Legacy Management Breathing new life into old sites

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1 Legacy Management Legacy Management Breathing new life into old sites

2 Sustainable solutions will meet our global standards but will be regionally and locally developed, adapted and implemented

3 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

4 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. 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. 2

5 Stakeholder engagement is essential throughout the cycle 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

6 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

7 Remediation will be suitable for the identified future after use 5

8 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. 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. 6

9 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

10 Every piece of land has an intrinsic value defined by tangible and intangible benefits 8

11 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

12 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 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

13 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

14 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

15 Key stakeholders are meaningfully engaged in the development of sustainable solutions

16 Rio Tinto plc 2 Eastbourne Terrace London W2 6LG United Kingdom T +44 (0) Rio Tinto plc 120 Collins Street Melbourne, Victoria 3000 Australia T +61 (0) 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.