Sustainability

Our Approach

Business strategy and sustainability go hand-in-hand. Sustainable development is a cornerstone of Alumina Limited thinking and business.

Alumina Limited's strategy is to participate in bauxite mining, alumina refining and selected aluminium smelting operations globally, solely through our 40 per cent interest in Alcoa World Alumina and Chemicals (AWAC).

Our partner, Alcoa, owns 60 per cent of AWAC and is the manager/operator.

Alcoa is a recognised world leader in sustainability listed on top of the 10 Most Sustainable Corporations in the World. See: Alcoa Named to Dow Jones Sustainability Index for 7th Consecutive Year Alcoa developed in 2000 a 20 year - 2020 Strategic Framework for Sustainability. The framework is built around six focus areas and includes long-term targets and short and long-term metrics for sustainability. These overarching targets are applied to the operations of the AWAC enterprise.

Alumina Limited fully supports Alcoa's 2020 Sustainability Framework objectives and initiatives.

Alumina Limited fundamentally believes that health, safety and environmental outcome impact profitability and returns for the Company's shareholders, employees, the communities in which AWAC operates and other stakeholders.

In managing profitable sustainable growth, we recognise a number of specific challenges to the AWAC business out of the 2020 Sustainability Framework.

Sustainability challenges:

25 per cent reduction in Greenhouse Gas (GHG) emissions by 2010, compared to a base year of 1990
returning the natural biodiversity of mined areas
reducing freshwater consumption to target
10 per cent reduction in energy intensity by 2010 compared to 2000
zero fatalities and lost work day or recordable injuries
low cost, reliable energy source
sustainable community development

In meeting these challenges while growing a sustainable business to improve shareholder returns, Alumina Limited has identified a number of risks:

Commercial risks -

Market Risk - adverse changes to the alumina and aluminium markets
Foreign Exchange risk - adverse movement in the aluminium price
Price Risk - adverse change in the price of aluminium
Operating Cost risk - increase in operating and raw material costs
Economic conditions - impact of adverse economic and political risks

Climate change risks -

Regulatory risks - impact of Emissions Trading Scheme and breaching of operating conditions
Impact on energy price and availability
Production risk - natural disasters or major accidents or operational failures
Community risk - loss of community support or environmental issues

Alumina Limited and our partner in AWAC, Alcoa, have strategies and systems in place to meet the challenges and manage the potential risks.