MMG releases its 2013 Sustainability Report

30 May 2014 11:30 AMMedia Release

MMG Limited (MMG) (Stock Code 1208.HK) is pleased to release its Sustainability Report for the year ended 31 December 2013.

Highlights from the 2013 Sustainability Report include:

  • A 20% reduction in the total recordable injury frequency rate (TRIFR) (per million hours worked) from 3.0 to 2.4 and 29% reduction in the total lost time injury frequency rate (LTIFR) from 0.7 to 0.5.
  • Social investment of US$17.9 million benefiting communities in and around our sites.
  • Increased traction with workforce localisation programs, including 100 Lao nationals promoted to management roles and 26 Democratic Republic of the Congo nationals achieving management certifications.
  • Implementation of 14 energy efficiency projects, realising cost, process, energy use and emissions improvements.
  • Implementation of a new organisational design framework called the Operating Model to simplify business processes and standards, achieving further alignment to the ICMM’s Sustainable Development Framework.
  • Record production at Kinsevere and Sepon and excellent cost management in difficult conditions.

Commentary from Chief Executive Officer Andrew Michelmore:

“Operating an international mining company involves thousands of daily decisions that contribute to social, environmental and economic performance. How we balance those decisions, and associated judgements, trade-offs and commitments, defines the performance and reputation of our Company.There is one area we focus on above all others – safety. In our commitment to zero harm, there are no trade-offs or compromises. It is simply the pursuit of an injury-free workplace and healthy employees and communities. We track our safety and health performance by measures represented in this report. On many of these we are showing sustained, long-term improvement. On the ultimate test – the elimination of workplace fatalities – we did not meet our commitment.

On 10 June 2013, Mr Daola Phoumixay passed away in Savannakhet Hospital, following injuries suffered earlier in the day while tree clearing near the Western Tailings Storage Facility at Sepon mine in Laos. Our deepest sympathy goes out to his family, relatives and friends and, as a management team, our resolve remains that this must be the last fatality at MMG.

Our Sustainability Report describes the way we approach our safety commitment, our overall sustainability performance in 2013, and covers how we manage our business to the broader expectations, and for the benefit, of our many stakeholders.

The year in review was one of consolidation and building a platform for growth. We delivered strong operating performance and production. This was critical during a period where prices for our major commodities fell, but our commitments to communities remained in place.

In partnership with the Government of Laos, we celebrated ten years of production at our LXML Sepon mine and over US$1 billion in contribution to the Lao people.

We successfully increased production at Kinsevere to ‘nameplate’ levels while continuing strong contribution to local communities surrounding the mine in the southern part of the Democratic Republic of the Congo.

We completed a Stakeholder Impact Assessment and 15-year review of the Gulf Communities Agreement that governs many aspects of Century mine’s presence in the Gulf region of northwest Queensland. We also continued to consult stakeholders on the implications and stages of the completion of open-pit mining at Century, now planned for mid-2015.

Also in north-west Queensland, near Cloncurry, we worked toward the development of the Dugald River project – an underground zinc mine, with a dedicated trial stoping plan for 2014 to be completed before we make a final development decision on the mine.

We also continued to drive our belief – we mine for progress – through every aspect of our approach to employees, communities and stakeholder partnerships. From our joint initiative with The United Nations Children's Fund (UNICEF) and the Lao Ministry of Health to distribute zinc micronutrients in the provinces surrounding Sepon mine, to the strong, ongoing support from major shareholder, China Minmetals Corporation, we base our success on collaboration and partnership.

Our 2013 Sustainability Report describes a company working hard to earn the right to grow, sustainably and responsively. It presents a clear acknowledgement that we will only be successful if the benefits of that growth are shared.”

For further details please download the full MMG Limited 2013 Sustainability Report.


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