RICHARDS BAY MINERALS Responsible Beyond Mining

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1 RICHARDS BAY MINERALS Responsible Beyond Mining

2 Company profile Richards Bay Minerals (RBM) has been in operation since 1976 and is the largest mineral sand producer and beneficiation company in South Africa. The company is a leading global supplier of titanium, rutile, zircon and pig iron. RBM contributes 50% by value of mining sector output in the KwaZulu-Natal province of South Africa, which equates to 3.3% of the national mining sector output. Respect for the environment is at the heart of our development strategy. We have developed a range of practical environmental programmes, from using our technological expertise to reduce emissions, to recycling water and progressively rehabilitating land into wildlife habitats. We make every effort to be compliant with the existing legislative requirements, and have often taken proactive steps above and beyond these requirements where it s important to our host communities. As part of the Rio Tinto Group, RBM practices responsible safety, health, environment and quality management and carries the internationally recognised ISO 9001, ISO14001 and OHSAS certification. Air Quality Our operations release gases and particulates into the atmosphere as a result of burning fossil fuels, moving ores and wastes, and smelting metals. To minimise possible health and environmental impacts from our production processes, we constantly review our emissions and look for ways to improve our performance through carefully applied controls. RBM s plan for air quality monitoring addresses all aspects of the 2008 National Framework for Air Quality Management and includes real-time emissions monitoring technology to monitor our impact on air quality. A minimum utilisation of 96% for a 30 day period is required for all air abatement equipment: RBM has been consistently compliant with this condition. RBM s dust fall-out is monitored on a continuous basis and is consistently below both residential and industrial limits. RBM s ambient air emissions have consistently stayed below both current and future NEMA: AQA limits. Over the last five years, we have proactively rebuilt our furnaces ahead of their design lifespan to improve on production efficiency and minimise air quality impact. We are currently improving our emissions abatement to achieve 2020 emission limits in terms of the Air Quality Act. Air quality station Richards Bay Minerals won the 2014 Annual National Association of Clean Air (NACA) Award for Industry in recognition of its efforts to manage air quality. A representative from the National Association of Clean Air with RBM s Nick Okello and Peter Eaglen at the gala dinner General Manager, Dr Peter Eaglen said that the award means that RBM is heading in the right direction in terms of its duty of caring for the environment. It does not mean that we have achieved all our goals, however, it emphasises the need for us as a business to continue implementing our group standards on environmental management and the requirements of our air emission license.

3 Waste Our mining and processing operations generate both mineral and non-mineral waste. Non-mineral waste is that which is not inherent to the beneficiation process e.g. general waste, scrap metal, hydrocarbon waste, building rubble etc. Mineral waste is that which is generated from the beneficiation process e.g. tailings and mineral residue deposits. We are committed to minimising all forms of waste through our approach of re-using, reducing and recycling. Effective waste management programmes also help us manage water quality and successfully rehabilitate land. Waste segregation using different colour codes enables separation at source and improves recycling efforts. All waste generated from site is disposed off-site by professional vendors in designated regulated areas and all waste service providers are required to provide disposal certificates signed by the recipient landfill site. Records are used to identify trends and serve as indicators for areas of improvement. RBM s focus in the recent years has been to reduce the financial and environmental liability of mineral waste and, at the same time, to increase the recovery of previously lost minerals. This led to the commissioning of our Tailings Treatment Plant at a cost of about R1bn to reprocess mineral tailings. We are continuously investing in the development of innovative technologies which focus on recycling of waste, such as the re-use of iron residue to make black top gravel for use in civil constructions. Michelle Boshoff, Nick Okello and Nelisa Dladla proudly show off RBM s waste management awards RBM became the first mining company in KwaZulu- Natal to be honoured by the Institute for Waste Management South Africa (IWMSA) at their annual Waste Management Awards in The Gold 4-Star Certificate and Best New Entrant Awards earned by RBM acknowledge the company s leadership in enhancing waste management practices, on-site recycling, proper record keeping and environmental compliance throughout their operations. General Manager, Dr Peter Eaglen, said the company is committed to controlling and disposing of waste in a responsible manner and is guided by legislation as well as Rio Tinto policies that outline very clearly the actions that must be taken to safeguard the environment. RBM s vision is to continue their focus on best practices, implementing the Group standards on environmental management and the requirements pertaining to its waste licence, says Eaglen.

4 Water Water is a vital resource for communities and ecosystems and is essential to our operations. We use water at every stage of our business: for exploration, mining, processing, smelting, refining, and drinking. Our operations rely on the ability to obtain water of suitable quality and quantity, and are committed to using water responsibly. RBM is an intensive water user, requiring 8 million cubic metres for beneficiation of the minerals we mine. RBM has an integrated water management strategy which ensures that the company recycles and reuses water. Improved water treatment capabilities ensure that the smelting and processing plants reuse water 21 times before it is sent to the mining ponds. This concerted water conservation effort was acknowledged by the Department of Water Affairs in 2013 when RBM was handed first place in the sector at the Water Conservation and Water Demand Management Awards. Although we work in an energy-intensive industry, we are continuously looking at ways to reduce our levels of greenhouse gas emissions Energy and climate change We work in an energy-intensive industry, and a secure, efficient and cost-effective electricity supply is important to help our operations respond to energy and climate challenges. We continue to rely heavily on fossil fuels, however, we invest in the research and development of new technologies that provide alternative sources of energy as well as reduce our levels of greenhouse gas emissions. As such, RBM reuses waste gas (CO) from the smelter plant as an energy source in the production process, which also allows for the reduction of GHG emissions. We are assessing the potential of establishing a co-generation plant for electrical power supply in order to further use our by-products. Significant investment in the refurbishment of all four smelter furnaces has improved production efficiency and, importantly, at the same time reduced our energy consumption and emissions. An integrated water management strategy ensures that the company recycles and reuses water as much as possible Furthermore, our rehabilitated dunal and commercial forests act as a net carbon sink, contributing to the overall regional carbon sequestration.

5 Dune Forest Rehabilitation The minerals we mine are biologically inactive and their extraction therefore has little or no impact on forest regeneration. Soon after RBM started mining the sand dunes in 1976, we launched a rehabilitation programme that is pioneering best practice in dune restoration. In accordance with our Environmental Management Programme, RBM is required to rehabilitate the area to previous land use. To date, we have committed over 1000 hectares for the restoration of coastal dune forests. Drawing on over 20 years of peer-reviewed research on dune rehabilitation by the University of Pretoria s Conservation Ecology Research Unit, we let indigenous ecological processes drive the forest development only interfering to control unnatural disturbances, such as fires, grazing by cattle, and to remove invasive exotic plants. The nursery where trees are grown for rehabilitating the forests The dune forest at RBM is a rich and diverse habitat with a compliment of species similar to that of the pristine dunes north and south of RBM. It is significant both in terms of its conservation impact but also because of the ecosystem services it provides to local communities. We are working with local authorities on a plan to improve land stewardship in the area. In turn, this will ensure the longterm sustainability of the regenerating forests through socio-economic upliftment programmes that encourage better agricultural and forestry practices, as well as opportunities to harness natural habitats as ecotourism destinations. Restoration of coastal dune forests

6 Biodiversity and responsible land stewardship A growing population increases competing demands between mining and other land uses, such as agriculture and eco-tourism. Mining activities by their nature impact on biodiversity, ecosystems and land use but also tend to lure more people to an area as infrastructure programmes provide better schooling, clinics and other services. Our goal is to achieve a net positive impact on biodiversity. We define biodiversity not only as the fauna and flora of natural environments but also the interface between people and the environment. We are therefore not only committed to conservation and the preservation of biodiversity in our rehabilitation efforts but we also seek to facilitate sustainable societal interfaces with biodiversity. As such, RBM applies Rio Tinto land use and rehabilitation standards to ensure sustainable stewardship of the land that we lease, and encourages sustainable stewardship by rural communities through environmental education and agricultural training programmes. We have also forged strategic partnerships with Ezemvelo KZN Wildlife and WESSA, amongst others, to deliver on these goals. Other environmental projects RBM is involved in a range of environmental projects that seek to raise awareness around responsible environmental management in local communities and to address local environmental challenges. Many of these projects are implemented in partnership with environmental and community organisations. Some examples are: Environmental education and implementation of the Eco Schools programme at local schools in partnership with WESSA Tree-preneurs, a Wildlands Conservation Trust programme which targets local women and child-run homes to grow indigenous trees from seed in return for bartered goods such as school shoes, school fees, food vouchers etc. Greenpreneurs, another Wildlands Conservation Trust programme that employs teams (dominated by women) from the local community to plant trees and conduct weeding in communal areas adjacent to the site The annual RBM Birding Weekend which encourages the greater Richards Bay, local community members and school children to participate in bird watching on RBM lease areas. Mine closure planning Mineral resources have a finite life span and all mines will eventually close. RBM continuously reviews its closure management plans to ensure adequate preparation is made for closure, from a financial, environmental and social perspective. Students receive a practical environmental lesson Our sustainable post-mining land use strategy involves working closely with stakeholders, including local authorities, communities and key conservation NGOs to understand their needs and concerns. Our goal is to realise a sustainable end-land use that will satisfy both local economic development and conservation goals beyond mining.

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