The Australian Government has introduced requirements to encourage businesses to transition to a lower carbon future. As an operator and producer of mineral products in Australia, OZ Minerals seeks to anticipate, understand and manage the business risks associated with emerging climate change policy. Our climate change risk profile is based on the following:
- The impact of an Australian emissions trading scheme on the cost structure of our business, primarily due to increased operating costs and/or supply risk for electricity and fuel.
- The effect on demand for our products resulting from business constraints felt by our customers due to changing emissions trading regulation in their jurisdictions.
- Changing climatic regime, including the potential disruption of exploration activity, operations and transportation due to extreme weather and changes in climate systems.
The focus of work in 2009 has been to establish an energy usage baseline and carbon footprint at Prominent Hill. In 2009, OZ Minerals completed its first report under the National Greenhouse and Energy Reporting Act 2007 (NGER). Prior to the submission of the report, a comprehensive independent readiness assessment was conducted on the processes that OZ Minerals had developed to meet the requirements of the NGER Act. OZ Minerals continues to participate in the Australian Government Energy Efficiency Opportunities program and the global Carbon Disclosure Project.