2011 Sustainable Development Report
We believe that our business success depends upon our contribution to the economic, environmental and social well-being of our host communities. This site details our 2011 performance in these areas.
Welcome to Resolution Copper Mining’s 2011 Sustainable Development Report. We operate under the principle that our stakeholders deserve straightforward, accurate, transparent information about our project, particularly as it relates to our environmental, economic and social responsibility. We hope this report is useful to you.
At Resolution Copper, we believe that success in business entails much more than the financial bottom line. That belief leads us to establish targets and plans to guide our contributions to the economic, environmental and social well-being of our host communities. You will see our 2011 performance in these areas summarized here.
2011 Successes & Challenges
Resolution Copper continued to make progress toward developing the world’s third largest undeveloped copper resource. In the process, we made strong contributions to our host communities, including adding in excess of $13 million to the local economy through jobs, hiring local contractors and purchasing materials, goods and services.
Successes: Health & Safety
The safety of our employees and contractors is our highest priority and we invest heavily in training and processes to create and maintain a safe and healthy work environment.
We continually identify potential hazards across all work areas and groups and assess their possible risks to the health and safety of our employees, contractors, community and stakeholders, and the environment. Once the risks have been identified and ranked, appropriate actions are taken to eliminate or control them.
In 2010, we completed a comprehensive evaluation of the Resolution Copper site called a Semi-Quantitative Risk Assessment that allows us to develop action plans to reduce the risk of potential known hazards. In 2011, we continued to close out actions identified in that assessment, achieving an additional 15.6 percent risk reduction.
Successes: Community Involvement
We invested approximately $80,000 in 2011 in schools and students in the Copper Triangle area. We partner with schools to promote interest and excellence in math, science, technology and engineering - all critical skills for our future workforce.
We continued our communication via social media in 2011 as part of our ongoing effort to reach stakeholders wherever they seek and receive information. This included blogs, Facebook, Twitter and YouTube along with interactive options dedicated to educating stakeholders about the Resolution project.
We hosted three community information sessions and various other events on topics of concern to local stakeholders. These sessions were well-received and well-attended.
We continued to work with our Education Advisory Committee, a group we launched in 2010, to ensure the ongoing success of our education initiatives and to identify education programs and opportunities at elementary, secondary, trade and university levels that support the development of a sustainable workforce. Through this effort we applied for and were granted $199,000 through The National Science Foundation to provide dual credit geoscience courses to high school students who attend Copper Triangle schools.
In 2011, the first segment of the Legends of Superior Trail was officially opened to the public. The segment offers four miles of walking, biking and equestrian trail which begins just west of Superior and ultimately connects with the Arizona Trail near Boyce Thompson Arboretum. The trail’s development is the result of our ongoing partnership with the Arizona Trail Association in collaboration with the US Forest Service and Town of Superior.
By year-end 2011, we had delivered nearly 2 billion gallons of treated underground mine water from the closed Magma Mine to the New Magma Irrigation and Drainage District for crop irrigation – 778 million gallons in 2011 alone.
Additionally, we initiated and completed reclamation work on the historic #3 and #4 tailings impoundments, restoring them to more of a natural state. This area was impacted by the former Magma Mine operations on property that is in proximity and highly visible to the Town of Superior. We also:
• Continued regional hydrology studies and additional work to develop a sustainable water plan.
• Maintained ISO 14000:2004 certification and regulatory compliance through independent audits and inspections.
• Continued involvement with organizations that protect and preserve the environment and the species that populate Superior-area lands. These include support and participation with the Arizona Trail Association, Audubon Arizona, Boyce Thompson Arboretum and Lower San Pedro Working Group.
• Enhanced our Health, Safety and Environmental Management System (HSE MS). It features a new methodology and a structure consistent with common international standards. The HSE MS was successfully audited in 2011 to ensure conformity and compliance with Rio Tinto’s practices.
• Recycled 1,724 tons of scrap metal and other material and sponsored and participated in community-wide cleanup events.
Wages and salaries totaled $9.7 million in 2011.
We spent approximately $128.5 million on materials, goods and services, including $9.6 million in Superior and the Copper Triangle area.
In 2011, we contributed $620,299 in support of our host communities and partnerships as part of established emergency services and other agreements, philanthropy and educational efforts.
Successes: Land Exchange
Passage of the land exchange legislation is critical to the advancement of the Resolution Copper project. We are committed to securing passage to ensure that local and regional communities and the state do not lose the full economic and social benefits the project will provide.
The legislation will give Arizonans more than 5,300 acres of high value conservation lands in exchange for 2,400 acres of federal land Resolution Copper needs to move forward with the mine.
It is a powerful job stimulus bill, ensuring thousands of new jobs with no incentives or taxpayer investment.
On May 11, 2011, Congressmen Paul Gosar introduced HR 1904 into the House of Representatives. The legislation, substantively the same as versions of the bills introduced in earlier Congresses, received House approval on October 26, 2011 and currently is in the Senate.
Challenges: Health and safetyThe safety of our employees and contractors is our highest priority.
2011 was a challenging year in safety on several fronts. One of our contractors was seriously injured in a shaft-sinking incident, and we experienced eight recordable injuries, giving us new resolve to work safely.
We also experienced an increased number of minor safety incidents over our 2010 numbers. Nothing is more important to our project than the safety and well-being of our workforce. We continue to steadfastly maintain and improve our safety procedures and safeguards to prevent further incidents.
Challenges: EmploymentOur local hire rate was 36 percent in 2011. We did not achieve our 40 percent local hiring goal due to the need for highly specialized workers for our
pre-feasibility work and environmental testing.
We welcome your input and feedback. For more information about sustainable development at Resolution Copper, contact:
Bruce Richardson, Communications Director