Environment Policy

Bougainville Copper Limited (BCL) follows the Rio Tinto policy that wherever possible we prevent, or otherwise minimise, mitigate and remediate, harmful effects of the Group's operations on the environment.

Excellence in environmental performance is essential to BCL's business success. Compliance with all environmental laws and regulations is the foundation on which BCL builds its environmental performance. BCL supports and encourages further action by helping to develop and implement internationally recognised management systems and voluntary commitments.

BCL similarly approaches a comprehensive understanding of the full life cycle and safe use of its products to ensure all its benefits are delivered.

BCL develops wide standards and builds systems to identify, assess and manage environmental risk. These apply at each stage of exploration, development, operation and closure, as well as in acquisition and divestment evaluations, to achieve continuous improvement in environmental performance. BCL also engages with host communities, governments, customers, suppliers and others to the same end. BCL obtains assurance on the implementation of our environmental policy, both internally and externally, by regular audits, reviews and reports. BCL produces a separate social and environmental report for its local communities.

Bougainville

Disturbance to the physical environment is inevitable with the establishment of an operation the size of BCL in a rugged mountainous area. During the construction phase of the project, from 1969 to 1971, the first significant environmental disturbance occurred in Bougainville . Preparation of the mine site involved the clearing of about 1,200 hectares of tropical rain forest and removal of about 18 million cubic metres of volcanic ash and weathered rock. The construction of the Port-Mine access road over a 1,000 metre high mountain range involved removal of a further 13 million cubic metres of material.

The principal ongoing environmental impacts are the disposal of about 100,000 tonnes of tailings per day into the westward flowing Kawerong/Jaba river system and the dumping of an approximately equal quantity of waste rock.

BCL maintained an active environmental group from 1969. The group consisted of scientists and engineers with expertise in the fields of hydrology, marine biology, revegetation and chemistry. The majority of the current environmental research was aimed at obtaining an understanding and thereby minimising the impact of the tailings disposal system on the environment.

BCL continually monitored and investigated the environmental implications of all aspects of its operation. A staff of 32 were employed full time on this work. Other staff were engaged in providing support services for this group, particularly in the areas of chemical analyses of environmental samples, computer processing of data and helicopter transport. The physical, biological and social impacts of the operation were progressively identified and defined. Based on these findings, measures to minimise and contain environmental stresses were developed.

BCL commenced its hydrological and hydrographic monitoring in 1969. The deposition of tailings in the river system and Empress Augusta Bay was monitored regularly using data from bathymetry, sediment sampling and cross section surveys. This information was used in conjunction with meteorological and hydrographic data from stations maintained by BCL.

The major studies were concerned with quantifying and predicting sediment transport rates, conducting revegetation trials on dumped waste rock and deposited sediments and determining the effects of marine life. Grasses, reeds and trees were established naturally on the tailings delta at the mouth of the Jaba River . By systematic planting BCL introduced a greater range of mangroves than that colonising naturally.

Constant monitoring of tailings waste disposal and plant effluents was carried out by BCL in consultation with government representatives. In 1974 research work was directed towards the revegetation of the dump and tailings areas. Tests revealed the tailings material to be deficient in three nutrients – nitrogen, phosphorus and boron. All of which were supplied by adding conventional fertilisers. A wide range of grasses, legumes and trees were grown successfully in tailings in both greenhouse and field trials. From this research, forest development had been selected as the prime objective in tailings reclamation. This development was a multispecies forest using mainly local trees.

The agronomy research project was initiated in 1973. Research demonstrated that revegetation of the tailings deposition areas and waste rock dumps was feasible, provided the correct application of fertilisers was maintained. Revegetation of affected areas began as soon as the land was no longer required for storage of waste material.

A marine and fresh water biological research program was initiated in 1976 to investigate the effects of the operation on the aquatic environment. Research showed that there were no significant changes as a result of mining operations.

In 1981 the initial phase of a research program to investigate the long-term effects of tailings disposal on the environment was completed. This led to the purchase of a dredge for tailings reclamation trials. Scientific research continued into aquatic and revegetation aspects associated with tailings disposal. It is worth noting that at that time the Port-Mine access road cuts had recovered to the extent that, for most of the road, the disturbed areas were well vegetated with native species.

In 1983 an active noise control and hearing conservation program was established. This involved the recording and analysis of an extensive number of noise levels, and audiograms were taken and analysed.

In 1987, following an environmental impact study on tailings disposal, approval was obtained from the Papua New Guinea Government for a ‘Disposal of Tailings and Fine Overburden Agreement'. This agreement incorporates the installation of a 31 kilometre tailings pipeline at a capital cost of K65 million.

Current

Mining operations of BCL ceased in 1989 and it has been denied access to its mine site because of the civil disorder since that year. BCL is not aware of any liability being incurred under any environmental legislation.