Our non managed operations
Our Group consists of wholly and partly owned subsidiaries, jointly controlled assets, as well as other entities and associated companies, some of which we do not manage.
Examples of these non managed operations include the Queensland Alumina refinery and Gladstone power station in Australia, the Escondida copper mine in Chile and the Grasberg copper-gold mine in Indonesia. Alcan is involved in six joint venture operations and has an additional two joint venture projects under way.
Although we may not be directly involved in managing these operations, we do remain closely engaged through membership of their boards of directors and technical committees. We encourage them to adopt our policies and standards in community relations, human rights, environmental stewardship and safety.
Our non-managed operations are as follows:
We have a 30 per cent interest in the Escondida copper mine in Chile, which is managed by BHP Billiton. Our seat on the mine's Owners' Council allows us regular input on strategic and policy matters. Through the council, for example, we were able to promote the idea of carrying out a social audit, the outcome of which was a series of useful recommendations that have subsequently been implemented.
We have also played a big part in helping to establish the Escondida Foundation. The Foundation is funded by about one per cent of the mine's pre-tax profits and is the vehicle through which Escondida fulfils its social responsibilities.
The Grasberg copper-gold mine in Indonesia is owned and operated by Freeport-McMoRan Copper & Gold. We have a 40 per cent joint venture interest in Grasberg's 1995 mine expansion and are represented on the joint venture's operating committee.
As well as providing substantial economic benefits to the state, Freeport Indonesia is the largest private employer in Papua and one of the largest in Indonesia. The mine supports the wage economy by directly employing approximately 8,000 workers. Of these, about a quarter are Papuans. Another 10,700 people are employed by contractors.
In the provision of healthcare, funding from the Freeport Partnership Fund for Community Development was used to build and expand two hospitals and a system of community health clinics in Papua.
The Grasberg mine is committed to building and maintaining positive relationships with its Papuan neighbours, in particular the indigenous communities closest to its area of operation. It has in place a Social, Employment and Human Rights Policy, designed to provide opportunities for social, educational and economic development, including special efforts to train and hire those indigenous to the area.
Both Freeport-McMoRan and our Group support the Voluntary Principles on Security and Human Rights and continue to work together to ensure practice is consistent with them.
To meet the mine's social obligations to local communities, at least one per cent of the mine's net sales revenues are committed to support village based programmes. In addition, two trust funds were established in 2001 in recognition of the traditional land rights of the local Amungme and Komoro tribes.
This is a joint venture, in which we are the largest shareholder, which will engineer, construct and operate Oyu Tolgoi in Mongolia, the world's largest undeveloped copper-gold project.
Rio Tinto held a 38.6 per cent interest in the Queensland Alumina (QAL) refinery at Gladstone until 24 October 2007; this increased to 80.0 per cent following the Alcan acquisition.
Rio Tinto Aluminium personnel visit QAL frequently and have carried out a health and safety audit of QAL's systems against our standards. The cross fertilisation of ideas between the two companies is extended by such means as QAL's participation in HSE workshops arranged by Rio Tinto Aluminium.
Port Waratah Coal Services, Australia
This is the world's largest coal producer and is located in the Port of Newcastle, NSW, Australia. It has an annual ship loading capacity of 102 million tonnes.
RioNor Exploration
This is a joint venture in Russia with Norilsk Nickel that aims to discover new mineral prospects. We have a 49 per cent share, and the operation is governed by an owners' council made up of three people from each company, with one of our executives in the role of general director.