Our approach

Xstrata is committed to the highest standards of environmental management and performance at its operations. We limit the environmental impacts of our operations through the efficient use of natural resources, the reduction of input materials and waste and through contributing to the conservation of biodiversity.

Further information on MRM's extensive environmental monitoring program and the results of recent monitoring is provided in our series of Fact Sheets.

The Group health, safety, environment and community (HSEC) policy sets out Xstrata's commitment to the highest standards of HSEC performance and to the principles of sustainable development. The policy is supported by 17 management standards. Xstrata's HSEC policy and management standards were developed from the International Council on Mining and Metals principles of sustainable development and global leading practice management systems and are available from our Group website or from the links below.

Group HSEC policy

www.xstrata.com/reports/doc/x_hsec_policy_2004.pdf

Group HSEC management standards

www.xstrata.com/reports/doc/x_hsec_standards_2004.pdf

Environmental Impact Statement (EIS)

In August 2005, a draft Environmental Impact Statement (EIS) was lodged with the Northern Territory Government covering all social, cultural and environmental impacts of the move to open cut mining at McArthur River Mining (MRM).

View Draft Environmental Impact Statement

In December 2005, a supplementary EIS was lodged in response to community submissions.

View Environmental Impact Statement Supplement

The EIS documents have been prepared by an independent environmental and engineering consulting firm, URS Australia. URS is a global firm with more than 300 offices worldwide and has particular expertise in environmental planning in the mining sector and water resource management.

In line with Xstrata's high quality standards, the Draft EIS and Supplementary EIS prepared by URS Australia have been independently reviewed by a second specialist consultancy, Matrix+ Consulting.

MRM has consulted with a wide range of stakeholders including local communities, business partners, government and regulatory contacts, non-government organisations and others during preparation of the EIS.

Tailings Dam

Waste water and solids from the MRM processing plant are taken by pipeline to the nearby tailings dam, where water is recycled and solids are stockpiled.

The tailings dam has experienced some minor sulphate seepage into Surprise Creek. MRM has worked to eliminate this seepage in a number of ways. After a successful trial involving injecting polymer fill to reinforce 750 metres of the most affected area, a major project to apply the treatment to 1.5 kilometres of the tailings dam wall was completed in September 2005. The capital expenditure on this project was in the region of AUD2 million.

Monitoring of the seepage area is included in the MRM Environmental Monitoring Program. This involves analysing samples taken from the creek on a weekly basis as long as water is accessible. Average heavy metal concentrations of water samples taken from the creek since the seepage has been detected are within the ANZECC 2000 guideline trigger levels for freshwater for the 95% protection level.

Monitoring of flora and fauna in the area surrounding the tailings dam has equally recorded no impact on local flora or fauna.

The tailings dam will also be extended away from Surprise Creek as part of the move to open cut mining and new deposits will be placed in cells furthest away from Surprise Creek. Cells nearest Surprise Creek will be rehabilitated to prevent any further seepage.

Rechannelling

The McArthur River currently runs through the middle of the MRM mining lease. This section of the river is a slow-flowing stream for about 10 months of the year. During the wet season it sometimes opens to a flood plain.

The move to open cut mining will require the rechannelling of a section of the McArthur River for approximately 5.5 kilometres.

The realigned channel will be designed to mimic features of the existing river, such as water velocity, bank slopes, downstream sediment impact and fish passage. The rechannelling will be staged over two years to give vegetation time to re-establish and reduce the risk of erosion.

The lower channel bank will be stabilised against erosion and the banks and berms will be revegetated. This will minimise the risk of erosion and will allow the riverine fauna corridor to re-establish. Part of the rechannelling will follow the route of an old water course.

An extensive tree planting program involving locally grown saplings of endemic species will be undertaken along the river banks. This is designed to ensure the vegetation around the new water course will replicate the vegetation around the section of river to be diverted.

While all technical and environmental considerations for the rechannelling are detailed within the EIS, the broad approach is to follow best practice techniques established in the diversion of river systems around the world. While no two rivers are alike, there are technical and environmental protocols which have proven successful and which we will follow.

Criteria for the design of the rechannel have been based on the principles and recommendations taken from the Australian recognised ACARP (2002) paper "Monitoring and Evaluation Program for Bowen Basin Diversions"

Biodiversity

Extensive studies conducted in the area since 1992 for the previous and current Environmental Impact Studies have found no endangered flora on the mine site. No flora species with declared 'vulnerable' status were identified by surveys within the proposed project area.

One endangered fauna species occurs in habitats potentially affected by the project – the freshwater sawfish. This species was recorded at five locations in the McArthur River in 1975 and in the river estuary in 2004. The realigned river channel will be designed so there is no physical or hydraulic obstruction to fish passage. A variety of substrates and micro habitats will be provided along the channel to minimise impacts on fish.

The EIS documents detail a planned comprehensive monitoring program for the Freshwater Sawfish in the McArthur River.

The following two vulnerable species have habitats potentially affected by the project:

Red Goshawk – Was tentatively recorded in the project area in 1992 but has not been sighted in any subsequent surveys.

Australian Bustard – This species is present in low numbers in open woodland and grassland habitats on the McArthur River floodplain.

No significant impact on any of these species is expected from the open cut project.

Ecosystems within and around the mining lease will continue to be monitored throughout the development and operation of the open cut.

There will be no changes to the operation with regard to port facilities or marine operations.

There is a marine environmental monitoring program in place to monitor impacts on water and sediment quality. Studies on seagrass and marine biota are part of the current site monitoring program. Refer to Factsheet 5: Riverine and Marine Environment.

It is expected that the open cut operation will have no impact on marine species and the marine environment.

Groundwater

A system of groundwater extraction bores will be built around the open pit to prevent groundwater flowing into the pit, which would interfere with mining activities. The extracted groundwater will be used as process water in the process plant.

Extracting the groundwater will cause groundwater levels surrounding the pit to drop. The EIS documents contain a full assessment of the groundwater impacts.

Even without mining, groundwater levels in the area fluctuate naturally by up to six metres between the wet and dry season. Once mining has stopped, groundwater will return to its pre-mining levels.