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operations and offices throughout the world. Total assets were $11 billion at year-end 1999.
Noranda is one of the WORLD’S LARGEST PRODUCERS of zinc and nickel and a significant producer
of copper, primary and fabricated aluminum, lead, silver, gold, cobalt and sulphuric acid. It is also a
MAJOR RECYCLER of secondary copper, nickel and precious metals. Noranda sells commodity, value-added
Noranda is a Canadian company whose common shares are listed on The Toronto Stock Exchange (NOR).
Note: All figures are in Canadian dollars and all measurements are metric unless otherwise noted.
This report contains information on Noranda’s wholly-owned operations and its joint venture companies. Detailed sustainable development information for Falconbridge Limited (of which we
own 49.9%) can be found in Falconbridge’s 1999 Sustainable Development Report. For details on how to receive a copy, see the inside back cover.
1999 SIGNIFICANT EVENTS
• Noranda achieved high standards of compliance on air and • Noranda adopted a Code of Ethics in an effort to formalize
water emissions. Overall air compliance was 99.97% and water the Company’s commitment to act ethically whenever and
compliance was above 99.99%. wherever we do business.
• Overall sulphur dioxide emissions were 189,422 tonnes and • The Altonorte copper smelter in Chile was recognized for
metal emissions were 615 tonnes, of which 572 tonnes (93%) its community involvement and social and environmental respon-
was to air and 43 tonnes (7%) was to water. sibility when it received the first annual Norte Minero award.
The smelter’s outreach effort earned considerable praise from the
• There were four work-related fatalities; one involving an
employee at the Brunswick mine in Bathurst, New Brunswick, local community.
and three involving employees of contractors at the Antamina • Heath Steele mine and Mines Gaspé closed due to the depletion
project in Peru. of economic ore reserves. Both facilities are working closely with
employees to assist them in retraining and job searches.
• Noranda joined with many of the world’s largest mining and
metals companies to form the Global Mining Initiative, an • Noranda has initiated two programs to transfer best practices
organization whose main goal is to encourage an independent in accident prevention. The aim is to drive continual improve-
and authoritative analysis of issues regarding mining, metals ment of safety results by instituting, tracking and reporting new
and sustainable development. preventative measures.
In keeping with our intention to report on Noranda’s progress toward sustainable development, we have changed the format
of our report. This year, the main body of the report is organized in three sections (Environment, Social and Economic)
to represent our approach to sustainable development. Within those sections, information is listed according to our eight
sustainable development indicators.
Our performance – both achievements and shortcomings – is further organized according to Noranda’s main operations:
Copper, Recycling, Zinc, Aluminum, Magnesium and Antamina.
A fourth section follows and covers our management framework: our approach to risk management, our progress
i
on Responsible Care, our auditing program, emergency preparedness, spills and releases, legal issues
and other information.
www.noranda.com
We have changed the location of some of our INFORMATION this year. For those interested in viewing
site-specific data, our glossary of terms and detailed contact information for Noranda’s operations, we have
located this data and comparisons on our Web site. These can be FOUND at: www.noranda.com. The icon is
used THROUGHOUT THE REPORT to let you know where you can access our Web site for more information.
MESSAGE TO STAKEHOLDERS
2 Noranda – 1999
ANTAMINA There will be no compromises in our safety, mining as an outdated industry whose
When production begins at the Antamina health and environmental performance products are no longer necessary. We must
mine in Peru in 2001, it will operate with a through our efforts to realize improvements emphasize the pivotal role of mining
complete management framework for envi- in efficiency and effectiveness. in the future, and of metals as essential con-
ronment, health and safety, and for social Among Noranda’s most important tributors to building infrastructure and
activities. Compañía Minera Antamina ongoing environmental challenges is the supplying materials that contribute to the
(CMA) will apply the same rigorous stan- achievement of our SO2 and heavy metal transformation of the global economy.
dards we maintain at our North American emissions targets. We have committed As society seeks to conserve resources and
operations, and we have every reason to to reduce SO2 emissions by 57% by 2002 reduce both extraction and consumption
believe that Antamina will not only be a from baseline levels in 1985. With metal of fossil fuels, our industry has an unparal-
productive mine, but an extremely safe one. emissions, our target is an 80% reduction leled opportunity to reposition metals as
In 1999 CMA’s community and envi- from 1988 levels by 2002. materials of choice for durable, reliable and
ronmental work was recognized at an safe products. The superior recyclability
international symposium organized by the GREENHOUSE GAS REDUCTIONS of metals can reduce waste production and
Universidad del Pacífico of various NGOs As a nation, Canada has committed to the strengthen our business, and with the right
and CONFIEP, Peru’s largest private-sector Kyoto Protocol, an international agreement policies in place, metals should enjoy a
business organization for entrepreneurs. that calls for a 6% reduction in greenhouse clear advantage in the marketplace.
The award took particular account of the gas emissions by 2008 to 2012 based on In this, Noranda’s tenth year of reporting
environmental monitoring done during 1990 levels. With much of Canada’s emis- on environment, health and safety issues,
road construction along the shore of Lake sions coming from non-industrial sources we have made a great deal of progress, but
Canrash, and the financial support provided like heating and automobile exhaust, have much more work ahead of us. Sustain-
by CMA for local businesses, social initia- Noranda’s role could be difficult to deter- able development relies on continuous
tives and community development. mine. We continue to search for and imple- improvement. As our environment, health
ment cost-effective measures that reduce and safety management framework con-
SIX SIGMA greenhouse gas emissions and energy costs. tinues to be integrated into all operations,
During 1999, Noranda introduced Six On the international stage, the concept and we focus intently on preventing
Sigma, a rigorous, statistically oriented pro- of “carbon trading” is gaining currency. accidents and improving mine safety, all our
gram for eliminating organizational defects Carbon trading would enable a company employees will be asked to contribute.
and increasing operating efficiency. While that makes significant reductions to “sell” We have come a great distance in ten years
our primary goal is to improve economic its excess “capacity” to another company thanks to their collective willingness
margins and profits, Six Sigma will also have that cannot achieve reductions. Noranda to make Noranda a leader in this field.
environmental and safety benefits through is watching closely as the merits of this Based on that track record, we have every
the elimination of process defects. concept are debated. confidence that our goals and targets
Notwithstanding this focus on profit, will be met.
Noranda remains committed to maintain- METALS AND THE ENVIRONMENT
ing and improving its standards of safety, Another international issue of concern
health and environmental responsibility. is market access. Our efforts must focus on
correcting the misguided perception of
DR: WHY HAS THIS GROUP BEEN be delivered in ways generally considered DR: WHAT DO YOU HOPE TO ACCOMPLISH?
FORMED? acceptable? How can the benefits be more RS: Ultimately, the project is about building
RS: The goal of the Mining, Minerals and
equitably spread? Can best practices apply greater trust between the industry and
Sustainable Development (MMSD) project to all companies? Is the restricted access its critics. Trust-building involves dialogue,
is to identify how mining and minerals to minerals in certain markets based on understanding different points of view,
can best contribute to the global transition sound criteria? How can mining take a and admitting that not everything was as
to a sustainable world. The project was more sustainable path? The ultimate ques- it should have been in the past.
initiated by the World Business Council for tion, of course, is why mine at all? There are three key reasons for reviewing
Sustainable Development (WBCSD) on To many the very idea of using the entire mining sector so comprehensively.
behalf of a group of leading mining corpo- non-renewable resources is the essence of First, the industry cannot proceed if there
rations, and forms part of the wider Global unsustainable activity. But sustainable is no “license to operate” from society.
Mining Initiative (GMI). The intention development has to consider different types That depends on society having confidence
of the group is to spend two years research- of “capital stock” – natural, human, that mining companies are not destroying
ing and preparing a report for the proposed manmade – and how we transform one the environment, disrupting communities
Earth Summit in 2002. into another. where they operate, or causing health
problems. Second, there is much misinfor-
DR: WHAT ARE SOME OF
DR: WHAT KIND OF RESEARCH mation about the industry. We hope
THE CHALLENGES?
WILL BE DONE? to provide an objective and comprehensive
RS: A major challenge will be to talk to appraisal that’s overseen by credible third
RS: The mining sector generally has a poor
environmental reputation, based largely a widespread cross-section of stakeholders. parties. Third, there is a need for change.
on historical transgressions and recent tail- The term is vague. Potentially, it includes Many of the needed changes are occurring
ings dam accidents. Yet people all over many people inside and outside the industry, at leading companies. They have to happen
the world enjoy the benefits of mining and including the non-governmental community: throughout the industry. This kind of
mineral production. MMSD will try to trade unions and associations, academics, project tends to encourage consensus and
answer a number of questions that reconcile those who finance the industry, those who catalyze positive change.
these two opposing positions. regulate it, people who live near mines
For example: How can the legacy of the and smelters, and many others. MMSD’s For more information on this project,
past be put right? How can the benefits objective is to gather the perspectives and please go to www.iied.org/mmsd
of mining and metallurgy continue to issues that each interest group considers
important and to begin the process of
defining how such issues can be addressed.
4 Noranda – 1999
SUSTAINABLE DEVELOPMENT
Noranda Inc., through its Environmental Policy, is formally committed to the principles of sustainable development. But like most
industrial companies, our operations have an impact on the Earth’s resources. We believe our responsibility is to continually try to
minimize it while improving our performance on all levels that affect our business and our stakeholders: safety, environmental, health,
economic and social.
Society needs metals. That fact is the foundation of Noranda’s business. While minerals are nonrenewable, they are also an
abundant resource – perhaps limitless, as exploration techniques continue to improve. And most metals can be recycled repeatedly.
Recycling extends the efficient use of metals, reduces environmental pressures associated with waste disposal and saves energy.
But as populations continue to grow, recycling alone will never be adequate. Mining and metallurgical companies like Noranda
must keep mining and processing metals. The challenge – and the obligation – is to do it in the most responsible manner possible.
Our Sustainable Development Principles commit our Company to:
10 th
A Decade of Reporting – 1999 marks the tenth anniversary of Noranda’s
environmental reporting. In 1990, we were one of the first mining companies in
the world to report on environmental performance. In that initial rudimentary
version, we confined our coverage to environmental issues only. Subsequent
year
reports added health and safety. Today, in keeping with the expectations of our
stakeholders and the public, we publish a sustainable development report
that extends the reporting to social and economic performance. As a company
that believes in transparency and the sharing of information, we will continue to
evolve our reporting to reflect the world’s growing understanding of sustainable
development and corporate responsibility.
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MAP OF OPERATIONS
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6 Noranda – 1999
ENVIRONMENT
Noranda is committed to minimizing the physical, chemical and biological effects of our activities on
the environment. We do this in a number of ways. Our operations are equipped with advanced technologies
to curtail pollutants such as sulphur dioxide and metals. All are compliant or virtually compliant with
government environmental regulations. To meet our pollution reduction targets and bring our operations
up to the highest standards of performance, we continue to invest in the best technologies available. Our
operations are governed by comprehensive and regularly audited management systems designed to
prevent environmental degradation of any kind, and to maintain an awareness of environmental responsibility
among all employees. Through employee training, we promote an on-the-job ethic of environmental
excellence that tends to be passed on into the communities in which we do business. We are major recyclers,
reclaiming thousands of tonnes per year of reusable metals at our smelters and refineries, thereby reducing
the environmental pressures associated with metal wastes as well as saving energy. Through our research
and development efforts at the Noranda Technology Centre and with many partners, we continue to search
for better solutions to pressing environmental issues such as global climate change and the effects of
Reduction of SO2 emissions continues to be one of Noranda’s greatest challenges. Major capital expenditures have been made to reduce
emissions. Our target is for our Canadian operations to achieve 90% capture by 2002, a 57% reduction from the 1985 release level.
Noranda has set the same goal of 90% capture for the Altonorte smelter in Chile.
$35 million over the next two years making Due to recent improvements in concentrate
300
modifications to the acid plant and other injection and acid plant performance, as
equipment used in the smelter process. well as the addition of a third converter, the
200
A work group was formed to ensure that Gaspé copper smelter achieved its second-
the fugitive emissions of SO2 that periodi- lowest level of SO2 emissions since 1984. 100
cally escape into the ambient air at Rouyn- With an overall sulphur fixation rate of
Noranda are reduced. 80.23%, this indicates a 35% improvement 0
1985 1990 1995 1999 2002
since 1995. A Noranda team is currently target
During the mining, smelting and refining processes, particulate metals are attached to the gases emitted to the atmosphere
or discharged in the water effluent. Noranda previously committed to reduce total emissions of arsenic, cadmium, lead, mercury
and nickel from its Canadian smelters and refineries by 80% from 1988 levels by 2008. We are striving to meet or surpass
that target by 2002.
Performance ZINC
Brunswick smelter METALS DISCHARGED
TO AIR AND WATER
COPPER & RECYCLING During 1999, the Brunswick smelter reduced
(tonnes)
CCR refinery its fugitive emissions of lead and other
3000
The refinery increased its capture of sele- metals, thereby reducing the exposure of
nium in liquid effluents to 70% in 1999 employees, through four initiatives. The 2500
from 30% in 1998. Currently not formally smelter’s silver refinery was modernized
regulated by government, selenium is at a cost of $7 million, replacing older, 2000
citizen complaints in 1999 about selenium in the lead refinery, enhancement of lead Air Water
“dusting” episodes. pumping, and the installation of new Our total metal emissions for 1999
were 615 tonnes, a 17% reduction
ventilation hoods in the copper dross plant.
from 1998 levels. Most of our emissions
Horne smelter
(93%) are to air. Our target is to
By modifying its induction furnaces with CLOSED MINES achieve a 60% reduction in emissions
the installation of a fume ring at a cost by 2002 from 1990 levels.
Brenda mines
of $250,000, the smelter will eliminate In 1998 we reported that a local citizens’
periodic episodes of black smoke emissions group had launched a second appeal against
containing metals and various organic the water discharge permit for Brenda was resolved and a Consent Order was
compounds. mines, located in the southern interior of approved. The Order increases the maxi-
The neighbourhood known as Notre British Columbia. The water treatment mum authorized rate of discharge and
Dame surrounding the Horne smelter has plant, opened in 1998, uses a state-of-the- the average rate of discharge, and limits the
long endured periodic fugitive emissions art process to reduce the molybdenum in concentration of molybdenum. Noranda
of SO2 and dust from a small stack. An the wastewater before it is discharged into also agreed to conduct a study of mule deer.
additional $1 million was invested in 1999 a local creek. During 1999, the appeal The treatment plant operated as expected,
(on top of $3 million already committed with molybdenum levels well below the
to the project) to channel secondary gases permit levels.
into a new baghouse. By doing this, the
smelter will reduce dust emissions to the
surrounding Notre Dame neighbourhood.
10 Noranda – 1999
ENERGY CONSUMPTION
Energy use is an indicator of operational efficiency and a measure of greenhouse gas emissions. Through the Canadian Industry
Program for Energy Conservation (CIPEC), Noranda committed to improve energy efficiency (energy consumed per unit of production)
at our Canadian operations by 1% per year between 1990 and 2000. We continue to search for cost-effective means to further reduce
greenhouse gas emissions and energy costs.
Sharing the Power – The Aluminum group’s New Madrid smelter has found a
way to “share” its massive electricity allotment with other users while earning a
premium economic return. The New Madrid smelter is the largest single consumer
of electricity in Missouri, with a monthly bill of approximately US$6 million.
During an extreme heat wave in the summer of 1999, the company worked with
its electricity supplier, Associated Electric Cooperative, Inc., to reduce the power
on three of its potlines during periods of peak usage so that Associated could redirect
the electricity to other users who were close to running out. During one day in
July, for 20 minutes on each of the potlines, Associated reclaimed 110 megawatts of
badly needed power – about 25% of the Aluminum group’s normal consumption.
While the smelter’s production dropped slightly, temperatures in the potlines
were maintained.
SOCIAL
Noranda is committed to preventing adverse health effects for our employees and the communities in
which we operate, and to promoting safe use of our products by our customers. We have a comprehensive
program for identifying risks of any kind at all in our workplaces, and are committed to immediately
mitigating any risks we discover. We believe in continual and constructive dialogue with members of
the communities in which we work and, to encourage that dialogue, we support citizens’ committees with
a mandate to be watchful of our conduct and our operations on behalf of their peers. We listen to their
concerns and act upon issues that need to be resolved. Cultural considerations are a high priority wherever
we work, as are the aspirations of our employees and their families. We offer economic benefits, skills
training and career opportunities during the time we operate in any community, and alternative job training
and placement services when we close operations, such as mines, that are no longer economically viable.
CONTINUING RESPONSIBILITY
CODE OF ETHICS demands it. Solid ethics are essential to experience, and the Learning Partnership,
In an effort to formalize the Company’s any corporation’s reputation, and a good a non-profit organization which creates
commitment to act ethically whenever and reputation is critical to the success of learning and career opportunities for young
wherever we do business, Noranda has our business. The Noranda Code of Ethics Canadians.
developed a Code of Ethics. As a global was developed by a task force of employees, Our employees are also active volun-
mining and metallurgical company, we and outside groups were consulted for teers in their communities, and Noranda
cannot afford to operate without a strong their guidance. It covers three areas of supports their efforts through a gift-
code of ethics. First, our code is intended responsibility. A summary of the code appears matching program.
to clarify for our employees and partners on the inside back cover of this report. The Company also recognizes the impor-
what ethical conduct entails, and it gives tance of education, and has contributed
our partners a clear statement of our inten- DONATIONS AND SPONSORSHIPS toward the endowment of chairs, scholar-
tions. Secondly, it’s a competitive necessity. Noranda’s operations contributed more ships and research projects at universities
A clearly articulated ethical stance may than $2 million in 1999 to their communi- across Canada, the most recent being the
result in Noranda being selected over com- ties to support environment, health and Chair in Analysis of Toxicological Human
peting companies by customers, partners education initiatives. Noranda also collab- Health Risks at the University of Montreal,
and governments considering mineral orates with national initiatives such as established in March 1999.
development projects. Thirdly, the public Career Edge, an internship program which
provides graduates with practical work
12 Noranda – 1999
MINIMIZING OUR FOOTPRINT
Mining activities are inherently disruptive to the land. Noranda tracks the area of land currently disturbed, new land disturbed
and land restored each year, keeping in mind that there will always be a certain portion of disturbed land in active use.
A total of 6,566 hectares of land has been Mines Matagami Waste Management
disturbed to some degree by our activities. Mines Matagami conducted considerable
Approximately 1,452 hectares were restored, environmental restoration work in 1999, ZINC
with the remaining land still in use or in the including restoration at several small Brunswick smelter
process of reclamation. The Company has closed mine sites. A total of 27 hectares In 1999, the Brunswick smelter processed
completed reclamation planning for all was reclaimed. This included sampling approximately 17,500 tonnes of lead-
active mining and milling sites. Since 1987, and chemical analysis of groundwater, bearing sludge and dust accumulated on
Noranda has spent more than $309 million restoration of ground contaminated by its property. By using these materials as a
on closure and reclamation activities, hydrocarbons, excavation and confinement partial replacement for concentrate, the
including $33 million in 1999 alone. Finan- of waste rock that is generating acid, and smelter intends to process the full accumu-
cial provisions have been made annually revegetation and reforestation. lation within the next seven or eight years.
since 1989 against earnings to finance future
closure and reclamation costs. The unutil- MAGNESIUM ALUMINUM
ized provisions now total $249 million. Magnola Metallurgy American Racing
A state-of-the-art containment pond has In July, American Racing installed an
been constructed for the iron/silica residues ultrafiltration system at Plant #1 at Rancho
Performance that will be produced as a byproduct of Dominguez, California. The system filters
Magnola’s process. The double-lined pond oil, bacteria and solids from spent machin-
COPPER & RECYCLING consists of a 30-centimetre layer of a mixture ing coolant to control odours and reduce
Mines Gaspé of fine sand and bentonite, and is lined with operating costs. The amount of new coolant
At a cost of $60,000, ten hectares were a 2-millimetre high density polyethylene needed has been reduced by 40%, waste-
revegetated on Tailings Dam #2 at the membrane double-welded at its seams. water is down from 363,000 litres per
Gaspé smelter in 1999 as part of the smelter’s The residues will also contain traces month to 68,000 litres, and tooling life is
reclamation initiative. Another 50 hectares of chlorinated hydrocarbons that will be extended. Wastewater containing oil and
are scheduled to be seeded in 2000. controlled within the basin and stored grease is currently shipped off-site to a
under a water cover. permitted treatment, storage and disposal
ZINC facility. The company plans to install a
ANTAMINA
Brunswick smelter wastewater treatment unit in June 2000
In 1999, to help improve the population In 1999, during road construction along for recycling hydrocarbons.
of lobster larvae and juveniles, smelter the shore of Lake Canrash about 35 kilo-
employees deposited more than 400 wire metres from Antamina, soil erosion may Norandal
mesh cages filled with seashells that have affected trout habitat. Erosion and Through the Huntingdon rolling mill’s waste
will form artificial reefs for the protection sedimentation control structures were recycling program, more than 200 tonnes
of young lobsters. strengthened and geotechnical consultants of scrap aluminum, 60 million cubic metres
engaged to develop a permanent solution of water, 3.5 million pounds of dross and
for this portion of the access road. Environ- 454,000 litres of oil are recycled annually.
mental consultants were also engaged to
monitor the impact on the lake and ensure
that immediate and long-term solutions
protect the local trout habitat.
COMMUNITY DIALOGUE
Noranda is committed to fostering constructive dialogue with interested parties concerning the conduct of our activities. We particularly
strive for open dialogue and transparency at the community level. To date, eight of our major operations have established community
liaison committees to discuss environmental and economic issues. This practice will be extended to all operations whose size warrants
the formation of a committee.
COMMUNITY OUTREACH
Many of our operations have committees that work in collaboration with community organizations to address local risks and issues.
Maintaining open communication and transparency is important to Noranda, and we recognize the need to build alliances in the
communities in which we operate. Following is a list of operations and associated committees, and the number of meetings that took
place in 1999:
14 Noranda – 1999
Antamina – Compañía Minera Antamina (CMA), a partnership between Noranda
and three other companies, has compensated 53 families from the vicinity of
the mine site and relocated them to surrounding villages. CMA also continues
to provide financial assistance and technical support to local business and
social programs. Among these initiatives is funding for the training of teachers
and administrators in 41 schools, currently benefiting more than 6,000 students
in the region. Other projects include: student scholarships, training for doctors
and paramedics, health education for children and the general public, and sewage
system improvement projects in the communities of Carhuayoc and Pachapaqui.
CMA’s Manager of the Environment, Carol Fries, meets
regularly with community representatives along the proposed
pipeline route to discuss concerns and review plans
cultural differences, Noranda promotes the same safety, health and environmental
10
principles at all operations. We report safety performance on a consistent basis and have
developed internal indicators to assess the effectiveness of health and safety management.
8
6
Task Force on Mining Accidents best practices and disseminate that knowl-
edge to all sites. The task force’s first report
4
Following fatal mining accidents at Noranda will be published in the second quarter
and Falconbridge mines in 1998, Noranda of 2000.
2
formed a task force on mining accidents
to develop new approaches to accident
0
prevention. In 1999, three subcommittees Accident Prevention 1995 1996 1997 1998 1999
of the task force were established to study In 1999 Noranda sold and closed several
behaviour, best practices and risk manage- Noranda has initiated two programs to operations and adjusted the Reportable
Injury Frequency (RIF) to reflect these
ment. Two members of the best practices transfer best practices in accident preven-
changes in the organizational structure.
subcommittee toured six mines to assess tion. In addition to traditional reporting of Noranda’s RIF for 1999 was 7.54
and compare standards. In general, standards lost-time accidents and reportable/record- compared to 7.64 in 1998. This
includes lost-time injuries and modified
were found to be satisfactory but inconsis- able injuries, all facilities are now required work cases.
tent due to different approaches to super- to track and report on four accident-pre-
*Total lost-time injury and modified
vision, quality control and training levels. vention management indicators: planned work total hours worked 200,000.
The subcommittee on risk management safety inspections, incident investigations,
recommended that Falconbridge’s formal safety meetings and implementation of
risk-management system be implemented corrective measures. The aim is to drive ANTAMINA
experimentally at Noranda’s Bell Allard continual improvement of safety results by At our Antamina project in Peru, there
mine. Data collection has begun on risk instituting, tracking and reporting preven- were three fatalities among subcontracted
identification. tative measures. Another initiative requires workers in 1999. One worker died during
sites to identify the top five safety risks road-building work and two others were
and to develop and implement action plans killed in construction accidents at the
Task Force on Contractor Safety to reduce those risks. mine site. Because of these fatalities, CMA
initiated an independent assessment of
The majority of serious accidents and construction safety management systems in
accidental deaths that have occurred in Performance March 2000 to identify strengths and weak-
Noranda’s wholly-owned and partly-owned nesses in the existing safety management
companies over the past few years have ZINC systems. Deficiencies will be addressed and
been among contract workers. Leading Brunswick mine action plans implemented to improve
companies protect the health and safety of An employee died in September at the mine safety performance.
contractors as they do their own employees. when the mobile equipment he was driving
In 1999, to enable all Noranda operations collided with a large ventilation door. Job
to develop or improve local contractor safety standards for ore dumping were reviewed at
programs, we established a task force on the mine and a team of employees has
contractor safety with a mandate to identify examined all ventilation doors for possible
substandard conditions.
ALUMINUM Safety is promoted intensively at the mill level of 10 micrograms per decilitre. Ten
New Madrid through regular meetings, training sessions, years later, less than 10% of the children
Employee awareness is a critical part inspections, accident investigations and tested above this level. Reduction in lead
of on-the-job safety. The New Madrid alu- upper management support. emissions coupled with public education
minum smelter augmented its excellent on safety issues are the likely reasons for
1998 and 1999 health and safety results MAGNESIUM the decline. According to the local public
with Safe Start , an employee training
TM
Magnola Metallurgy health officials, the children do not have
program designed to allow employees to The safety record at the Magnola construc- lead/blood levels higher than those of
recognize potentially harmful states of mind tion site operated by SNC-Lavalin Group children living in other communities
such as rushing, fatigue, frustration and Inc. has been exceptional. At year end, the without lead sources.
complacency. Self-awareness is key to not recordable incidents were 3.5 per 200,000
committing critical errors. 223 employees hours worked – over five times lower ZINC
were trained in 1999. The remainder than the average for construction sites in Brunswick smelter
of the smelter’s workforce will be trained Quebec. The Québec Construction In 1995, the Brunswick smelter committed
in 2000. Association awarded Magnola the Québec to a five-year voluntary annual reduction
Construction Site of the Year award for in the action/relocation levels for employee
Norandal – Huntingdon its outstanding performance. blood/lead levels, reducing the point at
The Aluminum group’s Huntingdon rolling which action is taken from 35 to 30 micro-
mill revised its accident/incident investiga- grams per decilitre and the relocation level
tion procedure in 1999 to emphasize HEALTH from 50 to 40 micrograms per decilitre.
root-cause analysis for greater accident The program is on target to meet the new
prevention. The mill also revised its safety Performance levels by the end of 2000. In 1999, overall
auditing procedures to provide a more blood/lead levels at the smelter were
in-depth review of work practices. COPPER & RECYCLING reduced by 3% to the lowest levels ever
Horne smelter recorded there.
Norandal – Salisbury
In September 1999, voluntary lead/blood
In September, the Salisbury rolling mill was
tests were conducted on 985 children
awarded a Certificate of Special Recogni-
between the ages of one and five in the
tion by the North Carolina Department
Notre Dame neighbourhood around the
of Labor for achieving one million man-
Horne smelter. In 1989, 50% of the
hours of work without a lost-time accident.
children tested were above the lead/blood
18 Noranda – 1999
CEZinc Beryllium Exposure Disability Management
Backache and musculoskeletal disorders
are among the most costly injuries at Noranda Beryllium is a metal used in the electronics, Noranda’s disability management program
sites. During 1999, to determine the fitness nuclear and aeronautical industries to continues to grow. Launched in 1995, the
and ergonomic health of employees, enhance the conductivity and elasticity of program of early intervention helps injured
CEZinc conducted musculoskeletal eval- copper. Noranda receives beryllium, at employees navigate the health system
uations on 373 volunteers. These tests low levels, into its recycling stream, par- by procuring the appropriate health care
revealed that the average physiological age ticularly from electronic scrap sources. and claims assistance they need to return to
of CEZinc employees is 37.9 years while Unfortunately two employees of the Horne work on a just-in-time basis. Research has
the median chronological age is 40.5 years, smelter were found to have berylliosis, a shown that effective proactive management
indicating a good degree of general fitness. chronic disease of the lungs resulting from greatly contributes to the rehabilitation
Four work stations were also ergonomically exposure to dust containing beryllium. of workers while substantially reducing
evaluated: press-cleaner operator, ingot- The disease first manifests itself as a sen- costs. During 1999, Noranda saved approxi-
mold operator, cathode-skinning operator sitization or allergic reaction to beryllium. mately 107 person-years or 214,000 hours
and accounting department clerk. The first Once a person is sensitized, further expo- of time, compared to 44 person-years
evaluation completed, on press-cleaner sure could result in lung damage. Following (88,000 hours) in 1998.
operators, showed an improvement of 50% the confirmation of the two cases of
since changes were made to work methods berylliosis, 257 employees were voluntarily
and tools. Results are still pending on the screened at the Horne smelter for both Smoking Cessation
other work stations. sensitization and berylliosis. Eight were
found to be sensitized and no additional In December 1999, it became illegal in
Brunswick mine cases of berylliosis were discovered. Quebec for employees to smoke in the
Approximately 10% of the workforce at The testing of sensitized employees will workplace. To assist those employees who
the Brunswick mine has either Raynaud’s be repeated annually. smoke to quit, Noranda’s CCR and CEZinc
syndrome (29 employees), carpal tunnel Noranda also began extensive testing refineries offered smoking cessation pro-
syndrome (71 employees) or both, resulting at the Gaspé smelter and CCR refinery grams. At both operations, employees were
most likely from the repeated use of vibrat- as well as at Noranda Sampling and Micro offered training sessions and subsidization
ing tools. In 1998 a study was done by Metallics. if they chose to use an oral drug or patch to
Decibel Consultants to determine how Management of the risk has included help break their habit. Approximately 100
hand tools might be affecting workers. All lowering the acceptable content of recyclable employees took advantage of the program
the 25 tools tested were shown to vibrate materials as well as the acceptable atmos- at CEZinc and 93 at CCR.
unacceptably, with a maximum permissible pheric levels of work areas to the new level
daily exposure of less than 0.5 hours. recommended by the American Conference
Decibel recommended the following steps of Governmental and Industrial Hygienists
in its report: apply the daily allowed expo- and the U.S. Department of Energy. The
sure times; reduce ergonomic strain; supply current allowable level of 2.0 micrograms
improved anti-vibration gloves; procure per cubic metre has been reduced at all
better tools with less vibration. The Decibel facilities to 0.2 micrograms per cubic metre.
study was communicated to the workforce Work procedures have been reviewed
in June 1999. Several manufacturers sup- and protective measures implemented to
plied improved tools in the fall of 1999. prevent overexposure while engineering
controls are completed.
Beryllium will be used at Magnola for
alloying of magnesium. A comprehensive
industrial hygiene and health program
is being implemented and will be evaluated
closely after start-up.
Noranda is committed to cultivating an environment geared toward value-creation for all major stakeholders.
For our employees, shareholders, local communities, the countries in which we operate and all others
who benefit directly and indirectly from our prosperity, it is essential that Noranda remain competitive and
profitable while protecting the environment. We strive constantly to strengthen our financial and competitive
position. In 1999, we made considerable progress toward our goal of earning a return on common share-
holders’ equity of better than 12% over a full commodity price cycle. Our Margin Improvement Program,
introduced in 1998, was a major step, reducing operating costs by tens of millions of dollars without
sacrificing quality or competitive advantage. In the meantime, we remain committed to an ambitious program
of capital investments in technology-based projects. The Magnola magnesium smelter in Quebec, for
example, will soon be producing a useful, environmentally beneficial metal from old serpentine tailings.
Our new aluminum foil rolling mill in Tennessee and copper smelter expansion in Chile will both include
the latest pollution prevention technologies. In all cases, these are commitments to the economic future of
20 Noranda – 1999
PROFITABLE GROWTH
ENVIRONMENTAL EXPENDITURES
Business must be profitable in order to be socially and environmentally sustainable. ($ millions)
Noranda has set a target of a 12% return on investment over the full commodity 80
price cycle. 70
60
50
BRUNSWICK SMELTER Margin Improvement Program
40
It is estimated that the Brunswick zinc mine and Six Sigma
will close in seven to eleven years. As a result, 30
its feed base. It is currently evaluating the Noranda’s Margin Improvement Program 10
possibility of transforming the smelter into (MIP) has increased sustainable pretax
0
a more diversified custom operation using margins by $183 million. This puts the Emergency Health and Water Reclamation
Preparedness Safety Treatment
feedstock from third-party mines and Company well on its way toward achieving Industrial Waste Air
Hygiene Disposal Treatment
secondary sources. The smelter has been its target of $285 million in additional
working with Mintek, a metallurgical earnings by the end of 2000. Nearly all of Capital Expensed
research facility in South Africa, on the Noranda’s operations achieved margin In 1999, environmental operating expenditures totalled
development of a process to reclaim the improvements in 1999. $247 million for Noranda’s wholly-owned business
units. This includes such items as the cost of operating
lead and zinc from the discarded slag and maintaining water treatment plants,
produced at the smelter. Since 1997, three COPPER & RECYCLING environmental control measures for metals and SO2,
and reclamation expenses.
successful pilot tests have been completed, In 1999, the copper business performed well,
treating 600 tonnes of slag and recovering and operating margins were strengthened
“prime Western-grade” zinc. If a commer- by Noranda’s pre-eminent position as North
cial process is developed, it may also be America’s largest recycler of high-value elec- ALUMINUM
possible to recover zinc from electric arc tronics material and other waste material. The Aluminum business continued to
furnace dust, a major waste byproduct of During 1999, recyclable materials com- improve its financial results, highlighting
the steel industry. prised 15% of the feed for the Horne and the strength and stability of the operations.
Gaspé smelters. Approximately 15% of the
SIX SIGMA
copper, 20% of the gold, 15% of the silver
Global Mining Initiative and 85% of the platinum group metals pro- While the Margin Improvement Program
duced by the CCR refinery were produced is on target, we acknowledged that there
During 1999, Noranda became a founding from recyclable materials. The business also could be increasing difficulty in sustaining
member of the Global Mining Initiative, includes a lead-acid battery recycling facility the pace of improvement that we saw in
an organization whose main goal is to in Belledune, New Brunswick, which 1998. In order to meet this challenge, we
encourage an independent and authoritative processed 11,500 tonnes of recycled lead. have adopted the Six Sigma productivity
analysis of issues regarding metals mining Electronics represents a major and enhancement methodology. Although
and sustainable development. The goal is profitable sector of Noranda’s recycling busi- our primary goal is to improve economic
to avoid reactionary market closures based ness. We maintain three U.S. facilities dedi- margins, Six Sigma will also have environ-
on incomplete information and maintain cated to recycling electronics such as circuit mental and safety benefits. Many one-time
land access for mining. boards and other computer components. emission problems, for example, can be
Please turn to page 4 for more informa- traced to process disruptions or irregulari-
tion on this initiative. ZINC
ties. Six Sigma trains employees to seek
The zinc business reported higher produc- out these irregularities before they occur.
tion levels in 1999, with the CEZinc We expect improvements first in energy
refinery in Valleyfield, Quebec leading the consumption and then, as our program
way. Record production in excess of rated continues, in water consumption.
capacity is due to process innovations.
Noranda’s past investments in environmental improvements have resulted in lower emissions. We will continue to make necessary
environmental investments, but environmental capital spending as a percentage of total capital expenditures will decrease as we
allocate capital to investments that create value while enhancing social, environmental and economic sustainability.
22 Noranda – 1999
MANAGEMENT FRAMEWORK
ENVIRONMENT, SAFETY AND HEALTH responsible care committees at CEZinc, local municipalities, Quebec’s Ministry of
ASSURANCE PROCESS Gaspé and the Horne. During 2000 these the Environment and various health and
As stated in last year’s report, Noranda sites will be assessed on their implementa- safety agencies, is an important link between
is evolving our traditional system of five tion of Responsible Care initiatives. Magnola and the local communities so
formal audits into a more integrated there can be a rapid and effective response
methodology using an environment, safety Distribution Incidents in the event of a major industrial accident.
and health management framework. Noranda DuPont LLC has North America’s
It requires each operation to develop and largest sulphuric acid emergency response RISK EVALUATION
implement a framework that makes network, consisting of 11 teams from • At CCR and CEZinc, preliminary
responsibility for compliance and corrective Noranda, DuPont and Falconbridge. engineering has been completed on the
action part of the daily duties of every In 1999, the joint venture reported a total $6-million installation of an alternative
manager. Self-assessment is completed at of 66 distribution incidents. Although process for the storage of sulphur dioxide
each site. Good progress was made during the volume of acid shipped was significantly (SO2 ) on-site at the CCR refinery. Currently
1999, with all Tier 1 sites participating higher than in the previous year, on an stored as a liquid under pressure, it poses a
in audits using the new protocol. Tier 2 indexed basis the incident rate improved by risk to refinery workers and residents of the
sites performed gap analyses and will have 24% (21 incidents per million tonnes in surrounding area if it should accidentally
completed their first management frame- 1999 compared to 29 incidents per million escape as gas, which is highly toxic. With
work audits by 2001. A total of 56 audits, tonnes in 1998). In the largest incident the new system, the SO2 will be absorbed
using either the management framework or category, rail incidents, there was a year- into a stable aqueous amine solution that
the traditional audits, were conducted. over-year decrease, from 48 to 24 incidents. will not pose a hazard if a leak occurs.
To prepare for this transition, 20 em- These were primarily low-level events relat- • The New Madrid smelter lies on
ployees were trained in the management ed to minor derailments and collisions in an active fault line. In 1999, a systematic
framework audit system. Suggestions switchyards. Approximately half occurred in evaluation of business risk related to
from the participants were used to refine winter months when ice and snow con- earthquakes was completed by an inde-
the protocol. tribute to switching problems. Incidents pendent consulting firm. It concluded
related to trucking (24%), customers (21%) that most of the smelter’s structures could
PRODUCT STEWARDSHIP AND
and terminals (11%) were higher than in withstand modest earthquakes, with the
RESPONSIBLE CARE TM
1998 due to the large increase in activity exception of a few office locations and one
In 1998 Noranda entered into a joint in these areas. Improvements identified substation at the adjacent power plant.
venture with E.I. du Pont de Nemours and in the incident investigations include more An action plan has been drawn up to
Company (DuPont) for the distribution consistent hose design and management address the situation with special emphasis
and marketing of sulphuric acid produced by practices, and loading guidelines for use at on worker safety.
Noranda and Falconbridge. It is Noranda’s terminals and loading sites. • In response to a 1997 audit and in keep-
goal to become the recognized industry There was one high-level incident in ing with its adoption of an Environment,
leader in the safe distribution of sulphuric 1999 when a tank car support beam sepa- Health and Safety management framework
acid. In 1999, to get closer to our goal, rated. The tank car was empty and no spill in 2000, the Huntingdon rolling mill
Noranda and DuPont visited more than or injury occurred. Concerns related to the expanded its risk assessment program in
80 customers across North America to design and age of this car resulted in the 1999 to cover more operations and practices.
ensure they were handling and storing the retirement of a significant number of simi- In 2000, action plans will be developed
product safely. To this end, Noranda and lar cars in Noranda’s acid fleet. to address any shortcomings. A gap analysis
Falconbridge developed Sulphuric Acid was conducted in 1997 to prepare the
EMERGENCY PREPAREDNESS
Distribution Risk Management Guidelines, mill for the management framework.
an internal document to help staff An example of our progress occurred A similar analysis done in 1999 showed
improve safe loading, transport, delivery at Magnola Metallurgy. For emergency significant progress.
and storage of acid. preparedness, Magnola has sponsored
Related Responsible Care activities the formation of a joint committee to plan
included the continued operation of citizen emergency measures. The committee,
which also includes representatives from
24 Noranda – 1999
Printing: Somerset Graphics Inc.
• In order to build and maintain the trust OUR GUIDING PRINCIPLES Our commitments to society:
and confidence of our stakeholders, it • We respect the lives, rights and property • Promote fair competition
is crucial that we commit to conducting of others • Do not pay bribes to obtain or
Typesetting: Moveable Type Inc., Toronto
our business in an ethical manner • We treat those with whom we deal retain business
• Noranda believes that “good ethics mean fairly, with dignity and respect • Respect human rights
good business” • We conduct our business in an • Do not exploit child labour
• Each of us – employees, agents, officers environmentally responsible manner • Obey the law
and directors – is expected to ensure • We commit to making our work
that our actions are consistent with the environments safe and healthy Our commitments to stakeholders:
commitments Noranda has made • We honour our commitments • Protect Noranda’s assets
• We do not allow our decisions to be • Avoid conflicts of interest
Commitment
improperly influenced • We are committed to providing share-
Photography: Graeme Oxby; K.C. Armstrong; Evan Dion; Maurice Boudreau; Jean B. Héguy
CORPORATE INFORMATION
P.O. Box 755, BCE Place des communications, à a policy of: Development Report.
181 Bay Street, Suite 4100 l’addresse mentionnée • donating at least 1% of To request a copy, please
Toronto, Ontario M5J 2T3 à gauche. average domestic pretax contact: (416) 956-5708 or
(416) 982-7181 profit to charitable and other corpcomm@falconbridge.ca
request@noranda.com Versión en Español non-profit organizations; or Department of Public
www.noranda.com Para obtener una versión en • encouraging current and Affairs and Communications
Design: Campbell Sheffield Design Inc., Toronto
Implement
management by minimizing safety, and emergency response the public, governments, and
impact on employees, the policies and programs. other stakeholders on activities
public, customers, and the involving environment, safety
natural environment. DEVELOP product stewardship and health.
programs to protect employees,
COMMIT to the principle
of sustainable development,
which means that our
economic decisions will not
Develop
the public, customers, and
the environment by providing
risk management information
on the safe use, transport, and
REPORT regularly to the Board
of Directors on environment,
health, hygiene, safety, and
emergency preparedness.
Conduct
take priority over considera- disposal of our products.
tions of environment, safety Noranda operations take
and health. CONDUCT regular environmen- responsibility for implementing
tal, health, hygiene, safety, the principles of this policy
DESIGN, operate and evaluate and emergency response audits through the commitments and
facilities to ensure that effective
control systems are in place to
minimize risks to environment,
safety and health.
Communicate
and implement action plans
resulting from those audits.
actions of each employee.
Report