Sustainable development report 2016 Argyle Diamonds Contents 03
tick boxes in China tick boxes TM Chroma collection a global hit Chroma treasure A coin to reation of economic value Creation Beauty with Integrity Diamonds Australian Better use of water Better dividends is paying work waste Careful for Argyle Maintaining good relationships point offer an important touch Tours wider audiences to history Bringing our cultural F information urther Our community Our product Our environment 28 29 25 26 19 19 21 21 22 27 certification welcome Indian retailers 30 32
18 20 24
from our Message Who we are Keeping Argyle workers strong workers Argyle Keeping mates looking after Mates Our location Our operations Our purpose Our values at Argyle Drones systems of the art dewatering state Argyle’s risk A sustained focus on avoiding the fall Before contractors for Argyle Safety celebration perform brilliantly team Emergency Our people our mine O and safety ur health 17 17 06 06 07 11 11 13 14 14 14 16 Table of contents Table 04 05 06 10 12 13 underground flowing the traffic Keeping director Managing 02 Message from our managing director location Our The Argyle diamond mine is located in the East Kimberley region of north Western Australia. It is 185 kilometres by road from Kununurra, just south of Lake Argyle. Argyle also has offices in Perth and Kununurra.
The mining lease is on the traditional country of the Miriuwung, Gija, Malgnin and Wularr people and was formerly part of the Lissadell pastoral station. The closest communities are Warmun (Turkey Creek), Mandangala (Glen Hill), Woolah (Doon Doon) Juwulinypany (Bow River) and Rugan (Crocodile Hole).
I am pleased to present the Argyle Diamonds 2016 sustainable development report. Since the completion of the underground project in June last year – a milestone event– we have been focused on safely ramping up production to realise the mine’s full potential. However, this has occurred against a backdrop Darwin of challenging market conditions, with a slow down of global sales of rough and polished diamonds.
While the underground mine delivered a four per cent increase in carat production in 2016, we have had to do some significant restructuring of our business to ensure its sustainability. This has reduced the size of our overall workforce and resulted in some major roster changes.
WESTERN Change of this order inevitably creates uncertainty, so it is very important to us that our reshaped workforce continues AUSTRALIA to feel well supported and engaged. As you will see from this report, we have introduced health, wellness and social activity programs to promote individual health and wellbeing and to help build a strong sense of community right Perth Sydney across the mine site. And, as ever, the safety of our workplace for all of our staff remains our foremost concern.
Strong engagement with our local communities and our Traditional Owners is another important priority for Argyle. Melbourne The mine continues to provide training, career and business development opportunities to many people in the region and our focus is on how we maximise these community-building initiatives before the mine closes. With the mine expected to draw to its end in 2021, it is very important that we continue to discuss what is next for this land and the people who remain. To this end, community workshops were held this year with the Traditional Owners to discuss closure options. Argyle, for its part, is working steadily towards the handover of a rehabilitated landscape and the creation of an economic legacy that will benefit this and future generations. Kununurra The Argyle mine is one of the world’s great ore-bodies, with an iconic product and a fabulous story. I want to thank all EAST KIMBERLEY of our employees for their tireless efforts this year in often challenging circumstances. Your hard work, your ingenuity and your commitment to Argyle are highly valued. LAKE ARGYLE Argyle Mine
K IN G L E O P O Derby LD MO
B IL E Z E O N N O ELLENDALE E Andrew Kite E Z L I Managing director B Argyle Diamonds K MO EE R
S C L L WEST KIMBERLEY A H
MINE SITE
DIAMOND OCCURRENCE 0 100km LAMPROITE 100miles KIMBERLITE 04 TOWN/CITY 05 Who we are 07
valuing our people; valuing culture; indigenous respect for and creation; value accountability. In return, the Traditional Owners have provided their provided Owners have the Traditional In return, mine the lease area. Argyle to for approval Our values to at Argyle is linked work we in which The way work’, we ‘The way Rio Tinto’s in out set the values around practices business Rio Tinto’s which outlines the globe. purpose is underpinned by At Argyle our business values: our key • • • • everything to – safety do is core Safety that we our business conduct to We strive first. comes always This values. of our core within the framework workplace, and healthy a safe ensuring includes with the Argyle respecting all peopleinvolved and honestly. openly operation, and communicating Only 26 per cent of Aboriginal adults of Aboriginal 26 per adults cent Only participatingare in the workforce employment development (non-community for 87 per cent to compared work) project adults. non-indigenous of Aboriginal79 per in public people cent are 14 per to compared housing, and community population. the non-indigenous for cent of AboriginalAbout 57 per people cent in the in WA 26 per cent to compared East Kimberley, per year. than AUD$15,600 overall, earn less • • • and employers As biggest one of the region’s an we have contributor, significant economic these to difference a real opportunity make to circumstances. the Argyle Diamond Mine by guided Our are efforts in Participation Agreement, registered which was Argyle’s the basis for form to 2005 and continues in groups with indigenous positive relationships The Participation Agreementthe region. is based on build a better to desire and a shared respect mutual local Aboriginal for that people.future It recognises land of the Owners the custodians are the Traditional on which the Argyle lease is situated. Around 55 per cent of the Aboriginal 55 per population cent Around 25 per cent to old, compared is under 25 years population. the non-indigenous for complete of Aboriginal 17 per children cent Only of the 54 per cent to compared 12 education Year population. non-indigenous The underground block cave will ensure diamond will ensure blockThe underground cave 2021. to through production Our purpose our full by realise potential Argyle’s purpose is to aim We the Argyle asset. of maximising the value and achieve remembering a story worth create to towards a positive move and lasting legacy as we closure. for lived in the region Aboriginal people, who have 50 per cent around form than 40,000 years, more the of the East Kimberley population. suffer They of social disadvantage levels and economic greatest Kimberley these East statistics for as the 2011 census show: communities • • Our operations Rio Tinto. by owned Argyle Diamonds is wholly East Kimberley Our Argyle mine, in the remote is one of the world’s Australia, of Western region of diamonds and is the world’s suppliers largest diamonds. coloured of natural producer largest the comprises Argyle’s operation currently plant and mine, a processing underground facilities. and support accommodation Argyle’s open pit diamond mine, which ceased than more produced 2013, operations in August life. its 28-year 800 million of diamonds over carats at depth and an The Argyle diamonds continue mine has beendeveloped blockunderground cave reach to way most economical and as the safest body. Argyle’s ore deep into the ore undercutting mining involves Block cave under or ‘cave’ up break body it to and allowing explosives the need for removing weight, its own sophisticated or blasting. The technologically operation block at Argyle is the first underground two and one of only Australia mine in Western cave operating in Australia.
Who we are 06 Who we areWho we areWho
Our strategic direction 2017 - 2021
Our five year strategic direction defines We operate in a location with what we will do to realise the full potential immense cultural value to the of Argyle Diamonds in that timeframe. It is indigenous people of the East supported with an annual action plan for Kimberley. each of the five pillars of progress.
Our purpose is to realise our full potential - maximising the value of the Argyle asset. We create We have a proud history a story worth remembering and achieve a positive producing hundreds of millions and lasting legacy as we move towards closure. of beautiful diamonds that enrich people’s lives worldwide. Our pillars of progress – we focus our efforts in six key areas:
SAFETY POSITIVE CLOSURE
Everyone goes home safely everyday Maximise benefits after the mine
Our focus on health and safety demonstrates our • We work hand in hand on closure with government, caring culture and improving mindset. Our goals are: local stakeholders, Rio Tinto and the community • Zero fatalities • Closure planning is creating jobs beyond the life of the mine • Zero permanent disabling injuries • We position Traditional Owners to seek and secure • Significantly reduced AIFR opportunities beyond closure
PROMISED PRODUCTION EXTRA CARATS
Maximise the mine’s potential Maximise extra diamonds above current plan
• Productivity improvement becomes our standard • Committed to optimising life of mine planning to sustain operating model with a one Argyle system of working our business • Sustained stable production of 6.1 Mtpa is achieved • Comprehensive studies into all potential options include: • We design innovative solutions to optimise • surface ore sources (SOS) our assets • underground tail extension • An integrated supply chain realises synergies across • additional carats from the extraction level our business - one Argyle • All commercially viable options rigorously pursued
PROUD PEOPLE CASH GENERATION
Maximise your potential Maximise productivity potential and cost savings
• Provide opportunities and challenges to meet • Strength 2 Strength program is improving productivity – business needs and personal goals allowing our people to do their jobs in the smartest, most Recognise high performance and manage to • efficient way clear expectations and accountabilities • LEAN is our tool to remove waste • Develop a pipeline of talent for careers beyond Argyle • Goods and services optimisation delivers commercial excellence • Diversity of people is embraced and diverse • Recognition, rewards and culture drives improvement everyday stakeholder perspectives valued • We partner with Sales & Marketing to optimise revenue 08 09 Our mine 11 The creative application of drone technology by by technology application of drone The creative in this understanding. is assisting the Argyle team by is undertaken monitoring this Traditionally, drill into markers placing small cylindrical cave at possible body;holes in the ore this is no longer body and moving that the ore is breaking Argyle now drones use was to Argyle’s solution downwards. zones the rapid draw into trackers cave drop to of the openapparent pit. In August in the bottom these into 20 of these trackers dropped 2016, a drone when they which will be zones, monitored draw on the extraction level appear buckets in bogger significant Argyle offers This below. 400 metres terms of and efficiencyboth safety benefits in systems of the art dewatering Argyle’s state some The Argyle diamond mine has in place deal with the to systems dewatering impressive that can deposit a lot Kimberley summers wet in. blow of rain, particularly when cyclones beneath mine, located the The underground acts effectively open pit workings, extensive the open rain falling into for as a catchment pit. Argyle has established state-of-the-art of staff in the safety ensure help to systems these circumstances. system Argyle maintains a normal dewatering pumps that operate two displacement (comprising well as water) of ground the inflow manage to daily that deals with system as a seasonal dewatering inflow. water excess the pump stations comprise A series of three in the flood can accumulate Water seasonal system. at being this system pumped by dams before out 2014, In February per second. than 900 litres more days, almost three ran for example, the system for fill 90 Olympic to enough water pumping out swimming pools. Action Response Trigger Argyle also has in place the operation of the underground oversee Plans to inflow. than normal water of larger mine in the event As we approach the expected closure of the Argyle of the Argyle As closure approach the expected we realising on significant effort focusing are mine, we and off once sign we the mine’s full before potential This will have business. this incredible all from for for line, but bottom for our business benefits not only payments trust Owners who receive the Traditional other and the many Argyle’s earnings to indexed the chain from participants in the Argyle supply the market. mine to identifying into a suite has gone Considerable effort productivity, increase Argyle to of initiatives for the skills underground of our developing including increase has been a sustained and there operators, has also There this year. tonnes in our underground reporting of been in the various increase a significant visibility and feedback improved for allow to metrics on performance. of our underground performance The improved of reopen a number to us has allowed cave also are points, and we draw underground options of selective mining exploring a number 2021. to through augment production to with important and progressing are we Meanwhile, and the rehabilitation on closure, work detailed Owners. the Traditional land to of the return ultimate at Argyle Drones common an increasingly becoming are Drones of in our skies as an expanding range presence versatile for these incredibly uses finds industries unmanned aerial vehicles. popular in the increasingly also becoming are They collect to used are they where mining industry, a range and execute of information a wealth safely quickly, tasks more of often complex mineral mapping to – from and cost-effectively equipment inspection. exploration to The Argyle mine has been very proactive in technology, exploring the full of this new potential demonstrating a particularly application innovative of its underground the performance assess better to block cave. cave underground of the new The breakthrough open pit provides of its 30-year-old the bottom into moves ore how Argyle with an opportunity analyse to at the extraction level. and out the cave through 14 13.5 3.1 7.4 11.6 2.8 2.7 9.2 5.1 4.8 3.0 1.2 2015 2015 2016 2016 2013 2014 2013 2014 2015 2013 2014 2016 Carats produced (million carats) produced Carats iamonds production Diamonds production Argyle performance 2016 2013 to Process plant throughput (million tonnes) plant throughput Process Ore grade (carats/tonnes) Ore
Our mine 10 Our health and safety Our health and safety Our
Argyle Diamonds health and safety performance 2013 to 2016
All Injury Frequency Rate (per 200,000 man hours)
2013 2.03
2014 1.35
2015 1.09
2016 1.39 Rio Tinto observes internationally established disappointing increase in the number of lower safety standards, and these are enforced at all of consequence injuries. We will continue with its operating sites, including Argyle. The company’s our multi-year plan to improve safety across all Lost Time Injury Frequency Rate comprehensive system for identifying health and our operations. (per 200,000 man hours) safety hazards is designed to ensure that, from the
2013 first day of employment, all of its workers enjoy 1.88 safe working conditions and, through their own Keeping the traffic flowing safely underground behaviour, contribute to an incident and injury-free 2014 1.11 A new system introduced in 2016 for reducing traffic workplace. Rio Tinto’s sites are audited against these congestion in Argyle’s underground mine is proving standards every two years, with the results reported effective on a range of fronts. 2015 0.89 to its Executive Committee and follow-up actions tracked and monitored. A Business Conformance Since surface operations first moved underground in 2016 1.14 Audit was carried out at Argyle in 2016. 2013, Argyle workers have had to start adjusting to a very different operating environment: real-time physical visibility, positional tracking and quality Number of injuries A sustained focus on avoiding risk communications has proved much more challenging because this is effectively taking place in the dark. 2013 27 The Critical Risk Management (CRM) tracking system was set in motion in November 2015 to help Bottlenecks occurring at certain congestion points in safeguard workers in high-risk situations. Now, all 2014 17 the mine’s 40 kilometres of tunnels were affecting Argyle employees starting a job that involves a both safety and production as heavy vehicles laden critical risk – there are 22 identified as causing the with ore had to slow right down to detect other 2015 11 most workplace deaths in the mining industry – are equipment in the vicinity. Traditional technology required to verify that lifesaving controls are in place solutions such as presence detection devices weren’t 2016 11 and are working by answering a simple ‘yes or no’ very effective and didn’t meet the high safety question. This is loaded into the CRM portal, a standard required by Rio Tinto. real-time system that allows for tracking and solving Number of significant incidents of problems as they arise. If the necessary controls Argyle subsequently worked with mining solutions aren’t in place, then the job stops until the work provider Minetec to develop a better and safer 2013 48 environment is deemed safe. system. This effectively created an underground traffic light system by using the world’s most 2014 30 This system is now maturing and broadening accurate sub-metre, real-time 3D tracking technology through all parts of our business but we need to and enabling it to communicate data back and forth, ensure that our strong focus on risk management 2015 wirelessly, in real time. 20 is maintained in both high and low-risk situations. While the number of significant safety incidents Since the traffic light system was implemented, there 2016 13 decreased this year from 20 to 13, there was a have been no unintended vehicle interactions and 12 13 Our health and safety 15 Emergency team perform brilliantly perform team Emergency passionThe dedication and of the Argyle at shone through response team emergency Competition Response the Mining Emergency 2016. held in November to teams emergency requires The competition their skills, that test situations several respond to road fire, including and teamwork, knowledge confined rescue, space crash, first aid, vertical scenarios. materials and hazardous roadrescue, in the crash prize first out took The team with the and first aid categories, vertical rescue securing overall overall best medic and the team place. third the traffic congestion problem has effectively been has effectively problem congestion the traffic enabling new that this anticipated It is solved. in the other applications will have technology environment. underground fall the Before enthusiastically at Argyle have team The warehouse system, the Critical Risk Management embraced being now applied that are controls safety developing group. the global Tinto Rio across falling objects, specifically for A gap in controls and the stability material of stacked to relating loading/unloadingfreight was identified processes, team. in the warehouse an employee by Over 2016, the a period months during of several and critical controls was fully investigated issue the identified safety address to developed were and made approved was gaps. Final content CRM portal. on the Rio Tinto-wide available This is the first example of operationally-led CRM to be made and it is the first development content each and every on the portal for business. available entire the across felt were the team The actions by performance. safety improve and will help business Argyle contractors for celebration Safety a very a contracting off to good start for 2016 got Owners of the the Traditional runby business Argyle Diamond Mine. Contracting (GJC), Gooring Jimbilia On 6 January, services maintenance which delivers infrastructure the Argyle operations and is basedto at the Argyle a Lost without of 2,000 days a total achieved site, was organised at Argyle Incident. An event Time – a major significant milestone this celebrate to that is indicative of the excellent, achievement the GJC team. by employed practices working safe
Our health and safety 14 Total Employee Numbers
2013 499
2014 592
2015 539
Our people people Our 2016 394 people Our
East Kimberley Employment (%)
2013 43
2014 35
2015 29 Argyle Diamonds workforce figures 2013 to 2016 2016 31
Total Employee Numbers Gender Split Male 2013 499 2013 417 2014 592 2014 518 2015 539 2015 472 2016 394 In 2016, we said goodbye to a number of our Personalised fitness programs, team sports, 2016 348 colleagues as leadership restructures and some meditation and nutritional advice around on-site major roster changes led to some redundancies. meal choices have been supporting workers to stay fit East Kimberley Employment (%) Gender Split and healthy while group activities ranging from pool This had little impact on our local employees from Female competitions to trivia nights encouraged them to flex 2013 43 the East Kimberley (whose representation in 2013 82 the overall workforce increased), our indigenous their social muscles. There is also a new café where 2014 35 employees (whose employment rates remained staff can gather and relax and the theatre screens the latest release movies up to four times per month. 2014 74 steady) and our apprentices and trainees (whose numbers increased to a four-year high). 2015 29 The STRONG program is receiving very positive 2015 69 During 2016, staff were invited to participate in feedback from employees. 2016 31 the Global Employee Engagement Survey, which
2016 has been introduced by Rio Tinto worldwide as a 58 Mates looking after mates Gender Split way of getting a ‘pulse-check’ on the effectiveness Male of the actions leaders are taking to improve employee Indigenous Employment (%) Peer support has a long and rich history at Argyle, engagement. The voluntary survey provides an 2013 417 having been part of our offerings now for more than 2013 13 opportunity for staff to provide candid feedback about what is and isn’t working well in their 30 years; we were one of the first mining operations in Australia to establish such a program. 2014 518 workplace. The survey is open twice per year 2014 12 to all employees and Category 1 contractors (a It provides our staff with onsite, face-to-face support contractor employed by a third party but being 2015 472 from their colleagues, with peer supporters trained 2015 12 explicitly managed within the business equivalent to appropriately refer individuals should they to an employee). 2016 348 require additional assistance. The overall intention 2016 12 is to create a culture of care and engagement, based Gender Split Keeping Argyle workers strong on the firm belief that early intervention leads to Female Apprentices and Trainees better outcomes. In 2016, staff at the mine discovered some attractive 2013 82 2013 22 compensations for the time spent away from their Peer support training was offered again in June 2016. home, thanks to a range of new initiatives being A total of 42 individuals participated in the training, 2014 74 2014 24 offered at the Argyle Village. with 36 of these still remaining in the workplace The new contractor on site, Morris Corporation, following some staff turnover in the second half of 2015 69 2015 21 introduced its STRONG Mind Body Spirit program to the year. We encourage a diverse range of people the site, incorporating health, wellness and social to participate in the training: our motto is “not 2016 58 2016 25 activities to promote personal wellbeing and create everyone is for everyone, but there is someone a stronger sense of community amongst workers. for everyone”. Indigenous Employment (%) 16 2013 13 17 2014 12
2015 12
2016 12
Apprentices and Trainees
2013 22
2014 24
2015 21
2016 25 Our environment 19
Careful waste work is paying dividends for Argyle dividends for is paying work Careful waste over that has been undertaken work The meticulous the type rock and location record of waste time to for a lot easier life at Argyle is making generated planning. those undertaking closure as many present Although diamond mining doesn’t other types risks as of mining – environmental made of non- generally are materials Argyle’s ore that still concerns are minerals – there hazardous exposed, once body, rocks hosting the ore certain sentiments. non-diamondiferous can release into host rock the finds its way As from material understand it is important to dumps, Argyle’s waste standard what is sitting in these piles. Using exactly modelling, has been Argyle 3D computer geological since taken the survey data information accessing map exactly the mine began operation in 1985 to what type are they and where of rocks it has dumped located. now become progressively These survey periods have – from as the mine has progressed frequent more The rock is mapped monthly. to quarterly to yearly of in 2.5m x 2.5m x 2.5m blocks so the resolution the 3D model is very high and the data very specific. to dump This has enabled each block in the waste when it was mined and exactly show be coded to of each the proportions It also indicates dumped. rock type within the survey dumped period, helping potentially where predict to the Argyle teams be found. to is most likely material hazardous this through developed The data and information on those working to through has been fed exercise this work, planning. Through the mine closure understanding of rock type has a better Argyle now what facility, storage locations within the waste under certain result may chemical reactions these materials. can manage we and how conditions clean, where know Argyle to It’s also important for useful rock as this rock maybe is located inert waste the mine of the land once in the rehabilitation us to has closed. conservation of natural resources to promote promote to conservation resources of natural and energy use of water efficient priority or endangered of rare, protection plant species species of exotic management awareness of environmental promotion the workforce throughout sites heritage of indigenous protection and monitoring performance environmental measurement. Argyle’s environmental management program management Argyle’s environmental minimise, prevent, to of projects a range includes mine’s environmental the or remediate mitigate impacts, including: • • • • • • that team environmental Argyle has a dedicated the It ensures program. this management oversees with all environmental current mine is compliant and permits licences legislation, obtains required requirements. reporting environmental and meets been no have Over there years, the past four incidents. significant environmental of water use Better Committee Management During 2016, a Water the site-wide for provide was established to areas Focus issues. of water of a range coordination balance, of the water control improving included through recycled the amount of water increasing from of discharges and the prevention production dams and ponds. investigations major One of the committee’s discharge dewatering underground that determined because it recycling for unsuitable considered – once –was fibres and shotcrete mud excessive contained to qualitybe directed of sufficient now actually Jacko’s plant rather than the process straight back to in the amount a significant increase Dam. This saw 86%), with a 23% to (from on site recycled of water the environment. to in discharge 51% decrease * 54.913 86 640 542 464 461 * * 1,636,065 * 23 14.722 1,128,073 953,241 943,618 0 22.4 0 0 0 11.545 8.248 18.2 2015 2016 2016 2016 2015 2016 2016 2015 2015 2013 2014 2015 2013 2014 2013 2014 2013 2014 2013 2014 bon sequestration from rehabilitation. from of carbon sequestration inclusive *Results Lake Argyle water consumption (ML) water Argyle Lake use (GJ) Energy gas (tCO2-e) Greenhouse (%) recycling Water Incidents Significant Environmental iamonds environmental environmental Diamonds Argyle performance 2016 to 2013
Our environment 18 Our community 21 workshop involved technical experts and closure experts and closure technical involved workshop Owners ensuring specialists, as Traditional as well aspects. and cultural of both technical consideration team Relations 2016 the Argyle Community In June support to meetings of onsite days three co-ordinated the implementation of the Participation Agreement. with the first Manthe of The activities commenced designed to ceremony 2016, a traditional welcoming while country them safe people to and keep welcome was the first this at Argyle. Significantly working established as part of a newly Manthe conducted one of the Consultants, Cultural with Savan contract whose development Owner businesses Traditional Argyle under the by and growth has been supported of 65 of the Participation Agreement. A total terms and visitors contractors peopleArgyle employees, participated in this traditional smoking and water ceremony. As at Argyle, part 2016 engagement of the June board met Trust members of the Gelganyem Owners Relationship of the with the Traditional meeting. crossover their quarterly for Committee board Trust enabled the Gelganyem This meeting Owners with the Traditional outcomes share to their feedback. receive and to with Argyle and concluded meetings The onsite Owner members of the Relationship Traditional significant the culturally to travelling Committee Culture Cross home of the Mirriuwung Gorge, Second Committee Relationship program. The quarterly and this on country was undertaken meeting that was conducive an atmosphere provided meeting a very meeting. to productive point an important touch offer Tours more find out people to indigenous young Helping opportunities about the training and employment in mining is an important commitment available Argyle. for Argyle has in place a Participation Agreement with Argyle has in place ensure Owners of the Argyle land to the Traditional the mine’s operations, from benefitthat they directly – This agreement come. to generations and for now built on the principles of co-commitment, land – encompasses trust partnership and mutual and employment generation, rights, income and opportunities, land management contracting Owner A Traditional protection. site indigenous oversee to regularly meets committee relationship the implementation of the agreement. training, employment As education, well as providing opportunities, the development and business long-term Participation up Agreement has set Traditional Owners for the financial trusts who receive Trusts) and Gelganyem (the Kilkayi to beneficiary indexed that are payments, Argyle’s earnings. to has continued the business Unfortunately, and this was conditions challenging market face made in payments EBITDA in the lower reflected 2016 under the Participation Agreement. Despite to Argyle has continued challenges, these economic as such emerging Aboriginal businesses support Aboriginal to contracts offer and to tourism cultural services provide at the mine to businesses relationships Maintaining good collaboration and communication, Ongoing of Argyle’s the success to is key exchange cultural Owners of the with the Traditional relationship will relationships Argyle land. These trusting transitions be important as the business to continue of the mine. of the life years the latter into with has been discussed openly Mine closure In April years. Owners the last few over Traditional Owner the Traditional from 2016 representatives participated workshop in a Group Working Closure options. This closure discuss to on the Argyle site 325 6.2 6.2 270 252 178 2.6 2.1 2.1 1.7 1.7 1.6 2016 2014 2015 2013 2014 2015 2016 2013 2013 2014 2015 2016 * Earnings before interest, taxes, depreciation and amortisation depreciation taxes, interest, * Earnings before AUD$M Payments Other Agreement EBITDA* payment AUD$M payment EBITDA* Community and Social Investment AUD$K Community and Social Investment Diamonds community Argyle to 2016 2013 figures investments
Our community 20 Our community 23 series
, with Today Getaway We Love Australia Bringing our cultural history to wider audiences historyBringing our cultural to the shared Australia across viewers Television landscapes that Argyle calls home when some the East visited programs well-established television in 2016. Kimberley region rating Channel 9’s top from Presenters presenter and high-profile author Kathy Lette Lette Kathy author and high-profile presenter history cultural and both the geographic discussing man Miriuwung Hall, a respected with Ted of the site East Kimberley who is the Mandangala in North from Tours. of Luridgii owner tourism indigenous to access site Argyle provides local business support Hall, to Ted like providers, and capacity-building.development tours These Argyle’s insights into with rare visitors also provide mining operations and its important relationships Owners. with the land’s Traditional that showcases the most remarkable and picturesque and picturesque the most remarkable that showcases of Australia. regions country’s the the Argyle mine hosted longest- In May, show, and travel running holiday breakfast program broadcast live from Lake Argyle Argyle Lake broadcast program live from breakfast as partin September of their The mine regularly hosts school-based tours for school-based hosts for tours The mine regularly see of varyingstudents them to allowing ages, about the different learn more mining in action, to better mine and to the across type available of work in this live and work to what it takes appreciate personalise the visits, help To kind of environment. to time out and trainees take current apprentices and experiences about their own the groups talk to at Argyle. do they the kind of work of town the nearby men from of young A group the mine in tour to the first group were Warmun women of young this, a group 2016. Following undertaking a hospitality with Kimberley course of how given a taste were Training Group cleaning, transport and catering accommodation, mine site. carriedfunctions on a large out are a football from academy boys of young A group on their the site in the East Kimberley also visited employment exploring potential a sports day, to way finish school. when they opportunities for Argyle’s into feed often tours These introductory individuals pre-employment where programs spend in mining in exploring a career interested gather in-depth to on site days three-and-a-half about training opportunities and information complete Participants successfully who requirements. of Attainment and a Certificate the program receive full-time for employment, be considered may at Argyle. traineeships or apprenticeships gained than 125 Aboriginal peopleMore have the qualifications since nationally accredited Participation Agreement was first signed.
Our community 22 Our product 25 , introduction: “As “As introduction: Beauty with Integrity Beauty and Integrity’s Right across the global business of luxury there is a there of luxury the global business Right across generations demand as new radical shift in consumer thoughtfully and ethically, live more heed the call to Today’s of the planet. future the long-term protect to are that the diamond they know to wants consumer and beautiful has an rare but is not just buying honourable pedigree. publication, Rio Tinto A new the world’s largest producer of natural coloured coloured of natural producer largest the world’s aim to we producer, gem diamonds and a major of the the rest benchmark for an impressive set While continues our journey diamond industry. I am can do, that we more is still much and there on the right track and making we are that confident I hope this publication assures a positive difference. of that. ” you shines a light on Rio Tinto’s endeavour to bring to bring to to endeavour shines a light on Rio Tinto’s radiant in all directions. earth diamonds that are of Copper & Diamonds chief executive As Rio Tinto’s in notes Beauty with Integrity
Our product 24 Our product 27
program took to the to program took TM Indian retailers retailers Indian welcome certification Diamonds The Australian road in India in 2016 as a Chain of Custody program roadIndia in 2016 as a Chain of Custody in country’s cities in the five was launched across regions. northern and eastern central, Australian designs by which featured The roadshow, diamond jewellery between partners, 30 attracted to 40 top jewellery retailers in each city. jewellery retailers 40 top to was system certification of the The introduction with the retailers, by received enthusiastically were workshops Training secured. orders numerous to the five cities sales staff across also organised for and reinforce program the chain of custody promote of storytellingthe importance the Nazraana around close the sales deal. help jewellery collections to chain of custody, certificate of authenticity, of authenticity, certificate chain of custody, sharing and trademark and point of sale materials of importance the increasing that supports research print significant generated The event provenance. and social media coverage. high ensured eight Argyle customers In September, visibility the initiative at one of the world’s for the Hong and most important trade shows, largest dedicated created They and Gem Fair. Jewellery Kong Argyle at their booths that showcased displays jewellery and loose the extensive diamonds, utilising materials. Diamonds™ marketing of Australian range help also on hand to Diamonds staff were Rio Tinto clients and to their retail to the program present trade media. queries from answer
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TM Growing trade and consumer interest in diamond interest trade and consumer Growing the launch to the backdrop provided provenance in China. program Diamonds™ of the Australian the careful initiative promotes This marketing everytracking of Argyle diamonds through stage with purchasers chain, providing of the supply an their diamond is from that reassurance in getting no harm and has done honourable source pull that It also capitalises on the strong market. to part brand has in China, in large the Australian beauty with the rugged of the ancient associated as such treasures, its raw landscapes that supply and silver. diamonds, gold media launched at a trade The program was officially Argyle’s 2016, showcasing in Beijing in August event Australian Australian Diamonds boxes in China boxes
Our product 26 Our productOur Our productOur
A coin to treasure
The first gold coin in the world to feature a Vijay Jain who chairs Tiara Gems and Jewellery significant Argyle red diamond was unveiled in DMCC. July as part of the ongoing partnership between Argyle Pink Diamonds and the Perth Mint. An official effigy of Her Majesty Queen Elizabeth II is on the reverse of the coin, confirming it as legal The AUS$1 million Kimberley Treasure coin is crafted tender. from one kilogram of fine gold and incorporating a 0.54 carat red diamond held between the paws of a The Perth Mint became an Argyle Pink Diamonds bounding red kangaroo. Select Atelier in 2008, since which time several exclusive limited edition ingots and coins featuring The once-only offering was snapped up within symbolic designs of the Kimberley landscape have 48 hours of its release by Dubai businessman Ashish been released. Chroma collection a global hit
Many miles were covered by Argyle’s most coveted Each of the cities welcomed the dazzling collection pink diamonds in 2016. After previewing in in their own style. In Hong Kong, the diamonds were Copenhagen, the 63 diamonds in the 2016 Argyle accompanied by the Argyle Blossom, a multi-million Pink Diamond Tender travelled to Hong Kong, dollar Argyle pink diamond ring comprising six pink New York and London before ending their journey and violet diamonds from previous tenders while, in in Perth for the closing of the bids. New York, the collection provided the inspiration for a US$20 million showcase of iconic pink and blue Named the Chroma Collection because of their diamond jewellery pieces and limited edition potency of colour, the 2016 offering included the collections of exquisite jewellery. 2.83 carat oval-shaped Argyle Violet, the largest The London stopover – the first in four years – violet diamond unearthed from the Argyle mine and celebrated the launch of a new partnership with the largest gem in the collection. It is also the only Boodles, as the Bond Street fine jeweller joined a stone in the tender’s history to carry the colour select group of jewellers from around the world with grading of Fancy Deep Grayish Bluish Violet, making access to Australia’s rare pinks. it unrivalled in its rarity. The Chroma Collection’s global appeal and Master craftsman Richard How Kim Kam spent more extraordinary colour, size and quality combination than 80 hours polishing the 9.17 carat rough into its was reflected in the 2016 Tender results which final, stunning oval shape. This followed months of delivered the highest average price per carat result, careful consideration of the rough gem’s potential including the most valuable violet diamond from the after it was discovered in 2015. Argyle mine. 28 29 Creation of economic value
Creation of economic value
This graph denotes the economic value that Argyle Diamonds has created over the past six years.
2011 2012 2013 2014 2015 2016
Creation of economic value
Employees 501 550 499 592 539 394
Wages and Salaries (AUD$M) 70 82 90 85 87 81
Spend on materials, goods 516 583 483 320 224 170 and services (AUD$M)
Export revenue for Australia (AUD$M) 139 205 257 340 351 307
Royalty payments to WA Government 9.8 10.6 12.9 15.5 15.1 15.1 (AUD$M)
Payroll tax (AUD$M) 4.9 4.4 5.6 4.6 5.5 5.6
Safety
LTIFR (lost time injury frequency rate) 0.46 0.93 1.88 1.11 0.89 1.14 *per 200,000 man hours
AIFR (all injury frequency rate) 0.81 1.04 2.03 1.35 1.09 1.39 *per 200,000 man hours
Staff
Planned Turnover (%) 0.2 6.9 28.6 7.3 3.5 18
Unplanned Turnover (%) 13 11.8 13.2 9.1 8.7 14
Local Employment (%) 64 56 43 35 29 31
Indigenous Employment (%) 22 15 13 12 12 12
Production
Process Plant throughput (mt) 6.4 7.3 7.4 3.0 4.8 5.1 *million tonnes
Ore grade (ct/t) *carat per tonne 1.2 1.2 1.2 3.1 2.8 2.7
Carats produced (mct) *million carats 7.4 9 11.6 9.2 13.5 14
30 31 Further information
For further information contact:
Argyle Diamonds Ltd. postal address Level 22, Central Park 152-158 St George’s Terrace Perth, WA 6000 Phone (61 8) 9168 4900 Fax (61 8) 9482 1161 Email [email protected] Website www.riotinto.com/argyle
Rio Tinto Diamonds Diamond Exchange Building Hoveniersstraat 51, 2018 Antwerpen Belgium Phone (32 3) 303 6800 Fax (32 3) 303 6900 Email [email protected] Website www.riotinto.com/diamondsandminerals
We welcome questions or feedback on this report. Please direct your feedback or queries to: Email [email protected]
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