Report
WMC is a minerals company determined to be Best: Bottom-line performance Environmental responsibility Safety and well-being of our people Teamwork and leadership Our Statement of Purpose: Our business is to maximise shareholder value by finding, acquiring, developing and operating mineral resource projects throughout the world. We will maintain a diversified portfolio of commodities and exercise prudent financial management. To achieve our purpose we will develop and retain top quality people, management, skills and technology. Bottom-line : Environment:
Safety:
Teamwork:
Safety Four people died on WMC sites during 1995-96. In 1994-5 there were three fatalities. Over the last 15 years there have ben over 40 fatalities at WMC's WA operations. WMC claims that safety and health of employees remains management's core concern and that they are committed to providing safe working conditions for all employees and contractors. During 1996 an Elimination of Fatalities Taskforce was created and WMC's Safety and Health Policy was upgraded. During the1996 year the Combined Lost Time and Medically Treated Injury Frequency Rate improved by 32%. Labour Relations
In 1993 WA mining legislation removed restraints on shift operations at
WA mining sites. The AWU claimed that the longer shifts for underground
workers permited by the legislation were unsafe. WMC was the only
company to benefit from the legislation.The Company has continued to
introduce individual staff contracts and according to the company in 1996
the Company continued to experience low levels of industrial disputes. The
company has undertaken a major push to have all workers on individual
contracts.
Environment Environmental; Policy The Company is committed to achieving compatibility between economic development and the Environment. It therefore seeks to ensure that, throughout all phases of its activities, WMC personnel and contractors give proper consideration to the care of the flora, fauna, air, land and water, and to the community.
During the year 1996 year WMC also produced an Environment Progress Report. This was the first of this type of report for an Australian Resource Company and can only be hailed as a most positive move. The report is however could be more forthcoming on a number of matters including the impact and proposed of WMC on groundwater resources at the Olympic Dam site in SA. The company claims to have effective Environment Management Systems in and to carry out effective environmental audits and to be committed to 100% compliance with all environment laws and regulations. Corporate Governance. Each month the Chief Executive Officer reports to the Board of Directors of WMC Ltd on environment matters. A written report is circulated prior to the Board meeting. Updates on key developments are provided to the meeting. The Environment Progress Report disclosed deficiencies at WMC sites ncluding inadequatedocument control, oil and fuel management, saline water management, compliance with dangerous goods regulations, species diversity on rehabilitated lands and tailings management. WMC's has established four key eco-efficiency targets for its Australian operations to reduce: use of water and energy, and emissions of carbon dioxide (CO2) and sulphur dioxide (S02). The report does not effectively consider ways to reduce the high existing and proposed water consumption levels at Roxby Downs. The ACF has expressed concern about WMC commitment to water efficiency and recycling and the impacts on the sensitive ecology of the vicinity of theborefields accessed. WMC has been slow to reduce serious air emission problems at the Kalgoorlie Nickel Smelter site and lat time emissions have been well above WHO levels according to local environmental organisations. The installation of scrubbing units to convert sulphur dioxide to sulphuric acid should prevent an occurrence of these problems. Other problems disclosed in the report include at the Baldivis Residue System, Kwinana, Here groundwater monitoring at the Baldivis nickel residue storage facility indicated that ammonium sulphate, a common fertiliser, has leaked into the groundwater adjacent to Lake Cooloongup. At the Kwinana Nickel Refinery a groundwater survey indicated the presence of ammonium sulphate and minor traces of nickel in the groundwater beneath the refinery. At the St Ives Gold Mine, water from the No. 1 Tailings Storage Facility is said to be seeping into the local saline aquifer causing a rise in the groundwater. At the Nifty Copper Operation Copper and acidic liquid from the heap-leach pads is seeping through the synthetic liner which was damaged during copper ore placement. Action has been taken the report says to rectify these problems. Political
WMC has long been a major donor to the Liberal Party although it also
donated to the Labour party at the last SA Election. WMC Chief
Executive has been appointed by the Federal Coalition Government to
the Reserve Bank.
Credibility
In 1993 WMC admitted to the Supreme Court that it had mislead minor mining
group Savage Resources Ernst Henry Gold and Copper deposit in Queensland.
Savage resources had what the press reported as a 'stunning victory' for
Savage Resources and WMC was forced to surrender all claims to the valuable
orebody. This matter raised fundamental questions about the integrity of WMC,
although WMC claims to have taken steps to prevent a recurrence of this type
of behaviour. Following the problems at Ernst Henry WMC prepared a 23 page
Code of Conduct to be a guide to the conduct of emploees of WMC. The Code
includes illustrative examples with guidance as to how employees should
behave in particular situations.
Indigenous Peoples
The Policy relates to all Indigenous peoples that WMC has dealings with, not
only Aboriginal and Torres Strait Islander peoples. The policy is based on a
commitment by WMC to develop relationships of mutual understanding and
respect in areas the company operates in or propose to operate in. Chain
Reaction claims an dispute between two Aboriginal Groups over native title
issues near the Roxby Downs 'is a situation that was being fuelled by WMC
for its own ends using divide and conquer tactics.
Philippines At Tampakan, on the island of Mindanao in the Philippines, WMC has been granted a FTAA (Financial and Technical Assistance agreement) for exclusive rights to exploration in the south East region of the island of Mindanao. Some NGO's operating in the Philippines believe that FTAA overly advantage Foreign Mining Companies at the expense of the Philippine people. Five drill rigs are on site to determine the continuity and extent of copper and gold mineralisation. There has been major protests by the local indigenous B'laan people about the proposed minesite, including roadblocks and continuous stoppages of work The mine would be a major open cut with significant environmental challenges in regards to the disposal of tailings. WMC has not yet committed itself to the operation but have expended millions of dollars not only in exploration work but also in building schools health clinics and community centres for the local people. for Some local groups claim that WMC has been creating division between local groups and subsidising those groups that support the proposed mine. There are also claims that agreements that the B'laan are being asked to sign away any future rights to claim environmental compensation. WMC have claimed they will not use force to relocate people, that 100's not 1000's of people would require relocation (as claimed by some local groups) . WMC also insist that they would provide fair compensation where people were forced to relocate. The position of WMC is at considerable variance with some local groups, the local Catholic Bishop, local priests and local and international NGO's. It is difficult from the information available to get a balanced perspective without carrying out further research or gaining first hand knowledge of the situation. However it would appear that there are serious concerns about the social and environmental impact of any proposed development by WMC in the Philippines. . It would appear that there are also serious concerns about the social and environmental impact of any proposed development by WMC in the Philippines. More detailed information from local and Australian NGO's, and WMC and available for those organisations interested. Investor Perspective Most ethical investors would reject WMC because of uranium interests WMC has had a poor record in regards to the environment, labour relations, safety and Aboriginal issues. Its proposed development in the Philippines is a also matter of some concern. More recently , however,WMC would appear to be seeking public approval for its environmental and indigenous policies and to be significantly improving its environmental performance. Contact:
Matt Pollard November, 1996
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