Committed to Sustainable Partnerships

Cement Australia: Committed to Sustainable Partnerships

Introduction

Cement Australia is the leading
integrated manufacturer of cementitious
products in Australia. The company holds
47% of the Australian market, and is an
acknowledged leader in the national
industry. Our international shareholding
provides leading global support on the
full range of related technical,
environmental and sustainability issues
confronting the industry.
Cement Australia has the commitment
and capacity to drive worthwhile
sustainable outcomes in cement
manufacture and sustainable materials,
and particularly in relation to resource
conservation and management.

Our Global Links
Our strong links with global cement
players provides us with real advantages
including:
• Global benchmarking of our operations;
• Access to the latest in cement
processing technology; and
• Links to the World Business Council for
Sustainable Development through our
parent companies, Holcim and
HeidelbergCement which provides,
amongst a half a dozen sustainability
initiatives, an international focus on
greenhouse issues, emissions reporting,
and resource sustainability.

Our Operations
Cement Australia has an annual turnover
of nearly one billion dollars, through
4.8 million tonnes of cement sales per
annum, and sales of lime products, fly ash
and slag. We employ approximately 1,100
employees – largely in regional Australia.
We operate from three major integrated
clinker and cement manufacturing
operations, the largest of which is our
Fishermans Landing operation near
Gladstone, as well as some twenty-two
facilities providing the support and logistics
necessary to supply such a geographically
diverse market as Australia. Cement
Australia’s subsidiary Geocycle, a
specialised waste management company,
is an important component in effecting
our sustainability strategy.
Cement is a vital commodity for the
Australian economy, not only as a critical
component of any infrastructure
development program, but increasingly in
resource recovery and reuse innovation –
in both cases providing significant
economic and social benefits.
Its relatively low value and independence
from unique geological raw materials, as
well as its critical importance for the built
environment, means that only very few
countries do not maintain a viable and
strategically important domestic cement
manufacturing industry.

“Cement Australia has the commitment and capacity to drive worthwhile
sustainable outcomes in cement manufacture and sustainable materials,
and particularly in relation to resource conservation and management.”

Cement Australia: Committed to Sustainable Partnerships

Cement Australia: A Sustainable Business

Our Objectives

Our Strategy

While still a relatively young company,
Cement Australia has embarked on its
own journey to understand what
sustainability means, and what our
approach to sustainability might look like.

Sustainable Performance
This element focuses on the financial
performance of Cement Australia,
but also recognises the importance of
actively reviewing and improving the
way the business achieves this.

As a commercial entity, there is clearly
an imperative that we be financially
successful. But we understand that our
longer-term financial success can only
be achieved by embracing a broader
view of sustainability. We don’t believe
that one can exist, in the longer term,
without the other.
So our overarching objective is that
Cement Australia develops into a
sustainable business that delivers on
financial, social and environmental
commitments today, all the while
ensuring our long-term capability
to do this in the future.
This objective must, and does, link with
our company vision – “to be the leader
in cement in Australia”
In order to achieve and maintain this
vision, and with a view to achieving a
sustainable future, we believe that there
are three core inter-related elements,
which must be managed in parallel:

Sustainable Partnerships
We recognise the importance as well
as the breadth of the stakeholders in
our company. Our relationships with
our shareholders, our customers, our
regulatory authorities, our neighbours
and our employees must also be
sustainable. They must have a long-term
focus, and they must be developed as
partnerships – not simply as fleeting
transactions or one-way communications.
As one example of this, Cement Australia
maintains community liaison groups at all
of its major operations and we believe
that these are essential to providing an
accessible public face to the community
as well as enabling proactive
management of community issues.
Sustainable Practices
We build from the more traditional
safety, health and environment focus
to include resource conservation as
well as an understanding of the
collaborative role that industry must
play with society to address critical
issues such as climate change.
Our sustainability strategy focuses on
delivering in each of these areas and can
be summarised opposite.

Cement Australia: Committed to Sustainable Partnerships

Our Sustainability Strategy
Sustainable Business
In order to achieve and maintain our vision of being the leader
in cement in Australia, we must manage three core interrelated
elements in parallel.
SUSTAINABLE
PERFORMANCE
We must deliver excellent financial results to our
shareholders consistently over the long term.
This is achieved through continuous business
improvement activity.

We must build a business that supports and
improves the lives of everyone we interact with.
We respect the people and organisations we work
with and have a role to play in building the
community that supports us.

SUSTAINABLE
PRACTICES
We must ensure our actions do not cause harm
to people or the environment and we reduce our
consumption of natural resources. We must also
work closely with authorities and industry to form
collaborative solutions to global issues.

SUSTAINABLE
FUTURE

LONG TERM VIEW

SUSTAINABLE
PARTNERSHIPS

Cement Australia: Committed to Sustainable Partnerships

So how does this strategy
manifest itself in practice?
Sustainable Performance
“Sustainable Performance”, results in
an increasing focus on integrating
sustainability issues into our financial
planning and budgeting processes.
Within this element, we include a strong
business improvement program and
annual plant performance reviews as
key ways of achieving continuous
improvement. Similarly, human resources
development, particularly within a
relatively small and specialised industry
sector goes hand-in-hand with a
sustainability objective.

Sustainable Partnerships
We have a strong history of ongoing
engagement through community liaison
groups. It is also important that our
regulators understand the vagaries of
cement manufacture, as much as we
understand regulatory processes and
practice.

Our employees are our most important
partnership. Gone are the days when
employees, at the precise moment they
walked through the workplace gate,
delegated responsibility for safety,
environmental performance and
corporate governance to their employer.
We now see new generations of
employees that actively care about the
sustainability performance of their
employer, and are also keen to be
involved in whatever way they can.

Sustainable Practices
Focus areas for “Sustainable Practices”
include our management of safety, health,
environment and compliance, with a
particular focus in recent times on
improved water management and
greenhouse gas emissions management.
Cement Australia is particularly active in
the area of resource conservation, and is
one of the largest material recyclers in
Australia

“Our employees are our most important partnership. We now see new
generations of employees that actively care about the sustainability
performance of their employer, and are also keen to be involved in
whatever way they can.”

Cement Australia: Committed to Sustainable Partnerships

Case Study
Sustainable Partnerships: Case Study
Since the 2003 acquisition of the Railton plant
in Tasmania, Cement Australia has consistently
demonstrated its determination to meet its
obligations to those employees affected by the
manufacture of asbestos sheeting at the site
between 1947 and 1986.
As a company with a commitment to zero harm
and providing a safe working environment for
our employees, we are treating this issue with
the utmost priority. Recognising the
importance of this issue, we have quickly
established a proactive and comprehensive
response to it. Our response operates on a
number of levels:
• Quickly resolving claims as they are made;
• Investing in an accelerated program of
removing or completely isolating all asbestos
at the site.

• Ensuring all employees understand and
implement safe work practices, particularly
in relation to asbestos;
• Encouraging any former employee with a
concern to contact us immediately and
providing these employees with assistance
and information;
• Keeping the community informed through
regular community consultation meetings,
by providing a contact point for information
within our organisation and by ensuring
safety and education materials are available;
• Conducting a detailed study into the level of
occupation exposure during the period of
manufacture to help us better understand the
issue and frame our response accordingly.
The following chart illustrates the spend
commitment associated with this program.

$Million

Asbestos Removal cumulative spend
9
8
7
6
5
4
3
2
1
2000

2001
Actual

2002

2003

2004

2005

2006

Forecast/Fin Plan

2007

2008

2009

2010

2011

2012

2013

2014

“Cement Australia’s approach to greenhouse gas abatement begins at a
grassroots level: with our people; through our operational processes;
through a focus on research and development; as well as by sharing our
knowledge and skills across all of the communities in which we operate.”

Cement Australia: Committed to Sustainable Partnerships

Cement Australia and Climate Change

Greenhouse gas emissions and climate
change are particularly significant
sustainability issues for the cement
industry. For one, society’s demand for
cement, along with the cement
manufacturing process itself mean that,
worldwide, carbon dioxide emissions
from the cement industry contribute
about 5% to total anthropogenic
emissions. The make-up of industry
and power generation in Australia is
such that cement industry contributions
here are much less at about 1.5% of
emissions, but nonetheless significant.

The making of cement
Making cement is an energy and resource
intensive process, requiring the precise
combination of lime, silica, alumina, and
iron, which are combined and then fused
together during the mixing and cooking
process in the kiln.
The raw materials are initially heated to
1000°C, calcining the calcium carbonate
in limestone to calcium oxide and
releasing carbon dioxide, a process
usually referred to as calcination and
contributing to approximately 50% of our
total carbon dioxide emissions.
This calcination process is unique to only
a few manufacturing processes and
highlights the importance of focussing on
emissions rather than energy when
discussing climate change policy.

Within the rotary kiln, the materials are
mixed and further heated to about 1450°c
causing a high-temperature sintering
reaction to occur, forming a calcium
silicate matrix called ‘clinker’.
All of the materials fed into the kiln
become part of the clinker, forming an
intrinsic matrix which, once cooled, is then
ground with small amounts of gypsum
and other minerals to produce the grey
powder commonly recognised as cement.
Manufacture of the intermediate product
– clinker, is responsible for about 90% of
carbon dioxide emissions.
Clinker is also a much easier material to
transport than cement with most global
trade occurring in this form.
Cement manufacture is predominantly
domestic, requiring access to mineral
resources most commonly found in
limestone, energy supplies and markets.
Demand shortfalls are made up from
imports of both clinker and cement.
Cement Australia’s approach to
greenhouse gas abatement begins at a
grassroots level: with our people; through
our operational processes; through a
focus on research and development; as
well as by sharing our knowledge and
skills across all of the communities in
which we operate.

Cement Australia: Committed to Sustainable Partnerships

In 2008, Cement Australia launched a
renewed carbon strategy, intended to
move the company to the reality of
operating in an emissions trading
environment.
The strategy incorporates the following
components:
A ‘Foundation’ level that embeds
knowledge and understanding of our
carbon footprint as a key requirement
of our personnel.
A pre-existing ‘Company Approach’
which describes Cement Australia’s
current cultural approach.
A ‘Strategic Approach’ which
incorporates three key pillars:
1. An ‘abatement and compliance
strategy’, which addresses the more
traditional abatement elements at
the levels of; operational excellence
or ‘getting the best out of our
existing plant and equipment’;
ensuring that best available
technology is in use where viable;
and increasing our involvement in
pursuing emerging technologies
largely through research,
development and demonstration
initiatives.

This strategy also targets the compliance
aspects of acquitting our liabilities within
an emissions trading environment, and
complying with the raft of new laws
relating to climate change and energy
efficiency.
2. A ‘stakeholder strategy’
intended to ensure we maintain
an appropriate focus on
communications at our broader
definition of stakeholders.
3. A ‘product strategy’ that aims to
influence both the carbon aspects of
the products that we make,
‘sustainable materials’, as well as
endeavouring to influence the way in
which our products are used,
‘sustainable construction’. It is the
case that, for the built environment,
only a small percentage of energy
and greenhouse emissions originate
from the construction materials
themselves. The way in which those
building materials are utilised will
have a far greater impact on lifecycle
emissions.

Cement Australia: Committed to Sustainable Partnerships

Our carbon emissions strategy is designed to get us ‘carbon ready’. It takes into
account the challenges of new government regulations and changing public
expectations, while aiming to improve our position as an industry leader.

The carbon house

Getting carbon-ready

Abatement and
compliance strategy

Vision

Stakeholder strategy

Guiding
principles

Must do’s

Product strategy

Brand
attributes

People (employees)
Capability and knowledge (measuring and reporting)

Colour
key

Foundation

Company
Approach

Strategic
Approach

Objectives

Cement Australia: Committed to Sustainable Partnerships

4,000

3,500

3,500
3,000
3,000
2,500
2,500
2,000
2,000
1,500

1,500

1,000

1,000

500

500
0

Sales of cementitous product (cement, fly ash, slag) ‘000s tonnes

4,000

process emissions from heating limestone

indirect emission from electricity use

emissions from fuel use (coal etc)

cementitious sales

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

Sustainable Performance:
Energy Efficiency Case Study
160

6.0

140
120
4.0
100
80

3.0

60
2.0
40
1.0

20
0

electrical efficiency

CSI Global Elec. eff. Data

thermal efficiency (GJ/t cli)

CSI Global Termal eff. Data

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

0.0

electrical efficiency (kWh/t cem)

5.0

1992

2. Through significant investment in process
technology and increasing market share of
supplementary cementitious materials,
Cement Australia has maintained emissions
at less than 1990 levels while increasing our
sales of cementitious materials to nearly
50%. We think this is a commendable
achievement.

4,500

1991

1. their source, which includes emissions:
from the limestone that we heat in our kilns
and which we refer to as “process
emissions” (the upper green area on the
graph. The dark purple area shows the
emissions associated with the use of the
coal used for heating the limestone and
which we refer to as “thermal emissions”.
The lowest mauve area represents the
indirect emissions associated with our use
of electricity.

4,500

1990

The first graph on the right highlights Cement
Australia’s absolute emissions of carbon
dioxide as well as our total sales of cement
and cementitious product. We report our
emissions by:

5,000

thermal efficiency (GJ/t cli)

Sustainable Performance:
CO2 Emissions Case Study

CO2 emissions from cement manufacture ‘000s tonnes

Case Studies

Cement Australia: Committed to Sustainable Partnerships

Cement Australia and Resource Conservation

Cement Australia is focused on
delivering increasingly sustainable
cement manufacturing operations to
future generations. One particular area
where the cement industry is able to
provide significant environmental and
social benefits is in resource conservation.
As a significant consumer of limestone
and coal energy resources, Cement
Australia is well aware of its environmental
footprint and the need to minimise this
wherever possible. Fortunately, the
cement manufacturing process provides
some unique co-processing opportunities,
and cement itself is able to capitalise on
some specific chemical symbioses that
occur with certain byproduct materials
More importantly, the business areas
deriving a return from principally
sustainability-related operations have also
improved, with EBIT from SCM activities
doubling since 2004, and our AFR
business improving from a $1.1M loss
in 2003 to a $5.7M profit in 2009.

AFR
Cement Australia has an active alternative
fuels and raw materials program that
utilises a spectrum of industry
by-products exhibiting either calorific
value or material replacement value, as
partial replacements for our traditional
fuels and raw materials.
At the fuels end of the material spectrum,
fossil-based alternatives provide tangible
resource efficiency benefits by reducing
the volumes of material ending up in
landfill, as well as conserving traditional
fossil fuel reserves for future generations
and extracting a beneficial use of
otherwise waste materials.
Cement Australia’s operations in
Queensland have pioneered our
alternative fuels program with between
15,000 and 20,000 tonnes of by-product
materials being safely converted to
energy each year; thereby providing a
sustainable outcome for materials
including used oils, spent solvents, wash
waters, resins, greases, waxes, paint and
ink among others.

Cement Australia: Committed to Sustainable Partnerships

SCM
At the alternative raw materials end
of the spectrum, the use of substitute
pre-calcined materials can and does
provide substantial reductions in our
overall greenhouse gas emissions.
Such materials include fly ash and various
steel industry slags, able to be utilised as
both raw materials and supplementary
cementitious materials (‘SCMs’), and of
which Cement Australia recycles well over
a million tonnes per annum – a major
recycler by any measure.
However, the far greater benefit from
these activities arises through the
significant carbon emissions abatement
that this creates. For every tonne of fly
ash or ground, granulated blast furnace
slag used, there is an equivalent reduction
of about 770 kg of carbon dioxide.
Conservatively, Cement Australia’s use
of SCM’s provides annually:
• a net greenhouse gas reduction of
approximately 770,000 tonnes of CO2;
• a reduction in the use of limestone raw
materials of about 1.52 Mt; and
• a reduction in the use of coal of about
120,000 tonnes.

For Cement Australia, this is a great
example of how a sustainable business
should operate. By exploring and
facilitating all opportunities to fully utilise
alternative fuels and raw materials, in our
product range, we are reducing our own
environmental impact, providing a
significant benefit to society in reducing
the amount of waste materials ending up
in landfill, creating a dramatic reduction in
the carbon intensity of our product – all
the while adding to the company’s
bottom line.

Cement Australia: Committed to Sustainable Partnerships

Case Studies
Sustainable Performance:
New bag filter at Railton
Railton’s Electrostatic Precipitators (ESP)
were installed in 1965 and 1980 and are now
outdated in their technology for de-dusting
cement kilns.
The limitation of this method is that it requires
the particulates to be conditioned at the
correct temperature and moisture for the
method to work.

However, once the temperature and moisture
levels departed from the optimum operating
conditions the Railton ESP would simply not
function adequately and large dust emissions
would occur.

The Solution
The newly installed technology passes the
exhaust stream through several heat tolerant
filter bags that are periodically pulsed with
air to loosen the filtered particulates into
a collector. Dust is then reinjected into
the process.

Apart from the greater efficiency of filter bag
technology at normal running conditions, bag
filters are also immune to condition changes
and will continue to operate even during kiln
start up and crash stops.

The Results
• The new Redecam was successfully
commissioned 21st October 2009 and
replaces two electrostatic precipitators
• All site stacks now serviced by modern
technology bag filters
• An 80% or greater reduction in measured
dust emissions has resulted since
commissioning
• No increased environmental plumes from
kiln starts, stops and trips and additional
benefits in small power savings and noise
emissions

Kiln Stack monthly dust emissions
350
300

mg/nm 3

250
200
150
100
50
0
01/01/2009

01/07/2009

01/01/2010

Cement Australia: Committed to Sustainable Partnerships
Megafauna
The animals that came after the dinosaur.

Megafauna

Mt Etna
The past is our key
to the future

The animals that came after the dinosaur.

Activity Book

a
M

rom: Amazing Facts About Australian Dinosaurs, published by Queensland Museum
blishing, 2006. Available from all good bookstores. RRP $14.95.
na illustrations: Paul Lennon© Queensland Museum

Sustainable Performance:
Mt Etna Project
Mt Etna was the scene of long battle
between conservationists and a company
purely focused on mining activities.
From the early 1980s until the late 1990s,
Central Queensland Cement (now Cement
Australia) and conservationists engaged in a
bitter and angry debate
that came at great personal and financial
cost to all parties involved.
Cement Australia recognised that an
opportunity existed to rehabilitate the
site and bring all the stakeholders together
on a project where everyone could bring
something to the table.

Background
In 1997 a unique partnership between
government, industry and the community
was formed. Cammoo Caves was jointly
purchased and donated to the Mt Etna
Caves National Park, along with an additional
gift of connecting land
by Cement Australia. The Mt Etna
Reconciliation Ceremony on
27 November 1999 marked the end of
the campaign. The caves handover signalled
a healthy change in direction.
Since then, Cement Australia has
invested significantly in further rehabilitating
the site, continuing to engage all
stakeholders and involve the broader
community, through the unique research
work being undertaken on Megafauna
remains found at Mt Etna.

Since 2004, this partnership approach has
proven extremely successful and the Mt Etna
rehabilitation combined with the Megafauna
project has contributed to strengthening of
stakeholder relationships.
In July 2009 the Mt Etna mining leases were
surrendered and discussions commenced to
allow the gifting of remaining company lands
to the Queensland Trust For Nature, to
ensure the ongoing protection of the area.

About Megafauna
Mount Etna’s fossil deposits preserve one
of the most comprehensive rainforest fossil
deposits on Earth, including dozens of
species of mammals, frogs, lizards and birds.
These are known as megafauna. Some of the
most exciting finds include the fossilised
bones and teeth of giant lizards, land
dwelling crocodiles, bulldog-sized ringtail
possums, giant tree kangaroos and
Australia’s largest frog! Many of the species
have modern living descendants in the
mountainous regions of Papua New Guinea
and North Queensland’s Wet Tropics
rainforests. Cave formations have sealed the
remains of these ancient animals within large
cave deposits. Scientists will use these cave
formations to date the fossil deposits and
determine how wet the rainforest was
millions of years ago.

Cement Australia Pty Limited
ABN 75 104 053 474

Head Office
Level 2, 40 McDougall Street
Milton QLD 4064
Tel: +617 3335 3000
Fax: +617 3335 3227
www.cementaustralia.com.au