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Sustainable

DEVE LOPM ENT REPORT

Table of Contents

1999 Significant Events


Message to Staekholders
Q &A
Sustainable Development
Map of Operations
Environmental
1999
Performance
Social Performance
Economic Performance
Management Framework
Legal/ Spills and Releases
Code of Ethics Summary
NORANDA is a leading international mining and metals company employing more than 17,000 people at

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

and manufactured products to CUSTOMERS WORLDWIDE .

Noranda is a Canadian company whose common shares are listed on The Toronto Stock Exchange (NOR).

It has approximately 238 million shares outstanding.

1 1999 Significant Events


2 Message to Stakeholders
4 Q&A
5 Sustainable Development
6 Map of Operations
7 Environmental Performance
12 Social Performance
20 Economic Performance
23 Management Framework
24 Legal / Spills and Releases
IBC Code of Ethics Summary /
Corporate Information
BC Environmental Policy

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.

HOW WE ARE REPORTING

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.

Sustainable De ve lopme nt Re port 1


Ten years ago Noranda issued its first environmental

report. This Sustainable Development Report reflects

the evolution of our concerns and commitment for

environment, safety and health issues, encompassing the

three pillars of sustainable development: environmental,

economic and social responsibility.

David W. Kerr, President and CEO, David Rodier,


Senior Vice-President, Environment, Safety and Health
and Dave Goldman, COO (left to right)

MESSAGE TO STAKEHOLDERS

TEN YEARS OF ENVIRONMENTAL CLOSE TO 100% COMPLIANCE OFFSETTING EVENTS


REPORTING In 1999, Noranda again achieved excep- During the year, our progress on envi-
In 1990, environment, safety and health tionally high standards of compliance ronmental, health and safety issues was
were primarily about regulatory compli- for water and air emissions, coming very tarnished by four fatalities. One of these was
ance, pollution and industrial hygiene. close to 100% in both cases. Air compliance an employee at our Brunswick mine and
Increasingly, however, we are being called was 99.97%. Water compliance was above three were employees of contractors at the
to account not only for what we do but 99.99%. Antamina project in Peru.
also how we do it. Accordingly, we need to Other notable accomplishments during Our stated goal for 1999 was to reduce
measure the extent to which our operations the year included the following: our Reportable Injury Frequency (RIF)
enhance economic development, ensure • We continued to reduce the amount by one-third compared with 1998. Unfortu-
environmental protection and promote of SO2 produced by our copper operations. nately we achieved only a minor improve-
social equity. At 82% fixation, our Altonorte smelter is ment over our safety performance of 1998.
With this report we are attempting currently one of the best performers in Our intention for 2000 is to begin
to report on our progress based on eight Chile (see page 8). An expansion of that implementation of a new five-year strategic
indicators of sustainable development: facility, now in progress, will increase safety plan. We believe that we can raise
sulphur dioxide (SO2 ) emissions in our copper fixation to over 90%. Noranda’s overall performance into the top
business, metal emissions to air, energy • Construction of the Magnola magnesium quartile of our industry. All levels of the
consumption (which implies to a large extent plant continued through 1999 with an Company, from top management to hourly
greenhouse gas emissions), minimizing exemplary safety record. At 3.5, the site’s employees, will have specific responsibilities
our footprint, community dialogue, safety, Reportable Injury Frequency was signifi- for ensuring we make meaningful progress.
profitable growth and environmental cantly lower than the average for Quebec Our emphasis will be on proactively address-
capital expenditures. construction sites. ing the causes of accidents to prevent them
For all but one indicator – community • Likewise, in Huntingdon, Tennessee, before they happen.
dialogue – our performance can be tracked where the Aluminum group is building a new
through quantitative measurement on US$238-million mill, there were zero
a year-to-year basis, although numbers reportable accidents at the construction site
don’t tell the whole story. during 1999, an exceptional achievement.

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

DAVID W. KERR DAVE GOLDMAN DAVID RODIER


President and Executive Vice-President Senior Vice-President,
Chief Executive Officer and Chief Operating Officer Environment, Safety and Health

Sustainable De ve lopme nt Re port 3


David Rodier, Senior Vice-President, Environment,
Safety and Health (left) with Richard Sandbrook

THE MINING, MINERALS AND SUSTAINABLE


DEVELOPMENT PROJECT

Dave Rodier in conversation with Richard Sandbrook, Project Coordinator, MMSD

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:

ENVIRONMENT SOCIAL ECONOMIC Based on these principles, we


• minimize the physical, • foster constructive dialogue • ensure that our activities have selected key indicators
chemical and biological with interested parties on the maintain the long-term to measure our progress:
effects of our activities on conduct of our activities; sustainability of resources; 1. SO2 emissions in Noranda’s
the environment; • ensure that our activities • strengthen the financial copper business
• nurture excellence by are sensitive to cultural and competitive position 2. Metal emissions to air
promoting environmental considerations, employee and of the Noranda group of 3. Energy consumption
education, training and public health, and the needs companies. 4. Minimizing our footprint
research programs within our of future generations; 5. Community dialogue
workforce and communities; 6. Safety
7. Profitable growth
8. Environment-related capital
expenditures

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.

Sustainable De ve lopme nt Re port 5





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MAP OF OPERATIONS

▲ ALUMINUM Gaspé Smelter ◆ ZINC ◆ TECHNOLOGY CENTRE


American Racing Equipment Custom copper smelter and Brunswick Mine Noranda Technology Centre
Aluminum and automotive wheels sulphuric acid plant Underground zinc/lead Pointe-Claire, Quebec
Gardena, California Murdochville, Quebec mine and mill
Querétaro, Mexico Bathurst, New Brunswick ■ EXPLORATION
Rancho Dominguez, California Horne Smelter
Warsaw, Kentucky Custom copper smelter and Brunswick Smelter Exploration Offices
sulphuric acid plant Lead smelter and Bathurst, Canada
Noranda Aluminum Rouyn-Noranda, Quebec sulphuric acid plant Brisbane, Australia
Aluminum reduction smelter Hermosillo, Mexico
Belledune, New Brunswick Hong Kong, China
New Madrid, Missouri Micro Metallics
Lima, Peru
Precious metal scrap sampling CEZinc Refinery London, England
Norandal USA and processing plant Zinc reduction plant and Montreal, Canada
Aluminum sheet and Roseville, California sulphuric acid plant Navan, Ireland
foil rolling mills San Jose, California Valleyfield, Quebec Rio de Janeiro, Brazil
Huntingdon, Tennessee Santiago, Chile
Newport, Arkansas Noranda Sampling Gallen Mine Thunder Bay, Canada
Salisbury, North Carolina Precious metal scrap Zinc mine
sampling plant ▲ CLOSED MINES
Rouyn-Noranda, Quebec
■ COPPER AND RECYCLING East Providence, Rhode Island Granisle, British Columbia
General Smelting (two closed mines)
Altonorte Smelter
● Happy Camp, California
Copper smelter and MAGNESIUM Lead alloy producer
Hendrix Lake, British Columbia
sulphuric acid plant Magnola Metallurgy Lachine, Quebec Ignace, Ontario
La Negra, Chile Danville, Quebec Libby, Montana
(start-up early 2001) Bell Allard Mine Manitouwadge, Ontario
CCR Refinery Underground zinc mine Matagami, Quebec
Miramichi, New Brunswick
Copper and precious Matagami, Quebec
Peachland, British Columbia
metal refinery
Salmon, Idaho
Montreal-East, Quebec ● SALES AND
MARKETING OFFICES
Compañía Minera Antamina
Cleveland, Ohio
Open pit copper/zinc mine
London, England
(under development)
Toronto, Ontario
Department of Ancash, Peru Franklin, Tennessee

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

metals on the environment.

REFINED METAL PRODUCTION


AND ENERGY CONSUMPTION
(000 tonnes) (petajoules)
Training and strategies for continuous improvement.
1200 50
A fourth module on managing residual
MAGNESIUM wastes will be offered in 2000.
960 40
Magnola Metallurgy
Environmental training modules developed ZINC
720 30
by Magnola during the year – based on the Bell Allard mine
Noranda Environmental Awareness Training An operating manual was drafted in 1999
480 20
(NEAT©) – will be presented to all employees for the operation of tailings facilities
in the next two years. Three modules will at Bell Allard. Covering procedures such
240 10
be offered: first, the history of the new as surveillance and regular inspection,
facility’s government application process emergency measures, training and report-
0 0
and background on its key environmental ing, the manual has been designed to 1994 1995 1996 1997 1998 1999
challenges; second, the environmental define roles and responsibilities and to Metal produced
management system and responsibilities for minimize risk. Sulphur dioxide
avoiding incidents; third, the principles A 27% increase in refined metal production was
achieved between 1990 and 1999 while using
only 5.8% more energy. Production for Altonorte
is included for 1998 and 1999, but energy
consumption is included only for 1999.

Sustainable De ve lopme nt Re port 7


S0 2 EMISSIONS IN NORANDA’S COPPER BUSINESS

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.

Performance To identify these fugitive emissions, the


smelter installed four detectors to measure SO2 EMISSIONS
COMPARED TO
COPPER & RECYCLING their frequency and intensity. As a result,
COPPER PRODUCTION
Horne smelter several modifications were made to equip-
(000 tonnes)
During 1999, the smelter increased sul- ment and procedures in 1999. Reducing
600
phur fixation by 3% to 78%, representing fugitive emissions of SO2 remains one of
a reduction of 14,000 tonnes of SO2. the main challenges for the next few years. 500

To achieve the 90% fixation level, Noranda


is investing between $25 million and Gaspé smelter 400

$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

evaluating the smelter for further opportu- Copper produced


Sulphur dioxide
nities to improve productivity while
improving environmental performance Sulphur dioxide emissions from our
three smelters have decreased from
and industrial hygiene. 479,000 tonnes in 1985 to 168,000
tonnes in 1999, a 65% reduction.
Over the same period, copper production
has increased 43%. Our target is to
achieve 90% sulphur fixation by 2002.

Altonorte – In a US$170-million modernization program announced in 1998,


the capacity of the smelter, located near the city of Antofagasta in northern
Chile, will be doubled to 820,000 tonnes of concentrate per year while its SO2
emissions will remain constant. Emissions will be controlled primarily through
the installation of a continuous reactor that will increase Altonorte’s sulphur
fixation rate to over 90%. While Noranda announced in February 1999 that the
project would be delayed because of unsatisfactory market conditions, design
engineering and environmental work continued and, in February 2000, the
project was pushed ahead of schedule. An Environmental Impact Statement (EIS)
was submitted to the Chilean authorities, who approved the document in March
2000. A feasibility study determined that the expansion can be accomplished in
two stages: replacing existing equipment with state-of-the-art technology by 2001,
then increasing the smelter’s treatment capacity by 2003. The expansion project
will reduce cost of production and enhance environmental performance.
METAL EMISSIONS

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

precipitated from effluents with chemical labour-intensive retort furnaces with a


1500
reagents. CCR achieved the reduction more highly automated system. As well
by experimenting with its water treatment as reducing occasional fugitive emissions 1000
chemistry. The reduction will save an of silver and lead, the modernization elimi-
estimated $70,000 annually in reduced nated the shovelling of heavy materials 500

chemical use. required by the old furnaces. Emissions


0
New scrubbers installed at the refinery in were also reduced with an improvement
1985 1990 1995 1999 2002
1998 have led to an 80% reduction in in the continuous sulphur drossing process target

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.

Sustainable De ve lopme nt Re port 9


Neighbourhood Improvement – At the Horne smelter in Rouyn-Noranda,
Quebec, an internal task force concluded that dust that fell several times in
1999 from the smelter’s No. 2 stack was caused by solid deposits detaching from
internal surfaces of the stack. It was found that temperatures in smelting were
set too low. A new burner will be installed in early 2000 at a cost of $750,000
to regulate the temperature.
Doris Moreau, Marc St. Amant and Paul-Émile
Nolin review installation plans for the new burner

CEZinc American Racing – Gardena American Racing – Rancho Dominguez


In 1999 CEZinc completed a water In October, a third-party consultant asso- In January 1999, American Racing’s
assessment program with provincial author- ciated with the American Metal Finishing Plant #2 in Rancho Dominguez, California
ities. First initiated in 1993, the program Association evaluated the impact on the entered the Regional Clean Air Incentives
culminated with the start-up of a $19-million community of metal emissions from Market (RECLAIM) program of the South
water treatment plant. American Racing’s Gardena, California plant. Coast Air Quality Management District.
It was found that hexavalent chromium For all industrial operations emitting more
ALUMINUM exposure levels exceeded the no-significant- than four tonnes per year of nitrogenous
New Madrid risk level. Consequently, the company oxides, the program requires that such
Two measures were taken in 1999 to reduce is required to run newspaper advertise- emissions be gradually reduced by
fugitive emissions and improve air quality ments once every quarter to notify residents 2010 to 34% of the baseline 1999 emis-
in the workplace: US$4.0 million was spent near the plant about carcinogenic and sions, or trading credits be purchased
to further improve the dry scrubber system reproductive toxins. A recycling system to achieve compliance.
on Potline #1, and improvements were for hexavalent chromium is being tested,
made to the equipment for handling spent with planned installation in May 2000. MAGNESIUM
cathodes, at a cost of US$1.6 million. Chromic acid, recovered through this Magnola Metallurgy
process, will be reintroduced to the concen- Environmental sampling of air, water, river
Norandal trated chromium baths. Distilled water sediment, fish and vegetation is being
The Aluminum group’s Huntingdon mill is from an evaporator will be recycled back completed around the new Magnola facility
building a US$238-million aluminum foil into rinse water tanks. to determine background levels of contami-
facility. Construction began in late 1998 nants such as metals and chlorinated hydro-
and will continue into 2002, with start-up carbons. The sampling, which has been
in 2001. New technology for the facility’s conducted since 1997, identifies existing
four casting lines, rolling mill and scrap contaminants and establishes a baseline
smelter will reduce metal emissions by 90% against which Magnola can compare its
over Huntingdon’s present technology. long-term environmental performance.

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.

Greenhouse Gas Emissions Performance MAGNESIUM


Magnola Metallurgy
During 1999, Noranda refined its green- COPPER & RECYCLING The casting of magnesium relies on
house gas emissions inventory for our Horne smelter the use of sulphur hexafluoride (SF6), an
Canadian operations. Our approach is now An internal task force at the smelter extremely potent greenhouse gas with
to consider emissions from off-site electrical determined that a blower could be elimi- approximately 24,000 times the effect of
power generation as well as our own on-site nated in the converter to reduce power CO2. In 1999, Noranda approved an
emissions. Over the past decade, the effect consumption. Savings are projected to be $7-million capital project to install alterna-
of increased production at our metallurgical $200,000 per year. tive technology that uses sulphur dioxide
operations has been offset by substantial (SO2). The new system, which is targeted
reductions in greenhouse gas intensity and ZINC to start up in the fall of 2000, will absorb
by mine closures. Moving forward – with Brunswick smelter most of the SO2 after casting and recycle
new operations such as Magnola – the task The Brunswick smelter achieved energy it to be used again for the same purpose in
will be far more challenging. cost savings in 1999 of over $1 million, the casting line. The development of
primarily through changes to propane this new approach in the protection of
burners in the sinter (initial) stage of the molten magnesium will permit Magnola
smelting process. to gradually eliminate the use of SF6.

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.

Sustainable De ve lopme nt Re port 13


Contaminated Sites to marine life. In 1999, a consultative com- The detailed studies conducted at both
mittee was formed to determine the scope sites indicated that the only significant
CCR refinery of the clean-up project. effect caused by soil with elevated levels
Several years ago, sediments along both of metals is a small shallow plume of
sides of a wharf on the St. Lawrence River CLOSED MINES groundwater. This shallow plume carries
near the CCR refinery were found to In July 1999, the British Columbia Ministry elevated concentrations of metals, including
contain hydrocarbons and various metals, of Environment, Lands and Parks issued a copper (from the concentrate), as well as
including copper. The CCR refinery is one remediation order to Noranda on two sodium and chloride (from road salt).
of three local companies working with concentrate storage facilities in and around Aquatic studies were conducted on water,
authorities to determine what should be the community of Topley under the con- river sediments and aquatic life such as the
done to remediate the contamination. taminated sites regulations of the Waste freshwater mussels from the Bulkley river.
Toxicological studies have shown that the Management Act of British Columbia. Both These studies showed that there is no
toxins are harmful to organisms living properties had been used for storing and significant impact to the river.
in the sediments but pose minimal threat transferring copper concentrate to rail cars Remediation plans have been submitted
from mines near Granisle. to the government for approval.

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:

OPERATION COMMITTEE AND COMMUNITY NUMBER OF MEETINGS

CCR Montreal-East Citizens’ Committee (Montreal-East, Quebec) 4


Community Liaison Committee 8
Municipal/Industrial Committee on the Management of Risks Associated with Major Industrial Accidents 4
HORNE Responsible Care Citizens’ Committee (Rouyn-Noranda, Quebec) 8
Fugitive Emissions Committee 3
Follow-up Committee on the Decontamination of the Notre Dame Neighbourhood 4
GASPÉ Economic Development Committee (Murdochville, Quebec) 1
Responsible Care Citizens’ Committee 2
ALTONORTE Coviefi Community Neighbours’ Board (Antofagasta, Chile) 10
CEZINC Responsible Care Citizens’ Committee (Valleyfield, Quebec) 9
BRUNSWICK Meetings on annual basis with interest groups (Bathurst, New Brusnswick) 1
BRENDA Brenda Mines Public Surveillance Committee (Peachland, British Columbia) 3

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

Performance neighbourhood to form an oversight com- MAGNESIUM


mittee. Members of the committee visited Magnola Metallurgy
COPPER & RECYCLING the smelter and were supplied with all In an effort to help a local citizens’ group
Altonorte smelter relevant information, including copies of get established, Magnola Metallurgy
When the Altonorte copper smelter in monthly progress reports. In August 1999, provided operating capital for its first year
Chile began an expansion program in 1998, the Antofagasta and Calama El Mercurio of operation. The group’s key concern is
a full Environmental Impact Study (EIS) newspaper honoured Altonorte with its that sampling and analysis in the area be
was filed with the government. Prior to first annual Norte Minero award for conducted professionally, and that proper
the finalizing of the EIS, employees from contributing to the region’s development environmental monitoring occur after
Altonorte met with representatives from the while ensuring that the environment was start-up. Magnola will be intensively moni-
nearby community of Antofagasta. This protected. A key consideration for the toring the environmental effects of its
type of public meeting is not required by award was the effort Altonorte has shown in operations for two years after start-up, after
law and is relatively novel in Chile. In 1999, keeping local communities well informed. which the monitoring program will be
as a result of these public meetings, citizens revised according to performance to date.
of the Coviefi neighbourhood, a community ZINC
located close to the smelter, expressed Brunswick smelter
additional concerns about possible detri- Employees of the Brunswick smelter were
mental health effects of the expansion. awarded the Conference Board of Canada’s
Realizing that misinformation had been National Business and Education Centre
spread, Altonorte encouraged the Coviefi 1999 award for workplace literacy initia-
tives. A total of 129 employees and family
members have taken advantage of French
and English literacy skill-upgrade programs
at the smelter.

Sustainable De ve lopme nt Re port 15


Mine Closures Gaspé also opened a retraining facility for Heath Steele has been working since
employees in 1998 and has devoted more 1997 with all stakeholders, including the
During 1999, Mines Gaspé and Heath than $250,000 to its activities. At the end Miramichi city council and the local busi-
Steele were closed after their ore reserves of December 1999, of the 300 people ness community, to keep them informed of
were depleted. Environmental reclamation affected by the closure, 261 had enrolled the closure activities at the mine. In cooper-
is only part of the closure process. Of with the retraining centre, 96 had been ation with the United Steelworkers of
equal importance is Noranda’s responsi- relocated, 89 were seeking jobs and 37 were America and the New Brunswick Human
bility toward its employees. While some in retraining programs. Resources and Development Commission,
employees will retire, many will have to Heath Steele formed a transition adjust-
seek employment elsewhere. It is Noranda’s ZINC ment committee to assist employees in
policy to help those who are affected. Heath Steele mine moving to other jobs. Within two months
This includes job search assistance and In November 1999, after 40 years of opera- of the closure, over half the affected
training programs. tions, Heath Steele mine in Miramichi, New employees had completed a transition to
Brunswick was closed after depleting its retirement or new employment.
COPPER & RECYCLING ore reserves. A site reclamation and manage-
Mines Gaspé ment plan, approved by regulatory agencies
The Mines Gaspé underground copper and stakeholders, is being implemented.
mine was closed in late 1999, eliminating Approximately 260 employees were
approximately 300 jobs. The Economic affected when the Heath Steele mine shut
Development Committee of Murdochville down. To help employ a portion of the
(EDCM) was formed and consultants Heath Steele workers, Noranda committed
were hired to help find ways to diversify the $19.2 million to training. The money, which
community’s economy. The committee was augmented by $2.2 million from the
is supported by the federal and provincial provincial government, is being spent on
governments. It also received $25,000 integrating 80 former Heath Steele workers
from Mines Gaspé in 1999 and will receive into the workforce at the nearby Brunswick
an additional $15,000 in 2000. Mines mine and training the entire workforce in
new processes.

Building Relationships in the Far North – In Nunavut, Canada’s vast, new


northern territory, Noranda’s exploration teams are building relationships with
local peoples and the territorial government through a series of community visits.
In 2000 Noranda is planning to conduct information sessions in the far northern
villages of Qausuittuq (Resolute Bay), Ausuituq (Grise Fiord), Ikpiaqjuk (Arctic
Bay), Iqaluit and Iglulik (Igloolik). Several teams intend to contact local Inuit
prospector associations to assist them in training local people in prospecting. “The
overall goal,” says Noranda’s Robin Adair, Regional Manager, Western Canada,
“is to build personal relationships. In the Inuit culture, it would be very difficult
to develop a trusting relationship as a corporation. Once we can demonstrate that
as individuals we respect their environment, history and the wildlife they depend
on, we believe their trust will follow. Obviously, that trust is essential to our
exploration and development efforts in their territory.”
SAFETY
REPORTABLE INJURY
To ensure that our activities are sensitive to employee and public health while respecting FREQUENCY*

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.

Sustainable De ve lopme nt Re port 17


Providing Greater Assurance – Underground mines can be subject to minor
tremors that compromise the integrity of the rock walls and therefore the safety
of the workers. Steel tendon reinforcement is used to stabilize underground tunnel
walls and roofs, but tremors or large wall displacements can break these tendons.
As mining progresses over time, underground tunnel walls can converge and
ground conditions change. Given these conditions, it is better for the tendons to be
able to yield slightly after installation. Specialists at the Noranda Technology
Centre test particular tunnel reinforcement elements to determine whether or not
they have the proper degree of flexibility for specific mine conditions. In this
way, safer support solutions are designed which allow us access to minerals at
depths or in regions that may be otherwise inaccessible.
David Gaudreau, a rock mechanics engineer at
Noranda’s Technology Centre, tests tendon support

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.

Sustainable De ve lopme nt Re port 19


ECONOMIC

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

our Company and the future of the communities in which we operate.

Investment in Growth – Noranda’s $733-million Magnola magnesium refinery


is scheduled for completion in 2000 and should reach its 63,000-tonne processing
capacity at the end of 2001. An environmentally advanced plant based on
proprietary technology developed by Noranda, the Magnola operation will be the
only refinery in the world to create pure magnesium and magnesium alloys from
old serpentine tailings, which contain 23% magnesium. The Magnola operation is
on an 800-hectare property with enough serpentine for a few hundred years of
operation. Consumption of magnesium is growing worldwide at approximately 6%
per year, mostly driven by the automotive industry’s goal to reduce vehicle weight
and increase fuel economy according to government regulations. It is expected
that because of Magnola’s low cost of operation, Noranda can supply approximately
15% of the world market for this light, high-strength alloy metal.

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

the Brunswick smelter will lose half of MARGIN IMPROVEMENT PROGRAM 20

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.

Sustainable De ve lopme nt Re port 21


The proposed concentrate pipeline for Antamina crosses
two mountain ranges, spans rivers 38 times and drops more
than 4,000 metres to sea level

A Better Alternative – Construction begins in April 2000 on one of the


most ambitious phases of the Antamina project in Peru: a 302-kilometre slurry
pipeline that will carry ore concentrate from the mine to the coastal port at
Huarmey. The initial capital cost is US$170 million: however, the lifetime cost
of operating the pipeline will be lower than that of land transport. The pipeline
will also reduce the risk to the environment from potential spills associated with
round-the-clock trucking, shield local communities from incessant heavy traffic,
and reduce the possibility for accidents that might occur on the steep terrain.

ENVIRONMENTAL CAPITAL EXPENDITURES

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.

SCIENTIFIC RESEARCH AND Metals in the Environment Performance


TECHNOLOGY DEVELOPMENT As a major producer and exporter of metals,
International Network for Noranda has a vital interest in establishing MAGNESIUM
Acid Prevention sound scientific findings about metals in the Magnola Metallurgy
Noranda is a member of the International environment in order to promote the safe During 1999 Noranda Magnesium entered
Network for Acid Prevention (INAP), an and sustainable use of metals, improve the into a research partnership with the U.S.
international organization that has created perceptions of regulators and public interest Department of Energy’s Argonne National
technical networks linking industry experts groups, and maintain our access to inter- Laboratory in Chicago to develop a non-
and practitioners worldwide. INAP’s goal national markets. As part of the Mining carbon “inert” anode for the electrolysis cells
is to contribute to the advancement and Association of Canada (MAC), together used in the Magnola process. Conventional
dissemination of new methods for tailings with the Canadian government and a carbon anodes form chlorinated hydrocar-
and waste rock management. The organi- number of Canadian universities, Noranda bons (CHCs) such as dioxins and furans.
zation is working on a worldwide guide is participating in a five-year research While these will be emitted at extremely
for managing mine wastes and on the program on Metals in the Environment. low levels, Magnola will continue working to
identification and promotion of emerging The $5-million study is aimed at better develop a commercially viable non-carbon
technologies that could lead to significant understanding the sources of metals in the anode that will avoid generating CHCs.
reductions in the liabilities and environ- environment, how metals move and trans-
mental impact associated with acid form within the environment, and how
mine drainage. Noranda will be contri- they can affect ecosystems and human
buting US$40,000 to this initiative. health. In addition to funding, Noranda is
helping to guide the technical aspects and
management issues of the program through
participation on the science steering com-
mittee and the board of directors.

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

Sustainable De ve lopme nt Re port 23


LEGAL / SPILLS AND RELEASES

Legal • In May, a similar incident occurred when CLOSED MINES


an expansion joint in the main pipeline Geco mine
In 1999, there were no significant devel- ruptured, resulting in a loss of approximately In July, a severe electrical storm disrupted
opments in any legal actions against 2.5 tonnes of sulphuric acid. Again the power to pumps at Noranda’s water
Noranda involving environment, safety acid was neutralized on-site and a nearby treatment plant at the closed Geco mine
and health issues. salmon river was not adversely affected. in Manitouwadge, Ontario. Untreated
Use of the acid transfer pipeline was discon- water accumulated in the holding pond
tinued and a temporary truck loading adjacent to the water treatment plant,
Spills and Releases station was established at the plant site. The resulting in approximately 190 cubic metres
pipeline was inspected with the assistance of untreated water spilling into Muskoka
Although comprehensive measures are of an outside consultant. Several deficien- ditch, and ultimately into Mose Lake. Envi-
in place at Noranda operations to prevent cies were noted. Repairs to the acid ronmental experts began a water quality
accidental spills and releases, incidents transfer pipeline were completed and the sampling program in Mose Lake and Kaginu
do occur. All spills and releases must be line was returned to service in September. Lake and associated tributaries within
reported to the appropriate government Discussions were held with Quebec’s two days of the spill. The sampling program
agencies. The following occurred in 1999 Ministry of the Environment concerning was developed with the cooperation of
and had a potential for impact on the restoration of the sites where acid was Ontario’s Ministry of the Environment.
environment beyond Noranda’s facilities. spilled. The restoration plan should be Water samples were collected for determi-
finalized in October 2000. nation of dissolved oxygen, temperature,
COPPER & RECYCLING conductivity, pH levels and dissolved
Mines Gaspé ZINC metals. Results from the sampling concluded
Mines Gaspé experienced two internal CEZinc that the metal loading from the untreated
spills in 1999: In January, 45 cubic metres of pond water water was within the range of normal
• In January, an expansion joint in the were discharged due to a broken pipe at variation and did not produce a detectable
main pipeline leaked during a transfer of the valve station. The plant’s Emergency change in water quality. Noranda is review-
acid between the plant’s holding tanks and Response team responded immediately and ing all operating procedures and its water
the shipping tanks, resulting in a loss of cleaned up the spill. treatment facilities in an effort to prevent a
21 tonnes of sulphuric acid. The acid was similar incident from occurring.
neutralized on-site and a nearby salmon Heath Steele mine
river was not adversely affected. Actions A leak in a pipeline that transports con-
were taken by plant personnel to resume taminated water from a nearby closed mine
the safe transfer of acid. site for effluent treatment at the Heath
Steele water treatment plant was discovered
during a routine inspection in October
1999. The estimated rate of leakage was
below the break detection level for the
system. An unknown quantity of contami-
nated water escaped into a nearby lake
before the pump was shut down. An
investigator from the New Brunswick
Department of the Environment collected
water samples. An internal investigation
is ongoing.

24 Noranda – 1999
Printing: Somerset Graphics Inc.

CODE OF ETHICS SUMMARY

• 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

• We do not attempt to improperly holders with top-quartile returns and


influence the decisions of others to enhancing the value of their investment
obtain or retain business • We are committed to being fair and
• We seek out and listen to the ideas and honest with business partners
concerns of our stakeholders
• We obey all laws applicable to the
conduct of our business

CORPORATE INFORMATION

General Inquiries Version Française Imagine ADDITIONAL


For further information about On peut se procurer la Noranda, along with 430 INFORMATION
Noranda, please contact: version française du présent other Canadian companies, Falconbridge Limited
Department of Public Affairs rapport en en faisant la is recognized for its commit- Falconbridge has produced
and Communications demande auprès du service ment to implementing its own Sustainable
Writer: Tony Leighton

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

éspañol de este informe, retired employees to increase 95 Wellington Street West,


tenga la bondad de enviar su their personal donations and Suite 1200
solicitud al Departamento volunteer involvement. Toronto, Ontario M5J 2V4
de Communicaciones, a
la dirección que aparece a
la izquierda.
Strive
ENVIRONMENTAL POLICY
Commit
STRIVE to be exemplary
leaders in environmental
Design
IMPLEMENT site-specific
environmental, health, hygiene,
COMMUNICATE openly and on
a timely basis with employees,

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

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