sustaining xstrata’s north queensland operations...with a means for reporting breaches of...

YOUR COMMUNITY • YOUR MAGAZINE • FROM MINE TO MARKET

Sustaining Xstrata’s north Queensland operationsXstrata donates $2 million to the Royal Flying Doctors Service

Magnetite on the move

ISSUE 116: MAY/JUNE 2011

Highlights of this Issue

Operations:5 Special Feature:

Sustaining Mount Isa Mines 20 Magnetite on the Move

Our People:13 Team pages

22 Xstrata Indigenous Traineeship Program

Safety and health:24 EHM’s Innovation Awards

29 Kinetic Health – Healthy Heart

Community:2 Xstrata Mount Isa Mines donates

$2 million to RFDS4 Xstrata Healthy Kids

MINE TO MARKET ISSUE 116: MAY/JUNE 2011

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2 134

Front CoverNeale Hudson – Superintendent

George Fisher North, Xstrata Zinc.

Xstrata stock priceXstrata is listed on the London

and Zurich stock exchanges.

£12.40As at 17 June 2011.

Xstrata share price on the London Stock Exchange (XTA.L)

Contact the editorInput from all Xstrata North Queensland

operations is invited. Any articles, innovations, achievements, ideas or suggestions are very welcome.

Please contact Zoe Dark, Xstrata Community Relations on

e: [email protected] or ph: (07) 4744 2210.

The Xstrata Ethics LineThe Xstrata Ethics Line is an

independently run, confidential facility providing employees and stakeholders with a means for reporting breaches of Xstrata’s Business Principles, policies or prevailing legislation. To access this line please visit www.xstrataethics.com or

freecall: 1800 987 310

In May, we announced plans for the future of our north Queensland operations involving the expansion of mining and concentrate production while phasing out copper smelting at Mount Isa and refining operations in Townsville by the end of 2016.

Current mine development projects like the George Fisher Mine expansion and Black Star Deeps as well as Ernest Henry Mining’s diversification into magnetite export and transition to underground operations reflect the world class resources still to be tapped. In fact, even after 87 years of operation, the zinc-lead-silver and copper held by Xstrata Mount Isa Mines are still larger than

the orebodies that many new mines are founded on.This underlines the potential that still remains within our operations.Our future includes the expansion of existing mining operations and the potential development of

new mines at Mount Isa and the broader region. It also includes the continuation of lead smelting and the expansion of port facilities in Townsville, all of which would create long-term employment opportunities.

In the zinc operations, we have turned a business that was being wound down prior to Xstrata’s acquisition in 2003 into an asset more than three times larger and featuring the world’s largest base of zinc resources.

In the copper business, the successful $175 million acquisition of the E1 and Monakoff tenements near Cloncurry in June is just one example of how we are continuing to grow.

The decision to phase out our copper smelting and refining operations in north Queensland to focus on concentrate production only was not made lightly.

We want to make it absolutely clear that we value our people. We will be working closely with our workforce to help redeploy, where necessary, retrain and above all, retain our people affected by the announcement well into the future.

We are confident the existing and planned developments within both the copper and zinc businesses create genuine career opportunities for all our people.

What this announcement actually represents is the application of Xstrata’s commitment to sustainable development.

While global economic and market conditions have driven the closure of the smelter and refinery here, they have also created new and expanding markets for copper concentrate which in turn, creates new infrastructure and operational demands locally.

It is a great example of our focus on being adaptable and responsive to market forces to secure the future of our operations, while continually improving our environmental performance and supporting our people and the communities in which we play a part.

Steve de Kruijff Chief Operating Officer Xstrata Copper North Queensland

Brian Hearne Chief Operating Officer Xstrata Zinc Australia

Welcome

1May/June 2011 MINE TO MARKET

It is now anticipated that the $175 million acquisition agreement with Exco Resources Ltd will be completed during June/July 2011 following government and other approvals.The E1 and Monakoff tenements are

strategically located eight kilometres east and 21 kilometres south, respectively, of EHM and they contain open pit copper mineral resources with completed feasibility studies.

Ore from the projects will be transported to Ernest Henry Mining and processed through its existing concentrator. It is anticipated these two new projects will increase Ernest Henry Mine’s production profile from the second half of 2012, including gold by-product credits.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland, said these projects will strengthen the viability of our Ernest Henry Mining operations in Cloncurry, along with the benefits those operations deliver to the local community.

“Exco shareholder approval is a significant step towards integrating the development of these projects into our north Queensland business plan,” he said.

“We anticipate the development and operation of the E1 and Monakoff copper projects will create around 100 full-time jobs, some of which will be sourced from Ernest Henry Mining’s existing open pit workforce.

“This is in addition to the jobs already created in the transformation of Ernest Henry Mining’s open pit operations to a major underground mine and associated magnetite extraction plant.

“Transforming our Ernest Henry operations to an underground mine involves 330 jobs during construction and provides 400 long-term job opportunities from 2013.

“The E1 and Monakoff copper projects will expand Ernest Henry Mining’s expected production profile by utilising the remaining capacity of the Ernest Henry concentrator (above) while leveraging other significant synergies available through our existing site infrastructure, equipment and workforce.

“Subject to completing the acquisition and finalising the necessary government and other approvals, we expect initial production from the E1 and Monakoff copper projects to commence in the second half of 2012.

“We will continue to work closely with landowners as we finalise planning requirements and develop these tenements into operations,” said Steve.

The E1 and Monakoff deposits have a combined Joint Ore Reserves Committee (JORC) compliant resource of 52.1 million tonnes grading 0.77% copper and 0.23g/t gold at a cut-off grade of 0.3% copper for E1 and 0.5% copper for Monakoff. This represents 401,000 tonnes of contained copper metal and 384,000 ounces of contained gold metal.

“ The E1 and Monakoff copper projects will create around 100 full-time jobs.”

Above: The Ernest Henry Mining operation, Cloncurry. The E1 and Monakoff tenements are strategically located near our existing infrastructure.

Right: Ernest Henry Mining operations

Xstrata Copper has welcomed the outcome of Exco Resources Ltd shareholder meeting on 9 June 2011, at which the sale of the E1 and Monakoff copper tenements in north west Queensland to Xstrata Copper was approved.

Exco shareholders approve

NEWS

2 MINE TO MARKET May/June 2011

The first soil was turned on this major construction project, on Friday 13 May by Nino DiMarco – Chief Executive Officer of the RFDS Queensland

Section, Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland and Brian Hearne – Chief Operating Officer Xstrata Zinc Australia. The project has been in planning for the past eight years and is scheduled for completion in November this year.

Steve de Kruijff said the donation by Xstrata Mount Isa Mines is part of a commitment to enhance the social infrastructure in Mount Isa.

“This $2 million donation is the largest donation Xstrata Mount Isa Mines will make in our communities this year.

“Our funding further supports the quality and accessibility of health services in Mount

Xstrata Mount Isa Mines donates $2 million to the

Royal Flying Doctor ServiceXstrata Mount Isa Mines has committed $2 million to the Royal Flying Doctor Service Queensland Section (RFDS) towards the $8.5 million redevelopment of their Mount Isa Base which will support the delivery of increased health services to the north west region.

COMMUNITY

Isa and follows a $2 million donation in 2010 to the Queensland Government for the construction of a new dental health unit at Mount Isa Hospital,” said Steve.

The redevelopment project will create a purpose-built primary health care facility that will house the Mount Isa base operations office and allied health services.

The project also involves the construction of several new buildings and facilities to increase health services delivered by the RFDS to Mount Isa and the north west region, and will accommodate in excess of 50 staff to enable planned growth for the future.

The new facility will enable RFDS health professionals to deliver mental health and other primary health care services such as counselling services, dieticians and nutritionists,

Chief Operating Officers Steve de Kruijff and Brian Hearne present the $2 million donation to Nino DiMarco, Chief Executive Officer of the RFDS Queensland Section.


diabetes education and rural patient consultations in Mount Isa in specially designed consultation rooms located at the base.

Nino DiMarco said there is a growing demand for access to a wider range of health services in rural and remote communities.

“Improving the quality of our facilities will allow us to increase existing services and deliver a more diverse range of additional services to meet the needs of communities in north west Queensland and fulfil our vision.

“Financial support from the corporate sector is extremely important to the RFDS and without this contribution from Xstrata Mount Isa Mines we would be unable to complete our Mount Isa base redevelopment project without an impact on our services and other projects.

“We would like to thank Xstrata Mount Isa Mines for this very generous donation,” said Nino.

Brian Hearne said Xstrata Mount Isa Mines relies upon the RFDS for emergency support for our 3,390 employees in Mount Isa.

“We fully appreciate the importance of their services particularly when emergencies unfortunately occur.

FAST FACTSMount Isa RFDS Base redevelopment » This redevelopment project will create

a unique facility at the Mount Isa base which offers health services to the local Mount Isa community and the surrounding outreach communities, covering an area of 550,000 km2, which is the size of France.

» The new facility will accommodate in excess of 50 employees, doubling the current number of staff and enabling the development and delivery of a wider range of primary health care services.

» Purpose built consultation rooms will enable additional services to Mount Isa residents as the base grows, such as mental health services, counselling, dieticians and nutritionists services and diabetes education.

» Green principles: The RFDS has incorporated several green initiatives into the design of the new primary health care facility including: » Maximising natural light » Cross ventilation and evaporative

systems reducing the reliance on air conditioning

» Cork flooring » Energy efficient lighting » Recycled materials such as plastics for

fittings and furnishings » Solar hot water » Low irrigation ground cover » Due consideration of the existing

environmental surrounds – many of the existing trees will be left untouched and incorporated into the design of the building and landscaping; and

» Recycling all possible building materials from the previous demolition activities.

» The RFDS Mount Isa Base operates an emergency retrieval service which operates 24 hours a day, seven days a week, transporting more than 1,000 patients each year to receive vital medical services.

» The base provides clinic services including immunisations to almost 10,000 people each year.

Right: Brian Hearne, Nino DiMarco and Steve de Kruijff officially turn the first sod for the

new RFDS primary health care facility.

“The availability of a comprehensive range of health services and professionals is also important for the liveability of Mount Isa as Queensland’s largest outback city. This is a good example of how the mining industry can support the sustainable growth of the communities in which it forms a part,” said Brian.

Through Xstrata’s Corporate Social Involvement programs, Xstrata Mount Isa Mines has provided more than $14 million since 2004 to support the Mount Isa community.

The RFDS is the only provider of fixed wing medical services in the region, transporting more than 1,000 patients in and out of Mount Isa each year to receive vital medical services.

Currently, the Mount Isa base provides clinical services including immunisations to almost 10,000 people each year and operates an emergency retrieval service which operates 24 hours a day, seven days a week.

The iconic service has expanded to provide regular transfers of patients to hospitals for life-saving surgery such as organ transplants and heart surgery, delivering critical support to those who live in rural and remote areas.

The Mount Isa RFDS base transports more than 1,000 patients a year.

Artists’ impression of the new RFDS Primary Health Care Facility in Mount Isa.


COMMUNITY

Free, active and fun!

If you haven’t checked it out already, get active and come along to Xstrata Healthy Kids.

All you have to do is bring a bottle of water and wear joggers, wear a hat and sunscreen and decide which program is best for you.

» Parents ‘n’ Toddler Sports for children aged between two and five years old

» Kids Sports aimed at primary school students, and

» Walk ‘n’ Talk where children and families join experienced Walk Leaders and supervisors along a set route.

Xstrata Healthy Kids is an exciting initiative aimed at getting children and their families involved in fun and non-competitive activities. It is run by experienced primary school teachers and all staff have current blue cards.

Xstrata Healthy Kids is in full swing!

Program details are:

REGULAR DAYS VENUES ACTIVITIES

Mondays3.00 – 4.00pm

Sunset Oval, Abel Smith Parade

» Parents ‘n’ Toddler Sports » Kids Sports » Walk ‘n’ Talk

Tuesdays9.00 – 10.00am

Selwyn Park, Fourth Avenue

» Parents ‘n’ Toddler Sports only

Thursdays3.00 – 4.00pm

Mount Isa Family Fun Park, Isa Street (As of 21 July this session will be held at Captain James Cook park, Fourth Avenue)

» Parents ‘n’ Toddler Sports » Kids Sports » Walk ‘n’ Talk

» You can find more information at www.mountisamines.com.au or call our 24-hour Community Feedback Hotline on freecall 1800 982 982.

Betty Kiernan – State Member for Mount Isa, supports Xstrata Healthy Kids at the Mount Isa Family Fun Park, Kruttschnitt Park


Sustaining Xstrata’s North Queensland Operations

SPECIAL FEATURE


A message from the General Manager Townsville Operations, Xstrata Copper

The decision to close the refinery by 2016 was a difficult one. The copper refinery is an iconic operation in the Townsville region, and Xstrata acknowledges the refinery’s successes can be largely attributed to our dedicated and loyal workforce.

We are committed to our employees and will work collaboratively with them over the next five years to assist them to assess their individual situations and make decisions on future career opportunities.

The Townsville economy, although directly impacted by the closure, will realise the benefits from the indirect opportunities that the expanded Mount Isa operations will give to the region.

The increased tonnage profile associated with the change to exporting concentrates will result in increased revenue streams to Queensland Rail and the Port of Townsville, and significant monies will be injected into infrastructure upgrades to boost reliability and capacity, providing long-term benefits to the region.

These upgrades, coupled with the expansion to our operations at the Port of Townsville will provide additional jobs as well as opportunities for local suppliers and professional services to support Xstrata Mount Isa Mines well into the second half of this century.

The time to closure will allow us to negotiate and secure rolling wagon stock to support the increased volumes associated with exporting mineral concentrates over refined metal, and in addition, we will continue to review cost saving opportunities and the viability of custom refining post the smelter closure in Mount Isa

We look forward to working with our people and our communities to jointly secure a strong and sustainable future in north Queensland.

A message from the General Manager Copper Smelter, Xstrata Copper

Although the Copper Smelter cannot control the main factors that resulted in the decision to phase out the smelting operations, there are many actions we can take to ensure the sustainability of the smelter through until 2016.

We will be working diligently with our employees and community over the coming months to ensure that the transition process through to 2016 is clearly defined and developed for the sustainability of the smelter until closure.

Over the next few months we will deliver workshops to further understand the feedback from a recent cultural survey that was conducted with all our employees. The safety and health of our employees and prevention of injuries is paramount to our operations and I am looking forward to the survey results so that we can understand what changes we need to implement to ensure we further improve our safety performance both in the short and long term.

The focus on continuous improvement of the capture and treatment of offgas from the smelter will continue until final closure. The emissions project team will continue to work closely with the smelter operating and maintenance teams to implement improvements to reduce fugitive emissions and increase treatment of offgases at the acid plant.

The Copper Smelter teams are committed to maximising the treatment rate of emissions and will continue their efforts to achieve high reliability and availability of smelter equipment and adherence to best operating practices. This is critical to ensure we have control of the smelter process and that we manage the converters to operate at rates that the acid plant can optimally treat the offgas emissions.

The five year timeframe for the phase out of the copper smelting and refining process gives us the required time to ensure that our employees will be given the options and support suitable to their personal situation.

I look forward to continually working towards our goals and new record aspirations with our great people.

“ The future of Xstrata’s north Queensland operations will be secured through the expansion of existing mining operations and the potential development of new mines in Mount Isa and the broader region.”

Mark Roberts General Manager Townsville Operations Xstrata Copper

Paul TelfordGeneral Manager Copper SmelterXstrata Copper


The future of Xstrata’s north Queensland operations will be secured through the expansion of existing mining operations and the potential development of new

mines in Mount Isa and the broader region.This planned growth will create long-

term employment opportunities, including the continuation of lead smelting and the expansion of port facilities in Townsville.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland, said the plan to phase out copper smelting and refining operations and focus on further development

of copper mining and concentrate production projects had not been adopted lightly, but was a necessary response to changing global market pressures.

“Market conditions have been very challenging for copper smelting and refining operations as a result of overcapacity in the global market, low treatment and refining charges and increasing operating and capital costs.

“The economic viability of these operations has been under increasing pressure for a number of years and cannot be sustained.

A long term visionOn Wednesday 18 May 2011, Xstrata Mount Isa Mines announced plans to sustain the future of its Mount Isa operations through expanded mining and concentrate production, while phasing out copper smelting at Mount Isa and refining operations in Townsville by the end of 2016.

In light of The Australian leaking the information, I think Xstrata handled the announcement to close the Copper Refinery and Copper Smelter well.

Friends had called that morning to tell me that Xstrata’s decision to close these parts of the business was in The Australian. Within an hour of hearing the news we were called to a meeting to discuss the future of the company. Our supervisors and managers were informative and we were given opportunities to ask questions.

At first it was a shock, however it is probably the best decision for the company. I am not concerned at the moment as I haven’t planned five years ahead. Xstrata has always been good to me and I want to stay with the company; I would like to transfer to our Port operations.

Danny TwidaleMachine Operator, Townsville Copper Refinery, Xstrata Copper

“We need to evolve our business to ensure we can secure the future of our operations for the long term.

“We have seen many changes to our operations over the past 87 years and we see this transition as vital to securing the future of our operations and creating employment opportunities in Mount Isa.

“Our operational plan over the next five years will see significant investment in north Queensland to focus on exporting mineral concentrates, along with the development of the necessary infrastructure to increase rail and port capacity,” said Steve.

WHAT DO YOU THINK ABOUT THE CHANGES?

SPECIAL FEATURE



Xstrata ZincThe vision for Xstrata Zinc is to generate the full potential of significant resources held in and around Mount Isa, and to continue our processing operations as a vital contributor to the global business, now the world’s largest integrated zinc producer.

Current developments within Xstrata Zinc include: » A $113 million Black Star Deeps open pit

expansion currently underway to extend the current mine life

» The $274 million George Fisher Mine expansion currently in construction phase, to increase our production to 4.5 million tonnes per annum by 2014

» The $40 million Handlebar Hill open cut mine expansion

» To further extend the mine life of the Black Star open cut mine, a feasibility study is underway to enable future developments such as the Black Star open cut south expansion.

Xstrata CopperThe orebodies around Mount Isa, Cloncurry and the wider region contain significant world class resources of copper metal and by-products for potential future developments.

Xstrata Copper’s plans to secure the long-term success of our north Queensland operations are centred around transitioning from an integrated copper business to a producer and exporter of bulk copper concentrate and magnetite from a combination of open cut and underground mining operations by the end of 2016.

Current developments currently in construction or planning include: » $589 million transition of EHM operations

from open pit to underground extending the life of mine out to at least 2024, including the construction of a new magnetite base plant making Xstrata Copper Queensland’s first magnetite concentrate exporter

» $175 million acquisition of two copper tenements from Exco Resources and related development investments

Medium to long-term opportunitiesThe medium to long-term development opportunity for Xstrata Mount Isa Mines comes from the potential development of a combined copper-lead-zinc open cut mine that would maintain significant employment opportunities in Mount Isa.

The Mount Isa Open Pit (MIOP) project is part of our ongoing transformation to successfully strengthen our business and support regional growth.

A scoping study is currently underway for the MIOP project which has the potential to sustain the Mount Isa operations for another 50 years.

The business case for the MIOP project is expected to be complete in Q3 2011, and a decision on whether the project will proceed to the next phase, is expected shortly after.

If the project proceeds, MIOP will undergo rigorous environmental and social assessments, in collaboration with strong government, community and key stakeholder engagement. More information on MIOP will be provided at each project milestone.

Planned investment and growthThe long term vision for Xstrata’s north Queensland operation focuses on ongoing investment and growth, with a number of opportunities already underway.

It was very disappointing to see that information on the closures in 2016 was leaked to The Australian. I had family moving to Mount Isa for work who phoned wondering if there were still jobs available.

Management got the correct information to us quickly and explained that we are expanding in other areas and people working at the Copper Smelter and refinery could be absorbed by other parts of the business.

Xstrata has always been a community minded business. I think it was a good business decision for Xstrata and we are a business at the end of the day, we need to be viable to be here in the long term.

Shippy GeorgeProgram Coordinator, George Fisher Mine, Xstrata Zinc

It is a financial decision to close the smelter and if Xstrata doesn’t make these tough decisions then there won’t be jobs for the next generation of Mount Isans.

The future of Xstrata Copper is still strong, the closures are only a small part of our operations and we are expanding in other areas and doing feasibility studies for future expansions.

I think Xstrata Copper handled it well but it is going to be sad to see the copper stack go as it is a part of Mount Isa and it has been here forever ... It’s an icon. I’m really going to miss that red and white stack.

Dick ChapmanMechanical Fitter, Copper Concentrator, Xstrata Copper


Supporting our people during Xstrata Mount Isa Mines’ next evolutionAs Xstrata Mount Isa Mines continues to evolve, the main priority is to ensure employees remain with the business now and into the future.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland, said employees would be supported with retraining and retention packages.

“We want to make it absolutely clear that we value our people.

“In the coming months and years, we will work with affected employees personally to understand their preferences, provide honest and timely information, and ensure several support networks are available to them.

“It is really early days and we don’t have all the answers yet, we have up to five years to ensure our people are fully supported in their transition to other areas of the business.

“For the time being, our focus remains on health, safety and ongoing operational requirements,” said Steve

If the closures mean they are going to be moving forward as a business it can only be a good thing.

I think Xstrata Copper made the right decision; they had to do it to stay competitive. There are other mines opening up in the region and that can only be a good thing for the future of Mount Isa and new people coming in.

Xstrata has always been good for Mount Isa, when they first came here they brought a lot of confidence to the city. Xstrata also pulled us through the down turn in 2009. We wouldn’t be here today if it wasn’t for Xstrata.

Shaun BlackmanParts Officer, Copper Concentrator, Xstrata Copper

In a way it will be sad, there is a lot of history here and I have formed many great relationships. Moving forward there will be many opportunities to learn and grow professionally, and I have complete trust and faith that our management will support us in this process.

It was a good business decision. It seems that Xstrata’s plans for north Queensland are counter balanced, as one operation comes to an end another is expanded.

Mount Isa has always provided me and my large family with greater opportunities than what larger cities could offer. This announcement will ensure the future growth and sustainability of Mount Isa.

Melissa StansbieTraining Facilitator, Copper Smelter, Xstrata Copper

“ We want to make it absolutely clear that we value our people. In the coming months and years, we will work with affected employees personally to understand their preferences, provide honest and timely information, and ensure several support networks are available to them.”

SPECIAL FEATURE

The above map demonstrates the MIOP expansion currently in scoping phase.



It is a shame to see the refinery close. I can understand that the overseas markets

have priced Xstrata out of the market, but even with the jobs that will become available with expanding the port and rail capacity, it is still taking jobs overseas. For me, the closure of the refinery will mean that my future at the port will be more secure as we expand to prepare for increased concentrate throughput.

I think Xstrata Copper made the right business decision, it has many investments and they will move on and pick up in other areas. Ron MurrayOperator, Townsville Port Operations, Xstrata Copper

The announcement stunned me a little bit because I’ve got the best job in the Copper Smelter, although I’m looking forward to the career change opportunities that will be provided to us.

I am an Isa boy through and through, and I have seen this town change over the years. The decision was the right one, mining is an evolving industry. This is the best thing for the long-term future of Mount Isa and that’s the most important thing to me.

Craig PerkinsShift Maintenance Fitter, Copper Smelter, Xstrata Copper

Members of the Mount Isa Community listen as Steve de Kruijff announces plans to sustain Xstrata's north Queensland operations at a special community briefing session.


Xstrata is committed to the communities in which we operate. Keeping communities informed and engaged relating to the future plans and direction to sustain the north Queensland operations is paramount to our business.

The special community briefing session provided an opportunity for the community to raise any questions and concerns regarding the future development plans for copper mining and concentrate production and the phase out of the Mount Isa copper smelting and Townsville copper refining operations by the end of 2016.

Over 90 people attended the community event, showing their interest and support for Xstrata’s future investments in mining operations in Mount Isa and the north Queensland region.

The community was pleased to hear about the sustained future plans for Mount Isa and the approach to retaining employees across the business, however many lamented the future closure of the copper smelter, which will mark the end of an era in the long standing mining town.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland hosted the community briefing session and said that honest and timely communication of Xstrata’s plans was vitally important for employees and the Mount Isa and Townsville communities.

“We’ll be working closely with our employees to ensure they are supported throughout the transition phase. We will deliver retraining and retention packages to support our operations well into the future.

“We’re engaging with key stakeholders and the community, including business groups and suppliers. We are available to hear any concerns that the community may have and will provide honest and timely information updates as they become available,” said Steve.

The Townsville Community Information session will be held at 5.30pm on Thursday 30 June at the Hotel Ibis, Palmer Street, South Townsville.

Communities will receive regular updates of project developments and future plans through a number of channels including: » Community information sessions, held in

all four north Queensland communities. Refer to the ‘Calendar of Events’ on the back cover of Mine to Market for details of upcoming sessions

» Upcoming editions of the Mine to Market and other publications

» Visit our website www.mountisamines.com.au or www.xstrata.com for up to date information on our operations

» For more information on the Townsville Community Information Session please phone 07 4781 8222

If you have any concerns regarding the future plans of the north Queensland operations contact us on the Community Feedback Hotline 1800 982 982 or www.mountisamines.com.au

The Townsville Community Information session will be held at 5.30pm on Thursday 30 June at the Hotel Ibis, Palmer Street, South Townsville.

While I think that it is an unfortunate decision to close the Copper Smelter and the Copper Refinery, it is a necessary one. It is a good move for Xstrata Copper and as long as there is a demand for our metals we will keep pulling them out of the ground and our jobs will be safe.

I’m aware of expansion plans and the potential for new mines to open up in the region. Mount Isa has been here for a long time and will be here for a while yet.

James GrimwadeMetallurgy Plant Technician, Copper Concentrator, Xstrata Copper

The closures will be beneficial to the development of Xstrata Mount Isa Mines in the long term. I believe that Xstrata Copper made the right decision, there could be mixed opinions but I think most people understand that it will improve our sustainability as a business.

I was informed about the decision in a professional and open way. In mining nothing is forever but the longer we can have a presence in the region the better for everyone.

Scott BryantSafety and Training Advisor, George Fisher Mine, Xstrata Zinc

Keeping Communities InformedOn Saturday 21 May 2011, Xstrata Mount Isa Mines hosted a special community briefing session for the Mount Isa community to inform residents of the future direction and expansion plans of the north Queensland operations.

SPECIAL FEATURE

12 MINE TO MARKET May/June 2011 12 MINE TO MARKET May/June 2011

What’s happening with Xstrata Mount Isa Mines?On 18 May 2011, Xstrata Mount Isa Mines announced its long-term vision to sustain its operations in north Queensland.

This five year operational plan will see a focus on expanded mining and concentrate production, while phasing out copper smelting at Mount Isa and refining operations in Townsville by the end of 2016.

Why are you phasing out the copper smelter and refinery?Xstrata Mount Isa Mines will phase out copper smelting and refining operations within the next five years.

The economic viability of our smelting operation has been under increasing pressure for a number of years as a result of global copper smelting and refining over-capacity, driven by competitive pressure from the emerging Chinese metal processing industry, and cannot be sustained in the long term.

We need to evolve our business to sustain the future of our operations. As such we have taken the decision to focus on concentrate production and developing new copper and zinc-lead mining opportunities in Mount Isa.

Does this mean hundreds of job cuts?No. We want to make it absolutely clear that our main priority is to ensure our people remain in the business.

The future for Xstrata’s north Queensland operations include the expansion of existing mining operations and the potential development of new mines in Mount Isa and the broader region. This would also include the continuation of lead smelting and the expansion of port facilities in Townsville, all of which would create long-term employment opportunities.

We will be working closely with our employees to deliver retraining and retainment packages to support our operations well into the future.

Is this a statement about the carbon tax?Absolutely not.

Our decision to phase out copper smelting and refining by the end of 2016 was based on consideration of global smelting conditions and the associated economic pressures.

Why was the announcement leaked to The Australian?Xstrata was very disappointed to learn that important business information was leaked to The Australian.

Frequently asked questions

The closure of the Copper Smelter in Mount Isa and Copper Refinery in Townsville will allow Xstrata to increase mining operations. If there is opportunity to do that, then they should do it.

We had a Manager from the Xstrata Skills Centre come and talk to us about the closures, we aren’t really concerned. We have a big future here in Mount Isa.

Michael WellsApprentice Boiler Maker, Xstrata Zinc

I am really excited about the recent announcement; there will be opportunities to be trained in different fields and take on new roles as the company diversifies. I am very happy, change is good.

Xstrata Copper Management has been compassionate, open and honest with us. They made the right decision telling us now, so that we can map out our plans for the future.

Christine AshbyEquipment Controller, Copper Smelter, Xstrata Copper


We prepared an extensive employee engagement and community communication program to ensure our people and key stakeholders were the first to know about our long-term vision, and had the opportunity to discuss any concerns before the announcement was made to the broader Queensland community and Australian public.

Upon being advised of the “leak” Xstrata Copper worked as a matter of priority to ensure our workforce was the first to know the full details of our announcement, followed by our local communities, suppliers and key stakeholders. As such, we made our announcement at 0700 on 18 May 2011, and held a Community Briefing Session on Saturday 21 May, and conducted a Suppliers Forum on Wednesday 25 May as per our original communication program and week long advertising campaign in the North West Star newspaper.

Are you closing the copper smelter and refinery because you can’t comply with the new environmental legislation?Xstrata has been working closely with the Queensland Government to transition to new environmental regulations and we have met our obligation with the submission of our Environmental Management Plan (EMP) on Friday 20 May 2011.

The decision to transition our north Queensland copper operations from a copper cathode exporter to copper concentrate exporter is based on global market and economic conditions. The economic viability of our smelting operation has been under increasing pressure for a number of years as a result of global copper smelting and refining over-capacity and cannot be sustained in the long term.

As such we have taken the decision to focus on concentrate production and the development of new copper and zinc-lead mining opportunities in Mount Isa to ensure the sustainable future of our operations.

How are you going to keep hold of your employees out to 2016?We want to make it absolutely clear that we value our people. Our main priority is to ensure employees remain with the business well into the future.

Our goal is to provide our people with choices and help them select the option that is best for their individual situation. Some opportunities will include: » Retraining or up-skilling for other roles with Xstrata » Transfers to other areas of the business » Voluntary redundancies, with incentives offered to remain in their

current role out to 2016, and » Retraining or up-skilling to assist employees to enter the workforce

with another employer.

SPECIAL FEATURE


SPECIAL FEATURE

I am from/Birthplace: Sunshine Coast

Years with Xstrata: Over one year

What does your role involve at Xstrata: Provide a financial service to each department and management, and end of month reporting

Strengths: Easy going, honest and dependable

Weaknesses: Fast food, sleeping in and many more

Family: Mum, dad and two older brothers

Favourite TV Show/Movie: English sitcoms and the Hangover

Holiday destination of your dreams: The Maldives

Five celebrities you would like to invite to dinner: Mark Webber, Craig Lowndes, Darren Lockyer, Pat Rafter and Hamish Blake

If you could change something, what would it be: Everyone in the world to be given an equal opportunity to support themselves and others

Wish for the future: Start a family, further my career and be happy

My colleagues don’t know this, but … I’m a car enthusiast

Favourite Food: Ice cream, pork ribs and fish

I drive: A Mazda 6 MPS and a Mazda Luce Legato

Person I most admire: My granddad

In my spare time I: Go fishing, play golf, BBQ and fix cars

Pet hate: Tailgating

Can’t live without: Lollies and my laptop

Josh Robinson

Graduate Accountant

Jesse Thompson

Mine Surveyor

PROFILE

YOU DON’T KNOW THIS, BUT ...

Ernest Henry MiningYOUR COMMUNITY • YOUR MAGAZINE • FROM MINE TO MARKET • ERNEST HENRY MINING • CLONCURRY

ON THE MOVENathan Goodwin began working at EHM recently as Environment Superintendent. Nathan previously worked as an Environment Superintendent at Rio Tinto before taking up his new role.

EHM underground project updateThe first of two large ventilation fans has been installed and is fully operational in Ernest Henry Mining’s (EHM’s) underground mine.

The 1.6 megawatt fan helps to ventilate the air underground by increasing the volume of fresh air flowing through the mine. It took approximately four

months to complete the installation of the fan in an underground chamber that is 40 metres long, 10 metres high and 10 metres wide.

Installation works for the second fan began in May and are expected to be completed in the third quarter of 2011.

The fans are one component of the $589 million project that will transform EHM into a major underground copper-gold mine and magnetite processing operation.

Other significant project milestones achieved recently include the commissioning of the refrigeration plant that cools the air that enters the underground mine and the commissioning of a new high voltage reticulation system to increase the capacity of the underground mine’s power supply.

The shaft pre-sink was completed in March 2011 and preparations are underway for the main shaft sink to commence in July 2011.

A refrigeration plant was installed on the surface to cool the air that enters the underground mine

Works for a new high voltage reticulation system were recently completed to increase the capacity of the underground mine’s power supply


Years with Xstrata: Seven years

Strengths: Goal driven and outcome orientated

Weaknesses: Not being able to say no to anything to do with Football (the beautiful game)

Family: Wife Melissa and seven children

Favourite Food: Melissa’s beef stroganoff or chicken tika masala

Favourite TV show/movie: Anything with Adam Sandler, a Kombi or a Football (the round version)

Most embarrassing thing I’ve ever done: Tried to light our wood fireplace to warm the house up to bring my premature baby home from Hospital in Toowoomba. Splashed a little petrol on myself and the fire. Found myself standing in the front of the open double glass windows with nothing on doing a German slap dance, just then a group of school kids walked past

What vehicle do you drive: 200 series Toyota Land Cruiser but soon to be a 1959, 13 window, split screen Kombi

My colleagues don’t know this, but … I used to cook counter meals at the Boyd Hotel

Favourite Food: T-bone steak cooked medium, mushroom sauce, chips and salad

I drive: My wife barking mad!

Person I most admire: My wife Lisa and Jimi Hendrix

In my spare time I: Rock out with my band Mixed Grill (best band in the north west according to me)

Pet hate: People slurping their tea or coffee

Can’t live without: My family, my guitars and a few beers

Clayton Stansbie

Engineering Support Manager

Simon Worland

Senior Occupational Hygienist North Queensland Operations

PROFILE


ON THE MOVE

Ben Bravos

Ben was a Vulcaniser and is now a Safety Advisor – Engineering Services and Projects.

14

Mount Isa CopperYOUR COMMUNITY • YOUR MAGAZINE • FROM MINE TO MARKET • MOUNT ISA MINES COPPER OPERATIONS

The four days of training provided SMI facilitators with the skills and knowledge to deliver the LDP program to their employees on site.

The aim of the international knowledge transfer was to increase SMI’s internal capacity for leadership. Facilitation skills were included as well as delivery content for LDP.

The workshop content was interactive with all the components of LDP being covered and participants practicing the skills needed to be able to deliver four workshops to other superintendents and supervisors from their mine.

Dick Kostowski – Senior Training and Development Advisor, said information and skills exchange is a great benefit of being part of a global company.

“It was a really rewarding experience to travel to the Philippines and assist in building SMI’s leadership skills with a program that we have been running in our north Queensland operations for so long,” said Dick.

Dave Watson – Superintendent Xstrata Skills Centre, said the participants have all the skills required to deliver the LDP.

“Participants now have confidence in their own ability to present the material in a way that will be easy and simple for their leaders to understand. SMI ran their first LDP workshops with their own facilitators at the end of May,” said Dave.

World class leadership trainingXstrata Mount Isa Mines employees recently delivered the Leadership Development Program (LDP) to nine training facilitators from Sagittarius Mines Incorporated (SMI), in General Santos City in the Philippines.

Xstrata Mount Isa Mines’ Leadership Development Program facilitators with Training facilitators from Sagittarius Mines Incorporated

Celebrating 40 yearsWe would like to sincerely apologise to Robert Kyte for the misprint in the March/April edition of Mine to Market. Robert has been a long standing employee for 40 years and we congratulate him on this great achievement and thank Robert for his dedicated service.

Back row left to right: Steve de Kruijff – Chief Operating Officer Xstrata Copper NQ, Gary Sloman (30 years), Mike Westerman, General Manager Mount Isa Copper Operations.

Front row left to right: Robert Sheppard (40 years), Robert Kyte (40 years) and Keith Davis (40 years).

Photograph by Roslyn Budd www.outbackphotographics.com.au

40


Years with Xstrata: 15 years

My role at Xstrata involves: Working on underground mining equipment and implementing improvement projects at GFM

Strengths: Generous and hard working.

Weaknesses: Take away, expensive cars, extended holidays

Family: My wife Jasmine, son George and daughter Sophie

Favourite Food: Anything my wife cooks

Favourite TV show/movie: Anything mechanical

Most embarrassing thing I’ve ever done: I don’t get embarrassed myself but I have embarrassed many other people

What vehicle do you drive: BMW 750Li

If I was stuck on an island, I would not be without my: Wife, kids and my two dogs

Person you admire most and why: I admire many and it would be unfair to just choose one

Nikolas Papadopoulos

Our Mine project – George Fisher Mine

Jack De Berg

Second year Diesel Fitting Apprentice

PROFILE


ON THE MOVE

Lee-Anne Pringle

Has moved from Safety and Training Coordinator, George Fisher Mine to Safety and Training Advisor, Black Star Open Cut.

My colleagues don’t know this, but … I used to play golf, and I’m born and bred in Mount Isa

Favourite Food: Spaghetti

I drive: A Mazda Bravo

Person I most admire: Neal Patrick Harris, Bear Grylls, Pauly D

In my spare time I: Party

Pet hate: Bad drivers, talkative people

Can’t live without: Water, food and friends

Mount Isa ZincYOUR COMMUNITY • YOUR MAGAZINE • FROM MINE TO MARKET • MOUNT ISA MINES ZINC OPERATIONS

15

Led by the enthusiasm from their new Storeman, Thomas McCauley, the entire team has significantly improved the general appearance and waste management processes in their lay down and storage area.

The team has established three separate bins, in a safe and efficient location, to segregate steel waste, rubber waste and general waste. This ensures that all recyclable waste can be reclaimed and non recyclable waste is disposed of correctly and safely.

The crushing plant workshop was built in November 2010 and the improved waste management system was implemented in March 2011, and has been successfully maintained to a high standard from that point forward.

Gavin Donnelly – Superintendent Crusher Project, said this was a great example of how everyone can make a big difference in efficiency by doing small things well.

“Besides the environmental benefits of good practice waste management, I have noticed that the teams have increased pride in their place of work, which is having flow on benefits in all areas of our work.

“Because the area is maintained to a high standard with good housekeeping, we can easily dispose of our waste and the standard of tidiness has set a benchmark for our entire area,” said Gavin.

Housekeeping the key to sustainable developmentThe team of Operators and Fitters at the Zinc-Lead Mobile Crushing Plant have gone above and beyond to ensure their working environment is efficiently set up for best practice on-site waste management.

Rob Prior, Thomas McCauley and Scot Andrews from the Zinc-Lead Mobile Crushing Plant keeping the workplace free from waste

“ Besides the environmental benefits of good practice waste management, I have noticed that the teams have increased pride in their place of work, which is having flow on benefits in all areas of our work.”


My colleagues don’t know this, but … I’m the President of Brothers Hockey Club in Townsville

Favourite Food: Steak, chips and mushroom sauce

I drive: Subaru Outback

In my spare time I: Run the Brothers Hockey Club

Pet hate: Bad drivers

Can’t live without: My family and friends

Jo Shaw

Shipping Officer, Port Operations

Greg Deacon

Senior Supply and Contracts Advisor, CRL

PROFILE


ON THE MOVE

Keryn Thomson

Customer Services Officer Townsville Operations. Keryn returns to Xstrata Copper after a six year absence.

YOUR COMMUNITY • YOUR MAGAZINE • FROM MINE TO MARKET • BOWEN COKE • COPPER REFINERIES LIMITEDTownsville/Bowen

I am from/Birthplace: Sydney originally and I have lived in Townsville for 10 years.

Time with Xstrata: One month

What does your role at Xstrata involve: Essentially it involves tracking and organising ships to ensure our bulk concentrates are delivered to our customers in a timely and professional manner

Strengths: The Par 3 at Rowes Bay

Weaknesses: Any other golf course on the planet

Family: Scattered – Airlie Beach and London

Favourite TV Show/Movie: Ferris Bueller’s Day Off and Out of Africa

Holiday destination of your dreams: Anywhere on the south coast of Java – warm, surf, and stunning, or Africa with Asian food

Five celebrities you would like to invite to dinner: Jimeoin, George Clooney, Richard Branson, Mark Bouris, and Bono’s wife.

If you could change something, what would it be: The Bruce Highway

Wish for the future: A round of golf with the four blokes who came to dinner!

The training is accepted by the Australian Maritime Safety Authority (AMSA) and necessary for all shore based employees involved in the

shipment of dangerous goods, and is a requirement under the International Maritime Dangerous Goods (IMDG) code.

Brad James – Townsville Operations Senior Shipping Advisor, said this training is vital in ensuring we are compliant with international maritime regulations.

“As well as meeting regulatory requirements, the training also gave us an opportunity to learn more about the interpretation and application of the IMDG code.

“When you first look at the code, it is fairly daunting, but by the end of the course we were all competent at interpreting and applying its various sections,” said Brad.

The course also covered the identification and classification of dangerous goods, the preparation of transport documentation and the packing, marking, labelling and placarding of these products.

The dangerous good processed at the Copper Refinery is the anode refining by-product, known as tankhouse slimes, it is very rich in copper and gold and is exported to overseas markets. All employees involved in the transportation, packing and invoicing or shipping dangerous goods are required to complete the Maritime Specific Dangerous Goods training.

Several Copper Refinery and Townsville Operations employees recently undertook an intensive two day maritime specific dangerous goods training course.

Townsville shipping operations employees involved in the shipment of dangerous goods are required to complete specialised maritime training

Maritime training


COMMUNITY

Community groups and organisations with programs or projects that contribute to the well-being and sustainable development of the north Queensland communities where Xstrata operates are encouraged to apply by Sunday, 31 July 2011.

For details on how to apply, log on to www.mountisamines.com.au or call Xstrata’s Community Relations Department on:

Mount Isa: 4744 2011 or 4744 2965

Cloncurry: 4769 4578.

Townsville/Bowen: 4781 8222

The 2012–2013 funding round of the Xstrata Community Program North Queensland (XCPNQ) is now open.

Xstrata Community Program North Queensland

Applications now open

COMMUNITY

Bruce Coles –Superintendent Bowen Coke Works presenting Gary Hall with a cheque for the ‘laptops in the classroom’ project. Photo courtesy of the Bowen Independent

This great new initiative aims to have 10 laptops in each classroom and improve the school’s Information Technology (IT) education programs. It will enable

students to develop their IT knowledge and skills through application of general computer programs such as Microsoft Office Word, Excel

and PowerPoint for projects and presentations within the classroom, as well as enhance student communication, literacy and numeracy skills through specifically designed educational programs.

Previously St Mary’s had only one computer room for all students to utilise on a timetabled

Xstrata Zinc donates over $25,000 for school laptopsXstrata Zinc donated $25,575 to St Mary’s Primary School in Bowen for the ‘Laptops in the Classroom’ project.

basis. Now the school is fitted with wireless internet connections within the classrooms and once this project is complete there will be one computer or laptop for every two students attending the school creating a significant increase in accessibility to IT for all students.

Bruce Coles - Superintendent Bowen Coke Works attended a recent school assembly to present Principal Gary Hall with a cheque for $25,575 to support the ‘Laptops in the Classroom’ project.

“This project is a great opportunity to support education in our local community of which we form a part. It’s important for our business to be involved with schools in our local area and make a difference in education,” said Bruce.

Education is a key focus of Xstrata’s Corporate Social Involvement programs. This donation follows the previous commitments to education development and support in Bowen over the last few years through the Xstrata Community Partnership Program North Queensland including $45,000 to support the Interactive Whiteboards program at Queens Beach Primary School and over $100,000 to support agricultural and sporting initiatives at Bowen State High School.

“We are grateful for the support from Xstrata Zinc and Bowen Coke works and look forward to implementing this project throughout the school. It will make a huge difference to the education possibilities within the classroom and will advance our students IT knowledge and proficiency,” said Gary Hall – Principal, St Mary’s Primary School, Bowen.

This funding will also be utilised to update selected areas of the school’s Information Technology (IT) infrastructure and processes creating a more robust system.


Leigh NeindorfCelebrating a 37 year career of invention and discovery

OUR PEOPLE

Amongst the stories Leigh now tells about his career, was when he had the pleasure of meeting the then Deputy Prime Minister – Tim Fisher on the plat of the lead mine in Mount Isa during 1993. Leigh explained how his exciting decline project for the Mount Isa copper and zinc-lead mines had been put on hold due to budgeting constraints. Seeing how passionate Leigh was about the project Tim Fisher handed Leigh one dollar and bet him the project would be completed within two years. Two years later Leigh had successfully managed to complete the decline and conceding that he had lost the bet, Leigh sent a cheque back to the Deputy Prime Minister for $2.08 (indexed for inflation).

“Leigh’s outstanding contribution to the growth of Xstrata Zinc and in particular, the spectacular increase in reserves and resources defined by Leigh and his team is now driving the future planning for our business.

“Leigh has also been a tremendous mentor for graduates coming through the business and has worked with countless over the years to introduce them to mining and give them a positive start,“ said Brian Hearne – Chief Operating Officer, Xstrata Zinc

A TREMENDOUS CAREER

Pictured: Brian Hearne – Chief Operating Officer Xstrata Zinc Australia (right) presents Leigh Neindorf with a commemorative frame for his dedicated service and contribution to Mount Isa Mines

Leigh Neindorf has retired in June from Xstrata Zinc following a 37 year career with Mount Isa Mines during which he was instrumental in securing many of the development projects that have cemented the presence of mining in the region, and was a key innovator in safety initiatives and mining processes that are now standard global practice.

Leigh first came to Mount Isa in 1973 while studying at the South Australian University of Technology. Having enjoyed his visit so much he returned

the following year to take up a permanent role within the company.

Like many mining engineers who came to work for Mount Isa Mines (MIM), Leigh spent his very early days underground. While his first staff position was as a fill research engineer, Leigh was also exposed to a variety

of engineering roles and also spent time as a supervisor, foreman and superintendent.

During Leigh’s time as the drilling and blasting engineer for all MIM’s underground mines, he was responsible for many large underground blasts including one in excess of 1.25 million tonnes, at the time (and maybe still) the largest single underground blast in the world.

In 1983, Leigh was appointed to his first Manager role as Manager Shafts, Drilling

and Blasting. In 1985, he was appointed Manager of area 2 or Modified Incline Cut and Fill (MICAF). It was during his time using the traditional cut and fill mining method that led Leigh to one of the greatest innovations in improving safety and production in the history of mining – the introduction of the first ever remote control loader.

In addition to the remote control loader, Leigh was also a key player in designing the mining method now known globally as ‘benching’. The Benching method allowed workers to be removed from the orebodies and increase production by almost three times the rate of the traditional cut and fill method.

Soon after, Leigh and his team at MIM also invented the first tele-mucker and in doing so significantly improved the safety of the mining industry worldwide. Leigh is incredibly humble; attributing most of his achievements to the great people he has worked with over the years.


“I have always enjoyed working as part of a team and am grateful to the many people who have assisted me in my various roles over the years.

“During my 37 plus years of mining, there have been many changes. Equipment has changed for the better, mining methods have changed for the better and most importantly safety practices have changed for the better.

“It has been the challenges of improving these aspects of our industry that has always excited me. Looking forward I know that Mount Isa has a great future in mining and I know it will continue to excite people and reward people with the challenges and opportunities that still exist, “said Leigh.

In 1987, Leigh left Mount Isa to construct and operate MIM’s first gold mine at Ravenswood, where he had the pleasure of pouring MIM’s first gold. Interestingly while at Ravenswood, Leigh met ex Prime Minister Gough Whitlam. Gough drove up in a limousine to his house and asked for a tour of the mine.

At the end of 1989 Leigh returned to Mount Isa initially as Manager Mine Services and then as the Lead Mine Manager. It was during this time that Leigh was the key driver in developing Mount Isa Mines skilled-based career path opportunities for employees and he developed what was called mega mining crews relying on a team based approach to mine development.

Leigh had a couple of interesting short-term roles as Acting Lead Smelter Manager and Acting Mine Manager McArthur River Mine, flying in and out of Mount Isa. From 1996 to 1998, Leigh was Strategy and Development Manager where he led the completion of the feasibility study for George Fisher Mine and was subsequently responsible for its construction during 1999 -2001. On completion of construction, Leigh was appointed Technical Services Manager for Mount Isa Copper and Lead/Zinc.

Xstrata Zinc Chief Operating Officer, Mr Brian Hearne, said that in 2004 after Xstrata acquired MIM, Leigh concentrated on the zinc business and the continued development of George Fisher Mine, Black Star Open Cut and Handlebar Hill Open Cut.

“Leigh was the driving force behind an exploration and development program that increased Xstrata Zinc’s resources by 78% from 154 million tonnes in 2005 to 274 million tonnes today,” Brian said.

“This has helped increase production and seen Mount Isa become one of the largest zinc mines in the world.

“We greatly appreciate all Leigh’s efforts and his extraordinary knowledge of our orebodies,” said Leigh.

Apart from Leigh’s many career achievements and successes, Leigh reflects fondly on his time living and raising a family in Mount Isa.

“I met my wife Jeannette here and we raised our three children here. We are very grateful for the life we have had in Mount Isa, the friends we have made and the opportunities we have been given,” he said.

OPERATIONS

Better known as a hit song in the late 60s, ‘The Age of Aquarius’ is also coming to our operations. Aquarius is the name of Xstrata’s new global contract and sales administration software.

A detailed scoping study exercise for the implementation of the product across the north Queensland and the McArthur River mine (MRM) in the Northern Territory commenced in February this year.

Delegates from the Townsville and Dubai based commercial teams, and representatives from Xstrata Zinc, Brady plc (the London based owners of the Aquarius product) and Mount Isa Information Technology teams participating in the scoping exercise.

Aquarius is just one of a suite of products supporting Xstrata Copper’s global commercial system, endorsed by Xstrata’s Executive Committee, to meet an identified need to implement a system that would achieve the following improvements: » Contract administration » Trading desk » Global risk management platform » Business reporting » Disaster recovery plans

To date, the system has been rolled out in Dubai and throughout South America. Australia and Canada are to follow.

The outcome of the scoping exercise will be a detailed design document which will address the specific needs of the North Queensland business – copper concentrates, metal (cathode and anode), magnetite and by-products, lead bullion and by-products, zinc concentrates and the MRM business.

The current expectation is that this phase will be completed by July 2011. User acceptance testing and official program roll out and will occur early in 2012.

The Age of Aquarius


Ernest Henry Mining (EHM) is another step closer to becoming Queensland’s first exporter of magnetite concentrate, with regular rail haulage of the product now underway from Cloncurry to the Port of Townsville.

The first train-load of magnetite concentrate departed Cloncurry for the port on 30 April and it is estimated that, on average, five

trains will run between the two locations each week going forward.

The concentrate will be stockpiled at the port in Xstrata’s new $8.6 million storage shed, with first exports expected to commence in June.

Steve de Kruijff – Chief Operating Officer Xstrata Copper North Queensland, said the new magnetite processing facility at EHM will make a significant contribution to the local and state economies.

“In 2010 Xstrata Copper contributed around $1.34 billion to the Queensland economy and our magnetite processing operation will provide further opportunities to strengthen the economy.

“We will produce approximately 1.2 million tonnes of magnetite concentrate per annum at full capacity for export to Asia, making us Queensland’s first magnetite concentrate exporter.

“With the support of Queensland Rail and Pacific National, the magnetite project has also been important in increasing the efficiencies of bulk transportation on the western rail corridor,” said Steve.

Queensland Rail and Pacific National have agreed to terms on a 10 year Access

Agreement to transport EHM’s magnetite concentrate from Cloncurry to the port.

Annastacia Palaszczuk – Transport Minister, said the multimillion dollar agreement has helped to increase rail efficiency and business growth on the Mount Isa line, creating 160 new jobs in north Queensland in the process.

“The magnetite will be moved by longer, more efficient trains, increasing tonnage capacity on the Mount Isa line.

“The key to increasing the efficiency is Pacific National’s new 1,000 metre bulk mineral trains with up to 90 wagons at 65 net tonne capacity. These services can carry more than 1,000 tonnes per service compared to the current standard 750 metre trains,” said Minister Annastacia Palaszczuk.

Magnetite on the move

OPERATIONS

The first of many trains is loaded with magnetite concentrate in Cloncurry, ready for its journey to the Port of Townsville


Chris Keast – Director Pacific National Rail, said the company will leverage its extensive experience in hauling bulk products across Australia to deliver a number of firsts on the Mount Isa line.

“In addition to increasing the length and tonnage capacity of the trains through the use of purpose built rollingstock, Pacific National will introduce a range of new technologies and innovations such as wired distributive power and ECP braking to help deliver a safe and reliable rail service,” said Chris.

Pacific National has invested more than $80 million in new rolling stock and infrastructure to support the new rail haulage task.

Minister Annastacia Palaszczuk, also said the agreement follows a $100 million investment program to improve the reliability of the 1,030 kilometre long Mount Isa line, which was completed in December.

“The upgrade delivers a more stable and reliable track structure with improved safety outcomes for freight services by replacing steel sleepers with concrete and light rail with heavy rail.

“ By having more stable infrastructure the line can operate at full capacity with reduced disruptions to the mining companies and freight operators which rely on the line to run their businesses,” said Minister Palaszczuk.

Fast facts Magnetite train: » Pacific National’s new purpose built

magnetite train is 1km in length

» The train consists of 90 wagons at 65 net tonne capacity

» These services can carry approximately 5,800 tonnes per service, compared to the standard 3,250 tonne service

» The train consists of three 83 class diesel electric locomotives each producing 3,300 horse power

» The train delivers efficiencies and tonnage not transported in single movement before on the Mount Isa rail corridor

From left to right: Paul Scurrah – Queensland Rail CEO, David Quinn – Pacific National Rail Queensland General Manager, The Hon. Annastacia Palaszczuk – Queensland’s Minister for

Transport; Mandy Johnston, MP – State Member for Townsville, and Mark Roberts – General Manager Xstrata Copper’s Townsville Operations, with one of Pacific National’s new bulk

mineral trains.


Xstrata Mount Isa Mines has embarked on an exciting new initiative that will offer 24 local Indigenous Australians pathways from the community to the workplace through a 12 month traineeship.

Xstrata Indigenous Traineeship Program

The traineeship program is designed to provide participants with work readiness and entry-level operational skills while undertaking a Certificate II

in Surface Extraction Operations.Upon completion of the traineeship,

participants will have the opportunity to progress into full-time employment within Xstrata or in other areas of the resources industry.

The program is more than a traineeship, it offers a combination of vocational skills and technical skills, with support provided from Boyd Curran and his team from Beyond Billabong.

The Beyond Billabong program has been successfully helping Indigenous youth gain valuable life skills and transition into meaningful employment for more than 10 years.

The trainees will be supported by internal and external mentors to help them transition into the workplace and become valued members of our organisation.

Coordinated by the Xstrata Skills Centre, this program provides direct pathways to either apprenticeships or jobs within our operations.

Rowen Winsor – Human Resources Manager North Queensland Xstrata Copper, said the structure of the program will set the trainees up for success.

“We are confident that trainees will complete their traineeship at the Skills Centre and be offered permanent employment within our business within their first 12 months,” said Rowen.

An Information Session to announce the traineeships to the Mount Isa community was held in late April. The session engaged the local Indigenous community and employment agencies to work together in the development of the program to ensure its success as a pathway to meaningful employment.

OUR PEOPLE

23May/June 2011 MINE TO MARKET 23May/June 2011 MINE TO MARKET

Left to right: Dick Kostowski – Senior Training and Development Advisor, Xstrata Copper; Doug Bruce – Chairman Kalkadoon Community Pty Limited; Rowen Winsor – Human Resources Manager Xstrata Copper North Queensland, Tanya Stewart – Training and Development Advisor, Xstrata Copper

Mount Isa Mines is offering existing employees the opportunity to complete an apprenticeship.

This is an outstanding opportunity to formalise your existing unrecognised skills or develop qualifications in an area you are passionate about. You will gain nationally recognised qualifications through combining practical work with structured on and off the job training.

» A maximum of 6 positions are available in the 2012 intake with numbers and trade areas subject to business needs.

» Applications will be accepted online through “Internal Jobs” link on the Intranet. All applications must be discussed with your superintendent/manager prior to applying.

» Applications Close: 24th June 2011

For further information please contact: David Watson on 4744 5638Applications should be made directly online on www.xstrata.com/jobs/careers/

Sponsored Apprenticeships 2012


Safety,it’s in your hands

HEALTH AND SAFETY

Ernest Henry Mining (EHM) awarded two Innovation Awards recently in recognition of the efforts of three workers who helped to improve safety and housekeeping on site.

The awards are held each quarter to acknowledge and reward personnel who have identified and implemented an innovative solution for a process,

cost improvement, issue or risk.The 2011 Quarter One Innovation Award

was awarded to Brent Painter – Mobile Equipment Technician, for his work fitting a remote camera inside the cab of a Franna Crane. Brent’s on-board camera installation improves the operator’s view of the crane’s winch rope and drum when lifting and lowering objects. Without the on-board camera the operator has to turn away from the load to check if the winch rope has become tangled, so the camera allows the operator to safely monitor the rope while simultaneously carrying out crane operations.

All three workers received a certificate and a set of two whiskey glasses for their efforts.

Dorian Stringer and Michael Todd, both Boilermakers for Hastings Deering, won EHM’s 2010 Quarter Four Innovation Award with their ladder stand creation. The stand acts as a housekeeping tool to store ladders helping to prevent slips, trips and falls in the Maintenance Workshop.

INNOVATION

Ladder stand and remote camera are winners in

EHM’s Innovation Awards

The camera (on the left of the dash) installed inside the cab of a Franna Crane helps to improve the operator’s view while lifting objects, making the task a lot safer.

This ladder stand created by contractors from Hastings Deering helps to improve housekeeping and prevent slips, trips and falls in the workshop.


Keeping in touch with our communityCommunity feedback hotline 24 hour freecall: 1800 982 982www.mountisamines.com.au


Wash your hands regularly

Substantial amounts of lead can be found on children’s hands at all ages.

Lead contamination on children's handscan elevate their blood lead levels.

Wash and dry your hands and your children’s hands regularly throughout the day.

Always wash and dry hands before preparing food, eating, drinking and any interaction with young children.

For more information contact the Living with Lead Alliance on 1800 457 547 or visit www.livingwithlead.com.au

Tips to reduce blood lead levels

Living safely with lead


Xstrata Mount Isa Mines and Ernest Henry Mining (EHM) recently awarded 18 bursaries to local high school students under the 2011 Xstrata

School Bursary program.The program aims to introduce local

youth to careers in the mining industry whilst providing meaningful pathways to work or further study after school.

Students awarded with the bursary have the opportunity to undertake work experience in a variety of areas in Xstrata’s north Queensland operations and they also receive a $1000 financial grant.

Xstrata Mount Isa Mines awarded 16 bursaries to Year 11 students from Spinifex State College and Good Shepherd Catholic College. Mount Isa students who received the grant included Nicholas Achilles, Nick Andrews, Brady Chandler, Charlie Cross, Morgan Fenwick, Alex Gallagher, Caitlynd Gardner, Frank Long, Ezekiel McLoughlin, Madeleine Mercy, Laura Munday, John Shore, Shaun Sloan, Zach Sowden, Matthew White, William Wright.

EHM awarded two bursaries to Year 11 students Jill McGee and Grace Milton from Cloncurry State School at a special school parade in April. Both students want to learn about careers in Occupational Health and Safety with a particular interest in nursing, the environment and administration.

“ Xstrata Mount Isa Mines and EHM congratulate all the recipients of the bursaries and wishes them good luck in their educational endeavours.”

Left to right: John Twomey – Magnetite Project Manager, presents Cloncurry State School’s year 11 students, Grace Milton and Jill McGee, with their Xstrata School Bursaries at a special school parade on 11 April. They are pictured here with Pete Keen – Vice Principal.

COMMUNITY

Xstrata’s 2011 School Bursary recipients announced

The 2011 Mount Isa Bursary students with representatives of Xstrata Mount Isa Mines’ management


Dirt ‘n’ Dusters do EHM proud

Ernest Henry Mining (EHM) entered three teams into this year’s Dirt ‘n’ Dust Triathlon at Julia Creek on 16 April, with all nine athletes surviving the heat and the flies during the race. The triathlon event is just one part of the annual Dirt ‘n’ Dust Festival and it involves an 800 metre swim, 25 kilometre bike ride and a five kilometre run. Team

Hook, Line and Zincer placed third out of the ten corporate teams in a time of 1:21:38, while Electric Energy placed fourth in 1:32:55 and Team Finance placed seventh in 1:46:29.

Congratulations to all competitors, including Anthea Barrow – Mining Engineer Medium Term Planning who competed in the individual section, placing third in her category in 1:30:44.

Above: Team Finance (Luke Tapp – Superintendent Finance and Commercial, Amy Pugh – Management Accountant and Josh Robinson – Graduate Accountant) placed seventh with a time of 1:46:29.

Left: Hook, Line and Zincer (including Denzil Cowen, who will soon move across from the Zinc Concentrator in Mount Isa to become a Safety Advisor at EHM, Tony Gregor – Superintendent Mechanical Construction on the Surface and Alex Edwards – Project Materials Co-ordinator) placed third with a time of 1:21:38.

Electric Energy (Kev Cowie – Electrical Superintendent, Emma Sheehan – Electrical Apprentice and Ken Draffen – General Manager Underground Project Infrastructure) placed fourth in 1:32:55.

OUR PEOPLE

COMMUNITY

Xstrata to survey local communities in north QueenslandXstrata’s north Queensland operations will survey residents of Bowen, Cloncurry, Mount Isa and Townsville in coming weeks on their perceptions of Xstrata and their view on various community issues in their region.

The information collected will be used to help improve the way the company and its operations communicate with local residents and the way Xstrata

addresses issues that residents believe are important. It will also be used to measure the recognition and awareness about the company’s corporate social involvement programs and seek input on areas of community need.

An independent market research company will carry out the survey. Up to 400 people over 18 years of age in each community will be surveyed by telephone. The identities of those who participate will remain confidential and information provided by community members will not be linked to them personally. Xstrata will not receive the names, addresses or phone numbers of those who participate or be able to identify them in any way. Results of the survey will be available in future editions of Mine to Market.

A ‘Community Attitudes Survey Summary’ document highlighting results will be included in the September edition of Mine to Market.

“ The information collected will be used to help improve the way the company and its operations communicate with local residents and the way Xstrata addresses issues that residents believe are important.”


Your heart is a vital organ and it needs care for life, everyone can do something to have a healthier heart.

The best ways to reduce your risk of developing heart disease and to help prevent it getting worse is to reduce or remove the modifiable risk factors.

You can reduce your risk:

Be Smoke-Free

Smoking is a major risk factor for heart disease, it affects the arteries that supply blood to your heart and other parts of your body, it reduces the amount of oxygen in your blood and damages artery walls.

Enjoy healthy eating

Healthy eating and drinking is an important part of looking after your heart.

Eat a variety of foods including vegetables, whole-grains, fruit, nuts, lean meats and poultry, avoid fatty and salty takeaway meals and drink mainly water.

Be physically active

Physical activity is good for your heart and is a great way to have fun, it can also help to control other risk factors such as having high blood pressure and being overweight.

The heart foundation recommends that you include at least 30 minutes or more of physical activity on most days of the week. Consult your doctor to discuss your individual situation.

Control your blood pressure

High blood pressure, or hypertension, is a major risk for strokes, heart attacks and kidney disease. It usually causes no outward symptoms at first and when discovered it can be controlled, greatly reducing the risk of later problems.

The following figures are a useful guide:

Normal Blood Pressure » Generally 120/80 mmHg or less.

Normal to high Blood Pressure » Between 120/80 mmHg and 140/90

mmHg.

High Blood Pressure » 140/90 mmHg or higher. If your blood

pressure is 180/110 mmHg or higher, you have very high blood pressure and should seek medical advice.

Medications

If you already have heart disease make sure you take your medications as prescribed by your doctor.


HEALTH

Healthy HeartHeart disease is very common. Did you know many heart conditions like heart attacks, cardiovascular disease and stroke can be prevented?

For sale: » Westinghouse 210L chest freezer. Good Condition, $150 – Phone 0418 873 178

» Three seater brown leather chesterfield lounge, $500 – Phone 0423 849 009

» 1 x 2 seater recliner, 1 x 2 seater lounge and 1 x 1 seater recliner, $300 for the lot. Phone 0439 567 723

» 4X4 trailer, made from back of Toyota hilux, water tank, rod holders, tinny rack, no rust, solid, unregistered – as is $750 o.n.o. Phone 0427 139 988

Congratulations: » Congratulations to Lauren Proud (Self Insurance) and Stuart Johnson

(Underground Electrician) on their recent wedding at Mount Tamborine.

» Congratulations to Roux Meyer (Senior Environmental Advisor) and wife Mechelle on the birth of their third child, Tiaan Meyer (boy).

» Congratulations to Luke Malatesta (Mining Engineer, GFM) and wife Jodi-Ann on the birth of their first child, Nathaniel Adam, born 25 May and weighing 8 pounds 3 ounces.

» Welcome to the world Ellie Jade Jackson and congratulations to proud parents Stephanie (Senior Human Relations Advisor NQ) and Wade Jackson.

» Congratulations to Simone and Tim Budden on the safe arrival of their baby boy, Joshua Ryan, born on 23 May, weighing 7lb 11oz.

Monthly Competition Miner’s MessageFor a chance to win two free movie vouchers, find all the words in the puzzle below to reveal the hidden Miner’s Message. To go into the draw email the Miner’s Message to [email protected]

WORDS TO FIND

BOWENCLONCURRYCOKE

COPPERGOLDLEAD

MAGNETITEMINERALSMOUNT ISA

SILVERTOWNSVILLEZINC

SECRET MESSAGE

Keeping in touch with our community

Calendar of EventsJUNE » 24 Mount Isa Show (Public Holiday) » 24–26 Mount Isa Show » 24–26 Gregory Campdraft » 24 End of School Term 2 (Queensland, school holidays) » 25 McKinlay Races » 30 Townsville Community Information Session » 28 Bowen Show Day

JULY » 2 Cloncurry Rockhana Gem and Mineral Festival » 3–10 NAIDOC WEEK » 4 Townsville Annual Show » 6 New Starters Induction (Mount Isa) » 6–7 Bowen Community Information Session

– Community Morning Tea » 8–10 Mount Isa Campdraft » 11 Student Free Day (State Schools) » 11 Start of Term 3 » 14–16 Cloncurry Stockman’s Challenge and Campdraft » 16 Boulia Camel Races » 16 Mega Day Out (Mount Isa) » 20 Mount Isa Community Information Session » 24 Xstrata Mine to Mine half marathon » 30–31 Xstrata Great Western Games

(Mount Isa and Cloncurry) » 30 Quamby Rodeo » 30 Rodeo Ball (Mount Isa)

AUGUST » 3 New Starters Induction (Mount Isa) » 5–7 Curry Merry Muster Festival » 8–12 Rodeo Best Dressed Premises Competition &

Awards Judging (Mount Isa) » 11 Xstrata Mailman Express Sprint Horse Race

(Mount Isa) » 12 Mardi Gras (Mount Isa) » 12–14 Xstrata Mount Isa Rotary Rodeo (Mount Isa) » 19–21 Burke and Wills Campdraft » 20–28 Seniors Week » 26–28 Drovers Camp Festival (Camooweal)

E S A N O R T S H M

C L W S C E I S A R

L A L O I L T G M E

O R K I V T N I N P

N E E E V E N B R P

C N R A T S O U C O

U I L I D W N N O C

R M T S E A I W P M

R E R N O Z E V O I

Y N C D L O G L E T

Community feedback hotline: 1800 982 982

www.mountisamines.com.au

sustaining xstrata’s north queensland operations...with a means for reporting breaches of...

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