best management 2

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INDIA-ENVIRONMENTAL MANAGEMENTCAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT:

MINING SUB-COMPONENT

Ministry of Environment and ForestsGovernment of India

BEST MANAGEMENTPRACTICES MANUAL

Volume II[ACTIVITY II A: TASK-1 (iii)]

\

Final Draft - February 2003

Prepared by

MWH Energy & Infrastructure, Inc., Mining Group (USA)

Executing Agency:Centre of Mining Environment,

Indian School of Mines, Dhanbad


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INDIA-ENVIRONMENTAL MANAGEMENTCAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT:

MINING SUB-COMPONENT

Ministry of Environment and ForestsGovernment of India

ACTIVITY II A: TASK - [1 (iii)]

BEST MANAGEMENT PRACTICES MANUAL:Volume II, Case Studies of Model Zinc, Bauxite, Iron Ore,

and Limestone Mining Operations

Final DraftFebruary 2003

Prepared byMWH Energy & Infrastructure, Inc., Mining Group (USA)

Executing Agency:Centre of Mining Environment,

Indian School of Mines, Dhanbad


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MWH Job No. 2470217.011803 i Best Management Practices Manual,Volume II

TABLE OF CONTENTS

LIST OF ACRONYMS.............................................................................................................. iii

1.0 INTRODUCTION ...........................................................................................................1-1

1.1 OVERVIEW................................................................................................................... 1-11.2 PURPOSE .................................................................................................................... 1-1

2.0 ZINC CASE STUDIES................................................................................................... 2-1

2.1 COPPER/ZINC CASE STUDY: ANTAMINA MINE................................................................ 2-12.1.1 Operational Features and Key Issues .............................................................. 2-12.1.2 Management Philosophy .................................................................................. 2-1

2.1.2.1 Environmental Responsibility ....................................................................................2-22.1.2.2 Health and Safety Responsibility...............................................................................2-22.1.2.3 Social Responsibility .................................................................................................2-22.1.2.4 Sustainable Mining Communities ..............................................................................2-3

2.1.3 Implementation of Best Management Practices ............................................... 2-52.1.3.1 Example: Huascarn National Park...........................................................................2-62.1.3.2 Example: Antamina Tailings Impoundment Facility ...................................................2-7

2.1.4 Lessons Learned .............................................................................................. 2-72.2 ZINC CASE STUDY: HINDUSTAN ZINC LIMITED ............................................................... 2-8

2.2.1 Operational Features and Key Issues .............................................................. 2-82.2.1.1 Operating Mines........................................................................................................2-92.2.1.2 Operating Smelters ...................................................................................................2-9

2.2.2 Management Philosophy ................................................................................2-102.2.3 Implementation of Best Management Practices ............................................. 2-10

3.0 BAUXITE CASE STUDIES............................................................................................ 3-1

3.1 BAUXITE CASE STUDY: ALCOA MINE............................................................................. 3-13.1.1 Operational Features And key Issues............................................................... 3-13.1.2 Management Philosophy .................................................................................. 3-2

3.1.2.1 Alcoas Bauxite Mine Rehabilitation Standards and Guidelines ................................3-33.1.2.1.1 General Responsibilities ..................................................................................3-43.1.2.1.2 Budgeting.........................................................................................................3-43.1.2.1.3 Investigations...................................................................................................3-43.1.2.1.4 Planning...........................................................................................................3-43.1.2.1.5 Techniques and Procedures............................................................................3-53.1.2.1.6 Decommissioning and Divestiture....................................................................3-73.1.2.1.7 General............................................................................................................3-7

3.1.3 Implementation of Best Management Practices ............................................... 3-83.1.3.1 General Principles .....................................................................................................3-83.1.3.2 Rehabilitation at Alcoa...............................................................................................3-9

3.1.3.2.1 Past Reclamation Practice...............................................................................3-93.1.3.2.2 Present Reclamation Practice..........................................................................3-93.1.3.2.3 Reclamation Techniques ...............................................................................3-103.1.3.2.4 Reclamation Monitoring .................................................................................3-11

3.2 BAUXITE CASE STUDY: INDAL ..................................................................................... 3-123.2.1 Operational Features and key Issues.............................................................3-123.2.2 Management Philosophy ................................................................................3-12

3.2.3 Implementation of Best Management Practices ............................................. 3-13

4.0 IRON ORE CASE STUDIES ......................................................................................... 4-1

4.1 IRON ORE CASE STUDY: HIBBING TACONITE COMPANY................................................. 4-14.1.1 Operational Features and Key Issues .............................................................. 4-14.1.2 Management Philosophy .................................................................................. 4-14.1.3 Implementation of Best Management Practices ............................................... 4-2

4.1.3.1 Environment ..............................................................................................................4-24.1.3.2 Safety ........................................................................................................................4-2

4.2 IRON ORE CASE STUDY: KUDREMUKH .......................................................................... 4-3


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MWH Job No. 2470217.011803 ii Best Management Practices Manual,Volume II

4.2.1 Operational Features and Key Issues .............................................................. 4-34.2.2 Management Philosophy .................................................................................. 4-34.2.3 Implementation Of Best Management Practices .............................................. 4-4

4.2.3.1 Stormwater and Sediment Control ............................................................................4-44.2.3.2 Afforestation..............................................................................................................4-44.2.3.3 Social Contribution ....................................................................................................4-5

5.0 LIMESTONE CASE STUDIES ......................................................................................5-1

5.1 LIMESTONE CASE STUDY: LAFARGE GROUP ................................................................ 5-15.1.1 Operational Features and Key Issues .............................................................. 5-15.1.2 Management Philosophy .................................................................................. 5-15.1.3 Implementation Of Best Management Practices .............................................. 5-1

5.1.3.1 Quarry Site Selection ................................................................................................5-25.1.3.2 Minimising the Impacts of Quarrying .........................................................................5-25.1.3.3 Quarry Rehabilitation and Land Planning..................................................................5-2

5.1.4 Rehabilitation of the Weissenegg Quarry, Austria............................................ 5-25.2 LIMESTONE CASE STUDY: MEGLAHAYLA MINE, INDIA ..................................................... 5-3

5.2.1 Project Description............................................................................................ 5-35.2.2 Legislative, Best Practice Standards and Corporate Consideration................. 5-4

5.2.2.1 Legislative Requirement............................................................................................5-45.2.2.2 World Bank Policies and Guidelines..........................................................................5-45.2.2.3 Corporate Policy Statements.....................................................................................5-5

5.2.2.4 Other Best Practice Standards..................................................................................5-55.2.3 Environmental and Social Management Considerations.................................. 5-55.2.3.1 Air Quality Management............................................................................................5-6

5.2.4 Mine Reclamation and Closure Plan Considerations ....................................... 5-9

6.0 REFERENCES .............................................................................................................. 6-1


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MWH Job No. 2470217.011803 iii Best Management Practices Manual,Volume II

LIST OF ACRONYMS

ASP Activated Sludge ProcessBMP Best Management PracticeBOD Biochemical Oxygen Demand

BU Business UnitBVQI Bureau Veritas Quality InternationalCMA Compaia Minera CMACO Carbon monoxideCO2 Carbon dioxideCOD Chemical Oxygen DemandCPCB Central Pollution Control BoarddB(A) Decibel (A weighted)DCDA Double Conversion Double AbsorptionDNV Det Norske VeritasEHS Environmental Health and SafetyEA Environmental AssessmentEIA Environmental Impact AssessmentEIS Environmental Impact Statement

EMP Environmental Management PlanEMS Environmental Management SystemETP Effluent Treatment PlantFIMI Federation of Indian Mineral Industriesha HectaresH.G. High gradeHNP Huascarn National ParkHTC Hibbing Taconite CompanyHWG Huascarn Working GroupHZL Hindustan Zinc LimitedIndal Indian Aluminium Company, LimitedINRENA Peruvian Park AuthorityISO International Organisation for StandardisationISP Imperial Smelting Process

ISTEC International Safety Training and Technology ProgramIUCN World Conservation UnionKIOCL Kudremukh Iron Ore Company LimitedLMMPL Lum Mawshun Minerals Private LimitedLSC Lafarge Surma Cement Ltd.LUM Lafarge Umiano Mining Private LimitedMCI Metal Corporation of India LimitedMoEF Ministry of Environment and ForestsMPCA Minnesota Pollution Control AgencyMSDS Material Safety Data SheetNGO Non-governmental organisationNOx Nitrous oxideNPK Ammonium Nitrate Based (fertiliser)P.W. Prime westernSCSA Single Conversion Single AbsorptionS.H.G. Special high gradeSO2 Sulphur dioxideSOVL Sterlite Opportunities and Ventures LimitedSPCB State Pollution Control Board


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MWH Job No. 2470217.011803 iv Best Management Practices Manual,Volume II

STOP (DuPont) Safety Training and Observation ProgramSTP Sewage Treatment PlantSQRP Strategic Quarry Rehabilitation ProjectTDS Total Dissolved Solids

TMI The Mountain Institutetpd Tonnes per dayTSS Total Soluble SolidsUNESCO United Nations Education, Scientific and Cultural OrganisationWWF World Wildlife Fund


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MWH Job No. 2470217.011803 1-1 Best Management Practices Manual,Volume II

1.0 INTRODUCTION

1.1 OVERVIEW

Mineral resources are an important component of Indias economy and have the potential tomake a substantial contribution to sustainable economic growth and development. In order to

fully realise this potential, the Indian minerals industry must continue to grow. Increasingglobalisation of the mining industry has led to changing public attitudes regarding the costsand benefits of mineral extraction and an increase in public pressure to minimise theenvironmental and social costs associated with mineral development. This is especially truein India where high population densities increase the importance of land use decisions.Mining development in India frequently displaces indigenous populations, often withoutadequate compensation and assistance with resettlement. When the environmental impactsof mining operations are not properly managed and mitigated, it is often too costly to restoremined lands to beneficial use once mineral deposits have been exhausted, leading to a netreduction in available land. It is therefore essential that the Indian minerals industry followsthe principles of sustainable development

1by using methods and practices that minimise the

release of contaminants to water, air and soil, preserve and restore lands for future use, andmanage displaced populations. In order to achieve this objective, the Ministry of Environmentand Forests (MoEF) must work with appropriately qualified resource institutions to provide a

clear, practical framework of environmental and social policies, supporting legislation,regulations and guidelines and assist industry in developing effective procedures forimplementation, monitoring, and compliance.

Development and implementation of the framework will require consideration of the practicaloperational, environmental, social, and economic constraints inherent in a wide range ofmining operations. A phased approach is required to bring both new and existing miningoperations into compliance with regulatory requirements over a reasonable period of time. Inaddition, a life-cycle approach must be adopted with consideration of the impacts of miningexploration, active mining, and mine closure and reclamation.

1.2 PURPOSE

Volume II of the Best Management Practices Manualconsists of a series of case studies thatcompare and contrast examples of zinc, bauxite, iron ore, and limestone mining operations invarious Indian and international settings. These mineral groups were selected because of therelative magnitude of their significance in the Indian non-coal mining sector. The miningoperations described in this volume were selected because they represent circumstances inwhich many of the Best Management Practices (BMPs) presented in Volume I have beenimplemented with considerable success. In a number of cases, these examples alsodemonstrate how progressive mining operations are beginning to address issues ofsustainability in the planning and management of their mining operations

1

The World Commission on Environment and Development (the Brundtland Commission) definedsustainable development as "development that meets the needs of the present without compromisingthe ability of future generations to meet their own needs." This is the most broadly accepted definition ofsustainable development.


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2.0 ZINC CASE STUDIES

2.1 COPPER/ZINC CASE STUDY: ANTAMINA MINE

2.1.1 Operational Features and Key Issues

The CMA project is operated by the Compaia Minera Antamina (CMA), which is a privatelyheld company owned by BHP Billiton (33.75 percent), Noranda (33.75 percent), Teck (22.5percent) and Mitsubishi (10 percent). It is a $2.3 billion copper and zinc project located on theeastern flank of the Cordillera Blanca in the Peruvian Andes in the Ancash Department inPeru, which is about 270 kilometres Northeast of Lima. Project facilities include an open pitmine, a 70,000 ton per day concentrator, a 302- kilometre concentrate pipeline, port facilities,a new access road, power line and town site. Conventional open pit mining, milling andflotation processes will be utilised to produce up to 1.5 million tonnes of copper and zincconcentrates per year over an expected 23-year mine life. The final mine pit will be 4kilometres long, 2 kilometres wide and 750 metres deep. By present standards, it is the thirdlargest producer of zinc and the seventh largest producer of copper in the world.

The project facilities span an elevation range from sea level to 4,700 metres above sea level.

The variation in climate and geography ranges from flat, coastal desert to mountainousalpine. The area surrounding the mine is unique in that it is the highest elevation tropicalmountain setting in the world. In addition, the Huascarn National Park (HNP) in the PeruvianAndes is located nearby. This Park is designated as a United Nations Education, Scientificand Cultural Organisation (UNESCO) World Biosphere Reserve and World Heritage site.

Financing for the project came from a number of international commercial lenders andbanking institutions. It is currently the largest mining investment in Peru and was the largestfinancing in history for a mining project in a previously undeveloped area. Such extensivefinancing requires the project to comply with World Bank guidelines for environment andsocial performance in addition to the environmental and social guidelines and regulationsspecified by Peruvian Law. Further to that, the lenders have their own rigorous andcomprehensive requirements for environmental and social performance that must be metunder the financing agreements.

2.1.2 Management Philosophy

To satisfy the individual requirements of all the stakeholders, CMA has adopted a philosophyof operating to international best practice standards. One environmental impact statementand two subsequent addenda have been prepared for the project, several environmental,health and safety (EHS) management programs and plans have been developed to operatethe mine, and over 300 permits were secured to build and operate the project.

In addition to project EHS issues, CMA has dealt with environmental and social issues thatare outside the direct scope of the operations but had the potential to impact the region, ifignored. The area that the mine is located in suffers from severe poverty, high illiteracy rates,limited social services and subsistence agriculture. Plus, the Huascarn National Park islocated 30 kilometres east and is an important asset to Peru through its nature heritage and

economic contribution through tourism and other small industry.

As a result of its commitment to EHS management for its stakeholders, the CMACMA has setnew standards for large, international mining projects. This is most notable in the areas ofcompliance standards, permitting requirements, lending institution involvement, publicconsultation, community involvement, medical support services and safety culture. Usingprincipals of sustainable development, CMA has implemented an approach to communitydevelopment and environmental protection that has full involvement of the local populations.The project has faced a number of unique challenges due to its size, difficult logistics, culturalconsiderations and financial aspects and as a result of its innovative approaches and


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and non-governmental organisations (NGOs) that could potentially hinder the progress of aproject.

CMA has adopted internationally accepted practices of social responsibility, incorporatingthem into the design, execution, and management of the project. The three key principles ofsocial responsibility being followed are:

1. The need to obtain and uphold a social license to be able to operate in harmony withthe local communities within CMAs area of influence;

2. The triple bottom line concept, which includes the economic, environmental andsocial responsibility; and

3. Stakeholder engagement.

CMA defines a social license as the consent or acceptance (implicit or explicit) of anindustrial activity by the principal stakeholders, communities, institutions and individuals withinthe area of influence. A social license is an ethical approach to project development andCMA views the process as an investment in the success of the project as opposed to a costof doing business. Having a social license in place can facilitate the resolution of many socialissues related to mining operations and can help ensure continuity of operations by avoiding

major public or government incidents or conflicts.

The triple bottom line concept draws on all three components of economic, environmentaland social responsibility as being equally vital to the successful operation of a businessactivity and requires that environmental and social responsibilities be incorporated into keybusiness decisions. This concept represents a major change for the mining industry, whichhas tended to concentrate on the technical issues of mining rather than the outside interactionwith stakeholders that are not necessarily direct financial stakeholders in the project. It is aconcept that that will only become more important in the future as the concept of sustainabilitygets increased attention in all industries around the world.

Coupled with the concept of the triple bottom line is the need to get stakeholders engaged inthe project to ensure success in the social and environmental criteria. Experience at CMAhas shown that the best strategy for achieving acceptance and support of the project is tointeract with stakeholders and actively seek to engage rather than passively respond andengage. The stakeholders should be involved as soon as possible in the life of the project,whenever possible and it should be an open and transparent process of consultation andcommunication. Involving the stakeholders, especially the communities, in decisions that mayaffect their future, is a key step in building trust and acceptance between the company andthe surrounding communities.

2.1.2.4 Sustainable Mining Communities

The concept of sustainable development for a mining operation includes the effects on thesurrounding communities. To be sustainable, there has to be a net positive impact to thecommunity during the course of mining and after the operation has closed and departed thearea. Without the potential for a net positive impact from the mining operation, a communityis less likely to be receptive to introducing mining to the district.

To foster the development of positive interactions with the community, a company shouldhave a community relations strategy in place to provide a framework to build programsaround. CMA strategy is based on conducting socially responsible behaviour involvingconsultation with community members and key stakeholders that obtains a buy-in to theproject from all parties and increases the overall level of trust. This strategy of permanentconsultation with the stakeholders also requires engagement, active participation, on-goingcommitment, transparency and mutual respect from all parties. To achieve this, CMAencouraged the community to take a lead role in decision-making regarding the design andimplementation of community development programs. This resulted in the communities


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having approved development plans and budgets and the requirement for them to managetheir own budgets and monitor their own progress of the programs.

In addition, CMA conducted public consultation sessions to understand the issues andconcerns of the local communities and commissioned various studies of the region to assessthe potential impacts of mining. Using this knowledge and keeping to the philosophy ofcreating an environment for achieving sustainable mining communities, CMA developed a

basic framework for the Community Development Programs based on the following principles:

1. Avoidance of paternalism.

2. Supply the tools that the community needs to achieve, through its own efforts,sustainable development.

3. Attract contributions and participation from government, multinational financial andaid agencies, the private sector and local communities, to jointly develop a soundsustainable development program for the region.

4. Complement, not substitute, the obligations of the Peruvian government in itsprograms for reducing the levels of extreme poverty presently existing in the region.

5. Respect the culture, customs and values of individuals and communities.

6. Work with the community to build social capital (the ability of people to organisethemselves and work towards common objectives).

7. Develop the social license by increasing the level of trust within the community, andbetween the community and the company.

Using these principles, CMA was able to develop the following high-level objectives for theregion:

1. Upgrade living standards, by improving the quality of education and health services.

2. Improve production and productivity levels in agriculture and livestock production,these being the main economic activities carried out by the majority of the localpopulation. These activities will continue to be practised beyond the closure of themine and are an example of investing for sustainable development.

3. Promote small-scale business activities, including the development of markets forlocal products, and help provide the infrastructure needed to access them efficiently.

4. Support cultural activities and promote conservation of heritage.

5. Promote the development of business opportunities in the area of influence byprioritising local purchasing.

6. Prioritise the hiring of local workers, by providing training and opportunities to non-skilled workers.

7. Promote environmental protection, not only within the companys area of operation,but throughout the area of influence.

Economic Program

The economic program is based on the need to improve agricultural management techniquesas well as to increase productivity and develop marketing strategies. Current agriculture inthe area is dominated by subsistence agriculture using varieties of plants and animals that arenot conducive to efficient production and limited marketing outside the local production region.In an effort to improve these practices, CMA established two experimental agricultural


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facilities in the area and high number of workers, medical facilities were established at themine and port sites staffed by national health care professionals. The facilities were designedto hold a stabilised patient for 48 hours before transporting them by land or air to a largermedical facility.

Safety

The safety program focus was to create and build the culture of safety awareness that isnewly emerging in Peru by emphasising education and training at all levels in theorganisation. At a minimum, training includes induction training before commencingemployment followed by regular on-the-job and task training. The DuPont Safety TrainingObservation Program has been implemented with great success. In addition, theInternational Safety Training and Technology program is being implemented to provide thebasic safety program structure and standards required for a modern safety program at a largeoperation like CMA.

2.1.3.1 Example: Huascarn National Park

As previously mentioned, the CMA project is located near HNP, in the Peruvian Andes. ThePark is designated as a UNESCO World Biosphere Reserve and World Heritage site. AWorking Group was formed by the Peruvian Park Authority (INRENA) and is composed of the

World Conservation Union (IUCN), and NGOs, with the goal of monitoring the CMA projectactivities, to direct mitigation associated with the construction phase of the project, andsupport protection of the Park resources. All major mining companies in the area areparticipating in the working group whose goal has been expanded from simply monitoring theactivities of CMA on the parks central route, to working towards sustainable developmentwithin the area of influence of the park.

Using the philosophies of sustainable development as described in this case study, wherebythe local communities are encouraged to become active participants in issues that affectthem, the Huascarn Working Group (HWG) was established between the HNP, the MountainInstitute (TMI), and the CMA project. The HWG was set up by the initial parties to achieveshort-term tasks such as monitoring and communicating on temporary use of the Park centralroad during construction activities. As the scope of involvement increased, more companies joined the HWG and eventually it evolved to include all the major mines operating in thevicinity of the Park.

Incrementing its functionality one step at a time and using a shared-cost approach tocommunications, this group established simple but specific information functions to preventconflict or to generate bilateral or multilateral initiatives that may one day contribute toimproving the fit between mining and regional sustainable development. The scope of theHWG expanded to include, nationally, other conservation NGOs (e.g. Consorcio Minera yConservacin) that both provide support and expect to gain experience for their own areas ofwork.

For example, the original mine plan involved trucking over 1.5 million tonnes of concentrateper year to the port site on an existing road (central route) through the HNP. This translatedinto over 100 trucks per day using the transportation route. This proposition was the subjectof controversy and negotiation that involved HNP, INRENA, TMI, UNESCO and internationaltechnical conservation individuals, as well as CMA, its shareholders and lending institutions.

In mid-1998, a feasibility study was commissioned to evaluate the potential use ofconcentrate pipeline. This study considered issues including the likely environmentalimpacts, the rate of return of trucking versus pipeline, technical considerations, safetyconcerns due to volume of traffic along transportation routes and the general short- and long-term economic benefits. In addition, the Park and TMI stakeholders main concern was thatthe use of the central road as a permanent industrial trucking route would jeopardise thefuture existence of the Park, either the Park itself or at least its status as a World HeritageSite.


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Local environmental, health and safety culture may be substantially different, oftenlower in rural areas, from what is expected by the company and internationalstandards. An emphasis needs to be placed on the actual creation of a new cultureof environmental, safety and social responsibility that will be sustainable in the localcommunity.

Financial lending institutions may have more rigorous requirements with respect to

environmental and social aspects than the local government in developing countries.This places an additional burden on the companys EHS and CommunityDevelopment staff to be in the role of both consultant and enforcer and required fullsupport of management to be successful. Failure to consider the expectations oflending institutions can cause the mining company to be in non-compliance with theterms and conditions of its financing agreements.

Establish clear environmental and social standards with management buy-in andsecure adequate internal resources from the beginning of the project.

Identify the stakeholders early in the process, communicate often, establish andmaintain relationships and constantly strive to build social capital and increase thelevel of trust between the company and all involved parties.

Carefully manage expectations of the local population through timely and accurateinformation provided from the earliest stages of conception through to the end of theproject. Surveys of the expectations and perceptions of the people affected by theproject should also be conducted for a reference point. Dont oversell the project.

Cultural understanding and sensitivity to the local population and understanding theirposition and circumstances will enable a more effective and successful sustainabledevelopment program to be implemented.

Involve impacted communities in decisions that will affect their future where possible.

Maintain communications and build trust through personal contact, dialogue, andcommunity participation in decision making processes, and ensuring the companyfollows through on its commitments.

Having a large number of workers in remote locations requires stand-alone medicalfacilities that can treat and stabilise patients. Special problems that may be areaspecific, such as altitude or disease, should be considered when establishing thehealth program.

Establishing a safety culture requires significant resources in terms of supervision,education and enforcement. Construction schedules should factor in the timerequired for safety training.

2.2 ZINC CASE STUDY: HINDUSTAN ZINC LIMITED


Hindustan Zinc Limited (HZL) is one of Indias leading zinc-lead producers. HZL wasincorporated in January 1966 as a public sector company after the take over of the MetalCorporation of India Limited (MCI) to develop mining and smelting capacities to meet theincreasing domestic demand for zinc and lead metal.

Pursuant to its policy of privatisation of public entities, the Government of India divested its 26percent stake in the equity capital of the company to a strategic partner, Sterlite Opportunitiesand Ventures Limited (SOVL). Management control of the company was transferred to SOVLon April 11, 2002. Subsequently, SOVL has completed its open offer for acquiring a 20


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Zinc Smelter, Visakhapatnam

In the Zinc Smelter at Visakhapatnam in Andhra State, an electrolytic extraction process isused to produce zinc, cadmium, and sulphuric acid.

Tundoo Lead Smelter

The Tundoo Lead Smelter is located 36 kilometres from Dhanbad in Jharkhand State. Aconventional blast furnace technique is used for production of lead and silver.

Chanderiya Lead Zinc Smelter

The Chanderiya Lead Zinc Smelter is located 12 kilometres from Chittorgarh in Rajasthan.Here, Imperial Smelting Process (ISP) technology is utilised for extraction of lead, zinc, silver,cadmium, and copper. by-product sulphuric acid is also recovered.


HZL has established a Corporate Environmental Policy, which is based on the minimumrequirements of the ISO 14001 environmental management system (EMS) standard

(International Organisation for Standardisation, 1996) and reads as follows.

HZL reaffirms its commitment to environmental protection and sustainable development.We therefore shall endeavour to:

Use appropriate environmentally sound technologies in all our operations,wherever feasible.

Conserve key input resources like water, energy, and chemicals particularly thehazardous ones.

Institutionalise the sense of environmental care among all the members ofHindustan Zinc family.

Effect continuous improvements in those areas that are environmentallysignificant.

Not only comply with applicable environmental laws but go beyond whereverpossible.

2.2.3 Implementation of Best Management Practices

In line with the stated Corporate Environmental Policy, HZL has been active in adoptingappropriate pollution control and environmental protection measures at all of its operations.Environment Impact Assessments (EIAs) are undertaken for new projects to formulateEnvironment Management Plans (EMPs) for mitigating any possible environmental impacts.The environmental measures at mining units of HZL include provisions for dust suppressionand collection systems, disposal of benefication plant tailings into tailings ponds, recycling of

tailings dam water to benefication plants as process water so as to maintain a zero dischargestandard, green belt development to improve landscape, and to minimise generation of dust,and noise..

At its open pit Rampura Agucha Mine, a number of measures have been taken to ensureminimum ground vibrations due to blasting, and the vibration levels are monitored for everyblast. At the smelting units, the environmental protection measures include Sulphuric AcidPlants using Double Conversion Double Absorption (DCDA) technology to minimise sulphurdioxide emissions to the atmosphere. Single Conversion Single Absorption (SCSA) sulphuricacid plants also have been provided with Flue Gas Desulphurisation Facilities to minimise


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sulphur dioxide emissions. In addition, other dust collection methods and gas cleaningfacilities have been provided to minimise gaseous emissions. Integrated effluent treatmentplants have been provided to ensure that treated effluents meet all the criteria stipulated bythe Central Pollution Control Board (CPCB) and the State Pollution Control Board (SPCB).Solid waste management systems [e.g., secured containment landfill facilities for safedisposal of jarosite (a potassium-ferro sulfate mineral)] have been commissioned at the VizagZinc Smelter. Another similar facility at the Debari Zinc Smelter was expected to be

commissioned during last quarter of 2002. The facility has a leachate collection and detectionsystem as well as a system for the removal of leachate.

A number of initiatives have been taken to reduce water consumption by undertakingcomprehensive water audits, reducing water consumption at the source wherever possible,and by increasing recycling. These have not only resulted in reducing the fresh waterconsumption but also helped to effectively achieve zero discharge conditions without anyadverse effect on the process or equipment. Sewage treatment facilities at the Debari ZincSmelter as well as the Chanderiya Zinc smelter have also been constructed. The treatedwater is collected and used for plantations thereby improving the local environment as well asreducing fresh water consumption.

An EHS Audit was conducted for all production facilities of the company through anindependent contractor, who reported a high degree of compliance and a good awareness of

both environmental and health and safety issues at all units. Some of the additional initiativestaken by HZL in the field of EHS management are described below:

HZL has commissioned an independent Environmental Audit by an internationalagency.

Rescue stations along with highly trained teams are maintained at Zawar and RajpuraDariba Mines for potential emergency situations. These facilities are also designedto serve emergency needs throughout Rajasthan and Gujarat.

Appropriate fire-fighting facilities for underground mines are maintained, as well as forthe surface installations of the mines and smelters.

Health surveillance of all employees, including contract workers is carried out through

pre-placement as well as periodical medical check-ups. All the operational units havewell equipped hospitals and/or dispensaries that are manned by qualified medicalofficers and medical staff.


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2. Del Park mines supply the Pinjarra refinery. Del Park began production in 1972.

3. Huntly mines, which began operation in 1976, also supply the Pinjarra refinery andtogether with the Del Park mines produce 2.4 million tons of alumina. Clearing andrehabilitation by these two mines account for approximately 170 ha per year (Hinds,1999). Production in these three areas has since increased.

During the wet winter months drilling activities are suspended to prevent the spread of thejarrah dieback disease. The disease is caused by a fungus which attacks the root systems ofthe jarrah and various understory species and can be easily transported in soil adhering tovehicle tires, especially in the rainy season. Once this rainy season is over, ore definition iscarried out by a rubber tired drill rig that is designed to cause minimal forest disturbance.Following the approval of the Western Australian Forestry Department, usable timber isextracted by contractors prior to mining. The residual vegetation is then heaped intowindrows and burnt. The gravely sand surface covering the bauxite is then stripped andremoved in two layers. The top 10-15 cm, referred to as top soil, is first removed followed bythe removal of an additional 40 cm known as the overburden. The overburden and topsoilwhich contains most of the soil organic matter, nutrients, micro-organisms, and seeds arestockpiled for future use or directly respread onto areas that are ready for rehabilitation. Thebauxite is mined using front-end loaders, power shovels, or hydraulic excavators and loaded

in large trucks that can carry 50 to 100 tonnes. Australian bauxite is considered low gradeand it takes 3 to 4 kilograms of bauxite to produce 1 kilogram of alumina (Hinds, 1999).Blasting is sometimes done to break-up cemented-cap rocks. After removal of theoverburden, mine pits are typically 4.5-metres deep with compact clay floors.


It is Alcoas written policy to operate world-wide in a safe, responsible manner that respectsthe environment and the health of their employees, customers, and the communities wherethey operate. They also state that they will not compromise environmental, health, or safetyvalues for profit or production. All Alcoan employees (referred to commonly as Alcoans) areexpected to understand, promote, and assist in the implementation of this policy and theaccompanying principles.

Alcoa values human life above all else and manages risks accordingly.

Alcoa will relentlessly pursue an EHS incident-free workplace.

Alcoa does not compromise its EHS value for profit or production.

Alcoa will comply with all laws and set higher standards for themselves and theirsuppliers where unacceptable risks are identified.

Alcoa supports sustainable development by incorporating social responsibility,economic success, and environmental excellence into the decision-making process.

Alcoa measures and assesses its performance and is open and transparent in itscommunications.

Alcoa will supply and use safe and reliable products and services.

Alcoa will use its knowledge to enhance the safety and well-being of its communities.

All Alcoans are accountable for conforming with and deploying the EHS values andprinciples.

Alcoa has established clear goals for measuring progress towards achieving the 2020strategic plan for cleaner air, better use of land and water, and the protection of humanhealth. These performance improvement goals are stated as follows:

Environment

From base year 2000: 60 percent reduction S02 by 2010 50 percent reduction volatile organic compounds by 2008 30 percent reduction nitrogen oxides by 2007


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80 percent reduction mercury emissions by 2008 50 percent reduction landfilled waste by 2007 60 percent reduction in process water use, and discharge, by 2008.

From base year 1990: 25 percent reduction in greenhouse gas emissions by 2010. Assuming success

with the inert anode technology, a 50 percent reduction by 2010. Implement effective environmental management systems, such as ISO 14001, at all

locations by 2005. Zero environmental non-compliance incidents. $100 million annual environmental and energy cost savings by 2006 through

elimination of wastes and design for sustainability. Environmental targets and community relationship objectives incorporated into all

Alcoa businesses' annual plans.

Health

100 percent of workplace health hazards identified and described by 2004 95 percent, or more, of workplace health hazards adequately measured by 2004 40 percent, or more, reduction in the number or magnitude of the top 10 noise

sources at each location by 2004 40 percent, or more, reduction in the number or magnitude of chemical hazards

exceeding Alcoa standards by 2004 Occupational medicine expertise and facilities serving each location by 2004 100 percent of required medical evaluations per location completed annually 50 percent, or more, reduction in the number of top 10 ergonomic risks at each

location by 2004 All existing locations with "Good" rating for ergonomics from audit or self-assessment

scores by 2004

Safety

Zero fatalities, zero lost work day injuries Zero incidents Deployment of risk management and reduction programs to eliminate causes of

injuries

3.1.2.1 Alcoas Bauxite Mine Rehabilitation Standards and Guidelines

Alcoas bauxite mine rehabilitation standards and guidelines have been developed based onthe best available scientific and engineering data and the practical experience of Alcoa.These standards apply to locations world-wide in which Alcoa has a controlling interest ormanaging responsibility and performance against standards will be included in AlcoaEnvironmental Audits. In partnerships where Alcoa does not have a controlling or managinginterest, Alcoa will encourage the other shareholders to apply these standards.

Alcoas standards are applicable world-wide and aim to improve the quality of rehabilitation,encourage technology sharing, improve corporate image, and reduce liability. The guidelinesare intended to set out principles and procedures that will assist each location in developingsite specific requirements.

As an overriding principle, Alcoa believes that all mining must be seen as a transient landuse. Areas used for mining must be restored to a land use that is socially and ecologicallysustainable and locations must comply with all local legislation. These standards areintended to promote rehabilitation activities that meet or exceed federal, state, and locallegislative and/or regulatory requirements. These standards and guidelines encourage opencommunication with government, the local community, and the public at large.

For the purposes of these standards, rehabilitation means that the disturbed site will bereturned to a form and productivity that conforms to a pre-determined land use plan. It


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implies that a stable condition will be established that will not deteriorate substantially but willbe consistent with the aesthetic, environmental, economic, and social values of thesurrounding land.

3.1.2.1.1 General Responsibilities

Business Unit (BU) management is responsible for ensuring that rehabilitation strategies are

implemented and rehabilitation activities are accomplished with appropriate resourcesallocated for these activities. Rehabilitation planning must be an integral part of the mineplanning process.

3.1.2.1.2 Budgeting

Responsibility for budgeting and execution of rehabilitation plans must be placed on the MineManager or other appropriate Manager. Rehabilitation costs must be built into mining costsand accrued accordingly. Qualified personnel and other resources must be allocated toenable progressive rehabilitation without impeding production. Budgetary allocations must beprovided for all aspects of the rehabilitation plan.

3.1.2.1.3 Investigations

Project Feasibility Studies

Potential limitations to rehabilitation must be identified at an early stage to ensure that theyare considered in the development of rehabilitation objectives and to allow for their soundmanagement and mitigation, or elimination. Items for consideration should include: physicallimitations (e.g., land instability, hydrology), chemical limitations (e.g., toxic substances orleachates), biological limitations (e.g., inability to return to a desired biodiversity), and costlimitations. Evaluation of these potential limitations is critical to fully assess the feasibility forrehabilitation and must be included in the economic evaluation of the project.

Baseline and Impact Studies

Prior to the commencement of a project, comprehensive surveys must be carried out byqualified personnel to record information such as landform, geology, soil types, climaticconditions, hydrology, flora and fauna (biodiversity), heritage and cultural values, and landuse. Baseline sociological surveys and sociological impact studies should be carried out todetermine potential effects from clearing, mining, and infrastructure development. In areas ofnative vegetation, studies should be carried out to understand the ecological processes andnatural variation to assist in the development of revegetation strategies and to monitorprogress of the rehabilitation (e.g., successional processes). Potential ecological impactscaused by clearing, mining, and infrastructure development must be evaluated. Rare,threatened, or endangered species and habitats must be identified and protection programsput into place. In particular, attention should be given to aquatic environments. The impactsof non-indigenous plants, animals, pests and diseases that have been or may be introducedneed to be determined. Impacts on the environment resulting from changes to the humanpopulation in the areas concerned should also be assessed.

3.1.2.1.4 Planning

Impacts on Neighbours

Potential impacts on nearby residents and landowners must be fully considered in theplanning and operation of the mine, including mine rehabilitation. A buffer zone must beestablished to minimise any impacts of, or risks posed by the operations. The size of thebuffer will be determined by local conditions and the type of mining operation involved, andmust be specified in all mine plans. Mining must not occur within this buffer without the prioragreement of the B.U. President and notification to the particular nearby residents and/or landowners involved. In any event, sufficient buffer area must be retained to allow the


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establishment of safe, stable slopes and effective drainage systems during the rehabilitationprocess.

Mine Planning

At the completion of mining, site conditions must be left so that pre-determined rehabilitationcriteria can be met. The sequence of mining should be planned to maximise the success of

rehabilitation, as well as fauna and flora recolonisation, where native ecosystems are re-established. Mining of opened-up ore deposits must be completed as soon as practical tominimise the length of time topsoil is stored and the effects of mining on surface and groundwater.

Rehabilitation Planning

A rehabilitation strategy must be defined by B.U. management. The strategy will be based onresults of the pre-mining assessments and will take into consideration post-mining land use(s)and tenure (e.g., ownership, lease, mineral rights). The rehabilitation strategy should beestablished in conjunction with government, local community, landowners, and leasees andmust be consistent with Alcoas values. Where applicable, the special needs of indigenouspeople and their communities must also be incorporated into the strategy. Where a final landuse has not been determined, Alcoas objective should be to restore as closely as possible,

the pre-existing use.

Rehabilitation plans must be an integral part of the mining plan and must be developed beforemining activities commence. These plans must be approved by B.U. management. Everymining site must develop specific rehabilitation standards with which all disturbed areas of aparticular category must comply. A range of standards may need to be developed to coverdifferent biophysical environments or different types of disturbance (e.g., mine pits, spoilheaps, tailings dams). The rehabilitation strategy will depend on the designated land use.Under some circumstances, the subsequent land use may not involve revegetation (i.e.,housing, roads, wetlands, landfill, industrial sites, and other mining). Revegetation mayinvolve horticultural crops, pastures, commercial forestry, native vegetation and amenityplanting. The productivity of areas revegetated in crops, pastures and commercial forestsshould meet or exceed the regional productivity levels.

The rehabilitation plan must include a monitoring program. Where future land use requiresrestoration of native vegetation, a reference site must be established, maintained, andmonitored throughout the rehabilitation process to provide comparison data by whichrehabilitation success may be measured. Performance monitoring must take place atregularly established intervals during and after rehabilitation as a measure of the success ofthe rehabilitation activities.

Establishing Completion Criteria

Completion criteria must be established for each location and for each rehabilitation strategy.These criteria will be agreed upon and documented by Alcoa and the land owner (whereknown) or government agency to whom Alcoa divests management responsibility for therehabilitated land.

3.1.2.1.5 Techniques and Procedures

Clearing

During land clearing, utilisation of existing resources on the site must be maximised. Thesemay include timber, buildings and produce. If the existing vegetation can assist in therehabilitation process it should be harvested and redistributed in a timely manner on the areasbeing rehabilitated. Burning as a means to remove vegetation residue should be used as alast resort and should be considered only after harvesting, habitat and burying options havebeen considered. Land area cleared should be the minimum for efficient mining (pits andinfrastructure) and rehabilitation.


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Topsoil and Overburden Removal

Topsoil and remaining vegetation debris must be harvested from the entire area to be minedand either stored in areas where it can be recovered or utilised immediately on other areasbeing rehabilitated. Whenever topsoil is stored it should be done so for the least possibletime to minimise the loss of biological activity and nutrients. If there are potentially toxic

substances in the overburden and mine waste, they should be handled in such a way as tominimise the impact on rehabilitation and the surrounding areas. In some circumstances, inaddition to topsoil, subsoil horizons and/or a portion of the overburden may need to beharvested and respread on the rehabilitated areas in order to successfully establish thedesired vegetation. Topsoil and subsoil/overburden should be respread as separate strataand not mixed together. Clearing of additional vegetation for the storage of topsoil and/oroverburden should be minimised.

Hydrology, Erosion and Sediment Control

Drainage control must be established to minimise the effect of runoff and sediments on thesurrounding undisturbed area. This pertains to rainwater runoff, existing surface drainagesystems and groundwater. Sediment control works must be planned and installed so as tominimise sedimentation of surrounding areas during mining. Water discharged from

rehabilitated areas must conform with the more stringent of corporate or regulatory standards.Natural hydrologic patterns must be re-established during rehabilitation unless a pre-determined change in hydrology has been identified in the rehabilitation objective. Run-offfrom surrounding areas must be managed so that the rehabilitated area is not adverselyaffected.

Site Preparation

Reshaping may take place before or after overburden return and will depend on the depth ofoverburden to be replaced and specific site conditions. Finished slope angles in reshapingwill depend on aesthetics, final land use, soil characteristics, and safety. Slopes should beblended into the natural land form. All slopes must be stable. If erosion is likely to occurduring the establishment phase of rehabilitation, erosion control treatments must be applied.

Compaction resulting from the mining, reshaping and soil placement process must be relieved(e.g., by ripping, plowing, or sub-soiling) where rehabilitation plans require water infiltrationand plant root penetration. During this operation care must be taken to ensure thatunfavourable sub-soil materials are not brought to the surface and excessive topsoil burialdoes not occur. Soil nutrient and pH levels must be adjusted where this is necessary toachieve rehabilitation objectives. Where regeneration of a native vegetation is the objective,nutrient and pH levels should closely match pre-existing conditions. Soil conditioners shouldbe considered to ameliorate adverse conditions.

Topsoil must be replaced as the final soil profile. The thickness and area to which topsoil isreturned must provide the maximum value to the end use of the rehabilitated area. Thetopsoil should be spread evenly on the area.

Revegetation

Where native vegetation is to be re-established, only propagules of indigenous plant speciesshould be used. Preferably these should be collected from the areas being cleared or otherlocal provenances. Revegetation strategies should be based on a high level of understandingof local climatic conditions and ecological processes. Re-established plant communitiesshould eventually duplicate the natural ecological processes and functions of the originalvegetation.

Fauna return should be encouraged by natural means through the creation of suitable habitatrather than by physical re-introduction. Keystone species may need to be transferred wherethey are absent or inadequately represented in surrounding areas. Artificial barriers such as


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Standard Operating Procedures

Standard operating procedures must be developed and documented for all majorrehabilitation tasks for each mine site.

Education and Training

All minesite staff and relevant contractors shall have a basic understanding of the minerehabilitation policy, strategy, and environmental protection program. Therefore, a trainingplan must be developed to identify training needs and schedule for personnel involved in thedevelopment and implementation of the rehabilitation plan.

Documentation and Record Keeping

Rehabilitation practices and techniques must be documented. Records must be maintaineddescribing rehabilitation treatments applied to each area rehabilitated. The location ofoverburden and topsoil storage areas and replacement areas must be recorded if soil is to bestored for more than two years.

Auditing

A self-audit must be conducted annually to ensure compliance with Alcoas bauxite minerehabilitation standards. Results of the audit must be communicated to B.U. management.Cross-location auditing of rehabilitation performance is encouraged.


3.1.3.1 General Principles

At Alcoa, the first task in developing an effective mine rehabilitation program is to set a clearlydefine post-mining land use objective. It should be compatible with surrounding land use; itshould support species diversity; it should be consistent with the expectations of the localcommunity; and the landowners and regulatory agencies must agree to it. An understandingof future land ownership is critical. Despite the best of intentions, it might not be worthwhiletrying to establish a productive land use on undeveloped common land because of potentialproblems that will occur when the company leaves like who will reap the benefits, who willtake care of the maintenance, and who will be responsible for the land if it degrades throughlack of maintenance?

When the appropriate land use objectives are set, then rehabilitation can commence. Firstand foremost, the disturbed mined areas need to be returned to a safe and stable physicalstate that is integrated with the surrounding landscape. Safety should be considered in termsof risks to humans, domestic animals and wildlife, but the rehabilitated site should also reflectthe surrounding landscape; if natural cliff faces or steep and rocky slopes occur locally, thesefeatures may be acceptable for aesthetic or habitat values. On the other hand, while natureincludes some unstable landforms, it is hard to imagine a justification for leaving or creatingthem. Stable soils are more likely to revegetate effectively and sustain productivity, and willmaintain a protective cover over any hostile materials buried beneath them, such as acid-generating rocks or subsoils with toxic salt or metal concentrations. Stable soils will alsoavoid off-site impacts such as turbidity (muddiness) and siltation of watercourses.

Most rehabilitation programs also involve some form of vegetation establishment(revegetation). Regardless of the land use objective, the chosen vegetation must beproductive and sustainable. If the vegetation is for commercial use, then productivity levelsneed to be competitive with similar enterprises on natural soils. Where native vegetation isrestored, productivity levels must be sufficient to establish and maintain a self-sustainingecosystem. Restoration of species diversity can be a critical objective for rehabilitationprograms aimed at re-establishing native ecosystems. Success in this endeavour is often


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dependent on first establishing the appropriate habitat and ecosystem recovery processesthat will subsequently encourage the full suite of flora and fauna to recolonise.

3.1.3.2 Rehabilitation at Alcoa

Reclamation of bauxite-mined lands in Western Australia began in 1966 three years afterAlcoa commenced mining operations in 1963. In the early years of Alcoas reclamation

program, the goal was to establish a stable, self-regenerating forest ecosystem. To achievethis goal the plan was to enhance or maintain water, timber, recreation, and other forestvalues. Since the commencement of reclamation programs, methods have evolved over theyears in response to information obtained from monitoring the result of previous techniques,and in response to environmental pressures by land users outside the mining area. In recentyears the emphasis has changed to restoration of the jarrah forest after mining and re-establishing the high botanical diversity of the jarrah forest.

3.1.3.2.1 Past Reclamation Practice

Initially, mining was at a relatively small scale, with about 30 ha of forest cleared and minedeach year. Rehabilitation efforts were very rudimentary. The mine pits received norecontouring, overburden and topsoil were respread without any cultivation of the subsoil, andtrees were planted with an arbitrary amount of organic fertiliser. In the 1960s forestry

production was the main objective of the Western Australian Forestry Department and as aresult no understory treatment was required. The respread topsoil was directly planted withpotential timber producing trees such as eucalypt and pine species imported from easternAustralia in monoculture plantations. The eucalypt was selected because it was fast growing.These early plantations suffered from wind-throw as a result of nutrient deficiency andinsufficient root penetration of the compacted mine floor clay soils as the trees increase insize.

The company recognised quickly that performance was substandard and that improvementwas required. Work commenced immediately on a program of research and field trials.Within five years improvements were incorporated into the mine rehabilitation program. Thiswork has continued for three decades, to a point where the quality of mine rehabilitation hasreached a very high standard (Gardner, 2001).

In 1971 Alcoa and the Forestry Department initiated a co-operative tree nutrient trial usinginorganic fertiliser to improve nutrient level above those achieved in the 1960s. To overcomethe compaction problem, a new technique of subsoil ripping was introduced. Ripping is anoperation frequently carried out when preparing forest sites prior to planting and is a measuredesigned to loosen compact layers. In the case of bauxite mining activities, during theprocess of regrading and filling the mined sites, soil compaction by tractors became aproblem. The ripping process however often left shallow depressions along these rip lineswhich would result in rapid runoff and soil erosion. To avoid the above-mentioned problemsand to promote water penetration and storage, rip lines were made to follow contour lines anddone to a depth of 1.2 metres which proved successful against the problem of wind-throw.

Protection of water catchment areas was also another major priority of the Western Australiangovernment. The initial use of settlement ponds and level concrete overflows provedineffective in preventing turbid runoff (Hinds, 1999). In response Alcoa decided to confine in-pit runoff within the individual pits where infiltration was the dominant process. This was doneby battering the faces of the pits to a slope of less then one in two, which was an attempt toreduce the slope angle. This technique reduced the rate on run-off, soil erosion, andincreased infiltration within the pits. The in-pit runoff efforts relied on infiltration to dissipatesurface flow.

3.1.3.2.2 Present Reclamation Practice

Two decisions were made in regard to managing mined lands in the mid-1970s. First,rehabilitation plans were prepared before submitting clearing applications to the Stateauthority. This first set of plans included mining sequence, access, erosion control,


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earthworks, and contouring used to prevent turbid runoff during and after mining. Second, theForestry Department, recognising that mining was a transient land use, stated thatreclamation of bauxite mined sites should target re-establishing stable biological systems.Thus the following long term land-use goals were outlined; i) water supply, ii) woodproduction, iii) recreation and tourism, iv) flora and fauna conservation, and v) science andeducation. The continued provision of community corridors was also required.

Legal requirements for mining, however, differed between areas. At Jarrahdale, Alcoa wasonly required to spread previously stockpiled topsoil then hand the mine back to the StateForest Department for replanting. At Del Park and Huntly, Alcoa was required to dorestoration and reforestation at their own expense. There was also the requirement thatefforts to prevent soil erosion and deep water pooling be undertaken at these two sites. Thereason for this difference in legal requirement was not stated but the inference could be madethat because Jarrahdale was the first site mined in Australia, the legal requirements was lessstringent. Over the years, legislation became progressively tougher as rehabilitationtechniques improved, land-use objectives became better defined, and outside pressure fromthe public increased (Hinds, 1999).

Today's rehabilitation objective reflects the multiple land use management of the jarrah forest,the expectations of the community and the rehabilitation techniques and capability, whichhave mostly been developed locally. The jarrah forest covers some 1.8 million hectares, most

of which is publicly owned and managed as State forest. The vegetation community is tallopen forest dominated by jarrah (Eucalyptus marginata) and marri (Corymbia calophylla).This community is botanically diverse with an estimated 780 plant species occurring in theforest region. Less than 10 percent of the forest remains in an old-growth condition. About15 percent of the forest is secure in conservation reserves that sample the range of forestplant communities and protect remaining old-growth areas. Mining is not permitted inconservation reserves and, to date, all areas mined have been selectively logged at leastonce.

Alcoa currently operates two bauxite mines at Huntly and Willowdale, approximately 90kilometres and 135 kilometres Southeast of Perth, respectively. The third mine at Jarrahdaleceased production in 1998 and has now been decommissioned and fully rehabilitated.Currently, about 550 ha are mined and rehabilitated annually. Since the commencement ofmining, 12,560 ha have been cleared and 10,600 ha have been rehabilitated. Alcoa'srehabilitation objective is to "return a self-sustaining jarrah forest ecosystem that fulfils all ofthe pre-mining land uses". The specific conservation goal is "to encourage floral, faunal andsoil characteristics similar to those of the indigenous jarrah forest ecosystem". Ecologicallysustainable forest management principles are applied in the management of the forest fornature conservation, catchment protection, timber production, tourism, recreation, mining andwildflower industries (Gardner, 2001).

3.1.3.2.3 Reclamation Techniques

Rehabilitation commences with re-shaping of the 2 to 5-metre high pit walls to a maximumslope angle of 18. Recontouring of the mined-out pits aims to mimic the original, naturallandscape. The overburden, which is stripped separately from the topsoil and usuallystockpiled nearby, is then respread. Topsoil is then returned from newly cleared areas (apractice called direct return) or from stockpiles of topsoil when there is no opportunity fordirect return. Direct return of fresh topsoil enhances the return of viable seeds, nutrients,organic matter and beneficial soil micro-organisms. To maintain these important soilproperties at the surface, the topsoil is stripped and returned in as thin a layer as possible,generally 10 to 15 cm.

Following topsoil return, a few tree stumps, logs and rocks are returned to the mined areas toprovide habitat for fauna. The ground is then ripped to 1.5 metre deep using a tine withwings. Ripping is carried out in summer and autumn to maximise shatter of the compactedsubsoil. Contour lines at 3 to 5 metre vertical intervals are surveyed and marked in the fieldand ripping accurately follows the contours. The ripping creates furrows approximately 0.4


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metres in height and 1.5 metres wide. The contour furrows are critical for preventing rainfallrunoff and soil erosion.

Immediately after ripping and before the onset of autumn rains, a seed mix of a wide range oflocal plant species (70 to 100 species) is broadcast on to the freshly cultivated ground.Seeding immediately after ripping maximises plant establishment from the applied seeds(Hinds, 1999). Seed is either broadcast by hand or applied directly on to the freshly ripped

ground by a seeding machine attached to the ripping bulldozer. The seed mix is applied atabout 2 kilograms per hectare. Seeds of the dominant tree species, jarrah and marri, areincluded in the mix at rates that establish these trees in a proportion similar to that in thenatural forest. Only indigenous species are included in the seed mix, and all the seed issourced from within about 15 kilometres of each mine to retain local genetic material in therehabilitated areas. The species are selected on the basis of: 1) their natural occurrence inthe jarrah forest; 2) their adaptation to early successional stages i.e. species that are capableof rapid growth and having nitrogen fixing ability; and 3) the ease of collection. Commonspecies include Banksia grandis (bull banksia), Allocasuarina fraseriana (sheoak), Trifoliumsubterraneum (subterranean clover), andXylomelum occidentale (woody pear) to name a few(Hinds, 1999).

Other plant species that are not easily re-established from seeds, because of low seedviability, germinability or availability, are propagated in containers at Alcoa's nursery and

laboratory using tissue culture, cuttings or seed. Alcoa planted 215,000 of these "recalcitrant"plants at the mines in 2001.

Fertiliser is applied to the rehabilitated areas in late winter or early spring by helicopter. Amixed fertiliser [Ammonium Nitrate Based (NPK) and micronutrients] is applied at 500kilograms per hectare.

Winter rainfall is generally reliable, and plants establish well in the first year. Providedcontour ripping is carried out effectively and erosion is avoided in the first year, the sitesstabilise and are not prone to erosion in subsequent years. Tree height growth frombroadcast seed is usually less than 0.5 metres in the first year but of the order of 1 metre peryear in subsequent years. The understory also establishes rapidly.

Seeding rates are designed to establish a minimum of one leguminous plant per square metreand between one-half and one non-legume plant per square meter. With the good availabilityof nutrients from broadcast fertiliser, tree and understory cover approaches that of theadjacent forest within the first five years. At this age, many short-lived plant species,especially acacias, start to grow old, contributing to the rapid development of a litter layer. Itwas estimated that the rehabilitated areas attracted back approximately 85 percent of theanimal species and a rapid reintroduction of invertebrates. Live cover, litter cover, and thenumber of species present on topsoil sites that have been directly transferred have doublethose on stockpiled sites and the diversity values is also closer to those of the neighbouringforest community after 3 years. There was however a lack of birds which require hollowbranches as nesting site (Hinds, 1999).

3.1.3.2.4 Reclamation Monitoring

Various monitoring programs are carried out in the rehabilitated areas. Initial monitoring atnine months checks that tree and understory establishment requirements have been met.Rehabilitated areas are also inspected for erosion problems. At 15 months, plant speciesrichness is measured. Studies of plant succession, vegetation pattern, tree growth, biomassaccumulation, nutrient cycling, water use and timber quality have been undertaken (AlcoaWorld Alumina Australia, 2001). Several fauna recolonisation and succession studies havealso been completed. These confirmed that the food and habitat requirements of animals arebeing met. They also identified shortcomings in the rehabilitation practices that requiredattention, such as the need to place more logs, tree stumps and rocks to restore groundhabitat (Gardner, 2001).


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Alcoa's recent push for improvement in rehabilitation practices has aimed to increase speciesrichness in rehabilitated areas to the same level as the adjacent forest. In 1992 the speciesrichness in rehabilitated areas was just over 60 percent of the forest average. At the lastmeasurement in areas rehabilitated in 1999, average species richness was 96.8 percent ofthe forest average. Improvements have come from improved topsoil handling methods, seedcollection, treatment and application methods and the planting of nursery-grown recalcitrantspecies. By and large all monitoring indicates that the rehabilitated areas are developing

towards the stated objective. However, given the level of disturbance from the miningactivities and the age that the forest will need to reach to fulfil all of its functions, it will takesome time to confirm this (Gardner, 2001).

The Australian mining sector is fortunate to operate in a sound and stable legal, regulatory,policy, strategic planning and investment environment and to have clear environmental impactassessment, planning, implementation and monitoring guidelines to follow. Yet although thisis undeniably a helpful foundation for the successful operation of the mines and thesubsequent rehabilitation process, the performance of Alcoa has been largely driven fromwithin, locally and beyond regulatory compliance. Alcoa is working to transfer best practiceand adopt the same rehabilitation principles and standards world-wide - and in so doing, todemonstrate that best practices are not only achievable in stable, developed countries(Gardner, 2001).

3.2 BAUXITE CASE STUDY: INDAL

3.2.1 Operational Features and key Issues

Indian Aluminium Company, Limited (Indal), an Aditya Birla Group Company, has been a partof India's aluminium industry for over six decades. Established in 1938, Indal is verticallyintegrated through all stages of the aluminium business - from bauxite mining, aluminarefining, power generation, aluminium smelting to semi-fabricated products of sheet, foil andextrusions as well as aluminium scrap recycling. A nation-wide spread of plants, mines andoffices gives Indal the advantage of being in proximity to various regional markets within andoutside the country. Certified with ISO 9001 and ISO 14001 (the first in Asia to receive ISO14001) certifications for quality and environment management, the Company enjoys a leadingmarket position in India for speciality alumina chemicals and value-added products ofaluminium sheet, foil and extrusions.

As a member of the Aditya Birla Group, Indal is a part of one of India's largest businesshouses with revenues in excess of US $6 billion and net earning of around US $400 million.A premium conglomerate, the Aditya Birla Group is a dominant player in all sectors in which itoperates, aluminium, viscose staple fibre, copper, cement, viscose filament yarn, brandedapparel, chemicals, carbon black, fertilisers, sponge iron, insulators, power, telecom, financialservices and insurance. Its flagship companies include Hindalco, Grasim, Indian Rayon andIndo Gulf.

Recent restructuring plans include merging the Indo Gulf copper business with Hindalco andthe latter increasing its 74.47 percent stake in Indal to make it a wholly owned subsidiary.The fertiliser business of Indo Gulf will be demerged into a separate company. This wouldgive the Group the advantage of having one multi-resource, non-ferrous company of globalsize and scale. This would also enhance opportunities for Hindalco-Indal to work in close co-ordination to maximise the synergy benefits for higher shareholder value through businessfocus.


As a business house, Indal is fully committed to sustainable development. In their view it isextremely vital to meet the needs of today without compromising the welfare of the futuregenerations. They see a tremendous intrinsic linkage between economic growth andenvironmental protection. As such, they strive to run the plants at Taloja and Kalwa inMaharashtra, Muri in Jharkhand, Belur in West Bengal, Alupuram in Kerala, Hirakud in Orissa


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and other mines in Maharashtra and Jharkhand, in an eco-efficient manner. All of the plantsand installations at the mines are ISO 14001 Environment Management Systems certified,with the singular exception of the foil plant at Kalwa where the process of attaining thecertification is underway.

They also seek validation of their Environment Management Systems on an ongoing basis.The Bureau Veritas Quality International (BVQI) and DNV Netherlands Indian Chapter,

supported by a team of internal and external auditors are engaged in the auditing of themanufacturing processes at Indals various plants. Likewise the State Pollution Control Boardcertified auditors carry out intensive Environmental Audits at the plants every six months, inorder to confirm Indals commitment to environment conservation.

Indals Environmental Policy Statement is presented as follows:

We at Indal believe that protection of the environment is our prime corporateresponsibility. While carrying out all our businesses we are committed to the principles ofSustainable Development. We will make continual improvements in our operations toensure ecological balance while achieving economic growth.

To meet the above goals, we will strive to:

Constantly improve upon the standards, wherever environmentally beneficial andtechno-economically feasible, consistent with sustainable industrial growth.

Achieve improvement in eco-efficiency in all operations, setting standards inenvironment management and incorporating cleaner technologies innew/expansion projects.

Actively participate in social welfare and environment developmental activities forthe communities around our units.

Provide leadership in the use of environmental management systems anddevelop employee awareness of environmental responsibilities.

Set up an Environmental Performance Assurance Process and comply with all

applicable laws governing environmental protection.


A clean and sustainable environment through resource conservation and protection of theecosystem forms the basis of Indals environment management system.

At all of Indals units, state-of-the-art industrial effluent treatment plants are in operation. Amajor quantity of the treated effluent is recycled for use at the plants. To be a zero effluentdischarge company, Indal is working to upgrade the effluent and sewage treatment plants.Once completed, these facilities will ensure that all treated effluent will either be used inprocess or in horticulture (for example, power plant fly ash as a soil substitute for growingpaddy and vegetables). Over the last five years the consumption of water at all of the unitshas been reduced by 20 per cent. Seven out of eleven units have registered zero effluent

discharge. At full-service laboratories in the units, effluents, water emissions and air qualityare continually tested.

To ensure minimum possible dust emission from the operations, electrostatic precipitatorshave been installed in boilers and kilns while smelters have inbuilt wet scrubbers. Utilisingavailable technology has resulted in fluoride emissions from the aluminium smelters being farlower than the standards stipulated by the India Ministry of Environment.

There is an ongoing program for innovative disposal of generated waste. At Belgaum a novelmethod of storing dry red mud from the alumina refinery has led to a significant reduction in


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land use, and helped rehabilitate the land faster. More than 150 hectares of virgin landearmarked for the third red mud pond has been handed back to the Government. They havealso been able to productively use the fly ash generated at the Hirakud Power Plant bysupplying it to cement manufacturers and brick makers.

Indal also has ongoing efforts targeted at energy conservation. The plants at Belgaum andMuri have significantly reduced energy consumption by reducing energy for hydrate

extraction. Coal consumption is also being continuously lowered. By altering the bathchemistry at the Alupuram Smelter, the DC energy consumption was brought below 14.8 kilowatt hour per kilogram, which was a record for the plant. Indal conducted an energy auditprocess at the Hirakud Smelter and were able to bring down the auxiliary energy consumptionwhen the recommendations were implemented. Also, initiatives such as recovery of wasteheat from furnaces for ingot pre-heating, reducing the auxiliary electrical energy consumptionand increasing volumes at the Belur Sheet plant, have facilitated energy conservation plusmade the plant more competitive.

Indal is equally aggressive in maintaining high safety and health standards for all of itsemployees by ensuring a safe working environment utilising a process of continuousimplementation of best practices and world class manufacturing systems. Collectively theplants and mines have achieved over 26 million accident free man-hours.

In addition to building a technical program of eco-efficiency into all of the operations, Indaleducates its employees on the importance of sustainable development in continuum. All ofemployees are instructed regarding the companys environment policy and its commitmentsto the concept of sustainable development. The township for plant is housed within the plantcampus and more than 5,000 families live within the precincts of the Indal plants. Theemployees families are highly involved in ensuring that the plants natural forestedenvironment is maintained and more than a quarter of the land in all of the plant areas isplanted with trees.


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4.0 IRON ORE CASE STUDIES

4.1 IRON ORE CASE STUDY: HIBBING TACONITE COMPANY


Hibbing Taconite Company (HTC) is located in the centre of Minnesotas Mesabi Iron Rangenear the cities of Hibbing and Chisholm. HTC is considered a world class iron ore pelletproducer. It employs approximately 800 people and is certified to ISO 9001 (InternationalOrganisation for Standardisation, 2000).

HTC is owned by Bethlehem Steel Corporation (62.3 percent), Stelco Inc. (14.7 percent) andCliffs Mining Company (23 percent). Cliffs Mining Company is also the managing agent.Plant capacity is rated at 8.0 million tons of iron ore pellets annually. The HTC processingcomplex features nine 11-metre diameter autogenous grinding mills, two stages of magneticseparation, four balling drums per indurating line and three travelling grate pelletisingmachines. HTC began pellet production during the third quarter of 1976 and made its initialshipment to the port of Superior, Wisconsin in January of 1977.


A statement of the environmental policy of Cleveland-Cliffs Inc. and its associated companiesis described as follows.

Mining and mineral processing make a vital contribution to world development by providing the essential raw materials for products necessary for modern society.Cleveland-Cliffs Inc (the "Company") recognises that extraction and processing of theearths mineral resources must be accomplished in a manner that minimises impactson the environment and the community. The Company believes that stewardshipwith proper

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