SuStainable Development Covering health, safety, environmental and community performance for the year ended 30 June 2008 www.bmacoal.com Cover: Lexie Frankham, Goonyella Riverside Mine contents This page: Stuart Davison, South Walker Creek Mine

note from marcelo bastos...... 1

introduction ...... 2

Health & Safety...... 3

Supporting our communities ...... 5

environment ...... 9

indigenous Relations ...... 14

economic ...... 16 01

note from marcelo bastos

Welcome to BHP Billiton During FY08, climate change was Alliance’s (BMA) 2008 Sustainable a key focus area for BMA. Our new Development Report. growth projects have enabled us to take a ‘best practice’ approach This report details the progress we to reducing and mitigating our have made over the past year, our greenhouse gas emissions through current sustainable development a number of avenues including priorities and objectives, and how energy efficiency. we work to manage and govern our sustainability activities. Our Energy Excellence program, which aims at ensuring behavioural We were greatly encouraged by the change, innovation and technological feedback from our 2007 report. We are progress, is a key element of our proud of the progress we have made, overarching climate change approach. but we also acknowledge many areas for further improvement. Needless to say, the biggest environmental and social impact Our commitment to the health and during FY08 was the devastating safety of our people is absolute, and floods, affecting our impacts on the environment all our mine sites. and community also must not be As detailed further in this report, our compromised. employees not only supported our The nature of our business means it communities, but showed enormous takes a strong team effort to realise commitment and team work in these commitments, and I greatly managing the release of water and value the support of all our operations. restoration of our operations. Our ongoing focus on the health I encourage you to provide feedback and safety of our employees was on our performance and this report. We are proud of the demonstrated through our improved Please share your views by filling out progress we have reporting statistics and in the the feedback form at the end of this report. We look forward to hearing made, but we also reduction in our Reportable Injury Frequency Rate from FY07. from you. acknowledge many areas for further However, despite this improvement, improvement. we are a long way off what we need to achieve and we must keep safety at [Marcelo Bastos , the forefront of everything we do, at Chief Executive Officer] work and at home.

Marcelo Bastos Chief Executive Officer

BMA SuStainable development RepoRt 2008 introduction

BHP Billiton Mitsubishi Alliance Basin coal mines – Blackwater, (BMA) is Australia’s largest exporter Broadmeadow, Goonyella Riverside, 2008 Scorecard of seaborne metallurgical coal. Our Peak Downs, Saraji, Norwich Park (Year ended 30 June 2008) mines have a combined production and Gregory Crinum – and the Hay capacity of more than 58 million Point coal export terminal near Recordable Injury 12.2 tonnes per year, and almost all of the Mackay. Frequency Rate coal produced is used overseas in In addition, BMA manages two mines steel making. BHP Billiton HSEC – Poitrel and South Walker Creek – 4.0 Performance Rating BMA was formed in 2001, as a on behalf of BHP Mitsui Coal Pty Ltd, (Av)* partnership between BHP Billiton which is owned by BHP Billiton (80 and Mitsubishi Development per cent) and Mitsui and Co (20 per Environmental Protection Pty Ltd under which the two cent). 3.0 Agency Performance companies share equal ownership Rating (Av)** and management of seven Bowen Production 50.7 (million tonnes) Zero Harm: Our aspirational goal that reflects our Shipments 53.1 continual drive to minimise harm to people, our host (million tonnes) communities and the environment from our activities. *Range 1–5 (5 is best) **Range 1–5 (1 is best)

ABBOT POINT COAL TERMINAL 02 Bowen Collinsville

LEGEND

MACKAY BMA open-cut mine DALRYMPLE BAY COAL TERMINAL BHP Mitsui open-cut mine Glenden HAY POINT COAL TERMINAL Sarina BMA underground mine BMA proposed mine BROADMEADOW Nebo BMA export port GOONYELLA RIVERSIDE SOUTH WALKER CREEK 0 20 40 60 80 Moranbah POITREL Kilometres DAUNIA CAVAL RIDGE PEAK DOWNS SARAJI Dysart

NORWICH PARK Middlemount Clermont Tieri Capella GREGORY Yeppoon CRINUM ROCKHAMPTON EMERALD Blackwater R.G. TANNA COAL TERMINAL BARNEY POINT COAL TERMINAL BLACKWATER

GLADSTONE

Springsure

Biloela Thangool Moura health and safety

The health and safety of our incidents. This is emphasised by In addition, BMA has also: employees is the first priority of our desire to eliminate Zero Barrier • Commenced the Training and our company. We are committed to incidents, improve the quality of Access Management System creating a workplace that is injury, significant incident investigations, project (TAMS) to standardise illness and incident free, and seek to incorporate hard controls wherever mine and port entrance points and achieve this by creating a mindset and possible, and take lessons learnt from business processes an environment where people believe past safety incidents and implement • Held Contractor Management these objectives are possible. corrective actions across the business Forums to foster alignment with It starts with leaders demonstrating an to ensure they don’t occur again. BMA programs and goals overriding commitment to everyone’s Our ‘One BMA’ projects are • Introduced an equipment care and wellbeing, and ends with focussed on addressing our key compliance program to ensure a safety culture where every person risks and include: all vehicles entering sites are shows a genuine desire to assist and • the installation of an in-vehicle compliant with BHP Billiton support each other in the pursuit of management system in all of our Fatal Risk Control Protocols and Zero Harm. light vehicles, Standard Operating Procedures We acknowledge that injury reduction • the introduction of collision • Developed a BMA change programs alone will not prevent avoidance technology, management standard, training fatalities, so we are increasingly package and templates. Roll-out • a behavioural based peer-on-peer focused on eliminating fatal risks. commenced at Broadmeadow and observation program, BMA’s compliance with BHP Goonyella Riverside mines • ZIP safety education program, Billiton’s Fatal Risk Control • Developed a BMA supervisor Protocols (FRCPs) form an integral • Optalert fatigue assessment and Competency Course to meet part of this focused effort. early warning technology, and Queensland coal legislation ABBOT POINT COAL TERMINAL Bowen The FRCPs were developed after • the evaluation of the single and • Implemented a new BMA Safety a rigorous, internal analysis of multiple fatality exposures across Observation Program to replace the significant past incidents and all sites. DuPont process previously used fatalities. Our sites are regularly Our focus was demonstrated during • Undertaken an analysis of Collinsville audited by BHP Billiton, and review Safety Week, a company-wide injuries over the past five years their own compliance through self- initiative to refocus all employees’ to determine causes and trends assessments and the BMA Equipment attention on safety and prevent as part of the injury reduction LEGEND Compliance inspection process. fatalities. The week included program MACKAY BMA open-cut mine Furthermore, BMA has established workshops and feedback sessions • Analysed and documented the DALRYMPLE BAY COAL TERMINAL BHP Mitsui open-cut mine targets to stretch our proactive aimed at providing supervisors with physical demands of all tasks at Glenden HAY POINT COAL TERMINAL reporting of potentially significant additional safety leadership skills. BMA in the JobFit System for use Sarina BMA underground mine in rehabilitation programs BMA proposed mine • Implemented a standardised BROADMEADOW Nebo BMA export port GOONYELLA health and occupational hygiene RIVERSIDE SOUTH WALKER CREEK record system, making BMA one 0 20 40 60 80 Moranbah POITREL Kilometres of the first BHP Billiton businesses DAUNIA CAVAL RIDGE globally to implement such a PEAK DOWNS HOW WE PERFORMED (Year ending June): system Recordable Injury Frequency Rate SARAJI • Commenced a hygiene monitoring and support services program Dysart 22.5 which started with a survey NORWICH PARK 20.4 conducted at each site to direct Middlemount future noise and air quality Clermont 17.2 Tieri 16.6 exposure monitoring programs. Capella GREGORY Yeppoon 14.1 BMA’s overriding commitment to CRINUM 12.2 We improved our health and safety is embedded in the ROCKHAMPTON Recordable Injury EMERALD Frequency Rate (RIFR) BHP Billiton Sustainable Development Blackwater Policy. This means we will not R.G. TANNA COAL TERMINAL for the 2008 financial BARNEY POINT COAL TERMINAL compromise our safety values, and BLACKWATER year from 14.1 to 12.2, but missed our target we will identify, assess and manage GLADSTONE of 11.3. risks to employees, contractors, the environment and our communities. Springsure 2003 2004 2005 2006 2007 2008

Biloela Thangool BMA Sustainable development Report 2008 Moura 04 key safety initiatives

A new method for accessing and Dozer Blade Lift Cylinder Light Bracket Modification repairing lights on dozers was Goonyella riverside mine developed by Goonyella Riverside Mine’s mobile maintenance group, saving time and significantly reducing the safety hazards associated with the task. Repairing lights on dozers has historically been a high risk job, as lights usually break down when the dozer is operating in the field. The Dozer Blade Lift Cylinder Light Bracket Modification was designed by Brendan Buckton, Kevin Dalton and Dennis O’Flanagan to provide safe access (in any location) by eliminating the need to work at heights. Instead, the operator lowers the light bracket using a rope until it is securely in place. This allows maintenance to be carried out below the working at heights threshold of 1.8 metres. For a task that is undertaken up to three times per night, the benefits of this modification will be substantial.

shovel underbody cleaning Blackwater mine

Employees at Blackwater Mine have developed an innovative method to remove the unstable and hardened material that frequently forms on the underbody of a shovel. The previous techniques, which saw employees climbing under the shovel, were called into question following an incident where a shovel was bogged, and the process of cleaning the mud raised a number of safety hazards and risks. Blackwater Mine employees, Deon Howells, David Byrne, Greg Hinchliffe and Ronald Hochmuth, developed a solution that allowed the underbody to be cleaned without anyone in the immediate working area. Coordinated via remote control, the cleaning vessel is mounted on a movable platform ensuring all personnel are away from the dozer’s risk zones. Kevin Dalton and BMA will replicate these and other Dennis O’Flanagan, key initiatives across all our sites. Goonyella Riverside Mine supporting our communities

BMA believes that supporting the BMA’s community engagement The agreement aims to strengthen townships where our employees live on future projects is partnerships between government, involves more than just providing detailed on page 15. industry and local communities, and financial support; it is about working will be backed by a $100 million BMA was a key initiator and leader in partnership with the communities funding program from the Queensland in the development of the Sustainable to create positive outcomes and long- Government over three years for Resource Communities Agreement, term benefits. economic and social infrastructure, signed in 2008. such as healthcare and schooling in We recognise that services in regional regional mining communities. communities are not always on a par with bigger centres, so we aim to improve the quality of life for Residents of Dysart our employees and their families by helping to upgrade town facilities and working with Government to improve regional living. 05 We facilitate this through our Community Investment Program, through which we invested over $22 million in FY08. The Program includes regional infrastructure support, our well established Community Partnerships Program, ‘Landmark’ projects, local site initiatives, and our Skills for Growth program. These are explained further on page 6. We actively seek community and employee input into these programs, and endeavour to establish regular and open communication through a variety of activities. These include consulting with groups who have specific interests (such as environmental management), engagement through community reference groups, site tours, information sessions for Government including local Council, public open days, stakeholder forums, complaints tracking and management, perception surveys, magazines and newsletters as well as formal reporting.

BMA Sustainable development Report 2008 Regional Infrastructure Support • Arts, Entertainment and Cultural • the Dysart Multi-purpose Sports $14.8 million per annum Development; and Centre (proceeding shortly to detailed design following approved BMA provides long-standing regional • Environment and Sustainable Commonwealth funding). infrastructure support through local Development. councils and government where Programs supported through the Local Site Initiatives BMA townships are established. CPP included: Learning Network This includes: Queensland, CQ Youth Workers, Be $4.7 million per annum • funding through Council rates More Active – Moranbah, Salvation Each BMA site and office take pride and special levies; and Army Moneycare, Sustainable in playing an active role within the • subsidies and allocations including Landscapes and Musica Viva. For community and supporting local maintenance of local roads more information on the CPP, refer initiatives and projects. We also and airports and other council to the case study on page 7. support our employees’ initiatives and infrastructure, facilities and water. involvement with local community Landmark Projects groups and events. Community Partnerships $3.25 million over FY07 and FY08 Sites contribute to a range of Program (CPP) In response to the specific needs of community support activities, $1 million per annum our communities, we are investing in covering areas such as local business development, community health, We work with our communities to significant, or ‘landmark’ projects to environment and sport and recreation. develop partnerships that create further improve the towns in which sustainable value for all. We supported our people live and work. In addition to this, significant 23 regional community programs in BMA’s Landmark projects are donations in FY08 were made to the FY08 under the following categories: coordinated in conjunction with the Emerald and Mackay flood relief • Youth Development; Queensland and Commonwealth programs, and the Queensland Cancer Foundation. • Economic Development/ Governments, local Councils and in Business Skills Training; some cases, other coal companies and industry bodies. Skills for Growth • Community Development and Welfare; Projects underway include: $925,000 per annum (plus wages and salaries) • Community Safety, Sport, • the Blackwater International Wellbeing and Recreation; Coal Centre (opened in BMA has taken a wide ranging August 2008); and approach to attracting and retaining skills in key areas of mining. Initiatives include: • engineering partnerships with The University of Queensland and Central Queensland University; • graduate scholarships, a Cadetship 06 Program and an Engineering Extension Program; and • support for industry initiatives through the Queensland Minerals and Energy Academy. In addition to these initiatives, many BMA employees contribute to their community through volunteering, fundraising for community organisations, or making donations to charity. Through the BHP Billiton Matched Giving Program, the company Dysart Men’s financially doubles this contribution Health Expo by ‘matching’ the amount provided to local organisations. 07 case study

Community partnerships program – continuous improvement

“The relationship with BMA has been good – it has given us new skills and broadened the knowledge base.”

“BMA do community engagement well, they are sincere about it and the Community Partnerships Program.”

Moranbah Library As part of our commitment to in leveraging matched funding from continuous improvement in our government departments and local communities, BMA commissioned councils. Project partners identified an independent expert review into the CPP’s focus on local community the performance of its Community needs, as identified by the community, Partnerships Program (CPP) in FY08. as a “great strength” of the program. Formed in 2002, the CPP was The review also highlighted some of established to address social needs the difficulties faced by partners in by developing partnerships that focus managing cross-institutional projects on creating sustainable value. BMA and how regular reporting processes allocated $1 million to 23 projects could be further improved. operational during FY2008. Projects The reviewers made a number of supported fall into one of six CPP recommendations to improve the categories (see page 4). operation of the CPP and to ensure Reviewers from The University the CPP maintains its relevance of Queensland’s Centre for Social within the local region. Responsibility in Mining spoke to CPP The review recommendations will project partners throughout the Bowen be discussed with project partners Basin about the program’s operation, to determine what needs to be done effectiveness and measures of success. to strengthen the CPP and ensure Overall, the reviewers found that it continues to deliver positive the CPP was highly valued by its and sustainable outcomes for the partners and that it had been effective communities of the Bowen Basin.

BMA Sustainable development Report 2008 08 case study 2008 Central Queensland floods

During January and February this year, Salvation Army and local community While dewatering continues only at Central Queensland experienced recovery groups, allocating $110,000 Goonyella Riverside Mine, a number severe flooding. While the floods to more than 20 community and of sites still have significant water impacted on our operations they also sporting groups. volumes in pits, and mud removal caused havoc and a challenging clean continues at all mines. A key recipient of the funding in up in the communities where our Emerald was the Central Highlands The impact on the business has been employees and their families live. Development Corporation who looked considerable, with Force Majeure on Many of our employees, particularly at the economic impacts the floods sales to customers announced on those from Gregory Crinum Mine and had on local businesses and industry. 24 January and lifted on 5 June, Hay Point Coal Terminal, volunteered with expected losses reaching eight The impact on a number of our sites their time to evacuation support, million tonnes. was significant, with many isolated providing emergency housing and for up to seven days, and some parts To ensure that such impacts are ensuring that houses were safe from of our mines inaccessible for almost minimised in the future, we have electrical risks before people returned two months. improved our preparation for the next to their homes. wet season by increasing water storage With access restored, initial As a company, BMA provided and upgrading water management responses included the coordination financial support through the systems and monitoring capability. of supplies (such as fuel), and the Premier’s Appeal Fund and also release of water. through local donation programs for community groups established in BMA has been working closely with both areas. the Environmental Protection Agency to maintain water quality in In both Emerald and Mackay, we downstream creeks. Flooding severely impacted the worked in partnership with the town of Emerald in January 2008

Photo courtesy of Central Queensland News. environment

BMA operations are centred on Figure 1: BMA LAND USE long term sustainability to provide a platform for growth. 50 50 This means that while the company grows in economic importance, we 40 40 simultaneously progress our sustainability performance in 30 30 environmental management. This performance is not only 20 20 critical to maintain our licence to

operate, but also for our own goal under rehabilitation (%)

Hectares disturbed and 10 10 under rehabilitation (’000s) of Zero Harm. Proportion of affected land

We pursue a range of programs to 0 0 improve our performance toward this Year to June 2004 2005 2006 2007 2008 goal, and have set specific targets in Area disturbed areas such as land, water, energy use by mining (’000s ha) 36 38 39 41 42 and air emissions. Area under In FY08, we focussed on a number of rehabilitation (’000s ha) 10 10 10 10 9 key areas to improve performance: • Many sites are commissioning % of affected land area under rehabilitation 27.01 26.46 26.45 24.44 21.3 water management models to test impacts of various rainfall events. This will minimise disruption to operations and ensure compliance with water release conditions. • Closure concepts are now integrated into site landform planning. This will reduce the Figure 2: HIGH QUALITY (PIPELINE) WATER CONSUMPTION number of ramps and ensure the material is available for spoil 15 375 dumping. Longer term mine planning takes into account the 12 300 final rehabilitated landform.

• We are working with the relevant 9 225 authorities to secure environmental approvals for growth projects. While some 6 150 projects can be covered through

amendments to existing 3 75 Litres per tonne of coal

approvals, we must prepare Megalitres consumed (’000s) Environmental Impact Statements 0 0 for significant new projects. Year to June 2004 2005 2006 2007 2008 • Biodiversity management plans are being developed for all sites to Raw (piped) water 13.086 10.243 12.787 13.426 9.105 conserve biodiversity values and consumed (’000s) to allow integration of unmined Raw water per areas into closure plans. tonne of coal 261 181 236 231 180

BMA Sustainable development Report 2008 Over the past year our key Land management Water Management achievements included: The area disturbed by mining In the past year, BMA has reduced • Norwich Park Mine regained the over the past year increased by consumption of high quality (pipeline) Environmental Protection Agency’s 1,000ha to 42,000ha, a steady water by a significant 32 per cent. (EPA) Performance Category 1. This upward trend aligned to our This decrease, due partly to the water is a great achievement, with very few planned mining activities. mines qualifying for such a rating. saving techniques implemented by our The area of land under rehabilitation sites, also relates to the increase in use • BMA adopted an electronic data fell slightly to 9,000ha for two reasons. of on-site water. management system, EnviroSys, to Firstly, a number of the sites have ensure managers are notified of Due to the flooding earlier this year, stockpiled spoil on rehabilitated areas potential non-compliance in our on-site storage has increased, due to existing stockpiles reaching relation to water, noise and allowing sites to draw large amounts capacity. This situation is not ideal, air quality. of stored water for activities such as and is being reviewed in future washing and coal processing that have • As part of our ongoing program of mine planning. developing Indigenous cultural relied on pipeline water in recent heritage awareness, the Traditional Secondly, areas to be rehabilitated are drought years. on such a large scale that it is more Owners (Barada Barna Kabalbara & BMA worked closely with the EPA economical to undertake one large Yetimarla) established a garden to following the flooding to ensure water rehabilitation project than do small exhibit artefacts at Goonyella release flowing into creeks met strict sections each year. Riverside Mine. water quality criteria. • BMA secured a new single These larger projects are planned as Our ongoing water supply activities Environmental Authority for part of our mine life planning, which during the year included pumping Norwich Park Mine which identifies post-mining landforms as almost 15,000Ml of water to the BMA includes the new East Pit area. well as future rehabilitation areas to and BHP Mitsui sites, three towns, fit in with current and future • Following the floods, the EPA two non-BMA sites (German Creek mining activities. allowed mines to release water into and Kestrel Mines) and 350 stock and flowing creeks at a rate greater than domestic consumers through 600km of normally allowed, under strict pipelines and 36 pumping stations. downstream water quality criteria. These arrangements assisted considerably in site recovery from the floods. 10 11 case study

Our Climate change journey

BMA acknowledges the risks posed projects will be progressively South Wales and a feasibility study by climate change and understands rolled out company-wide (see into the proposed ZeroGen integrated that the only realistic way to case study, page 13). gasification combined cycle project in combat that change is by reducing Central Queensland. We also continue to fund a variety of greenhouse gas emissions. climate change mitigation initiatives, Further to this, mapping studies As we continue to grow our such as the Australian Cooperative are underway in Queensland and business, we also resolve to improve Research Centre for Greenhouse Gas New South Wales to better assess the energy efficiency of our new and Technologies, through the Australian carbon storage potential as a key existing operations and minimise the Coal Association’s Research Program supporting element for both pre growth in our emissions. that undertakes leading research into and post combustion demonstration the development of technologies technologies. BMA plans to manage our energy for carbon dioxide capture and use and greenhouse gas emissions BMA places equal importance on the geological storage. through two key measures: need to raise awareness amongst our • We are investigating the BMA is a major driver and financial employees and communities about feasibility of harnessing some contributor to the Australian Coal climate change issues and responsible of the methane released to the Association’s COAL21 initiative, energy use. raising an estimated $1 billion over atmosphere during mining. Tackling climate change is a shared the next 10 years for the research, Possible uses include supplying responsibility, and we aim to give our development and demonstration gas to the domestic market and employees the right tools to make a of clean coal technologies aimed at on-site power generation – contribution at work and home. these and other options will be combating climate change. considered. Through this fund BMA supports • BMA’s Energy Excellence new low emission demonstration (EEx) program is identifying projects, including the Callide and trialling potential energy Oxyfuel project in Central efficiency improvement projects Queensland, the Munmorah Post at selected sites. Successful Combustion Capture project in New

BMA places equal importance on the need to raise awareness amongst our employees and communities about climate change issues and responsible energy use.

Water monitoring at Norwich Park Mine

BMA Sustainable development Report 2008 12 Figure 3: ENERGY USE and INTENSITY Energy Management BMA’s use of energy increased over 20 0.5 the past year both in total energy consumption and energy intensity 0.4 (per tonne of coal produced) (see 15 Figure 3).

0.3 After a slight drop in intensity in 10 2007, our energy consumption and 0.2 energy intensity in 2008 continued

Petajoules of the upward trend that has been 5 evident since 2001. Gigajoules per tonne energy consumed (PJ) 0.1 of coal produced (GJ/t) Our increasing energy intensity is related to the maturity and depths 0 0 of our operations. With our trucks Year to June 2004 2005 2006 2007 2008 and other mobile equipment having to work harder and travel further Petajoules of energy 13.09 14.92 17.69 17.35 17.8 consumed (PJ) for every cubic metre of earth moved, and our draglines and Gigajoules per tonne shovels having to excavate greater 0.251 0.284 0.326 0.298 0.4 of coal produced (GJ/t) volumes of overburden for every tonne of coal exposed for mining, our use of diesel and electricity per tonne of final product has risen over time.

Figure 4: GREENHOUSE GAS EMISSIONS and INTENSITY Greenhouse Gas management BMA’s emission of greenhouse gases 5 0.10 is based on our consumption of energy (electricity and diesel fuel) 4 0.08 and our estimated emission of coal seam methane during production 3 0.06 (see Figure 5). per tonne 2 As these factors increase due to the equivalent

2 2 0.04 age, scale and depth of open cut

CO mining, BMA’s energy and Million tonnes of of coal produced greenhouse emissions per tonne of 1 0.02 Tonnes of CO coal have increased over the past year (see Figure 4). 0 0 Year to June 2004 2005 2006 2007 2008 Despite this intensity increase, our total greenhouse gas emissions actually dropped 3 per cent to 4.05 Total GHG emissions 3.28 3.74 4.37 4.19 4.05 million tonnes (of CO2 equivalent), a reduction due mainly to our Emissions per tonne of coal produced 0.063 0.066 0.081 0.072 0.08 reduced production in the second half of the year with the widespread flooding.

Figure 5: GREENHOUSE GAS EMISSIONS BY SOURCE (FY08)

Fuel 23%

Methane 46% Electricity 31% 13

DRAGLINE Bucket efficiency south walker creek mine

BMA is committed to environmental responsibility and sustainable development, and through the Energy Excellence Program (EEx), we aim to reduce energy and greenhouse intensity across our operations. Through steering committees and site ownership of the EEx Program, BMA has identified a number of projects to reduce energy consumption. One of these initiatives, dragline bucket efficiency, is already showing significant results, with energy reductions of 20 per cent when filling the bucket. Estimated electricity savings are in the order of 630 megawatt hours (MWh), equal to turning off power to approximately 500 homes for one year. The project stemmed from BMA’s dragline fleet upgrade study (at South Walker Creek Mine) aimed at increasing the payload capacity of each bucket by 25 per cent. To increase the new bucket’s weight (or payload) capacity by this level, to the desired 125 per cent of the dragline’s ‘rated suspended load’, the shape of the bucket was altered South Walker Creek Mine’s to obtain the optimal relationship energy efficient dragline bucket between bucket mass, height and width for filling efficiency. Ordinarily, a bigger and wider bucket would mean the dragline suspends a heavier payload and uses more energy; however, it was a key goal to not only increase the bucket’s load but also maintain, or reduce, the energy required to fill the bucket. Following the studies, designs were approved for the development of a light-weight bucket, with a more Energy Excellence is our way of improving streamlined design to improve our energy efficiency at each site and removal of spoil when in operation. The redesigned bucket and rigging reducing our greenhouse gas intensity to weighs 62 tonnes, and can carry up ensure a cleaner future for our business to 109 tonnes per load. and our community. Now in full operation at South Walker Creek Mine, the energy required to fill the bucket has reduced by 20 per cent. Similar bucket efficiency designs are being case study replicated at BMA’s Blackwater, Peak Downs and Goonyella Riverside Mines.

BMA Sustainable development Report 2008 indigenous relations

BMA is committed to creating Sites also engage the services of sustainable benefits for the Indigenous contractor groups for communities in which we operate, land management and agistment, including the Bowen Basin’s regional and planning has begun for specific Indigenous community. biodiversity projects to offset land disturbance. Poitrel Mine will trial the We aim to continue our contribution first biodiversity project in FY09. to the protection and conservation of Indigenous cultural heritage, BMA’s relationship with Barada Barna and maintain our relationships Kabalbara and Yetimarla (BBKY) was with claimant groups by working strengthened during FY08 with the in partnership with custodians, opening of a cultural heritage garden traditional owners and at Goonyella Riverside Mine. representative bodies. The garden, landscaped with Each operation has a site-specific interpretative signs and sandstone cultural heritage management plan pathways, features stone artefacts (CHMP) signed in agreement with collected during cultural heritage the Traditional Owner groups. surveys, and a replica sandstone This allows each site to develop shelter and campfire. The garden relationships with the group, and will help create awareness and covers negotiation on a site basis understanding and respect for the A Cultural Heritage survey specific to cultural heritage. traditions of the Indigenous people. being undertaken by BBKY 14 15 case study

Growing BMA sustainably

BMA continues to build upon its Feedback from these workshops is mines and potential regional strong position within the coal sector. being incorporated into the design impacts. Key areas of interest Our growth options include the and planning of the projects. included employment expansion of existing operations and opportunities, accommodation To ensure community and government the development of new mines, with for new employees, environmental were fully engaged in our growth up to 11 projects planned for Central concerns, local facilities and strategy, BMA worked to provide Queensland in the coming years. impacts on local lifestyles. the community with accurate and Daunia and Caval Ridge Mines are our current information, through an open BMA established a community first two proposed operations, both and transparent consultative process, reference group to discuss key located in the Moranbah region. and to align with local and regional issues and to work with BMA to Our commitment to sustainable councils and key influencers. determine appropriate mitigation development has been integrated strategies, supported by ongoing BMA conducted nine community into growth processes from the mine meetings with the Isaac Regional displays during May and June planning stage of these projects. This Council to minimise our impacts 2008. Around 760 people had the has resulted in BMA taking a ‘best- on both the community and the opportunity to ask questions and practice’ approach to community local environment. provide comments about the proposed consultation and sustainable operations. Internal workshops were conducted to review and determine areas of BMA’s community display opportunity and risk within the offering information on sustainability framework. This proposed growth projects covered aspects of social, economic and environmental sustainability, including: • Energy efficiency • Greenhouse Gas reduction and mitigation • Protecting endangered regional ecosystems • Water management • Community engagement • Regional investment • Sourcing a workforce for construction and operation, and • Indigenous relations.

Sustainable Development: development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

BMA Sustainable development Report 2008 economic

The economic contribution we make Economic contribution in FY08 to Queensland, and to Australia, is large and diverse on any standard, and includes the value that flows from the broader contributions of our 9,800 $1,341M operations, such as payments to our Number of employees Equipment, Goods employees and suppliers, and taxes (including contractors) & Services from and royalties to governments. CQ Regional Business

The Market for our Coal 8.6% Female employees $1,131M BMA worked closely with its Equipment, Goods & customers throughout the year to Services from other ensure we met their needs and $651M Queensland Business expectations. While the declaration Wages and salaries of Force Majeure due to flooding during the year posed a challenge for $1,007M our customers we kept them updated Equipment, Goods & on our progress in recovery and the $396M Services from other Coal Royalties delivery of product. Australian Business During FY08, we supplied coal to 77 customers in 24 countries, $290M including some domestic customers Queensland Rail in Australia. Our global marketing freight charges network includes regional offices with local representatives and a strong technical support team to work with customers and marketers on our range Through our Skills For Growth of products. program we support: The market for seaborne metallurgical coal continued to tighten throughout the year with high prices achieved for 153 our products and by our competitors. Apprentices This growth was sourced in traditional markets as well as the strongly developing markets of India, China 75 and Brazil. Vacation students The growth in these countries, particularly India, is well known and all three continue to increase 59 their steel-making capacity with Graduates new blast furnaces. Growth of this magnitude has a wide-reaching impact and metallurgical coal has a 33 key role to play, long term, in Trainees fuelling this growth. Photo caption?? The long term demand outlook for 33 BMA’s range of products is strong. University Scholarships While the early 2008 weather conditions have impacted Australia’s supply of product, the outlook is for 32 strong growth in the sector. Australian Cadets producers, including BMA, have an enormous opportunity to meet this demand due to our resource base and 3 close proximity to key markets. BMA Engineering Extension is positioning its growth projects to Program participants seize this opportunity. SuStainable Development

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