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Rio Tinto Alcan Primary Metal BC

Sustainable Development Report 2011

About This Report
We produced our first annual sustainable development report for BC Operations in 1999. This edition, covering the calendar year 2011, marks the 13th year of public disclosure of key performance indicators that track our progress across the governance, environmental, social and economic dimensions of sustainable development. This report was prepared primarily for the benefit of external stakeholders, including residents of our operating areas in Northwest and North Central BC, suppliers, customers, investors, and regulators. Reporting relates to our primary metal operations in BC and, unless otherwise noted, excludes the small Strathcona coke calcining plant located near Edmonton, Alberta, which reports into BC Operations. Content has been developed in accordance with recognized international recommendations for sustainable development reporting, such as the Global Reporting Initiative (GRI) guidelines. However, since this report provides a high-level overview and pertains to a single operating location rather than to the corporation as a whole, no declaration is made with respect to formal application of GRI guidelines. Information on broader corporate practices and outcomes in the area of sustainable development is available at www. riotintoalcan.com and www.riotinto.com. In addition to this report, Rio Tinto Alcan Primary Metal BC produces a detailed Annual Environmental Report as part of the requirements associated with our operating permits in BC. That report is available at www.riotintoalcaninbc.com.

Sustainable Development Report 2011 Table of Contents 2 2 4 About Rio Tinto Alcan Message from the Vice President Message from the Director of Operations 10 Performance: Governance 11 Performance: Environment 18 Performance: Social 20 Performance: Economic 24 Our Stakeholders and Future 24 Your Feedback 5 Operational Overview 5 Facilities 5 People 6 Production 7 Kitimat Modernization Project 8 Introduction to Sustainable Development 8 Our Sustainable Development Approach 8 Our Sustainable Development Framework Ron Plante 1 .

a leading international mining company involved in each stage of metal and mineral production. By the end of the year my role had changed to focus on the next steps of strategic development in Western Canada and of course very specifically BC and Kitimat. Headquartered in Montreal. we maintained very strong safety performance. social and economic dimensions of our business. Canada. no one year is quite like another.” These guiding values determine the way we manage the governance. BC Operations is now wonderfully placed to be a foundation within the Primary Metal group. alumina.riotinto. Our enviable hydroelectric power position delivers significant competitive advantages in today’s carbon-constrained world.riotintoalcan. That we must continue operating the old smelter while building a new one within the same footprint makes it all the bigger an undertaking. Rio Tinto Alcan is one of five product groups of Rio Tinto. 2011 had the potential to be “our year” and so it proved. No one was more pleased or relieved than me when Rio Tinto announced in December the full funding of our project and with that gave the Kitimat Modernization Project (KMP) notice to proceed. The investment of US$3.com and www. and aluminium and our AP™ smelting technology is the industry benchmark. Regrettably.com Message from the vice president In the life of an operation as complex as Rio Tinto Alcan Primary Metal BC. Rio Tinto’s reputation stems from core values of accountability. and integrity as expressed through the principles and standards of conduct set out in our global code of business conduct. we lost some ground . respect. “The Way We Work. To learn more about Rio Tinto Alcan and Rio Tinto. We are one of the world’s largest suppliers of high quality bauxite. Rio Tinto Alcan was restructured and the Primary Metal business group reformed.3 billion in Kitimat is of course nothing less than massive both in scope and complexity. please visit www.Sustainable Development Report 2011 About Rio Tinto Alcan About Rio Tinto Alcan Rio Tinto Alcan is a global leader in the aluminium business. 2 The completion of the backup tunnel in Kemano and the development potential of the Douglas Channel as an integrated hub for Rio Tinto and third-party materials became a full-time job. despite the heightened potential for incidents due to overlapping de-commissioning and newconstruction activities. Staying the Safety Course Most notably in 2011. environmental. The Group is listed on the London Stock Exchange and Australian Securities Exchange under the symbol RIO. However 2011 proved to be monumental in securing the future. teamwork.

Highly Localized The scope of the economic benefits our operations create. As of Paul Henning Vice President BC Operations and Strategic Projects. Over the course of 2011 and into 2012. year end. With the new technology it will use. more than 60 per cent of the KMP workforce was from the Kitimat-Terrace region. Our environmental results also reflect continued progress in some areas. including a reduced number of permit non-compliances. supported by daily spending in the millions of dollars. we reported an increased number of spills. and the extent to which they remain within Northwest BC. Western Canada 3 . social and economic metrics. Less positively. Vote of Confidence The outcomes during the year justified the highly important vote of confidence in the future of this operation that Rio Tinto made when it gave final notice to proceed with the full scope of the KMP investment. We anticipate significant benefits for all stakeholders.Sustainable Development Report 2011 Message from the Vice President on the journey towards zero harm by choice. And in a move that can rightly be called historic. thanks in part to a localpriority policy. It was also another milestone year in our relationships with neighbouring First Nations. 2011 Highlights • All-injury count at <10 • Reduction in environmental permit non-compliances • Extensive economic impact in Northwest BC • Maximizing local benefits from KMP • Agreement with Cheslatta Carrier First Nation on land transfers • Notice to Proceed on KMP Big Benefits. We completed multiyear discussions with the Cheslatta Carrier First Nation regarding lands in the vicinity of the Nechako Reservoir. the new state-ofthe-art smelter has taken more concrete shape day-byday. We worked in 2011 to capture KMP’s potential to advance regional economic development and diversification. we will be able to significantly improve our performance across a range of environmental. You’ll find specific data elsewhere in this report. we formally transferred these properties to the First Nation in early 2012. with two more lost-time injuries than in 2010. the economic impacts of our regular operations were augmented – and to a considerably larger extent – by the procurement and resulting employment benefits associated with the KMP. I believe 2011 performance demonstrates our readiness to make the most of our remarkable new facility – as well as our commitment to getting the best results possible from the old smelter. Total emissions of various types were down – although this was partly a result of reduced production. But the all-injury or recordable count remained at the remarkably low and record-setting level of nine for the year. That latter category of benefits has continued to expand in 2012 as we have moved further into full construction mode. but for the most part only by moderate margins. As in 2010. and look forward to laying them out in future reports of this type. Emissions per tonne of production were up in many cases. In the meantime. continue to speak for themselves. right up to the last pour of aluminium within its walls.

safety. And through rigorous use of pre-task assessments. which we look forward to reporting on in 2012. which allow us to quickly respond to customer needs. including the remaking of the landscape of the north end of the plant site. with many local contractors on site performing preliminary work for the project. From an operational perspective – and in addition to more fully integrating Rio Tinto standards and programs into our activities – we worked to return the maximum number of pots back to operation. and adherence to defined procedures and practices. Although markets remained relatively soft. The image shows the cleaning and demolition work that has been done in the area in preparation for the Kitimat Modernization Project. We each committed to coming to work and going home safe and healthy every working day. This was a shifting of gears. and we recognized that this can only be done if we believe that “zero harm by choice” is both obtainable and sustainable. we kept up year-overyear improvement. we were able to sell all metal units produced mainly due to our diversified production capacities. The stage is set for hugely exciting developments here. Message from the Director of Operations While appointed to my current role after just shortly after year-end 2011. And although markets remained relatively soft. after having slowed down replacement of failed units during the economic downturn – a strategy that better matched production with demand while protecting employees from lay off. Kirk Grossmann Director of Operations Rio Tinto Alcan Primary Metal British Columbia 4 . There were dramatic developments after full notice to proceed in December. KMP continued to move forward throughout 2011. which allow us to quickly respond to customer needs. the environment and quality: these remained our focal points during the year.Sustainable Development Report 2011 Message from the Director of Operations An aerial view of what was once Potlines 7 and 8. Health. with demolition and new-building erection begun. we were able to sell all metal units produced mainly due to our diversified production capacities. Training plans are being developed and – in cooperation with the union – the full transition plan is taking shape. The work to support operation of a new smelter of world-class capacities got well underway in 2011. I’m pleased to have the opportunity to provide some comments on our operational achievements and learnings.

full-time positions. are added to produce specific characteristics such as strength and corrosion resistance. Its main raw material is alumina ore. including 1. Operational Overview Facilities In 2011. Electricity is then used to break the bond between the aluminium and oxygen molecules of which alumina is composed. such as the carbon-based anodes used to introduce electricity into the pots. is 282. An electrolytic reduction process is used to separate aluminium out from the ore.389 in 2010.000 tonnes of primary aluminium.000 megawatts (MW). The aluminium is then poured into moulds and chilled with water.018 employees as of December 31. with 81 per cent of the workforce (1. Other facilities on-site at Kitimat produce specific materials required in aluminium production. professional. excluding 42 workers on Long Term Disability (LTD) and down from 1. located at the head of the Douglas Channel on BC’s northwest coast. all of whom are in permanent. 5 . our Kitimat aluminium smelter completed its 57th year of continuous operation. Our workplace is unionized. such as magnesium and copper. supervisory. Two employees were based in each of Vanderhoof and Vancouver.218 working at the smelter and another 39 working shifts at the powerhouse in Kemano. The large amounts of electricity required are generated at the Kemano powerhouse located 75 km southeast of Kitimat. Local 2301. People Rio Tinto Alcan employed 1. 2011) represented by the Canadian Auto Workers Union. the Kemano powerhouse uses water impounded in the 91.Sustainable Development Report 2011 Operational Overview Removing the old anodes and cathodes from Potline 7B. large volumes of which are imported by ship. and administrative functions. The KMP is estimated to have created a further 857 jobs in BC during 2011 at suppliers to the project. The heavier aluminium molecules sink to the bottom of the pot and are extracted and transported to a casting centre.000-hectare Nechako Reservoir in North Central B. The KMP – which involves the replacement of the existing smelter with a new one – progressed into full construction phase during the year (see page 7). This involves dissolving alumina within a molten bath inside steel structures called pots. The non-unionized workforce is made up of employees performing managerial. forming solid ingots of specified shapes and sizes. Various alloying materials. The annual rated capacity of the existing smelter. With an installed hydroelectric generating capacity of 1. All union members are in permanent positions. All but four employees were based in Kitimat.C.261 people in BC as of the end of 2011.

all in foreign exchange to the Canadian and BC economies. This enables employees to develop their skills and realize their personal and career goals.6 per cent in 2010.568 (US) per tonne. and two co-op students in 2011. Rio Tinto Alcan estimates the earnings value at US$440. Employees also participate in in-house training. In addition to regular employees. Rio Tinto Alcan supports employee participation in various external training programs such as post-secondary education through accredited universities. Modernization construction is projected to reach its peak in early 2013. which is sold to customers for remelting and a variety of enduse applications. Rio Tinto Alcan Primary Metal BC produced 168. and post-secondary education performance are then selected by draw. compared to 7.7 million. with the first hot metal in the new smelter expected to be poured in 2014 6 . local residency. down from 120 students in 2010.591 tonnes. extrusion ingot in rectangular and cylindrical forms. Products are shipped to markets in North America and Asia.Sustainable Development Report 2011 Operational Overview Ron Fossl The average age of employees in 2011 was 47 years. and Japan. down from the 184.1 per cent. The Kitimat smelter previously produced three types of ingots: value-added sheet. Production In 2011. Production of alloyed cylindrical extrusion ingot was discontinued in 2011 due to market considerations.021 tonnes of hot metal. Total sales of ingot products were 171. Employee turnover (including transfers) for 2011 was 11. At an average value of $2. with an average of 20 years of service. Korea. Students who meet requirements relating to experience. Rio Tinto Alcan employed 76 summer students in BC. primarily the United States. and trilok.366 tonnes produced in 2010 due to the decommissioning of older potlines to make way for the new smelter.

) 7 . representing a formal commitment to complete the $3. The step-change in technology will improve cost structures. and secure the presence of the aluminium industry in Northwest BC for decades to come. KMP early-works implementation began in 2008. with first hot metal in the new smelter expected to be poured in the first half of 2014. commencement of building relocations.3 billion investment. environmental performance and workplace conditions.000 tonnes per year. (See also page 24. and it will use virtually all of the firm power generated at Kemano. and construction of the first phase of an onsite residential village for the construction workforce. The modernized smelter will continue to take fuller shape in 2012. In December 2011.Sustainable Development Report 2011 Operational Overview Kitimat Modernization Project: 2011 Status Update The Kitimat Modernization Project (KMP) involves replacing the existing smelter with a new facility that will use Rio Tinto Alcan’s proprietary AP™ aluminum production technology. Jean Simon. the anode bake furnace (a pivotal component of pre-bake technology) and other structures to be erected.1 million makes on-schedule completion critical. And average daily expenditure of $3. Brent Hegger. energy efficiency. Ron Leibach. utilities corridor installation. Kitimat mayor Joanne Monaghan. earth works. Smelter capacity will be increased by 48 per cent to 420. Rio Tinto Alcan announced a full notice to proceed with the project. Construction is projected to reach its peak in early 2013. with building relocations proceeding. Michel Lamarre. cleaning and demolition of buildings housing dormant potlines. and site preparation extended until 2010. KMP is already generating significant employment and economic activity in Northwest British Columbia (see page 23). Work in 2011 included engineering and design. The modernized Kitimat smelter will be one of the lowest cost and most efficient in the world. and tie-in’s to be made to existing smelter operations. Paul Henning and Haisla Nation councillor Henry Amos cast the first shovel of dirt officially marking the beginning of the Kitimat Modernization Project on 1 Dec 2011.

decrease operating costs. provide additional business opportunities. while containing the same set of performance measures found in previous reports from Rio Tinto Alcan Primary Metal British Columbia. Adopting a responsible approach in metals and mining development ensures we gain and maintain our licence to operate. attract high calibre employees and ensure their health and safety. our commitment to sustainable development is integrated into everything we do.Sustainable Development Report 2011 Introduction to Sustainable Development KMP Construction Village Introduction to Sustainable Development Our Sustainable Development Approach Sustainable development is commonly defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”1. Our operations give us the opportunity to bring long-lasting positive change to the communities. Our Sustainable Development Framework In 2011. We believe these measures are well aligned with the current nature of our operations and our stakeholder interests. This includes helping us to manage risks effectively. global transition to sustainable development. and that they are of strong local pertinence. and improve our access to the mineral resources. reduce environmental impacts. regions and countries where we work. The Rio Tinto Alcan Sustainable Development wheel shown on the facing page reflects the outcome of this assessment. and our metals and minerals are transformed into end products that contribute to higher living standards. It means we provide confidence to our stakeholders. 8 . Our approach to sustainable development therefore enables us to keep investing in line with the Rio Tinto Group strategy. At Rio Tinto Alcan. we believe that our business can make an important contribution to the ongoing. Rio Tinto Alcan conducted a materiality assessment to determine which issues and indicators within overarching sustainable development principles would be of most relevance to external stakeholders and to our Product Group. While it cannot be achieved by one organization on its own. and ultimately to deliver better returns for our shareholders. people and capital we need. This report has been structured to align with the four quadrants of this circle. engage with our communities. Our focus on sustainable development provides us with a competitive advantage.

un-documents. Further commentary on the Rio Tinto Alcan perspective on each of the four quadrants that make up this framework appears at the start of each of the following main sections. and more detailed discussions of 2011 environmental. Our Common Future. Development and International Co-operation: Environment August 2.htm 9 Safety nd La nal gio ic Re nom nt ecoopme el dev Sustainable development Engagem ent Ec on om ic So al ci an m ts Hu righ ity & Integr ance li comp . Report of the World Commission on Environment and Development. 1987. World Commission on Environment and Development. social and economic performance results for Rio Tinto Alcan Primary Metal British Columbia.Sustainable Development Report 2011 Introduction to Sustainable Development We will consider refinements to future reports to more closely align with performance measures reported at the Product Group level. as well as to reflect the significant operational changes that will result from smelter modernization. These include an overview of governance. The Rio Tinto Alcan Sustainable Development Wheel Biodiversity er Wat En erg y Was te pe Fi rfo nan rm ci an al ce Air te ma Cli ange ch en t m ro n En vi Process technology & innovation nities Commu le op Pe G ov er na nc e He alt h 1. Published as Annex to General Assembly document A/42/427. available at http://www.net/wced-ocf. 1987.

and with local stakeholders represented on our Public Advisory Committee • Continued to engage with community-based Social Impact Committee regarding KMP implementation.Sustainable Development Report 2011 Performance: Governance Haisla Nation chief councillor Ellis Ross. 10 . conducted multiple surveillance and internal audits • Completed implementation of the Rio Tinto Health. 2011 Highlights in British Columbia Engagement – Human Rights – Integrity and Compliance • Maintained our long-standing integrated certification to independent environmental.” our global code of business conduct. in conjunction with the requirements of local law and our voluntary commitments. in accordance with signed agreements and protocols where applicable.riotintoalcaninbc. standards and guidance notes are available at www. thus standardizing approaches to ISO compliance • Continued to update all aspects of risk management through ongoing target setting. Safety. “The Way We Work. respect. 9001. updated to address activity changes associated with the KMP start-up • Continued to engage on environmental matters with provincial and other regulatory authorities. such as the Haisla Legacy Agreement   Case study A Consistent Understanding of Standards. standards and guidance notes2. Rio Tinto Alcan chief executive Jacynthe Cote and councillor Keith Nyce.asp 3. and occupational health and safety standards (ISO 14001. implementation and assessment • Achieved high-level of compliance with results-oriented multi-media environmental permit. Heavy flows prevented comparative measures in the unregulated Stuart River in 2011. teamwork and integrity. Environment and Quality (HSEQ) Management System. forms the basis of our governance systems.riotinto. supported by our global policies. Rio Tinto’s global policies. and to provide information through a KMP community office • Continued to engage with First Nations in operating area. Performance: Governance The Rio Tinto Framework: Our reputation for acting responsibly plays a critical role in our success as a business and our ability to generate shareholder value. That reputation stems from our four core values: accountability. 18001).com/media/ingot/Ingot_2011_September.com/library/3608_policies. production process quality.pdf 2. page 4 at www.

treated and tested. due to process control improvements. 2011 Performance in British Columbia: Environmental outcomes were significantly influenced by activities associated with the preparation and start-up of the Kitimat Modernization Project (KMP). monitoring network was expanded and siting improved.85 tonnes per tonne of production.000 pop can pulltabs made its debut in 2011. fluoride emission rate declined slightly • Found significantly lower fluoride concentrations in vegetation (with exception of some areas adjacent to smelter) due to reduced fluoride emissions and higher precipitation • Implemented multiple improvements to hydrogen fluoride (air quality) monitoring: monitors were replaced with more efficient technology. Performance: Environment The Rio Tinto Framework: Respect for the environment is central to our approach to sustainable development. which include input from our local communities. while hazardous waste generation increased due to KMP activities. as well as from experts in these fields. There were reduced impacts in areas such as greenhouse gas (GHG) emissions. and there were additional changes such as preparation for closure of the alloyed cylindrical extrusion line. and then discharged using a configuration designed to prevent overflows during heavy precipitation • Observed no exceedances of 20-degree water temperature threshold in the regulated Nechako River during summer salmon migration period3 • Continued to engage with First Nations and other regional interests on land stewardship and ownership transfers (see Social highlights) • Recorded lowest number of permit non-compliances since the exceptionally low non-compliance year of 2005 • Implemented environmental monitoring and risk-management requirements as part of the KMP contract management 11 . Wherever possible we prevent. mitigate and remediate. It was the first full year of operation without lines 7 and 8. through which surface water runoff from modernization activities is captured.Sustainable Development Report 2011 Performance: Environment Children of Kildala School’s Grade six class have learned that recycling can take on many shapes. 2011 Highlights Biodiversity – Water – Air – Climate Change – Land – Energy – Waste – Process Technology and Innovation • Reduced GHG emission rate from 5. KOOSCie. mainly due to a further reduction in the duration and frequency of PFC-generating anode effects • Diverted and consumed one-third less surface water at the smelter than in 2010 • Implemented action plan to reduce pot process upsets which influence fluoride emissions. We have developed a number of practical programs for environmental management. harmful effects of the Group’s operations on the environment. the aluminium dragon made from almost 3.01 to 4. or otherwise minimize. a passive monitoring program was implemented to provide more insight on dispersion (of both hydrogen fluoride and sulphur dioxide) • Established two new weather monitoring stations. to provide insight on pollutant sources and contributing factors in the event air-quality issues are detected • Implemented KMP Water Management Plan.

2011 A Smelter Energy Consumption 3.351 MWh .021 MWh 127.687.688.com/media/reports/AER%202011.pdf 12 .291. although it remained at a lower rate than in the two preceding years • Concentrations of dissolved aluminium.000 MWh 46.25% Aluminium Production (Reduction) 3.575 MWh 249.261.865 MWh 16.954. etc.riotintoalcaninbc. 2011 A A B Total Hydroelectric (total generation at Kemano) Natural Gas Fuel Oil (gasoline. while effectively managing environmental impacts associated with KMP implementation • Maintain scheduled progress towards KMP completion and use of new process technology and associated reductions in environmental impacts • Continue to engage with regulators regarding potential provincial implementation of a cap-andtrade system relating to GHG emissions • Continue to engage with regulators to initiate the new smelter air-emission permitting process • Continue to improve process emission controls to operate within Environment Canada PAH reduction emission targets Energy Use by Source. improved cleaning and maintenance of potroom courtyards was implemented to reduce an aluminium source • Spent potlining generation increased as a result of the KMP-related closure in 2010 of two potlines. fluoride and total suspended solids increased due to higher precipitation throughout the year.75% (2010=52%) Auxiliary Uses 166.576 MWh 19.5% (2010=2%) Power Sales Transformation & Transmission Losses Energy Use at Powerhouse 3.358 MWh 6. page 11 at www.com/media/ingot/Ingot_2011_September. after a significant decline in 2010.537) B Hydroelectric Generation and Use.Sustainable Development Report 2011 Performance: Environment 2011 Challenges • Particulate emission rate returned to a higher level.riotintoalcaninbc.935 MWh 6.) 6.000) C Total Generation at Kemano: Case study Keeping an On-site Stream Flowing Smoothly.5% 2% <1% (2010=54%) A B B C (2010=44%) (2010=2%) (2010=<1%) (2010=7.621 MWh 51. although no known environmental damage was associated with any of these 10 incidents 2012 Priorities • Continue to maximize the environmental performance of the existing smelter.48.6% <1% (2010=97%) (2010=3%) (2010=<1%) (2010=7.270 MWh .pdf More detail on environmental performance and influencing factors is available in the Annual Environmental Report for BC Operations at www.2.113.427.053.375 MWh 96% 3. this hazardous waste was shipped offsite for treatment and permanent disposal in a secure landfill • Incidents requiring reports to regulators increased.

Emissions are expressed on a tonne of CO2-equivalency basis.Sustainable Development Report 2011 Performance: Environment Energy Use.000 0 02 03 04 05 06 07 08 09 10 11 Year Direct GHG emissions from sources owned or controlled by Rio Tinto Alcan Primary Metal BC. / tonne AI 7 6 5 4 3 2 1 0 02 03 04 05 06 07 08 09 10 Tonnes CO2 8 Anode Effects Minutes 7 6 5 4 3 2 1 0 11 Year Direct GHG emissions from sources owned or controlled by Rio Tinto Alcan Primary Metal BC. 1.500.000 Tonnes.5 kWh / kg Al 18. GHG Emissions (direct & process). casting.000. anode production. on-site coke calcining.000 500. casting. CO2 equiv. Tonnes (C02 equiv. per Tonne of Production 5 Tonnes C02 equilv. Emissions are expressed on a tonne of CO2-equivalency. per Tonne of Production 19. on-site coke calcining.0 02 03 04 05 06 07 08 09 10 11 Year Based on Aluminium production energy use only.0 17.5 17. Anode Effect Minutes PFC Emissions Rate. and per-tonne-of-Aluminium-production basis. GHG Emissions Rate (direct & process). / tonne Al 4 3 2 1 0 02 03 04 05 06 07 08 09 10 11 Year 13 . including smelting.0 18. anode production. and power operations.000 1. per Tonne of Production 8 Tonnes CO2 equiv.000. including smelting.) 2. and power operations.

7.0 kg PAH / tonne Al 0. Tonnes 250 200 150 100 50 0 02 03 04 05 06 07 08 09 10 11 Year 10.0 0. Tonnes Tonnes Tonnes 02 03 04 05 06 07 08 09 10 11 Year PAH Emissions Rate.5 1.5 0.000 2. kg per Tonne of Production 02 03 04 05 06 07 08 09 10 11 Year 14 .5 kg/t Al 02 03 04 05 06 07 08 09 10 11 Year PAH Emissions. Tonnes (potroom roofs) 1000 500 02 03 04 05 06 07 08 09 10 11 Year Fluoride Emissions Rate.0 2.9 kg/t Al 8 7 6 5 4 3 2 1 0 Particulate Emission Rate.5 kg F / tonne AI 2.0 02 03 04 05 06 07 08 09 10 11 Year Permit Limit.0 kg / tonne Al 1.0 02 03 04 05 06 07 08 08 09 10 11 Year kg SO2 / tonne Al 35 30 25 20 15 10 5 0 SO2 Emissions Rate.2 1.2 0.000 0 SO2 Emissions. kg per Tonne of Production 3. Tonnes 800 700 600 Tonnes Tonnes 500 400 300 200 100 0 02 03 04 05 06 07 08 09 10 11 Year 0 1500 2000 Particulate Emissions.000 4. kg per Tonne of Production 1. 1.8 0.Sustainable Development Report 2011 Performance: Environment Fluoride Emissions.4 0.6 0.000 8. kg per Tonne of Production (potroom roofs) Permit Limit.000 6.

B Lagoon 10 Dissolved Fluoride (ML) Total Suspended Solids Permit Limit Dis. Nechako Reservoir 2011 – In ows and Releases (% of Long-Term Average) 800 700 600 500 % 400 300 200 100 0 Jan Feb Mar Apr In ows May Jun Jul Spills Aug Sep Oct Nov Dec Precipitation Kemano Draft 15 .000 3.44 Due to heavy water ows down the Stuart River.000 4.5 2.970 ML (mega-litres) 2. TSS. These volumes are not directly measured.000 0 02 03 04 05 06 07 08 09 10 11 Year Range established in 1987 agreement Water Use By Source.000 1.5 0. 2011 3.Sustainable Development Report 2011 Performance: Environment Summer Water Temperature Management. Nechako River Stuart River (unregulated) 2011 1983–2011 Average (Days/Year) Nechako River Chinook Spawner Counts 8.000 5.0 1.000 2.000 6. Al Surface Water – Diverted from Kitimat River and Anderson Creek to Kitimat Smelter Imported Surface Water – Well Water for Non-Generating Use at Kemano Total 8.5 1.0 0. TSS (ML) Year Dissolved Aluminium Permit Limit Dis. which is released into the Kemano River. Amounts vary in proportion to precipitation and lagoon outflows and are returned to the marine environment.0 Dissolved Aluminium (ML) Dissolved Aluminium. Dissolved Fluoride. ow measurements were not taken for 2011. Exceedances of 20ºC Water Temperature (July 20-August 20) 12 10 Days per Year 8 6 4 2 0 0 2.000 7.0 02 36 ML 9006 ML 03 04 05 06 07 08 09 10 11 Rio Tinto Alcan Primary Metal BC also diverts saltwater into its effluent treatment lagoons as a toxicity-control measure. and are not included in the above totals. The figures above also exclude water diverted from the Nechako Reservoir for power generation. F Permit Limit TSS = 50ML 6 4 2 0 8 Dissolved Fluoride.

kg per Tonne of Production 120 100 kg SPL / tonne Al 80 60 40 20 0 02 03 04 05 06 07 08 09 10 11 Year 8 6 4 2 The increase in SPL generation was a result of KMP-related potline closures in 2010.500 02 03 04 05 06 07 08 09 10 11 Year 16 .Sustainable Development Report 2011 Performance: Environment Spent Potlining Generation. The “speci c” category of non-compliances includes 10 types of non-compliances that were previously reported separately. Number of Spills 10 Average Potlining Lifespan. Tonnes 20. P2 = Pollution Prevention.500 0 02 03 04 05 06 07 08 09 10 11 Year Days 2.000 1. 0 02 03 04 05 06 07 08 08 09 10 11 Year P2 Program Dissolved aluminium ef uent Fluoride roof emissions Miscellaneous Speci c Spent Potlining Generation Rate.000 5.000 Environmental Permit Non-Compliances 15 12 Number of Events 9 6 3 15.000 Tonnes 10.000 0 02 03 04 05 06 07 08 09 10 11 Year The increase in SPL generation was a result of KMP-related potline closures in 2010. Days 2.

but safety results generally remained excellent. with lower GHG emissions and higher solid waste generation Safety coordinator Terry Taylor leads a group discussion on safety.Sustainable Development Report 2011 Performance: Environment Environmental outcomes were significantly influenced by KMP-related activities. with an all-injury count in the record-setting single-digit range 17 . The number of lost-time injuries went up by two from 2010.

Paul’s Hospital “Lights of Hope” brightens up the evening sky in Vancouver with a collection of stars including some provided by Kitimat. the St. 15 employees pursued external training covered by an Educational Assistance Program. 2011 Performance in British Columbia: Sustaining the excellent workplace safety results of 2010 – with a single-digit all-injury count – was among the performance highlights of the year. active partnership. Jim Ferguson and Dennis Skender donated their own time to build the 15 foot star out of material provided by the company. KMP was also a dominant consideration in the context of workforce development and community outreach. used KVI to provide health. the trust that is engendered by these solid relationships will reinforce our ability to gain preferential access to resources. Performance: Social The Rio Tinto Framework: We’re committed to providing a safe and healthy workplace for our employees where their rights and dignity are respected. and long-term commitment. 2011 Highlights Communities – People – Health – Safety • Maintained the total all-injury count at the record-setting low level achieved in 2010 • Incorporated comprehensive safety standards and requirements into contracts issued in relation to KMP • Continued to provide a range of employee learning and professional development opportunities: eight new apprenticeships commenced.Hosted annually. safety and environment training to external contractors 18 . It was all the more impressive given the additional on-site KMP activities and significant resulting changes to usual operations. Leonard Nunes. We set out to build enduring relationships with our neighbours that demonstrate mutual respect. In the long run. and additional support was provided for two employees pursuing masters-level studies • Remained a joint owner (along with the Haisla Nation Council) and client of the Kitimat Valley Institute Corporation (local skills development).

029.800 hectares of watershed region land to the First Nation • Provided increased Community Investment Fund support – $1. to connect major KMP bidders with locally available subcontracted support • Completed long-term discussions with Cheslatta Carrier culminating in an agreement (in January 2012) to transfer about 4. additional contract resources were provided to the work-area change leads tasked with supporting employees • An average workforce age of 46. page 5 at www.pdf Avoiding a Potentially Lethal Mix.pdf 19 .com/media/ingot/Ingot_2011_Jan-Feb. Environment 16% Health 25% Total # of AI and LTI 100 80 # of AI / LTI 60 40 20 0 02 03 04 05 06 07 08 09 10 11 Year AI (All Injuries) LTI (Lost Time Injuries) Recreation 4% Culture 28% Business 11% Other 3% Case study Checking in on Road Safety. with 62% of the project workforce to the end of 2011 being from the Kitimat-Terrace area • Hosted contractor forum in Vancouver. recreational.0 million – for sporting.260 to important community causes to bene t its northern operating communities and the broader BC public.riotintoalcaninbc. cultural and other initiatives in the Kitimat. Watershed and Vancouver regions 2011 Challenges • KMP implementation – involving significant site reconfiguration and relocations – created largescale change for employees.Sustainable Development Report 2011 Performance: Social • Increased participation in BRAVO employee recognition program • Rolled out Leading for Improvement workshops for management and frontline leaders • Continued to engage with community-based Social Impact Committee regarding KMP implementation. page 7 at www. creating increased training requirements and skills shortfalls in some areas 2012 Priorities • Continue to prepare to meet the workforce and skills requirements associated with smelter modernization and backup tunnel projects • Increase internal communications to better familiarize employees with KMP • Renew the collective agreement with the unionized workforce AIFR / LTIFR 10 8 AIFR / LTIFR 6 4 2 0 02 03 04 05 06 07 08 09 10 11 Year Education 13% AIFR (All Injury Frequency Rate) LTIFR (Lost Time Injury Frequency Rate) Community Donations in 2011 In 2011.riotintoalcaninbc.com/media/ingot/Ingot_2011_November. and to provide information through a KMP community office • Established a local-priority hiring policy for KMP work.7 years is driving significant numbers of retirements. Rio Tinto Alcan contributed $1.

Our continuing financial success is based on our ability to secure access to land. and use of 5S operational improvement methodology • Continued to work with Haisla First Nation to leverage procurement. including preparation for exit from no-longer profitable alloyed cylindrical extrusion production (shutdown in January 2012). social. to maximize local contracting and other growth opportunities associated with KMP 20 . governments and business partners.8 million under budget • Optimized product mix and maximized revenue generation. people and capital. providing space for transportation of construction materials and for other KMP-related requirements. 2011 Highlights Financial Performance – Regional Economic Development • Returned previously idled pots to production in response to improved market conditions and to mitigate impact of line shutdowns necessitated by KMP • Brought annual operational costs in at $7. as per the terms of the Haisla Legacy Agreement • Continued to work. employment and community-development opportunities arising out of KMP. intended to lay a basis for high-return operation of the modernized smelter.Sustainable Development Report 2011 Performance: Economic The marine terminal facilities of the former Eurocan mill in Kitimat were purchased by the Rio Tinto Alcan in 2011. communities. 2011 Performance in British Columbia: We focused on maximizing the return from an existing facility. The terminal will be used as the main laydown site for materials used to build the KMP. environmental and technical expertise to harness these resources and create prosperity for our shareholders. employees. and capacity for increased product shipments post-modernization • Completed a major asset condition assessment with first-ever remote inspection of a portion of tunnel used to deliver water to Kemano powerhouse • Continued to implement structured business improvement initiatives including: employee training and certification in Lean Sigma Six. at the same time that we are constructing its replacement within the same footprint. implementation of IPT (Improving Performance Together) gap analysis and Lean Information Centre communication tool. and achievement of record power sales • Purchased and secured Transport Canada accreditation for former West Fraser Eurocan wharf terminal. Performance: Economic The Rio Tinto Framework: Sustainable development is underpinned by sustainable economies. Efforts continued to support a strong and diversified local economy more broadly. training. in collaboration with regional development organizations. Key developments included an asset acquisition and product-mix optimization. We use our economic.

Product Mix. and continue to achieve further cost savings • Plan for operational transition to use of modernized facilities • Plan for implementation of Rio Tinto Business Solution enterprise software and business optimization tool Hot Metal Production.riotintoalcaninbc. Casting 200 100 80 60 100 40 50 20 0 02 03 Trilock 04 05 Billet 06 07 08 Sheet 09 10 11 Year % Value-Added 150 Tonnes 0 % Value-Added Reduced value-added production in 2008 and 2009 was a result of responses to market demand conditions during the economic downturn Case study Ramping up Idled Production. Tonnes 300.000 200.com/media/ingot/Ingot_2011_Jan-Feb.000 Tonnes 150.000 50.000 0 02 03 04 05 06 07 08 09 10 11 Year 10 8 6 4 2 0 02 03 04 05 06 07 08 09 10 11 Year Number of Customer Complaints Production declines in 2010 and 2011 were a result of KMP-related potline closures. structural issues in existing potrooms. page 9 at www.000 250.pdf 21 .Sustainable Development Report 2011 Performance: Economic 2011 Challenges • Maintaining process quality despite deteriorating coke quality. and impact of a major power outage in April • Ensuring efficient and non-disruptive cleaning and demolition of pot lines 7 and 8 2012 Priorities • Achieve a targeted increase in hot metal production • Align operating and capital expenditures with product pricing and economic conditions.000 100.

573 $128.6 million 20% Kitimat/ Kitamaat $24.1 million 27% Sectors Construction & Contracting $5.Sustainable Development Report 2011 Performance: Economic Direct Economic Contributions to BC in 2011 BC Operations $281.000 Other Districts $19.0 million 71% Telkwa/ Houston/ Smithers $2.4 million 1% Payroll & Bene ts for BC Employees $161.1 million Goods & Services Payroll & Bene ts Total number of individuals employed as of Dec. 31.780 Breakdown of Expenditures in Northwest BC*: Bene ts (WCB.000 Regional Hospital District $445.000 District of Kitimat $11.000 in annual sales 119 Kitimat/Kitamaat 134 Terrace/Kitwanga Total: 271 12 Telkwa/ Houston/ Smithers Regional District of Kitimat-Stikine $198.0 million 18% Manufacturing $9. .143 1. indirect/induced employment in Kitimat-Terrace area: Total number of pensioners living in BC (approximate): Average compensation per employee in 2011: (including bene ts) 1.7 million Communities Terrace/ Kitwanga $6.0 million in Prince George) 19% 3.0 million $1. premiums. EI.1 million All gures are in 2011 dollars 22 * This year’s analysis uses a narrower geographic de nition of “Northwest BC” which excludes interior communities including Prince George.3 million School & Transit Purposes $730.6 million 5% Prince Rupert $0.000 6 Prince Rupert Historical Breakdown of Expenditures in BC (2002 –2011) 120 (goods and services) 100 80 ($ millions) 60 40 20 0 02 03 04 05 06 07 08 09 10 11 Rest of BC Northwest BC Total Property Taxes: $13.7 million 51% Interior BC $12.4 million ($7. 2011 : – 32% of total employment in Kitimat – 10% of total employment in Kitimat-Terrace area † Excluding workers on LTD Total estimated direct.8 million Pension Payments to BC Retirees $40. vacation pay.7 million 8% Wholesale & Retail Trade $9.1 million Property Taxes Remaining in Northwest BC: Provincial Government Portion: (e.5 million Number of Northwest Vendors Dealing with BC Operations (by community) Excludes vendors with less than $25.1 Million payroll & bene ts for BC employees goods & services from BC suppliers pension payments to BC retirees property taxes $ 161. shift pay) $104.8 million Payroll (regular earnings.6 million 30% Northwest BC $33.5 million $ 13.000 Debt $288.257† BC Operations goods & services purchased in BC: $65.7 million $ 40. School Purposes & BC Assessment) $12.7 million (excluding raw materials) Southwest BC & Vancouver Island $19.8 million $ 65. company pension.1 million Goods & Services Purchased from BC Suppliers $65.000 BC Assessment Authority & Municipal Finance Authority $76.8 million 29% Transportation $1.5 million 4% Others $1.7 million 17% Services $6. savings & life insurance plans) $57.g. CPP.

3 million 2% Northwest BC* $23.3 million 5% Other $0.Sustainable Development Report 2011 Performance: Economic Direct Economic Contributions of KMP to BC in 2011 KMP Goods & Services purchased in BC: $95. 23 .5 million 25% Kitimat/Kitamaat $21.3 million 75% * This year’s analysis uses a narrower geographic de nition of “Northwest BC” which excludes interior communities including Prince George.9 million 93% Rest of BC $72.8 million Breakdown of Expenditures in Northwest BC: Terrace/Kitwanga $1.

com. the new potlines at Kitimat will look similar to the one show above at the company’s smelter in Alma. and what will remain a cornerstone of the regional and provincial economies. and significantly reduce environmental impacts.nyce@riotinto. we’ll be able to make even better use of your input. Our Stakeholders and Future The Kitimat Modernization Project is expected to deliver significant benefits from the standpoint of all of our operation’s stakeholders. employment stability and spinoff economic benefits. In particular. and • whether or not we are providing the right amount and type of information on the topics we did include. Expanded production at more competitive costs will secure market position.kitimatworksmodernization. Please send your feedback and suggestions for report improvement to colleen. improve process control.Sustainable Development Report 2011 Our Stakeholders and Future A view to the future for Kitimat. Let us know how we did. And if you let us know a bit about who you are and why our operations interest you.com Your Feedback Our sustainable development reports are intended to provide relevant and balanced information on the impacts of our operations that are of interest to our stakeholders. or included any that you don’t find relevant. 24 . Our skilled workforce will have the benefit of better working environments within what will be one of the three largest smelters on the continent. Once completed. And new technology will increase energy efficiency. For information and updates: www. we’d like to know: • whether we missed any topics that are of interest to you.

INDEX OF TERMS AIFR All Injury Frequency Rate AP Alcan Pechiney (39) Technology CO2e Carbon Dioxide Equivalency CPP Canada Pension Plan EI Employment Insurance GHG Greenhouse Gas ISO International Organization for Standardization KMP Kitimat Modernization Project LTD Long Term Disability LTIFR Lost Time Injury Frequency Rate MWh Megawatt Hours PAH Polycyclic Aromatic Hydrocarbons PFC Perfluorocarbon RTA Rio Tinto Alcan SO2 Sulphur Dioxide SPL Spent Potlining WCB WorkSafeBC 3 .

BC V8C 2H2 Tel: 250 639 8000 Fax: 250 639 8127 Kitimat Modernization Project Community Office 254 Upper City Centre Mall Kitimat. BC V0J 3A0 Tel: 250 567 5105 Fax: 250 567 5800 Burns Lake Office Evergreen Mall PO Box 936 Unit 3B. V0J 1E4 Tel: 250 694 3532 Rio Tinto Alcan 1188 Sherbrooke Street West Montreal. East Burns Lake.com www. 321 Highway 16 Burns Lake. BC V6C 1S4 Tel: 604 257 1400 Fax: 604 257 1421 Vanderhoof Office PO Box 25.ca .kevinhanson. Content development by www.com Printed in Canada on 100% post-consumer recycled fibre.riotintoalcaninbc.200 Granville Street Vancouver. Quebec H3A 3G2 Tel: 514 848 8000 www.kitimatworksmodernization. BC V8C 1T6 Tel: 250 632 4712 Fax: 250 632 4771 Vancouver Office Suite 354 . BC V0J 1E0 Tel: 250 692 4144 Fax: 250 692 1888 Skins Lake Spillway 22573 Ootsa Lake Rd. © Rio Tinto plc and Rio Tinto Limited Published 2012 Designed by Poissy Design Inc. 158 Stewart Street Vanderhoof.Rio Tinto Alcan Primary Metal BC Operations Kitimat Operations PO Box 1800 1 Smeltersite Road Kitimat.

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