Performance
Sustainable development
Safety
Safety performance and awareness continued to be a major focus at all operations. Despite this focus, there were 11 fatalities at managed operations and projects (La Granja and KUC) and three at non managed operations (Grasberg). In 2008 the all injury frequency rate (AIFR) for the Copper and Diamonds group was 1.03 compared to 1.34 in 2007.
Copper
In 2008 there was one fatality at KUC when a delivery driver was crushed while offloading pipe from a truck. For KUC the all injury frequency rate was 1.07 compared to 1.28 for 2007. Consistent with KUC's three year safety plan, safety improvement efforts during 2009 will be focused on quality safety interactions with employees and contractors and consistent safety communications regarding safety standards, safety leadership, contractor safety, and process safety.
At the La Granja project in Peru, in March 2008, three employees and seven contractors were fatally injured in a helicopter crash.
Palabora experienced an overall decline in its safety performance, with the all injury frequency rate increasing from 0.62 in 2007 to 0.86 in 2008. Root cause analysis indicated that the role and function of the supervisor is a key area where performance can be improved. A supervisory skills training programme is being implemented which will be compulsory for all leaders.
For Northparkes the all injury frequency rate improved significantly to 1.03 compared to 3.83 for 2007. This improvement resulted from a range of safety initiatives aimed largely at the contractor workforce. These initiatives included a greater focus on safety interactions and supervision, improved task based risk assessments and improved injury management processes.
Diamonds
For Diamonds, the all injury frequency rate improved to 0.94 compared to 1.50 in 2007. Diavik was awarded the John T Ryan safety award in the Northwest Territories of Canada and the Bunder project in India remained injury free for 2008.
Greenhouse gas emissions
Total greenhouse gas (GHG) emissions were 3.3 million tonnes of carbon dioxide equivalent in 2008. More than half this total is attributed to copper mining, smelting and refining activities at KUC. In recent years expansion at KUC and Diavik has overshadowed the impact of divestments and improvements at other sites.
Copper
KUC is committed to continual improvement in energy efficiency across the business. It accurately meters energy use, manages peak loads and has completed a variety of improvement projects including increasing motor efficiency and reducing fuel consumption, as well as introducing cogeneration at some plants.
KUC has participated on Utah Governor Jon Huntsman's Blue Ribbon Action Coalition, a committee that looked at ways to address climate change issues in Utah. In 2008, KUC's overall GHG emissions intensity increased, primarily due to lower than anticipated copper production. However, management initiatives have identified various improvement projects and gains in energy efficiencies. Substantial progress was made during 2008 embedding over 50 energy improvements across the business, ranging from reducing diesel consumption in haul trucks to upgrading motors, lighting, ore milling and flotation equipment.
Palabora's initiatives to increase awareness and maximise efficiency in operations resulted in reduced energy consumption. Overall energy consumption from all fuel sources was reduced by 5.8 per cent compared to 2007. Specifically, electrical energy consumed was reduced by 3.5 per cent largely through increased awareness and maximising efficiencies on various operational processes.
At Northparkes Mines, greenhouse intensity per tonne milled increased as a consequence of the resumption of open cut mining, processing harder ores and the construction works associated with the E48 project.
Diamonds
At Argyle, greenhouse gas intensity per carat produced increased in 2008 as a result of waste stripping in the northern part of the open pit and underground development. Argyle is investigating increasing the use of hydroelectricity in mine operations and improving the diesel efficiency of the power station. Greenhouse gas intensity per carat produced at Diavik increased in 2008 as the project transitioned from open pit to underground mining. Diavik is working on various projects focused on reducing fuel consumption.
At Murowa, greenhouse gas intensity per carat produced decreased in 2008 due to higher production efficiency. The focus in 2009 is on further improving production efficiency and reliability of electricity supply from the state grid.
