Arts. provision through developing autonomy within their organisation. • Maintain housing and Callide’s philosophy for driving any community support is that any contribution needs to add to the quality accommodation opportunities. of life, health, education and opportunities for the local community to grow in a sustainable way. The mine’s • Maintain employment ongoing support via the Social Investment Program allows for community and social development which opportunities with the community. will extend into the future. Callide recognises the importance of building community capacity rather than dependency on the mine’s Social Investment Program. The mine will continue to monitor the housing and accommodation issues within the Callide Valley. Attraction and retention of resident staff is important to the operations of the mine and demographically affordable housing is critical to the sustainability of the mine and the community. Callide is the largest employer in the Callide Valley and will continue to offer a variety of job opportunities, including apprenticeships and traineeships, and experienced production operators, trades, technical and management positions. Recruitment for all positions at Callide is open to any member of the local community who is able to demonstrate relevant skills and experience and appointments are made on a merit based system. ENVIRONMENTAL ISSUES Callide is committed to the protection of the natural environment in which we operate. Land, biodiversity and water resources are fundamental to a sustainable future. The mine’s operational strategies are built around • Water management. the efficient use of energy and natural resources, and the minimisation of waste. • Air Quality and noise control. The mine will actively engage with regulatory and community organisations in order to achieve positive • Weed control. environmental outcomes. The site works with local environmental stakeholders to regenerate mined areas when they become available and the operation also strives to conduct mining operations in such a way as to minimise any negative effects on other environmental amenities including water, air, noise, dust and visual amenity. The commitment to understand the issues and our actions is underpinned by regular, open engagement with those affected by our operations, relevant government authorities and non-government organisations. Anglo American regularly reviews and reports publicly on site performance on safety and sustainable development issues. Continued installation and operation of air quality and noise monitoring stations within the Callide Valley at sensitive receptors will aid Callide in gathering accurate data for assessing operational impacts.

20 CALLIDE MINE SEAT REPORT

ANGLO AMERICAN 201 Charlotte Street Brisbane QLD 4000 GPO Box 1410 QLD 4001 Australia T +61 (0) 7 3834 1333 F +61 (0) 7 3834 1366

www.angloamerican.com.au D10_ANG2660