Delivering better sustainable development outcomes in resource intensive regions

Dr Glen CorderPrincipal Research FellowDevelopment Manager – SUSOP Pty Ltd

Overview

Gladstone and Sustainability and Regional Synergies

A New Sustainability Framework

Better sustainability outcomes for resource intensive regions?

• Aims: – enhance local synergies between industrial operations – assist operations to achieve greater efficiencies in

energy, water and materials consumption– reduce wastes and emissions generation.

• Timeframe– April 2004 until June 2007

• Supported by:– CRC for Sustainable Resource

Processing– Gladstone Area Industry Network

Gladstone Regional Synergies

4

Gladstone Industrial Area (circa 2007)

Gladstone Area Industry NetworkBoyne Smelters

Rio Tinto Aluminium YarwunRefinery

Cement Australia

Central Qld Ports Authority

Gladstone Area Water Board

NRG Power Station

Orica Chemicals

Queensland Alumina Ltd

Queensland Energy Resources

Transpacific Industries

Boyne Smelters

Rio Tinto Aluminium YarwunRefinery

Cement Australia

Orica ChemicalsCentral Qld Ports Authority

Gladstone Power Station Gladstone Area Water Board

Queensland Alumina Ltd

Queensland Energy Resources

Transpacific Industries

Awoonga Dam

0 4

N

Gladstone Regional Synergies(circa 2007)

Synergies•Alternative fuels

•QAL effluent re-use

•QAL waste separation/re-use

•Fly ash re-use

•Caustic recovery

Rio Tinto Yarwun Refinery

Queensland Energy

Resources

Orica Chemicals

Cement Australia

NRG Power Station

Queensland Alumina

Boyne Smelters

Gladstone Ports

Authority

Gladstone Area Water

Board

Calcined ash

Gladstone City Council

Calliope River STP

Secondary treated effluent

Pozzolanic Enterprises

Fly ash

Fly ash

Caustic soda

Caustic soda

Transpacific Industries -

Waste TransferStation

Plant Waste

Geocycle

Solvent based fuels

Old tyre suppliers

Tyres

Project Process and Outcomes

Common Factors for Success

• All involved parties must benefit– business benefit, either direct or indirect

• Key success factors:– Proven technology– Convincing business case– Licence to operate

van Berkel, R. (2006). Regional resource synergies for sustainable development in heavy industrial areas: an overview of opportunities and experiences

Technology

Licence to Operate

BusinessCase

Successfulsynergyprojects

• For an industrial region, some key questions are:

– Why are more synergies not being implemented?

– To what extent is synergy uptake related to physical constraints, such as industry mix, density, and location?

– To what extent do less tangible factors, such as regional community pressure, organisational networks, and regulatory issues, also play a part?

Lack of uptake of synergies?

Drivers for Industrial Synergies

• Are there 3 types of synergies?

• Do most synergies fall into the middle category?

Cost Benefits SD Benefits Research?

High At least sound Will happen(without researchers)

Marginal Strong Yes

Low Limited No need

Industry Commitment

• Strong public commitment to sustainable development and sustainability

• From both industry bodies (e.g. International Council on Mining and Metals) and major mining companies– ‘Sustainability’ or ‘Sustainable Development’ is on the Home

Page of major mining companies’ websites

International Council of Mining and Metals 10 Principles1. Implement and maintain ethical business practices and sound systems of corporate

governance. 2. Integrate sustainable development considerations within the corporate decision-making

process. 3. Uphold fundamental human rights and respect cultures, customs and values in dealings with

employees and others who are affected by our activities. 4. Implement risk management strategies based on valid data and sound science. 5. Seek continual improvement of our health and safety performance.6. Seek continual improvement of our environmental performance.7. Contribute to conservation of biodiversity and integrated approaches to land use planning. 8. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our

products. 9. Contribute to the social, economic and institutional development of the communities in which we

operate. 10. Implement effective and transparent engagement, communication and independently verified

reporting arrangements with our stakeholders.http://www.icmm.com/our-work/sustainable-development-framework/10-principles

The Challenge is…

• How to incorporate sustainability at the practical level• Typically sustainability principles are used to ensure, at best,

compliance– Once all major decisions are made– Leaving little scope for innovative initiatives that could improve

sustainable development outcomes in resource intensive regions

What is the most rigorous and defensible mechanism that enables sustainable development principles to be incorporated into the design and operation of resource processing?

Key Research Question

Development of SUSOP®

• Co-operative Research Centre for Sustainable Resource Processing (CSRP) from 2003 to 2010

• Key members of the SUSOP®

Development Team– University of Queensland– University of Technology Sydney– GHD Pty Ltd– Hatch Associates Pty Ltd– CSIRO

SUStainable OPerationsSUSOP® is an emerging industry standard:A guiding framework for projects that enables a proper contribution to sustainability by the industrial facilities being studied, designed, built or operated.

HAZOP brought a design methodology to safety…….SUSOP® seeks to do the same for sustainability.

Key Features of SUSOP®

SUSID™ Generate “new ideas” leading to better project

outcomes Identify business and sustainability risks

SD Balance Sheet™ Schematically show impacts on sustainability

framework Sustainability Register™

Formal record of outcomes, similar to a risk register

SUSOP® Key Elements

SU

SID

™

Familiarisation with Sustainability Concepts

and Project Context

Goal Scoping and Opportunities & Risks

Identification

Analysis of Sustainability Opportunities and Risks

Prioritisation of Sustainability

Opportunities and Risks

Decision Support

SD Assessment

Sustainability Register™

SD Balance Sheets™

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Developer faced with deadline for site selection due to pending lease expiration Standard risk and financial

analysis could not provide definite guidance on which sites to retain

Clear points of difference Labour, energy, infrastructure

integration, by-products, transport

70 opportunities and risks Water treatment, energy,

transport, enterprise development, export, by-products

A development plan for two key business risks Related to high operating costs

(specifically energy and expatriate labour costs)

Problem: Solution – SUSOP® delivered:

Case Study 1: Site selection for new mineral processing plant

Ren

ewab

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Small Scale in Community

Demonstration at Current Camp

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Trial on Mine Equipment

Implement on equipment

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Support Skills Development

Small-scale Enterprise

Development

Local Technical Support

Skilled workforce servicing operation

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Concept (Year 1) Pre-feasibility Feasibility Construct/Commission Operation (Year 10)

Full scale implementation of

commercially available renewable energy

technology

Local skilled technician workshop (employees

and contractors)

Integrated development plan Avoiding high energy costs and high expatriate labour costs

Case Study 1: Site selection for new mineral processing plant

SD Balance Sheet™Ideal: All capitals positiveAcceptable: Balance of all capitals is positiveUnacceptable: Balance of all capitals is negativeCatastrophic: Any capital has extreme negative impact or all capitals are negative

Financial

Manufactured

Human

Social

Natural

Financial

Manufactured

Human

Social

Natural

-5 -4 -3 -2 -1 0 1 2 3 4 5Rating

-5 -4 -3 -2 -1 0 1 2 3 4 5Rating

Standard outcomes from business-as-usual approach

Improved outcomes from application of SD principles

No Change

Negative Change

Positive Change

Case Study Learnings

Importance of recording outcomes is critical Led to the Sustainability Register™

Relevance of sustainability concepts with project Implications on surrounding community and

environment and the wider range of stakeholders Value of sorting opportunities into categories

Rather than producing a single, long prioritised list Value of clustering into “concepts”

Shows linkages across sustainability framework

Example of Clustering

Into the Future

Is it technically feasible? Does it make financial

sense? Will government or

community or owners of the resource allow it?

A standard approach to identify and drive innovative solutions

that translates sustainability principles into operating practice and design

without compromising financial rigour

3 key questions for new projects: Fundamental aim of SUSOP®:

So what about a region like Gladstone?

Projects Under Construction (GEIDB website) Queensland Curtis LNG (QGC) – LNG for CSG Rio Tinto Alcan – Yarwun Alumina Refinery (Stage 2 expan.) Boyne Smelters Ltd – new furnace and reduction line upgrade Powerlink - Infrastructure upgrades Western Basin Dredging and Disposal Project Fishermans Landing Reclamation Area – Port Expansion Queensland Energy Resources Ltd – oil shale technology GLNG (Santos, Petronas, Total and Kogas) – LNG for CSG

Acknowledgements

This project presented here were carried out under the auspice and with the financial support of the Centre for Sustainable Resource Processing, which was established and supported under the Australian Government’s Cooperative Research Centres Program.

The Centre for Sustainable Resource Processing was a joint venture between Alcoa, ANSTO, BHP Billiton, CSIRO, Curtin University of Technology, Newmont, Rio Tinto, University of Queensland, Xstrata, Anglo Platinum, BlueScope Steel, GHD, Murdoch University, OneSteel, Orica, Rocla, University of Newcastle, Department of Environment Water Heritage and the Arts, Hatch, Kwinana Industries Council, Minerals Council of Australia, and URS.

SUStainable OPerationsQuestions?www.susop.com.au

Glen CorderDevelopment Manager, SUSOP Pty LtdPrincipal Research Fellow, Sustainable Minerals Institute, University of QueenslandEmail glen.corder@susop.com.au