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Product Stewardship

Product Sampling

The inaugural Company-wide sampling program, BHP Billiton Sample05, was completed in 2005/06, with the majority of BHP Billiton products sampled.  This sampling is in accordance with the European Union (EU) regulatory framework for Registration, Evaluation and Authorisation of Chemicals (REACH) adopted 29 October 2003. REACH aims to improve the protection of human health and the environment while maintaining the competitiveness and enhancing the innovative capability of the EU chemicals industry.

Under REACH, enterprises that manufacture or import more than one tonne of a chemical substance per year would be required to register it in a central database. REACH furthermore gives greater responsibility to industry to manage the risks from chemicals and to provide users in the supply chain with safety information on the substances.

We have also initiated a comprehensive review of the minor elements in our products, with an initial focus on data gathering. There are a range of minor elements originating in minerals deposits that can accumulate in the biosphere, if not appropriately managed.

Industry Initiatives

Applying our stewardship principles, we are actively involved in several product stewardship initiatives, including:

• nickel
• copper
• lead
• silver
• diamonds and gold
• uranium.

Nickel

We are working with the Nickel Development Institute to implement practical product stewardship guidelines, including the proposed EU Chemical Policy, which will require industry to demonstrate that 'chemicals' (which include metals in this context) are safely produced and managed through their life cycles.

Copper

We are actively supporting the International Copper Association in developing definitions, principles and projects under the Copper Stewardship program.

Lead

We are continuing to play an active role in the Green LeadTM project, an initiative originally conceived by our Cannington silver/lead/zinc operation and adopted in recent years by the lead industry. The vision of the Green LeadTM project is to independently certify that producers are applying best practice to all aspects of the product life cycle.

The GreenLeadTM Consortium has been developing a series of protocols and guidelines that if followed, will minimise the risk of lead exposure to people and the environment. By the end of 2005, a GreenLeadTM Assessment Tool was developed to help assess facilities anywhere in the lead acid battery value chain against the Green LeadTM protocols.

The assessment tool has been tested at battery manufacturing and recycling facilities in El Salvador; our Cannington Mine in Queensland, Australia; a lead smelter; a battery recycling plant and the Toyota car plant in Victoria, Australia. The assessment tool has also been tested within Australia at the transport links that join the sectors, including Mitchell logistics (road), Queensland Rail (rail) and RightShip (shipping). 

Queensland Rail transports a number of our products to market as well as consumables to our operations, and is a significant link in the life cycle of several of our products. Discussions between our companies has led to Queensland Rail implementing stewardship programs within its business that complement the product stewardship activities being conducted ‘behind the mine gate’ at our Queensland (Australia) assets.

In the forthcoming year we are expecting to obtain the support of a significant global retail partner in removing lead acid batteries from its product inventory.

Once the testing of the assessment tool has been completed, a Green LeadTM certification scheme and a Green LeadTM governance organisation will be established to facilitate third party verification of performance.

Silver

BHP Billiton was the foundation Chairman of the Silver Research Consortium.

Diamonds and Gold

BHP Billiton was an original signatory to the Early Adopters Program initiated by stakeholders in the gold and diamond life cycle. During 2005/06 the program developed into the Council for Responsible Jewellery Practices, which is aimed at reinforcing confidence in the gold and diamond supply chain. In addition, our Diamonds business is a member of the Kimberley Process Certification Scheme, an international diamond certification scheme aimed at halting the trade in 'conflict diamonds'.

Read more: Environment Case Study>Stewardship>Council for Responsible JewelleryPractices.

Uranium

BHP Billiton’s uranium strategy is based on the recognition that to be a world-leading supplier of uranium concentrate requires a foundation based on uranium stewardship.

Australian Uranium Industry Framework Steering Group

In 2005 the Australian Government, through its Department of Industry, Tourism and Resources, established the Uranium Industry Framework (UIF) Steering Group to propose a uranium strategy. As a member of the Steering Group, BHP Billiton encouraged the establishment of a Uranium Stewardship Working Group to support the work of the steering group.

Acknowledging that the stewardship working group is limited in its capacity to provide a full life cycle stewardship program, as Australia is currently only active in the uranium mining sector of the life cycle, the working group reported that any uranium strategy should:

• demonstrate the effectiveness of industry environmental management performance and provide assurance that existing regulatory controls are adequate and commensurate with the levels of actual risk involved
• support continuous improvement in the economic, social and environmental performance of the Australian uranium industry
• improve stakeholder awareness and engagement and build public trust
• engender an attitude of shared responsibility between the various players in the value chain
• improve market access
• realise potential benefits in terms of competitive differentiation, value adding and consistency with zero harm principles.

Specifically it was proposed that the UIF Stewardship Program should:

• focus on the role and responsibilities of the Australian uranium industry within the broader context of the global nuclear fuel cycle
• clearly differentiate the direct responsibility of Australian industry from areas of interest, obligation and care under a shared responsibility framework  
• take a global life cycle view
• be driven from an Australian industry perspective but recognise the experience and strengths of others in the uranium value chain.

World Nuclear Association

The World Nuclear Association (WNA) represents approximately 90 per cent of the global life cycle of uranium from mining to disposal.

In April 2006, BHP Billiton presented the Australian Uranium Stewardship Working Group Report to the WNA Sustainable Development and Climate Change Working Group Meeting.  As a result of this presentation, the WNA Board agreed to establish a Uranium Stewardship Working Group within the WNA structure. BHP Billiton accepted the position of chairing this working group.

The first meeting of the working group was held June 2006. Attending were representatives of each sector of the uranium life cycle from geographically diverse locations that included the USA, Canada, Australia, Russia, France, the UK and Spain.

Prior to the meeting, BHP Billiton personnel visited all aspects of the nuclear fuel cycle in the UK, Sweden, France and Finland as part of an ongoing familiarisation program to provide understanding of the movement of uranium through the nuclear fuel cycle.

Outcomes of the meeting included:

• acknowledging the usefulness of having the entire life cycle of uranium around the same table and being united in a desire to ensure no HSEC impacts in the uranium life cycle
• recognising that achieving uranium stewardship is a long-term strategy
• defining uranium stewardship as ‘a program of action to demonstrate that uranium is produced, used and disposed of in a safe and acceptable manner. The program takes a life cycle approach and encourages the use of leading practices for health, safety, environment, and social aspects along the value chain and emphasises waste minimisation and encourages recycling.’
• recognising the importance of identifying leading practice examples in the life cycle as a means of determining both the ‘uranium stewardship current state’ and ‘uranium stewardship future state’
• agreeing to engage in dialogue with a wide variety of stakeholders, including NGOs, so as to describe what is meant by the ‘uranium stewardship future state’
• recognising that uranium stewardship involves the entire life cycle.

BHP Billiton uranium dialogue

In April 2006 BHP Billiton held a stakeholder dialogue at which over 30 participants from NGOs, SRIs, and academics, as well as company personnel, discussed a series of issues related to uranium.

The forum expressed  a strong expectation that BHP Billiton will take a responsible approach to our role in the uranium supply chain. Various views regarding the merit of uranium mining and BHP Billiton’s role in the nuclear life cycle were expressed, such as our role in:

• advocating for stricter international safeguards and social acceptance of uranium
• waste management and disposal
• developing other energy alternatives
• taking a consortium approach to managing surplus uranium
• international uranium agreements and policy discussion
• the environmental management of the Olympic Dam copper and uranium mine.

We will continue to engage on this topic as we develop our strategy to responsible uranium stewardship and embed our role in the supply chain.

Read more: Engaging Stakeholders>Dialogue in 2006 for further details.

During the year, the BHP Billiton Forum on Corporate Responsibility devoted much time to discussing uranium. At the meeting held in May 2006, ‘It was agreed that BHP Billiton could make a positive contribution by improving the quality of public debate on the uranium industry. By working with key stakeholders, including customers and regulators, to raise the quality of the debate BHP Billiton could help strengthen and improve the regulatory frameworks. This could be an important contribution, particularly in countries where governance and regulatory structures are not strong.’

The Company is also presently investigating a major expansion of its Olympic Dam mine in South Australia. To secure the required Australian and South Australian government approvals for the expansion, an Environmental Impact Statement (EIS) is being prepared that will address key environmental and social issues including ground disturbance, dust and air emissions, radiation protection, water and energy supply to the operation and impacts on local and regional communities including Indigenous groups.

Read more: Environmental Case Studies>Environmental Management.

Uranium stewardship at Olympic Dam Mine

As part of our overall uranium stewardship approach we recognise the importance of our specific stewardship responsibilities on site at Olympic Dam. In some cases, we are already required by customers to provide data that enables them to complete an environmental product declaration.

An Olympic Dam uranium stewardship program has been developed that:

• considers all activities at Olympic Dam
• identifies what potential sustainability impacts may occur
• identifies what systems are in place to eliminate or minimise that impact and assesses the effectiveness of those systems.

The figure below reflects the value chain components at Olympic Dam.

Radiation safety at Olympic Dam Mine

The presence of uranium in the mining and processing at Olympic Dam introduces specific challenges associated with radiation safety. Radiation protection is an integral part of all stages of work and includes consideration during exploration, mining, processing, marketing, transport, long term closure plans and disposal of wastes. Personnel are monitored to ensure compliance with international and national guidance levels and State regulations. The doses to employees and the public are subject to stringent scrutiny by the regulatory authorities, and results are present in quarterly and annual reports.

Radiation exposure limits are set by international, Australian and state bodies, following the recommendations of the International Commission on Radiological Protection (ICRP) and the International Atomic Energy Agency (IAEA) Basic Safety Standards. Throughout the history of Olympic Dam, no employees or contractors have received a radiation dose above the regulatory limit for mine workers of 20 mSv/y.

At the time of reporting, 2005/06 financial year dose results are still being analysed, but the most recent quarterly report indicates that the average dose is approximately 4 mSv/y and the individual maximum around 10 mSv/y, half of the regulatory limit. Our dose control performance is due to a number of major initiatives at Olympic Dam, such as a major upgrade to the ventilation in the smelter. Public doses to radiation at Olympic Dam are a small fraction of that received from natural sources and are over fifty times under the public dose limit of 1 mSv/y.

We continuously strive to improve our radiation safety performance. Initiatives underway include expanding our real time exposure monitoring program to enable quicker response and better feedback to our employees and contractors. Radiation protection is an essential component of operations at Olympic Dam and performance in this area is a key indicator of our commitment to the health and safety of our employees, contractors and the environment.

Uranium transport and export

Uranium production and transport to customers are performed in a safe and appropriate manner. All transport of uranium product is conducted under Transport Plans approved and audited by the Australian Safeguards Non Proliferation Office (ASNO), and the South Australian and Northern Territory governments. Road, rail and ocean freight is approved by ASNO; and an integrated exports approval process involves a variety of national and international agencies. Our emergency response programs have been developed in accordance with international, state and territory objectives. In accordance with normal practice, all transport of uranium product in 2006 was conducted safely and without incident.

All the countries to which our uranium product has been sold have been approved and monitored under bilateral agreements with the Australian government and are signatories to the international Nuclear Non-Proliferation Treaty.