Management Systems

HSEC Management Protocols and Guidelines

Audit and Self-Assessment

Risk Management

Product Stewardship

Product Stewardship

Product stewardship is a principle that suggests that all involved in the life cycle of a product should take responsibility for the impacts to human health and the natural environment that result from the production, use and disposal of the product. Those primarily involved in the life cycle of a minerals product typically include the mining operation, the primary and secondary minerals processing facilities, manufacturers, retailers, consumers and governments. While the physical and chemical nature of metals ensures their infinite recyclability, we are working with commodity organisations to address life-cycle and product-stewardship considerations.

Material safety data sheets (MSDSs) are required for our products, identifying potential health, safety and environmental aspects associated with their use. Please contact the Company if you would like a copy of an MSDS for any of our products.

The Company has had an HSEC Management Standard dealing with product stewardship since the establishment of the Standards in 2001. The intent, as stated in Management Standard 12, is to promote ‘The responsible production, transport, storage, use, recycling, and disposal of BHP Billiton products and by-products ... to minimise their life cycle HSEC impacts’. This intent statement is supported by seven performance requirements. To this end, we set a Company-wide target that life cycle assessments (LCA) be prepared for all major minerals products by 30 June 2004.

During the reporting period, in line with this target, LCAs were completed for copper, nickel, iron ore, aluminium, metallurgical coal, manganese and thermal coal. The LCA studies were conducted through research institutes and academia and in conjunction with commodity and industry associations such as the International Aluminium Institute (see www.world-aluminium.org/iai/publications/documents/lca.pdf), the International Copper Association and the Nickel Development Institute (see www.nickelinstitute.org/index.cfm/ci_id/114.htm).

The global Green Lead™ project (see www.greenlead.com), as reported in our 2002 and 2003 HSEC Reports, is an initiative of the lead industry. Our Base Metals CSG is actively involved, primarily through the Cannington silver/lead/zinc operation in north Queensland, which initiated the project. The vision of the Green Lead™ project is to independently certify that producers are applying best practice to all aspects of the product life cycle – mining, processing, transporting, treating, manufacturing, storing, using and recycling. A group of foundation project partners, representing industry stakeholders involved in mining, smelting, manufacturing and recycling, is involved in implementing the project.

In addition, our Diamonds business is a member of the Kimberley Process Certification Scheme, an international diamond certification scheme aimed at halting the trade in ‘conflict diamonds’.

Consumer health is also of growing importance to us, and we are involved with industry associations in progressing initiatives in this area. For example, we are currently working with the Nickel Development Institute in relation to the proposed EU Chemical Policy, which will require industry to demonstrate that ‘chemicals’ (which includes metal in this context) are safely produced and managed through their life cycles.

There is a need to better understand the product stewardship agenda, its key drivers and its implications for the resources sector and our key businesses. Within this context, we need to better define product stewardship, determine the status of our products and begin a discussion as to what the appropriate positioning for the Company and our core businesses should be. This will be a focus for the coming year.

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