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, Biloela 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 Queensland 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