Responsible Mining Stable Growth 2007

7/29/2019 Responsible Mining Stable Growth 2007

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Myanmar Ivanhoe Copper Company Limited


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Myanmar Ivanhoe Copper Company Limited (MICCL) is a 50-50 joint venture company that is

owned by Mining Enterprise No. 1 (ME-1), an agency o the Ministry o Mines o the Union o

Myanmar, and Ivanhoe Myanmar Holdings Limited ( IMHL), which is owned by the Monywa

rust. Te Monywa rust, an independent, third-party trust, acquired interim ownership o

the IMHL interest rom Ivanhoe Mines Ltd. on February 27, 2007. Te Sabetaung-Kyisintaung

(S&K) Mine, located in central Myanmar, is an open-pit, heap-leach copper mine operated by

MICCL. Currently, the mine is operating at a capacity o its initial design capacity 25,000 tonneso copper per year.

MICCL successully continued three international certications in 2007:

the AS/NZS 4801 Certicate relating to Occupational Health & Saety Management;

the ISO 9001 Certicate relating to Quality Management; and

the IS0 14001 Certicate or Environmental Management.

MICCL also maintained its cathode quality in accordance with LME Grade A specications. MICCL is

striving to maintain a Best Practices international perormance standard throughout its operations,

while achieving continual improvements in quality, environment, health and saety standards.



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ContentsForeword 4

OurPolicies 6

Certicates 7

OverviewofOperations 8

About MICCL

Location

Ownership

Mining History o Monywa Area

Ore Reserves

Mining Operation

Plant Operation Overview

Crushing, Stacking and Heap LeachingSolvent Extraction and Electrowinning

Production argets

Safety,OccupationalHealth& 18EnvironmentalManagementintheS&KProject

Safety,Health&CommunitySupportInitiatives 20

Saety Perormance

Health Perormance

Environment 29

Environment Management Systems

ComplianceIncidents

Issues & Actions

Water

Land

Air

Waste

Energy & Emissions

Dangerous Goods

Community

Objectives and argets 2007Management Plan or Improvement

o Saety Perormance 2008

CompetencyTraining 46

echinal/rades raining

Saety and Environmental raining

NewProjects 53

Introduction

New Diesel Fuel FarmAgitation Leaching Plant Modication

Fines Screening Plant Extension

Residue reatment Plant

VericationStatements 55Glossary 56


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4 | Saety, Health & Environmental Report

Foreword

Chairmans Message

Year 2007 demonstrated as a record year in terms o mines production a total tonnage,

ore plus waste, o about 23.4 million tonnes. Tis reects the eciency/productivity o the

new mining equipment operated by well-trained operators under good supervision. I would

like to congratulate the mining team together with the management or this achievement.

Record waste extraction (16.3 million tonnes) should not have gone unnoticed. Te

S&K pits have been waste bound or last 3-4 years due to the insucient mining equipment.

For the rst time in its operational lie span that pits have been running well without this

waste bound issue.

Under this workload, achieving 5 million man-hours Lost ime Injury ree was an

honorable record in Saety which was the outcome o the dedication o workorce and the

commitment o management to maintain good saety perormance in all work areas.

Successully maintained ISO 14001 certication was also attributable to the teams

concerted eort and again a relect o dedication towards environmental protection

commitments.

Despite high copper price and increased mine production, cathode production was much

reduced due to lower ore grades as the pits get deeper and to some operational downtime

mainly caused by reagent shortage. Tis reects the need o a robust supply/ purchase

activities that would ensure timely arrival o consumables, sucient quantity o stocks.

Forthcoming year, 2008 is to be viewed as a much more stable year in terms o supplies,

copper sales, and the production. With MICCLs traditional high team-spirit supported by

Management Boards guidance, I trust the targets could be achieved.

U Hla Tein

Chairman



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Saety, Health & Environmental Report | 5

General Manager

s MessageDuring 2007, MICCL demonstrated as world class mining operation. MICCLs commitment to

the stake holders continued with much activity in the Saety, Health and Environment area. Tese

activities have been worked closely with our auditors Societe General de Surveillance (SGS).

MICCL voluntarily suspended ISO 14001 in May 2007 to gain more time to develop an

eective plan to take corrective action regarding some issues raised in the November 2006 SGS

audit.

Te Management plan or the Immediate Action Plan and Long erm Action Plan were

developed in June 2007 by MICCL sta based on their past experience. Te suspended MICCL

ISO 14001:2004 Environmental Management System Certicate was reinstated by the SGSAccreditation Body on 11th December 2007 ater taking all the remedial actions listed in the

action plans and upon verication o all clauses o the ISO 14001:2004 standard identied

during the SGS audit process in November 2007.

Consideration or the environment is an important part o the MICCL culture; a ew project

works or the repairing o storm water ponds, constructing wet land-3 and tidying the Pad-2 lay

down yard were initiated during this year.

Te Saety practitioner attention in giving inductions to the workorce has maintained a high

standard o vigilance in the working area. Te workorces attention to saety practices is reected

by a measurable improvement in the working area o the production and project works.

MICCL has retained the much prized certication guidelines o AS/NZS 4801, ISO 9001

and ISO 14001 or some years now and these standards should be maintained and improved

upon or supporting o MICCLs uture development.

Cathode copper production o 17777 tonnes in this year ell below the design capacity o

25000 tonnes due to the delayed delivery o the reagents and spare parts o the heavy mining

and process equipment. During this year MICCL has seen many challenges particularly with the

ongoing procurement and supply crisis.

Trough out 2007 MICCL enjoyed the support o our Joint Venture partners and stake

holders. With their continued and wholehearted support MICCL should be able to reposition

itsel to once again achieve the design cathode copper production rate. MICCLs objective is toproduce cathode copper or export to the world with a sae workplace or our employees and a

minimum impact on our surrounding environment.

My thanks to all MICCL sta and employees or their diligence and loyal support during

the year.

Glenn Eric FordActing General Manager



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Our Policies



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Certifcates



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Overview oOperation

Te Sabetaung - Kyisintaung (S&K) Mine is located in Monywa District, Sagaing

Division. Te mine is on the west bank o Chindwin River and on the east bank

is Monywa, the capital o Sagaing Division. Chindwin is the biggest tributary o

Ayeyarwaddy (Irrawaddy) river, the longest navigable one in Myanmar owing rom

north to south.

S& K mine site is one o the best mines in Myanmar in terms o its close proximity

to the Monywa Urban area where more than 500,000 peoples live. Monywa is only

120 km by road rom Mandalay, the second Capital o Myanmar. An area which has a

lot o ancient pagodas and monasteries, Monywa has a long history.

Te Mine site is just 40 minutes drive away rom Monywa by an all weather road

across the Chindwin bridge. It is located in the semi-arid area with about 700mm

annual rainl all, where shrubs and Palm trees are common. Te landscape around is

more or less rolling with small hills.

About MICCL

Location



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Myanmar

China

Laos

Thailand

India

Bangla

desh

Mandalay

Yangon

Chiang Mai

Bangkok

Monywa

Andaman

Sea

Bay of

Bengal

OwnershipMyanmar Ivanhoe Copper Company Limited

(MICCL) is a 50-50 joint venture company that

is owned by Mining Enterprise No. 1 (ME-1), an

agency o the Ministry o Mines o the Union

o Myanmar, and Ivanhoe Myanmar Holdings

Limited ( IMHL), which is owned by the Monywa

rust. he Monywa rust, an independent,

third-party trust, acquired interim ownership o

the IMHL interest rom Ivanhoe Mines Ltd. on

February 27, 2007.


Mining History o Monywa Area1930s British administration conducted regional geological studies.1950s Burma (Myanmar) Geological Department surveyed the area with Yugoslav counterparts.1972 Te Japanese Government gave technical and nancial assistance or more denitive drilling.1978 An agreement was signed between ME-1 and the Bor Copper Institute o Yugoslavia to develop

the S&K deposits.1984 An 8,000-tonne-per-day (tpd) copper mill operation was started.1994 ME-1 and IMHL signed a easibility agreement to develop the copper deposits in the S&K area and

nearby Letpadaung.

1995 A 1 tpd Pilot Plant was built to conrm the process suitability and also to train Myanmar technicians.1996 A two-year study culminated with positive outcomes.Based on extensive drilling (905 drill holes with a total length o 118,538 metres), a leaching test andPilot Plant operations, MICCL was ormed as a joint-venture between ME-1 and IMHL.

1997 A 25,000-tonne-per-year SX-EW plant was constructed.1997 Ater an extensive drilling programme at Letpadaung, a easibility study to develop this project was

completed and submitted.1998 Cathode copper production began.2002 Expansion o the project to 28,000 tpy o cathode copper production began.2003 Te project was expanded to 31,000 tpy.2004 Te project was urther expanded to 39,000 tpy.2005 A High-Grade Ore Agitated Leach Plant was commissioned or 13 t/h ore capacity.2006 High-Grade Ore Agitated Leached Plant was modied to improve leaching and to stabilize the operation.

New policy dened clearly the limit o high-grade ore deposit to optimize leaching. GRD Minproc study to

combine the Sabetaung pit and Sabetaung South pit.2007 New Diesel Fuel Farm was constructed to increase storage capacity.

Fine Screening Plant extension was made to increase throughput.Residue reatment Plant was constructed to recover more copper rom residue.


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Ore ReservesPit re-optimization on the Sabetaung and Sabetaung South deposits was completed in 2006 with

consultants rom GRD Minproc, Australia.

Mineral resources and reserves at the S&K Mine as are shown below:


Mineral ResourcesDecember 31, 2007(3)

Deposit Measured Indicated Inerred otal

onnes Grade(1) onnes Grade(1) onnes Grade(1) onnes Grade(1)

(millions) (%)Cu (millions) (%)Cu (millions) (%)Cu (millions) (%)Cu

Sabetaung 25.689 0.31 41.101 0.21 3.526 0.26 70.316 0.25

Kyisintaung - - 317.4 0.3 47 0.22 364.4 0.29

Letpadaung 577 0.44 492 0.36 409 0.31 1478.00 0.38

Ore ReservesDecember 31, 2007(3)

(1) Cut-o grades or Sabetaung is 0.08% Cu.

Deposit Proven Probable otal

onnes Grade(1) onnes Grade(1) onnes Grade(1)

(millions) (%)Cu (millions) (%)Cu (millions) (%)Cu

Sabetaung 25.698 0.31 41.101 0.21 66.79 0.249

(1) Cut-o grades are 0.08% or Sabetaung, 0.15% or Kyisintaung and 0.10% or Letpadaung.

(2) onnage decimal places not shown.(3) Sabetaung mineral resources are as at 31 December 2007, based on optimization July 2006 and

Model November 2005.

(4) Kyisintaung mineral resources are as at July 2006, Model September 2000.


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Mining Operationhe S&K Mine consist o three copper

ore bodies: Sabetaung, Sabetaung South and

Kyisintaung. An additional potential large-scale

copper ore body, Letpadaung deposit, is located

nearby.

At present, the Sabetaung and SabetaungSouth pits are being mined, with approvals being

sought or the development o the Kyisintaung and

the Letpadaung deposits. Current strategic planning

provides or an open pit to be excavated into each

o these deposits. During the 2007 calendar year,

8,470,352 tonnes o ore at 0.32% copper and

14,918,633 tonnes o waste were mined rom the

two Sabetaung pits, a total o approximately 23.39

million tonnes and an increase on the previous year

Te MICCL present mining eet consists o the

ollowing equipment:

3 Wheel Loaders Caterpillar 992G

4 Wheel Loaders Caterpillar 992C

4 Excavators Daewoo 500LCV

2 Excavators Caterpillar 345B

1 Excavator Caterpillar 320B

8 Dump rucks Caterpillar 773B

15 Dump rucks Caterpillar 777D

1 Drill Rig amrock D55SP

1 Grader Caterpillar 16H

2 Graders Caterpillar 16G

3 rack Dozers Caterpillar D9R2 rack Dozers Caterpillar D7R

1 Wheel Dozer Caterpillar 824C

2 Water rucks Caterpillar 773B

o 9.90 million tonnes. Tis increase was achieved

rom the additional pieces o equipment brought

in November 2006.

Te majority o the Caterpillar equipment is

relatively old, having been transerred rom ME-

1 to MICCL in 1997 and reurbished over time.Tree (3) new Caterpillar 992G Wheel Loaders,

nine (9) new Caterpillar 777D Dump rucks, two

new Caterpillar D9R rack Dozers and one new

Caterpillar 16H Grader were commissioned in

2006.


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Plant Operation OverviewAter mining and crushing, the processing o the ore to produce saleable copper involves three stages:

Heap leaching to dissolve the valuable copper rom the chalcocite ore.

Solvent extraction to puriy and concentrate the copper solution generated by leaching.

Electrowinning to plate the copper as high-grade cathodes.


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Te processing o the mined ore to produce

saleable copper relies on three stages:

Heap leaching to dissolve the valuable copperrom the chalcocite ore.

Solvent extraction to puriy and concentrate the

copper solution generated by leaching.

Electrowinning to plate the copper as high-grade

cathodes.

Normally, the ore rom the mine pits is

crushed in a two-stage crushing circuit that

reduces the maximum rock size rom a diameter

o approximately one metre down to an average

o 30 millimetres. Te crushed and sized ore isagglomerated with a diluted sulphuric acid solution

in a steel drum and transported along a series o

belt conveyors to properly-prepared leach cells.

Problems have been experienced with the

high proportion o clays in some o the S&K ores.

Tese materials make the ore heaps impermeable

and reduce leach recovery. Tereore, the crushing

circuit has been modiied by adding a Fines

Screening Plant (FSP).

At the primary crusher, mined ore is crushed

to a maximum passing size o 230 millimetres.

Te crushed product passes through the primary

screens, with oversized (+40mm) material crushed

by the secondary cone crushers. Undersized

material (-40mm) rom the primary screen isurther washed and screened in a newly constructed

Fines Screening Plant to remove the majority o the

less-than-63-micron material that also contains

most o the clays present. Tis material is stored in

a specially prepared ailing Fines Storage Facility,

available or treatment in uture. Some coppers are

recovered in pipe reaction during transportation to

tailing dams, and recovery is about 50% o copper

content rom nes product.

All o the de-slimed products greaterthan 63 microns in size are combined with

discharge materials rom secondary crushers,

and are conveyed to an agglomerating drum.

Te agglomerates produced consist o the larger

particles o ore coated with the ner particles

by the tumbling action o the material within

the drum. he agglomerated ore passes via a

conveying system to a radial stacker that allows

the ore to be placed onto a heap to an even height

at 3 metres. In March 2007, agglomeration was

by-passed because the inlet chute was requentlyblocking and causing down time again and again.

Tere are no changes in recovery with or without

agglomerator operation o stacked cells.

Crushing, Stacking and Heap Leaching


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Each heap or cell is approximately 700

metres long and 80 metres wide, containing some

300,000 tonnes o agglomerates that appear as a

homogeneous, semi-porous structure amenable

to leaching. Te crushed, washed and stacked ore

comprises blending o 60% o the least competent

material and 40% o good competent ore available

rom the mine at the time.

Due to the limited throughput o the

crushing section, run-o-mine ore is also directly

placed onto the leach cells by truck-dumping

(ROM Ore Dumping). ROM ore dumping involves

building a ramp onto a cell to a our-meter height

and then tipping ore directly over the ace to the

oor below. Te ROM ore received rom the mine

contains both ne and coarse ractions.

Te height o the heap is strictly controlledto our meters with a tolerance o 0.3 metre, using

bulldozers. Te ROM-dumped ore in the body

o the heap is careully selected to be the most

competent available material rom the mine pits.

Te heap surace is ripped to one metre depth

beore installation o irrigation pipes.

Ore character is pre-determined rom drilled

chip samples in a metallurgical laboratory. Quality

control personnel are assigned to supervise the

process o selecting whether ore is sent to thecrusher or to ROM dumping cells, according to

the ores competency level.

A continuous cell-expansion program has

been implemented to provide the large areas

required to store the inventory o ore necessary

to maintain the higher-than-design production

levels. At present there are three leach pads with

37 cells at the optimal our- metre height.

Te stacked ore is irrigated using either anetwork o pipes and low-pressure sprinklers,

called wobblers, or by drip irrigators. A diluted

sulphuric acid solution containing high levels o

dissolved iron is used to extract the copper rom

the ore. Te acidic solution is ormed naturally

rom the heaps by the accelerated weathering o

the rocks, which contain pyrite, an iron sulphide

mineral. Naturally occurring bacteria catalyze this

reaction and, consequently, the process is termed

bio-heap leaching.

Te base o each heap is lined rstly with a

300-mm-thick clay layer and then a plastic liner

that in turn is covered by another clay liner to

prevent copper solution loss and to protect the

acidic solution rom seeping into the ground

water system. Each heap is constructed on a slight

slope, so that the solution containing the dissolved

copper percolates down through the heaps to

the liner and then ows downhill into a series

o collection channels that drain into a system

o plastic-lined ponds. Te solutions containingthe highest copper grade are directed into the

pregnant leach solution, or PLS, pond. While some

o the less concentrated solution is pumped back

rom intermediate solution pond, or ILS, onto the

heaps to extract more copper, the PLS solution is

pumped to the solvent-extraction plant.

his solution not only contains copper,

but also impurities such as iron that have to be

removed beore the inal electrowinning step.

Solution management to and rom heap cells isstrictly controlled on a daily basis.

Te copper grade o some reaches between

5% and 10%, higher than the normal grade o

about 0.4%, and such ores are treated separately

in one-metre-high heap cells or in the agitation

leaching plant. Te ore is crushed to -12mm in two-

stage crushing, ground to -150 micron metre and

then leached in tanks with ranate solution. Te

leached slurry is sent to the residue pond. Te clear

solution, which is the pregnant leach solution, isrecovered rom the pond. Tat rich solution is

sent back to the PLS pond. Te remaining residue,

containing relatively high-grade copper (about 3%

to 4%) is stored in the plastic lined residue pond or

re-treatment. Agitation leaching plant is modied

its ow sheet to add a scrubber unit parallel to the

Primary Crusher especially or the raining season,

to avoid the wet ore coming into the crusher and

increase through put in the agitation circuit rom

13tph to 35tph. It would be on line in the wet

season this year.


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Solvent extraction involves the selective

extraction o the valuable copper rom the PLS

into an immiscible organic phase, consisting o

a complex organic extractant dissolved in high-

ash-point kerosene. Ater separating the aqueous

and organic phases using gravity, the valuable

copper then is stripped rom the loaded organic

phase using a highly acidic electrolyte, called spent

electrolyte, returned rom the electrowinning

tank-houses to produce an enriched electrolyte,

known as the strong electrolyte. Te low-copper

aqueous solution rom the extraction stage

(ranate), which becomes higher in acid content,

is returned to the leach cells to recover more

copper, while the strong electrolyte is sent to the

tankhouses or electrowinning.

Te key to the solvent-extraction process

is the acidity o the aqueous phase. At low-acid

concentrations, copper is extracted into the

organic phase, but this reaction reverses at

elevated acid concentrations. Te extraction and

stripping stages o the solvent-extraction process

take place in mixer-settlers. Tese consist o a

series o tanks in which the immiscible organic

and aqueous phases are intimately mixed together,

allowing the extraction (or stripping) reactions

to occur prior to owing into a large settling tank

where the two immiscible phases separate again,

Solvent Extraction and Electrowinning

with the lighter organic phase rising on top o

the heavier aqueous phase. At the exit o the

settling tank, the two phases are separated using

an arrangement o collection weirs.

Following expansion steps completed in

October 2004 that added a urther 86 electrowinning

cells, there now are two electrowinning tank-

houses at MICCL operating on our electrical

circuits. Tere are 104 electrowinning cells in the

original tank-house (ank-House-A), with each

cell containing 46 inert, lead-alloy anodes and 45

stainless steel cathodes. Te expanded tank house

(ank-House-B) has a total o 122 cells, where each

cell contains 15 inert, lead-alloy anodes and 14

stainless steel cathodes. Te rich copper solution

(electrolyte) is distributed between these cells.

A direct electrical current is passed between the

anodes and cathodes and metallic copper is plated

rom the electrolyte onto the cathode surace.

Approximately 2,200 kWh o power is required

to electrowin one tonne o cathode copper.

he cathodes are stripped every seven

days, each producing two sheets o high-purity

copper weighing approximately 50 kg. Te sheets

are washed, sampled, weighed and bundled or

shipment. Sampling is being carried out on an

80-tonne-lot basis and the analysis is done at an



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Te S&K Project was originally designed with a

production capacity o 25,000 tonnes yearly, which

has been achieved since year one. Te project has

been expanded stage by stage and the plant has

now a production capacity o 39,000 tonnes peryear. However, only ank-House-A was in operation

in 2006 due to low heap leach production, which

stemmed rom low Mine ore production.

ProductionPerormance


Cathode Copper Production 1999 to 2007

Monthly Cathode Copper Production or 2007

oshore laboratory. MICCL produces copper that

complies with the London Metals Exchange Grade

A rating, and is more than 99.99% pure.

he heap-leach/SX-EW process is an

environmentally riendly way to economically

produce high-grade copper rom low-grade ore

deposits.

MICCLs Sabetaung and Kyisintaung project

is a zero-discharge operation, and all solution

ows are re-circulated to ensure that no efuent is

discharged rom the mine to outside lease area.


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Saety, Occupational Health &

Environmental Managementin the S&K Project

MICCLs Integrated Management Systems policy provides the oundation or

sustained, high quality, Saety, Occupational Health & Environmental perormance.

Standard operating procedures and Departmental instructions provide sae work

systems and both internal and external audits provide assurance and eedback orimprovement plans.

MICCLs approach to management o Saety, Occupational Health & the

Environment (SHE) management relies on:

Line management ownership and responsibility or SHE perormance.

Clearly documented SHE objectives and targets or line management and

employees through management programs.

Te provision o training to help supervisors and employees identiy hazards,

potential injuries and to encourage personal action to minimize risks.

Going orward, MICCLs SHE strategy will continue to insist that supervisors beuncompromising in their demands or adherence to SHE standard procedures; that,

through job-saety analysis and task observation, attention be directed to the potential

or incidents to cause serious harm or loss; and that training, involving competency

assessment and cross-learning throughout the organization, be actively promoted.

MICCLs commitment to saety, occupational health, the environment and product

stewardship is unwavering. MICCL manages all its activities with concern or people,

communities and the environment and conducts its business or the benet o society

without compromising the quality o lie or uture generations. Tis is MICCLs commitment

to ensuring a long-term, sustainable business that is socially and environmentally

responsible and provides a good return on investment to the shareholders.



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Saety, Health & Community Support Initiatives


Saety PerormanceMICCL is committed to protecting its

employees rom injuries and occupational

illnesses.

On April 22, 2003, MICCL introduced an

Occupational Health & Saety Management

System (OHSMS) based on the AS/NZS 4801:2001

standard. he implementation o eective

occupational health and saety (OHS) managementactions can assist in meeting legal requirements

and can lead to sustained improvement in OHS

perormance.

Personnel are the organizations greatest

assets and occupational health and saety risks

associated with MICCLs activities need to be

reduced and eectively managed. MICCL believes

that all injuries and occupational illnesses are

preventable and places heavy emphasis onhazard identication, risk assessment and hazard

control. Procedures or Hazard Identiication

and Risk Assessment (HIRA) were developed

and implemented based on AS- 4360 standard.

Risks are evaluated and registered within each

department and also or the entire operation.

Identied risks have been controlled through a

preerred order o control methods (commonly

reerred to as a hierarchy). Saety objectives and

targets have been established, based on the risk

ranking, and detailed management programs or

achieving those objectives and targets also havebeen developed.

Job Saety Analysis (JSA) is the primary risk

assessment and management technique used or

all operational activities. ask-list development,

job- saety analysis and ri sk assessment are

perormed in a team-based environment.

Te Departmental Management Plan (DMP)

or each department was reviewed and revised tocomply with the latest development within the

department.


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Personnel shall be competent to perorm

tasks that may impact occupational health and

saety in the workplace. MICCL has established

education, training and awareness schemes to

ensure that all personnel have the necessary

capabilities and skills to perorm their tasks

saely.

Health and saety competency assessments,

including identication o hazards, risk assessments,

and the elements o operational control and

emergency response, were conducted with each

employee to ensure that health and saety risks are

controlled to prevent harm rom occurring.

One Lost ime Injury (LI) occurred and at

the end o the year the Lost ime Injury FrequencyRate (LIFR) improved by 7%, decreasing rom0.28

per million hours worked in December 2006 to

0.26 by December 2007, lower than the companys

target o 1.0. A total o 32 workingman-days were

lost due to the single LI accident. Tere was no

compensated injury in 2007.

Although the organization as a whole did

not have a perect saety perormance record,

some departments achieved over 3,400 LI reedays with over 3.5 million hours worked. Saety

awareness needs to be maintained by conducting

regular workplace inspections, close supervision

and saety talks in departmental meetings and tool

box meetings.

A total o 161 incidents occurred during

2007, with ve ranking high risk, 62 o moderate

risk and 94 low risk. Tere were 147 incidents

reported during 2006.

Te 5 high-risk incidents were as ollows:

rack Dozer (DZ-04) ell down to the let side

on 16th January.

Light vehicle (LV-35) drove across behind

the Dump ruck (D-09) which waited to be

reversed on 4th February.

Fire out break beside Mine own to Main Head

Oce (MHO) road in expatriate camp area on

13th February.

Lightning strike to phone switch board on

13th June.

(14) Nos. o High ension (H) concrete power

poles ell down by hitting o Dump ruck (D-

11) when reversed on 10th October.

A Moderate-Risk incident prevented the LI

rate being reduced to zero.

An employee rom Mining departmentdislocated and ractured let shoulder joint when

she tripped on a branch and struck against the side

o a vehicle in ront o oce on 7th September.

Most o the incidents involved equipment

damage with 105 incidents reported. A total o 26

personal injuries with 1 LI, 21 MI and 4 FAI, also

were reported - less than the 27 injuries recorded

in 2006. Most accidents were due to negligence or

ailure to ollow MICCL saety rules.


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Reviews o the incidents produced the

ollowing conclusions:

Equipment Failure incidents were the most

common in 2007, causing equipment damage.

Medical treatment injuries were caused by

ailure to ollow established procedures strictly

and lack o saety awareness and ailure to

properly use personal protective equipment

(PPE).

First-aid injuries were caused by not astening

the guard properly, stepping onto High Density

Poly Ethylene (HDPE) pipe, bending hinge

plate incorrectly and cleaning sticky ore with

awkward position.

Based on the above points, the ollowing

actions were recommended to reduce incidents

in general:

Enorce and record ool Box Meetings eectively

within the organization.

ighten up saety rules, especially use o

proper personal protective equipment(PPE),

appropriate to the tasks perormed(ool

Box Meetings, routine site inspections and

recording).

Organize worksite supervisors to explain the

hazards o the tasks to the employees, especially

temporary employees (Weekly Saety Meetings

and ool Box Meetings).

Enorce reporting o all kinds o incidents and

investigate thoroughly; take corrective actions

to prevent recurrence (Departmental Action

Register).

Contractors and temporary employees

make up a large portion o MICCLs workorce,

especially in project activities. We recognize thatthe temporary operators and workers may be

more at risk o injuring themselves where they

are unamiliar with MICCLs operations, and

are undertaking non-routine tasks. hereore,

much o our eorts in the next 12 months will

be devoted to the establishment o sae work

practices, ocusing on contractors and temporary

employees.

A standard procedure was developed orincident reporting and investigation. All incidents

were reported and investigated with the aim o

preventing recurrence within the organization.

Incidents also were classied and analyzed or

common trends.

Classifed by Injury/Damage Year 2007


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Work Place Injuries and Illness(01-01-07) to (31-12-07)

Cathode Copper Production & Lost Time Injury

Items 1999 2000 2001 2002 2003 2004 2005 2006 2007

First Aid Injuries 12 19 15 17 36 37 30 26 25

Lost ime Injuries 1 4 2 6 6 7 2 1 1

otal Injuries 13 23 17 23 42 44 32 27 26

Near Miss 31 69 66 57 38 57 56 30 30

Equipment Damage 80 84 75 125 121 127 96 90 105

otal Accidents / Incidents 124 176 158 205 201 228 184 147 161

LIFR 0.75 1.83 0.63 1.63 1.69 2.00 0.63 0.28 0.26

Cathode Production 26737 26413 25864 27541 27870 31756 34479 19554 17,777


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Health Perormance


Y.I.C Medical Services has been providing

medical services to MICCL and ME (1) at the S &

K Project since July, 1999. Health care coverage

includes MICCL sta and amily members bothat site and in Yangon, ME 1 sta and amily

members, students and teachers o Mine own

High School, police and army personnel guarding

the Mine.

MICCL ClinicMICCL Clinic is mainly responsible or

work-site accidents and medical evacuations and

available 24 hours a day, equipped with lie-saving

acilities and an ambulance. Te clinic also treatsMICCL expatriate sta.

MICCL clinic also organizes and takes part

in the ollowing tasks:

1. Vaccinations o workers as required.2. Regular hygiene check o the MICCL camp

kitchen to ensure the quality o the catering

service.

3. Pre-employment medical check o all new

recruits.

4. Annual medical check o all the sta o

MICCL.

5. Bi-annual medical check o all workers who are

exposed to acid mist in the electro-winning

section o the plant.6. Annual irst-aid training to some sta o

MICCL by Red Cross Society instructors.

7. Emergency response exercises.


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MICCL Mine Town HospitalTe Mine own Hospital takes a major role

in health care o the workers o the S&K project

and their amilies. It is well equipped with a

laboratory, an operating theatre, a dental clinic,

an x-ray machine and a dental x-ray, an ultrasound

machine and modern autoclave sterilizer.

Te hospital building has been upgraded

with renovation o oor and new painting. And

the recording system o the patients treatment

has been also computerized so that paper-works

are reduced to barely minimum.

Te hospital is responsible or:

a. reating patients as in-patients and out-

patients, operations both minor and major,immunizations and medical checks or the

public.

b. Community health services which covers

1. School Health activities.

2. Regular care o pregnant mothers.

3. Care o under-one-year child including

vaccinations.

4. Prevention and control o hepatitis B

5. Prevention and control o blindness due to

vitamin A deciency.

6. Periodic control and health education to the

community regarding Dengue Haemorrhagic

ever.

Te overall outlook o the hospital has been

improved by tree planting and landscaping o the

hospital grounds. Te appearance o the hospital is

now very dierent rom that o nine years ago.

Medical Services in Yangonhe Y.I.C. Medical Services in Yangon

provides ree medical health care including

ree pre-employment medical examinations,

medical checks, ree medical consultations and

medicines, ree laboratory investigations (but

not specialist consultations and hospital care)

to all Board Directors and their amilies, IMHL

oce sta and their amilies, and mine-site sta

in Yangon on ocial visits. Te total number o

people supported in this way is approximately 150

persons.


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Philanthropic Program, Ivanhoe Mines(Community health care support or residents within a fve-mile radius o the S&K Copper Project)

Care, Education &Clean Water

Te principal mission o the Ivanhoe Mines

Philanthropic Program is to upgrade community

health and living standards or amilies within a

ve-mile radius o the S&K Copper Mine.

Since its inception in 2002, the program

has provided ree medical treatment and earlyhospital care to pregnant women and children

under ve years. It also provides health education

and other orms o direct assistance, including

helping people to build ly-proo latrines and

secure supplies o sae drinking water.

Te program was developed and implemented

by IMHL Management, MICCL Management and

YIC sta o Mine own hospital. A decision was

made in 2006 to expand the very successul

program. Eective January 2007 the Ivanhoe

Philanthropic Program will begin providing

Extended Health Care services, including

emergency medical treatment, to all people living

within the service area.

Services to 25,000 People

Te service area covers 26 villages and the

Mine own community. Tere are 4,418 houses

or a total population o approximately 25,000

including 2600 people under the age o ve (10.5%

o total population). Te actual numbers uctuate

slightly due to MICCLs occasional and variable

requirements or casual workers who sometimes

relocate rom neighboring villages.

Mine Town & Employees Population

Sr. No. Departments Population

1 MICCL Employee-Permanent 571

2 MICCL Employee-Seconded 192

Sub-otal 763

3 ME-1 Employee 37

4 Mine own Community 2,140

OAL 2,940

Year Out-Patient reated In-Patient reated

1999 8712 353

2000 13592 351

2001 18005 459

2002 25023 571

2003 30417 470

2004 33611 494

2005 38579 519

2006 36548 456

2007 32492 500

Hospital Statistics


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Yearly Philanthropic Hospital Activities

Year

In-patient Out-patient

Maternity Maternity

Surgical

Operation

LiveBirth

StillBirth

Abortion

Other

Total

Under5

GrandTotal

Other

AN-1stvisit

AN-FU

Under5

GrandTotal

Major

Minor

Total

Total

Health acilitiesIn the program area, there is one rural

health center, ve rural sub-health centers under

the Government Health Department and the

MICCL Mine own Hospital.

StafngCoordination and irst contact o the

Philanthropic Program with the community is

provided by one senior sta person, one midwie

and one driver. MICCL Mine own Hospital sta

oer 24 hour medical services to reerred patients

or in-patient and out-patient care.

EducationTere are two State High Schools, our StateMiddle Schools, 16 State Primary Schools, with a total

o approximately 6,000 school children enrolled.

Transport andCommunication

Although ve villages are located close to

the highway that runs rom Nyaungbingyi to

Yinmarbin, access to most o the villages covered

by the health care program is by unpaved tracks.

oday, all villages are accessible year-round

with our-wheel-drive vehicles. Te government

constructed bridge at the Yama Stream is used

to access the six vil lages located on the western

bank o the stream. Mine own has the only

telephone system in the area. o help acilitate

service deliver y, one Jeep vehicle and two bicycles

were provided to the sta o the Philanthropic

Program.

Sr. No Name o disease 1999 2000 2001 2002 2003 2004 2005 2006 2007 Remarks

1 Inuenza 137 368 645 999 1399 1452 2481 2094 2339

2 Conjuntivitis 61 56 55 152 520 173 224 277 116

3 Hypertension 80 78 38 107 167 181 146 101 65

4 Dysentery 81 70 54 92 140 182 178 218 54

5 Dog bite 25 24 25 59 50 36 27 21 36

6 Malaria 26 15 18 41 34 18 24 35 21 Imported

7 Viral Hepatitis 9 7 10 25 22 4 18 18 4

8 uberculosis 4 6 6 14 24 13 21 10 1

9 Snake bite 11 6 6 12 9 11 9 7 15

10 Diarrhea 93 75 59 43 7 1 0 0 21

MINE TOWN HOSPITAL STATISTICSTen Top Leading Yearly Special Surveillance Diseases ( 1999 to 2007 )

2002 59 6 16 22 103 109 212 197 480 23 700 818 1518 40 56 96

2003 98 4 25 23 150 52 202 330 797 137 1264 1972 3236 61 90 151

2004 121 3 15 31 170 74 244 366 939 205 1510 2382 3892 83 117 200

2005 117 2 22 33 174 87 261 351 960 168 1479 2439 3918 84 175 259

2006 120 4 23 38 185 57 242 384 1352 245 1981 1754 3735 82 127 209

2007 120 4 23 38 185 57 242 384 1352 245 1981 1754 3735 82 127 209

otal 515 19 101 147 782 379 1161 1628 4528 778 6934 9365 16299 350 565 915


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diseases and in the upgrading o the communitys

standard o living. Assessments o drinking water

resources in the area are conducted and the supply

o sae drinking water is improved as necessary.

Supporting HealthierCommunities

Te Philanthropic Programs health-care

activities are very productive and beneicial.

Te health-care program is helping children and

adults in communities around the mine to live

in healthier and higher-quality environments

through measures that include the constructionand use o saer, y-proo latrines, increased

provision and use o sae drinking water, early

reerrals and hospital care.

Extended Health CareService

Starting rom 1st January 2007, according

to the decision made by IMHL and Philanthropic

Program, Ivanhoe Mines we have extended the

Health Care Services given to the ve-mile-radius

area.

Previously health care was given to only

those under 5-year children and pregnant women

but starting rom the 1st.January 2007 we have

included Emergency medical treatment to all the

people living in this area. Emergency Medical

treatment means all the persons living in this

area regardless o age and sex can come to the

hospital 24 hours a day with diseases such as

acute attack o Bronchial Asthma, heart diseases,

acute abdominal pain, accidents, snake bites and

dog bites etc....

We have also increased the Medical sta

to cope with 24 hours Extended Emergency care.

Previously rom two public health nurses and a

driver to now one doctor one public health nurse,

one hospital nurse, and two hospital nurse aids

and one driver.

Te public health nurse and driver with a our

wheel drive jeep still travel to the nearby vil lages

to give health education and environmental

sanitation.

Service ActivitiesIn addition to the monthly group health

seminars held at the Mine own State High

School, the health care sta members travel

to villages and hold health education talks at

the local schools and villages elders houses.

Tey work with government health personnel

during clinic days, during the Universal Child

Immunization Days, during the Sub-National

Immunization Days or Polio Eradication., during

the Filarial Program Days and during the Sub-

National Immunization Days or eradication

o Measles. In the villages, sta visits every

pregnant woman and each sick child under the

age o ve, giving them individual health care

and health education. hey visit schools and

houses to inspect sanitation and personal hygiene

practices. oilets and supplies o dr inking water

also are inspected.

As part o the nutrition promotion program,

sta have been monitoring the weight o children

under the age o three in three villages each

month since 2003.

Sta members also work with the Basic

Health Workers and hold joint group-health

education talks.

Sae drinking waterTe use o sae drinking water is vital in

the prevention and control o communicable


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Environment

Environmental Management Systemhe Environmental Management System

(EMS) employed by the S&K Project records and

monitors compliance with stated environmentalpolicies and objectives. Tis compliance has been

demonstrated through MICCLs Societe Generale de

Surveillances (SGS) re-certication to ISO 14001.

he current EMS requires MICCL to establish

environmental plans and to continuously monitor

the environmental impact o the operations.

Four main environmental issues have

been identifed at the S&K project:

1. Acid Rock Drainage (possibly released rommine-pit walls and waste dumps).

2. Dangerous goods (hydrocarbon products,

sulphuric acid and process reagents waste).

3. Land disturbance (land disturbed by extensive

operations).

4. Non-process waste (including rubbish, paper

and plastics, rubber and batteries).

An Environment Management Program has

been developed to control the environmentalissues identied above. Te program is being

actively monitored or potential environmental

impacts.

Results are reviewed or any trends, ndings

are reported and corrective measures are

implemented, i required. Detailed Environmental Control Procedures

have been developed and implemented.

An Environmental Emergency Response

Plan has been established and practiced and

basic training is given to employees o all

departments.

A preliminary Environmental Impact

Assessment is conducted or new MICCL

projects.

A technology transer program has beendeveloped and environmental awareness

training is on going on the site.

All employees are trained to respond quickly

and eectively to environmental impacts and

prompt action to all environmental incidents

will continue throughout the lie o the

operation.

All environmental documents are o high

quality. Records are well stored, maintained

and are easily accessible. Documents arereviewed and updated to ensure continuous

improvement.


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o achieve its status as a world-class mine, the

S&K Project has monitored the eectiveness

o its Environmental Management System byhaving its perormance audited regularly. he

SGS audit team conducted an audit o the MICCL

operation in June 2007. On 4th June 2007 MICCL

voluntarily requested to suspend the ISO 14001

Environmental Management System certicate.

Tis was in response to identiying changes in

monitored levels rom water sampling through

the data collection process carried out at the

minesite and the wish to ensure that an adequate


Compliance

Minor Non-Conormance or Year 2007Audit Issue

Te inormation relating to danger points asidentied on Work Permits are not completedas required and not all precautions are beingnoted apart rom PPE.

It was ound that Competency Assessments werenot being completed or all sta as required.

It was ound that the methodology o rankingrisks (eg. Risk assessment at task level) did not

always match that identied in the DMP, norwere the Risk Action Plans being developed inaccordance to the risk ranking given.

It was ound that SP02 Hazard Identiication,Risk Assessment and Control procedure did notadequately identiy when a Risk Action Plan is tobe raised and still reers to Hazard Action Plans.Tere is also no mention o conducting the Risk

Assessment by ask Level as part o this process.

Te system has been unable to provide adequateevidence that the saety & environmentalmeetings are being conducted weekly as required.

Also it cannot show that all available personnelare attending these.

Action Plan

Danger points identied on Work Permit will bereviewed to get complete requirements and allprecautions also will be noted on Work PermitForm.

All sta will be conducted with CompetencyAssessments within time rame stated in DMP.

he methodology o ranking risks will bereviewed and revised to match as identied in

the DMP, and Action Plans also will be developedin accordance to the risk ranking.

SP-02 has to be reviewed to identiy the adequateHazard Identiication, Risk Assessment &Control Procedure and to revise the conductingbetween Risk Action Plan and Risk Assessmentby ask Level.

raining has to be developed to conduct theweekly meeting regularly to make sure allavailable personnel are attending these meetingand to record the meeting minutes correctlyto provide adequate evidence o conductingsaety & environmental meeting. Complianceschedules must be conducted to match withmeeting records.

management plan could be developed and

implemented to address this issue eectively.

Te management plan developed consisted o both

short and long term corrective and preventive

actions. o assist in this process MICCL sought

external expertise, specically in hydrogeology.

Extensive work was carried out in relation tomapping the hydrology o the site, examination

o existing boreholes and the monitoring regime,

and soil sampling. From these studies, remedial

action was taken during the next six months to

address the identied issues.

In November 2007 an external audit was conducted

by SGS to determine the eectiveness o these

actions. he ISO 14001: 2004 Environmental

Management System Certicate was reinstated

by the SGS Accreditation Body on 11th December2007. In between the SGS audits, trained MICCL

personnel were responsible or completing internal

audits on a quarterly basis. Four minor non-

conormances and ( 44 ) observations rom the

June 2007, SGS surveillance audit were reviewed

and corrected or the November surveillance

audit. One minor non-conormance and ( 71)

observations raised in the November 2007 SGS

surveillance audit have been corrected.


33/60


Environmental Incidents 2007

Date Incident Actions

22-1-07

22-2-07

24-3-07

4-4-07

14-4-07

12-5-07

1-6-07

22-6-07

24-6-07

25-6-07

28-6-07

Shoulder joint o 450mm discharge pipe rom Fine

Screening Plant was loosen out and spillage spread on

the road.

Sealing pipe o Booster pump was loosed out at Pad 1 cell

12 and solution spread out the outside bund areas.

Te solution pooled between the road and Cell 22 bund,

which can occur the potential soil contamination to

outside area.

Fresh ore about 1,500 tonnes was stockpiled outside

area without bund near pilot plant heap cell and soilcontamination can be occurred there.

Te 200mm pipeline irrigating to High Grade Cell 2 was

burst out rom the pipeline crack.

Due to heavy rain, ILS pond level was coming up and ooded,

and the result caused PLS pond bund broken o.

Te solution in Silt rap pond located near Road 2 was

noticed contaminated.

Due to heavy rain, containment solution rom High Grade

Cell 1 caused outpouring onto the access road beside ne

tailing storage acility Dam-1.

450mm delivery pipe o Cyclone over ow pump was

caused crack-damage about 3 t near the Fine Plant

pond.

During operation 450mm cyclone overow pipeline

was broken out at butt-welded joint near the Fine Plant

pond.

While ele-handler (H-83) machine was parking at

Cathode Copper storage yard, transmission oil leaked to

the ground and spread out on the ground surace.

Contained the solution and cleaned up spillage on

the road o Dam 4 area. Constructed the windrow

along the pipeline or the prevention o spillagespreading.

Immediately stopped the pump and closed the

delivery pipeline valve and cleaned out the con-

taminated solution and neutralized with soda ash.

Te solution was contained with clay soil not to

spread urther down. Te contaminated soil was

cleaned up and sent back to Pad 2 Cell 22.

Tese ore were reclaimed by excavator and ed

back them onto the heap cells.

he contaminated soil was cleaned up and

neutralized with soda ash.

PLS broken bund was blocked with sand bags and

solution was pumped out to storm water pond.

All the contaminated solution was contained in

the sump. Contaminated solution was pumped

out to Storm water pond.

Cleaned out the contaminated soil and neutralized

with soda ash. Ten covered up with red earth.

Contained the solution by making bund using

950F loader. Removed out the contaminated

solution.

Immediately stopped the operation and contained

the solution with bund by 950F loader. Cleaned up

the soil by 950F loader. Covered up with red soil.

All the leaked transmission oil was contained

in the sand bulk. Te oily wetted sand and red

earth were dug out and disposed o them at

bioremediation pad. HDPE tray with sawdust /

sand was placed under the machine.

Environmental-incident reporting is required

to identiy areas or improvement and to track

progress on the treatment o an area ollowing an

incident. Tree moderate-risk incidents and 24

low-risk incidents occurred during 2007, most o

which were spillages or leakages. Te majority o theincidents were the result either o ailure in pipeline

joints or leakage rom pipe lines. All incidents were

reported and have been corrected.

Tree moderate-risk environmental incidents

were contaminated solution leaked rom shoulder

joint o Fines Screening Plant discharge pipe in

January, PLS pond bund broken due to heavy

rain in May and contaminated solution leaked

rom cyclone overow pipe line due to crack o

the pipe in Fines Screening Plant in June 2007.o improve environmental management and

to reduce environmental incidents, employees

are trained to identiy and report all incidents,

however minor they may be.

Incidents


34/60

Environmental Incidents 2007

Date Incident Actions

13-7-07

17-7-07

23-7-07

24-7-07

11-8-07

13-9-07

22-9-07

6-10-07

16-10-07

18-10-07

24-10-07

27-10-07

19-11-07

22-11-07

4-12-07

8-12-07

While skimming the organic layer in the Ranate & Pre-

settler ponds using air diaphragm pump, the delivery

pipe was loosened out and the solution splashed out to

the ground.

At Pad 2 Cell 18, the Glen sealing o deliver y pump was

leaked and the solution spread out around the pump area

on ground surace.

he rainate solution was leaked rom the lange o

delivery pump at Pad 1 Cell 4.

Out let pipeline o AGL plant discharged to ailing Dam 4

caused a leak under the road culvert near Process oce.

It was occurred a solution leak rom steel welded joint

o 350mm pipeline while pumping the ILS solutionto Fine Plant.

An acid leak was occurred rom 4steel pipe joint while

unloading the acid rom Isotainer.

A HSD oil leak was occurred on the ground near the HSD

storage tank while transerring HSD oil into the uel tank

o ruck.

Te packing seal o Booster pump at Pad 2 Cell 18 was

leaked and the solution spread on ground surace.

HG Plant drainage solution sump was over ooded due

to heavy rain.

Contaminated solution was ound under the access road

at the back o Pad 2 Cell 22A

At Pad 1 Cell 15 & 16, a leak was occurred rom PE delivery

bend pipe o Booster pump. Te leaked solution spread

on ground.

Due to the booster pump ailure at butt-welded joint, thecontaminated solution spilled out on the ground surace

at Pad 1 Cell 13.

Te diluent leaked out rom a pipe joint while pumping

into the circuit.

A solution leak was occurred rom butt-welded joint odelivery pipeline at Pad 1 Cell 13 Booster pump.

Te contaminated solution was leakage rom 110mm

bend butt-welded joint. Te contaminated solution was

spread out to Pad 3 oce toilet area.

Te delivery pipe rom Booster pump at Pad 1 cell 13 was

cut o and the solution owed backward rom heap to

pump area.

Contaminated soil was neutralized with soda

ash and cleaned out. Covered the spilled area

with red soil.

All the leaked solution was contained in the sand

bulk. Contaminated solution was cleaned out and

neutralized with soda ash.

Stopped pump operation and spread with soda

ash on the contaminated area not to impact the

environment.

Te solution was gathered in the silt trap and cleaned

out on the road. Replaced the damaged pipe with

new one and placed it under new road culvert.

Te solution was neutralized with soda ash and

cleaned out Covered the contaminated soil withred soil.

Washed the acid solution and drained out to

storm water pond. Spread soda ash powder on

the spilled area.

HSD spillage was covered with sand and cleaned

up.

Spread soda ash on spillage and cleaned out it.

Repaired the pump packing seal.

Cleaned out the over looded solution at the

junction o Road 2 and Process Oce Road.

Clean out the contaminated soil by 950F loader.Spread soda ash on contaminated ground to be

neutralized. A trench line behind Cell 22 A was

dug and lined with clay soil to collect solution and

to pump back into the operation circuit.

Replaced the PE bend and neutralized the

contaminated soil with soda ash.

Cleaned out the contaminated soil and neutralizedwith soda ash. Covered the contaminated area

with red soil.

Cleaned up the spilled diluent along the concrete

channel. Te contaminated soil was disposed o

at Bio-remediation pad.

Neutralized the leaked solution with soda ash and

repaired the welded joint.

Te contaminated soil was cleaned out and some

solution was neutralized with sod-ash.

Stopped the pump and covered the solutionspreading area with red earth. Removed out them

by 950-loader.



35/60

Environmental Incidents (2007)

Environmental Incidents (1999-2007)



36/60


LandMICCLs leased area totals 2,300 hectares,

and is comprised o vegetated land, hills and

pits let by previous mining activities. Mining

operations and the processing o ore inevitably

change the natural landscape. MICCL has the

responsibility to minimize land disturbance

and to rehabilitate the areas inevitably aected.

A roll ing i ve -y ea r prog ram o prog ress iv e

rehabilitation and revegetation o the mine site

that was initiated in 2001 has made excellent

progress and continues in eect.

Land disturbanceFive major classes o land disturbances, resultingrom previous operations that preceded the

MICCL joint venture and rom mining o

Sabetaung and Sabetaung South Pits, have been

identied at the S&K Project. Tey are:

Old tailings dams

Open pits

Heap-leach areas

Waste-rock dumps Process plants, permanent buildings and access

roads

he eight main areas o land disturbance are

summarized in the table below.

Location Disturbed Area (ha)

Old tailings dams 153

Sabetaung Pit 66

Sabetaung South Pit 20

Waste Rock Dumps 95

Heap Leach Areas 201

Solution drains & ponds 23

Storm-Water Pond 37

Overow Pond 13

otal 610

Permanent buildings, access roads and

parking areas are not included in this table. o

control land disturbance on the S&K Project, a

permit system is used to ensure personnel and

departments understand that the areas to be

disturbed shall have minimal environmental

impacts. Some major projects were initiated in

2007. Te 25 environmental-clearance permits

granted were or works that included construction

o a new steel-ball storage shed at the AL Plant,a new leach pad between mining-goline and the

Pad 3 oce and three new core-shed buildings.

About 2.3 hect ares with approximately 2,240


37/60


previously planted trees were aected by new

project activities, mainly or developing the Pad

extension job beside Cell 16, a short-cut access

way to Dam 4 rom Road 1 and Dam 5 extension

job. Areas reed by roads no longer in use are being

rehabilitated.

Impacted-site ManagementIn 2007, nine sites are recorded as disturbed

and as either contaminated, impacted or aected.

Tese locations will be closed as part o the Mine

Closure Plan, which will rehabilitate all MICCL

sites detected to date. Te old otation plant and

limestone waste stockpile are among several sites

used by previous mining operations and listed

as contaminated. MICCL is not responsible or

remediation o pre-existing sites. Sabetaung Pit,

Sabetaung South Pit and the heap-leach pads are

disturbed sites that remain in operation. Seven sites

previously listed as disturbed already have been

closed and rehabilitated. MICCLs environmental

site management program reerences standards

set by the National Environment Protection

Council o Australia.

Rehabilitation and

RevegetationMICCL is responsible or restoring the

natural landscape and or rehabilitating the

area during and ater mining operations.

Minimizat ion o land disturbances and

progressive rehabilitation has been carried out

in the ollowing areas o the mine site:

Land disturbed by previous mining activities.

Decommissioned areas.

ailings-spills reclaimed area rom previous

mining.

Abandoned waste dumps rom previous

mining

Areas where no uture mining activities are

expected.

Te company has developed a rolling ve-

year rehabilitation plan to revegetate areas

disturbed by previous mining activities and areas

where no uture mining activities are expected.

Te ve-year work plan is carried out through

MICCLs annual rehabilitation program. his

ensures that the amount o disturbed area is kept

to a minimum at all times. Te rehabilitation

program has achieved excellent results. A total

o 311 hectares have been rehabilitated since

1999. he goal o the 2007 plan was to plant

35,000 trees in 32 hectares. In act, approximately

36,600 trees were planted and 33.29 hectares were

rehabilitated in 2007. Tis total included 18.30

hectares in rehabilitation blocks at the Core Shed,

near the Camp gate, and the Dam 4 tailing-pond

compound, where 20,130 trees were planted; 9.02

hectares at Waste Dump areas o Laynyin aung

north site, at the side slope o Sabetaung pit 595

level and along the berm o Sabetaung South pit,

with 9,923 trees; and 5.97 hectares at both sides o

the new cargo road, around the sewage pond and at

the compound area o Pump Station 3, with 6,577

trees planted. 8.9 hectares o assorted native

seeds scattered at the various areas disturbed by

MICCL activities. In 2008, the S&K Project plans

to rehabilitate 33.3 hectares o disturbed land by

planting 36,000 native trees o assorted species,

plus an additional 1,000 trees as replacement or

vanished trees rom previous year rehabilitated

area.


38/60

36| Saety, Health & Environmental Report

Water

Surace waterTe MICCL S&K Project is located in a dry-

zone area with a high rate o evaporation and

medium levels o rainall. otal rainall or 2007

was 1,032 mm that is higher than the previous

year o 765mm. Drains normally are dry seven

months o the year; they collect and channel run-

o during heavy rainalls. Fresh water or the

minesite operation is supplied rom the Chindwin

River. Tree pumping stations were installed at the

beginning o the project to supply water or the

operation and or domestic use. Te accompanying

graph shows the volumes o water rom Chindwin

River used by MICCL over the last three years.

Te ew surace-water bodies that exist in

the project area are summarized as ollows:

Wetlands = Control resh water runo in the

rainy season and maintains wetland ecosystem.

Ponds = Series o constructed control ponds

to collect contaminated run-o rom active

operating areas. Process solution collection pondsare monitored weekly to prevent contamination

to the surroundings, Chindwin River or the Yama

Stream.

Monthly Local Rainall and EvaporationYear 2004-2006

2006/Power & Water consumption Per Lbs o

Cathode Copper


39/60


Ground WaterA shallow, semi-unconined aquier lies

beneath the mining operations area o the S&K

Project.

Te water level o this aquier varies with

the wet and dry seasons. MICCL has installed 95

boreholes around the S&K Project to monitor thegroundwater quality. Ground water is observed

10 metres below the surace in boreholes. Excess

aquier resh water rom the mine pit is pumped

out into a silt trap pond and then released into the

Yama Stream. Te water quality is monitored on a

regular basis.

Water-quality sampling was completed

every two months to measure the impacts caused

by mining and process activities. Any occurrence

o low pH was checked and corrective action wastaken immediately.

Drainage managementDrains are maintained regularly to avoid

ooding in the mine site and to control overows

rom the storm-water and overlow ponds.

Drains and containment bunds are constructed

according to the development o the operation. An

operational storm water management strategy was

developed or the 2007 rain season and is being

updated or year 2008.

Te ollowing graph shows the monitoring results at sensitive spots.

Yearly Comparison o pH at Vulnerable SpotsStandard Level o pH 6 to 9

Monitoring Site SW 220 (Outlet to Yama Stream)Monitoring Site SW 110 (Upstream o discharge point at Yama)Monitoring Site PDYC (Downstream o discharge point at Yama)Monitoring Site SW 111 (Conuence o Yama Stream and Chindwin River)Monitoring Site SW 101 (Upstream o Yama-Chindwin conuence)Monitoring Site SW 102 (Downstream o Yama-Chindwin conuence)


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AirDust-emission controls

Mining operations generate dust on roadsand in crushing, conveying and stacking areas.

Te spraying o water controls dust rom

mine pit, primary crusher, crushed-ore stockpile

and haul roads.

wenty-seven dust-monitoring stations

are installed in major dust-emitting areas and

recorded levels are reviewed monthly. Grassing

and re-vegetation is employed on exposed soil

around the minesite. Results have been variable

because dust is caused by dierent sources and

dierent locations and results are mostly seasonal.For comparison, results at 27 spots indicate that

dustall tends to lessen in August- September,

coinciding with the start o the rain season.

Te main source o dust is the ore crushing and

conveying system, particularly during the dry

months o December to April. Te heaviest dustall

was recorded in the area nearby the Primary

and Secondary Crushers. Point DM-5 (West o

Secondary Crusher) recorded the highest dustall

during January, February and March. Te dustall

at the remaining spots indicates acceptableamounts in all seasons. Elevated dust all levels

were also apparent in areas adjacent to the access

roads and haul roads in dry season.

On-Site Dust Fall at 27 Locations


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Acid-Mist MonitoringTe processes o Copper heap leaching and

electrowinning emit acid mist into the atmosphere.

Acid-mist emission is monitored monthly around

the heaps and daily in the tankhouses o the SX-

EW plant. Results show that acid-mist levels are

well below the allowable exposure level.

A special six-month study to monitor the

possible eect o tankhouse acid mist in the

surrounding area did not show appreciable/

measurable eects. As part o that study, metal

plates were installed to try and detect corrosion

on a long-term basis.

Measured Acid Levels at Tankhouse A

Worker Exposure Standard or acid mist during 8 hoursperiod - 1mg/m3 (260 ppb)


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Energy & Emissionshe project has organized an energy

committee to control and reduce the use o

hydrocarbon uel and the release o CO2 rom

various operations. MICCL used 282,122 GJ o

electricity in 2007. Site power is provided by the

Kyunchaung gas-turbine generating station, which

also is connected to the national grid. Te majority

o the energy is consumed in the electrowinning

tankhouses or depositing copper on the cathode

plates.

Energy Usage - Steady Consumption

Energy and Emission - Per l b o cathode copper produced

MICCL has increased the number o heap

leach cells and the height o the heaps increase as

new ore is placed on top o leached ore to create

a resh cell. hereore, increasingly additional

power or pumps is required on heap-leaching

operations.

Greenhouse gas emissions rom site

operations were estimated at 120,017.78 tonnes

o CO2 equivalent or 2007.(BA) .

CO2 Emission -A year-by-year comparison


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WasteTree types o waste have been identied as being problematic, and requiring action during and

ater mining operations. Tey are summarized as ollows:

Waste rock = rock without or with only non-commercial copper content(ARD),

produced while mining process-grade ore or leaching.

Residue rom leach heaps = ore depleted o copper ater the leaching process.

Non-Process waste = paper and plastic waste, used tires, batteries, scrap iron and waste

oil.

Mining operations produce considerable

volume o waste or low-grade rock that must be

disposed o outside the operating areas. Waste

rock is classied as potentially acid-orming and

non-acid-orming. Potential acid-orming waste

rock contains oxidized or sulphide minerals that

are capable o producing an acid contaminant

(ARD) when exposed to air and water. his

material has impact on soil i it drains with runo

to the environment and on water i it seeps into

underground water.

A long-term plan to control ARD was

developed and has since been implemented. Te

potential ARD waste is managed by isolating it

rom other sterile waste rock types, encapsulating

it with oxidized waste rock and then rehabilitating

it with a layer o soil with hal-a-metre thickness

to eliminate ARD generation.

A standard operating procedure or classiying

and handling potential acid waste was developed

and practiced. A total o 6,838,671 tonnes o ARD

waste and 8,079,962 tonnes o leached waste were

produced in 2007.

General Waste Management strategies are as ollows:

Waste ype Category reatment

Waste Rock ARD Waste Isolate and encapsulate

Leached Cap Store or uture use

Anode Sludge Lead sludge ransport to Namtu or

recycling.

Industrial Waste Iron scraps Sell to recyclers

Hazardous Waste Hydrocarbons & Acid Recycle/Reuse

Domestic Waste Paper & Plastics Landll site

Liquid Waste Contaminated water Contained and recycle orEvaporated.


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Hazardous materials

MICCL uses various kinds o products,reagents and explosives in its production

processes.

Some are hazardous substances and control

procedures have been developed and implemented

to minimize the risk o handling such materials.

Te more signicant materials are:

Diesel uel

Petrol

Lubricant Sulphuric acid

Diluent

Solvent Extraction Reagent (Extractant)

Ammonium nitrate (Explosive)

Paints and thinner.

Tese substances may cause injuries or health

problems i their use is not controlled. MICCL has

issued general guidelines or handling and storing

Dangerous Goods. Te guidelines include:

Identiying the correct storage acility and

handling requirements or each product,

normally ollowing the Material Saety DataSheet issued by the respective supplier.

Ensuring containers are sealed prior to

transport, during storage and immediately

ater use.

Where bunds are used to store hazardous/

dangerous goods, the bund must be checked

(or water build-up).

All containers must be clearly labelled.

Drai n valve s or bunds must be kept

closed.

Te ollowing standard operating procedures

and emergency-response procedures have been

updated or handling dangerous goods:

Control the product (isolate the valve).

Contain the product (stop it rom spreading).

Clean up the product (collect and place it in a

container).


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Hydrocarbon and Chemical Usage

Hydrocarbon and Chemical Usage

January to December 2007

Chemical Consumption in Blasting Operation


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Issues & ActionsAcid Rock Drainage (ARD)

Mining operations produces, in addition

to inert waste, potential acid-orming waste

containing oxidized or sulphide minerals that are

capable o producing an acid contaminant (ARD

material) when exposed to air and water.

MICCL is committed to Zero Discharge

Policy and having control over acid rock drainage

(ARD) as per ARD Management Plan. Waste

dumps are designed and constructed lining with

clay and inert material on the sill , bunding with

clay and inert material around the dumps to

prevent rom ground contamination. Potential

seepage water rom the waste dumps will be

collected and contained in interception drainsdug along the toe o the waste dumps and pump

it back to the containment pond.

Clean Aquier water rom Sabetaung Pit

is collected in the North Sump and pumped to

the surace silt trap. Water quality is monitored

beore releasing.

Contaminated water rom the pit is pumped

into the Overow Pond. Runo released rom

the process leach pad areas is contained in the

Storm-Water Pond and the excessive water willbe pumped into the tailings dam. It is recycled as

make-up water or the process in irrigating.

Water-quality managementTe Saety and Environmental Department

(SE) monitors the minesite water quality. Regional

and minesite surace water is monitored monthly.

Ground water is monitored on the mine site and

in the surrounding villages. Results are reported

monthly and corrective action is taken immediately

in those areas that are ound to require attention.

An independent laboratory is employed to analyze

and check the samples annually.

Tailings reclamationEarlier mining activity that preceded the

ormation o MICCL resulted in considerable

spills o tailings over 150 hectares o land easto the present operations area, where artesanal

miners recover residual copper at subsistence

levels. Most o that area is under the control o

the local Myanmar authorities. MICCL assumed

responsibility to clear out the letover tailings

spills in the leased area to achieve its ISO 14001

Certication and honoured its moral obligation

to help clean up part o the area outside the lease,

when permitted to do so. In 2006-2007, part o

the aected area along the Kyaukmyet Road andin some lease areas was cleaned-up and reclaimed

with local contract workers: old tailings were sent

back to the Main ailing Dam.


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Communityhe MICCL community activities in the

year 2007 demonstrated good relationship with

the people who live around the operation area.

MICCL also participated in activities that benet

the region such as maintaining the constructed

road, assisting the repairing North Yama Bridge,

Dam and water supply amenities.

Existing reserving in Phaungga village and

epingan village established by MICCL were

checked and repaired to achieve more strength

and more storage volume o water.

ube wells were installed at Yawthar village,

Ngatesu villages Gondaw village, Dondaw

village and Kangone village. Tose tube wells

were ensured to supply o water through out

the year.

5 Miles Radius Health Care Program continued

to advice or to educate personal hygiene,

sanitation, saety awareness and environmental

protection to the people who stayed in the

villages. Health knowledge o villagers has

improved.

MICCL donated FEC 1000 to MES (Myanmar

Engineering Society) to develop their activity

o sharing the knowledge o the modern

technology to the public.

MICCL contributes to charitable organizations

by donation FEC 400 to Salingyi ownship to

develop traditional cultural perormance artsand to develop sport activities.

MICCL provided FEC 5000 in repairing the

Yama Bridge.

MICCL sponsored entertainment or Tingyan

water estival at mine town to enjoy not only

all o the employees and amilies but also the

people who live around the mine town.

Focusing on the community aairs to achieve

the good relation ship with the community

within the operation area has been continued

because people around mine town are our

important resources.


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In this year 2007, new expansion designations or the Seventh Intake radesrainees are Heavy Equipment Mechanic and Heavy Equipment Welder as well asMining Operator and totally twenty seven trainees or all rades. In the trainingperiod, new recruits do the common trades courses such as English, Basic ComputerKnowledge, Saety and Environment and Electrical Principle Course and ater that theyhave chosen their related subjects. Furthermore, First Aid raining is also included.

Tats a new trade program and it lasts or twenty our months as same asthe normal trades program ( Electrical Fitter Mechanic, Fitter and Machinist, AutoElectrician, Heavy Equipment Fitter and Process Operator trades) running by echnicalraining. All the above programs include On Job raining in their related elds.echnical raining has opened rades raining Classes since 2001 and there are atotal o Seventh Intakes up to now.

Te objective o raining Department is not only to provide the trainees basicknowledge, theories with practical, skills needed to work and but also assist thetechnical skills to existing technicians. raining program and systems are aimed athigh quality world standard level.

echnical raining has nurtured ( 64 ) trainees who are now assigned as qualiedradesmen at Mining and Maintenance Departments. Tey are the rst ve Intakesgraduated rom echnical rainings practice-based training programs. All o themare well accepted as competent persons in their respective elds.

As or the existing employees, English Prociency Courses and Computer Courses areopened or side wide and provided specic training courses mainly in maintenance areasas employee advancement training. A total o nine classes has been opened in 2007.

o keep our current status, World-Class Mining Operation, modern technologiesexpected to improve eciency, reduce cost and save operational time and energy arereally needed. So MICCL is ully committed to provide the comprehensive trainingprogram to assist each employee in maximizing their own potential.

Te rainees o Sixth and Seventh Intakes are continuing on their courses. OneHundred and Eleven rainees are currently participating in the program.

Technical/Trades Training

CompetencyTraining


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Training ProgramsTe training program includes two branches such as rades raining Program to next generation

and Advanced raining Program to Employees.

Trades Training ProgramTis program is proved to be successul since the graduates rom the rst ve batches, the rst one in

November 2003, the second one in December 2004, the third one in December 2005 the ourth one

in December 2006 and the th one in December 2007 are now in their respective worksites taking

charge with ull responsibility.

* Teory* is only or Mechanical Fitter rades and Heavy Equipment Fitter rades. Electrical rades is continuing to onthe job training ( OJ ) during this period.* Teory* is only or Mechanical Fitter; Auto Electrical and Heavy Equipment Fitter rades o Sixth Intake rainees. Electricalrades and Process Operator rades are continuing to on the job training ( OJ ) during this period.* Teory* is only or Mechanical Fitter, Electrical Fitter, Auto Electrical, Heavy Equipment Fitter, Heavy Equipment Mechanic,Heavy Equipment Welder rades o Seventh Intake rainees. Process Operator rades and Mining Operato