To the Board of Directors, Management and Stakeholders of OZ Minerals Limited:
OZ Minerals Limited (OZ Minerals) commissioned Net Balance Management Group Pty Ltd (Net Balance) to provide independent verification of the information presented within the 2010 Sustainability Report. The Sustainability Report presents a summary of OZ Minerals’ non-financial performance over the period 1 January to 31 December 2010.
OZ Minerals was responsible for the preparation of the Sustainability Report and this verification statement represents Net Balance’s independent opinion on the reliability of information presented within the Report. Net Balance’s responsibility as an independent verification provider is to the Board of Directors and management of OZ Minerals alone and in accordance with the terms of reference agreed with them. Other stakeholders should perform their own due diligence before taking any action as a result of this statement.
The objective of the verification process is to provide OZ Minerals and its stakeholders with an independent opinion on the accuracy of the information presented within the Sustainability Report. This was achieved by reviewing the accuracy and quality of disclosed sustainability performance information and the underlying systems, processes, information and data used to support the sustainability performance disclosures presented.
Verification Level, Criteria and Limitations
The level of verification provided is moderate as defined by the methodology described in this verification statement. The verification process covered the following disclosures within the report:
- KPIs outlined in the 2010 Performance Summary table.
- Safety & Health performance data.
- Greenhouse & Energy performance data.
In reviewing OZ Minerals disclosures, Net Balance considered the following criteria:
- Requirements of the ISO 14064 standards and National Greenhouse and Energy Reporting (NGER) Legislation.
- The Global Reporting Initiative’s (GRI) Principles of Quality.
The verification process was undertaken in February and March 2011 and involved:
- A review of the 2010 Performance Summary, Greenhouse & Energy and Safety & Health sections of the report for any anomalies, particularly in relation to significant claims as well as trends in data.
- A review of OZ Minerals’ key systems and processes used for managing and reporting sustainability performance information.
- A review of the accuracy and source of information presented in the report through examination of 60 selected sustainability performance disclosures.
- A series of interviews with key personnel responsible for collating and writing various components of the report in order to substantiate the veracity of selected claims.
- Collecting and evaluating evidence to support the verification work undertaken.
- A Global Reporting Initiative (GRI) G3 Application Level Assessment.
Independence and Credentials
Net Balance was not responsible for preparation of any part of the OZ Minerals’ Sustainability Report. Net Balance confirms that we are not aware of any issue that could impair our objectivity in relation to this verification engagement.
The verification engagement was carried out by a team of professionals with expertise in environmental, social and economic performance measurement, and led by a Lead Sustainability Assurance Practitioner (Lead CSAP) accredited by the International Register of Certified Auditors (IRCA UK).
Reliability of Performance Information
Based on the verification procedures undertaken, the following represents Net Balance’s opinion:
- The findings of the verification engagement provide confidence in the systems and processes used for managing and reporting sustainability performance information.
- The level of accuracy of sustainability performance information was found to be within acceptable limits.
- Data trails selected were generally identifiable and traceable, and the personnel responsible were able to reliably demonstrate the origin(s) and interpretation of data.
- The sustainability performance disclosures reviewed during this engagement appropriately reflect performance achieved during the period.
- The GRI application level check classified the Report as Level B+.
Overall, it is Net Balance’s opinion that the disclosures covered by this engagement are fair and accurate and that they form a reliable account of OZ Minerals’ sustainability performance during the reporting period.
On behalf of the verification team
28 March 2011
Terence Jeyaretnam, FIEAust
Director, Net Balance & Lead CSAP (IRCA UK)