Annual Review 2008

Embracing change

01www.icmm.com l Annual Review 2008

CREATING OPPORTUNITIES l 04ICMM’s Resource Endowment initiativemade solid progress in 2008, focusingon mining’s contribution to economicand social benefits.

ADDING VALUE l 12ICMM is helping to build a globalconsensus in the areas of sustainableconsumption and production, andthe reporting of mineral reservesand resources.

CHANGING LIVES l 10In 2008, ICMM published guides ondisease management and chemicalsmanagement, and engaged with theUN on human rights issues.

CONTRIBUTING TOSUSTAINABLE COMMUNITIES l 06ICMM underlined its commitment tobuilding constructive relationshipsbetween the mining industry and localcommunities this year.

Contents

01 About ICMM

02 Foreword

04 Creating opportunities

06 Contributing to sustainablecommunities

08 Embracing challenges

10 Changing lives

12 Adding value

14 Framing a sustainable future

16 Chairman’s statement

18 Reaching out

20 Members

22 Governance and financials

ICMM is a collaborative of 17 companies and 30mining and commodity associations. It provides ameans for joint action on sustainability-relatedissues important to the mining industry.

Its overall goal is to facilitate improved memberperformance. ICMM members believe that, byacting collectively, they can help create andmaintain a respected mining and metals industrythat is widely recognized as a key contributor tosustainable development.

ABOUT ICMM

About this reviewWelcome to ICMM’s Annual Review. In thesepages you will find a description of the challengeswe faced in 2008, and will continue to face in 2009and beyond. A summary of 2008 activities isprovided and through that you can gain anunderstanding of how the mining and metalscommunity is adapting to these challenges.

For readers of the review who want an overviewof how the organization operates, the Governanceand financials section on pp. 22–3 includes a

breakdown of how ICMM’s work program isfunded, with cross-references to the detailelsewhere in the review.

Most of the photography in the review is takenfrom our member companies – full details oneach photograph are available atwww.icmm.com/annualreview.

For a more regular update, subscribe to our onlinenews service by emailing us at info@icmm.com.

ICMM needs to be the kind of organizationthat says the right things, makes the rightcommitments and works effectively throughits members and others in the industry toachieve concrete results in practice. We needto walk the talk.

In 2008, we began a process of strategic review.The purpose of this review is to refresh thevision, mandate and priorities of ICMM.

I use the word “refresh” advisedly. We are notredefining the foundation of this organization.We are building on our work to date, preparingfor the future and making sure that we arerelevant as an organization.

I hope that our partners and collaborators willembrace the changes that we are workingtowards. The actions that are required needcommitment from our members and all theinterests that our industry reaches. Thatcommitment is evident in the CEOs on ourCouncil. It is the strongest possible startingpoint for success as we move into a newera for ICMM.

Dr R. Anthony Hodge, President

03www.icmm.com l Annual Review 200802 ICMM l Embracing change: Foreword

2008 was a year marked by tumultuous change.Across the world the financial systemstaggered – commodity prices that underpinthe mining and metals industry plummeted,and in a few short months, the operatingenvironment for the sector in general andICMM more specifically was entirely changed.

I took up my post as ICMM President on1 October just as these events moved into highgear. I found an organization that was operatingsmoothly and was remarkably well prepared forthe events that were unfolding. Credit for thatsituation goes to my predecessor, Paul Mitchell,and to John Groom who served as chiefoperating officer during the six-month transitionperiod immediately prior to my arrival. Theircontribution to ICMM has been significant.

During the five years that Paul was in chargeat ICMM, he presided over a period ofconsiderable growth and evolution, helping toshape ICMM into the organization it is today. Icould not make the contribution that I hope tomake had Paul not paved the way.

For his part, during the short six months thatJohn was here, systems were introduced thathave created a strong foundation for me tobuild on, and move forward.

We also welcomed a new chairman in 2008 –Brad Mills (then Chairman and CEO of Lonmin)was replaced by Richard Adkerson, Presidentand CEO of Freeport-McMoRan Copper & Gold.All at ICMM are thankful to Brad for hiscontribution and I now look forward to acreative and productive period of time workingwith Richard.

Commitment and collaborationIn the short time I have been with ICMM, twofactors have stood out. First, it is impossible notto be moved by the spirit, motivation and depth ofengagement of the 16 staff that comprise thesecretariat. Without their professionalism,ICMM’s work and success – past, present andfuture – would not be possible.

Second, I was similarly struck by the depth ofcommitment to the work of ICMM articulated bythe member CEOs. The culture of the miningand metals industry is one of competition.However, ICMM members have come tounderstand that on certain issues – includingmany of the environmental and social issuesthat are gathered under the banner ofsustainability – it is the sharing of experienceand good practice that is needed.

Making a differencePeople ask me how ICMM can make a difference.We need to bridge the gap between ideas andpractice, between concepts and concertedaction. We need to reach out and make a realdifference on the ground, touching people’s lives.

FOREWORD

“ICMM needs to be the kind of organizationthat says the right things, makes the rightcommitments and works effectively throughits members and others in the industry toachieve concrete results in practice.”

05www.icmm.com l Annual Review 200804 ICMM l Embracing change: Creating opportunities

ICMM is leading a pathbreaking initiativeinvolving UNCTAD and the World Bank. Theeffort is aimed at working with countries andcommunities, particularly in the emergingworld, to strengthen benefits arising frommineral wealth. The key is bringing together abroad range of interests to ensure effectivemanagement of mineral wealth.

Since its inception in 2004, the initiative hassignificantly enriched our understanding of howto tackle the many challenges. In 2008, ICMMworked with governments and others to catalyzepartnerships in the mineral rich countries ofGhana and Peru. 2008 also saw major progresson our work on minerals taxation.

Ghana: Sowing the seeds for actionThe government of Ghana and ICMM, supportedby the Ghana Chamber of Mines, jointly hosted aworkshop in Accra in February 2008. Ghana hasquite successfully transformed its mineralwealth into development at both national andcommunity levels. However, more can be done totackle challenges such as artisanal mining andstrengthening district assemblies, particularly inthe mining districts. The workshop broughttogether national and local governmentagencies, traditional authorities, developmentagencies, mining company executives and abroad cross-section of civil society to discusspossible ways to create new partnerships thatcould enable Ghana to achieve a bigger socialand economic benefit from mining.

Peru: From boom to broad-baseddevelopment?The mining industry in Peru has recentlyboomed, creating an important opportunity foreconomic development and poverty reduction.In the first six months of 2008, the economyexpanded by over 10%. Yet around 40% ofPeru’s population live below the poverty line.

Therefore, at the Natural Resources andDevelopment Forum in Lima, organized by theSociedad Nacional de Minería, Petróleo y

CREATINGOPPORTUNITIESICMM’s Resource Endowment initiative madesolid progress in 2008, focusing on mining’scontribution to economic and social benefits.

This year we have co-hostedevents in two of our case

study countries

Energía (SNMPE), the focus was on multi-stakeholder initiatives targeted at povertyreduction. About 300 people attended, includingabout 70 local mayors. An innovative featurewas the partnership fair where there were 22exhibitors who showcased multi-stakeholderpartnership initiatives between communities,companies, development agencies and localand national government bodies.

Minerals taxation regimesThe design of tax regimes is a major factorinfluencing mine project viability and whether,and to what extent, mineral revenues help drivesocial and economic development. As a resultof feedback from a multi-stakeholderworkshop, in 2008 we began looking at, forexample, how equitable such fiscal impositionsare and how governments choose to spendmineral revenues they raise. Because of thecomplexity of this topic, we set up an advisorygroup comprising four leading internationalexperts in the field to oversee the process andgive feedback at every stage.

A supplement on minerals taxation has beenadded to the Resource Endowment Toolkit (firstpublished in 2006), and two Spotlightpublications have been produced, one as apreliminary overview of the subject, and onesummarizing the findings of a report that willbe published in 2009.

SHARING THE BENEFITSContributing to economicdevelopment and povertyreduction is one of the mostsignificant challenges facing theworld today. Under the rightconditions, the mining andmetals industry can make asignificant contribution. But, howdo you ensure that the costs andbenefits – economic, social andenvironmental – associated witha billion-dollar industry are

distributed equitably? Byadvocating collaborativeapproaches involving companies,governments, inter-governmental organizations,NGOs and communities.Together, these organizationscan address developmentpriorities and ensure that publicrevenues from mining are usedto enhance overall socio-economic development.

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07www.icmm.com l Annual Review 200806 ICMM l Embracing change: Contributing to sustainable communities

ICMM and its members are well aware that,in many parts of the world, mining takes placein areas that are home to indigenouscommunities, and that in the past the rightsand interests of those communities have notalways been respected. While the relationshipbetween mining and metals operations andlocal communities is a complex one, ICMMis committed to building effective andconstructive relationships between the miningand metals industry and Indigenous Peoples.

Our activities in 2008 continue to reflect thiscommitment. In January 2008, IUCN and ICMMjointly held a second Roundtable on Mining andIndigenous Peoples Issues in Sydney, Australia.

The roundtable addressed a number of topicsincluding the issue of free, prior and informedconsent (FPIC), generating and defining netsocial benefits, and consultation, engagementand the meaning of broad community support.The event brought together mining companiesand representatives of Indigenous Peoplesfrom across the globe for a round ofconstructive and positive discussions.

The discussion of implementation challenges atthe roundtable provided a final opportunity toconsider the wording of ICMM’s PositionStatement on Mining and Indigenous Peoples,prior to its approval in May 2008 by ICMM’sCouncil of CEOs. The Position Statement alsoincludes a commitment to development of goodpractice guidance for companies/IndigenousPeoples. A collaborative effort for developingthis guidance is under way and will becompleted in 2009.

Planning for mine closureThe closure of mining operations is a key area ofresponsibility for the metals and mining industry.How mine closure is dealt with has a significanteffect on the long-term environmental impact

ICMM underlined its commitment to buildingconstructive relationships between the miningindustry and local communities this year.

Making a positivecontribution to social and

economic developmentin mining areas

and on the contribution of mining to an area’ssocial, economic and institutional development.

To help companies and communities engagewith each other from the very outset, ICMMpublished its Planning for Integrated MineClosure toolkit in 2008. Designed primarily foroperational managers and staff, the toolkitprovides a number of practical tools to help planfor mine closure throughout the life of the mine.

Integrating closure considerations into anoperation’s planning and engineeringprocesses, and achieving communityownership of the post-closure goals, is animportant mechanism for a mine to createlasting value. The intention is to leave behind apositive, thriving community, that is sustainablefor the future: a community that is working foritself and can continue to do so.

CONTRIBUTINGTO SUSTAINABLECOMMUNITIES

ARTISANAL MININGWhile acknowledging thesignificant differences betweenartisanal mining and large-scalemining, how do we helplegitimize what is sometimes anillegal activity, conducted in poorand unsafe working conditions,but practised by some 20 to 30million people across the globe?

By recognizing that: artisanalmining could play an important

and legitimate role in the socialand economic development ofmany countries; for many people(including some indigenouscommunities) it provides a uniqueopportunity to escape poverty; acollaborative approach betweengovernments, artisanal miners,communities and miningcompanies is needed to improvetechnical, environmental,economic and social practices.

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Climate change, water scarcity, the evolvingrole of Indigenous Peoples, the effects of mineclosures. These challenges stare us in the faceevery day. And, one of the main challengesICMM faces in 2009 is maintaining a focus onthese and other fundamentally importantissues at a time when the financial climateinevitably means cuts in resources.

Our industry and our organization acknowledgethat the issues we face are no longer optional,desirable add-ons to what we already do. Theyare essential to address if we are to ensure that mining is to be the bridge to a better futurethat it can and ought to be – and be seen tobe by society.

Mining is an opportunity to make a verysignificant contribution to society over a longperiod of time – it is not just a cost. ICMM’shealth and safety guidance is aboutsafeguarding lives and livelihoods. TheResource Endowment initiative is about sharingthe benefits derived from the mining and metalsindustry. These initiatives are not dispensable.

At the heart of what we strive for is the issue ofequity and fairness. There comes a point whenlocal people honestly believe that they arecarrying an unfair burden, and that unfairnessis so great that they lose hope in the future, forthemselves and their family. Or equally, thatthe mining companies feel that the demandsplaced upon them are unfair, and they withdrawtheir goodwill.

ICMM addresses the issues that cut across all ofour members, across the industry and acrosssociety. We must maintain momentum when theglobal economy is shrinking dramatically. Wemust encourage collaboration leveraging ourscarce resources. We must find common groundand ensure an equitable distribution of risks,costs, benefits and responsibilities.

We recognize that our operating context isdifferent from that when ICMM was created.Thus we need to adjust to the changes in societyand the business environment. This is why ourstrategic review is so timely and important. It isan essential element in meeting the challengesthat face us – ensuring that the activities of themining and metals sector go hand in hand withthe concepts of sustainability and fairness, andsecuring long-term future benefits for bothcompanies and communities.

EMBRACINGCHALLENGESICMM must continue to adapt to changes insociety so that we remain in a position tocontribute to a responsible industry.

ICMM addresses issues that cutacross all of our members, acrossindustry and across society

09www.icmm.com l Annual Review 200808 ICMM l Embracing change: Embracing challenges

CLIMATE CHANGEClimate change is one of themost significant challenges theworld currently faces. What canthe metals and mining industry,a substantial contributor togreenhouse gas emissions, do tohelp mitigate the effects of thisglobal phenomenon? Besidescommitting to meet or exceedgovernment requirementsrelating to greenhouse gas

emissions, ICMM members aremoving to address the energyand carbon challenge throughactions such as increasingenergy and carbon efficiency incurrent operations, new minedesign solutions, choice ofenergy supply, carbon captureand storage, and the life cyclemanagement of materials.

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11www.icmm.com l Annual Review 200810 ICMM l Embracing change: Changing lives

In August 2008, ICMM launched its Good PracticeGuidance on HIV/AIDS, Tuberculosis and Malaria.The guidance provides practical informationfor disease management, highlighting thebenefits of an integrated approach. It describesa management system that is intended toencourage and assist companies, and issupported with practical and medicalinformation on the three diseases.

The guidance recommends a partnershipapproach to health care and diseasemanagement, and provides valuable insightsinto improving the effectiveness ofimplementation through working with externalgroups, including communities, local andnational health-care providers, internationalinstitutions, governments and NGOs.

Materials management – a changeof emphasisA responsible approach to mining must extendbeyond mining operations to the processing ofthe materials extracted, their use in endproducts and their recycling.

The European Commission, for example, hasthrough its new chemicals management policy– REACH – introduced a significant change inemphasis in terms of public safety. The burdenof proof that the substances and materials

produced by the metals and mining industry aresafe to market and use, no longer lies solelywith governments and public policymakers, butincreasingly with industry instead.

ICMM sees this responsibility as an opportunityto take the initiative, to establish riskmanagement guidelines for metals and to findeffective ways of demonstrating that ourproducts are safe. In 2008, we published twodocuments that help with specific aspects ofREACH. We are also extending the scope of ourmetals risk assessment guidance to includealloys – materials like stainless steel and brass.

Progressing the cause of human rightsAnother area where we are committed toenhancing mining and metals companies’understanding is in the area of human rights. InApril 2008, John Ruggie, the SpecialRepresentative of the UN Secretary General(SRSG) on Human Rights and Business,submitted his report to the UN Human RightsCouncil, which marked the end of his originalmandate to try and give greater clarity to thecontested and fractious area concerning therole of business and transnational corporationswith respect to human rights.

The “Protect, Respect and Remedy” frameworkhe developed was supported by ICMM and abroad spectrum of stakeholders, includingbusiness organizations, governments and NGOs.

The respect aspect of the framework is tied tothe notion of due diligence, which Ruggie hasidentified as the route by which companies can

integrate human rights considerations intotheir business activities. The remedy part of theframework includes the concept of non-judicialgrievance mechanisms through whichcompanies and communities can resolvedifferences of opinion and disputes.

We are progressing with more detailed work onboth fronts – due diligence and grievancemechanisms – and have, for example, alreadyincluded a commitment to mechanisms forresolving disputes within our Position Statementon Mining and Indigenous Peoples .

CHANGING LIVESIn 2008, ICMM published guides on diseasemanagement and chemicals management, andengaged with the UN on human rights issues.

A responsible approach to mining mustextend beyond mining operations

SAVING LIVESAccidents devastate lives. Thenumbers of “near misses”,serious injuries and fatalitiesthat occur each year still presenta significant challenge for theglobal mining industry. How canICMM and its members makethe industry a much saferenvironment for the people whowork in and around it? We take

the issue of health and safetyextremely seriously, promotingstrong and consistentleadership, and the embeddingof a company-wide safety culturetowards zero harm, supportedby visible line management,effective procedures andprotocols, and an understandingof cultural differences.

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13www.icmm.com l Annual Review 200812 ICMM l Embracing change: Adding value

ICMM has a role in contributing to the emergingpolicy area of sustainable consumption andproduction. This theme covers sustainableresource management in the mining and metalslife cycle, including value-chain management,resource productivity and material security.

A number of factors drive increased awarenessof resource efficiency issues, including publicperception of the scarcity of availability ofresources; increasing consumption of resourcesby Brazil, Russia, China and India; and continuedconcerns about the environmental impact andburdens transferred between countries throughtrade in materials.

Governments and policymakers are looking for novel policymaking solutions to get morevalue from the materials we use, both inmonetary terms and with respect to thebenefits generated through their use. Theyare also building frameworks to help assessthe efficiency of resources, both technical

efficiency and efficiency in terms of minimizingthe environmental and human health impactsof resources.

ICMM takes an active role in promoting resourceefficiency. We participated in a joint UnitedNations Environmental Programme/OECDconference on resource efficiency, for example,giving a presentation on materials stewardshipand taking part in panel discussions.

We are also an integral part of the OECD’sactivities on sustainable materials managementand have taken part in meetings, contributedpresentations and discussed with them therelationship between the OECD’s approach tosustainable materials management and theconcept of materials stewardship.

In August 2008, ICMM attended the SETAC(Society of Environmental Toxicology andChemistry) World Congress in Sydney,highlighting the concept of materialsstewardship as a means of optimizing theperformance of the whole life cycle of thematerials and products the industry creates.

Working towards common definitionsMineral reserves and resources provide theeconomic basis on which sustainabledevelopment principles and responsibleresource development can be based. ICMM isworking towards ensuring that such reservesand resources are properly and transparently

reported globally, so that the users of suchinformation can do so in reasonable confidencethat the information is accurate, and that it ispossible to make sound judgements based onthat information.

ICMM, through the Committee for MineralReserves International Reporting Standards(CRIRSCO), is engaged in promotingconvergence and comparability forinternational estimation, classification andreporting of mineral resources and reserves.

In October 2008, CRIRSCO took anothersignificant step towards a more unified globalsystem of reporting when it signed anagreement with the Russian State Commissionon Mineral Reserves (GKZ) to align theinternational and Russian reporting systems. Ahandbook containing guidelines on conversionbetween the two systems will be jointlydeveloped and published in 2009.

We are also working with the United NationsEconomic Commission for Europe and othercountries, including China and Mongolia, onfurther integration of the global reserves andresources reporting system.

ADDING VALUEICMM is helping to build a global consensusin the areas of sustainable consumption andproduction, and the reporting of mineralreserves and resources.

A number of factors arecontributing to increased

awareness of resourceefficiency issues

ICMM is working towardsensuring reserves andresources are transparentlyreported globally

SUSTAINABLE PRODUCTSSociety is increasingly sensitiveto the environmental andsocial performance of theproducts it utilizes and industrymust respond appropriately.How can ICMM members helpmanufacturers develop productsthat make a positive contributionto society? It is recognized that

metals and minerals have a vitalrole to play; the challenge weface is to ensure that thesematerials are used responsibly,reused and recycled. Miningcompanies must work with allactors in the life cycle to ensurethat society gains maximumvalue from our materials.G

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FRAMING ASUSTAINABLEFUTURE

15www.icmm.com l Annual Review 200814 ICMM l Embracing change: Framing a sustainable future

At the heart of ICMM’s work is the SustainableDevelopment Framework that comprises threeinterrelated elements: a set of 10 Principlesthat members are required to implement; acommitment to publicly report performanceagainst the 10 Principles; and independentthird-party assurance of reported performance.

In May 2008, ICMM’s Council committedcompanies to report in line with the GRI G3Sustainability Reporting Guidelines. Thecommitment updated an earlier requirementfor members to report against the GRI G2Guidelines, and a pilot GRI Mining and MetalsSector Supplement produced in 2005.

In a similar vein, Council approved an upgradeto ICMM’s 2006 pilot Assurance Procedure. Therevised 2008 Assurance Procedure, whichresponds to changes in the practice of externalassurance of non-financial reports and to theadoption of the G3 Guidelines, sets out howmember companies can assure bothperformance against ICMM’s 10 Principles aswell as the GRI reporting requirements.

The Mining and Metals Sector SupplementIn addition to upgrading the commitment to G3reporting, ICMM is also working collaborativelywith GRI, in revising the Mining and MetalsSector Supplement.

ICMM catalyzed and was involved in themulti-stakeholder process that led to thedevelopment of the Mining and Metals SectorSupplement for the GRI G2 Guidelines. Since2005, companies have been piloting thesupplement and have found some indicatorsto be more “fit for purpose” than others. In thetransition from the GRI G2 Guidelines to theG3 Guidelines, introduced at the end of 2006,some of the sector supplement indicatorswere incorporated within the mainstreamreporting requirements.

The G3 Guidelines also have much greaterspecificity around the reporting requirementsfor each indicator; they have indicator protocols,describing how a company using the guidelineswould actually report its performance. Theobjective is to ensure greater consistency ofreporting across all reporting companies. As aresult, the current Mining and Metals SectorSupplement is out of date.

Earlier this year, ICMM reached agreementwith GRI on a process to move the pilot Miningand Metals Sector Supplement forward to afinal version, through a GRI-led multi-stakeholder process. The final version will beavailable in mid-2009.

The Sustainable Development Framework, whichis central to ICMM’s mandate, has been refined andreaffirmed by members this year.

The CEOs of our membercompanies approved a revised

procedure for external assuranceof non-financial reports

WATERWhile access to, use of andquality of water resources areissues that can affect the viabilityof mining operations, obtaininga safe and reliable water supplyis a constant concern for morethan 1.1 billion people around theworld. What can ICMM and itsmembers offer to people wholive near mining operations in water-stressed areas? By

understanding the role of waterin the local culture, reusing andreducing waste water, greaterfresh water efficiency, improvinglocal water treatment facilities,providing filtration plants,enhancing water testing– these are just a few of the waysmining companies are combatingthe global water challenge.

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17www.icmm.com l Annual Review 200816 ICMM l Embracing change: Chairman’s statement

In 2008, I was appointed to the role of chairman,having served on the ICMM Council since May2005. It was also the year in which the crisisin the financial sector led to a global financialslowdown.

The difficult business environment that wenow are experiencing is having severe impactson ICMM’s members. These impacts will notdeter the commitment of ICMM’s membersto operate their businesses in a responsiblemanner, nor will these impacts undermine theimportant progress that ICMM is making.

ICMM has contributed greatly to theperformance of its member companies inthe areas of health, safety, environmentaland materials stewardship, socio-economicdevelopment and sustainable development ingeneral. It is through the member companies’leadership in these critical areas, united by aset of common core values, that we can serveas an example for the mining and metalsindustry globally.

To achieve these goals, participation by thechief executives of member companies in thework of ICMM is essential. Interaction amongmy fellow Council members must continue tobe straightforward and candid in providingleadership to address the complex issuesfacing the mining and metals industry.

Looking to 2009 and beyond, my goal is toensure that ICMM through its members willcontinually strive to improve the mining industryat large, with emphasis on safety, health andenvironmental stewardship and on sustainabledevelopment. We will work to enable localcommunities to participate in and benefit fromthe economic development from mining and toensure that mining and metals operations areconducted in a transparent manner.

We will achieve this through specific actions.One example is the continuation of theResource Endowment initiative to study theeffectiveness of our industry’s impacts onregional economies and the well-being of localcommunities. The successful implementationof third-party assurance on membercompanies’ commitment to ICMM’sSustainable Development Framework, and thedevelopment of processes and policiesdesigned to reduce fatalities in the workplaceare also core priorities in our current agenda.

ICMM has made considerable progress over itsseven-year history, but we are not a complacentorganization satisfied with our accomplishments.We are conducting a strategic review to developpriorities as we move forward in challengingeconomic times so that we continue to enhancesustainable development practices; tocommunicate our successes and challenges tothe broader industry, to governments and toothers with interests in our industry; and toensure that our programs and priorities evolveto meet the needs of a changing industry withinan ever evolving society.

Richard Adkerson, Chairman

CHAIRMAN’SSTATEMENT

ICMM Council members – December 2008Klaus KleinfeldAlcoa, President and Chief Executive Officer*Cynthia Carroll (ICMM Treasurer)Anglo American, Chief Executive OfficerMark CutifaniAngloGold Ashanti, Chief Executive OfficerAaron RegentBarrick, President and Chief Executive Officer Marius Kloppers (ICMM Deputy Chairman)BHP Billiton, Chief Executive OfficerGuy ThiranEurometaux, Secretary GeneralRichard Adkerson (ICMM Chairman)Freeport-McMoRan Copper & Gold, President and Chief Executive OfficerAlan WrightGold Fields, ChairmanAnthony HodgeICMM, PresidentArthur HoodLihir Gold, Managing Director and Chief Executive OfficerIan FarmerLonmin, Chief Executive OfficerMitchell HookeMinerals Council of Australia, Chief Executive OfficerAkihiko IdeMitsubishi Materials, PresidentRichard O’BrienNewmont, President and Chief Executive OfficerMasanori OkadaNippon Mining & Metals, President and Chief Executive Officer Andrew MichelmoreOZ Minerals, Chief Executive OfficerTom AlbaneseRio Tinto, Chief Executive OfficerNobumasa KemoriSumitomo Metal Mining, PresidentDonald LindsayTeck, President and Chief Executive OfficerRoger AgnelliVale, President and Chief Executive OfficerMick DavisXstrata, Chief Executive Officer

*Alcoa’s membership of ICMM ended on 31 December 2008,following its resignation in December 2007.

“ICMM has contributed greatly to the performanceof its member companies in the areas of health,safety, environmental and materials stewardship,socio-economic development and sustainabledevelopment in general.”

19www.icmm.com l Annual Review 200818 ICMM l Embracing change: Reaching out

An important part of what we do at ICMM iscommunicating with and listening to all interestsimportant to mining, including governments,NGOs, multilateral agencies (such as the WorldBank and IMF) and intergovernmental bodies(such as UNCTAD), industry companies andassociations, Indigenous Peoples, labour groups,investors and financiers, a broad range ofconsultants and service suppliers, CSRspecialists, academics and the media.

To help make this task easier, ICMM’s websitewas relaunched in May 2008. We improved thesignposting of content, increased the website’svisual richness and made the site more user-friendly. The result – a more effective andflexible way to reflect and highlight differentaspects of our work.

The feedback has been overwhelminglypositive, and we believe the new website hashelped us to create better links between ICMMand our member companies. It has alsoallowed us to demonstrate, through the use ofcase studies, the practical impact of our workon the ground.

PublicationsWe continue to produce a number of highquality, informative publications to support thedissemination of our work and the work itself.

Our most popular publication was the Planningfor Integrated Mine Closure: Toolkit with over4,000 downloads from the website.

One particular achievement in 2008 was KathrynMcPhail winning the Bronze Award for theInternational Finance Corporation/FinancialTimes essay competition, from 750 entries.

Her essay, entitled “Sustainable Developmentin the Mining and Minerals Sector: The Case forPartnership at Local, National and GlobalLevels”, looked at the development role ofmining, in particular at the findings andrecommendations from ICMM’s ResourceEndowment initiative, and can be downloadedfrom ICMM’s website.

Engagement and eventsAs usual, ICMM participated in a number ofevents during the year as part of its remit toengage with stakeholders, discuss its work anddisseminate information: some key examplesare illustrated below.

Good Practice Newsletter,Vol. 7 Issue 2 – Investingin a Better Future(December 2008)

Sustainable DevelopmentFramework brochure –(October 2008)

Resource Endowmentinitiative – Spotlight 13 –Taxing Challenges II(September 2008)

Resource Endowmentinitiative – Spotlight 12 – Peru(September 2008)

Good Practice Guidance onHIV/AIDS, Tuberculosis andMalaria (August 2008)

Planning for Integrated MineClosure: Toolkit (August 2008)

Ghana: Action Learningthrough Partnerships –Spotlight 11 (August 2008)

ICMM Assurance Procedure(July 2008)

REACH pre-registrationrequirements (July 2008)

REACH pre-registration andregistration requirements forimported alloys (July 2008)

Resource Endowmentinitiative – Spotlight 5 –Resource Endowment Guide(June 2008)

Good Practice Newsletter,Vol. 7 Issue 1 – BusinessDrivers for Sustainability(June 2008)

The Case for Partnership atLocal, National and GlobalLevels – an award winningessay (May 2008)

ICMM Position Statement onMining and IndigenousPeoples (May 2008)

ICMM Annual Review 2007(March 2008)

ICMM publications released in 2008

REACHING OUTStrengthening engagement with all partieswith an interest in the mining and metalsindustry is a core part of ICMM’s mandate.

HighlightsICEM Global Mining Congress –St. Petersburg, Russia Kathryn McPhail was one of the few businessrepresentatives invited to speak at ICEM’squadrennial world congress on mining in July,which was attended by 41 national miningunions from 37 countries.

IUCN’s 4th World Conservation Congress –Barcelona, SpainICMM emphasized the value of private sectorparticipation in delivering conservationoutcomes at the congress, which attractedover 8,000 participants from conservationgroups, governments, NGOs and IndigenousPeoples groups.

African Union Conference of MinistersResponsible for Mineral ResourcesDevelopment – Addis Ababa, EthiopiaA delegation of ICMM members took part ina roundtable session on the contribution ofmining to economic development andpoverty reduction in Africa along withinternational donor organizations and the35 governments represented.

Business for Social Responsibility (BSR)Conference – New York, USAAidan Davy took part in a panel session onbusiness and human rights at BSR’s 15thannual conference. Over 1,300 people from 50countries gathered to engage with leadingplayers in responsible business practice.

21www.icmm.com l Annual Review 200820 ICMM l Embracing change: Members

AssociationsCámara Argentina de Empresarios Mineros (CAEM)Cámara Asomineros Andi – ColombiaCámara Minera de MéxicoCámara Minera de Venezuela (CAMIVEN)Chamber of Mines of South AfricaChina International Mining GroupCobalt Development InstituteConsejo Minero de Chile A.G.EurometauxEurominesFederation of Indian Mineral IndustriesIndonesian Mining AssociationInstituto Brasileiro de MineraçaoInternational Aluminium InstituteInternational Copper Association (ICA)International Lead AssociationInternational Molybdenum Association (IMOA)International Wrought Copper CouncilInternational Zinc AssociationJapan Mining Industry AssociationMinerals Council of AustraliaMining Association of CanadaMining Industry Associations of Southern Africa (MIASA)National Mining Association (NMA) – USANickel InstituteProspectors and Developers Association of CanadaSociedad Nacional de Minería (SONAMI) – ChileSociedad Nacional de Minería, Petróleo y Energía (SNMPE) – PeruWorld Coal InstituteWorld Gold Council

Companies Anglo AmericanAngloGold AshantiBarrickBHP BillitonFreeport-McMoRan Copper & GoldGold FieldsLihir GoldLonminMitsubishi MaterialsNewmontNippon Mining & MetalsOZ MineralsRio TintoSumitomo Metal MiningTeckValeXstrata

MEMBERSAt the heart of ICMM are its 17 membercompanies – some of the world’s largest mining and metals companies – as well as 30regional, national and global mining andcommodity associations.

Our members include the largest producers of gold, platinum and iron ore in the world and the second largest zinc producer. Theyoperate in over 60 countries, and provideemployment for some 750,000 people. Eightmembers are in the top 15 mining companiesby market capitalization.

Our 30 member associations – made up of14 national and regional mining associationsand 16 international commodity associations –play an essential role and, through theirmembers, extend our reach to over 1,500companies worldwide, some 35% of allproducing mining companies.

Our member companies are leaders in theindustry. Their actions, operations, the rawmaterials they produce, impact the lives ofmillions of people worldwide. However, withsuch a degree of influence comes responsibility.

This is a responsibility that is acknowledged by ICMM member companies through theircommitment to our Sustainable DevelopmentFramework (see pp. 14–15 for details). Each hasagreed to meet their reporting and assurancecommitments for their 2010 sustainabilityreports (i.e. their reports for the financial yearending December 2009 or March 2010).

In moving towards this deadline, there hasbeen significant progress. At the end of 2008,16 of ICMM’s member companies (from our2009 member list, see right) reported in linewith GRI Guidelines and 13 referred to theMining and Metals Sector Supplement. Inaddition, 13 companies sought independentexternal assurance of their reportedinformation. ICMM’s Assurance Procedurerequires that members’ reports produced in2010 meet the A+ Application Level of the GRIG3 Sustainability Reporting Guidelines andhave been independently assured.

23www.icmm.com l Annual Review 200822 ICMM l Embracing change: Governance and financials

ICMM SecretariatAnthony Hodge PresidentSarah SternExecutive AssistantJohn AthertonSenior Program DirectorKathryn McPhailSenior Program DirectorChristine CopleyProgram DirectorAidan DavyProgram Director

Ben PeacheyCommunications DirectorAnne-Marie FleuryAssociate Program DirectorHelen AtkinsonFinance ManagerBenjamin DaviesSenior Program OfficerFernanda DiezSenior Communications OfficerNathalie GoadCommunications Officer

Sara OvuikeProgram OfficerClaire WhiteProgram OfficerHanna HindstromCommunications AssistantGemma LeeTeam Support OfficerChitalu MulengaResearch Assistant

Notes:

i) ICMM operates its accounts in UK£ – figures have beenconverted using an exchange rate of US$1.4 as of 31December 2008.

ii) The 2008 figures are based on unaudited accounts – auditedfigures are reviewed by ICMM’s Council in May of each yearand can be obtained from ICMM on request.

iii) Company member fees are distributed proportionatelyusing a funding formula based on annual turnover and profit.Association members pay a flat membership fee of $US1,750.

iv) The discrepancy between prior year unspent income ofUS$0.73m and the figure reported in the 2007 Annual Review(US$1.04m) is due to exchange rate fluctuation.

v) Expenditure on salaries and benefits has been distributedbetween work program and secretariat expenditureproportionately in line with the job responsibilities of eachICMM staff member.

vi) Work program expenditure is split by the work programthemes through which we manage the ICMM work program.To find illustrations of the work carried out within each themein 2008, use the following page references:

Reporting and Assurance (Sustainable DevelopmentFramework) – pp. 14–15Community and Socio-economic Development – pp. 6–7/10–11Resource Endowment – pp. 4–5Materials Stewardship – pp. 10–11/12–13Health and Safety – pp. 10–11Environment – pp. 6–7Communications and International Representation – pp. 18–19Reserves and Resources – pp. 12–13EITI – ICMM makes an annual contribution to EITI on behalf of itsmembers. Visit www.eitransparency.org for details of its work.Strategic Review – pp. 2–3

ICMM’s principal governing body is a Councilthat is comprised of the chief executives of all17 member companies, two electedrepresentatives from the member associationsand ICMM’s president.

The Council meets twice a year and isresponsible for setting the strategic direction ofthe organization, establishing its policies andpriorities, and approving the business plan andbudget. It must also respond to any allegedbreaches of ICMM’s standards by a member.Currently, the officers of the Council are itsChairman, Richard Adkerson, President andCEO of Freeport-McMoRan Copper & Gold;Deputy Chairman, Marius Kloppers, CEO ofBHP Billiton; and Treasurer, Cynthia Carroll,CEO of Anglo American.

The Council is supported by an ExecutiveWorking Group (EWG) that is comprised ofrepresentatives from all memberorganizations. The EWG sets the annual workprogram and budget for approval by Council.

ICMM also includes an Associations Co-ordination Group and a permanent secretariatbased in London. Members’ task forces areestablished to address priorities and currentlyinclude environmental stewardship andbiodiversity, community and social development,health and safety, materials stewardship,reserves and resources, and communications.

The EWG meets four times a year, while taskforces and the Associations Co-ordination Groupmeet twice a year, normally in May and Octoberin London, to advance the work program.

A breakdown of 2008 operational income andexpenditure and 2009 forecast income andexpenditure is shown on the facing page.The income and expenditure figures are brokendown in the way illustrated to provide atransparent overview on the source of ourincome, and how we spend that money to achievethe outcomes described throughout this review.

GOVERNANCEAND FINANCIALS

Financials – income and expenditure2008 2009 forecast

US$m US$m

Company member fees 6.12 6.42Association member fees 0.05 0.05Unspent income (prior year) 0.73 0.44Interest received 0.17 0.18Total revenue 7.07 7.09

Work program expenditureReporting and Assurance 0.27 0.22Community and Socio-economic Development 0.22 0.31Resource Endowment 0.41 0.44Materials Stewardship 0.29 0.43Health and Safety 0.21 0.28Environment 0.32 0.43Communications and International Representation 0.50 0.51Reserves and Resources 0.08 0.16EITI 0.22 0.24Strategic Review 0.05 0.24Salaries and benefits (work program expenditure) 1.70 1.80Sub-total 4.27 5.06

Secretariat expenditureOperating costs and overheads 1.39 1.24Salaries and benefits (administration and support) 0.97 0.82Sub-total 2.36 2.06Total expenditure 6.63 7.12Balance (carried forward) 0.44 -0.03

Interest received (2%)

Unspent 2007 income (10%)

Association member fees (1%)

(87%) Company member fees

2008 income

(3%) Health and Safety

(5%) Environment

(4%) Materials Stewardship

(21%) Operating costsand overheads

(3%) Community andSocio-economic Development

(4%) Reporting and Assurance

(6%) Resource Endowment

Salaries and benefits(work program expenditure) (26%)

Strategic Review (1%)

Reserves and Resources (1%)

EITI (3%)

Communications andInternational Representation (8%)

Salaries and benefits(administration and support) (15%)

2008 expenditure

Design Tim Lawrie / The Communication Solution Limited

Writing Steve Coomber

Printing Miter Press Limited

Produced by the Business Communication Forum (www.thebcf.com)

This review is printed on HannoArt Silk – manufactured by Sappi FinePaper Europe from ECF (Elemental Chlorine-Free) pulp. The pulp issourced from sustainable producers based mainly in Germany and Sweden.

The paper is 100% recyclable, biodegradable and acid-free. The productionmill has ISO 9001 quality and ISO 14001 and EMAS environmentalcertification. The inks are formulated from renewable resources and areabout as environmentally friendly as can be reasonably expected.

Online copies of this review can be downloaded from www.icmm.com

List of abbreviations and acronyms

CEO – Chief executive officer

CSR – Corporate social responsibility

EITI – Extractive Industries Transparency Initiative

GRI – Global Reporting Initiative

ICEM – International Federation of Chemical, Energy, Mine and GeneralWorkers’ Unions

IMF – International Monetary Fund

IUCN – World Conservation Union

NGO – Non-governmental organization

OECD – Organisation for Economic Co-operation and Development

REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals

UN – United Nations

UNCTAD – United Nations Conference on Trade and Development

Photography credits

BHP Billiton; Freeport-McMoRan Copper & Gold; Lonmin; OZ Minerals;Teck; Xstrata.

The top left picture on p. 8 is provided courtesy of IFC CommDev.

Full details on all photography is available at www.icmm.com/annualreview.

www.icmm.com

ICMM35/38 Portman SquareLondon W1H 6LRUnited Kingdom

Telephone: +44 (0) 20 7467 5070Fax: +44 (0) 20 7467 5071Email: firstname.lastname@icmm.comor info@icmm.com

Back cover picture: AntaminaThe Antamina deposit is located 270 kilometres northof Lima in the Peruvian Andes at an elevation of 4,300metres. It is the largest known copper–zinc skarn inthe world. Economically recoverable minerals includecopper, zinc, molybdenum and lead-silver-bismuth.The deposit sits at the bottom of a U-shaped glacialvalley surrounded by limestone ridges some of whichare exposed in the open pit walls shown in this photo.

The mine itself is one of the world’s largestcopper–zinc mines and has an expected lifespan ofaround 20 years. It is a joint venture between threeICMM member companies – BHP Billiton (33.75%),Xstrata (33.75%), Teck (22.5 %) – and the MitsubishiCorporation (10%).

Antamina employs 1,800 people directly and 3,500indirectly. It began commercial production in October2001 at a capital cost of US$2.3 billion, the mostsignificant investment in Peruvian mining history. Ithas an annual production capacity of approximately275,000 tonnes of copper and 165,000 tonnes of zinc.The copper and zinc concentrates are transported bya 300-kilometre pipeline to the Pacific coast, wherethey are filtered for shipment to smelters.

The operating company – Compañía Minera Antamina– has set out a number of explicit sustainabledevelopment goals, including the provision of 100%access to basic services such as water and electricityfor communities in the area of impact.

www.antamina.com