Carbon Steel Materials

- Locomotive emerging from train load-out tunnel at Mt Whaleback, Newman, Western Australia.
Carbon Steel Materials is a leading supplier of raw materials and services to the international steel industry, producing and marketing a full range of steel-making raw materials – iron ore, iron pellets, coking coal and manganese ore and alloys. With operations in Australia, South Africa and Brazil, Carbon Steel Materials is currently the world’s largest supplier of seaborne coking coal, and manganese and the third largest supplier of iron ore.
The following operations are part of BHP Billiton's global Carbon Steel Materials network:
- Western Australian Iron Ore operations (80-100% ownership) – iron ore
- Boodarie Iron, Australia (100% ownership) – Hot Briquetted Iron (non-operational)
- BHP Billiton Mitsubishi Alliance (BMA), Australia (50% ownership) – metallurgical and thermal coal
- BHP Mitsui Coal, Australia (80% ownership) – metallurgical and thermal coal (marketed through BMA)
- Illawarra Coal, Australia (100% ownership) – metallurgical and thermal coal (marketed through BMA)
- Samancor Manganese, South Africa and Australia (60% ownership) – manganese ore and alloy
- Samarco Iron Ore, Brazil (50% ownership) – iron ore pellets
2006 Sustainability Performance Overview
Key aspects of the Sustainability performance of Carbon Steel Materials (CSM) for the reporting period 2005/2006 were:
- No fatal injuries or significant environmental incidents were recorded within our operations.
- A 16 per cent reduction in the Total Recordable Injury Frequency Rate (TRIFR) across CSM was achieved, falling short of our CSM target of a 20 per cent reduction.
- A major focus on incident reporting has occurred across CSM. A significant increase in the number of potential significant incidents reported has increased our ability to proactively manage our approach to HSEC.
- Progressing compliance with the Company-wide Closure Standard; we are developing closure risk assessments for all our operations.
- We are working towards implementation of the Fit for Work/Fit for Life guidelines, with particular focus on fatigue management.
- No significant environmental incidents occurred.
- All controlled sites maintained their ISO 14001 certification.
- Read more: Carbon Steel Materials 2006 Environmental Data Summary.
Specifics of our commodities are:
Western Australia Iron Ore
- Iron Ore achieved a 41 per cent reduction in its TRIFR.
- Iron Ore signed a health Memorandum of Understanding (MOU) with the Australian Health Minister for the Pilbara region. Our contribution, in a more than A$7 million partnership, will be A$3.342 million over three years. This MOU has more than 22 initiatives and involves a range of partners in addition to the Department of Health.
- Iron Ore also signed MOUs with each the Town of Port Hedland and the Shire of East Pilbara for A$1 million per year for three years. This will go towards community infrastructure (read more: Community Case Studies: Education).
- Closure Plan risk assessments and risk registers were completed for all Western Australia Iron Ore operations.
- All our sites progressed well in implementing the Corporate Guidelines for Fit for Work Fit for Life (read more: Health Case Studies: Improving Men's Health).
- Fatigue management plans were developed in line with the Fit for Work/Fit for life requirements.
- An Occupational Health and Hygiene Workshop was held to help identify further work required to meet the requirements of the Company's HSEC target for health baseline exposure assessments.
Metallurgical Coal
- Metallurgical Coal achieved a two per cent reduction in its TRIFR.
- The BHP Billiton Mitsubishi Alliance (BMA) Crinum Mine (Queensland, Australia) was awarded for the second consecutive year, both the Queensland Central Region Award and the overall State Chief Inspector's Safety Management Award by the Minister of Mines and Energy and the Chief Inspector of Mines.
- BMA Hay Point Services introduced an integrated Health and Wellbeing Program for employees, based on the principle that 'if you are fit for life, you’ll be fit for work' (read more: Health Case Studies: Employee Health).
- BMA Norwich Park was awarded a Category 1 environmental performance rating from the Queensland Environmental Protection Agency, making it the only operating mine in Queensland with this rating.
- Illawarra Coal received the ;Peoples Choice;award at the New South Wales Minerals Council Conference for their innovative roller change out process. The process greatly improves ergonomic safety by ensuring that the rollers can be removed easily and at the correct lifting height.
- Closure Plan risk assessments and risk registers were completed for all Metallurgical Coal operations
- Fatigue management plans were developed in line with the Fit for Work/Fit for life requirements.
- An Occupational Health and Hygiene Workshop was held to help identify further work required to meet the requirements of the Company's HSEC target for health baseline exposure assessments.
Manganese
- Manganese achieved a 15 per cent reduction in its TRIFR.
- Our Manganese Metal Company Nelspruit Plant was awarded the overall regional winner of the Nosa Integrated Five Star Management System Category during the Nosa Regional Awards.
- Peer evaluations conducted at all South African Manganese operations improved compliance with the Fatal Risk Control Protocols.
- Closure Plan risk assessments and risk registers were completed for all Managnese operations
- Developed fatigue management plans in line with the Fit for Work/Fit for life requirements.
- The percentage of South African Manganese employees attending Voluntary Confidential Counselling and Testing for HIV/AIDs increased to 70 per cent, against a target of 60 per cent.
- Manganese progressed three social investment projects during the past year. Projects were aimed at improving the level of education by upgrading buildings and installing equipment at Batlharose Learner Development Centre, improving road safety by upgrading the road surface used by the community and employees, and resolving overcrowding at the Gamohana Junior Secondary School in the North West Province of South Africa.
- Occupational Health and Hygiene Workshops were held to identify further work required to meet the requirements of the Company's HSEC target for health baseline exposure assessments.
2007 Sustainability Outlook
Looking ahead for the Carbon Steel Materials CSG, a focus on the BHP Billiton Key Sustainability Challenges will include the following:
Eliminating Fatal Risks
- Continue to work towards with the Company's HSEC Targets, including reducing the Total Recordable Injury Frequency Rate
- Progress with the implementation of behaviour-based safety systems
- Continue to implement the Fatal Risk Control Protocols, including with major contracting partners
- Work to eliminate the potential for catastrophic-type incidents at our Manganese operations through formal catastrophic hazard identification and risk assessments.
Occupational & Community Health
- Continue to focus on implementing the requirements of the Fit for Work/Fit for Life guidelines, including the implementation of fatigue management plans
- Progress in line with the Company's HSEC target to complete occupational health exposure assessments.
Sustainable Community Development and Closure of Operations
- Continue progress towards compliance with the Company's Closure Standard target
- Continue our work on improving our regional townships.
Greenhouse Gas Emissions
- Identify and scope energy efficiency projects in line with the Company HSEC targets
- Increase our focus on greenhouse gas emissions in our long-term strategy in line with Western Australian Iron Ore’s projected business growth
- Continue BMA's investigation of the feasibility of using diesohol (an ethanol/diesel blend) in mobile earthmoving equipment to mitigate CO2 emissions on a life cycle basis. This involves engine laboratory testing and various other reviews aimed at culminating in a future mine site trial of the fuel.
Access to and Management of Resources
- Focus our efforts to further improve water efficiency in line with the Company HSEC targets
- Work proactively with Western Australian Iron Ore's local communities on Native Title issues
- Achieve a better understanding of our resources and product stewardship
- Attract and retain people, including a focus on Indigenous employment
- Meet the challenge of access to skilled resources, resulting from an increase in projected business growth
- Continue with BMA Coal's Skills for Growth Program, a multi-faceted package of initiatives designed to address current and future skills requirements (read more: Socio-Economic Case Study>Skills Development)
- Continue our progress towards compliance with the Company's Closure Standard.
