Inco - 2004 Social Responsibility Report - Protecting the Environment

Located in the Coral Sea about 1,500 kilometres east of Brisbane, Australia, New Caledonia is a naturalist's paradise, boasting the world's largest lagoon and the second largest barrier reef in the world. It is also the site of one of the richest tropical forests in the world. Inco is committed to protecting and preserving this unique and beautiful environment.

Water samples from around the mine site are collected and measured.

Environmental monitoring plans and mitigation measures have been identified and will be employed throughout the life of the Goro project. Above, water samples from around the mine site are collected and measured.

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In 2004, we finalized the inventory of the project impacted zones which has allowed us to develop the Biodiversity Protection Plan. It covers the protection of the most valuable area around the mine and the transfer of specimens from rare or endangered species taken from the area where vegetation is going to be cleared. We have also developed a plan for protection against introduction of non-indigenous species.

TOWARDS MINIMAL IMPACT

Indeed, the Goro project is being designed to have minimal impact on the environment. Our processing plant will employ a new Inco-developed and patented hydrometallurgical Pressure Acid Leach (PAL) technology. This technology has a number of advantages over traditional smelting methods. For instance, it has high recovery levels. Most of the waste products from the process are produced not as air emissions, but rather as solids, which can be more easily contained. We have also opted to implement a more expensive but environmentally preferable land tailings disposal system rather than utilize marine tailings disposal.

PRESERVING THE ECOSYSTEM

For the past 10 years, prominent independent scientific groups have been conducting studies of the biophysical and socio-economic environments around the Goro project, building an understanding of the surrounding natural environment and the potential environmental effects of the project. Using this information and these recommendations, Goro Nickel has developed, in collaboration with the relevant authorities, measures for mitigating environmental effects and proposed monitoring plans, each adapted for particular elements of the ecosystem.

We have built an on-site experimental nursery to ensure that all revegetation of mining and construction areas is compatible with indigenous species.

As part of our commitment to preserving New Caledonia's unique ecosystem, we have built an on-site experimental nursery to ensure that all revegetation of mining and construction areas is compatible with indigenous species.

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Proposed mitigation measures, such as the protection of water systems, revegetation and the preservation of the rare or sensitive ecosystems that have been identified, will be employed throughout the life of the project.

In New Caledonia, Inco supported an independent environmental assessment conducted by INERIS, France's leading expert organization on industrial risk assessment and prevention and environmental protection. We accepted all of the INERIS recommendations.

The Operating Permit (ICPE) has been granted by the provincial authorities for the project based on these various studies.

Under the auspices of the Government of the Southern Province, an environmental monitoring committee has been established which includes representatives of relevant agencies and neighbouring communities and involves Goro Nickel.