Legacy Management

Legacy Management
[email protected]
June 2013
riotinto.com
Legacy Management
Breathing new life into old sites
Sustainable solutions will meet
our global standards but will be
regionally and locally developed,
adapted and implemented
Legacy Management
[email protected]
June 2013
riotinto.com
Legacy Management in Rio Tinto
Cover image
Top
Flambeau mine during
operations in 1996
Bottom
The reclaimed
Flambeau
mine in 2012
Left
Mt Rosser, Jamaica
Below
The Flambeau mine
site now supports
a rich diversity
of wildlife
In our drive to improve the performance of our company
we have made a number of acquisitions and mergers.
Whilst these expansions strengthen our portfolio, they
inevitably include some sites that are either no longer
economically viable in their current form, or that have
been closed by their previous owners and require
additional remediation. Some of these are mine sites,
but many more are industrial operations such as
smelters, refineries, mills and sites of manufactured
products. We refer to these as our legacy sites.
We also apply this term to sites that have been operated
and closed by ourselves, which are now undergoing final
remediation and regulatory approval.
Expectations from governments and communities in
areas in which we operate are high and we are careful
to ensure that social, economic and environmental
sustainability is embedded throughout our investment
and operational cycles. At some of our legacy sites,
where we may have had little or no involvement, the
situation can be quite different and yet, little distinction
is made between issues that we may have generated
and those at sites that we have inherited. However,
regardless of the history of a problem, we naturally view
any issue on a property that we own as being one that
we need to address.
It is in our interest to decommission all our legacy sites
safely; rehabilitating the land and making it available
for re-use if desired, and also seeking opportunities
for social and environmental regeneration of the area.
Our reputation depends on our doing this responsibly
and effectively.
The management of these sites plays an important
role in our approach to sustainable development.
Good performance in legacy management and
closure can enhance our reputation and enable
us to maintain access to land, resources, people
and capital; to continue establishing new projects
with the support of local communities.
Expectations from governments and
communities in areas in which we
operate are high and we are careful
to ensure that social, economic
and environmental sustainability
is embedded throughout our
investment and operational cycles.
1
Legacy Management
[email protected]
June 2013
riotinto.com
Our team
Legacy sites are often regarded as liabilities, and yet we have found that through
careful management, applying innovative solutions where appropriate, and
working in close collaboration with others, these sites can often be transformed
into assets.
Below
Remediated Kirkvine
ponds, Jamaica
A dedicated team, Rio Tinto Legacy Management
(RTLM), drives our global programme, managing
a large number of sites in need of social and
environmental regeneration.
The Legacy Team works in close collaboration with
our closure and life cycle planning teams to ensure
that our standards and sustainable development
principles are adhered to.
The legacy management process also generates useful
transferable lessons for other areas within the wider
Rio Tinto team.
2
By sharing their experiences, RTLM plays a role
in ensuring that our operating sites recognise the
benefits of early engagement and the importance
of taking proactive measures for life after the
operations cease. This expertise is also invaluable
in recognising and assessing the legacy risks in
future acquisitions.
After we have closed, or in some cases sold a site,
there may be pockets of land or water bodies that
require remediation, monitoring and aftercare far
into the future. These commitments are also the
responsibility of the RTLM team.
Legacy Management
[email protected]
June 2013
riotinto.com
ent is essential throu
ghou
gagem
n
e
r
t th
lde
ec
o
h
e
ycl
k
a
e
St
Closure &
Life Cycle Planning
Legacy
Management
Exploration,
feasibility, design,
planning
and construction
Legacy
sites from
acquisitions
Operation
with continuous
restoration
Final
remediation and
regulatory
approval
Closure;
deconstruction
and
remediation
Monitoring
and aftercare
Economic
and social
redevelopment
3
Legacy Management
[email protected]
June 2013
riotinto.com
Our vision
We aim to ensure that our legacy sites are
made safe, that all problem areas are addressed
cost-effectively, and that there is a sustainable
socio-economic future for the community together
with a minimised aftercare burden.
Our guiding principles
Far right
Ryan mining camp,
Death Valley, US
> Every piece of land has an intrinsic value defined by tangible and intangible benefits.
> Key stakeholders will be meaningfully engaged in the development of sustainable solutions.
> These solutions will meet our global standards but will be regionally and locally developed,
adapted and implemented.
> Remediation will be suitable for the identified future use.
> Our remedial actions will be guided by our value creation and risk management approach,
delivering opportunities and mitigating threats.
> Our professional and business reputation is a key driver in the decision process.
> RTLM will actively share best practice in legacy management and will assist current Rio Tinto
operations to ensure that any future legacy is avoided.
Our success factors
The identified future use of a legacy site will be ultimately beneficial:
> Performing to recognized standards and regulations.
> Reducing environmental impacts and eliminating liabilities.
> Meeting the needs of communities.
> Promoting sustainable new projects.
> Minimising the cost of aftercare, and
> Maximising value for all stakeholders.
4
Remediation will be suitable for
the identified future after use
5
Legacy Management
[email protected]
June 2013
riotinto.com
Our approach
Whilst there may be similarities between operations, every site is unique and has
its own set of local issues. The options for successful remediation and re-purposing
of these sites will naturally differ accordingly.
Below
Punakaiki Coastal
Restoration Project,
New Zealand
Within our portfolio of legacy sites we have former
mines, landfills, impoundments, and former production
sites. These sites are at various stages of redevelopment
and, to date, our successes in regeneration have
included:
• New industrial developments,
• Residential housing,
• Sports stadium and training centre,
• Recreational lake,
• Tourist museum and heritage trail, and
• New landscapes that are farmed or simply returned
to nature.
To achieve success, it is vital that we understand the
local context as early as possible. To ensure that we have
as complete a picture as possible, we gather a reliable
fact base in the following areas:
• Community needs and expectations,
• Socio-economic conditions,
• Health, safety and environmental benchmarking,
• Technical and financial considerations, and
• Regulatory frameworks governing the site.
6
With this knowledge, and having identified key local
stakeholders to work with, we are able to make informed
decisions on the measures to be implemented.
To achieve success, it is vital that we
understand the local context as early
as possible.
Project teams are set up with predominantly local
resources that are supplemented with RTLM expertise.
There are also a suite of best practice methods and
tools to draw upon to ensure effective engagement,
analysis of options, and delivery of sustainable solutions.
The process is iterative and all steps are underpinned
by the broader Rio Tinto philosophy outlined in The way
we work. The teams provide continuous feedback to the
wider Rio Tinto group, thereby improving expertise for
future challenges.
Going forward
We continue to develop our approach to legacy management, refining the methods
and tools that we use, learning from our experiences and building on our successes.
We no doubt have significant challenges ahead of us, but we are committed to finding
ways to overcome them to generate value for our company and the communities and
regions in which we operate.
Above
The reclaimed
aluminium smelter
at Steg, Valais,
Switzerland
In some cases, we are able to sell properties that are not
at risk; in others, remedial work is required to get to this
stage. We recognise that proactive management will give
us more flexibility than regulator driven programmes,
and we therefore continue to plan to develop, and
implement, creative solutions for the future of the sites.
Our focus is to reduce our footprint and residual
liabilities through responsible management, lending
evidence that Rio Tinto is truly a partner of choice for
future mining and refining investment opportunities.
In the following pages you can see some of our
regeneration projects.
These solutions will be developed involving all
stakeholders and take into account environmental,
financial and social aspects. We aim to find the
best compromise of these aspects acceptable for
all stakeholders.
7
Every piece of land has an intrinsic
value defined by tangible and
intangible benefits
8
Legacy Management
[email protected]
June 2013
riotinto.com
Our work
Case studies
Left
The remediated
bauxite residue
landfill at Whinnyhall
with the new housing
development at
Burntisland in the
distance, Scotland
Working in close collaboration with a diverse group of stakeholders
Burntisland and Whinnyhall, Scotland
When the Burntisland alumina refinery closed in 2002 there had been no planning for, and little expectation
of, total closure and yet, ten years on, a popular housing development breathes life into the town once more.
The associated bauxite residue landfill site at Whinnyhall has been transformed into a meadow that supports
wildlife. A core reason for the project’s success has been the extraordinary levels of honesty and trust between
the key stakeholders throughout. The remediation and redevelopment of both sites were complicated and this
story is a great example of how industry, developers, contractors, regulators and local community can work
together effectively to develop a new use for an industrial site.
Building on the assets of the natural environment; a village is re-imagined
Auzat, Ariège, France
The site of the former aluminium smelter in Auzat in the French Pyrenees has been transformed into a
professional sports complex suitable for altitude training. After much discussion with the municipality, the
regulators and the local community, the existing sports facilities on the other side of the river was moved across
to the old smelter site – and improved to international standards – providing an ideal solution for the capped
land. This also freed up a large area of (uncontaminated) land that could be developed into a hotel complex,
should the visitor numbers increase as anticipated.
9
Legacy Management
[email protected]
June 2013
riotinto.com
Our work (continued)
Case studies
Sharing best practice in legacy site remediation, paving the way for a new approach
Mt Rosser and Kirkvine, Jamaica
The rehabilitation of old red mud impoundments at Kirkvine and Mt Rosser has been helping to set the
standards on closure of bauxite mining and refinery facilities in Jamaica. Looking to nationally and internationally
recognised bodies of expertise to ensure technical excellence, we have been jointly developing guidelines for
responsible remediation with the Jamaican government. The sites are fast developing a reputation as being
leading best practice models; achieving our aims with maximum biodiversity through effective collaboration.
Meeting the needs of the community – building the future based on regional
economic development Steg, Valais, Switzerland
The former smelter at Steg is one of two aluminium production sites in south west Switzerland where
we are preparing the land for new businesses, generating new jobs for the local community. Buildings
at the Steg site have been decommissioned, dismantled or repurposed, and sold to investors and new
businesses, creating more jobs than those lost at the time of the closure. Working closely with a range
of stakeholders, the revitalisation process has been rapid and the project is due to be completed by 2017.
There is strong support for the swift conversion of the area and the community is actively involved in
finding the most sustainable options for their future.
10
Legacy Management
[email protected]
June 2013
riotinto.com
Our work (continued)
Case studies
Recognising the intrinsic value of the land; a conservation programme protecting
a flagship species Punakaiki, New Zealand
A multi-sector partnership between Rio Tinto, the New Zealand Department of Conservation and Conservation
Volunteers New Zealand is restoring a corridor of native forest from mountains to sea, at a former mineral sands
mining project site near Punakaiki, on the west coast of New Zealand’s South Island. The Punakaiki Coastal
Restoration Project aims to make a positive and lasting impact on the area’s biodiversity, by enhancing the
protection of the vulnerable Westland Petrel’s breeding habitat, and restoring the rare sandplain forest
ecosystem in this unique part of New Zealand.
Meeting recognised standards and regulations, working closely with the regulators
Flambeau, Wisconsin, US
Flambeau is an excellent example of a significant mining project that has successfully come full circle. Operating
under some of the country’s toughest mining laws, we have kept our pledges to explore, mine and rehabilitate
in an environmentally and socially responsible manner. The Flambeau River, flowing right next to the site,
was protected throughout the project and, during reclamation the open pit was backfilled, according to the
community preference. The reclaimed mine site is now a mixture of thriving woodland, grassland and wetland
areas. Roughly $11 million in tax and other payments have directly benefitted the local community, providing
long-term economic development to the region.
11
Legacy Management
[email protected]
June 2013
riotinto.com
Our work (continued)
Case studies
Inside back cover
A village re-imagined:
Auzat, France
© Phil Bence
World class reclamation project provides valuable training opportunities for
university students and environmental regulators Ridgeway, South Carolina, US
State and national regulatory recognition for best practices in open pit mining and tailings reclamation,
has led to Ridgeway gold mine being used as a training ground in ecology, biology, and mine reclamation.
Since operations closed in 1999, university students and environmental regulators within the state of
South Carolina have been able to take important lessons from the work applied to the site’s two open
pits (now freshwater lakes), tailings facility, and surrounding mine property.
Recognising the value of the land; a historic site is preserved and made more accessible
Ryan Camp, California, US
A fascinating mining camp based on the edge of the Death Valley National Park is being preserved, and
partially restored, in order to protect its valuable heritage for future generations. Ryan Camp operated in the
early 20th Century and was positively luxurious in its day, despite being located in one of United States’ harshest
environments. After the mining operations were closed, the camp, with its impressive infrastructure, fabulous
views over Death Valley and range of narrow-gauged railway tracks, had a brief but popular spell as a tourist
resort ran by the mining company. Both the mining and tourism heritage will be celebrated and the site will
be made accessible for day visitors and field study groups alike.
12
Key stakeholders are meaningfully
engaged in the development of
sustainable solutions
Rio Tinto plc
2 Eastbourne Terrace
London W2 6LG
United Kingdom
Rio Tinto plc
120 Collins Street
Melbourne, Victoria 3000
Australia
T +44 (0)20 7781 2000
T +61 (0)3 9283 3333
riotinto.com
[email protected]
Rio Tinto Legacy Management
We aim to ensure that our legacy sites are made safe, that all problem
areas are addressed cost-effectively, and that there is a sustainable
socio-economic future for the community together with a minimised
aftercare burden.