Sustainability

Sustainability at London Mining

Sustainability vision and framework presentation

Recognizing the importance of sustainability

As we continue to develop our mining assets, we are ever more aware of how important sustainability is to our operations. It is at the heart of how we develop a lasting business, make a long term contribution and deliver value.

We are looking to the future and how we will live and work together with the communities and organizations around our operations now and in the years ahead. We recognize the importance of exploring fully all the options that will enable us to meet our long term responsibility for our resources and surroundings. This genuine commitment to sustainability is a key part of the way we will contribute, endure and prosper.

We carefully manage the environmental, economic and social dimensions of our operations to ensure sustainable outcomes. Healthy environments provide the foundation for vital goods and services. Sustainable economics support future financial actions. Social sustainability reinforces the acceptability of our operations to local and global communities. We also focus on the health, safety and environment  aspect of our mining operations. We manage this as a separate area of sustainability as we recognize the importance and specific requirements of keeping our workforce safe and able to continue their daily tasks.

Developing and implementing a sustainability framework for London Mining

In 2011 we appointed Claude Perras as Head of Sustainability. The purpose of his role is to develop a Group-level sustainability vision, framework and governance process. The framework will enable us to provide greater oversight and, in turn, control of our resources at both corporate and project levels. It will also increase our ability to predict and deal with both risk and opportunity, while maintaining the drive and focus of the individuals and teams around the world.

We have begun to implement the framework by putting into practice reporting systems at all sites and developing policies to help our employees ensure all actions are in line with Group strategy. The proposed governance structure will consist of a Corporate Sustainability Advisory Committee, with members from the Board and representatives from civil society. A similar advisory committee will also be established in each country of operations.

Developing and implementing a sustainability framework for London Mining

In 2011 we appointed Claude Perras as Head of Sustainability. The purpose of his role is to develop a Group-level sustainability vision, framework and governance process. The framework will enable us to provide greater oversight and, in turn, control of our resources at both corporate and project levels. It will also increase our ability to predict and deal with both risk and opportunity, while maintaining the drive and focus of the individuals and teams around the world.

We have begun to implement the framework by putting into practice reporting systems at all sites and developing policies to help our employees ensure all actions are in line with Group strategy. The proposed governance structure will consist of a Corporate Sustainability Advisory Committee, with members from the Board and representatives from civil society. A similar advisory committee will also be established in each country of operations.

Planning for the future

Our priorities for 2012 are to understand where we are and where we want to be, by consulting our shareholders, employees, communities and other key stakeholders. To realise this goal we will review the main sustainable development trends in the mining sector and identify best industry practices.

In doing this, we will align ourselves with our peers and identify where we are currently performing well and where we need to improve. We will use this clear understanding of our current position as a foundation to define future action – choosing strategic priorities and concrete actions to realise our vision and address social expectations while upholding our commitments to sustainability and international standards.

Our vision is to maximise value for all stakeholders and to become a top 10 supplier to the steel industry within the next five years. We will do this through partnerships that create an environment conducive to investment and ensure local economic, environmental and social conditions are improved through our operating presence.

Globally, we face a number of challenges:

• Increased shareholder and stakeholder activism;
• A greater connection between grassroots NGOs and international movements;
• Increased competition due to globalisation;
• Greater capital and credit constraints leading to risk aversion from global financial institutions; and
• Growing resource nationalism, putting at risk new mine development which requires long term capital commitment.

Differentiation in today’s commodity markets comes from being the Company of choice globally.

In order to improve financial return, as well as mitigate the potential strategic threats posed by these challenges, we will work to embed sustainability in our core global business.

We plan to:

• Leverage partnership funding and expertise to ensure sustainability projects are collaborative;
• Ensure sustainability is embedded within future business development projects and current capital investment projects in its regions;
• Ensure that all sustainability indicators are jointly agreed upon, monitored and evaluated with key stakeholders; and
• Partner with organisations that appreciate cross-sectoral collaboration as opportunities for value-creation