chairman message from the scope of the report

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1 A U S T R A L I A N C E M E N T I N D U S T R Y S U S TA I N A B I L I T Y R E P O R T

2 about CIF The Cement Industry Federation (CIF) is the national body representing the Australian cement industry, comprising the three producers Adelaide Brighton Ltd Blue Circle Southern Cement Ltd Cement Australia Pty Ltd Together these companies account for all of the integrated production of clinker and cement. Their operations are located around Australia, and include 15 manufacturing sites, 10 mines and 74 distribution terminals. In 2004, the industry employed 1840 people and produced over nine million tonnes of cementitious materials, with an annual turnover in excess of $1.25 billion. In collaboration with its member companies, the CIF works to advance a competitive and sustainable Australian cement industry that is committed to best practice in all areas of cement production. 2

3 message from the chairman It is my pleasure to introduce the first Sustainability Report from the Australian cement industry. In previous years we have produced two reports that highlighted the industry s benchmarks in environmental practice, reviewed performance and considered future challenges. This year we have extended the environmental reporting to include a wider range of sustainability issues as well as increasing our focus on long-term challenges and opportunities. In pursuit of sustainable development in the global cement industry, the World Business Council for Sustainable Development launched the Cement Sustainability Initiative (CSI) in The CIF and its member companies are pleased to be participating in this initiative, and have used their actions in the six CSI criteria as a basis for this Sustainability Report. The Cement Sustainability Initiative aims to increase both the cement industry s contribution to sustainable development and public understanding of that contribution. Each member company has already undertaken a wide range of environmental and social actions, and are rightly proud of their achievements. But there is still much to be done, and we must continue to find responsible avenues to integrate strong financial performance with an equally strong commitment to social and environmental responsibility, while always maintaining open dialogue with stakeholders. As part of our desire for continual improvement I welcome your feedback on this report through our website: Mark Chellew CIF Chairman scope of the report This report builds on the environment reports of 2000 and 2003 and discusses sustainability performance using the six criteria of the Cement Sustainability Initiative: Climate protection Fuels and raw materials Employee health and safety Emissions reduction Local impacts Internal business processes These criteria cover all stages of cement production. The report also focuses on the challenges to achieve sustainability, opportunities presented by new technology, and opportunities that could arise from international research. The successes are also highlighted, and include case studies from CIF member companies. The long term future will require an integrated approach, with careful investment in new technology and processes to improve sustainability and ensure financial viability. 1

4 what is cement? In 1824, English bricklayer Joseph Aspdin took out a patent on a product he called Portland cement. The material s colour was similar to stone quarried at the Isle of Portland. Since then Portland cement has proved a versatile and inexpensive construction product, and created an efficient industry that uses technology to advance sustainable development. Cement making is a capital and energy intensive industry. Performance improvements increase efficiency in resource management, ecosystem protection, pollution reduction and improve quality of life. Cement is the glue that binds aggregates together to form concrete, one of the key construction materials available today. Second only to water, concrete is the most consumed material on earth, with three tonnes per year used for every person. Twice as much concrete is used in construction as all other building materials combined. Construction of a typical family home requires 14 tonnes of cement, and a kilometre of freeway contains as much as 2500 tonnes of cement. There is little doubt that concrete will remain in use well into the future. Varying the mix of cement, sand and aggregate enables concrete to be used in a range of applications. A building can be made to last for 100 years. Products can be designed, coloured and shaped to accommodate a variety of environmental conditions, architectural requirements and to withstand a wide range of loads, stresses and impacts. The pre-mixed concrete industry consumes the greatest volumes of cement, using it in applications including: concrete slabs and foundations for buildings, roads and bridges precast panels, blocks, and roofing tiles fence posts, reservoirs and railway sleepers. Table 1: Technology used to manufacture cement in Australia 1990 and 2005 Cement is also used in bulk quantities in other diverse applications including: stabilisation of roads and rocky surfaces backfill mining operations and casings in oil and gas wells renders, mortars and fibre board. Once the useful life of a concrete structure has passed, the concrete can be recovered during demolition and recycled for use as construction roadbase and aggregate. The industry supplies almost all the cementitious requirements of the Australian market from local manufacturing sites. The term cementitious materials includes all types of cement and supplementary cementitious materials (SCM) such as flyash and blast furnace slag that are used as an alternative for cement in concrete. Imports and exports constitute between 10 and 14 per cent of the total Australian production of cementitious materials, supplementing any shortfall in supply as market demand changes. Over the past 15 years, substantial capital investment has been undertaken in new and upgraded capacity, particularly installation of state-of-the-art precalciner dry-process clinker technology at the expense of older wet process equipment. The use of modern technology by the Australian industry is now similar to that in highly developed countries like Germany and Japan. Clinker Production * Includes kilns under construction to be completed in 2005 Source: CIF Annual Survey 2004 Precalciner Dry process 8% 74%* Dry process 31% 10% Wet process 61% 16%

5 Clinker and cement production Production in tonnes (millions) Cement Clinker Social Clinker production by kiln type Cement manufacturing is a highly technical industry that employs a wide range of skills at a variety of levels. Due to its regional nature these roles are spread across Australia. The Australian industry works closely with the international scene, importing world class technology and practices. Locally the industry uses innovation and opportunity to introduce new ideas and involve other industries, integrating practises that strengthen the manufacturing base of Australia. Environment Materials ( 000 tonnes) Production in tonnes (millions) SCM used in cement or on sold for contrete production Kiln type Precalciner Suspension preheater Semi wet/dry Long wet Total SCM in concrete Limestone in cement Slag in cement Flyash in cement The cement industry has opportunities to reduce the environmental effect of both industry and the community through the use of alternative fuels and raw materials. In addition, supplementary cementitious material (SCM) utilises suitable wastes in the cement making process instead of clinker. These actions not only conserve natural resources and reduce landfill but in many cases reduce greenhouse gas emissions. Advances in technology also contribute to reducing the impact on the environment. Economic While Australia is a relatively small market by world standards it has a good supply of raw materials for cement manufacturing. The industry has invested and worked to remain globally competitive by modernising plants and opening cement standards to the use of SCM in concrete and mineral additions in cement. These actions also reduce production costs. Taxes and charges ($millions) Efficiency gain Employee costs ($millions) Employee productivity Fuel and power efficiency gains since % 30% 25% 20% 15% 10% 5% 0% -5% Government payments Employee costs (note: 2004 data unavailable due to company merger) Staff at year end = 1000 staff Tonnes cement produced per employee = 500 tonnes cement Fuel Power Government taxes Federal State 3

6 cement manufact R AW M I X R O TA RY K I L N F U E L S Clinker production Raw materials The main raw materials used in cement manufacture are limestone, shale, clay, sand and iron ore. These natural materials are extracted from mines and transported to the cement plant, where they are blended to manufacture the required cement quality. Environmental issues arising from the handling of raw materials, including dust and stormwater runoff, need to be managed at both the mine and cement plant. The industry is uniquely positioned to responsibly use waste products as an alternative to natural raw materials. This reduces the environmental impacts of mining and landfill. Precisely combining calcium, silica, aluminium and iron is essential to ensure the target chemistry for clinker is achieved. Once the correct balance of raw materials has been achieved, the raw mix is very finely ground into raw meal. Raw meal is heated to 1000ºc extremely quickly, calcining the calcium carbonate in limestone to calcium oxide before being fed into a rotary kiln. This process is heated by a precalciner burner. In the rotary kiln tube, the feed moves slowly as the tube rotates, becoming hotter as it approaches the kiln flame, reaching a temperature of 1450ºc. At this temperature a calcium silicate matrix called clinker is formed. The clinker is then cooled rapidly and stored. No ash is produced. Materials fed into the process become part of the clinker, ultimately forming an intrinsic matrix in which the materials are fixed and immobile. High temperature, long retention times and complete combustion are strengths of this process. The continuous process and strict, highly technical control ensures the conversion of the materials into a new product. This is vital to produce cement clinker with a mineralogical structure that is highly reactive with water. To conserve natural resources and reduce CO 2 emissions, alternative fuels such as waste tyres, timber, oils and other materials are used. The combustion of fuels, and the conversion of limestone to clinker releases emissions such as CO 2, metals, oxides of nitrogen (NOx) and dust which are monitored and regularly reported as part of each site s licence to operate. Manufacturing sites in Australia monitor emissions as key environmental indicators. 4

7 ure At every stage, products are chemically and physically tested to ensure they meet the strict specifications and performance B A L L M I L L requirements of the customer and Australian standards. S C M C E M E N T P O W D E R Cement grinding Once cooled, clinker is ground with gypsum and other minerals, such as limestone, to produce the grey powder commonly recognised as cement. Changing the chemical composition of the raw mix enables cements with different properties to be produced for different uses. Cement can also be blended with supplementary cementitious materials (SCM), such as flyash and slag, to make blended cements. Cement is then pumped to silos for storage and dispatch. The manufacture of cement is energy intensive, with each grinding stage using significant amounts Mineral additions and SCM are added to reduce the amount of clinker in cement. This in turn reduces the fuel, power, process emissions and raw materials associated with cement production. At the same time it creates a use for material considered to be a waste product of other industries. Distribution Cement and SCM are distributed by road, rail or sea. of electricity which contribute indirectly to emissions of CO 2 from power generation. 5

8 CIF members recognise that running their operations according to the principles of sustainable development is essential in today s world. commitment to su World Business Council for Sustainable Development The World Business Council for Sustainable Development (WBCSD) launched the Cement Sustainability Initiative (CSI) in 1999, and then in 2002 the Agenda for Action, with six key areas forming the structure of this report. Within that agenda, action is being undertaken by the global cement industry over a five-year term. The CIF is a Project Partner in the CSI, and member companies are committed to making an effective contribution. This involvement has included supporting the formation of common protocols for CO 2 accounting, selection of fuels and raw materials for cement manufacturing, health and safety guidelines, community engagement and government interaction. These protocols have been adopted by the Australian industry with local manufacturers made increasingly aware of issues affecting the industry internationally and strategies in operation elsewhere. The monitoring of research and development in technology and emission regulations has contributed significantly to the Australian industry s efforts to ensure its standards are world class. The four basic principles for the cement industry s contribution to sustainable development are: Promoting quality of life Producing high-quality cement products for all types of construction projects, while protecting health and safety. Providing preferred employment opportunities and working with our local communities. 6 Through the CSI, the Australian cement industry has widened its focus from environmental to sustainability reporting, which is a progressive step for all stakeholders involved in the industry s evolution. Protecting ecosystems: Actively preventing mining or related activities from systematically degrading natural systems beyond rehabilitation or recovery. Managing resources Increasing the efficiency with which the industry uses energy and material resources, and identifying new ways to use by-products from other industries. Reducing pollution Minimising concentrations of polluting substances that are present in the air, ground, or water as a result of cement manufacturing activities.

9 stainability Greenhouse Challenge Reflecting the industry commitment to climate protection, the CIF has been a member of the Australian Government s Greenhouse Challenge Program since After this agreement lapses in 2005, the CIF will commit to fresh targets for 2012 under the new cooperative agreement, part of the Greenhouse Challenge Plus program. Sustainable development: development that meets the needs of the present without compromising the ability of future generations to meet their own needs Environmental reporting The Australian Government mandates annual reporting of emissions in the public National Pollutant Inventory (NPI). CIF members have combined their resources to improve accuracy in reporting across the industry, raising the usefulness of the NPI data base. The CIF has used an industry wide investigation into process emissions to further Australian Government work in verifying a national dioxins inventory. The CIF will continue to support the development of the government s National Implementation Plan for Persistent Organic Pollutants. WORLD COMMISSION ON ENVIRONMENT AND DEVELOPMENT 7

10 climate protecti National greenhouse reporting Climate protection is recognised as an important challenge for the cement industry as it directly contributes 1 per cent to Australia s GHG signature. An early industry initiative came through a voluntary agreement with the Australian Government using the Australian Greenhouse Challenge Program. Greenhouse emission (GHG) reduction plans commenced at the signing of this agreement in This required annual greenhouse gas emissions reporting to the Government through an industry-developed protocol, the Greenhouse Energy Management System (GEMS). The CIF s 2004 survey shows abatement projects are expected to yield a 2005 benefit that is 70 per cent better than the reduction target set in the 1997 agreement. The combined industry inventory in the report shows emissions have been reduced by 21 per cent per tonne of cementitious material. This has been achieved by investment in world class technology including: precalciner kilns to make clinker high-efficiency classifiers fitted on grinding operations power controls on filters heat recovery initiatives low-energy conveying systems to transport plant materials substitution of low GHG emission fuels for coal substitution of low GHG emission raw materials for limestone use of SCMs as alternatives to cement in concrete. The top five abatement projects highlighted in the 2004 Greenhouse Challenge Report are: upgrade of a pre-heater kiln to best available technology (BAT) upgrade of a clinker cooler to increase power efficiency installation of a high efficiency separator on a cement mill addition of slag, a waste from steel production, to replace limestone in raw mix optimising raw mix composition through improved mine modelling and extraction techniques. International GHG reporting 8 As a participant in the CSI Agenda for Action, the Australian industry furthers its involvement in global climate protection initiatives. Joint activities nominated by the Agenda for Action include developing a universal framework for measuring and reporting greenhouse gas (GHG) emissions from the cement industry. The CIF has been active in helping develop this framework, to ensure consistent, relevant greenhouse emissions inventory reporting and practicability. The CIF s experience in GHG reporting has enabled the cement industry to maintain comprehensive data from The industry has focused on efficiency indicators that monitor performance within its control, such as reducing GHG emissions from the amount of fuel required to produce one tonne of clinker. Other measures such as the absolute amount of GHG emitted from the process are also reported.

11 on The second joint project identified by the CSI Agenda for Action is to work with the WBCSD and other bodies to develop public policy and market mechanisms for reducing CO 2 emissions in the industry. In Australia the CIF is supporting this by: Participating in national greenhouse debate through the Industry Action Agenda Working Group on Energy and Greenhouse issues. Discussing the industry s role post-kyoto. Investigating technologies that have benefits in sustainable building materials and GHG mitigation. Reviewing the Australian Greenhouse Office, Greenhouse Challenge Plus program. Reviewing the development of state and commonwealth greenhouse policy. Participating in streamlined government reporting of energy efficiency and greenhouse emissions. 9

12 A new commitment to greenhouse gas reduction Following eight years of involvement in the Greenhouse Challenge, the CIF is renewing the industry s targets, and will sign another cooperative commitment in The next agreement will be aligned with the WBCSD CO 2 protocol and will set abatement targets for the industry in Other activities focused on improving inventory accuracy include: verification of calcination factors by site for the Australian cement industry lodgment of supporting documentation for the industry s 1990 baseline inventory development of a common greenhouse calculator for estimating CO 2 savings from site projects. The abatement of CO 2 through the Greenhouse Challenge Program One of Cement Australia s first greenhouse projects at Railton was to plant a tree farm to help offset the generation of greenhouse gases. More than Eucalyptus globulus (Tasmanian Blue Gum) trees were planted over 275 hectares at the plant. Growth rates have been excellent, with the trees currently over 10 metres high. It is estimated that the trees will absorb over tonnes of carbon dioxide over 15 years until harvesting. This project forms one of Cement Australia s abatement projects under the Greenhouse Challenge program. Tonnes CO 2 abated (millions) We are in an industry that can make a difference 10

13 Cementitious material sales and CO 2 emissions Production of cementitious material in tonnes (millions) Tonnes CO 2 emissions per tonne of cementitious material % reduction in CO 2 emissions per tonne of production since Use of blast furnace slag as a calcined raw material in kiln feed Adelaide Brighton Angaston Diminishing supplies of Birdwood clay prompted Adelaide Brighton s Angaston operations to seek an alternative raw material to assist in the manufacture of its popular Brightonlite cement. After implementing an action plan and gaining the appropriate approvals, Angaston began conducting trials using blast furnace slag, a by-product of steel manufacturing. Results found that the slag is an ideal alternative to Birdwood clay in making Brightonlite clinker. Slag contains calcium, silica, and alumina with very low iron oxide, all of which have been calcined, driving off any CO 2 during the steel making process. As the slag has been heated previously, less fuel is required to be burnt in the kiln, reducing the CO 2 emissions from combustion. In addition, the calcined calcium in the slag replaces limestone in the raw mix, which is another source of CO 2. Furthermore, as a raw material the slag doesn t require crushing, saving indirect emissions of CO 2 from power generation. The team at Angaston has demonstrated a total of 9000 tonnes of CO 2 reduction per year when using slag. 11

14 fuels and raw m Manufacturing cement requires intensive use of energy and resources, however, sustainable development can be achieved through increased efficiency. The versatility of the cement making process enables the safe use of by-products from other industries as raw materials, fuels or constituents of cement. These by-products meet strict quality specifications to ensure the cement meets customer performance specifications, and their use contributes to sustainability by reducing both landfill and emissions and preserving valuable natural and non-renewable resources. Use of alternative fuels such as demolition timber results in a GHG benefit because the emissions from combustion are lower than would otherwise be released if the material went to landfill. Other alternative fuels such as tyre chips or used oils also reduce landfill and are lower emitters of GHG than their fuel equivalent in coal. A cement kiln using waste materials retains ash and other residual constituents incorporating them into the clinker. Using by-products provides a whole-of-life waste management option that can be economically viable, regionally available and environmentally sound. The industry s viability is dependent upon minimising costs, utilising less expensive alternative raw materials and fuels, and advancing the industry toward greater sustainability. Steel slag, mill scale, fibre board waste and spent catalysts from the petroleum industry are Demolition timber as an alternative fuel Adelaide Brighton Birkenhead In an effort to reduce its reliance on fossil fuels and cut energy costs, Adelaide Brighton s Birkenhead plant trialled a number of alternative fuels before finding a solution, demolition timber. Traditionally reliant on natural gas, Birkenhead developed a strategic plan which had a focus on alternative fuels. The plan had plenty of clout, not only including both plant and management resources, but was driven and monitored by the Managing Director and Board of Adelaide Brighton. Through modelling and researching the effects of demolition timber in the Birkenhead plant, it was decided that the proposal could meet the specific requirements of the calciner and environmental standards. Discussions were conducted with the EPA and community to ensure that the burning of demolition timber was not only within government health guidelines, but met with the approval of local residents. Trials were conducted and emissions monitoring found there was no increase in heavy metals or organics, which include dioxins. In fact a drop in nitrogen dioxide emissions proved an environmental win for all involved. Birkenhead s use of demolition wood as an alternative fuel means that the tonnes available in South Australia no longer end up as landfill. 12

15 aterials used at Blue Circle Southern Cement s Berrima plant to substitute for tonnes of natural materials. The company s Waurn Ponds plant has been using waste oil for fuel since Tyres followed and the plant now consumes 1.2 million a year, about half of Victoria s annual tyre dump. Some 45 per cent of Waurn Ponds conventional fuel needs are being met using alternatives. Other cement companies are using these and other materials. At Cement Australia s Gladstone plant spent solvents provide fuel, while at Adelaide Brighton s Birkenhead plant, wood from the construction and demolition waste stream will replace 30 per cent of the fuel requirement by At its Gladstone plant, Cement Australia is using spent cell liners (SCL) from Comalco s aluminium smelter. SCL is a carbon-based waste from the electrolytic cells that convert alumina to aluminium. It is a valuable fuel replacement for coal, and its silica and aluminium content are needed for making clinker. The use of calcined SCL as an alternative fuel has been positive; Cement Australia has seen no change in cement strengths with only benefits flowing to local industry and the environment. The Australian cement industry will continue to work with regulators and local communities to improve sustainability by using alternative fuels and materials in cement manufacturing. The industry is proactive in using alternative raw materials and fuels to reduce the use of fossil fuels and natural materials Use of alternative raw materials and fuels Tonnes raw materials per tonne cement produced Alternative fuel as percentage of total thermal fuel use 6% 5% 4% 3% 2% 1% 0% Equivalent coal conserved by use of alternative fuels ( 000 tonnes)

16 employee health CIF members are committed to protecting the health and safety of their employees, contractors and visitors in all areas of their operations. The cement manufacturing process is a complex heavy industry, employing many people in a variety of roles, and utilising road, rail and maritime transport to supply customers all over Australia. Significant hazards exist in all areas of cement plant operations, requiring a proactive approach with management, employees and contractors working together to control and prevent harm. CIF members comply with national and state safety legislation as a minimum, using customised systems and policies to ensure compliance and a culture of continual improvement. As the Australian cement industry is small by world standards, it is important for member companies to share information and best practices. The CIF provides the opportunity for such involvement, establishing an Australian taskforce in 2004 to share resources and work with the CSI taskforce to improve conditions in the local industry and globally. The safety performance of the industry has improved markedly over the past few years, with the number of lost time injuries reducing by 48 per cent in the three years to CIF member companies are adopting lead safety indicators as well as traditional lag indicators such as the lost time injury frequency rate. The industry strives to continually improve practices and site conditions to control and reduce risks. Risk management focuses on investigating the likelihood and consequences of incidents. The global cement industry is high risk when judged against other comparable manufacturing industries. The Australian performance, however, has been significantly better than that of overseas cement producers, with no fatalities since Nevertheless, the CIF launched an important initiative to prepare 18 fatal risk control protocols to guide management toward holistic systems that prevent serious injuries From compliance to belief Blue Circle Southern Cement Safety Leadership Team By thoroughly re-evaluating safety practices at its NSW operations, Blue Circle Southern Cement has successfully applied a vision that takes safety from simply compliance to true belief. An unacceptable injury record in 2002 prompted the company to enlist consulting expertise to define where it could improve. After conducting one-on-one employee interviews, a report was tabled identifying key areas in need of change. A meeting of top 20 BCSC NSW managers was organised to review the report. A safety leadership team was promptly established to bring about cultural change. The team committed to meeting every six weeks and became responsible for executing an annual safety action plan. Under the Think Safe, Work Safe, Live Safe, Drive To Zero banner, BCSC NSW has seen a remarkable improvement over the last two years, with hours lost reduced by 80 per cent, workers compensation cost down by 60 per cent and the 12 month rolling lost time injury frequency rate reduced from ten to less than two. 14

17 and safety or fatalities. This was prompted by a serious incident that resulted in burns to two employees at Blue Circle Southern Cement s Waurn Ponds plant in Even though the likelihood of such serious injuries is low, the industry recognises that it must engender a culture of safety first as its highest value and not become complacent. The protocols are targeted at eliminating hazards that, according to research, cause serious incidents in cement plants worldwide. CIF member companies are undertaking proactive initiatives to develop and implement integrated management systems. These measures have demonstrated benefits in improved morale, increased employee involvement, and substantial reductions in injuries leading to overall improved safety performance. Examples of such initiatives include: Adelaide Brighton s implementation of a comprehensive safety, health and environment management system. Cement Australia has developed a safety, health, environment and quality management program and is currently seeking system certification at key plants. Cement Australia s use of video as a medium to illustrate issues relating to lessons from incidents and good practices. Blue Circle Southern Cement s implementation of an injury management provider service which targets the early intervention in all cases of injury, as well as a health and wellbeing program. CIF members are committed to the effective control of all hazards in daily operations, nothing but a zero harm approach to safety is tolerable Lost time injuries Lost time injuries Lost time injuries per million hours

18 emission reductio Emissions from the cement manufacturing process are primarily airborne. The industry is committed to emission control and reduction in line with government and company health and environmental codes. The cement industry operates under both national and state legislation for the management of the environment and also has specific licence conditions and reporting requirements for the operation of plant equipment. Commonly monitored air emissions include the typical parameters of dust, and various products of combustion, such as oxides of nitrogen and sulphur. Also parameters that may be present in trace amounts include inorganic substances such as heavy metals and organic compounds like volatile organics, dioxins and furans. In its effort to better understand emissions, industry investment is being directed toward new technologies that test and model emissions. Protocols have been established and computer models developed to relate stack emissions to ground level concentrations (GLC) for correlation with environmental and health standards. The industry works closely with government to ensure quality information is readily available. Adelaide Brighton s Munster plant used advanced computer technology in atmospheric modelling to determine the benefits of installing a state-of-theart dust filter. Under a range of meteorological conditions the reduced GLC of dust were calculated from real emission data. The CIF has joined with government to provide resources for assessing air quality in Australia. Direct measurement data from cement plants has been used to establish Australia s national dioxin inventory and show that cement industry emissions are low regardless of the plant type and fuels. Dioxins belong to the persistent organic pollutants group which is of worldwide concern. In supporting Australia s commitment to international treaties the industry participates in discussions internally, with other industries, and with environment and government groups. These discussions lead to policy setting and prepare the cement industry for changes in emission measurements and standards. Sharing information about new technologies and process improvements is valuable and the industry regularly monitors developments in air quality standards in Europe to compare with local performance. Various projects have been implemented to reduce other emissions such as water, noise, and waste to landfill. Harvesting storm water for dust supression or diversion to specially prepared seasonal wetlands has been successful. Cleaner production initiatives to segregate site waste for recycling into cement making or facilitating other recycling opportunities continue to reduce waste to landfill. Cement kiln dust (a waste product in some plants) is, however, likely to increase as more alternative fuels and raw materials are used. In 2004, the manufacture of cementitious material utilised 60 times more waste than it produced for landfill. 16

19 n Emissions from cement manufacturing facilities in Australia are monitored regularly to: control manufacturing processes for product quality and protection of equipment meet operating licence conditions meet national reporting requirements such as the National Pollutant Inventory, National Dioxin Program, Stockholm Convention, NEPM Air Quality (National Environmental Performance Measures) monitor specific effects of interest to local communities investigate the outcome of changes in process operations. Blue Circle Southern Cement s Berrima works installed best available technology in low- NOx precalciner and kiln burners. Following installation NOx emissions were shown to have reduced by 60 per cent, and are now amongst the lowest for Australian cement kilns. Emissions Cement kiln dust dumped ( 000 tonnes) NOx emissions from kiln exhausts ( 000 tonnes) Dust emitted to atmosphere from kiln exhaust (tonnes) A beautiful outcome for the environment Blue Circle Southern Cement Berrima A beautiful outcome for the environment is how Blue Circle Southern Cement Berrima describes the environmental benefits resulting from the upgrade of Kiln 6. A study identified an annual tonne shortfall in the supply of clinker on the Eastern seaboard. After looking at alternatives, BCSC decided that an upgrade of Kiln 6 offered the best solution, economically and environmentally. Overall the project successfully reduced process emissions by: 24 per cent reduction in greenhouse gasses (GHG) per cent reduction in dust emissions 60 per cent reduction in oxides of nitrogen 95 per cent reduction in sulphur dioxide 85 per cent reduction in carbon monoxide The upgrade installed world best technology into Berrima s clinker production, meeting the objectives of the CSI to lower emissions while ensuring BCSC could meet demands for clinker with a modern, efficient plant. 70 per cent reduction in heavy metals The reduction in GHG is the equivalent of removing close to cars from the road. Berrima is proposing to use alternative fuels to further improve its performance and commitment to sustainable cement production. 17

20 local impacts The cement industry recognises the impact a large manufacturing facility can have on a local community and the need for open communications between all stakeholders. Improved process technology has significantly reduced emissions from cement manufacturing. This investment in new technology and environmental monitoring, combined with active community participation, are essential to building relationships. CIF members have regular contact with their communities through public forums such as meetings, open days and newsletters. Furthermore there is voluntary and mandatory public reporting through government environmental programs. Receiving and investigating a community report on impacts is important for any site in its effort to construct an open and transparent relationship with its community. Environmental improvement plans registered by state environmental authorities offer opportunities for interested stakeholders to participate and monitor site improvements. Community relations are also a high priority for the CIF s Sustainable Development Taskforce. The taskforce shares information so that member companies can learn from each other and continually build better relations with local communities. The industry also looks for opportunities to celebrate events with the community by supporting local initiatives and celebrating its own milestones. All manufacturing sites are part of their local community and many employees of the cement industry are themselves concerned local residents. Examples of com Conservation projects include: Preservation and restoration of a traditional resting place of the local Watherong people in Waurn Ponds, VIC Agricultural education project, Gladstone, QLD Sponsorship of Conservation Volunteers Australia and support of the Bushcare Group at Berrima, NSW Revegetation projects incude: Rehabilitation of Darra cement works site to build the community Riverside Park in Brisbane, QLD Funding world first research in deep water seagrass rehabilitation at Cockburn Sound, WA Seed collection for propagation in other local areas from remnant vegetation located in a quarry. Angaston, SA 18

21 munity projects Assistance to non profit organisations: Providing equipment for Little Athletics Devonport, TAS Sponsorship of local charities as employee safety incentives during annual plant maintenance weeks, Adelaide, SA Sponsorship of the Juvenile Diabetes Research Foundation, NSW Indigenous employment initiative to identify opportunities for local people in Maldon, NSW National Youth Science Forum Bronze Sponsor and Industry Partner since 2002, Canberra, ACT In 2002, Adelaide Brighton s Munster plant community consultation program was broadened and upgraded as a stakeholder reference group. It included representatives from state and local government as well as local residents and interest groups from outside the surrounding area. The stakeholder reference group meets regularly, with an independent chairperson and a community working group charter. The Department of Environment has accepted the reference group as able to review the company s environmental licence performance. Three licence renewals have now been agreed upon by all stakeholders. Most importantly a greater openness and transparency exists in communication between the company and the community. What leaves our site boundaries is of great concern to our neighbours Rehabilitation of the old Kandos Shale Mine Cement Australia Once described as a terrible eyesore, Cement Australia and the local community worked to transform the disused Kandos Shale Mine into a conservation site that now supports several thousand young plants and trees. The rehabilitation project required the sorting of mine debris, installation of drainage systems, leveling out and stabilisation of unstable and steep surfaces, and with assistance from 300 local schoolchildren, the planting of trees. To minimise waste, Cement Australia used much of the former mine s refuse in the rehabilitation and beautification process. During the mine s glory days, little consideration was given to the concept of rehabilitation so what was essentially a mined and forgotten site has been reborn as a place for nature conservation. The project also fostered a greater relationship between Cement Australia and the Kandos Rylstone community. 19

22 internal business p The CIF and its member companies are integrating sustainable development into internal business processes, so that sustainable processes become part of everyday operations, and create long-term value for the industry and community. The Cement Industry Sustainability Awards will recognise contributions to a more sustainable industry. The CIF s annual survey provides a comprehensive review of the industry s performance, costs and profitability. It includes sustainability items such as the use of alternative fuels and resources, and greenhouse gas generation. The survey provides key indicators that are used to monitor industry performance. This survey has been carried out since 1989 and is independently prepared by PriceWaterhouseCoopers. Individual member companies are integrating sustainable development requirements into their businesses, so that sustainable development is part of their operating culture. Examples include: Cement Australia has an integrated safety, health, environment and quality management system designed to comply with international and Australian standards. All major plants have iso9001 quality management system certification, and the company has embarked on having the system certified against the iso14001 environment standard and the as4801 safety standard at five key plants, by mid All of Adelaide Brighton Cement s South Australian operations are iso14001 certified, while all operations have iso9001 Quality Management Systems Certification. Blue Circle Southern Cement employs a sustainability diagnostic tool to measure and improve sustainable development performance. Assessments and independent reviews are undertaken every two years. Business ethics are integral to sustainable development. As part of the CSI Agenda for Action, member companies are required to develop and publish statements of business ethics. Cement Australia has developed a comprehensive group of values and guiding principles. Blue Circle Southern Cement has implemented a code of corporate conduct, and Adelaide Brighton has incorporated business ethics into its corporate vision. CIF members have integrated the industry greenhouse gas calculator for evaluation of projects into their planning and capital approval processes, and are also using it to report greenhouse gas reductions from abatement projects. The industry has combined its technical knowledge and initiative to forecast the effects on its performance of technological improvement to 2012 and beyond, and to address global sustainability issues such as waste management, resource conservation, energy efficiency and greenhouse gas reduction. The CIF has undertaken a number of initiatives in 2005 to promote sustainable development in the industry, and is proud to have published its first Australian industry-wide sustainability report. Other initiatives include the Cement Industry Sustainability Conference, which includes the presentation of the industry s first Sustainability Awards. The awards have created strong competition and opportunities to showcase the leading initiatives of the industry in all areas of sustainability. 20

23 rocesses A sustainability diagnostic tool A sustainability diagnostic tool developed from international methodologies has been used within Blue Circle Southern Cement to assess the level of sustainability practised in the business. It comprises twenty elements that represent a crosssection of the financial, environmental and social aspects of sustainability. Each element has four levels of achievement. Sustainability aspects 1 Corporate and business unit management for sustainability 2 Business financial planning for sustainability 1.1 Scope of commitment 1.2 Management systems: Quality, environmental, health and safety 1.3 Accountability 1.4 Risk management: New business and/or new development, plant and equipment 1.5 Compliance, review and reporting (CRR) 1.6 Continuous improvement 1.7 Marketing, procurement and supply chain 2.1 Planning and budgeting 2.2 Cost controls 3 Human resources 3.1 Communications, awareness and training 3.2 Employee and labour relations 3.3 Health, safety and wellbeing 4 Social responsibility 4.1 Community relations and engagement 4.2 Business ethics and corporate governance 4.3 External relations and communications 5 Environment 5.1 Land protection, remediation and rehabilitation 5.2 Environment and ecosystem protection 5.3 Waste and resources management, recycling and re-use 5.4 Energy conservation and climate change 5.5 Water conservation, extraction and protection 21

24 progressing susta In 2005 the cement industry is working with the Australian Government to produce the Cement Climate protection Fuels and raw materials Industry Action Agenda (CIAA) that identifies opportunities for and barriers to the cement industry s development to The agenda covers: energy and greenhouse trade sustainable development workforce and community. The Australian cement industry s sustainability journey will continue. Its objective is to be one of the world s most sustainable manufacturing industries. While significant progress has been attained, future actions of the member companies will support the goal, contributing to a modern sustainable lifestyle for all Australians. Commit to a new, national Greenhouse Cooperative Agreement with the Commonwealth in Incorporate the findings of the CIAA Energy and Greenhouse Working Group into Australian operations. Make reporting of GHG management an industry key performance indicator. Advocate to government, communities, standards bodies and the market the benefits of using alternative fuels and materials and gain national acceptance of the role of cement manufacturing in waste utilisation. Have all sites in Australia make the procedures in the CSI Guidelines standard practice. Take the findings of the CIAA Sustainable Development Working Group and encourage the industry to take a leadership position in driving sustainable development. 22

25 inability Employee health and safety Emission reduction Local impacts on land and communities Internal business processes Integrate the protocols of the CSI Guidelines into company reporting, and prepare a standard report structure on employee health and safety. Ensure fatal risk control protocols are part of every member company s management system. Develop lead indicators to reduce incidents of injury and risk. Develop the NPI reporting system to provide a consistent industry standard for reporting stack emissions. Review emission criteria with local authorities and determine common reporting targets. Review and develop the CSI protocol for environment and social impact assessment, and implement it with local community consultation groups. Exchange best practice information in quarry management and rehabilitation, based on successful projects undertaken by member companies. Extend the data gathered for industry environmental indicators. Implement the recommendations of the CIF Technology Taskforce s Cementing our future report, to guide the industry to a technical vision that includes current research and the capacity to incorporate future technologies. Produce an industry report every two to three years covering items of community interest relating to the performance and future of the industry. 23

26 Industry profile Darwin Cement plant Grinding mill Rockhampton Fishermans Landing Bulwer Island Sunstate Munster Birkenhead Angaston Kooragang Kandos Berrima Maldon Morgan Waurn Ponds 24 Acknowledgements The CIF wishes to Authors: CIF Sustainable Development Taskforce recognise and thank the following for their assistance to compile and review the Australian Adelaide Brighton Ltd Joseph Mazzone Mark Smith Blue Circle Southern Cement Ltd Michael Leggo Cement Industry Stuart Waldon Sustainability Report, Grant Williams Cement Australia Pty Ltd Bob Reid (chair) Stuart Ritchie Cement Industry Federation Robyn Bain Ros DeGaris Contributors CIF Technology Taskforce Member companies of the CIF Cement Concrete & Aggregates Australia Ms Robin Tennant-Wood, Director of Canberra Environment and Resource Centre, Australian National University Railton Glossary BAT best available technology CIF Cement Industry Federation CO 2 carbon dioxide CSI Cement Sustainability Initiative (part of the World Business Council for Sustainable Development) GEMS Greenhouse Energy Management System GHG greenhouse gases NOx oxides of nitrogen NPI National Pollutant Inventory SCL spent cell liners SCM supplementary cementitious materials WBCSD World Business Council for Sustainable Development Web references CSI website World Business Council for Sustainable Development National Dioxin Program National Pollutant Inventory Australian Greenhouse Office Stockholm Convention (POPs)

27 Raw materials: Limestone Raw materials: Marine limestone Alternative raw material:slag Raw mix Alternative fuel: Demolition timber Alternative fuel: Polyester resin Alternative fuel: Tyre chips Alternative fuel: Carbon dust Clinker Grinding balls SCM: Granulated blast furnace slag SCM: Flyash Cement powder being poured Bags of cement Photo: Cement Australia Alternative raw material: Slag surface Alternative raw material: Slag (surface) Alternative fuel: Polyester resin (surface) Raw material: Granulated blast furnace slag (surface) Alternative fuel: Carbon dust (surface) Stepstone pavers, non-slip Photo: Adelaide Brighton Ltd Thermal House, Toorak Photo: Cement Concrete & Aggregates Australia Bolte Bridge, Melbourne Photo: WinkiPoP Media Rocks Riverside Park, Brisbane Photo: WinkiPoP Media Chimney, Railton works Photo: WinkiPoP Media New dust filter, Munster kiln 4 Photo: Adelaide Brighton Ltd Kiln 6 construction, Berrima works Photo: Blue Circle Southern Cement Kiln 6, Berrima works Photo: Blue Circle Southern Cement Alternative fuel: Off spec wax (surface) Raw material: Limestone (surface) Alternative fuel: Demolition timber (surface) Tour of Berrima works Photo: Naomi Brown Photography Water testing Photo: WinkiPoP Media Children participate in a tree planting program Photo: Naomi Brown Photography Rehabilitation of the shale mine at Kandos works into beautiful parkland Photo: WinkiPoP Media Blue Circle Southern Cement open day Photo: Naomi Brown Photography Blue Circle Southern Cement open day Photo: Naomi Brown Photography Tour of Berrima works Photo: Naomi Brown Photography Shrine of Remembrance, Melbourne Photo: Cement Concrete & Aggregates Australia 25

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