n2003 sustainable development report

n 2003 SUSTAINABLE DEVELOPMENT REPORT

ENVIRONMENT 22 A 29

n Controlling Environmental impact• Interview: Restoring hectares of lowland heathland in Cornwall by Ian Davies

• Mine waste: addressing the acid drainage problem upstream

• Case study: Brazilian reforestation project

n KPI’s results & comments

HEALTH & SAFETY 30 A 33

n Making the workplace safe for everyone• Interview: Reducing accident rate with focus on safety culture by Marc Bowers

• 35 years without a lost-time accident at Dalton plant• Case study: A preventive policy in Clay Roof Tiles & Bricks divisions


HUMAN RESOURCES 34 A 41

n Operational empowerment supported by international professionals• Imerys Graduates Program• Training Program for Sales Managers and Sales people • Imerys partnership with Angers Work Center

for the mentally handicapped • Restructuring at Imerys do Brazil and at Imerys TC

• Diversity at Les Ardoisières d’Angers


INNOVATION 42 A 47

n A sustainable framework for innovation• Interview: Launching life cycle analysis: a thorough process by Philippe Osset

• Using kaolin to make greener tires?• Reducing pollution from cars and trucks with kaolin products

• Making more efficient use of kaolin reserves• Green value-added from synthetic graphite• Case study: The Magic Process

COMMUNITY RELATIONS 48 A 51

n Adapting our actions to local situations• Interview: Signing a BEE agreement by Jean-Pierre Jouin• Chinese education fund• Case study: Broader involvement with local communities in Cornwall

n Corporate Governance 52-53

n Glossary 54

Imerys 2003 Sustainable Development reportis a publication of the Imerys Group - Imerys is a Limited Liability company

with a Managing Board and a Supervisory Board with a share capital

€126 965 960 – 562 008 151 RCS Paris B - Design & production :

Photos: Imerys library, Eddy Cervo, Colin Robins, Guy Vivien, Chris Saville.

Printed in November 2004 on paper containing Imerys pigments.

Table ofcontents

n Message from the CEO 3

n Assurance statement 4-5

n Imerys locations 6-7

n Imerys profile 8

n Sustainable Development charter 9

n Strategy 10-16

• A major new step towards Sustainable Development 10-14- A progressive process

• Methodology and Scope 15-16

n List of key performance indicators 17

n Initiatives within divisions 18-20

3 n Message from the CEO

aa

This report is a milestone in our SustainableDevelopment process. This major strategic initiativehas the objective of ensuring that in all places and at alltimes, we use the best available practices in our miningand processing activities. This ambition goes beyondmere compliance with local and national regulations.

Imerys has grown and will continue to grow in thefuture via acquisitions and organic growth in regionswhere regulating constraints may differ from what theyare in Western Europe or North America. Our Sustainable Development process will ensurethat the values we share, and that are progressivelyformalized, are applied everywhere we operate.

In 2003, our Sustainable Development initiativeconsisted mostly in defining the indicators enablingus to check that our internal policies are enforced.In defining these indicators we favored reliability over exhaustiveness.

This process will also allow us to co-ordinate ourefforts and enhance the impact of the many diverseSustainable Development actions in progress inour business groups, such as health & safety policy, siterestoration and energy consumption.

Our Sustainable Development action is first andforemost a continuous improvement process based on the commitment of all our managers and employeesin their day-to-day work. Ensuring the long-termfuture of our activities, it will open up new paths to excellence and growth for the benefit of all stake-holders: employees, customers, shareholders andthe communities in which Imerys develops its activities.As such, it is the best guarantee of our successfulindustrial and financial performance. aa

DEAR READER,

GérardBuffière

4 n Assurance statement

involved in the preparation of any mate-rial included in this report.

URSVL has carried out its services by check-ing samples of data, information and docu-ments which have been made available toURSVL by Imerys. Accor-dingly, URSVLhas not checked or reviewed all of Imerys’data, information and documents. Theverification statement provided herein byURSVL is not intended to be used as adviceor as the basis for any decisions, including,without limitation, financial or investmentdecisions.

n Verification MethodThe approach followed by URSVL isaligned with international frameworksoutlining the general requirements forbodies operating independent assessments.We have embedded in our approach certainprinciples of the Global Repor-ting Initia-tive (GRI) and the assurance element ofAA1000, an accountability framework.

The methodology developed by URSVL tomeet the identified objectives comprised:

n a series of interviews with individualsresponsible for various aspects of thesustainable development programmeat both a corporate and businessunit/country level;

n site visits to enable root data verifica-tion of quantitative health, safety and

environmental data for the global indi-cators from ten operations identified asbeing significant contributors to Imerys’environmental footprint, from a selec-tion of business groups and divisionswithin the geographical scope;

n verification of quantitative HR data atUK divisional level;

n interviews focusing on a sample ofImerys’ case studies.

Imerys limited the scope of the data collec-tion processes for this first sustainabilityreport to the UK, USA, Brazil and France.Consequently, URSVL’s verificationprocess has only considered activitieswithin these countries.

n Opinion- StrategyIt is URSVL’s opinion that the launch ofImerys’ Sustainable Development Initia-tive (which began in 2002) has prima-rily been a process of formalising andstandardising what already existed at ope-rational level. It has prompted sharing ofknowledge and information across theorganisation in order to capture and thenimplement the most effective strategiesand programmes at a corporate level. Webelieve that the initiative is being inte-grated into business functioning at alllevels of management, and found thatpersonnel interviewed were generally

n Verification objectives and scope URS Verification Ltd (URSVL) wascommissioned by Imerys to provide assurance on selected data and claimspresented in their first Sustainable Devel-opment Report, covering the period2002-2003.

Key objectives of URSVL’s verificationprocess were to assess the:

n transparency and completeness of theinformation reported;

n capacity and robustness of data collectionsystems;

n accuracy of a sample of case studiesand of performance data for environ-mental, health, safety and human res-ources statistics at a number of sites;

n status of the implementation of Imerys’Sustainable Development Initiative andassociated strategies and programmes.

n Responsibilities The information contained in the Sus-tainable Development Report is the soleresponsibility of Imerys. This verificationstatement represents the independentopinion of URSVL. URSVL was not

5 n Assurance statement

aware of risks and impacts in their areasof responsibility, and there was evidencethat staff were committed to Imerys’Sustainable Development Initiative.

URSVL notes that while standardisedframeworks and strategies for manage-ment of health, safety and environmen-tal issues are still under development ata corporate level, environmental, healthand safety risks were generally found tobe recognised and managed well at ope-rational level. We observed that deve-lopment of corporate-level humanresource systems are in a more advancedstage of implementation, with the systems(in place and planned) covering the keyareas of risk.

- Transparency and CompletenessIt is URSVL’s opinion that the text anddata (including case studies) has beengenerally presented in a fair and balancedmanner. URSVL understands quantita-tive parameters included in Imerys’ reportwere largely selected on the basis of avai-lability of data, and that Imerys intendsto increase the scope of regional andprocess-specific parameters reported inthe future. Data and information pre-sented on human resources in the reportis considered to be generally transparentand complete. Quantitative reportingon health and safety data is limited inscope to frequency and seve-rity rates for2003. URSVL notes that where quanti-

tative environmental data is not avail-able, Imerys has increased transparencyby reporting qualitatively on environ-mental issues.

- AccuracyA number of systems have been used tocollect and generate the data for thisreport, which are in different stages ofdevelopment. The human resource datamanagement system is the most esta-blished and in URSVL’s opinion the datapresented in this area is representative ofoverall performance. The intranet-basedsystem for environmental data collectionhas been developed and implementedduring the course of 2004 to enableproduction of this report, and has goodpotential to generate robust data. A fewminor errors in data within this systemwere identified at an operational levelwhich in URSVL’s opinion are attribu-table to the recent introduction of thesystem. Further integration of the systemand increased guidance should enableincreased accuracy in the future. InURSVL’s opinion the aggregated envi-ronmental data set in this report is repre-sentative of Imerys’ environmentalperformance.

Health and safety data is currently collatedthrough correspondence from countryhealth and safety coordinators. URSVLassessed these systems and their robust-ness at an operational, country and corpo-

rate level and it is our opinion that healthand safety data are representative of ove-rall performance.

- Future OpportunitiesURSVL believes that as the SustainableDevelopment Initiative develops, lessonslearnt from this first reporting processwill certainly assist in improving the ove-rall efficiency and method of data collec-tion and hence the overall reliability ofinformation in future reports.

Imerys has made commendable progresson the development of their first Sustaina-ble Development Report. The planningundertaken to enable production ofthis report including systems and pro-cesses for data collection across such adecentralised organisation has beenthorough. ●

Director,for and on behalf of URS Verification LtdLondon October 2004

David Westwood

North Ameri

19,0%

South America:

9,9%

6 n Imerys locations

Imerys is active in 38 countries with

nVenezuela

n Brazil

nArgentina

n Spa

BM SM

R&A

PP SM R&A

SM

n Canada

ca:

n Mexico

n United States

PP SM

PP SM R&A

SM

n United Kingdom

n France

PP BM R&A

n Sweden

n Netherlands

n Belgium

n Germany

n CzechRepublic

n Austria

n Tunisia

n Italy

n Slovenia

n Switzerland

in

n Portugal

PP BM SM R&A

PP SM R&A

PP SM R&A

PP SM R&A

PP SM R&A

PP SM R&A

SM

SM R&A

PP R&A

SM

R&AR&A

SM

* (including 70 roofing products distribution agencies in France)

n Imerys locations by business group (end of 2003)

SM PP BM R&A

NUMBER OFINDUSTRIAL AND 103 42 96* 49SALES SITES

NUMBER OF 22 20 3 20COUNTRIES

Afric

,6%

7 n Imerys locations

over 280 industrial and sales sites

PIGMENTS FOR PAPER

a:

Asia - Pacific:

6,0%

SPECIALTY MINERALS HEADCOUNT BY COUNTRY

n Russia

nThailand

n India

n Singapore

n Japan

nAustralia

n Indonesia

n China

n Malaysia

nTaïwan

n New Zealand

SM

PP SM

PP

PP

PP SM R&A

SM

PP SM

PP

PP

PP SM

SM

Europe:

60,5%

n Finland

n Poland

n Ukraine

n Turkey

SM

n Hungary

SM R&A

PP

SM

R&A

4

n South Africa

n Zimbabwe

R&A

SM

BUILDING MATERIALS

REFRACTORIES AND ABRASIVES

PERCENTAGE OF HEADCOUNT BY CONTINENT

PP

SMSM

BM

R&A

8 n Imerys profile

KEY FIGURES

Employeesworldwide:

13,8022003 consoli-dated sales:

€2,729 million

2003 operatingincome:

€372million

- understanding materials, their pro-perties and physical characteristics;- acting on materials to transform themand achieve the desired effect.

Imerys combines these two key leverswith three long-term competitiveadvantages:- access to diversified, high-qualityminerals reserves that are geographicallywell-balanced and guarantee the supplyof its plants for many years to come;- in-depth grasp of complex productionprocesses that are adapted to the speci-ficity of each deposit and application;- close relations with major internationalcustomers, in the framework of partner-ships based on the Group’s capabilitiesin terms of research, technology andproduct development.

The wealth of the Group’s mineralsportfolio gives it strong strategic posi-

SpecialtyMinerals

Pigments for Paper

BuildingMaterials

Refractories& Abrasives

IMERYS BUSINESS MARKETS & APPLICATIONS PRODUCTSGROUPS

floor and wall tiles, plastics, paint, tableware,sanitaryware, building & chemicals,sealants & adhesives, rubber, mobile energy,parapharmacy & cosmetics, fiberglass,catalysts, kiln furniture…

filler and coating applications for the paper industry

new housing and renovation

aerospace, automobile, casting, cement,ceramics, construction, electronics, environment,glass,incineration, non-ferrous metals,petrochemicals,power generation, steel…

A globally based mining and mine-rals processing company, Imerysprovides its industrial customers

with tailor-made solutions for impro-ving the performance of their manu-facturing processes and end products.

Imerys’ approach to the design andimplementation of those solutions isbased on the development of know-ledge and expertise:

UnderstandingAND ACTING ON MATERIALS

BUSINESS-BASED ORGANIZATION

ground calcium carbonate, kaolin, fine ceramicclays, ceramic bodies, calcined kaolin, naturaland synthetic graphite, precipitated calciumcarbonate, kiln furniture, feldspar, carbon black,Thiviers sandstone, halloysite, vermiculite…

kaolin, ground calcium carbonate, precipitatedcalcium carbonate

clay roof tiles and accessories, clay bricks for walls and partitions, chimney blocks,prestressed concrete products, natural slates

minerals for refractories (alumina and silico-aluminous), fused aluminum oxide for abrasives,shaped and unshaped monolithic refractories

tions. The great diversity of its endmarkets, customer segments andgeographic bases increases its ability toweather changing economic condi-tions. The Group builds its growth onthe development of high value-addednew products or applications and ontargeted acquisitions that enable it tobroaden its range of minerals and diver-sify its markets. ●

SALES BY BUSINESS GROUP

SALES BY GEOGRAPHICDESTINATION

■ Specialty Minerals■ Pigments for Paper■ Building Materials■ Refractories & Abrasives

■ Europe (of which France: 26%)■ North America■ Other (of which Asia: 8%)

22%27%

61%

27%

25%

24%

14%

9 n Sustainable Development charter

To take all stakeholder issues into consideration

I merys is a mineral mining and processing companyoperating on a global basis in a wide range of minerals.We believe that high standards for social and

environmental behaviors in all of our businesses areessential to achieve the financial and non financial goalsof the Group. Imerys’ standards follow the principles ofSustainable Development: Economic efficiency, Socialequity, Health & Safety and Environmental responsibility.For Imerys, Sustainable Development takes intoconsideration all stakeholder issues:

- safe employee practices and healthy work environment;

- positive, challenging and rewarding careers for employees;

- respected status in our local communities;

- responsible environmental management;

- efficient use of mineral reserves;

- quality customer and supplier relationships;

- development of quality products & technologies

that are environmentally safe;

- clear and regular communication to shareholders.

Each operating division within the Group is requiredto implement Sustainable Development principlesin their business plans and decision-making process.Imerys will work actively for continuous improvementin the environmental and social performance of itsactivities.Awareness and training programs will bedesigned and implemented. Relevant quantitativemeasures will be made, where possible, to demonstrateprogress.” ●

On February 3, 2004, the Imerys Managing Board took up its Sustainable Development Charter.

nn

1998France - Corporate

First issue of the Letter to Shareholders.

1999France - Refractories & Abrasives

Implementation of the waterproof tailings process at Damrec, Brittany.

1999France - Specialty Minerals

Invention of the Proclays process for watertight landfills by Imerys Tiles Minerals.

10 n Strategy

A major new TOWARDS SUSTAINABLE DEVELOPMENT

2001France - Building Materials

Launch of the first safety challenge in the Clay Roof Tiles and Bricks division.

2000France-UK-USA - Corporate

Launch of the first Group Shareholding Plan subscription.

In line with the commitments made in the 2002 and 2003annual reports, this document gives an overview of ourgroup’s environmental, human resources and social aspects

– in other words, its impact on the environment, the actionstaken in favor of its employees and its Sustainable Developmentobjectives. Designed to complement the annual report as an informationtool, this document was written for a broad spectrum of audi-ences: customers, the communities the Group operates in,employees, shareholders, public authorities, financial analysts,suppliers, etc. As Imerys views its Sustainable Developmentapproach as a learning process, all readers will soon be able tocomment on the report on our website.

Clearly identified goalsOur determination to implement a Sustainable Develop-ment policy corresponds above all to an ethical resolvethat has long been part of our functioning principles. Itis also a process for shared progress that safeguards Imerys’future by opening up new paths for growth and risk control.We believe that such a policy is beneficial and value-creating for our employees, customers and shareholders.As a constant quest for progress, one of the priorities forour geologists and our industrial process and applicationsengineers is to improve constantly our processing tech-niques. In this way, mineral reserves are exploited moreand more efficiently and our product lines are optimizedaccording to the nature of the deposit. The resultingdecrease in the utilization of natural resources, of course,also means lower production costs.

The publication of this report is a milestonein the Sustainable Development processlaunched by Imerys in 2002.For the first time, the Group is publishingquantitative information on its performance on health & safety, the environment and human resources for a large part of its scope of business.

11 n Strategy

step

2001France - Corporate

Setup of the Group EuropeanWorks Council.

2001UK - Pigments for Paper & Specialty Minerals

All industrial sites in Cornwall are certified ISO 14001.


Market launch of Gelis Monomur.

A growth driverOur Sustainable Development process is a key orientationfor our Research & Technology teams, who are committedto developing products that are environmentally-friendly orcan replace others with greater ecological impact. For exam-ple, Timcal’s high-purity synthetic graphite is used to makealkaline batteries without mercury or cadmium; specificclays form waterproof barriers below landfills; and calcinedkaolin is used to make plastic films with an infrared barrier,enabling produce to be harvested sooner with no need forheating. Finally, products like the photovoltaic roof tile orthe Monomur insulation brick meet the needs voiced byboth architects and private customers for simpler construc-tion, cost reduction and innovation.Integrating a sustainable development approach into anaggressive innovation policy opens up new markets, as therecycling of pigments contained in paper shows. This majorfocus of the Group’s research is likely to lead to new outletsin addition to the markets already served by natural pigments.

Limited minimized risksMost of the Group’s activities are located in countries withextensive environmental and social legislation. Our primarygoal is absolute regulatory compliance in every countrywhere we operate. But that is not enough. Beyond nationallegislation, internal guidelines must be defined on a numberof key issues, such as restoring our mining sites, which aremostly open pits and therefore consume a great deal ofsurface. Consequently, the environmental quality of quarryremediation, as well as post-mining development decisions

that benefit local populations, are fundamental factors, notonly for environmental performance but also for the conti-nued granting of operating permits. For that purpose, in2004 and 2005 the Group will draw up quarry remediationstandards that apply to all its open-cast operations.Combined with a preventive policy, our Sustainable Deve-lopment process keeps the risk of damaging crises for thecompany to a minimum. It helps to maintain a positiveimage with the communities in which we are active, andwith public authorities. This sustains our ability to retainour mining rights, as the mining industry is one of the mosttightly regulated sectors. Our preventive policy is particu-larly based on the implementation of a compliance auditsprogram over three years, starting in 2004. Finally, it is alsotrue that the globalization of markets like the paper indus-try, the cross-border nature of some environmental impacts(e.g. CO2 emissions) and ethical inves-ting raise demandfor Group-wide information. This report goes some waytowards answering that need.

Priority: data reliabilityIn this first report, reviewed for completeness and accuracyby an independent external organization, URS Verification,

Continued on page 12 nnn

12 n Strategy

2002USA - Specialty Minerals

National certification for the wildlife managementprogram of K-T Clays at Crenshaw site, Mississippi.

2002USA - Specialty Minerals

K-T Clays partnership in the Blue Ridge Parkway.


Launch of the photovoltaic roof tile in association with the French environmentalagency ADEME.

Key Performance Indicators (KPI’s) are presented for 2003and, whenever possible, for 2002. For the time being, theindicators only concern France, Brazil, the United King-dom and a large part of our industrial activities in the UnitedStates. This scope represents approximately 60% of theGroup’s workforce and 60% of its revenues.For the first year, these KPI’s give a snapshot, on this initialscope, of Imerys’ performance which the reader can comparewith other industrial players. Reliability of the data andinformation presented in the report was favored over exhaus-tiveness. For consolidation over all and for Imerys’ activi-ties to be meaningful, data for this first phase had to becollected on a scope of reporting structures that has achievedthe highest possible standard of reliability. The KPI’s weredeveloped by groups of in-house experts with an excellentgrasp of the definitions and calculation methodologies usedfor that purpose. The next reports will gradually provide forfuller analysis of trends in Imerys’ environmental, humanresources and social performance.

Everyone’s businessImerys, which was formed over the years through succes-sive acquisitions, makes use of a wide range of industrialprocesses, has bases in 38 countries and serves many different

markets. Diversity is a key feature of the Group, which hasalways opted for decentralized organization. In that context,our success and the ability of all our employees to imple-ment policy effectively depend on explicit functioning rulesand principles such as initiative, training, awareness andsharing best practices in a framework of “ethical” values.These principles are more efficient levers than the sole impo-sition of simplistic procedures. Incentives, the creation ofinternal networks and the fostering of local initiatives arefavored. The rollout of the Group’s Sustainable Development policydoes not depart from these simple rules that have proventheir effectiveness. In this field, our performance and ouracceptance by the communities where we operate dependprimarily on actions taken by industrial sites and operatingdivisions. Official charters and policies are being graduallyand pragmatically developed to sustain best practices over ascope that is constantly growing due to the Group’s acquisi-tions policy. In Sustainable Development as in all other aspects of perfor-mance measurement, there is a corresponding need for repor-ting accurate data as a basis for making informed decisions.This document provides the first figures for that purpose. ●

Continued from page 11 nnn

Diversity is a key-feature of the Group which has

always opted for decentralizedorganization nn

nn

13 n Strategy

2003Mexico - Specialty Minerals

Clean Industry Award for operations of K-T Clays in Mexico.

2003France - Specialty Minerals

Implementation of the first line of production mold recyclingat Imerys Kiln Furniture – around 600 metric tons of plaster per year.

2003France - corporate

Imerys partnership with the musical ensemble “Les Arts Florissants”.

A strategic operatingapproachImerys has been developing a coordi-nated Sustainable Development processsince 2002. Several objectives weredefined from the outset: support theindustry’s mobilization on an inter-national scale, meet the expectations ofthe Group’s partners – local communi-ties, customers, investors, environmentalassociations, insurers, etc. – and makeenvironmental and social performancean essential component of its strategy.

Imerys Sustainable Development processcapitalizes on its operating divisions’expertise and know-how. The divisions,of course, had already a multitude ofoften innovative best practices before ageneral policy was adopted. To makethose initiatives part of an overall process,six action areas (1), each including a prio-rity axis, were defined in 2003. In paral-lel, a Sustainable Development steeringcommittee was created, bringing togetherseveral corporate departments: research& technology, internal and externalcommunications, human resources, envi-ronment and legal. Three members ofImerys’ operating committee are also onthe steering committee.

Three work groupsThe Sustainable Development steeringcommittee set up three work groups tocoordinate reporting on the environ-ment, health & safety and humanresources. The teams’ first task was todefine the most relevant Key PerformanceIndicators (KPI’s) and the method andfrequency for measuring them. Theirwork took into account quantifiable,significant items for each of Imerys’ busi-ness groups, in accordance with legalauthorities’ expectations. It also factoredin the orientations of the trade associa-tions with which Imerys regularly works.In parallel, a survey on best internal practices was undertaken in many areas,

A progressiveprocess

Drawing on its operatingdivisions’ best practices, theImerys Group is committed toa comprehensive SustainableDevelopment process thatincludes the consolidation ofquantitative indicators.


14 n Strategy

2004UK - Pigments for Paper

Launch of the Woodlandproject (restoration of 800 haof native broadleaf forest).

2003UK - Pigments for Paper

Launch of the Blueprint project in Cornwall.

2003South Africa - Refractories &Abrasives

Signing of a Black EconomicEmpowerment agreementby Imerys South Africa.

ENVIRONMENT, HEALTH & SAFETYDefine compliance auditing guidelines foImplement risk-based schedule for audindustrial facilities on a three-year cycCommission third party verification of Increase the % of sites with Environme(based on 2003 reporting scope)Define Group guidelines for quarry remCarry out a specific review program forObtain ISO 14001 certification for all Cover 100,000 tons capacityExpand safety reporting system to incluHUMAN RESOURCESComplete Group Code of Conduct for IDefine the HIV/AIDS action plan for allBuild training and induction modules foReview the Group HR Manual and implprocedures and tools across ImerysINTEGRATING SUSTAINABLE DEVELOPOrganize an internal challenge to encoinitiatives by operating units, with corpCreate a network of Sustainable DeveloDevelop a limited range of country or p

MEDIUM-TERM SUSTAINABLE D

including health & safety policies, quarryremediation, energy consumptioncontrol, local community relations,production waste recycling and research& development. A section on Sustai-nable Development was added to Imerys’website (2) in summer 2003. It includesdescriptions of around thirty initiatives.In the future, this ongoing survey shouldenable common Group-wide standardsto be defined and disseminated, basedon model initiatives.

Support initiativesIt is critical that all Imerys employees understand the issues involved in theSustainable Development project. Thatunderstanding is supported by activeinternal communications and by recur-rent actions. In that context, the layoutof the in-house newsletter Imerys Newsevolved in 2003 with, among otherchanges, the creation of Environment

and Social sections. In addition, theSustainable Development policy waspresented to business group and divi-sional managers and to reporting coor-dinators at a launch meeting chaired byCEO Gérard Buffière on February 3,2004. ●

(1) The six action areas are: environment, health &

safety, human resources & management, community

relations, innovation and corporate governance

(2) www.imerys.com


TARGET COMPLETION DATE

r all industrial facilities 2004iting of all significantle 2005compliance auditing program 2005nt Management Systems to 80%

2006ediation plans 2005 wet tailings storage facilities 2005lay Roof Tiles & Bricks France sites

2008de 100% of all significant industrial sites 2005

merys 2004 units in South Africa 2005r all managers 2005

ement a limited number of common 2005

MENT INTO OPERATING UNITS’ PRIORITIESurage Sustainable Development orate funding for the best initiatives 2004

pment correspondents in every division 2005rocess-specific indicators 2005

EVELOPMENT OBJECTIVES

15 n Strategy

MethodologyAND SCOPE

Reliable dataImerys decided to develop global indi-cators based on definitions and calcu-lation methods that are precisely definedby groups of in-house experts and whichare meaningful when consolidated byall the Group’s activities. The indica-tors are not intended to cover all themain lines in the Global ReportingInitiative, but instead we have chosenindicators that are specifically tailoredto our businesses (see table p. 16). Forexample, the in-house environmentalexperts group judged unanimously thatthe use of a single water consumptionindicator for all the Group’s operationswas impossible, given the diversity ofindustrial processes and the wide vari-ety of hydrogeological and meteoro-logical environments in which Imerysoperates.Work continues on the development ofmore focused indicators for analyzing

some local environmental impacts, forwhich aggregate data over a heteroge-neous scope is insufficient. For the sakeof relevance to Imerys’ activities, some definitions may differ from those in the Global Reporting Initiative (GRI).Energy consumption and CO2 emis-sions are reported according to the GRIEnergy Protocol and WBCSD’s (1)

GHG Protocol (2), respectively. It shouldbe noted that CO2 emissions include

emissions related to the production ofpurchased electrical energy.Partial (i.e. country or process-specific)indicators will be set out in Imerys’ nextSustainable Development reports (see“The next stages” paragraph, p. 16). Theywill cover a limited geographical scopeor a given type of industrial process,for which a relevant indicator for aprecise impact can be defined. As anexample, this report includes an indi-cator of the surface area used by miningactivities in the United Kingdom.

Evolving scopeImerys has begun to extend graduallythe reporting scope of its SustainableDevelopment process. This decision,made in order to ensure the reliabilityof published data, led to the initial selec-tion of four countries in which the scaleof operations enables approximately60% of the Group’s worldwide work-force to be covered through a limitednetwork of correspondents. France,Brazil, the United Kingdom and theUnited States were selected for thispurpose. Specific reporting tools wereused for each group of indicators, which

COUNTRY FRANCE UK USA BRAZIL

Pigments for Paper E / S / R E / S / R E / S / R E / S / RSpecialty Minerals E / S / R E / S / R E / S / R E / S / RBuilding Materials E / S / R No business No business No businessRefractories & Abrasives E / S E / S - -

E: Environmental indicators - S: Health & Safety indicators - R: Human Resources indicators

Ensuring the reliability of data is a key principle. To achieve this, Imerys has adopted Sustainable Development indicators that are relevant to its businesses. Their initial scopenow covers 60% of the Group’s activities.

REPORTING SCOPE BY FAMILY OF INDICATORS


BUSINESS GROUPS

i

16 n Strategy

corresponded to the Group’s differentcorporate departments. The scope foreach family of indicators, according tothe entities covered by the variousreporting tools, is set out in the follow-ing table. For every family of indica-tors, the reporting scope covers at least90% of the workforce of those fourcountries together (see table, “Report-ing scope by family of indicators”, p. 15).For environmental data, only theGroup’s industrial sites are taken intoaccount under the current scope. Tra-ding activities such as the firm Larivièrein France, sales agencies and adminis-trative offices, for which the chosenindicators would be irrelevant, havebeen excluded from the scope of repor-ting. This exclusion is a minor alte-ration to data for energy consumptionand CO2 emissions only. Furthermore,as the related energy consumption andCO2 emission data for subcontractorsoperating on Imerys sites were unavai-lable or could not be recorded with therequired accuracy and reliability, theyare not included. Finally, in the case ofjoint ventures or partial ownership of

companies, all impacts were includedwhenever Imerys has operating controlover the entity in question.

The next stagesIn future years, Imerys will strive toimprove the relevance and scope of thekey indicators used for assessing itsperformance in the field of SustainableDevelopment. This might result inadding indicators more specific to thecountries or industrial processes ofImerys operations. In the meantime,the geographic and business scope ofthe reported KPI’s will be progressivelyextended to encompass the wholeImerys group, subject to the reliabilityof the data requested. Comparative 2003 and 2004 KPI’sfigures for Imerys will be released in2005. The scope of the reported KPI’sshould be extended in the Imerys 2005Sustainable Development report andwill aim to cover most of the Group’soperations worldwide. ●

(1) WBCSD: World Business Council for Sustainable

Development.

(2) GHG Protocol: Greenhouse Gas Protocol Initiative.

Vision & strategy 1.1 / 1.2 - -Profile 2.1 / 2.5 / 2.8 / 2.10 / 2.11 / 2.2 / 2.3 / 2.4 / 2.6 / 2.7 2.14 / 2.16 / 2.9

2.12 / 2.13 / 2.15 / 2.17 / 2.18 / 2.192.20 / 2.21 /2.22

Governance structure 3.1 / 3.2 / 3.7 / 3.14 / 3.3 / 3.4 / 3.5 / 3.6 / 3.8 - 3.9 / 3.10 / 3.11 / & management systems 3.15 / 3.16 / 3.17 / 3.18 / 3.12 / 3.13

3.19 / 3.20

Economic performance EC.1 / EC.2 EC.6 / EC.7 - EC.3 / EC.4 / EC.5 / EC.8 / indicators EC.9 / EC.10Environmental EN.3 / EN.4 / EN.7 / EN.8 / - EN.9 / EN.1 / EN.2 / EN.5 / EN.6performance indicators EN.14 / EN.16 EN.10 / EN.15 EN.11 / EN.12 / EN.13Social performance LA.1 / LA.2 / LA.3 / LA.5 / - - LA.4 / LA.6indicators - Labor LA.7 / LA.8 / LA.9 / LA.10 / practices & decent work LA.11Social performance HR.1 - - HR.2 / HR.3 / HR.4 / HR.5 / indicators - Human rights HR.6 / HR.7Social performance - - - SO.1 / SO.2 / SO.3indicators - Society

GRI

GRI Indicators for whichsome information can befound in this report

GRI Indicators for which data is available in Imerys 2003 annualreport

GRI Indicators not relevant enough for Imerys

Imerys has no consolidateddata collection system /cannot report globally onthese GRI Indicators

CORRESPONDENCE OF IMERYS DATA WITH THE GRI


This first Sustainable Developmentreport does not seek to cover allindicators in the Global ReportingInitiative (GRI). Neither is it, unlessspecified otherwise, intended to meetthe exact definitions in the GRI.Nevertheless, GRI guidelines were usedin the definition of quantifiableindicators and the drafting of someof the information published inthis document. Several elements in GRI indicators are the subject ofquantified 2003 data (in blue) inthe reporting scope or of qualitativeinformation (in green). Reasons for notsubmitting information regardingsome GRI indicators are detailed below.n

EMPLOYMENTNumber of employees

Turnover analysis

CAREER MANAGEMENT AND MOBILITY

Number of transfers between business groups and divisions

DIVERSITYPercentage of women

TRAINING Number of training hours per employee

LABOR MANAGEMENTNumber of working hours lost due to strike

EMPLOYEE SHAREHOLDINGNumber of countries covered by the Group Employee Shareholder Plan

Number of subscribers to the 2003 GroupShareholding Plan

Total number of employee shareholders

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS)

Percentage of certified and not certified sites

COMPLIANCETotal fines for infringement of environmental regulations

MINING SITE RESTORATIONPercentage of open pits subject to a formal site restoration plan approved by a regulatory body

CO2 EMISSIONSTotal CO2 emissions related to energy consumption and processes in ‘000 metric tons/year

Specific CO2 content in each country’s energy mix as kilograms of CO2 per consumed gigajoule

ENERGY USETotal energy consumption according tothe GRI EN3 definition, converted into gigajoules (GJ) with percentage breakdown for the four energy source groups

UK REGIONAL INDICATORLand use

FREQUENCY RATE

SEVERITY RATE

Env

iro

nm

en

t

Hu

ma

nre

sou

rces

17 n List of key performance indicators

Hea

lth

&

Sa

fety

p. 22

p. 23

p. 24

p. 25

p. 26

p. 26

p. 27

p. 30

p. 30

p. 34

p. 35

p. 36

p. 36

p. 38

p. 38

p. 39

p. 40

p. 40

18 n Initiatives within divisions

Imerys Kentucky Tennessee (KT)operations have been recognized bythe regulatory community and also

by environment groups for their excel-lent stewardship relating to the miningindustry.

USA AND MEXICO-

Nesting-boxes

installation with

the scouts on the

Crenshaw site.

KT received national certification for itsWildlife Management Program at theCrenshaw site (USA) in November 2002.KT received this recognition through itsmembership of the “Wildlife HabitatCouncil,” which promotes investmentin biodiversity.In December 2002 KT received an awardof excellence in reclamation. KT has beenchosen for its outstanding work,its extraordinary commitment to theenvironment and its continued efforts

to be a good citizen.The Clean Industry award was wonby KT Clay de Mexico in February 2003from the Environmental Agency of theMexican government. It also receivedan award from the Interstate MiningCompact Commission (April 2003). Thisnational organization monitors the recla-mation performance of the mining indus-try. It consists of state government offi-cials, including the governors of some20 Mexican states. ●

Environmental awards forKentucky Tennessee

BRAZIL-

Employees working at Brazilian claymining company Imerys RCCbenefit from an on-site education

program which has given them a rareopportunity to complete their primaryand secondary studies.

The project, which started in December2003, is being conducted at the Ipixunaclay mine, 120 km south-east of Belem,capital of the northern state of Para. It ispaid for by Imerys RCC and organizedby SESI, a national education body, inassociation with the Brazilian Confede-ration of Industry.Twelve employees, or 40% of the mine’sworkforce, aged between 20 and 35 yearsold are now taking two hours of classeseach day, after work. The subjects includeMaths, Portuguese, History, Geography,Science and English. The students rangefrom those finishing their primary edu-cation to others completing their preli-minary high school studies. The course is divided into two semesterseach year and lasts for two years. Asthe employees at the mine work shifts,the on-site SESI teacher gives classes in

the morning and evening. The classroomis equipped with a video player andstudents are provided with textbooks andwriting materials.Imerys RCC’s Afonso Guerra, who isresponsible for the project, said povertyprevented most of these employees fromcompleting their basic education but theynow have a second chance.“Some of the people taking these classes haveproblems reading and many have done littlemaths. In Brazil many kids drop out afterthe fundamental level because of poverty,”Afonso Guerra said. “It’s going very well,they are all very keen. It’s a rare opportu-nity for them to complete their education,and it’s a good way to progress in thecompany.” ●

Employee education project


Dust monitoring in the China clay district

Imerys, working with the localauthorities and scientific consul-tants, has begun a comprehensivetwo-year program to monitor airquality in the china clay district

of Cornwall, in south-western England,covering the majority of operations andsurrounding areas.This partnership was established in 2002between the local china clay industry and regulators – Restormel BoroughCouncil, Fowey Port Health Authorityand Cornwall County Council, and scien-tific advisors – Advance Environmental(Exeter University), and the CornwallAir Quality Forum (Cornwall College).The program monitors fine particlesknown as PM10. These are tiny particles(less than one 100th of a millimeter)suspended in the atmosphere. Sources ofparticles can include partially burnt fuel,exhaust fumes from cars and trucks, sootor ash from coal burning areas, sea saltand dust blown from quarries.The UK Government, as part of itsNational Air Quality Strategy announcedin 1995, commissioned a range of scien-tific research into air quality. A success-ful bid from the Cornish local authori-ties led to the commissioning of a detaileddust monitoring program to assess parti-cle (PM10) levels. This early research has

significantly advanced knowledge on thepotential impact of mineral quarryingactivities.

Significant improvementsBuilding on the early research undertakenby the Cornwall Air Quality Forum from1995, the China Clay Dust MonitoringForum has a comprehensive base of airquality monitoring information for thearea, which is now being extended withthe assistance of Imerys. The programhas recently demonstrated significantimprovements in monitored airborneparticle levels in the Imerys Treviscoeplant, following the replacement of achina clay drier in Spring 2003. A fullpublic report will be produced when thefull monitoring period is complete, cove-ring all the sites within the St Austell area.

Excellent working relationships“We were very fortunate to have developedexcellent working relationships with Imerys,which has been involved with the CornwallAir Quality Forum since 1995,” said NickHibbett, Head of Environment & Healthfor Restormel Borough Council and Chairof the China Clay Dust MonitoringForum. “It was a natural step to extend this into a partnership to undertake more

locally focused work around the St Austellchina clay districts. We now share all of ourmonitoring information at quarterly mee-tings, where there is robust and challengingdiscussion on the findings. We are now looking to improve the way we make this information available to the public.”“So far we have been able to co-locate moni-toring to check the accuracy of monitoringequipment, ensure the scientific rigor ofmonitoring information, and we have addedto the wider understanding of the balancebetween local and trans-boundary pollutionfrom Europe,” Nick Hibbett said. ●

UK-

Modern

drier system

in Cornwall.

We now share all of our monitoring

information at quarterlymeetings.nn

nn


Guy

Viv

ien

Since January 2003, Imerys has been sponsoring “Les ArtsFlorissants,” one of the world’s most renowned vocal and

instrumental ensembles specializing in baroque music. Imeryshas supported in particular production of two operas by JeanPhilippe Rameau, “Les Boréades” in 2003 and “Les Paladins”in 2004. This sponsorship also provides opportunities for pres-tigious meetings with Imerys’ customers or institutional contactsin exceptional settings such as the Palais Garnier in Paris or theEsplanade in Singapore. Through this support, Imeryscontributes to the existence of an outstanding ambassador ofhumanistic culture. Imerys also gives its employees the oppor-tunity to attend selected performances or dress rehearsals.Initially signed for a two-year term, the partnership has beenextended until 2007. ●

Imerys renews partnership with“LesArtsFlorissants”

©

New worshop for betterdust extraction at Les Ardoisières d’Angers

Improving working conditions andeliminating risks from facilities in bad

repair: that was the dual ambition of thenew natural slates production workshopconstruction project at Les Ardoisièresd’Angers (France). The €1.3 millioninvestment program is being carried outin partnership with local companies. The second phase of the project wascompleted in 2003. The new facilities,

where 32 people work in two shifts on two highly automated production lines, benefit from significant improve-ments in dust removal and air filtering.Dust is now extracted on every work-station, rather than for the workshop asa whole. ●

The Clay Roof Tiles & Bricks France division has set up anenvironmental management system for its Mably (Loire)

and Gironde-sur-Dropt (Gironde) brick plants. The processwas the result of 24 months work and enabled the plants toobtain ISO 14001 certification in 2002 and 2003, respectively.The ISO 14001 certification process required the two sites toaffirmatively establish their ability to assess their environmen-tal impact and control their processes from the goal of constantimprovement in their ecological balance sheet. In particular,actions were taken to optimize energy and waste managementwhile ensuring better protection of soil and sub-soil. ●

Two brick plants obtain

ISO14001 certification

FRANCE-

Production

of Monomur at

Gironde-sur-Dropt

plant (Clay Roof

Tiles & Bricks

France division).

2003PERFORMANCE

REVIEW

r page 22 Environment: Controlling environmental impact r page 30 Health & Safety: Making

the workplace safe for everyone r page 34 Human Resources: Operational empowerment sup-

ported by international professionals r page 42 Innovation: A sustainable framework for innovation

r page 48 Community Relations: Adapting our actions to local situations

22 n Environment

ControllingENVIRONMENTAL IMPACTMost of the industrial activities that form Imerys’ core business have an impact, if even limited,on their environment. In the majority of cases, that impact is inherent in mining activities (quarries)and in facilities for the downstream processing of extracted minerals, whether mineralurgicalseparation operations or heat treatment (fusion or calcination).

Resources useThe nature of mining means that itconsumes surface. In practice, thisconsumption is usually restricted tothe area being “borrowed” for the shor-test possible time then returned afterrestoration or allocation to a different purpose from its original use (see IanDavies interview, p.23, and article on refo-

restation in Brazil, p.29). Imerys intends keeping track of landuse and, as a first step, a regional indicator has been developedfor the UK. Many of the deposits mined by Imerys aroundthe world are suited to on-going site restoration. This conti-nuous restoration is particularly significant for most secondarykaolin and clay deposits, which are characterized by near-

horizontal layers and a high volume of covering material. Inother words, mining can progress horizontally; the coveringmaterial initially stripped is soon reused to fill the space leftby extraction operations. This process makes it possible torestore soil to virtually its initial topographic state, often in avery short time period.Imerys is producing a detailed picture of its energy consumptionacross the reporting scope. A significant use of biomass is madein the Building Materials business group.Some operations withdraw fresh water from the environment.At this stage, Imerys cannot report any consolidated data, due tothe diversity of industrial processes and the wide variety ofhydrogeological and climate environments in which the Groupdivisions operate. Investigations are on-going to develop ameaningful set of indicators.

Sylacauga plant

(Specialty

Minerals business

group - USA).

ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

The Building Materials business groupplans to have all Clay Roof Tilesand Bricks plants, over 100 000t/yrcapacity, certified by 2008. Imerysintends to increase in the futurethe percentage of sites, eitherISO 14001 certified, or with EMSmeeting the main criteria of ISO 14001standard, to 80% by 2006.

(*) Total Environment reporting scope

BY COUNTRY

PERCENTAGE OF SITES WITH EMS

France UK USA Brazil

Percentage, weighted by work-force, of ISO 14001 or EMAS cer-tified sites = 34% *

Percentage, weighted by work-force, of sites with EMS that meet the main cri-teria for the ISO 14001 standardbut are not certified = 24%*

23 n Environment

Emissions and effluentsImerys’ activities have the potential to generate dust or smokeand run-off containing inert mineral particles. Though theGroup continuously evaluates and improves its operations tominimize dust and smoke emissions, because of the numberof sites and the diversity of local contexts, Imerys cannot reportquantitatively on these impacts. Acid drainage – acidificationof process or run-off water by some minerals – is a well-knownand widespread source of pollution in the mining industry.Imerys has only experienced this phenomenon in a single location: the Glomel, France andalusite mine (Refractories &Abrasives business group), where ore contains pyrite, a causeof run-off water acidification. This phenomenon has long beenaddressed by end-of-pipe treatment.

The heathland

of the lowland

regions of the UK .


Restoring hectares of lowland heathland in Cornwall

nn

INTERVIEW IAN DAVIES - PROJECT MANAGER FOR THE CORN-WALL AND CHINA CLAY WOODLAND PROJECT, ENGLISH NATURE

English Nature is a UK Government agency that champions the conservation of wildlife,geology and wild places in England.

What is the heathland project?The heathland project is a post-mining restoration project. It aimsto restore the landscape of the St Austell china clay area. It hassuccessfully restored 750 hectares of lowland heathland on formerchina clay waste tips and is a partnership between English Nature,which manages the project, Imerys, Cornwall County Council andGoonvean (another Cornish China Clay producer).We get significantfinancial support from the Heritage Lottery Fund.

At what stage is the project today?It was begun in 1997 and is now substantially completed – the finalworks will finish in Autumn 2004. However, the process of regene-ration takes about 4-5 years so some of the sites we have beenworking on will not be at their best for a few years yet.To date we have completed 750 hectares and many of the sites areas good as any piece of ‘natural’ heathland.The process of creating a new heath is really quite simple – we prepare a site and make surethe soil chemistry and topography are appropriate then we collect


BY BUSINESS GROUP

SpecialtyMinerals

Pigments for Paper

BuildingMaterials

Refractories& Abrasives

COMPLIANCE

Three environmental non-compliancecases gave rise to fines paid in 2002totaling €79,000 in the UnitedKingdom and the United States.Threenew cases resulted in an amount of€26,800 paid in 2003 in theUnited States and Brazil.

* Total Environment reporting scope

Total fines for infringement of environmental regulations

24 n Environment

native heathland seeds, such as ling, bell heather, bristle bent andgorse, and spread them on the prepared site. Some of the moredeveloped sites have already got beetle species like the green tigerbeetle, butterflies like the Grayling and I was particularly pleasedwhen a Dartford warbler turned up, a rare bird indeed. It’s been afantastic change from a mine site to a restored heathland, and itshows what can be achieved through partnership working.

Why is the regeneration of heathland important?Nearly 60% or 40,000 hectares of England’s heathland has beenlost since 1945 due to things like urbanization and changes in landuse.Amongst the 5,000 or so species of invertebrate found onheathlands many species have been affected by these losses, suchas the silver studded blue butterfly, once common in Cornwalland now all but extinct. So the protection of these areas and the re-creation of new ones is very important to sustain the existingdiversity of plant and animal species. Heathland is also about peopletoo and this rich cultural landscape is of great value to local peopleand visitors alike, for access, recreation and as a source of inspiration.

What are the economic and social parts of the regeneration project?Our aim was to create a living landscape that was environmentally,socially and economically viable – to achieve this we are workingwith a range of partners and in particular we are working on farmdiversification and tourism. Local farmers are already using 250 hectares of the regenerated heathland for grazing of cattlein a similar fashion to the way they have done in this area forcenturies. Soon we expect most of the 750 hectares of re-createdheathland will be grazed by farmers’ cattle – reforging the oncestrong link between the agricultural community and heathlands.We’re also working on developing the site for recreation andtourism – we’ve already put in place 20km of new paths andsoon there will be more through developing partnerships withSustrans (a charity that works on practical projects to encourage

people to walk, cycle and use public transport). For instance the60 hectares heathland site at Caerloggas already receives10,000 visitors per year and the footpaths we have put in placeshow that the site can cope with these sorts of numbers.

Are there other regeneration projects planned for the future?In May 2004 EU Objective One (1) approved £3M funding over fiveyears for the China Clay Woodland project which will restore and re-create 800 hectares of native broadleaf forest.We’ll be plantingaround 1 million native trees, like oak, ash and hazel. It will be thebiggest native broadleaf regeneration project in the UK and togetherthe two projects are the biggest post-mining initiative of its kind inEurope.We intend to make this already world class example of goodpractice into an international exemplar for the mining sector. Imeryswill contribute £500,000 to this project.We have an outstanding relationship with Imerys and as a public-private partnership it is probably unique on the planet.The fruits ofthis relationship are clear to see and there is now a robust process inplace which will see long-term post-mining regeneration continue.

(1) Objective One is one of three programs set up to help reduce differences in

social and economic conditions within the European Union. Objective One is

targeted at areas where prosperity, measured in Gross Domestic Product (GDP)

per head of population, is 75% or less of the European average.

Restoring hectares of lowland heathland in Cornwallnn

Ben Bradshaw (Minister

for Nature Conservation

and Fisheries), Ian Davies

(English Nature), Joan

Vincent (Restormel

Council) and Richard Bown

(Imerys) at St Austell (UK).

©A

PE

X p

ictu

re b

y C

hris

Sav

ille

MINING SITE RESTORATION

PERCENTAGE OF OPEN PITS SUBJECT TO A FORMAL SITE RESTORATIONAPPROVED BY A REGULATORY BODY

n Within the UK, all mineral operationsare regulated by Central Governmentand accordingly subjected to MineralPlanning Permissions. Further legislationwas introduced by the Environment Act1995, which placed a statutory obligation on Mineral Planning Authoritiesto review Mineral Planning Permissions(“Romps” process).The Romps process has commenced and isstill ongoing. It involves mineral operatorssubmitting to the Mineral PlanningAuthorities modern schemes of workingand restoration for all mineral operationsin the UK over an agreed timescale.

These are then determined with newand modern planning conditions, whichthe mineral operators must comply with.As at 31 December, 2003, 23 (30%) ofthe Imerys Minerals Ltd operational pitshad approved restoration plans in place.All other operational pits, as agreedwith the Mineral Planning Authorities,are scheduled to have approved restora-tion schemes in place by the end of 2006.A further schedule, to be agreed withthe Mineral Planning Authorities, willthen be produced for all the remainingnon-operational pits.All pits in the UK irrespective of whether

they have an approved restoration planare subject to progressive restorationand rehabilitation as an integral part ofoperations.

n In France, all quarries operate as“Installations classées” and operatingpermits include a rehabilitation planapproved by the regulatory authority.

n In Brazil mining operations, dependingon their size, may not be requested toprovide a full restoration plan to theregulating authority.This is the case for67% of Imerys pits in this country.

However all Imerys operations havedeveloped comprehensive rehabilitationplans.

n In the United States, where individualState regulations apply, 97% of Imeryspits had a formal local individualrestoration plan approved by a regulatoryagency.

Imerys will issue in 2005 internalguidelines for quarry remediation plans,in order to ensure best practices areconsistently used throughout the Group,beyond compliance with local regulations.

25 n Environment

Many divisions have carried out

actions to reduce theirCO2 emissions nn

nn

Continued from page 23 nnnMore recently, ground-breaking preventive measures were setup (see box on tailings confinement at Glomel mine, p. 28).Direct emissions of greenhouse gases almost exclusively comprisecarbon dioxide from fuel consumption. In some special cases,they may also concern process emissions, such as through thedecomposition of carbonates contained in clays in their naturalstate when firing roof tiles or bricks. Precipitated calcium carbo-nate (PCC), which is obtained by reaction-absorption of carbondioxide by lime, on the contrary, captures CO2. These “negativeemissions”, related to the PCC production process, have notbeen subtracted from CO2 emissions in the reported figures.Many divisions have carried out actions to reduce their CO2

emissions. As an example, in the UK kaolin operations:- Closure of heavy fuel oil dryers and maximization of gas firedproduction;- CHP (Combined Heat and Power) output raised to maxi-mum levels;- Elimination of energy-inefficient products from portfolio.Imerys Minerals Ltd (UK operations) buys 380GWh electri-city per year, of which 88% is certified by the supplier as “greenelectricity”.

WasteProduction by the Group of industrial waste is extremely limited,unlike the generation of mining waste. The latter is made upof stripping material and tailings.Stripping material is usually deposited on a provisional basis,awaiting use in mining site restoration. Significant and increasingamounts of waste or overburden material are sold as secondaryaggregates for construction. Tailings results from the operations that separate the ore assuch from other materials in the deposit. Whenever they cannotbe recovered, these materials are stored or used to fill the spaceleft at the end of a pit’s lifespan. Due to the diversity of wasteand tailings generated, no global reporting data are provided.Imerys’ production processes do not entail massive use ofsubstances that are likely to cause major accidental pollutionof the soil, air or water. Continued on page 26 nnn

CO2 EMISSIONS

TOTAL CO2 EMISSIONS RELATED TO ENERGY CONSUMPTION AND PROCESSESIN THOUSAND METRIC TONS/YEAR (2003 DATA BY COUNTRY)

The emission factors for each energysource are taken from the GHG protocol (WBCSD). CO2 from biomass is included.Process emissions in France come from the decarbonation of clay duringthe firing of roof tiles and bricks.Total CO2 emissions related to Imerys’

industrial activities in the defined four-country scope represent the equivalent of 0.3% of France’s totalemissions in 2002 (554 Mtons,source: joint ministry task force on thegreenhouse effect).In France, Imerys contributes 0.08%of the country’s total emissions of CO2.

FRANCE UK USA BRAZIL TOTAL REPORTINGSCOPE

CO2 from 365 401 684 198 1,648energy use

CO2 from 85 0 0 0 85processes

Total 450 401 684 198 1,733

26 n Environment

A regulated industry and a processbased on best practicesIn every country in which it operates, Imerys is subject to thelocal regulations that apply specifically to its activities. In prac-tice, Imerys is extensively based in Europe, especially Franceand the United Kingdom, and in North America.In the Sustainable Development process it recently initiated,Imerys particularly focuses on environmental aspects. In addi-tion to the Sustainable Development charter that the Groupadopted in February 2004, many actions already reflect thiscommitment, including:- Drafting environmental policies and procedures, currently inthe internal review process, intended to coordinate and harmo-nize the Group’s actions in this field. In particular, the envi-ronmental policy will define Imerys guidelines for mining siterestoration;- ISO 14001 certification, obtained or in the acquisition processfor many of the Group’s sites;- The gradual setup in divisions of environmental audits; - Many decentralized initiatives on environmental impactprevention, site restoration or participation in local operationsfor reintroducing threatened animal or plant species. Theseexamples and often original initiatives are the subject of best

practices that are shared throughout the Group;- Participation within IMA-Europe (Industrial Minerals Asso-ciation), on the initiative of the European mining industry, inthe pilot Sustainable Development report on Imerys’ scope ofactivities in the United Kingdom;- Participation in the Post-Mining-Alliance, a global organi-zation to promote good practice and action in integrated mineclosure planning and post-mining regeneration.In addition to disseminating decentralized initiatives and bestpractices, Imerys intention is to further strengthen its envi-ronmental performance by formalizing a global environmentalpolicy and developing internal standards on key issues like siterestoration. ●

Imerys particularlyfocuses on

environmental aspects nn

Hydro-seeding

nn


CO2 EMISSIONS

SPECIFIC CO2 CONTENT IN EACH COUNTRY’S ENERGY MIX AS KILOGRAMS OF CO2 PER CONSUMED GIGAJOULE (GJ) (2003 DATA)

The mainly nuclear origin of electricity inFrance leads to a specificemission to energyconsumption rate thatis significantly lowerthan for the othercountries in the scope.

France UK USA Brazil Total reportingscope

kg CO2 from energy use / total energy use (GJ)

ENERGY USE

France UK

TOTAL 000GJ: 7,138 5,361

TOTAL ENERGY CONSUMPTION ACCORWITH PERCENTAGE BREAKDOWN FOR

Kerroué tip

(Refractories &

Abrasives business

group - France).

27n Environment

USA Brazil

Total reporting scope

8,393 3,060 23,952

The significant use of biomass in France corresponds to the replacement of natural gas by sawdust wherever it was technically possible in the BuildingMaterials business group’s French plants.In France, total energy consumption includes the gas consumption of two co-generation facilities producing electricity that is put back into the network(87 390 GJ into the public grid in 2003).

■ NATURAL GAS

■ OTHER FOSSIL FUEL

■ BIOMASS

■ ELECTRICITY

DING TO THE GRI EN3 DEFINITION, CONVERTED INTO GIGAJOULES (GJ) THE FOUR ENERGY SOURCE GROUPS (2003 DATA BY COUNTRY)

Imerys RCC - Brazil

28 n Environment

Brazilian
years ago Damrec decided to preventwater acidification by taking actionupstream.To achieve this, the company uses a by-product of andalusite processing.The material’s mineralogical propertiesand particle size distribution make it as watertight as clay. It is used towaterproof the tailings piles,preventing any contact between rainwater and the pyrite. Approximately 1-meter layers of the material aredeposited below, around and on top ofthe piles. As soon as this impermeableenvelope is in place, it is revegetated.This innovative and environmentally-friendly technique has been approvedby public authorities. On the strengthof its success and experience,Damrec has decided in the past yearto remediate older existing piles atthe Glomel site in order to reducetheir potential environmental impactfor future generations. ●
Mine waste:ADDRESSING

THE ACID DRAINAGE PROBLEM UPSTREAM

Damrec, a subsidiaryof the Refractories& Abrasives Imerysbusiness, has operatedthe andalusite depositof Glomel (Brittany -

France) since 1969. The aluminousmineral’s physical and chemicalproperties make it an ideal materialfor manufacturing refractory bricksand concrete for use in blast furnaces,cement works and foundries, etc.A million tons of rocks are extractedfrom open pits to produce 60,000 tons of andalusite every year.The large quantity of residual materialrepresents 94% of mined tonnage.It is stored in flat-top piles or partlyused to plug former pits.The original rock contains approxi-mately 3% pyrite. In the presence of air and water, this ore can acidify run-off water. Acid water is mainly treatedthrough neutralization by adding lime.This is an effective technique.However, for the sake of optimumenvironmental management, several

n

UK REGIONAL INDICATOR

LAND USE

Imerys Minerals Ltd (UK) occupied 4,950 ha (operational land) as

at 31 December, 2003

n 22% fully restored,

n 25% subject to progressive restoration.

Operational land is defined as land at some stage damaged by mining, even if fully restored now.

CASE STUDY 29

project reforestation project

Mahogany, ipê, jatobá and cedartrees up to 20 meters high arenow growing on what was part

of an open cut clay mine, operated byImerys Rio Capim Caulim (Imerys RCC)near Belém, the capital of the northernBrazilian state of Pará.Imerys RCC director of operations MiltonCostantin, said native animals have alsoreturned to the first 40 hectares of refo-rested land including; monkeys, arma-dillos, parrots and other bird species,anteaters, cotias (small wild pigs), pythonsand also various species of venomous

reptiles such as the brown and yellowcolored jararaca, which grows up to1 meter long.

The mine is 160 kilometers south-eastof Belem on the plains adjoining theCapim river, which flows north intoGuamá river and then into the Amazon.The total area of the Imerys RCC site is10,000 hectares with 10 hectare rectan-gular strips of forest mined each year toobtain the rare bright white colored clayknown as kaolin which is used to coatpaper and give it a glossy finish. A totalof 98% of 850,000 tons of kaolinprocessed each year is exported to NorthAmerica, Japan and Europe.Imerys RCC recognizes mining in theAmazon region is a sensitive issue, andunlike some other mining companies in Brazil, Imerys RCC doesn’t wait untilall the land has been mined before star-ting to regrow the forest. This processbegins after each 10 hectare-strip is mined.Since the mine began in 1995 some90 hectares of forest, which had alreadybeen partially logged before the minebegan, have been cleared. Almost half ofthis area, 40 hectares, has been reforestedwith some trees now 20 meters high. The mine has its own tree nurserywhich contains 50 different species and13,000 seedlings with people from thenearby village of Bacuri using their extensive knowledge of the rainforest tohelp collect and look after the youngtrees. The species include mahogany,ipê (a local favorite for its white andyellow flowers), cedar, and the giant jatobáand samaúma trees which can grow upto 50 meters tall. “The first stage of the reforestation is backfilling, where we put back the earthremoved by the mining process, which isleft to settle for a period of two years,”Costantin said. “We then add the rich black

top soil – also saved during the miningprocess –, and begin the replanting of thenative trees.”Reforestation begins early in the year andcontinues until May when the rainyseason ends. However watering theseedlings is also a crucial part of theprocess. Despite the high rainfall of thistropical zone there is also a long dryseason from June until December whenthe seedlings are regularly watered andfertilized by tractor and boom spray.Outside the area of the mine site the forest has been greatly degraded due tofarmers who clear the land to grow cropssuch as corn and illegal logging. ●

30 n Health & Safety

Making the workplace

SAFE FOR EVERYONE

It is a core value of Imerys to protect the health & safetyof its employees and require a safe working environmentat all Imerys locations. The mining and minerals proces-sing industry involves daily operational work that requiresemployees to be trained properly to use chemicals and

explosives, to operate many types of mobile equipment suchas trucks, forklifts and conveyor belts and to work at heights.Due to this type of work, Imerys strives to have effective andstrong health & safety programs that create safe working prac-tices and conditions. On the reporting scope (see p. 15), Imerys has a Group annualaverage lost-time accident frequency rate of 10.3, with a Groupaccident severity rate of 0.38. The mining and minerals industry is strongly regulated onboth a national and local level in most of Imerys’ locations.

79% of Imerys employees are in North America, European Unioncountries and Switzerland and are subject to strict regulatoryrequirements regarding health & safety practices. Imerys health & safety programs are currently managed at theoperational level within the regional policies defined by the divi-sions and overseen by a Group Corporate Health & Safety Manager.These policies include internal and external health & safety audits,detection and systematic analysis of accidents, formal proceduresfor the induction and training of new and temporary personnel.

Imerys wins national awards for health & safety practicesCompliance with local regulations on worker safety and theobservance of exposure thresholds for regulated emissions arethe minimum standard required across the Group. However,

RESULTS & COMMENTS

2003 FREQUENCY RATE (within H&S reporting scope) = 10.3

Employee Frequency Rate = (# Lost-time accidents x1,000,000) / Work Hours

* average French industry: 25.4 Source CNAMTS - Year 2002 - www.inrs.fr

France UK Brazil USA

2003 SEVERITY RATE

Employee Severity Rate = (# Lost days x 1,000) / Work Hours

* average French industry: 1.17Source CNAMTS - Year 2002 www.inrs.fr


many operations within the Group have implemented health& safety programs to go beyond this minimum standard and Imerys has won national safety awards in the US, UK,Brazil and Thailand for extended periods without a lost-timeaccident. Substantial efforts have been made by Imerys overthe past two years to move towards its goal of zero accidents,including capital investments in its plants, managementprograms, safety audits and safety training.In France, the Clay Roof Tiles and Bricks division has esta-blished an annual inter-site Safety Challenge. This competi-tion leads to a ranking based on criteria including accidentfrequency and severity. It also requires a qualitative appraisalof the actions carried out in training, prevention and audits.The Safety Challenge is just one of many components of the

Wearing personal

protective

equipment (PPE)

is essential.


Reducing accidentrate with focus on safety culture

nn

INTERVIEW MARC BOWERS -GROUP HEALTH & SAFETY MANAGER

What are the objectives of the health & safety program in the US?Our goal is to develop an integrated safety culture with each employeeengaged in the safety of himself and those around him.This shouldensure continuous improvement of our performance in health & safety.Obviously, our ultimate targets are zero accidents and elimination of workplace-related health risks to our employees.

What are the steps Imerys has taken in the US to develop a program?In late 2002, we benchmarked several successful safety programs andproposed an appropriate program to executive management. In 2003,we began implementation by developing and issuing a Health & Safetyprocedure manual applicable to all US employees in the Pigments forPaper and Performance Minerals Divisions. In 2004, we began internalsafety audits of our manufacturing sites in North America. Later thisyear, we will begin using a customized computer-based safety trainingprogram for all employees. Our plan for 2005 is to expand this programoutside North America.

What is a good safety culture?The components of a good safety culture are clearly communicatedsafety practices and procedures that lead to safe practices in theworkplace, consistently updated training applicable to our industry and ownership of safety by all employees. It’s about the human aspectsof safety rather than the engineering or mechanical aspects.You canattempt to engineer all the hazards out of the work place, but manytimes safety comes down to individual acts and choices.The idea is to give employees the training and the safety skills they need to performtheir jobs safely.

How successful has the program been so far?We are already noticing a change in the safety culture at our plants:employees are paying more attention to safety. For example, in thewearing of personal protective equipment such as hard hats and safetyglasses. It is now becoming second nature as a behavior to use thisprotection. Our 2003 results are improved with the number of lost timeaccidents decreasing 16% and the number of accidents reportable tothe mine safety administration falling 40%.We’ll be measuring thesuccess of the program over the coming years through our regular safetyaudits and monitoring of the monthly key performance indicators.

(within H&S reporting scope) = 0.38

France UK Brazil USA


Safety policy in the division, where the accident frequency ratehas decreased from 16.9 in 2001 to 3.4 in 2003 in the rooftiles plants. While in Portugal, the International Clay RoofTiles and Bricks division has implemented a health & safetyinitiative which requires every employee to attend a safety mee-ting each month with a shift leader and includes surprise safetyinspections. This initiative has reduced lost-time accidents peryear from 59 in end of 2001 to zero at the end of June 2004.

Group Reporting Tool to consolidateGroup H&S indicators Health & safety performance varies across the Group and thedifferences cannot be explained solely by the industrial processesused or the particular country of operation. To understandthese differences better and continuously improve its health &safety practices, the Group has started to standardize the reportingof health & safety statistics. The safety performance reportingsystem now covers more than 70% of Imerys employees. Imeryswill continue to expand this reporting system across the Group. The monthly reporting provides information on anumber of key statistics such as number and type of accidents.Consolidation of these statistics has been challenging due tothe number of different national laws, administrative procedures


and definitions in the 38 countries in which Imerys operates.Imerys’ development of a uniform reporting system will providemeaningful information to monitor and continuously improveits health & safety performance.In 2004, an initiative was launched to review Imerys health &safety programs globally to ensure continuous improvement.Asia is the first area of focus with the adoption of a safety charterand the establishment of a region-wide Health & SafetyManagement System (HSMS) which ensures consistency ofapplication, implementation and compliance. This is beingfollowed by safety audits and the selection of safety delegatesand committees for each site in the Group’s Asia Pacific opera-tions. The next stage, which begun in September 2004, willinvolve safety training for delegates and later a second series ofsafety audits. This initiative will proceed to other areas of Imerysover time. ●

National

recognition for

health & safety

record at Trebal

plant (Pigments

for Paper business

group - UK).

The last lost-time accident was in 1969. This amazing 35-year safety record has been achieved by Imerys’ Daltonplant, in the southern US state of Georgia. The plant,which processes and bags calcium carbonate producedin the nearby White Stone underground mine, employseight people on three eight-hour shifts and does not havea salaried manager on site. ●

USA 35 years without a lost-time accident at Dalton plant

n

CASE STUDY 33

A preventive policy in ClayRoof Tiles & Bricks divisionsCut the accidentfrequency rateThe frequency rate shows the relationbetween the number of lost-time acci-dents and the number of hours worked.Reducing this ratio statistically meansimproving safety. The safety policyimplemented in 2000, first in Francethen in Portugal and Spain, aims to cutsites frequency rates. It is based on clearobjectives set by management, a commit-ment from senior managers, knowledgeand application of safety standards andtraining in health & safety rules. Results:from 2001 to 2003, the frequency ratein Imerys roof tiles plants dropped from16.9 to 3.4. In Portugal, the rate was cutfrom 59 to 0 between the end of Decem-ber 2000 and the end of June 2004.

Take on-site action Workplace organization and people’sbehavior cause 96% of workplace acci-dents. A successful prevention processlargely depends on action in the work-shop. Site safety visits have been orga-nized since 2000, creating dialoguebetween managers and operators on best safety practices. The good perfor-mance is based on close involvement byboth general and site management. Eachinternal auditor, including the operationsmanager and production line heads,conducts 10 safety inspections a year.

Communicate on safetyUnder the responsibility of the sitemanager, safety is facilitated by safetycorrespondents on every site. Safety infor-mation is on the agenda in several regu-lar meetings. Safety issues are discussed

at the beginning of the monthly opera-ting meeting. A monthly safety meetingis held on every site. Finally, every shiftleader can put across key messages inworkshop mini-meetings lasting around10 minutes. Health & safety are thefocus of communication on every levelin the company. This includes theproduction of a manual describing theprocedures that apply to all sites. Repor-ting is drawn up and circulated everymonth.

Create motivationTo encourage all personnel to grasp safetystandards and to help set up a monito-ring tool, Imerys Clay Roof Tiles & Bricks divisions created the inter-siteSafety Challenge. The competition’sresults–an integral part of the safetyprocess–are used to monitor sites’ monthlyperformance. The challenge achieves a dual objective: it fosters emulation on health & safety issues while providingfor regular tracking of results. ●

Example of the setup of a safety policy: Imerys roof tileplants in the Building Materials business group.

Safety mini-meeting

on the production line

at Campos (Building

Materials business

group - Portugal).

Febr.

Apr.Ju

neAug.

Oct.

Dec.

Febr.

Apr.Ju

neAug.

Oct.

Dec.

Febr.

Apr.Ju

neAug.

Oct.

Dec.

FREQUENCY RATE:IMERYS ROOF TILES PLANTS

34 n Human resources

Operational empowerment

SUPPORTED BY INTERNATIONAL PROFESSIONALS

The people of Imerys are responsible for our successand they are our most important asset. HumanResources is an integral part of supporting themanagement of our people and serves severaldifferent roles. We strive to provide quality and

timely expertise and service that help each division and its managersto meet their strategic business targets. We also design programsand processes to support, develop and retain our employees. In addition, Human Resources assists in developing an envi-ronment with safe and healthy working conditions, rewardingand challenging careers with opportunities for personal andprofessional growth and an international culture that embracesdiversity, operational empowerment and ethical behavior.Imerys is a decentralized company with four distinct businessgroups. This decentralization is the cornerstone of our manage-ment philosophy and through this structure we empower ouremployees at every level to lead Imerys soundly and responsiblyin all areas. Our managers have autonomy to act proactively and address issues regarding any aspects of business, safety, envi-ronment or human resources needs quickly. Imerys believes this operational empowerment is key to its competitiveness

EMPLOYMENT

8,576 EMPLOYEES (within HR reporting scope)

HEADCOUNT:

■ FRANCE 3,409

■ UK 2,322

■ USA 1,982

■ BRAZIL 863

HEADCOUNT:

■ SPECIALTY MINERALS 3,271

■ PIGMENTS FOR PAPER 2,194

■ BUILDING MATERIALS 2,730

■ CORPORATE & SHARED SERVICES 381

BY COUNTRY BY BUSINESS GROUP


as well as the development of our Sustainable Developmentphilosophy. It allows our employees to address issues on a locallevel quickly, which is important to the communities in whichwe work.With a decentralized structure, Imerys has recognized the need forstrong functional expertise in the areas of human resources, legal,geology, finance, audit, research & technology, environment, andhealth & safety. With globalization and increasing regulation in allareas, this expertise advises and supports the divisions to not onlycomply with constantly changing laws and regulations proactivelybut also to develop more strategic and global philosophies in theseimportant areas that support Imerys’ evolving Sustainable Deve-lopment program. Each of these functional areas builds interna-tional networks within the operations to communicate on issuesthat might affect all of Imerys and to support each other across ourglobal businesses. In order to develop consistency, strengthen ournetworks and identify areas for improvement, Imerys organized annual conferences and seminars for many of these professionals in2003 and 2004 and also strategic business meetings where the division managers and professionals share issues affecting the divisions and the Imerys Group.

Human Resources OrganizationThe Manual issued in October 2001, states the basic princi-ples that support Imerys’ philosophy in all aspects of humanresources: values, safe working conditions, organization andperformance management, employee development, employeesourcing, labor relations, compensation and benefits, customerand other external relationships, communications and repor-ting. For all of these areas, Imerys demands exceptionally highstandards of performance that are professional, proactive, safety-oriented, ethical, respectful and that encourage diversity andopen-mindedness. As part of Imerys’ commitment to conti-nuous improvement, a review of the Group HR Manual and


Imerys people are our most important asset nn

nn

100

80

60

40

20

0

100

80

60

40

20

0

Brazil UK USA France SpecialtyMinerals

Pigmentsfor Paper

Corporate & shared services

Building Materials

BY COUNTRY BY BUSINESS GROUP

18.8% TURNOVER (within HR reporting scope)


the implementation of a limited number of common proce-dures and tools across Imerys will be a priority for the HumanResources organization in 2005.Consistent with decentralization, the operational HumanResources professionals are responsible for creating effectivepolicies, programs and procedures for each division that arecompliant with local laws and recognize the cultural and ope-rational differences that exist in Imerys’ diverse operations.These policies co-exist and must embrace the basic principles


in the Group Human Resources Manual.Human Resources at Imerys is structured with most resourcesat the operational level directly supporting the operations.These professionals are designated to a division and supportthe operations on a daily basis to provide advice and guidance.This group of Human Resource professionals also allows Imerysto leverage on the country expertise regarding the employmentand labor laws of each country in which we operate.

In addition, Imerys has strengthened its professional expertisein compensation and benefits over the past three years. Imerysinvested in this area of expertise because it will allow us to morestrategically monitor and create programs that are beneficialto both Imerys’ business goals and its goals of employee deve-lopment and management. More specifically, this function is already at work on creating an improved internal mobility program for career developmentinternationally, creating procedures to make more consistent decisions on compensation philosophies, monitoring any expo-sure or compliance issues on the technical issues of pensions, benefits, stock options and other regulated areas. Compensationand Benefits will also work with the operations to improve Imerys’ use of information systems in human resources. Despitestrengthening this expertise, Imerys remains consistent with itsphilosophy of decentralization and has not imposed a singularcompensation and benefits structure or incentive program acrossthe board. Imerys recognizes that part of its effectiveness and re-tention of talent is based on its flexibility to recognize differences in all aspects of human resources. The consistent element acrossall compensation programs for managers, however, is a strong linkto performance based on defined criteria such as operating income, cash flow generation or specific measurable projects forimprovement. Imerys believes profoundly in rewarding perfor-mance through measurable targets.

Additionally, the company has continuously worked to improveits training and career development function. In 2004, Imerysdesignated two of its human resource professionals to developa limited number of management and development programs

Imerys believes profoundly in rewarding

performance throughmeasurable targets nn

nn

311 TRANSFERS BETWEEN BUSINESS GROUPS AND DIVISIONS(within HR reporting scope)

CAREER MANAGEMENT AND MOBILITY

FRANCE UK USA BRAZIL

Number of transfers between 18 141 60 92business groups and divisions

DIVERSITY

80

60

40

20

0

France USAUK Brazil

PERCENTAGE OF WOMEN

BY COUNTRY


and systems to improve our knowledge about our key perfor-mers and managers, and to create development programs toensure we have future leaders for Imerys.With this said, Imerys already has a strong commitment tothe principles of training and internal development. Each yearthere is a formal career development program at Imerys, theresults of which are discussed at the Operating Committee.Another aspect of training and development is the ImerysGraduates program for recent hires that will hopefully developa strong network for new employees and create future leadersin the company. The program, now in its third year, has trained 45 young graduates from South Africa, Europe, the United

States, Asia and Brazil. It includes three international train-ing sessions over an 18-month period, run by Scotland’s RobertGordon University. Senior executive leaders also speak to the graduate attendees at each session about operations andmanagement expectations at Imerys. This culturally diversetraining fosters an international environment at Imerys and improves the essential teamwork between the Group’sdifferent divisions and functions. In addition to this overallinitiative, each division is empowered to provide training anddevelopment to its employees consistent with its business unitor division needs.


PERCENTAGE OF WOMEN AMONG OVERALLEMPLOYEE = 12%(within HR reporting scope)

PERCENTAGE OF WOMEN AMONG SALARIEDEMPLOYEE = 31.2% (within HR reporting scope)

80

60

40

20

0Specialty Minerals

Pigments for Paper

Corporate & shared services

Building Materials

BY BUSINESS GROUP

Angelika Priese,

Ph.D, Technical Advisor

for Graphite and

Carbon Black Products,

Timcal, China (Specialty

Minerals business group).

n

CORPORATE

Imerys Graduates Program

“The program provided me with training and expertise in areas which I knew little about, like business strategy and economic modeling,and that has helped me progress and change positions in the company.It was a good combination of know-how and networking. I now have a network of people in different areas around the world and with e-mail, the world is so much closer.We keep in touch on a personal basis and exchange information on technical questions, country information and personal development questions.” ●


Imerys sees career development and internal promotion as akey factor to successful management and retention of its people.Imerys advocates internal promotion. This is the first optionconsidered for vacancies. Most management opportunities areposted on either a local or regional level and some are listed onthe Group’s Intranet site. Internal opportunities arise withinImerys geographically, cross-functionally, developmentally orthrough a combination of these changes. In 2003, 79% ofmanagement position openings at Imerys were filled throughpromotion within the company.

Labor and restructuringImerys abides by the basic principles defined by the Interna-tional Labor Organization in its declaration on “Fundamental


19 TRAINING HOURS PER EMPLOYEE (within HR reporting scope)

TRAINING

FRANCE UK USA BRAZIL

Number of training12 22 14 56hours per employee

LABOR MANAGEMENT

Throughout 2003, Imerys lost

10,540working hours due to strikes.

(within HR reporting scope)

BUILDING MATERIALS

Training Program for Sales Managers/

Sales people Imerys Toiture and Imerys Structuresubsidiaries, market leaders in France of clay tiles and bricks, were mergedtogether in 2003 to create Imerys TC.To strengthen this new organization,the senior management decided tolaunch a training program for the entiresales force. The program involvedtraining 140 salespeople over a two-year period. The training objectives setwere closely tied to business objec-tives. The training allowed the salesteam to interact with each other, sharecommon experiences and create anetwork in which to optimize perfor-mance and increase efficiencies.As stated by Christian Schenck,VP andGeneral Manager for Building Materials,“Human resources are a key factor in oursuccess: by developing and training oursales force and employees, we can consoli-date our market leadership positions.” ●

n


Principles and Rights at Work” and the 1999 Convention onChild Labor. Imerys’ philosophy is to have constructive dialoguewith union representatives in accordance with national agree-ments, negotiated agreements and applicable legislation. Throughits managers and Human Resources, Imerys strives to nurturegood working relationships with its employees and employeerepresentatives through honest and open dialogue. For exam-ple, the Group European Works Council, established in 2001,represents 8,000 employees in 11 countries and meets once ayear. Imerys’ senior executives attend this meeting and haveopen dialogue with the representatives on important topics tothe employees as well as Imerys. In addition to Imerys’ parti-cipation in formal forums, Imerys’ local management has regu-lar contact with its employees to discuss issues and maintain a good working relationship on a daily operational level.


An honest and open dialogue with

its employees nn

nn

The Imerys Group Employee

Shareholder Plan covers

15 countrieswhich includes France, UK, USA, Brazil.

100%of our reporting scope is covered, regardless

of the employee category.

EMPLOYEE SHAREHOLDING

nn


Imerys Partnership with Angers Work Center

for the Mentally Handicapped

In 1996, Building Materials’ proactiveparticipation in the community of Les Ardoisières d’Angers (Angers - France),where it has its slate business, resultedin a mutually successful workingrelationship between Angers and the local work center for the mentallyhandicapped. At an informal meeting in 1996, the Center’s manager informedan Imerys representative that he waslooking for local companies that wouldbe willing to offer work to people with a slight mental disability. Imerysresponded by forming a partnershipbetween the Work Center and Angers.Imerys provides easy-to-use industrialequipment, several tons of scraps daily,and training to the center’s supervisorystaff. In return, the Work Centerproduces and sells back to Imerys 220 metric tons of high quality slatesevery year. ●

n

739 SUBSCRIBERS TO THE 2003 GROUPSHAREHOLDER PLAN(within HR reporting scope)

EMPLOYEE SHAREHOLDING

TOTAL NUMBER PERCENTAGE OF OF EMPLOYEE TOTAL NUMBER SHAREHOLDERS OF EMPLOYEES

France 1,262 37%

United Kingdom 450 19.4%

United States 607 30.6%

Brazil 256 29.7%

2,575 EMPLOYEE SHAREHOLDERS AS OF DECEMBER 31, 2003(within HR reporting scope)

TOTAL NUMBER PERCENTAGE OF OF SUBSCRIBERS TOTAL NUMBER

OF EMPLOYEES

France 283 8.3%

United Kingdom 120 5.2%

United States 137 6.9%

Brazil 199 23.1%


Under some circumstances, Imerys must address situationsto improve efficiency and productivity and to accomplish theoverall strategic goals of the company. In today’s environmentwith global competitive pressure and increasing regulations,Imerys must be proactive to maintain its performance and posi-tion in the industry. Unfortunately, these necessary exercises leadto the restructuring of operations in many cases involves job cuts.These are difficult situations and decisions, and Imerys seeks tohandle each situation candidly and respectfully for all involved.

Diversity at Imerys Imerys is fully committed to diversity in the workplace and offersequal employment opportunities throughout its operations. TheImerys Human Resources Manual clearly states this as a basicpolicy of Imerys and we strive to implement programs and proce-dures that will ensure this is an area of continuous improvementat Imerys. Although Imerys continues to make progress throughits commitment, there is still work to be done in this importantendeavor and Imerys continues to reach out to minority groups,women and disabled employees and candidates.

HR Key Performance IndicatorsThis year, Imerys dedicated a core group of its internationalHR professionals to develop Key Performance Indicators forSustainable Development. The group identified many indica-tors including basic elements regarding headcount, diversityand training. The reporting for 2003 covered four key coun-tries: France, United Kingdom, United States of America, andBrazil, and three business groups, Specialty Minerals, Pigmentsfor Paper and Building Materials. This is our first report andwe will improve the indicators to assist in more transparentcommunication of our vision and values on human resourcesand to use Sustainable Development to improve our perfor-mance overall. The process of developing the report and indi-cators assisted Imerys in realizing its strengths and weaknessesand will provide one of the avenues for continuous improve-ment in human resources at Imerys. ●

RESTRUCTURING
Last year, Brazil’s sharpeconomic downturn required Imerysdo Brazil, (South America PerformanceMinerals Division), to restructure toimprove performance and prepare forincreased competition. As part of therestructuring, the company divestedthe Miraserra talc operation, shutdown Suzano’s PCC Plant and madeadjustments in the Arcos, EDK and SaoPaulo headquarters. These actionsreduced the work force by 26%. Imerysprovided support for the employeesduring this difficult restructuring witha package of social benefits such as anextension of the health plan, severancecompensation and outplacementin addition to the conditions requiredby Brazilian labor legislation. ●

Building MaterialsImerys TC

Specialty MineralsImerys do Brazil

In May 2003, Imerys Clay Roof tiles andbrick France division consolidated itsproduction sites for chimney blocksfrom three locations to two locationsresulting in the closure of the Sainte-Agathe plant. These changes were madeto meet future competitive challengesand to position the division for long-term success. This restructuring wasaccomplished through open dialogueand discussions between affectedemployees and management.All employees at the closed site wereoffered the option of placements atthree other sites within the divisionthat were geographically located nearSainte-Agathe. Most employees choseto relocate and were provided with acomprehensive relocation and trainingpackage to facilitate the move. ●

n

n

Production line

at St Germer

(Clay Roof Tiles

& Bricks France

division).

42 n Innovation

A sustainable framework

FOR INNOVATIONImerys provides its customers with tailor made solutions that reduce their production costs and improve the performance of their products. The Group’s research and technology activities are organized to achieve that objective while adding indisputable “green” value.

- The calcined kaolin used to produce plas-tic films for agriculture and horticultureimprove heat retention. Every year inWestern Europe, these activities consumearound 300,000 tons of polyethylene film. When added to film, calcined kaolin significantly cuts heat loss throughits ability to absorb remote infrared light. In some cases, it even does away with the need to build glass greenhouses.

- Kaolin is used to reduce the environmentalimpact of motor vehicles. Very pure kaolinis used to make some catalytic convertersubstrates. The inclusion of ultra-finecalcined kaolin in the outer layers of “greentires” reduces rolling resistance.

- Platy kaolin makes it possible to obtainultra-light papers that reduce the weightof magazines and catalogues. Deliveringoutstanding performance in terms of

optics, gloss and printing quality in their coating applications,these kaolin can also reduce the amount of material needed,whether as pulp or filler. This results in energy savings throughshorter drying times, as well as lower transport and postage costsfor magazines and catalogues.

- Imerys Structure’s Monomur Gelis brick is used to build wallsfor healthy housing. Its qualities protect human health by

High-performanceproductsImerys’ Research and Technology supportsthe Group’s Sustainable Developmentprocess by designing products with envi-ronmental applications, additives that saveenergy or replace pollutants and finishedproducts with high “green” value-added.Here are some examples:

- The kaolinitic clay marketed under theProclays brand was specifically developedfor landfill waterproofing applications. Itis particularly easy to use: the clay just hasto be spread, mixed in with the originalsoil, and then compacted to make thetreated area watertight. Proclays-basedcompositions create barriers that can stop and control water infiltration andprovide chemical resistance to leachates.This environmentally-friendly innova-tion, produced by Imerys’ Tiles Minerals division, keeps permeability below the 10-9 m/s threshold set by French legislation.

- The synthetic graphites produced by Timcal guarantee totalimpurity content of less than 0.1%. In particular, this avoidsthe need for mercury and cadmium in alkaline battery manu-facturing (see box: “Green value-added from synthetic graphite”page 46).

43 n Innovation

preventing damp and mold without the use of pollutants or aller-gens. The brick also has outstanding insulation qualities. A 30centimeter-thick Monomur wall delivers excellent thermal iner-tia. It acts as air conditioning in summer, lessens thermal shockin winter and reduces the need for heating in spring and autumn.

- The Photovoltaic roof tile combines clean power generation,attractive design, simple and economical fitting, guaranteedyield and financial assistance. This Imerys Toiture product,awarded a Golden Pyramid for Innovation at Batimat 2003, theFrench construction trade fair, produces solar energy withoutspoiling the roof ’s appearance by adding an additional layer ofpanels. ADEME (the French national agency for the environ-ment and energy resources) and the European Commission incharge of renewable energy development support this initiativethrough extensive subsidies and tax credits for individuals whouse these tiles in France.

Imerys’ product innovations come under a Sustainable Deve-lopment rationale. The Group is just as rigorous as regards eco-logical impact, as shown by the process launched to measure the environmental effects of its products at every stage in theirlife cycle (see “Life Cycle Analysis: a Thorough Process”).

A robust structure Imerys has an extensive array of R&D facilities. 250 scientistsand technicians work in laboratories and technical centers aroundthe world. The Group’s research and technology structure is bothcoordinated and decentralized.

Par Moor laboratory

(Cornwall - UK).


Launching life cycle analysis:a thorough process

nn

INTERVIEW PHILIPPE OSSET - SENIOR MANAGERPRICEWATERHOUSECOOPERS-ECOBILAN

In 1969, the first life cycle analyses were used to compare the environmental impactof glass and plastic bottles for Coca-Cola.Today, Imerys uses the method to take stock,gather and process data from several pilot sites.

What do life cycle analyses involve?Philippe Osset: the LCI/LCA method (1) is used to analyze aproduct’s environmental impact at every stage in its life cycle.Standardization of this process began in the late 90’s.The ISO 14040 - 14043 series of standards describes the workingmethod for life cycle analyses.

What are the key features of life cycle analyses? The process’s methodological thoroughness is a guarantee ofcredibility and repeatability. It makes it possible to go beyondmedia awareness of an environmental problem by demonstratinga product’s ecological efficiency, including at the end of its lifespan.It is also factored into the purchasing criteria for public tenders.

In what fields does Imerys carry out life cycle analyses?The Imerys Group is aware of the importance of life cycleanalyses and of the scale of the approach, especially with regards todata collection. It has launched pilot studies on two Europeancarbonate plants that produce pigments for papers and on buildingmaterials sites. Imerys will decide on the next steps in the processon the basis of the feedback from these studies, bearing in mindthat the work done in pigments for papers is a major opportunityto extend the approach to other products.

(1) LCI/LCA: Life Cycle Inventory/Life Cycle Assessment.

1997 ISO 14040 Objective and scope of study1998 ISO 14041 Inventory calculation and analysis2000 ISO 14042 Impact assessment2000 ISO 14043 Interpretation of results

LIFE CYCLE ANALYSES:THE KEY STAGES IN STANDARDIZATION

44 n Innovation

RESEARCH & DEVELOPMENT

KEY FIGURES

250engineers and

technicians

3 main R&Dcenters inPar Moor

(United Kingdom),Sandersville

(United States)and Bodio

(Switzerland)

14 laboratoriesand technical

centersworldwide

Over1,200brand names

The Group’s innovation resources are organized around threemain centers: Par Moor in Cornwall (United Kingdom), Sandersville in Georgia (United States) and Bodio (Switzerland).These sites all have state-of-the-art analysis and conversion equip-ment. A fourth center, dedicated to Refractories & Abrasivesactivities, is being built in Villach (Austria).

Regional laboratories are dedicated to specific markets. They engineer solutions to customer’s particular needs, enabling themto increase their innovation and product development potentialin Pigments for Paper, Refractories & Abrasives, Building Mate-rials and Specialty Minerals. These laboratories, assigned toImerys’ different business groups and divisions, roll out specificproduct and process development programs for every marketserved.

The Group’s laboratories are supported by a central Technology& Mineral Resources team, set up in 2000. The team acts as aninnovation catalyst by fostering the sharing of knowledge betweenbusiness units via skill networks.

The central technology team has been enhanced by the creationof the Development and Technology department. In charge ofcoordinating, benchmarking and developing conversion processesfor the minerals used on the Group’s various industrial sites, thisnew unit is also responsible for defining and setting up environ-mental and technical indicators on Sustainable Development issues.

Imerys further improved its technical potential in 2003 by crea-ting a new product development group. The Performance Mine-rals Growth Initiative, located in Par Moor laboratory, Cornwall(United Kingdom), looks into new opportunities for the SpecialtyMinerals business group. The role of this team of researchers isto work on new product developments or new technologies. Severalof these topics have an environmental component. ●


Approximately

900 patentsor patent

applications

Using kaolinTO MAKE GREENER TIRES?

“Green” or environmentally-friendlytire for cars and trucks which

reduces rolling resistance and hencevehicle fuel consumption are beingcontinually developed by the tiresindustry. Existing “green” tires were firstproduced in the mid-1990’s and partiallyreplaced carbon black with silica in therubber tread to substantially reduce thetire’s rolling resistance on the road andhence reduce fuel consumption.Unfortunately, it has also slightly reducedabrasive resistance, meaning the tireshave to be replaced slightly sooner thanstandard tires.Green tires are now well established inthe European market and in 2001comprised around 80% of the tires usedby car manufacturers on new vehiclesand approximately 20% of replacementtires bought by car owners.Scientists at Imerys Specialty Minerals

are working in the laboratory on furtherreductions in the rolling resistance ofpassenger tire tread by replacing between25% and 40% of the precipitated silica witha type of calcined clay (known as EcoLink HD).But reducing fuel consumption is not theonly potential benefit, there are additionalproduction savings for passenger tiremanufacturers. Using calcined clay allows,for example, reductions in the amountrequired of the agent which bonds the silicato the rubber and a reduction in energymixing costs.Evaluation of EcoLink HD by major tirecompanies is ongoing with passenger tiretrials near to completion and laboratorytests of truck tread compounds at an advan-ced stage. Imerys has also commissionedindependent studies by consultants at the Tun Abdul Razak Research Center, basedin the UK, with both truck and passengertires currently being road tested. ●

Producing plastic

films.

n

45 n Innovation

Imerys is working with motor vehiclemanufacturers to reduce air pollutionby developing new kaolin-based pro-

ducts that are used in the manufactureof more efficient emission control deviceson motor vehicles.The US Environment Protection Autho-rity estimates that automobile emissionscontribute approximately 49% of the nitrogen dioxide, 37% of the VOC’s(volatile organic compounds), and 27%of particle matter. The U.S, Europe andJapan have pending regulations that willreduce permissible hydrocarbons, carbonmonoxide, and nitrogen oxide emissionsto levels previously thought technicallyunattainable. These regulations will bephased in over the next decade and willrequire significant technological advancesto be able to comply with the new levels.Imerys’ US kaolin operations offer a familyof kaolin-based products, which are usedin a large proportion of current automo-bile catalytic converters, and will make asignificant contribution to reaching thesenew levels of improved air quality. Theseproducts are blended with other mineralsto produce a honeycomb-shaped “cordie-rite” substrate that can serve as a base on

with other improvements in automotiveengine efficiency and electronic controlsystems.Diesel vehicles are a major target of newregulations globally because of their highparticle emissions. To meet these new regu-lations, manufacturers are using DieselOxidation Catalysts, Diesel Particle Filtersand other emission control devices to designemission systems to meet the regulations.Imerys’ kaolin is currently being used tomake cordierite-based Diesel OxidationCatalysts for use in large diesel engines,Diesel Particle Filters for use in schoolbuses, and many other products for thediesel market. ●

Reducing pollutionFROM CARS AND TRUCKS

WITH KAOLIN PRODUCTSwhich precious metals such as rhodium orplatinum can be coated. The pollutantsfrom the car engine are destroyed with thehelp of these precious metals, which actas catalysts to produce harmless gases like nitrogen, oxygen and carbon dioxide.The current honeycomb substrates usedin gasoline engine catalytic converters were developed over 25 years ago inresponse to the United States Clean AirAct of 1970. Imerys worked with the early developers of these products and has been the leading supplier worldwideof kaolin products to the manufacturers of the honeycomb substrates since the mid-1970’s.By working closely with these manufac-turers, Imerys has contributed to deve-loping new kaolin-based products thatenable them to make more efficient catalyticconverters. This includes the developmentof Thin Wall and Ultra Thin Wall catalyticconverters. Thin Wall and Ultra Thin Wall substrates offer two major benefits:improved emissions conversion perfor-mance and reduction in size and weightof the catalytic converter package. Thesemake the new levels of performancetechnologically feasible, when combined

46 n Innovation

Since the early 1960’s, there have been a number of different processtechnologies introduced to make

production of kaolin more efficient, toextend kaolin reserves and to improvekaolin product quality. This has occurredin a context of expansion with kaolinproduction from the world’s largest kaolinproducer in Georgia (United States)increasing from 2.87 million tons in 1968to 8.35 million tons in 1998. The paperindustry is the major user of kaolin pro-ducts as filling and coating pigments,which add brightness and gloss to paper. Since the 1970’s, the focus has been onimproving the brightness of kaolin to usemore of the ore exposed during miningand to make brighter kaolin products.These processes for improving kaolinbrightness included magnetic separation,flotation and selective flocculation, whichremoved the brown-colored, iron-stained,mineral anatase, and red, brown andblack-colored iron minerals. Ozonebleaching technology was also introducedin the 1970’s to remove organic matterfrom kaolin. This allowed some pre-viously unusable grey kaolin to be used.Combined, these processes extended the life of reserves for Imerys’ Georgia

operations significantly. Across the Southeastern US kaolin Industry the totalvolume of kaolin resources was increasedby around tenfold between the 1960’sand the 1980’s. Improvements are still being made.Improved selective flocculation techniquesintroduced in the 1990’s have made kaolin processing still more efficient andfurther extended the estimated life of the Imerys Georgia kaolin reserves. Thelatest developments in kaolin processingtechnology have been in the area of parti-cle shape selection and modification. This has included the use of kaolin withnaturally platy particle shape to improvethe ability of coatings to cover imper-fections in paper and give better printingappearance. These new products use mineral resourcesthat were not used previously and there-fore are also extending reserve life. ●

Making more efficient use

OF KAOLIN RESERVES
n Timcal, part of the Imerys Group, produces
high-quality synthetic graphite.Thishistorically was introduced to avoid the needfor mercury and cadmium in alkaline batteries.In the early 1990’s, the European Union andthe United States passed regulationsprohibiting the use of these heavy metals in batteries. China followed suit in 2001.Also in the early 90’s,Timcal was the firstcompany to offer battery manufacturers asolution: very high-quality synthetic graphite,with a guaranteed total impurity content of less than 0.1%. By doing away with mercuryand cadmium, this innovation added value in terms of Sustainable Development to the first alkaline battery models.Synthetic graphite has also been a source of “green” innovation in brake pads andlubricants, where it replaced asbestos and oils,respectively, in some applications.In 1996,Timcal added a treatment to itssynthetic graphite manufacturing process in order to reduce the environmental impactof its own activity.The gas and dust generatedduring production are recovered, chemicallytreated by lime injection and, finally, filteredbefore release into the air with emissions that are well below regulatory thresholds,particularly for SO2.Mobile energy is an industrial sector whereresearch and development are a constantnecessity. In the future perhaps, fuel cells willmake it possible to replace the more pollutingengines used today. Graphite – with new types and cutting-edge dispersions – will playa crucial role in that sector too. ●

Green value-added

FROM SYNTHETIC GRAPHITE

CASE STUDY 47

Anew patented industrial process,developed by Imerys, will poten-tially enable the recovery of valu-

able minerals from recycled paper wasteand prevent hundreds of thousands oftons of sludge from going to landfill.Paper recycling is growing faster thanpaper making in Western Europe. As aresult more and more mineral filler(increasing from 3 to 16% over the lastfive years) is concentrated in de-inkedpulp (DIP) making its usage in paperproduction difficult. Some mills haveinstituted a policy of washing extramineral out of their DIP and the extramineral then becomes a waste product. The Western European paper industryproduces in the region of 1.2 million dry

paper making, has faced major technicalbarriers. Mechanical separation methodshave proved inefficient. Further, destroy-ing the organics by incineration leads toharmful chemical reactions betweenkaolin and calcium carbonate whichresults in hard, cement-like compoundsunsuitable for making paper.The MAGIC process, developed at theImerys Minerals Paper/Pigment ResearchCenter in the UK, is designed to removethe organic content of de-inking wastesludge without causing the harmful chemical reactions which damage theminerals. It has been evaluated at pilotscale and in short-term plant trials.In the MAGIC process, the incinerationtemperature is kept substantially, in macro and micro scale, below the pointwhere calcium carbonate completelydecomposes to calcium oxide and carbondioxide. This is done by using a specificmachine, known as a flash calciner, whereheat is removed from the process soquickly that no uncontrolled burningcan take place. The remainder of thecombustible material, namely carbonblack, does not support free-burningand can be removed in a standard rotarycalciner. The resulting mineral cake canthen be removed and beneficiated usingstandard mineral processing equipment.The minerals in the waste sludge convertpredominantly into metakaolin andcalcium carbonate. These are useful inpaper production because they enhancethe optical properties of paper. Thismaterial can be used also in plastics tomake them tougher or to enhance theirelectrical insulation properties and in cartires to make them more durable. This process has potential in the paperindustry because it enables production ofa product which can be used in the hostmill or sold outside as a useful opacifier.Added value could come from selling excessproduct to the rubber/cement/polymerindustry as functional filler. ●

tons of mineral-containing de-inkingwaste annually. This sludge contains about0.75 million tons of minerals, primarilykaolin and calcium carbonate.Current disposal routes include: landfill(on-site and municipal); biological appli-cations, such as soil enrichment; or lastlythe production of construction materials(typically brick and cement). The latteris the most significant disposal route.The cost of disposal of such minerals inWestern Europe is estimated at about€28 million. A potential new EU direc-tive on waste incineration, where waste-based fly ash is classified as toxic waste,may well increase the costs further.The recovery of the valuable minerals inDIP, which can potentially be reused in

The MAGIC processFLOW CHART OF IMERYS MINERALS LTD.’S PATENTED MAGIC PROCESS

48 n Community relations

What is the resulting operatingapproach?Rather than carrying out major flagship programs, the rule atImerys is to adapt to the diverse situations and specific concernsof every community.In that context, the Group’s decentralized management prin-ciples apply effectively. Because Imerys plant managers are inclose relation with the communities in which they work, theyare in the best position to address local issues, choose suitablepartners and build contacts with the relevant authorities orassociations, in an action framework that is adapted to localsituations or concerns.Given their diversity and heterogeneous nature, these actions,carried out in partnership with widely varied communities, areunsuited to standardized Group-level reporting. They are obvi-ously coordinated, validated and evaluated by the divisions towhich the operating units belong.

What is the context for Imerys’miningactivities?Most of Imerys’ pits are located in areas where mining has longbeen a key part of the local economic scene. Natural slate hasbeen mined in Trélazé (France) for 400 years; kaolin has beenmined for over 200 years in Cornwall (England) and 40 yearsin Georgia (United States); and the andalusite site in Brittany(France) has been in operation for 35 years. Most sites arelocated in industrialized countries and in zones that alreadyhave transport infrastructure that provides easy access to therelevant markets. Imerys’ ore deposits are usually vast in relation to their markets and geological prospecting mostly concerns extensions of active deposits, with the aim of proces-sing the ore in existing facilities. For these reasons, mine ope-nings and closures–operations that can have a heavy impacton the communities concerned–are very limited in number.The mining or production units in Imerys’ divisions are medium-sized. Only three sites employ more than 500 people: St Austell in Cornwall (England), Sandersville in Georgia andSylacauga in Alabama (United States). The Group’s units world-wide are closely integrated with their surrounding communi-ties, all the more so when Imerys is a major local employer.

Adapting our acTO LOCAL SITUATIONS


Examples of actions by Imerys In St Austell, Cornwall (England), efforts around mineralmining and processing sites are focused chiefly on keeping dustreleases to a minimum and optimizing transport in order toreduce impact for the neighboring population.Through Imerys’ participation in the Heathland Project (seep. 23), 750 hectares are being replanted on former waste tips.The Woodland Project, in which Imerys is also involved, willlead to the creation of 800 hectares of broad-leaved tree forests.Restored areas are open to the public whenever possible.In Brazil, the emphasis is on social initiatives with underprivi-leged populations, including the development of public healthand literacy projects and the involvement of local communitiesin conservation and biodiversity actions for restoring quarries. In South Africa, Imerys anticipated regulations on BlackEconomic Empowerment, which are intended to increase the

Mindful of

local community

concerns.

Continued on page50 nnn

tions
Signing a BlackEconomicEmpowermentagreement
nn

INTERVIEW JEAN-PIERRE JOUIN,ANDALUSITE BUSINESS UNIT MANAGER

Black Economic Empowerment (BEE) is the biggest issue for Imerys in South Africa for several years.

What is Black Economic Empowerment?In 2002, the South African government passed a bill intended to correct past inequalities and promote national development and social peace.The law is designed to foster greater participation in the economy by historically disadvantaged communities.In particular, mining law provides for a 15% HDSA (1) stake in companies within five years and 26% within ten years.

Why did you sign an agreement before the law made it compulsory?It’s true that we anticipated the change and signed the agreementbefore the Mineral and Petroleum Resources Development Act wentthrough, on May 1, 2004. For years, we had been thinking about howto better involve local stakeholders in our operations and enhanceour social action. So in July 2003 we signed an agreement withNghala that is binding on all our current activities in the country.

What does the agreement stipulate?Under the partnership, Nghala has acquired a 26% stake in the Group South African activities. But the agreement above all concerns the development of the community initiatives taken in recent years:- Social assistance for the mines’ neighboring communities,- Working as a priority with suppliers committed to BEE,- Contributing to employees’ education, particularly as regards literacy,- Training employees in Imerys’ professions,- Increasing the number of HDSA managers,- Taking part in the fight against AIDS.

(1) Historically Disadvantaged South Africans


Krugerspost

andalusite

production plant

(Refractories &

Abrasives business

group).

participation of Historically Disadvantaged South Africans(HDSA) in the economy.These decentralized actions correspond closely to Imerys’management philosophy. The Group still decided in 2004 tosign its first overall commitment to the fight against AIDS byjoining the Global Business Coalition (GBC). Created in 1997,GBC (www.businessfightsaids.org) is a network of 144 multi-nationals with the fight against AIDS as a common goal. Inconcrete terms, GBC, which Imerys joined on April 27, 2004,provides technical assistance for its members and facilitates the creation of local partnerships between businesses, non-governmental organizations and governments. The ImerysGroup employs approximately 600 people in South Africa,where prevalence of the disease is 20.1% (1). Imerys South Africais working on the definition and implementation of an actionplan, with particular focus on prevention. ●

(1) Source: Unicef, End 2001, Adult prevalence rate (15-49 years)


ChineseEDUCATION FUND

Nearly 1,000 Chinese school students,whose families could not afford to payfor their education, can now continuetheir studies thanks to an educationfund established by Imerys in thesouthern counties of Nanling andQingyang where Imerys operatescalcium carbonate plants.The education bureau of each provincereceived payment of $US24,000 from

Imerys earlier this year. The funds willbe distributed among 700 primaryschool students, 272 high schoolstudents and 14 university students,to cover education costs for one year.An estimated 3% of school studentsin these two poor rural provincesneed financial assistance to completetheir studies. According to theQingyang Education Bureau, one inevery hundred school students willbenefit from the fund.Imerys Pigments (Wuhu) Company HRand administration manager, WendaZou, is responsible for the educationfund. He said the students were chosenby a selection process which involvedthe local schools, village councils andthe provincial education bureau.Wenda Zou knows well the difficulties of financing a child’s education.Since he grew up and was a teacher inthe county of Nanling before joiningImerys. “It was difficult for my parents,who were farmers, to pay for books andthe tuition fees, even though it wasn’tvery much money. This fund will helpmany poor families and, in particular,those bright students who wouldotherwise not have had the chance to go to university.” ●

n

CASE STUDY 51

Broader involvement with local communities in CornwallA

new 2.5-kilometer walking trailwhich rises to a height of 300 me-ters and gives spectacular views of

both the Atlantic and Channel coasts inCornwall, England, has been one of theresults of a new network of communityliaison groups established by Imerys.Imerys Community and Public Relationsmanager Ivor Bowditch explained that upto 30 kilometers of paths have now beenopened after requests from the local commu-nity for greater access to the 68 square kilometer of company controlled land.Thousands of local Cornwall residents nowhave the chance to walk through the previ-ously inaccessible area of heathland andsee at first-hand the many wild species ofplants and animals including gorse, heather,wild orchids, 50 species of birds, as well asrabbits, foxes, badgers, stoats, weasels andeven wild otters.“The first otters were seen 10 years ago buttheir numbers are increasing, with regularsightings along several of the walking pathswhich pass adjacent to the Fal, St Austell and Par rivers. It’s a good indicator of theimprovement in the water quality of theserivers,” Ivor Bowditch said. In June the company announced a newpath, to be completed by March of nextyear, through the clay districts including

the villages of Carthew and Bugle and thenationally renowned Eden biodiversityproject. The trail, which will be multi-purpose allowing cycling, horse-riding andproviding disabled access, shows not onlythe nature of the area but also the indus-trial history, starting at the China Claymuseum which charts the 258 years of theindustry’s operations in the area. However the walkways are only a part ofa much broader involvement with the localcommunities. A 40-year strategic plan,known as Blueprint, which was launchedin 2003 by Imerys, sets out a number ofeconomic, environmental and social goals.These include: ensuring the future ofmining in the region through sustainedcapital investments, maintaining regularcommunication with the liaison groups,minimizing disturbances such as noise,vibrations and dust, optimizing transpor-tation to reduce the number of trucks on the roads, and rehabilitating quarriesby fostering projects conducive to theregion’s biodiversity and economic deve-lopment.The company’s environmentalcommitments have already begun withestablishment of the China Clay DustForum (see p. 19), which includes Imerys,regulators and scientific advisors. The

Facilities on restored

sites for equestrian,

canoeing and walking

activities.

forum has already begun a 2-year air qualitymonitoring program while a separateeffluent team is monitoring water qualityfor all the company’s operations.Five community relations groups have been formed and a sixth will be establishedby the end of the year, which will covereach of the company’s operating centers(Eastern District, Karslake, Blackpool,Drinnick, Fal District, Par). The groupsinclude local residents, activists, Imerysrepresentatives and local councilors fromeach of the three levels of local government– parish, district and county. The objectiveis to foster mutual understanding of therequirements and expectations of Imerysand the local residents in respect ofcurrent and future operations, therebyto build and sustain a solid mu-tually supportive close working relationship between twocommunities. ●

52 n Corporate governance

Implementing best p

major acquisitions or divestitures, issueof equity securities and approves theGroup’s strategic orientations;- Controls the implementation of Groupstrategy and the Group management bythe Managing Board.

Definition of its membersindependenceTo recognize its members’ independence,the Supervisory Board decided that theirbeing in one or more of the followingsituations might affect their freedom ofjudgment:- an employee, corporate officer or direc-tor of a subsidiary of Imerys, of its control-ling shareholders or major shareholders(i.e. with a share of over 10% of its capi-tal) or having been one in the past 5 years;- a corporate officer or director of a companyin which Imerys, one of its employees oranother corporate officer of Imerys (nowor in the past 5 years) is a shareholder;- a significant customer, supplier or bankerof Imerys or its Group;- a close relation of a corporate officer ofImerys;- an auditor of Imerys in the past 5 years;- a director of Imerys for over 12 years.

Three specialized committeesThe Supervisory Board formed threespecialized Committees, the powers andcomposition of which it assigns among themembers of the Supervisory Board; theygive opinions or, as the case may be, makerecommendations in their respective fields.

The Strategic CommitteeIt is composed of Messrs. Aimery Langlois-Meurinne (Chairman of the Committee),Paul Desmarais, Jr., Jacques Drijard (Vice-Chairman), Jocelyn Lefebvre, Edouard deRothschild, Thierry de Rudder, GrégoireOlivier and Eric Le Moine de Serigny. This Committee ensures that the stra-tegy implemented by the Managing Board is consistent with the orientationsset forth by the Supervisory Board and,as the case may be, makes recommenda-tions to the Supervisory Board on theGroup budget drawn up by the Mana-ging Board and on all the major Groupprojects. It met 11 times in 2003 withan average participation rate of 70%.

The Appointments and Compensation CommitteeIt is composed of Messrs. AimeryLanglois-Meurinne (Chairman of theCommittee), Grégoire Olivier andEdouard de Rothschild. This Committee makes recommendationsto the Supervisory Board on proposals forappointments to the Supervisory Boardand Managing Board and their respectivesuccession plan, the independant status ofeach of its members, compensation of themembers of the Managing Board as wellas the general compensation policy for theGroup’s senior managers and the adoption

In 1998, the Company adopted the form of a Limited Liability Companywith a Managing Board and a Supervisory Board. This organization gives the Group a structure reflecting its internal functioning and is consistentwith changes in French Corporate Governance policy and practice.

Role of the SupervisoryBoard:- Appoints and, as the case may be, revokesthe members of the Managing Board andappoints its Chairman;- Authorizes significant transactions whereamount are greater than the threshold setby the the Supervisory Board, such as

Imerys Supervisory Board

Name Nationality Independent member status

Aimery Langlois-Meurinne French NoPaul Desmarais Jr. Canadian NoJacques Drijard French NoPatrick Kron French NoJocelyn Lefebvre Franco-

Canadian NoPierre Lellouche French YesÉric Le Moyne de Serigny French YesYves-René Nanot French YesGrégoire Olivier French YesRobert Peugeot French YesÉdouard de Rothschild French YesThierry de Rudder Franco-Belgian NoGilles Samyn Franco-Belgian NoMichel Sindzingre French No

MEMBERS (as of October 31, 2004)

53 n Corporate governance

st practices
of stock option plans proposed by theManaging Board. It met twice in 2003with a participation rate of 100%.
The Audit CommitteeIt is composed of Messrs. Yves-RenéNanot (Chairman of the Committee),Jocelyn Lefebvre and Robert Peugeot.It examines annual and semi-annualcorporate and consolidated accounts,monitors the relevance and consistencyof accounting methods and verifies thatthey are reliable as a result of internal

procedures for the gathering and verifi-cation of information. It examines and,as necessary, makes recommendations onthe identification, measure and supervi-sion by the Managing Board of the mainrisks to which the Group is exposed. Italso makes sure of the monitoring of anyrecommendation made by the internaland external auditors. The Committeeselects and recommends candidates forthe position of the Imerys Group’s audi-tors and ensures they are independent.It met five times in 2003 with an aver-age participation rate of 94%.

- The Managing Board is entrusted with the most extensive powers to act on behalf of the Company under anycircumstances. It submits to the Supervi-sory Board’s prior approval the Group’sstrategic orientations, the taking of aninterest in, acquisition or sale of any asset, the allocation of tasks between themembers of the Managing Board and anyissue of securities.

- The Operating Committee, created in2003, assists the Managing Board in steering the management of the Group.It is mainly in charge of implementingthe Group’s strategy, monitoring opera-ting activities, defining Group-wide poli-cies and actions, and fostering the sha-ring and dissemination of best practicesin all areas between the four businessgroups. ●

Imerys Managing Board and Operating Committee

Members Position

Gérard Buffière Chief Executive OfficerFriedrich Nitsche Executive Vice-President, Refractories & AbrasivesJérôme Pecresse Executive Vice-President, Finance & StrategyThierry Salmona Executive Vice-President, Specialty Minerals

Number of meetings in 2003: 15

MANAGING BOARD (as of October 31, 2004)

Members Position

Gérard Buffière Chief Executive OfficerRichard Bown Vice-President,

Research & TechnologyCatherine Vice-President,H. LaFiandra Human ResourcesDenis Musson Group General CounselFriedrich Nitsche Executive Vice-President,

Refractories & AbrasivesJérôme Pecresse Executive Vice-President,

Finance & StrategyRich Ryan Vice-President,

Pigments for PaperThierry Salmona Executive Vice-President,

Specialty MineralsChristian Schenck Vice-President,

Building Materials

Number of meetings in 2003: 10

OPERATING COMMITTEE (as of October 31, 2004)

SupervisoryBoard ethicalcharter

INTERVIEW AIMERY LANGLOIS-MEURINNE,CHAIRMAN OF THE SUPERVISORY BOARD

For many years, we have worked to ensure thatImerys adopts the best Corporate Governancepractices and improves them as they evolve.

In 2002, ahead of the latest joint recommendations by AFEPand MEDEF, published in October 2003, the SupervisoryBoard decided to create its own internal charter, which isperiodically reviewed and updated. This charter, which allshareholders can consult, specifies the principles that theSupervisory Board defined in terms of its functioning andcomposition and the composition of its three committees,as well as a code of conduct, the individual rights andduties of Board members and their compensation method.”

nn

54 n Glossary

n ANDALUSITEA natural alumino-silicate mineral, trans-forming into mullite when fired. Usuallycontains around 60% alumina.
n BIOMASSOrganic, non-fossil material of biologicalorigin constituting an exploitable energyresource n BLACK ECONOMICEMPOWERMENT (BEE)South African government policy in favor ofHDSA (Historically Disadvantaged SouthAfrican) to correct past inequalities andpromote national development and socialpeace. n BLUEPRINTAn Imerys’ sustainable development projectin Cornwall (UK) to promote the clayindustry and to foster its integration withthe local community. n CALCINED KAOLINKaolin subjected to very high temperatures(700-1,200°C) to modify its physical cha-racteristics. Calcination improves particles’whiteness, makes them less hydrophilic andreduces electrical conductivity. n CORDIERITESynthetic product made from alumina sili-cate and magnesium. Cordierite is extremelyheat-resistant–up to 1,200°C–and is used tomake kiln furniture and technical ceramics,among other things. n DIPDe-inked pulp n EMSEnvironmental Management System n EUROPEAN WORKS COUNCIL(EWC)Created in 2001, it aims to developconstructive communication and contrac-tual policies with its employees and theirrepresentatives in accordance with localrules. Eleven countries are represented by a 13-member employee delegation. It meetsin a plenary session one a year. n FILLERS AND COATINGMineral fillers are added to paper web to fill up the empty spaces. White pigmentsimprove the paper’s appearance and prin-tability. Coating involves applying a thinfilm containing a mixture of kaolin, GCC,PCC and selected chemical additives andbinders to paper to make it glossier, brighterand more opaque.
n FLOTATIONFlotation is achieved by the degree ofaffinity of the minerals for rising airbubbles within an agitated pulp. It is possible to make valuable minerals air-avid and worthless minerals water-avid. This results in separation by transfer of the valuable minerals to the air-bubbles which form the froth floating at the surface of the pulp.
n GHGGreenhouse Gas n GRIGlobal Reporting Initiative n GROUND CALCIUM CARBONATE(GCC)GCC is obtained by grinding and gradingmarble to obtain particles with a precisesize and shape. The mineral is originallyderived from sediments of shellfish andmarine fauna, exposed to various degreesof heat and pressure over time. n HDSAHistorically Disadvantaged South Africans n HSMSHealth and Safety Management System n IMAIndustrial Mineral Association n KAOLINAlso known as china clay, kaolin is a naturalwhite platy mineral derived from thegeological alteration of granite or similarrock. Kaolin is refined or ground to give a range of products with controlled particlesize and platiness. n KILN FURNITUREShaped parts made from refractorymaterials (cordierite, mullite or siliconcarbide) that must provide good resistanceto mechanical and heat shock and beas light as possible to save energy duringfiring.
n MONOMURNew concept of a high-inertia clay wall, insulating across its full width. This clay brickdoes not need any complementary insulation.Its advantages are comfort, healthiness and durability, giving a homogenous, non-polluting wall that is unaffected by outsidefactors and has no cold spots or dampness.
n PHOTOVOLTAIC TILEA solar tile that replaces five clay roof tiles without changing the roof structure or requi-ring any additional fastenings or waterproof-ing. Photovoltaic tiles are fitted by roofers inthe same way as for a conventional roof. n PM10Tiny particles (less than one hundredth of a millimeter) suspended in the atmosphere n PRECIPITATED CALCIUM CARBONATE (PCC)PCC is produced artificially from naturallimestone. This is burnt to form lime andthen re-precipitated with carbon dioxide.The process can be controlled to give different particle sizes and shapes. n PROCLAYSThe brand name of a kaolinitic clay specifi-cally developed for landfill waterproofingapplications. n REFRACTORIESMaterials that resist high temperatures.Depending on the application, they can also bear heavy weights or resist corrosion. n SELECTIVE FLOCCULATIONProcess by which certain minerals in adispersion are made to come together and agglomerate. The aggregates are thenseparated from the dispersion. n VOCVolatile Organic Compounds n WBCSDWorld Business Council for SustainableDevelopment
LEGAL DISCLAIMERImerys is continuously improving its reporting systems and endeavors to provide useful and accurate information in this Sustainable Development Report. While every effort has been madeto ensure the reliability of the information contained herein, Imerys does not warrant the accuracyor completeness of this Report against clerical errors, mistakes in calculation, or inadvertentmisrepresentations or omissions. Anyone seeking to rely on information in this report or seeking to draw detailed conclusions from, or make important decisions based on the data contained hereinshould contact the Company for assistance.

To give your opinion on this report

Yours comments on the contents of our SD report would begreatly appreciated.A feedback Form is available on our websiteat www.imerys.com in the Sustainable Development section.

IMERYS CONTACTS

• Pierre DaniellouVice President of Minerals Development and Sustainable Development coordinator:[email protected]

• Valérie LancrenonInternal and Sustainable Development communications manager:[email protected]

• Isabelle BiarnèsFinancial & Corporate communications manager:isabelle.biarnes@ imerys.com

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n2003 sustainable development report

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