Other Management Processes

New project development

Investment

Our five-stage phased approval process - Identification, Selection, Definition, Execution and Operation - is designed to ensure that investments, mergers, acquisitions and divestments meet certain requirements before progressing to the next phase of development. HSEC requirements are defined for each stage to reflect the Sustainable Development Policy and HSEC Standards and Procedures. For example, HSEC risk assessment, baseline studies, impact assessment and closure planning are required in the early stages of project development, while control measures and management systems must be embedded prior to operation.

BHP Billiton's policy Standards and Procedures apply to all phases of the life cycle of its operations. As part of our internal project approvals process, significant new developments are subject to Independent Peer Reviews (IPRs) as they progress from identification through to detailed definition studies. The IPR teams are made up of specialists from within BHP Billiton but outside the business promoting the project. The role of the IPR team is to review the validity of project assumptions and check that performance requirements embodied in the Group's Standards and Procedures have been incorporated in the design and management plans.

Project planning

Significant projects are governed by the requirements outlined in the Project Quality, Execution and HSEC Management Procedure. This includes a formal process for documenting stakeholder requirements, which is a mandated part of the development of each Project Quality Management Plan. Each new project must also have a Project HSEC Management Plan to ensure that all material HSEC considerations are addressed.

The Plan must document how the following requirements will be met:

  • the requirements of the BHP Billiton Charter, Code of Business Conduct, Sustainable Development Policy, HSEC Standards and Procedures
  • the requirements of the project Environmental and Social Impact Assessment.

The Plan must also include:

  • legal and risk identification, assessment and mitigation requirements relating to HSEC
  • the approach to managing HSEC, including safety, during each project phase
  • the project HSEC organisation structure
  • the health, safety and environment strategy for contractors, including how contractors' HSE management plans will be integrated into the overall Plan (at project definition stage)
  • a Regulatory Approvals Plan (at project definition stage).

Note: For more about working with the local communities, customary rights and land, please see the Social Responsibility - Community Section.

Olympic Dam

The Draft Environmental Impact Statement (EIS) for the proposed expansion of the Olympic Dam copper and uranium mine was released for public review and comment during the year. Development of the Draft EIS incorporated extensive consultation over a period of several years. By close of the public review process in the order of 4,000 submissions had been received. BHP Billiton will be responding to all issues raised through a supplementary submission that will be publicly released once completed.

Key issues raised through the consultation process to date include:

  • water use, predominantly in respect of primary water supply from the sea water desalination plant, in particular brine discharge
  • greenhouse gas emissions associated with the expanded operation
  • the location of the proposed landing facility and impacts relating to traffic on roads
  • mining activity, particularly in relation to tailings and operational impacts such as dust and exposure to radiation
  • content and operation of the Schedule to the Roxby Downs (Indenture Ratification) Act 1982 (as amended).

Security, emergency response and business continuity

In line with our HSEC Standards and Procedures our businesses and sites are required to have systems in place to effectively respond to crises and emergencies and re-establish full functioning operations as swiftly and smoothly as possible.

Requirements include:

  • identifying potential emergency situations and their impacts
  • defining response plans, roles and responsibilities
  • identifying, maintaining and testing resources to ensure their availability
  • training employees, contractors, visitors and external stakeholders
  • identifying, documenting, sharing and following-up on learnings from emergency response drills.

A crisis or emergency may be an extreme climatic event, disease outbreak, security issue or any other event that poses a significant threat to the safety or health of employees, contractors, customers or the public, or that can cause significant damage to the environment or our reputation.

Audit and self-assessment

Our assets are benchmarked through a regular audit process against our HSEC Standards. The Standards and Procedures are reviewed annually to ensure our assets operate under a leading practice framework. HSEC audits now also address HSEC risk management and HSEC data integrity. During FY2009, 26 HSEC audits were conducted. Operating sites are also required to undertake annual self-assessments against the Standards.

Since the program commenced in September 2001, 171 HSEC audits have been conducted, involving 486 BHP Billiton people and 41 external auditors.