Myanmar Ivanhoe Copper Company Limited

Myanmar Ivanhoe Copper Company Limited (MICCL) is a 50-50 joint venture company that is

owned by Mining Enterprise No. 1 (ME-1), an agency of the Ministry of Mines of the Union of

Myanmar, and Ivanhoe Myanmar Holdings Limited ( IMHL), which is owned by the Monywa

Trust. The Monywa Trust, an independent, third-party trust, acquired interim ownership of

the IMHL interest from Ivanhoe Mines Ltd. on February 27, 2007. The Sabetaung-Kyisintaung

(S&K) Mine, located in central Myanmar, is an open-pit, heap-leach copper mine operated by

MICCL. Currently, the mine is operating at a capacity of its initial design capacity 25,000 tonnes

of copper per year.

MICCL successfully continued three international certifications in 2007:

• the AS/NZS 4801 Certificate relating to Occupational Health & Safety Management;

• the ISO 9001 Certificate relating to Quality Management; and

• the IS0 14001 Certificate for Environmental Management.

MICCL also maintained its cathode quality in accordance with LME Grade A specifications. MICCL is

striving to maintain a Best Practices international performance standard throughout its operations,

while achieving continual improvements in quality, environment, health and safety standards.


ContentsForeword 4

OurPolicies 6

Certificates 7

OverviewofOperations 8 About MICCL Location Ownership Mining History of Monywa Area Ore Reserves Mining Operation Plant Operation Overview Crushing, Stacking and Heap Leaching Solvent Extraction and Electrowinning Production Targets

Safety,OccupationalHealth& 18EnvironmentalManagementintheS&KProject

Safety,Health&CommunitySupportInitiatives 20 Safety Performance Health Performance

Environment 29 Environment Management Systems Compliance Incidents Issues & Actions Water Land Air Waste Energy & Emissions Dangerous Goods Community Objectives and Targets 2007 Management Plan for Improvement of Safety Performance 2008

CompetencyTraining 46 Techinal/Trades Training Safety and Environmental Training

NewProjects 53 Introduction New Diesel Fuel Farm Agitation Leaching Plant Modification Fines Screening Plant Extension Residue Treatment Plant

VerificationStatements 55

Glossary 56

4 | Safety, Health & Environmental Report

Foreword

Chairman’s Message

Year 2007 demonstrated as a record year in terms of mines production a total tonnage,

ore plus waste, of about 23.4 million tonnes. This reflects the efficiency/productivity of the

new mining equipment operated by well-trained operators under good supervision. I would

like to congratulate the mining team together with the management for this achievement.

Record waste extraction (16.3 million tonnes) should not have gone unnoticed. The

S&K pits have been waste bound for last 3-4 years due to the insufficient mining equipment.

For the first time in its operational life span that pits have been running well without this

waste bound issue.

Under this workload, achieving 5 million man-hours Lost Time Injury free was an

honorable record in Safety which was the outcome of the dedication of workforce and the

commitment of management to maintain good safety performance in all work areas.

Successfully maintained ISO 14001 certification was also attributable to the team’s

concerted effort and again a reflect of dedication towards environmental protection

commitments.

Despite high copper price and increased mine production, cathode production was much

reduced due to lower ore grades as the pits get deeper and to some operational downtime

mainly caused by reagent shortage. This reflects the need of a robust supply/ purchase

activities that would ensure timely arrival of consumables, sufficient quantity of stocks.

Forthcoming year, 2008 is to be viewed as a much more stable year in terms of supplies,

copper sales, and the production. With MICCL’s traditional high team-spirit supported by

Management Board’s guidance, I trust the targets could be achieved.

U Hla Thein

Chairman


Safety, Health & Environmental Report | 5

General Manager’s Message During 2007, MICCL demonstrated as world class mining operation. MICCL’s commitment to the stake holders continued with much activity in the Safety, Health and Environment area. These activities have been worked closely with our auditors Societe General de Surveillance (SGS).

MICCL voluntarily suspended ISO 14001 in May 2007 to gain more time to develop an effective plan to take corrective action regarding some issues raised in the November 2006 SGS audit.

The Management plan for the Immediate Action Plan and Long Term Action Plan were developed in June 2007 by MICCL staff based on their past experience. The suspended MICCL ISO 14001:2004 Environmental Management System Certificate was reinstated by the SGS Accreditation Body on 11th December 2007 after taking all the remedial actions listed in the action plans and upon verification of all clauses of the ISO 14001:2004 standard identified during the SGS audit process in November 2007.

Consideration for the environment is an important part of the MICCL culture; a few project works for the repairing of storm water ponds, constructing wet land-3 and tidying the Pad-2 lay down yard were initiated during this year.

The Safety practitioner attention in giving inductions to the workforce has maintained a high standard of vigilance in the working area. The workforce’s attention to safety practices is reflected by a measurable improvement in the working area of the production and project works.

MICCL has retained the much prized certification guidelines of AS/NZS 4801, ISO 9001 and ISO 14001 for some years now and these standards should be maintained and improved upon for supporting of MICCL’s future development.

Cathode copper production of 17777 tonnes in this year fell below the design capacity of 25000 tonnes due to the delayed delivery of the reagents and spare parts of the heavy mining and process equipment. During this year MICCL has seen many challenges particularly with the ongoing procurement and supply crisis. Through out 2007 MICCL enjoyed the support of our Joint Venture partners and stake holders. With their continued and wholehearted support MICCL should be able to reposition itself to once again achieve the design cathode copper production rate. MICCL’s objective is to produce cathode copper for export to the world with a safe workplace for our employees and a minimum impact on our surrounding environment.

My thanks to all MICCL staff and employees for their diligence and loyal support during the year.

Glenn Eric FordActing General ManagerMyanmar Ivanhoe Copper Company Limited


Foreword

Chairman’s Message

Year 2007 demonstrated as a record year in terms of mines production a total tonnage,

ore plus waste, of about 23.4 million tonnes. This reflects the efficiency/productivity of the

new mining equipment operated by well-trained operators under good supervision. I would

like to congratulate the mining team together with the management for this achievement.

Record waste extraction (16.3 million tonnes) should not have gone unnoticed. The

S&K pits have been waste bound for last 3-4 years due to the insufficient mining equipment.

For the first time in its operational life span that pits have been running well without this

waste bound issue.

Under this workload, achieving 5 million man-hours Lost Time Injury free was an

honorable record in Safety which was the outcome of the dedication of workforce and the

commitment of management to maintain good safety performance in all work areas.

Successfully maintained ISO 14001 certification was also attributable to the team’s

concerted effort and again a reflect of dedication towards environmental protection

commitments.

Despite high copper price and increased mine production, cathode production was much

reduced due to lower ore grades as the pits get deeper and to some operational downtime

mainly caused by reagent shortage. This reflects the need of a robust supply/ purchase

activities that would ensure timely arrival of consumables, sufficient quantity of stocks.

Forthcoming year, 2008 is to be viewed as a much more stable year in terms of supplies,

copper sales, and the production. With MICCL’s traditional high team-spirit supported by

Management Board’s guidance, I trust the targets could be achieved.

U Hla Thein

Chairman


Our Policies


Certificates


Our Policies


Overview of Operation

The Sabetaung - Kyisintaung (S&K) Mine is located in Monywa District, Sagaing

Division. The mine is on the west bank of Chindwin River and on the east bank

is Monywa, the capital of Sagaing Division. Chindwin is the biggest tributary of

Ayeyarwaddy (Irrawaddy) river, the longest navigable one in Myanmar flowing from

north to south.

S& K mine site is one of the best mines in Myanmar in terms of its close proximity

to the Monywa Urban area where more than 500,000 peoples live. Monywa is only

120 km by road from Mandalay, the second Capital of Myanmar. An area which has a

lot of ancient pagodas and monasteries, Monywa has a long history.

The Mine site is just 40 minutes drive away from Monywa by an all weather road

across the Chindwin bridge. It is located in the semi-arid area with about 700mm

annual rainl fall, where shrubs and Palm trees are common. The landscape around is

more or less rolling with small hills.

About MICCLLocation


Myanmar

China

Laos

Thailand

India

Bang

lade

sh

Mandalay

Yangon

Chiang Mai

Bangkok

Monywa

AndamanSea

Bay of Bengal

Ownership Myanmar Ivanhoe Copper Company Limited (MICCL) is a 50-50 joint venture company that is owned by Mining Enterprise No. 1 (ME-1), an agency of the Ministry of Mines of the Union of Myanmar, and Ivanhoe Myanmar Holdings Limited ( IMHL), which is owned by the Monywa Trust. The Monywa Trust, an independent, third-party trust, acquired interim ownership of the IMHL interest from Ivanhoe Mines Ltd. on February 27, 2007.


Mining History of Monywa Area1930s British administration conducted regional geological studies.1950s Burma (Myanmar) Geological Department surveyed the area with Yugoslav counterparts.1972 The Japanese Government gave technical and financial assistance for more definitive drilling.1978 An agreement was signed between ME-1 and the Bor Copper Institute of Yugoslavia to develop the S&K deposits.1984 An 8,000-tonne-per-day (tpd) copper mill operation was started.1994 ME-1 and IMHL signed a feasibility agreement to develop the copper deposits in the S&K area and nearby Letpadaung.1995 A 1 tpd Pilot Plant was built to confirm the process suitability and also to train Myanmar technicians.1996 A two-year study culminated with positive outcomes. Based on extensive drilling (905 drill holes with a total length of 118,538 metres), a leaching test and Pilot Plant operations, MICCL was formed as a joint-venture between ME-1 and IMHL.1997 A 25,000-tonne-per-year SX-EW plant was constructed.1997 After an extensive drilling programme at Letpadaung, a feasibility study to develop this project was completed and submitted.1998 Cathode copper production began.2002 Expansion of the project to 28,000 tpy of cathode copper production began.2003 The project was expanded to 31,000 tpy.2004 The project was further expanded to 39,000 tpy.2005 A High-Grade Ore Agitated Leach Plant was commissioned for 13 t/h ore capacity.2006 High-Grade Ore Agitated Leached Plant was modified to improve leaching and to stabilize the operation.

New policy defined clearly the limit of high-grade ore deposit to optimize leaching. GRD Minproc study to combine the Sabetaung pit and Sabetaung South pit.

2007 New Diesel Fuel Farm was constructed to increase storage capacity. Fine Screening Plant extension was made to increase throughput. Residue Treatment Plant was constructed to recover more copper from residue.

Ore Reserves Pit re-optimization on the Sabetaung and Sabetaung South deposits was completed in 2006 with

consultants from GRD Minproc, Australia.

Mineral resources and reserves at the S&K Mine as are shown below:


Mineral ResourcesDecember 31, 2007(3)

Deposit Measured Indicated Inferred Total Tonnes Grade(1) Tonnes Grade(1) Tonnes Grade(1) Tonnes Grade(1)

(millions) (%)Cu (millions) (%)Cu (millions) (%)Cu (millions) (%)Cu

Sabetaung 25.689 0.31 41.101 0.21 3.526 0.26 70.316 0.25

Kyisintaung - - 317.4 0.3 47 0.22 364.4 0.29

Letpadaung 577 0.44 492 0.36 409 0.31 1478.00 0.38

Ore ReservesDecember 31, 2007(3)

(1) Cut-off grades for Sabetaung is 0.08% Cu.

Deposit Proven Probable Total Tonnes Grade(1) Tonnes Grade(1) Tonnes Grade(1)

(millions) (%)Cu (millions) (%)Cu (millions) (%)Cu

Sabetaung 25.698 0.31 41.101 0.21 66.79 0.249

(1) Cut-off grades are 0.08% for Sabetaung, 0.15% for Kyisintaung and 0.10% for Letpadaung.

(2) Tonnage decimal places not shown.

(3) Sabetaung mineral resources are as at 31 December 2007, based on optimization July 2006 and

Model November 2005.

(4) Kyisintaung mineral resources are as at July 2006, Model September 2000.

Myanmar

China

Laos

Thailand

India

Bang

lade

sh

Mandalay

Yangon

Chiang Mai

Bangkok

Monywa

AndamanSea

Bay of Bengal

Ownership Myanmar Ivanhoe Copper Company Limited (MICCL) is a 50-50 joint venture company that is owned by Mining Enterprise No. 1 (ME-1), an agency of the Ministry of Mines of the Union of Myanmar, and Ivanhoe Myanmar Holdings Limited ( IMHL), which is owned by the Monywa Trust. The Monywa Trust, an independent, third-party trust, acquired interim ownership of the IMHL interest from Ivanhoe Mines Ltd. on February 27, 2007.


Mining History of Monywa Area1930s British administration conducted regional geological studies.1950s Burma (Myanmar) Geological Department surveyed the area with Yugoslav counterparts.1972 The Japanese Government gave technical and financial assistance for more definitive drilling.1978 An agreement was signed between ME-1 and the Bor Copper Institute of Yugoslavia to develop the S&K deposits.1984 An 8,000-tonne-per-day (tpd) copper mill operation was started.1994 ME-1 and IMHL signed a feasibility agreement to develop the copper deposits in the S&K area and nearby Letpadaung.1995 A 1 tpd Pilot Plant was built to confirm the process suitability and also to train Myanmar technicians.1996 A two-year study culminated with positive outcomes. Based on extensive drilling (905 drill holes with a total length of 118,538 metres), a leaching test and Pilot Plant operations, MICCL was formed as a joint-venture between ME-1 and IMHL.1997 A 25,000-tonne-per-year SX-EW plant was constructed.1997 After an extensive drilling programme at Letpadaung, a feasibility study to develop this project was completed and submitted.1998 Cathode copper production began.2002 Expansion of the project to 28,000 tpy of cathode copper production began.2003 The project was expanded to 31,000 tpy.2004 The project was further expanded to 39,000 tpy.2005 A High-Grade Ore Agitated Leach Plant was commissioned for 13 t/h ore capacity.2006 High-Grade Ore Agitated Leached Plant was modified to improve leaching and to stabilize the operation.

New policy defined clearly the limit of high-grade ore deposit to optimize leaching. GRD Minproc study to combine the Sabetaung pit and Sabetaung South pit.

2007 New Diesel Fuel Farm was constructed to increase storage capacity. Fine Screening Plant extension was made to increase throughput. Residue Treatment Plant was constructed to recover more copper from residue.


Mining Operation The S&K Mine consist of three copper

ore bodies: Sabetaung, Sabetaung South and

Kyisintaung. An additional potential large-scale

copper ore body, Letpadaung deposit, is located

nearby.

At present, the Sabetaung and Sabetaung

South pits are being mined, with approvals being

sought for the development of the Kyisintaung and

the Letpadaung deposits. Current strategic planning

provides for an open pit to be excavated into each

of these deposits. During the 2007 calendar year,

8,470,352 tonnes of ore at 0.32% copper and

14,918,633 tonnes of waste were mined from the

two Sabetaung pits, a total of approximately 23.39

million tonnes and an increase on the previous year

The MICCL present mining fleet consists of the

following equipment:

3 Wheel Loaders Caterpillar 992G

4 Wheel Loaders Caterpillar 992C

4 Excavators Daewoo 500LCV

2 Excavators Caterpillar 345B

1 Excavator Caterpillar 320B

8 Dump Trucks Caterpillar 773B

15 Dump Trucks Caterpillar 777D

1 Drill Rig Tamrock D55SP

1 Grader Caterpillar 16H

2 Graders Caterpillar 16G

3 Track Dozers Caterpillar D9R


1 Wheel Dozer Caterpillar 824C

2 Water Trucks Caterpillar 773B

of 9.90 million tonnes. This increase was achieved

from the additional pieces of equipment brought

in November 2006.

The majority of the Caterpillar equipment is

relatively old, having been transferred from ME-

1 to MICCL in 1997 and refurbished over time.

Three (3) new Caterpillar 992G Wheel Loaders,

nine (9) new Caterpillar 777D Dump Trucks, two

new Caterpillar D9R Track Dozers and one new

Caterpillar 16H Grader were commissioned in

2006.


Plant Operation OverviewAfter mining and crushing, the processing of the ore to produce saleable copper involves three stages:

• Heap leaching to dissolve the valuable copper from the chalcocite ore.

• Solvent extraction to purify and concentrate the copper solution generated by leaching.

• Electrowinning to plate the copper as high-grade cathodes.


Mining Operation The S&K Mine consist of three copper

ore bodies: Sabetaung, Sabetaung South and

Kyisintaung. An additional potential large-scale

copper ore body, Letpadaung deposit, is located

nearby.

At present, the Sabetaung and Sabetaung

South pits are being mined, with approvals being

sought for the development of the Kyisintaung and

the Letpadaung deposits. Current strategic planning

provides for an open pit to be excavated into each

of these deposits. During the 2007 calendar year,

8,470,352 tonnes of ore at 0.32% copper and

14,918,633 tonnes of waste were mined from the

two Sabetaung pits, a total of approximately 23.39

million tonnes and an increase on the previous year

The MICCL present mining fleet consists of the

following equipment:

3 Wheel Loaders Caterpillar 992G

4 Wheel Loaders Caterpillar 992C

4 Excavators Daewoo 500LCV

2 Excavators Caterpillar 345B

1 Excavator Caterpillar 320B

8 Dump Trucks Caterpillar 773B

15 Dump Trucks Caterpillar 777D

1 Drill Rig Tamrock D55SP

1 Grader Caterpillar 16H

2 Graders Caterpillar 16G



1 Wheel Dozer Caterpillar 824C

2 Water Trucks Caterpillar 773B

of 9.90 million tonnes. This increase was achieved

from the additional pieces of equipment brought

in November 2006.

The majority of the Caterpillar equipment is

relatively old, having been transferred from ME-

1 to MICCL in 1997 and refurbished over time.

Three (3) new Caterpillar 992G Wheel Loaders,

nine (9) new Caterpillar 777D Dump Trucks, two

new Caterpillar D9R Track Dozers and one new

Caterpillar 16H Grader were commissioned in

2006.


The processing of the mined ore to produce saleable copper relies on three stages:• Heap leaching to dissolve the valuable copper from the chalcocite ore.• Solvent extraction to purify and concentrate the copper solution generated by leaching.• Electrowinning to plate the copper as high-grade cathodes.

Normally, the ore from the mine pits is crushed in a two-stage crushing circuit that reduces the maximum rock size from a diameter of approximately one metre down to an average of 30 millimetres. The crushed and sized ore is agglomerated with a diluted sulphuric acid solution in a steel drum and transported along a series of belt conveyors to properly-prepared leach cells.

Problems have been experienced with the high proportion of clays in some of the S&K ores. These materials make the ore heaps impermeable and reduce leach recovery. Therefore, the crushing circuit has been modified by adding a Fines Screening Plant (FSP).

At the primary crusher, mined ore is crushed to a maximum passing size of 230 millimetres. The crushed product passes through the primary

screens, with oversized (+40mm) material crushed by the secondary cone crushers. Undersized material (-40mm) from the primary screen is further washed and screened in a newly constructed Fines Screening Plant to remove the majority of the less-than-63-micron material that also contains most of the clays present. This material is stored in a specially prepared Tailing Fines Storage Facility, available for treatment in future. Some coppers are recovered in pipe reaction during transportation to tailing dams, and recovery is about 50% of copper content from fines product.

All of the de-slimed products greater than 63 microns in size are combined with discharge materials from secondary crushers, and are conveyed to an agglomerating drum. The agglomerates produced consist of the larger particles of ore coated with the finer particles by the tumbling action of the material within the drum. The agglomerated ore passes via a conveying system to a radial stacker that allows the ore to be placed onto a heap to an even height at 3 metres. In March 2007, agglomeration was by-passed because the inlet chute was frequently blocking and causing down time again and again. There are no changes in recovery with or without agglomerator operation of stacked cells.

Crushing, Stacking and Heap Leaching


Each heap or cell is approximately 700 metres long and 80 metres wide, containing some 300,000 tonnes of agglomerates that appear as a homogeneous, semi-porous structure amenable to leaching. The crushed, washed and stacked ore comprises blending of 60% of the least competent material and 40% of good competent ore available from the mine at the time.

Due to the limited throughput of the crushing section, run-of-mine ore is also directly placed onto the leach cells by truck-dumping (ROM Ore Dumping). ROM ore dumping involves building a ramp onto a cell to a four-meter height and then tipping ore directly over the face to the floor below. The ROM ore received from the mine contains both fine and coarse fractions.

The height of the heap is strictly controlled to four meters with a tolerance of 0.3 metre, using bulldozers. The ROM-dumped ore in the body of the heap is carefully selected to be the most competent available material from the mine pits. The heap surface is ripped to one metre depth before installation of irrigation pipes.

Ore character is pre-determined from drilled chip samples in a metallurgical laboratory. Quality control personnel are assigned to supervise the process of selecting whether ore is sent to the crusher or to ROM dumping cells, according to the ore’s competency level. A continuous cell-expansion program has been implemented to provide the large areas required to store the inventory of ore necessary to maintain the higher-than-design production levels. At present there are three leach pads with 37 cells at the optimal four- metre height. The stacked ore is irrigated using either a network of pipes and low-pressure sprinklers, called wobblers, or by drip irrigators. A diluted sulphuric acid solution containing high levels of dissolved iron is used to extract the copper from the ore. The acidic solution is formed naturally from the heaps by the accelerated weathering of the rocks, which contain pyrite, an iron sulphide mineral. Naturally occurring bacteria catalyze this reaction and, consequently, the process is termed bio-heap leaching.

The base of each heap is lined firstly with a 300-mm-thick clay layer and then a plastic liner that in turn is covered by another clay liner to

prevent copper solution loss and to protect the acidic solution from seeping into the ground water system. Each heap is constructed on a slight slope, so that the solution containing the dissolved copper percolates down through the heaps to the liner and then flows downhill into a series of collection channels that drain into a system of plastic-lined ponds. The solutions containing the highest copper grade are directed into the pregnant leach solution, or PLS, pond. While some of the less concentrated solution is pumped back from intermediate solution pond, or ILS, onto the heaps to extract more copper, the PLS solution is pumped to the solvent-extraction plant.

This solution not only contains copper, but also impurities such as iron that have to be removed before the final electrowinning step. Solution management to and from heap cells is strictly controlled on a daily basis.

The copper grade of some reaches between 5% and 10%, higher than the normal grade of about 0.4%, and such ores are treated separately in one-metre-high heap cells or in the agitation leaching plant. The ore is crushed to -12mm in two-stage crushing, ground to -150 micron metre and then leached in tanks with raffinate solution. The leached slurry is sent to the residue pond. The clear solution, which is the pregnant leach solution, is recovered from the pond. That rich solution is sent back to the PLS pond. The remaining residue, containing relatively high-grade copper (about 3% to 4%) is stored in the plastic lined residue pond for re-treatment. Agitation leaching plant is modified its flow sheet to add a scrubber unit parallel to the Primary Crusher especially for the raining season, to avoid the wet ore coming into the crusher and increase through put in the agitation circuit from 13tph to 35tph. It would be on line in the wet season this year.


The processing of the mined ore to produce saleable copper relies on three stages:• Heap leaching to dissolve the valuable copper from the chalcocite ore.• Solvent extraction to purify and concentrate the copper solution generated by leaching.• Electrowinning to plate the copper as high-grade cathodes.

Normally, the ore from the mine pits is crushed in a two-stage crushing circuit that reduces the maximum rock size from a diameter of approximately one metre down to an average of 30 millimetres. The crushed and sized ore is agglomerated with a diluted sulphuric acid solution in a steel drum and transported along a series of belt conveyors to properly-prepared leach cells.

Problems have been experienced with the high proportion of clays in some of the S&K ores. These materials make the ore heaps impermeable and reduce leach recovery. Therefore, the crushing circuit has been modified by adding a Fines Screening Plant (FSP).

At the primary crusher, mined ore is crushed to a maximum passing size of 230 millimetres. The crushed product passes through the primary

screens, with oversized (+40mm) material crushed by the secondary cone crushers. Undersized material (-40mm) from the primary screen is further washed and screened in a newly constructed Fines Screening Plant to remove the majority of the less-than-63-micron material that also contains most of the clays present. This material is stored in a specially prepared Tailing Fines Storage Facility, available for treatment in future. Some coppers are recovered in pipe reaction during transportation to tailing dams, and recovery is about 50% of copper content from fines product.

All of the de-slimed products greater than 63 microns in size are combined with discharge materials from secondary crushers, and are conveyed to an agglomerating drum. The agglomerates produced consist of the larger particles of ore coated with the finer particles by the tumbling action of the material within the drum. The agglomerated ore passes via a conveying system to a radial stacker that allows the ore to be placed onto a heap to an even height at 3 metres. In March 2007, agglomeration was by-passed because the inlet chute was frequently blocking and causing down time again and again. There are no changes in recovery with or without agglomerator operation of stacked cells.

Crushing, Stacking and Heap Leaching

Solvent extraction involves the selective extraction of the valuable copper from the PLS into an immiscible organic phase, consisting of a complex organic extractant dissolved in high-flash-point kerosene. After separating the aqueous and organic phases using gravity, the valuable copper then is stripped from the loaded organic phase using a highly acidic electrolyte, called spent electrolyte, returned from the electrowinning tank-houses to produce an enriched electrolyte, known as the strong electrolyte. The low-copper aqueous solution from the extraction stage (raffinate), which becomes higher in acid content, is returned to the leach cells to recover more copper, while the strong electrolyte is sent to the tankhouses for electrowinning.

The key to the solvent-extraction process is the acidity of the aqueous phase. At low-acid concentrations, copper is extracted into the organic phase, but this reaction reverses at elevated acid concentrations. The extraction and stripping stages of the solvent-extraction process take place in mixer-settlers. These consist of a series of tanks in which the immiscible organic and aqueous phases are intimately mixed together, allowing the extraction (or stripping) reactions to occur prior to flowing into a large settling tank where the two immiscible phases separate again,

Solvent Extraction and Electrowinningwith the lighter organic phase rising on top of the heavier aqueous phase. At the exit of the settling tank, the two phases are separated using an arrangement of collection weirs.

Following expansion steps completed in October 2004 that added a further 86 electrowinning cells, there now are two electrowinning tank-houses at MICCL operating on four electrical circuits. There are 104 electrowinning cells in the original tank-house (Tank-House-A), with each cell containing 46 inert, lead-alloy anodes and 45 stainless steel cathodes. The expanded tank house (Tank-House-B) has a total of 122 cells, where each cell contains 15 inert, lead-alloy anodes and 14 stainless steel cathodes. The rich copper solution (electrolyte) is distributed between these cells. A direct electrical current is passed between the anodes and cathodes and metallic copper is plated from the electrolyte onto the cathode surface. Approximately 2,200 kWh of power is required to electrowin one tonne of cathode copper.

The cathodes are stripped every seven days, each producing two sheets of high-purity copper weighing approximately 50 kg. The sheets are washed, sampled, weighed and bundled for shipment. Sampling is being carried out on an 80-tonne-lot basis and the analysis is done at an


The S&K Project was originally designed with a production capacity of 25,000 tonnes yearly, which has been achieved since year one. The project has been expanded stage by stage and the plant has now a production capacity of 39,000 tonnes per year. However, only Tank-House-A was in operation in 2006 due to low heap leach production, which stemmed from low Mine ore production.

ProductionPerformance


Cathode Copper Production 1999 to 2007

Monthly Cathode Copper Production for 2007

offshore laboratory. MICCL produces copper that complies with the London Metals Exchange Grade A rating, and is more than 99.99% pure.

The heap-leach/SX-EW process is an environmentally friendly way to economically produce high-grade copper from low-grade ore deposits.

MICCL’s Sabetaung and Kyisintaung project is a zero-discharge operation, and all solution flows are re-circulated to ensure that no effluent is discharged from the mine to outside lease area.

Solvent extraction involves the selective extraction of the valuable copper from the PLS into an immiscible organic phase, consisting of a complex organic extractant dissolved in high-flash-point kerosene. After separating the aqueous and organic phases using gravity, the valuable copper then is stripped from the loaded organic phase using a highly acidic electrolyte, called spent electrolyte, returned from the electrowinning tank-houses to produce an enriched electrolyte, known as the strong electrolyte. The low-copper aqueous solution from the extraction stage (raffinate), which becomes higher in acid content, is returned to the leach cells to recover more copper, while the strong electrolyte is sent to the tankhouses for electrowinning.

The key to the solvent-extraction process is the acidity of the aqueous phase. At low-acid concentrations, copper is extracted into the organic phase, but this reaction reverses at elevated acid concentrations. The extraction and stripping stages of the solvent-extraction process take place in mixer-settlers. These consist of a series of tanks in which the immiscible organic and aqueous phases are intimately mixed together, allowing the extraction (or stripping) reactions to occur prior to flowing into a large settling tank where the two immiscible phases separate again,

Solvent Extraction and Electrowinningwith the lighter organic phase rising on top of the heavier aqueous phase. At the exit of the settling tank, the two phases are separated using an arrangement of collection weirs.

Following expansion steps completed in October 2004 that added a further 86 electrowinning cells, there now are two electrowinning tank-houses at MICCL operating on four electrical circuits. There are 104 electrowinning cells in the original tank-house (Tank-House-A), with each cell containing 46 inert, lead-alloy anodes and 45 stainless steel cathodes. The expanded tank house (Tank-House-B) has a total of 122 cells, where each cell contains 15 inert, lead-alloy anodes and 14 stainless steel cathodes. The rich copper solution (electrolyte) is distributed between these cells. A direct electrical current is passed between the anodes and cathodes and metallic copper is plated from the electrolyte onto the cathode surface. Approximately 2,200 kWh of power is required to electrowin one tonne of cathode copper.

The cathodes are stripped every seven days, each producing two sheets of high-purity copper weighing approximately 50 kg. The sheets are washed, sampled, weighed and bundled for shipment. Sampling is being carried out on an 80-tonne-lot basis and the analysis is done at an


Safety, Occupational Health & Environmental Management in the S&K Project

MICCL’s Integrated Management Systems policy provides the foundation for sustained, high quality, Safety, Occupational Health & Environmental performance. Standard operating procedures and Departmental instructions provide safe work systems and both internal and external audits provide assurance and feedback for improvement plans.

MICCL’s approach to management of Safety, Occupational Health & the Environment (SHE) management relies on: • Line management ownership and responsibility for SHE performance. • Clearly documented SHE objectives and targets for line management and

employees through management programs. • The provision of training to help supervisors and employees identify hazards,

potential injuries and to encourage personal action to minimize risks.

Going forward, MICCL’s SHE strategy will continue to insist that supervisors be uncompromising in their demands for adherence to SHE standard procedures; that, through job-safety analysis and task observation, attention be directed to the potential for incidents to cause serious harm or loss; and that training, involving competency assessment and cross-learning throughout the organization, be actively promoted.

MICCL’s commitment to safety, occupational health, the environment and product stewardship is unwavering. MICCL manages all its activities with concern for people, communities and the environment and conducts its business for the benefit of society without compromising the quality of life for future generations. This is MICCL’s commitment to ensuring a long-term, sustainable business that is socially and environmentally responsible and provides a good return on investment to the shareholders.


Safety, Health & Community Support Initiatives


Safety Performance MICCL is committed to protecting its

employees from injuries and occupational

illnesses.

On April 22, 2003, MICCL introduced an

Occupational Health & Safety Management

System (OHSMS) based on the AS/NZS 4801:2001

standard. The implementation of effective

occupational health and safety (OHS) management

actions can assist in meeting legal requirements

and can lead to sustained improvement in OHS

performance.

Personnel are the organization’s greatest

assets and occupational health and safety risks

associated with MICCL’s activities need to be

reduced and effectively managed. MICCL believes

that all injuries and occupational illnesses are

preventable and places heavy emphasis on

hazard identification, risk assessment and hazard

control. Procedures for Hazard Identification

and Risk Assessment (HIRA) were developed

and implemented based on AS- 4360 standard.

Risks are evaluated and registered within each

department and also for the entire operation.

Identified risks have been controlled through a

preferred order of control methods (commonly

referred to as a hierarchy). Safety objectives and

targets have been established, based on the risk

ranking, and detailed management programs for

achieving those objectives and targets also have

been developed.

Job Safety Analysis (JSA) is the primary risk

assessment and management technique used for

all operational activities. Task-list development,

job-safety analysis and risk assessment are

performed in a team-based environment.

The Departmental Management Plan (DMP)

for each department was reviewed and revised to

comply with the latest development within the

department.

Safety, Health & Community Support Initiatives


Safety Performance MICCL is committed to protecting its

employees from injuries and occupational

illnesses.

On April 22, 2003, MICCL introduced an

Occupational Health & Safety Management

System (OHSMS) based on the AS/NZS 4801:2001

standard. The implementation of effective

occupational health and safety (OHS) management

actions can assist in meeting legal requirements

and can lead to sustained improvement in OHS

performance.

Personnel are the organization’s greatest

assets and occupational health and safety risks

associated with MICCL’s activities need to be

reduced and effectively managed. MICCL believes

that all injuries and occupational illnesses are

preventable and places heavy emphasis on

hazard identification, risk assessment and hazard

control. Procedures for Hazard Identification

and Risk Assessment (HIRA) were developed

and implemented based on AS- 4360 standard.

Risks are evaluated and registered within each

department and also for the entire operation.

Identified risks have been controlled through a

preferred order of control methods (commonly

referred to as a hierarchy). Safety objectives and

targets have been established, based on the risk

ranking, and detailed management programs for

achieving those objectives and targets also have

been developed.

Job Safety Analysis (JSA) is the primary risk

assessment and management technique used for

all operational activities. Task-list development,

job-safety analysis and risk assessment are

performed in a team-based environment.

The Departmental Management Plan (DMP)

for each department was reviewed and revised to

comply with the latest development within the

department.


Personnel shall be competent to perform

tasks that may impact occupational health and

safety in the workplace. MICCL has established

education, training and awareness schemes to

ensure that all personnel have the necessary

capabilities and skills to perform their tasks

safely.

Health and safety competency assessments,

including identification of hazards, risk assessments,

and the elements of operational control and

emergency response, were conducted with each

employee to ensure that health and safety risks are

controlled to prevent harm from occurring.

One Lost Time Injury (LTI) occurred and at

the end of the year the Lost Time Injury Frequency

Rate (LTIFR) improved by 7%, decreasing from0.28

per million hours worked in December 2006 to

0.26 by December 2007, lower than the company’s

target of 1.0. A total of 32 workingman-days were

lost due to the single LTI accident. There was no

compensated injury in 2007.

Although the organization as a whole did

not have a perfect safety performance record,

some departments achieved over 3,400 LTI free

days with over 3.5 million hours worked. Safety

awareness needs to be maintained by conducting

regular workplace inspections, close supervision

and safety talks in departmental meetings and tool

box meetings.

A total of 161 incidents occurred during

2007, with five ranking high risk, 62 of moderate

risk and 94 low risk. There were 147 incidents

reported during 2006.

The 5 high-risk incidents were as follows:

• Track Dozer (DZ-04) fell down to the left side

on 16th January.

• Light vehicle (LV-35) drove across behind

the Dump Truck (DT-09) which waited to be

reversed on 4th February.

• Fire out break beside Mine Town to Main Head

Office (MHO) road in expatriate camp area on

13th February.

• Lightning strike to phone switch board on

13th June.

• (14) Nos. of High Tension (HT) concrete power

poles fell down by hitting of Dump Truck (DT-

11) when reversed on 10th October.

A Moderate-Risk incident prevented the LTI

rate being reduced to zero.

An employee from Mining department

dislocated and fractured left shoulder joint when

she tripped on a branch and struck against the side

of a vehicle in front of office on 7th September.

Most of the incidents involved equipment

damage with 105 incidents reported. A total of 26

personal injuries with 1 LTI, 21 MTI and 4 FAI, also

were reported - less than the 27 injuries recorded

in 2006. Most accidents were due to negligence or

failure to follow MICCL safety rules.


Reviews of the incidents produced the

following conclusions:

• Equipment Failure incidents were the most

common in 2007, causing equipment damage.

• Medical treatment injuries were caused by

failure to follow established procedures strictly

and lack of safety awareness and failure to

properly use personal protective equipment

(PPE).

• First-aid injuries were caused by not fastening

the guard properly, stepping onto High Density

Poly Ethylene (HDPE) pipe, bending hinge

plate incorrectly and cleaning sticky ore with

awkward position.

Based on the above points, the following

actions were recommended to reduce incidents

in general:

• Enforce and record Tool Box Meetings effectively

within the organization.

• Tighten up safety rules, especially use of

proper personal protective equipment(PPE),

appropriate to the tasks performed(Tool

Box Meetings, routine site inspections and

recording).

• Organize worksite supervisors to explain the

hazards of the tasks to the employees, especially

temporary employees (Weekly Safety Meetings

and Tool Box Meetings).

• Enforce reporting of all kinds of incidents and

investigate thoroughly; take corrective actions

to prevent recurrence (Departmental Action

Register).

Contractors and temporary employees

make up a large portion of MICCL’s workforce,

especially in project activities. We recognize that

the temporary operators and workers may be

more at risk of injuring themselves where they

are unfamiliar with MICCL’s operations, and

are undertaking non-routine tasks. Therefore,

much of our efforts in the next 12 months will

be devoted to the establishment of safe work

practices, focusing on contractors and temporary

employees.

A standard procedure was developed for

incident reporting and investigation. All incidents

were reported and investigated with the aim of

preventing recurrence within the organization.

Incidents also were classified and analyzed for

common trends.

Classified by Injury/Damage Year 2007


Work Place Injuries and Illness(01-01-07) to (31-12-07)

Cathode Copper Production & Lost Time Injury

Items 1999 2000 2001 2002 2003 2004 2005 2006 2007

First Aid Injuries 12 19 15 17 36 37 30 26 25

Lost Time Injuries 1 4 2 6 6 7 2 1 1

Total Injuries 13 23 17 23 42 44 32 27 26

Near Miss 31 69 66 57 38 57 56 30 30

Equipment Damage 80 84 75 125 121 127 96 90 105

Total Accidents / Incidents 124 176 158 205 201 228 184 147 161

LTIFR 0.75 1.83 0.63 1.63 1.69 2.00 0.63 0.28 0.26

Cathode Production 26737 26413 25864 27541 27870 31756 34479 19554 17,777


Reviews of the incidents produced the

following conclusions:

• Equipment Failure incidents were the most

common in 2007, causing equipment damage.

• Medical treatment injuries were caused by

failure to follow established procedures strictly

and lack of safety awareness and failure to

properly use personal protective equipment

(PPE).

• First-aid injuries were caused by not fastening

the guard properly, stepping onto High Density

Poly Ethylene (HDPE) pipe, bending hinge

plate incorrectly and cleaning sticky ore with

awkward position.

Based on the above points, the following

actions were recommended to reduce incidents

in general:

• Enforce and record Tool Box Meetings effectively

within the organization.

• Tighten up safety rules, especially use of

proper personal protective equipment(PPE),

appropriate to the tasks performed(Tool

Box Meetings, routine site inspections and

recording).

• Organize worksite supervisors to explain the

hazards of the tasks to the employees, especially

temporary employees (Weekly Safety Meetings

and Tool Box Meetings).

• Enforce reporting of all kinds of incidents and

investigate thoroughly; take corrective actions

to prevent recurrence (Departmental Action

Register).

Contractors and temporary employees

make up a large portion of MICCL’s workforce,

especially in project activities. We recognize that

the temporary operators and workers may be

more at risk of injuring themselves where they

are unfamiliar with MICCL’s operations, and

are undertaking non-routine tasks. Therefore,

much of our efforts in the next 12 months will

be devoted to the establishment of safe work

practices, focusing on contractors and temporary

employees.

A standard procedure was developed for

incident reporting and investigation. All incidents

were reported and investigated with the aim of

preventing recurrence within the organization.

Incidents also were classified and analyzed for

common trends.

Classified by Injury/Damage Year 2007

Health Performance


Y.I.C Medical Services has been providing

medical services to MICCL and ME (1) at the S &

K Project since July, 1999. Health care coverage

includes MICCL staff and family members both

at site and in Yangon, ME 1 staff and family

members, students and teachers of Mine Town

High School, police and army personnel guarding

the Mine.

MICCL Clinic MICCL Clinic is mainly responsible for

work-site accidents and medical evacuations and

available 24 hours a day, equipped with life-saving

facilities and an ambulance. The clinic also treats

MICCL expatriate staff.

MICCL clinic also organizes and takes part

in the following tasks:

1. Vaccinations of workers as required.

2. Regular hygiene check of the MICCL camp

kitchen to ensure the quality of the catering

service.

3. Pre-employment medical check of all new

recruits.

4. Annual medical check of all the staff of

MICCL.

5. Bi-annual medical check of all workers who are

exposed to acid mist in the electro-winning

section of the plant.

6. Annual first-aid training to some staff of

MICCL by Red Cross Society instructors.

7. Emergency response exercises.


MICCL Mine Town Hospital The Mine Town Hospital takes a major role

in health care of the workers of the S&K project

and their families. It is well equipped with a

laboratory, an operating theatre, a dental clinic,

an x-ray machine and a dental x-ray, an ultrasound

machine and modern autoclave sterilizer.

The hospital building has been upgraded

with renovation of floor and new painting. And

the recording system of the patients’ treatment

has been also computerized so that paper-works

are reduced to barely minimum.

The hospital is responsible for:

a. Treating patients as in-patients and out-

patients, operations both minor and major,

immunizations and medical checks for the

public.

b. Community health services which covers

1. School Health activities.

2. Regular care of pregnant mothers.

3. Care of under-one-year child including

vaccinations.

4. Prevention and control of hepatitis B

5. Prevention and control of blindness due to

vitamin A deficiency.

6. Periodic control and health education to the

community regarding Dengue Haemorrhagic

fever.

The overall outlook of the hospital has been

improved by tree planting and landscaping of the

hospital grounds. The appearance of the hospital is

now very different from that of nine years ago.

Medical Services in Yangon The Y.I.C. Medical Services in Yangon

provides free medical health care including

free pre-employment medical examinations,

medical checks, free medical consultations and

medicines, free laboratory investigations (but

not specialist consultations and hospital care)

to all Board Directors and their families, IMHL

office staff and their families, and mine-site staff

in Yangon on official visits. The total number of

people supported in this way is approximately 150

persons.

Health Performance


Y.I.C Medical Services has been providing

medical services to MICCL and ME (1) at the S &

K Project since July, 1999. Health care coverage

includes MICCL staff and family members both

at site and in Yangon, ME 1 staff and family

members, students and teachers of Mine Town

High School, police and army personnel guarding

the Mine.

MICCL Clinic MICCL Clinic is mainly responsible for

work-site accidents and medical evacuations and

available 24 hours a day, equipped with life-saving

facilities and an ambulance. The clinic also treats

MICCL expatriate staff.

MICCL clinic also organizes and takes part

in the following tasks:

1. Vaccinations of workers as required.

2. Regular hygiene check of the MICCL camp

kitchen to ensure the quality of the catering

service.

3. Pre-employment medical check of all new

recruits.

4. Annual medical check of all the staff of

MICCL.

5. Bi-annual medical check of all workers who are

exposed to acid mist in the electro-winning

section of the plant.

6. Annual first-aid training to some staff of

MICCL by Red Cross Society instructors.

7. Emergency response exercises.


Philanthropic Program, Ivanhoe Mines (Community health care support for residents within a five-mile radius of the S&K Copper Project)

Care, Education &Clean Water The principal mission of the Ivanhoe Mines

Philanthropic Program is to upgrade community

health and living standards for families within a

five-mile radius of the S&K Copper Mine.

Since its inception in 2002, the program

has provided free medical treatment and early

hospital care to pregnant women and children

under five years. It also provides health education

and other forms of direct assistance, including

helping people to build fly-proof latrines and

secure supplies of safe drinking water.

The program was developed and implemented

by IMHL Management, MICCL Management and

YIC staff of Mine Town hospital. A decision was

made in 2006 to expand the very successful

program. Effective January 2007 the Ivanhoe

Philanthropic Program will begin providing

Extended Health Care services, including

emergency medical treatment, to all people living

within the service area.

Services to 25,000 People The service area covers 26 villages and the

Mine Town community. There are 4,418 houses

for a total population of approximately 25,000

including 2600 people under the age of five (10.5%

of total population). The actual numbers fluctuate

slightly due to MICCL’s occasional and variable

requirements for casual workers who sometimes

relocate from neighboring villages.

Mine Town & Employees Population

Sr. No. Departments Population

1 MICCL Employee-Permanent 571

2 MICCL Employee-Seconded 192

Sub-Total 763

3 ME-1 Employee 37

4 Mine Town Community 2,140

TOTAL 2,940

Year Out-Patient Treated In-Patient Treated

1999 8712 353

2000 13592 351

2001 18005 459

2002 25023 571

2003 30417 470

2004 33611 494

2005 38579 519

2006 36548 456

2007 32492 500

Hospital Statistics


Yearly Philanthropic Hospital Activities

Year

In-patient Out-patient

Maternity Maternity

Surgical

Operation

Live

Bir

th

Still

Bir

th

Abo

rtio

n

Oth

er

Tota

l

Und

er 5

Gra

nd T

otal

Oth

er

AN-1

st v

isit

AN

-FU

Und

er 5

Gra

nd T

otal

Maj

or

Min

or

Tota

l

Tota

l

Health facilities In the program area, there is one rural

health center, five rural sub-health centers under

the Government Health Department and the

MICCL Mine Town Hospital.

Staffing Coordination and first contact of the

Philanthropic Program with the community is

provided by one senior staff person, one midwife

and one driver. MICCL Mine Town Hospital staff

offer 24 hour medical services to referred patients

for in-patient and out-patient care.

Education There are two State High Schools, four State

Middle Schools, 16 State Primary Schools, with a total

of approximately 6,000 school children enrolled.

Transport and Communication Although five villages are located close to

the highway that runs from Nyaungbingyi to

Yinmarbin, access to most of the villages covered

by the health care program is by unpaved tracks.

Today, all villages are accessible year-round

with four-wheel-drive vehicles. The government

constructed bridge at the Yama Stream is used

to access the six villages located on the western

bank of the stream. Mine Town has the only

telephone system in the area. To help facilitate

service delivery, one Jeep vehicle and two bicycles

were provided to the staff of the Philanthropic

Program.

Sr. No Name of disease 1999 2000 2001 2002 2003 2004 2005 2006 2007 Remarks

1 Influenza 137 368 645 999 1399 1452 2481 2094 2339

2 Conjuntivitis 61 56 55 152 520 173 224 277 116

3 Hypertension 80 78 38 107 167 181 146 101 65

4 Dysentery 81 70 54 92 140 182 178 218 54

5 Dog bite 25 24 25 59 50 36 27 21 36

6 Malaria 26 15 18 41 34 18 24 35 21 Imported

7 Viral Hepatitis 9 7 10 25 22 4 18 18 4

8 Tuberculosis 4 6 6 14 24 13 21 10 1

9 Snake bite 11 6 6 12 9 11 9 7 15

10 Diarrhea 93 75 59 43 7 1 0 0 21

MINE TOWN HOSPITAL STATISTICSTen Top Leading Yearly Special Surveillance Diseases ( 1999 to 2007 )

2002 59 6 16 22 103 109 212 197 480 23 700 818 1518 40 56 96

2003 98 4 25 23 150 52 202 330 797 137 1264 1972 3236 61 90 151

2004 121 3 15 31 170 74 244 366 939 205 1510 2382 3892 83 117 200

2005 117 2 22 33 174 87 261 351 960 168 1479 2439 3918 84 175 259

2006 120 4 23 38 185 57 242 384 1352 245 1981 1754 3735 82 127 209

2007 120 4 23 38 185 57 242 384 1352 245 1981 1754 3735 82 127 209

Total 515 19 101 147 782 379 1161 1628 4528 778 6934 9365 16299 350 565 915


Philanthropic Program, Ivanhoe Mines (Community health care support for residents within a five-mile radius of the S&K Copper Project)

Care, Education &Clean Water The principal mission of the Ivanhoe Mines

Philanthropic Program is to upgrade community

health and living standards for families within a

five-mile radius of the S&K Copper Mine.

Since its inception in 2002, the program

has provided free medical treatment and early

hospital care to pregnant women and children

under five years. It also provides health education

and other forms of direct assistance, including

helping people to build fly-proof latrines and

secure supplies of safe drinking water.

The program was developed and implemented

by IMHL Management, MICCL Management and

YIC staff of Mine Town hospital. A decision was

made in 2006 to expand the very successful

program. Effective January 2007 the Ivanhoe

Philanthropic Program will begin providing

Extended Health Care services, including

emergency medical treatment, to all people living

within the service area.

Services to 25,000 People The service area covers 26 villages and the

Mine Town community. There are 4,418 houses

for a total population of approximately 25,000

including 2600 people under the age of five (10.5%

of total population). The actual numbers fluctuate

slightly due to MICCL’s occasional and variable

requirements for casual workers who sometimes

relocate from neighboring villages.

Mine Town & Employees Population

Sr. No. Departments Population

1 MICCL Employee-Permanent 571

2 MICCL Employee-Seconded 192

Sub-Total 763

3 ME-1 Employee 37

4 Mine Town Community 2,140

TOTAL 2,940

Year Out-Patient Treated In-Patient Treated

1999 8712 353

2000 13592 351

2001 18005 459

2002 25023 571

2003 30417 470

2004 33611 494

2005 38579 519

2006 36548 456

2007 32492 500

Hospital Statistics


diseases and in the upgrading of the community’s

standard of living. Assessments of drinking water

resources in the area are conducted and the supply

of safe drinking water is improved as necessary.

Supporting Healthier Communities The Philanthropic Program’s health-care

activities are very productive and beneficial.

The health-care program is helping children and

adults in communities around the mine to live

in healthier and higher-quality environments

through measures that include the construction

and use of safer, fly-proof latrines, increased

provision and use of safe drinking water, early

referrals and hospital care.

Extended Health Care Service Starting from 1st January 2007, according

to the decision made by IMHL and Philanthropic

Program, Ivanhoe Mines we have extended the

Health Care Services given to the five-mile-radius

area.

Previously health care was given to only

those under 5-year children and pregnant women

but starting from the 1st.January 2007 we have

included Emergency medical treatment to all the

people living in this area. Emergency Medical

treatment means all the persons living in this

area regardless of age and sex can come to the

hospital 24 hours a day with diseases such as

acute attack of Bronchial Asthma, heart diseases,

acute abdominal pain, accidents, snake bites and

dog bites etc....

We have also increased the Medical staff

to cope with 24 hours Extended Emergency care.

Previously from two public health nurses and a

driver to now one doctor one public health nurse,

one hospital nurse, and two hospital nurse aids

and one driver.

The public health nurse and driver with a four

wheel drive jeep still travel to the nearby villages

to give health education and environmental

sanitation.

Service Activities In addition to the monthly group health

seminars held at the Mine Town State High

School, the health care staff members travel

to villages and hold health education talks at

the local schools and villages elders’ houses.

They work with government health personnel

during clinic days, during the Universal Child

Immunization Days, during the Sub-National

Immunization Days for Polio Eradication., during

the Filarial Program Days and during the Sub-

National Immunization Days for eradication

of Measles. In the villages, staff visits every

pregnant woman and each sick child under the

age of five, giving them individual health care

and health education. They visit schools and

houses to inspect sanitation and personal hygiene

practices. Toilets and supplies of drinking water

also are inspected.

As part of the nutrition promotion program,

staff have been monitoring the weight of children

under the age of three in three villages each

month since 2003.

Staff members also work with the Basic

Health Workers and hold joint group-health

education talks.

Safe drinking water The use of safe drinking water is vital in

the prevention and control of communicable


Environment

Environmental Management System The Environmental Management System

(EMS) employed by the S&K Project records and

monitors compliance with stated environmental

policies and objectives. This compliance has been

demonstrated through MICCL’s Societe Generale de

Surveillance’s (SGS) re-certification to ISO 14001.

The current EMS requires MICCL to establish

environmental plans and to continuously monitor

the environmental impact of the operations.

Four main environmental issues have

been identified at the S&K project:

1. Acid Rock Drainage (possibly released from

mine-pit walls and waste dumps).

2. Dangerous goods (hydrocarbon products,

sulphuric acid and process reagents waste).

3. Land disturbance (land disturbed by extensive

operations).

4. Non-process waste (including rubbish, paper

and plastics, rubber and batteries).

• An Environment Management Program has

been developed to control the environmental

issues identified above. The program is being

actively monitored for potential environmental

impacts.

• Results are reviewed for any trends, findings

are reported and corrective measures are

implemented, if required.

• Detailed Environmental Control Procedures

have been developed and implemented.

• An Environmental Emergency Response

Plan has been established and practiced and

basic training is given to employees of all

departments.

• A preliminar y Environmental Impact

Assessment is conducted for new MICCL

projects.

• A technology transfer program has been

developed and environmental awareness

training is on going on the site.

• All employees are trained to respond quickly

and effectively to environmental impacts and

prompt action to all environmental incidents

will continue throughout the life of the

operation.

• All environmental documents are of high

quality. Records are well stored, maintained

and are easily accessible. Documents are

reviewed and updated to ensure continuous

improvement.


diseases and in the upgrading of the community’s

standard of living. Assessments of drinking water

resources in the area are conducted and the supply

of safe drinking water is improved as necessary.

Supporting Healthier Communities The Philanthropic Program’s health-care

activities are very productive and beneficial.

The health-care program is helping children and

adults in communities around the mine to live

in healthier and higher-quality environments

through measures that include the construction

and use of safer, fly-proof latrines, increased

provision and use of safe drinking water, early

referrals and hospital care.

Extended Health Care Service Starting from 1st January 2007, according

to the decision made by IMHL and Philanthropic

Program, Ivanhoe Mines we have extended the

Health Care Services given to the five-mile-radius

area.

Previously health care was given to only

those under 5-year children and pregnant women

but starting from the 1st.January 2007 we have

included Emergency medical treatment to all the

people living in this area. Emergency Medical

treatment means all the persons living in this

area regardless of age and sex can come to the

hospital 24 hours a day with diseases such as

acute attack of Bronchial Asthma, heart diseases,

acute abdominal pain, accidents, snake bites and

dog bites etc....

We have also increased the Medical staff

to cope with 24 hours Extended Emergency care.

Previously from two public health nurses and a

driver to now one doctor one public health nurse,

one hospital nurse, and two hospital nurse aids

and one driver.

The public health nurse and driver with a four

wheel drive jeep still travel to the nearby villages

to give health education and environmental

sanitation.

Service Activities In addition to the monthly group health

seminars held at the Mine Town State High

School, the health care staff members travel

to villages and hold health education talks at

the local schools and villages elders’ houses.

They work with government health personnel

during clinic days, during the Universal Child

Immunization Days, during the Sub-National

Immunization Days for Polio Eradication., during

the Filarial Program Days and during the Sub-

National Immunization Days for eradication

of Measles. In the villages, staff visits every

pregnant woman and each sick child under the

age of five, giving them individual health care

and health education. They visit schools and

houses to inspect sanitation and personal hygiene

practices. Toilets and supplies of drinking water

also are inspected.

As part of the nutrition promotion program,

staff have been monitoring the weight of children

under the age of three in three villages each

month since 2003.

Staff members also work with the Basic

Health Workers and hold joint group-health

education talks.

Safe drinking water The use of safe drinking water is vital in

the prevention and control of communicable

To achieve its status as a world-class mine, the S&K Project has monitored the effectiveness of its Environmental Management System by having its performance audited regularly. The SGS audit team conducted an audit of the MICCL operation in June 2007. On 4th June 2007 MICCL voluntarily requested to suspend the ISO 14001 Environmental Management System certificate. This was in response to identifying changes in monitored levels from water sampling through the data collection process carried out at the minesite and the wish to ensure that an adequate


Compliance

Minor Non-Conformance for Year 2007Audit Issue

The information relating to “ danger points” as identified on Work Permits are not completed as required and not all “precautions” are being noted apart from PPE.

It was found that Competency Assessments were not being completed for all staff as required.

It was found that the methodology of ranking risks (eg. Risk assessment at task level) did not always match that identified in the DMP, nor were the Risk Action Plans being developed in accordance to the risk ranking given.

It was found that SP02 Hazard Identification, Risk Assessment and Control procedure did not adequately identify when a Risk Action Plan is to be raised and still refers to Hazard Action Plans. There is also no mention of conducting the Risk Assessment by Task Level as part of this process.

The system has been unable to provide adequate evidence that the safety & environmental meetings are being conducted weekly as required. Also it cannot show that all available personnel are attending these.

Action PlanDanger points identified on Work Permit will be reviewed to get complete requirements and all precautions also will be noted on Work Permit Form.

All staff will be conducted with Competency Assessments within time frame stated in DMP.

The methodology of ranking risks will be reviewed and revised to match as identified in the DMP, and Action Plans also will be developed in accordance to the risk ranking.

SP-02 has to be reviewed to identify the adequate Hazard Identification, Risk Assessment & Control Procedure and to revise the conducting between Risk Action Plan and Risk Assessment by Task Level.

Training has to be developed to conduct the weekly meeting regularly to make sure all available personnel are attending these meeting and to record the meeting minutes correctly to provide adequate evidence of conducting safety & environmental meeting. Compliance schedules must be conducted to match with meeting records.

management plan could be developed and implemented to address this issue effectively.

The management plan developed consisted of both short and long term corrective and preventive actions. To assist in this process MICCL sought external expertise, specifically in hydrogeology. Extensive work was carried out in relation to mapping the hydrology of the site, examination of existing boreholes and the monitoring regime, and soil sampling. From these studies, remedial action was taken during the next six months to address the identified issues.

In November 2007 an external audit was conducted by SGS to determine the effectiveness of these actions. The ISO 14001: 2004 Environmental Management System Certificate was reinstated by the SGS Accreditation Body on 11th December 2007. In between the SGS audits, trained MICCL personnel were responsible for completing internal audits on a quarterly basis. Four minor non-conformances and ( 44 ) observations from the June 2007, SGS surveillance audit were reviewed and corrected for the November surveillance audit. One minor non-conformance and ( 71) observations raised in the November 2007 SGS surveillance audit have been corrected.


Environmental Incidents 2007 Date Incident Actions

22-1-07

22-2-07

24-3-07

4-4-07

14-4-07

12-5-07

1-6-07

22-6-07

24-6-07

25-6-07

28-6-07

Shoulder joint of Ø450mm discharge pipe from Fine Screening Plant was loosen out and spillage spread on the road.

Sealing pipe of Booster pump was loosed out at Pad 1 cell 12 and solution spread out the outside bund areas.

The solution pooled between the road and Cell 22 bund, which can occur the potential soil contamination to outside area.

Fresh ore about 1,500 tonnes was stockpiled outside area without bund near pilot plant heap cell and soil contamination can be occurred there.

The Ø200mm pipeline irrigating to High Grade Cell 2 was burst out from the pipeline crack.

Due to heavy rain, ILS pond level was coming up and flooded, and the result caused PLS pond bund broken off.

The solution in Silt Trap pond located near Road 2 was noticed contaminated.

Due to heavy rain, containment solution from High Grade Cell 1 caused outpouring onto the access road beside fine tailing storage facility Dam-1.

Ø450mm delivery pipe of Cyclone over flow pump was caused crack-damage about 3 ft near the Fine Plant pond.

During operation Ø450mm cyclone overflow pipeline was broken out at butt-welded joint near the Fine Plant pond.

While Tele-handler (TH-83) machine was parking at Cathode Copper storage yard, transmission oil leaked to the ground and spread out on the ground surface.

Contained the solution and cleaned up spillage on the road of Dam 4 area. Constructed the windrow along the pipeline for the prevention of spillage spreading.

Immediately stopped the pump and closed the delivery pipeline valve and cleaned out the con-taminated solution and neutralized with soda ash.

The solution was contained with clay soil not to spread further down. The contaminated soil was cleaned up and sent back to Pad 2 Cell 22.

These ore were reclaimed by excavator and fed back them onto the heap cells.

The contaminated soil was cleaned up and neutralized with soda ash.

PLS broken bund was blocked with sand bags and solution was pumped out to storm water pond.

All the contaminated solution was contained in the sump. Contaminated solution was pumped out to Storm water pond.

Cleaned out the contaminated soil and neutralized with soda ash. Then covered up with red earth.

Contained the solution by making bund using 950F loader. Removed out the contaminated solution.

Immediately stopped the operation and contained the solution with bund by 950F loader. Cleaned up the soil by 950F loader. Covered up with red soil.

All the leaked transmission oil was contained in the sand bulk. The oily wetted sand and red earth were dug out and disposed of them at bioremediation pad. HDPE tray with sawdust / sand was placed under the machine.

Environmental-incident reporting is required to identify areas for improvement and to track progress on the treatment of an area following an incident. Three moderate-risk incidents and 24 low-risk incidents occurred during 2007, most of which were spillages or leakages. The majority of the incidents were the result either of failure in pipeline joints or leakage from pipe lines. All incidents were reported and have been corrected. Three moderate-risk environmental incidents

were contaminated solution leaked from shoulder joint of Fines Screening Plant discharge pipe in January, PLS pond bund broken due to heavy rain in May and contaminated solution leaked from cyclone overflow pipe line due to crack of the pipe in Fines Screening Plant in June 2007. To improve environmental management and to reduce environmental incidents, employees are trained to identify and report all incidents, however minor they may be.

Incidents

To achieve its status as a world-class mine, the S&K Project has monitored the effectiveness of its Environmental Management System by having its performance audited regularly. The SGS audit team conducted an audit of the MICCL operation in June 2007. On 4th June 2007 MICCL voluntarily requested to suspend the ISO 14001 Environmental Management System certificate. This was in response to identifying changes in monitored levels from water sampling through the data collection process carried out at the minesite and the wish to ensure that an adequate


Compliance

Minor Non-Conformance for Year 2007Audit Issue

The information relating to “ danger points” as identified on Work Permits are not completed as required and not all “precautions” are being noted apart from PPE.

It was found that Competency Assessments were not being completed for all staff as required.

It was found that the methodology of ranking risks (eg. Risk assessment at task level) did not always match that identified in the DMP, nor were the Risk Action Plans being developed in accordance to the risk ranking given.

It was found that SP02 Hazard Identification, Risk Assessment and Control procedure did not adequately identify when a Risk Action Plan is to be raised and still refers to Hazard Action Plans. There is also no mention of conducting the Risk Assessment by Task Level as part of this process.

The system has been unable to provide adequate evidence that the safety & environmental meetings are being conducted weekly as required. Also it cannot show that all available personnel are attending these.

Action PlanDanger points identified on Work Permit will be reviewed to get complete requirements and all precautions also will be noted on Work Permit Form.

All staff will be conducted with Competency Assessments within time frame stated in DMP.

The methodology of ranking risks will be reviewed and revised to match as identified in the DMP, and Action Plans also will be developed in accordance to the risk ranking.

SP-02 has to be reviewed to identify the adequate Hazard Identification, Risk Assessment & Control Procedure and to revise the conducting between Risk Action Plan and Risk Assessment by Task Level.

Training has to be developed to conduct the weekly meeting regularly to make sure all available personnel are attending these meeting and to record the meeting minutes correctly to provide adequate evidence of conducting safety & environmental meeting. Compliance schedules must be conducted to match with meeting records.

management plan could be developed and implemented to address this issue effectively.

The management plan developed consisted of both short and long term corrective and preventive actions. To assist in this process MICCL sought external expertise, specifically in hydrogeology. Extensive work was carried out in relation to mapping the hydrology of the site, examination of existing boreholes and the monitoring regime, and soil sampling. From these studies, remedial action was taken during the next six months to address the identified issues.

In November 2007 an external audit was conducted by SGS to determine the effectiveness of these actions. The ISO 14001: 2004 Environmental Management System Certificate was reinstated by the SGS Accreditation Body on 11th December 2007. In between the SGS audits, trained MICCL personnel were responsible for completing internal audits on a quarterly basis. Four minor non-conformances and ( 44 ) observations from the June 2007, SGS surveillance audit were reviewed and corrected for the November surveillance audit. One minor non-conformance and ( 71) observations raised in the November 2007 SGS surveillance audit have been corrected.


13-7-07

17-7-07

23-7-07

24-7-07

11-8-07

13-9-07

22-9-07

6-10-07

16-10-07

18-10-07

24-10-07

27-10-07

19-11-07

22-11-07

4-12-07

8-12-07

While skimming the organic layer in the Raffinate & Pre-settler ponds using air diaphragm pump, the delivery pipe was loosened out and the solution splashed out to the ground.

At Pad 2 Cell 18, the Glen sealing of delivery pump was leaked and the solution spread out around the pump area on ground surface.

The raffinate solution was leaked from the flange of delivery pump at Pad 1 Cell 4.

Out let pipeline of AGL plant discharged to Tailing Dam 4 caused a leak under the road culvert near Process office.

It was occurred a solution leak from steel welded joint of Ø 350mm pipeline while pumping the ILS solution to Fine Plant.

An acid leak was occurred from Ø4”steel pipe joint while unloading the acid from Isotainer.

A HSD oil leak was occurred on the ground near the HSD storage tank while transferring HSD oil into the fuel tank of Truck.

The packing seal of Booster pump at Pad 2 Cell 18 was leaked and the solution spread on ground surface.

HG Plant drainage solution sump was over flooded due to heavy rain.

Contaminated solution was found under the access road at the back of Pad 2 Cell 22A

At Pad 1 Cell 15 & 16, a leak was occurred from PE delivery bend pipe of Booster pump. The leaked solution spread on ground.

Due to the booster pump failure at butt-welded joint, the contaminated solution spilled out on the ground surface at Pad 1 Cell 13.

The diluent leaked out from a pipe joint while pumping into the circuit.

A solution leak was occurred from butt-welded joint of delivery pipeline at Pad 1 Cell 13 Booster pump.

The contaminated solution was leakage from Ø110mm bend butt-welded joint. The contaminated solution was spread out to Pad 3 office toilet area.

The delivery pipe from Booster pump at Pad 1 cell 13 was cut off and the solution flowed backward from heap to pump area.

Contaminated soil was neutralized with soda ash and cleaned out. Covered the spilled area with red soil.

All the leaked solution was contained in the sand bulk. Contaminated solution was cleaned out and neutralized with soda ash.

Stopped pump operation and spread with soda ash on the contaminated area not to impact the environment.

The solution was gathered in the silt trap and cleaned out on the road. Replaced the damaged pipe with new one and placed it under new road culvert.

The solution was neutralized with soda ash and cleaned out Covered the contaminated soil with red soil.

Washed the acid solution and drained out to storm water pond. Spread soda ash powder on the spilled area.

HSD spillage was covered with sand and cleaned up.

Spread soda ash on spillage and cleaned out it. Repaired the pump packing seal.

Cleaned out the over flooded solution at the junction of Road 2 and Process Office Road.

Clean out the contaminated soil by 950F loader. Spread soda ash on contaminated ground to be neutralized. A trench line behind Cell 22 A was dug and lined with clay soil to collect solution and to pump back into the operation circuit.

Replaced the PE bend and neutralized the contaminated soil with soda ash.

Cleaned out the contaminated soil and neutralized with soda ash. Covered the contaminated area with red soil.

Cleaned up the spilled diluent along the concrete channel. The contaminated soil was disposed of at Bio-remediation pad.

Neutralized the leaked solution with soda ash and repaired the welded joint.

The contaminated soil was cleaned out and some solution was neutralized with sod-ash.

Stopped the pump and covered the solution spreading area with red earth. Removed out them by 950-loader.


Environmental Incidents (2007)

Environmental Incidents (1999-2007)



13-7-07

17-7-07

23-7-07

24-7-07

11-8-07

13-9-07

22-9-07

6-10-07

16-10-07

18-10-07

24-10-07

27-10-07

19-11-07

22-11-07

4-12-07

8-12-07

While skimming the organic layer in the Raffinate & Pre-settler ponds using air diaphragm pump, the delivery pipe was loosened out and the solution splashed out to the ground.

At Pad 2 Cell 18, the Glen sealing of delivery pump was leaked and the solution spread out around the pump area on ground surface.

The raffinate solution was leaked from the flange of delivery pump at Pad 1 Cell 4.

Out let pipeline of AGL plant discharged to Tailing Dam 4 caused a leak under the road culvert near Process office.

It was occurred a solution leak from steel welded joint of Ø 350mm pipeline while pumping the ILS solution to Fine Plant.

An acid leak was occurred from Ø4”steel pipe joint while unloading the acid from Isotainer.

A HSD oil leak was occurred on the ground near the HSD storage tank while transferring HSD oil into the fuel tank of Truck.

The packing seal of Booster pump at Pad 2 Cell 18 was leaked and the solution spread on ground surface.

HG Plant drainage solution sump was over flooded due to heavy rain.

Contaminated solution was found under the access road at the back of Pad 2 Cell 22A

At Pad 1 Cell 15 & 16, a leak was occurred from PE delivery bend pipe of Booster pump. The leaked solution spread on ground.

Due to the booster pump failure at butt-welded joint, the contaminated solution spilled out on the ground surface at Pad 1 Cell 13.

The diluent leaked out from a pipe joint while pumping into the circuit.

A solution leak was occurred from butt-welded joint of delivery pipeline at Pad 1 Cell 13 Booster pump.

The contaminated solution was leakage from Ø110mm bend butt-welded joint. The contaminated solution was spread out to Pad 3 office toilet area.

The delivery pipe from Booster pump at Pad 1 cell 13 was cut off and the solution flowed backward from heap to pump area.

Contaminated soil was neutralized with soda ash and cleaned out. Covered the spilled area with red soil.

All the leaked solution was contained in the sand bulk. Contaminated solution was cleaned out and neutralized with soda ash.

Stopped pump operation and spread with soda ash on the contaminated area not to impact the environment.

The solution was gathered in the silt trap and cleaned out on the road. Replaced the damaged pipe with new one and placed it under new road culvert.

The solution was neutralized with soda ash and cleaned out Covered the contaminated soil with red soil.

Washed the acid solution and drained out to storm water pond. Spread soda ash powder on the spilled area.

HSD spillage was covered with sand and cleaned up.

Spread soda ash on spillage and cleaned out it. Repaired the pump packing seal.

Cleaned out the over flooded solution at the junction of Road 2 and Process Office Road.

Clean out the contaminated soil by 950F loader. Spread soda ash on contaminated ground to be neutralized. A trench line behind Cell 22 A was dug and lined with clay soil to collect solution and to pump back into the operation circuit.

Replaced the PE bend and neutralized the contaminated soil with soda ash.

Cleaned out the contaminated soil and neutralized with soda ash. Covered the contaminated area with red soil.

Cleaned up the spilled diluent along the concrete channel. The contaminated soil was disposed of at Bio-remediation pad.

Neutralized the leaked solution with soda ash and repaired the welded joint.

The contaminated soil was cleaned out and some solution was neutralized with sod-ash.

Stopped the pump and covered the solution spreading area with red earth. Removed out them by 950-loader.



Land MICCL’s leased area totals 2,300 hectares,

and is comprised of vegetated land, hills and

pits left by previous mining activities. Mining

operations and the processing of ore inevitably

change the natural landscape. MICCL has the

responsibility to minimize land disturbance

and to rehabilitate the areas inevitably affected.

A rolling five-year program of progressive

rehabilitation and revegetation of the mine site

that was initiated in 2001 has made excellent

progress and continues in effect.

Land disturbanceFive major classes of land disturbances, resulting

from previous operations that preceded the

MICCL joint venture and from mining of

Sabetaung and Sabetaung South Pits, have been

identified at the S&K Project. They are:

• Old tailings dams

• Open pits

• Heap-leach areas

• Waste-rock dumps

• Process plants, permanent buildings and access

roads

The eight main areas of land disturbance are

summarized in the table below.

Location Disturbed Area (ha)

Old tailings dams 153

Sabetaung Pit 66

Sabetaung South Pit 20

Waste Rock Dumps 95

Heap Leach Areas 201

Solution drains & ponds 23

Storm-Water Pond 37

Overflow Pond 13

Total 610

Permanent buildings, access roads and

parking areas are not included in this table. To

control land disturbance on the S&K Project, a

permit system is used to ensure personnel and

departments understand that the areas to be

disturbed shall have minimal environmental

impacts. Some major projects were initiated in

2007. The 25 environmental-clearance permits

granted were for works that included construction

of a new steel-ball storage shed at the AL Plant,

a new leach pad between mining-goline and the

Pad 3 office and three new core-shed buildings.

About 2.3 hectares with approximately 2,240


previously planted trees were affected by new

project activities, mainly for developing the Pad

extension job beside Cell 16, a short-cut access

way to Dam 4 from Road 1 and Dam 5 extension

job. Areas freed by roads no longer in use are being

rehabilitated.

Impacted-site Management In 2007, nine sites are recorded as disturbed

and as either contaminated, impacted or affected.

These locations will be closed as part of the Mine

Closure Plan, which will rehabilitate all MICCL

sites detected to date. The old flotation plant and

limestone waste stockpile are among several sites

used by previous mining operations and listed

as contaminated. MICCL is not responsible for

remediation of pre-existing sites. Sabetaung Pit,

Sabetaung South Pit and the heap-leach pads are

disturbed sites that remain in operation. Seven sites

previously listed as disturbed already have been

closed and rehabilitated. MICCL’s environmental

site management program references standards

set by the National Environment Protection

Council of Australia.

Rehabilitation and Revegetation MICCL is responsible for restoring the

natural landscape and for rehabilitating the

area during and after mining operations.

Minimizat ion of land d isturbances and

progressive rehabilitation has been carried out

in the following areas of the mine site:

• Land disturbed by previous mining activities.

• Decommissioned areas.

• Tailings-spills reclaimed area from previous

mining.

• Abandoned waste dumps from previous

mining

• Areas where no future mining activities are

expected.

The company has developed a rolling five-

year rehabilitation plan to revegetate areas

disturbed by previous mining activities and areas

where no future mining activities are expected.

The five-year work plan is carried out through

MICCL’s annual rehabilitation program. This

ensures that the amount of disturbed area is kept

to a minimum at all times. The rehabilitation

program has achieved excellent results. A total

of 311 hectares have been rehabilitated since

1999. The goal of the 2007 plan was to plant

35,000 trees in 32 hectares. In fact, approximately

36,600 trees were planted and 33.29 hectares were

rehabilitated in 2007. This total included 18.30

hectares in rehabilitation blocks at the Core Shed,

near the Camp gate, and the Dam 4 tailing-pond

compound, where 20,130 trees were planted; 9.02

hectares at Waste Dump areas of Laynyin Taung

north site, at the side slope of Sabetaung pit 595

level and along the berm of Sabetaung South pit,

with 9,923 trees; and 5.97 hectares at both sides of

the new cargo road, around the sewage pond and at

the compound area of Pump Station 3, with 6,577

trees planted. 8.9 hectares of assorted native

seeds scattered at the various areas disturbed by

MICCL activities. In 2008, the S&K Project plans

to rehabilitate 33.3 hectares of disturbed land by

planting 36,000 native trees of assorted species,

plus an additional 1,000 trees as replacement for

vanished trees from previous year rehabilitated

area.


Land MICCL’s leased area totals 2,300 hectares,

and is comprised of vegetated land, hills and

pits left by previous mining activities. Mining

operations and the processing of ore inevitably

change the natural landscape. MICCL has the

responsibility to minimize land disturbance

and to rehabilitate the areas inevitably affected.

A rolling five-year program of progressive

rehabilitation and revegetation of the mine site

that was initiated in 2001 has made excellent

progress and continues in effect.

Land disturbanceFive major classes of land disturbances, resulting

from previous operations that preceded the

MICCL joint venture and from mining of

Sabetaung and Sabetaung South Pits, have been

identified at the S&K Project. They are:

• Old tailings dams

• Open pits

• Heap-leach areas

• Waste-rock dumps

• Process plants, permanent buildings and access

roads

The eight main areas of land disturbance are

summarized in the table below.

Location Disturbed Area (ha)

Old tailings dams 153

Sabetaung Pit 66

Sabetaung South Pit 20

Waste Rock Dumps 95

Heap Leach Areas 201

Solution drains & ponds 23

Storm-Water Pond 37

Overflow Pond 13

Total 610

Permanent buildings, access roads and

parking areas are not included in this table. To

control land disturbance on the S&K Project, a

permit system is used to ensure personnel and

departments understand that the areas to be

disturbed shall have minimal environmental

impacts. Some major projects were initiated in

2007. The 25 environmental-clearance permits

granted were for works that included construction

of a new steel-ball storage shed at the AL Plant,

a new leach pad between mining-goline and the

Pad 3 office and three new core-shed buildings.

About 2.3 hectares with approximately 2,240


WaterSurface water The MICCL S&K Project is located in a dry-zone area with a high rate of evaporation and medium levels of rainfall. Total rainfall for 2007 was 1,032 mm that is higher than the previous year of 765mm. Drains normally are dry seven months of the year; they collect and channel run-off during heavy rainfalls. Fresh water for the minesite operation is supplied from the Chindwin River. Three pumping stations were installed at the beginning of the project to supply water for the operation and for domestic use. The accompanying graph shows the volumes of water from Chindwin River used by MICCL over the last three years.

The few surface-water bodies that exist in the project area are summarized as follows:Wetlands = Control fresh water runoff in the rainy season and maintains wetland ecosystem.Ponds = Series of constructed control ponds to collect contaminated run-off from active operating areas. Process solution collection ponds are monitored weekly to prevent contamination to the surroundings, Chindwin River or the Yama Stream.

Monthly Local Rainfall and EvaporationYear 2004-2006

2006/Power & Water consumption Per Lbs of Cathode Copper


Ground Water A shallow, semi-unconfined aquifer lies

beneath the mining operations area of the S&K

Project.

The water level of this aquifer varies with

the wet and dry seasons. MICCL has installed 95

boreholes around the S&K Project to monitor the

groundwater quality. Ground water is observed

10 metres below the surface in boreholes. Excess

aquifer fresh water from the mine pit is pumped

out into a silt trap pond and then released into the

Yama Stream. The water quality is monitored on a

regular basis.

Water-quality sampling was completed

every two months to measure the impacts caused

by mining and process activities. Any occurrence

of low pH was checked and corrective action was

taken immediately.

Drainage management Drains are maintained regularly to avoid

flooding in the mine site and to control overflows

from the storm-water and overflow ponds.

Drains and containment bunds are constructed

according to the development of the operation. An

operational storm water management strategy was

developed for the 2007 rain season and is being

updated for year 2008.

The following graph shows the monitoring results at sensitive spots.

Yearly Comparison of pH at Vulnerable SpotsStandard Level of pH 6 to 9

Monitoring Site SW 220 (Outlet to Yama Stream)Monitoring Site SW 110 (Upstream of discharge point at Yama)Monitoring Site PDYC (Downstream of discharge point at Yama)Monitoring Site SW 111 (Confluence of Yama Stream and Chindwin River)Monitoring Site SW 101 (Upstream of Yama-Chindwin confluence)Monitoring Site SW 102 (Downstream of Yama-Chindwin confluence)


WaterSurface water The MICCL S&K Project is located in a dry-zone area with a high rate of evaporation and medium levels of rainfall. Total rainfall for 2007 was 1,032 mm that is higher than the previous year of 765mm. Drains normally are dry seven months of the year; they collect and channel run-off during heavy rainfalls. Fresh water for the minesite operation is supplied from the Chindwin River. Three pumping stations were installed at the beginning of the project to supply water for the operation and for domestic use. The accompanying graph shows the volumes of water from Chindwin River used by MICCL over the last three years.

The few surface-water bodies that exist in the project area are summarized as follows:Wetlands = Control fresh water runoff in the rainy season and maintains wetland ecosystem.Ponds = Series of constructed control ponds to collect contaminated run-off from active operating areas. Process solution collection ponds are monitored weekly to prevent contamination to the surroundings, Chindwin River or the Yama Stream.

Monthly Local Rainfall and EvaporationYear 2004-2006

2006/Power & Water consumption Per Lbs of Cathode Copper


AirDust-emission controls Mining operations generate dust on roads and in crushing, conveying and stacking areas. The spraying of water controls dust from mine pit, primary crusher, crushed-ore stockpile and haul roads. Twenty-seven dust-monitoring stations are installed in major dust-emitting areas and recorded levels are reviewed monthly. Grassing and re-vegetation is employed on exposed soil around the minesite. Results have been variable because dust is caused by different sources and different locations and results are mostly seasonal. For comparison, results at 27 spots indicate that dustfall tends to lessen in August- September, coinciding with the start of the rain season. The main source of dust is the ore crushing and conveying system, particularly during the dry months of December to April. The heaviest dustfall was recorded in the area nearby the Primary and Secondary Crushers. Point DM-5 (West of Secondary Crusher) recorded the highest dustfall during January, February and March. The dustfall at the remaining spots indicates acceptable amounts in all seasons. Elevated dust fall levels were also apparent in areas adjacent to the access roads and haul roads in dry season.

On-Site Dust Fall at 27 Locations


Acid-Mist Monitoring The processes of Copper heap leaching and electrowinning emit acid mist into the atmosphere. Acid-mist emission is monitored monthly around the heaps and daily in the tankhouses of the SX-EW plant. Results show that acid-mist levels are well below the allowable exposure level.

A special six-month study to monitor the possible effect of tankhouse acid mist in the surrounding area did not show appreciable/measurable effects. As part of that study, metal plates were installed to try and detect corrosion on a long-term basis.

Measured Acid Levels at Tankhouse A

Worker Exposure Standard for acid mist during 8 hours period - 1mg/m3 (260 ppb)


AirDust-emission controls Mining operations generate dust on roads and in crushing, conveying and stacking areas. The spraying of water controls dust from mine pit, primary crusher, crushed-ore stockpile and haul roads. Twenty-seven dust-monitoring stations are installed in major dust-emitting areas and recorded levels are reviewed monthly. Grassing and re-vegetation is employed on exposed soil around the minesite. Results have been variable because dust is caused by different sources and different locations and results are mostly seasonal. For comparison, results at 27 spots indicate that dustfall tends to lessen in August- September, coinciding with the start of the rain season. The main source of dust is the ore crushing and conveying system, particularly during the dry months of December to April. The heaviest dustfall was recorded in the area nearby the Primary and Secondary Crushers. Point DM-5 (West of Secondary Crusher) recorded the highest dustfall during January, February and March. The dustfall at the remaining spots indicates acceptable amounts in all seasons. Elevated dust fall levels were also apparent in areas adjacent to the access roads and haul roads in dry season.

On-Site Dust Fall at 27 Locations


Energy & Emissions The project has organized an energy

committee to control and reduce the use of

hydrocarbon fuel and the release of CO2 from

various operations. MICCL used 282,122 GJ of

electricity in 2007. Site power is provided by the

Kyunchaung gas-turbine generating station, which

also is connected to the national grid. The majority

of the energy is consumed in the electrowinning

tankhouses for depositing copper on the cathode

plates.

Energy Usage - Steady Consumption

Energy and Emission - Per l b of cathode copper produced

MICCL has increased the number of heap

leach cells and the height of the heaps increase as

new ore is placed on top of leached ore to create

a fresh cell. Therefore, increasingly additional

power for pumps is required on heap-leaching

operations.

Greenhouse gas emissions from site

operations were estimated at 120,017.78 tonnes

of CO2 equivalent for 2007.(TBA) .

CO2 Emission - A year-by-year comparison


Waste Three types of waste have been identified as being problematic, and requiring action during and

after mining operations. They are summarized as follows:

Waste rock = rock without or with only non-commercial copper content(ARD),

produced while mining process-grade ore for leaching.

Residue from leach heaps = ore depleted of copper after the leaching process.

Non-Process waste = paper and plastic waste, used tires, batteries, scrap iron and waste

oil.

Mining operations produce considerable

volume of waste or low-grade rock that must be

disposed of outside the operating areas. Waste

rock is classified as potentially acid-forming and

non-acid-forming. Potential acid-forming waste

rock contains oxidized or sulphide minerals that

are capable of producing an acid contaminant

(ARD) when exposed to air and water. This

material has impact on soil if it drains with runoff

to the environment and on water if it seeps into

underground water.

A long-term plan to control ARD was

developed and has since been implemented. The

potential ARD waste is managed by isolating it

from other sterile waste rock types, encapsulating

it with oxidized waste rock and then rehabilitating

it with a layer of soil with half-a-metre thickness

to eliminate ARD generation.

A standard operating procedure for classifying

and handling potential acid waste was developed

and practiced. A total of 6,838,671 tonnes of ARD

waste and 8,079,962 tonnes of leached waste were

produced in 2007.

General Waste Management strategies are as follows:

Waste Type Category Treatment

Waste Rock ARD Waste Isolate and encapsulate

Leached Cap Store for future use

Anode Sludge Lead sludge Transport to Namtu for

recycling.

Industrial Waste Iron scraps Sell to recyclers

Hazardous Waste Hydrocarbons & Acid Recycle/Reuse

Domestic Waste Paper & Plastics Landfill site

Liquid Waste Contaminated water Contained and recycle or

Evaporated.


Energy & Emissions The project has organized an energy

committee to control and reduce the use of

hydrocarbon fuel and the release of CO2 from

various operations. MICCL used 282,122 GJ of

electricity in 2007. Site power is provided by the

Kyunchaung gas-turbine generating station, which

also is connected to the national grid. The majority

of the energy is consumed in the electrowinning

tankhouses for depositing copper on the cathode

plates.

Energy Usage - Steady Consumption

Energy and Emission - Per l b of cathode copper produced

MICCL has increased the number of heap

leach cells and the height of the heaps increase as

new ore is placed on top of leached ore to create

a fresh cell. Therefore, increasingly additional

power for pumps is required on heap-leaching

operations.

Greenhouse gas emissions from site

operations were estimated at 120,017.78 tonnes

of CO2 equivalent for 2007.(TBA) .

CO2 Emission - A year-by-year comparison


Hazardous materials MICCL uses various kinds of products,

reagents and explosives in its production

processes.

Some are hazardous substances and control

procedures have been developed and implemented

to minimize the risk of handling such materials.

The more significant materials are:

• Diesel fuel

• Petrol

• Lubricant

• Sulphuric acid

• Diluent

• Solvent Extraction Reagent (Extractant)

• Ammonium nitrate (Explosive)

• Paints and thinner.

These substances may cause injuries or health

problems if their use is not controlled. MICCL has

issued general guidelines for handling and storing

Dangerous Goods. The guidelines include:

• Identifying the correct storage facility and

handling requirements for each product,

normally following the Material Safety Data

Sheet issued by the respective supplier.

• Ensuring containers are sealed prior to

transport, during storage and immediately

after use.

• Where bunds are used to store hazardous/

dangerous goods, the bund must be checked

(for water build-up).

• All containers must be clearly labelled.

• Drain valves for bunds must be kept

closed.

The following standard operating procedures

and emergency-response procedures have been

updated for handling dangerous goods:

• Control the product (isolate the valve).

• Contain the product (stop it from spreading).

• Clean up the product (collect and place it in a

container).


Hydrocarbon and Chemical Usage

Hydrocarbon and Chemical UsageJanuary to December 2007

Chemical Consumption in Blasting Operation


Hazardous materials MICCL uses various kinds of products,

reagents and explosives in its production

processes.

Some are hazardous substances and control

procedures have been developed and implemented

to minimize the risk of handling such materials.

The more significant materials are:

• Diesel fuel

• Petrol

• Lubricant

• Sulphuric acid

• Diluent

• Solvent Extraction Reagent (Extractant)

• Ammonium nitrate (Explosive)

• Paints and thinner.

These substances may cause injuries or health

problems if their use is not controlled. MICCL has

issued general guidelines for handling and storing

Dangerous Goods. The guidelines include:

• Identifying the correct storage facility and

handling requirements for each product,

normally following the Material Safety Data

Sheet issued by the respective supplier.

• Ensuring containers are sealed prior to

transport, during storage and immediately

after use.

• Where bunds are used to store hazardous/

dangerous goods, the bund must be checked

(for water build-up).

• All containers must be clearly labelled.

• Drain valves for bunds must be kept

closed.

The following standard operating procedures

and emergency-response procedures have been

updated for handling dangerous goods:

• Control the product (isolate the valve).

• Contain the product (stop it from spreading).

• Clean up the product (collect and place it in a

container).


Issues & ActionsAcid Rock Drainage (ARD) Mining operations produces, in addition

to inert waste, potential acid-forming waste

containing oxidized or sulphide minerals that are

capable of producing an acid contaminant (ARD

material) when exposed to air and water.

MICCL is committed to Zero Discharge

Policy and having control over acid rock drainage

(ARD) as per ARD Management Plan. Waste

dumps are designed and constructed lining with

clay and inert material on the sill, bunding with

clay and inert material around the dumps to

prevent from ground contamination. Potential

seepage water from the waste dumps will be

collected and contained in interception drains

dug along the toe of the waste dumps and pump

it back to the containment pond.

Clean Aquifer water from Sabetaung Pit

is collected in the North Sump and pumped to

the surface silt trap. Water quality is monitored

before releasing.

Contaminated water from the pit is pumped

into the Overflow Pond. Runoff released from

the process leach pad areas is contained in the

Storm-Water Pond and the excessive water will

be pumped into the tailings dam. It is recycled as

make-up water for the process in irrigating.

Water-quality management The Safety and Environmental Department

(SE) monitors the minesite water quality. Regional

and minesite surface water is monitored monthly.

Ground water is monitored on the mine site and

in the surrounding villages. Results are reported

monthly and corrective action is taken immediately

in those areas that are found to require attention.

An independent laboratory is employed to analyze

and check the samples annually.

Tailings reclamation Earlier mining activity that preceded the

formation of MICCL resulted in considerable

spills of tailings over 150 hectares of land east

of the present operations area, where artesanal

miners recover residual copper at subsistence

levels. Most of that area is under the control of

the local Myanmar authorities. MICCL assumed

responsibility to clear out the leftover tailings

spills in the leased area to achieve its ISO 14001

Certification and honoured its moral obligation

to help clean up part of the area outside the lease,

when permitted to do so. In 2006-2007, part of

the affected area along the Kyaukmyet Road and

in some lease areas was cleaned-up and reclaimed

with local contract workers: old tailings were sent

back to the Main Tailing Dam.


Community The MICCL community activities in the year 2007 demonstrated good relationship with the people who live around the operation area. MICCL also participated in activities that benefit the region such as maintaining the constructed road, assisting the repairing North Yama Bridge, Dam and water supply amenities.• Existing reserving in Phaungga village and

Tepingan village established by MICCL were checked and repaired to achieve more strength and more storage volume of water.

• Tube wells were installed at Yawthar village, Ngatesu villages Gondaw village, Dondaw village and Kangone village. Those tube wells were ensured to supply of water through out the year.

• 5 Miles Radius Health Care Program continued to advice or to educate personal hygiene, sanitation, safety awareness and environmental protection to the people who stayed in the villages. Health knowledge of villagers has improved.

• MICCL donated FEC 1000 to MES (Myanmar Engineering Society) to develop their activity of sharing the knowledge of the modern technology to the public.

• MICCL contributes to charitable organizations by donation FEC 400 to Salingyi Township to develop traditional cultural performance arts and to develop sport activities.

• MICCL provided FEC 5000 in repairing the Yama Bridge.

• MICCL sponsored entertainment for Thingyan water festival at mine town to enjoy not only all of the employees and families but also the people who live around the mine town.

• Focusing on the community affairs to achieve the good relation ship with the community within the operation area has been continued because people around mine town are our important resources.


Issues & ActionsAcid Rock Drainage (ARD) Mining operations produces, in addition

to inert waste, potential acid-forming waste

containing oxidized or sulphide minerals that are

capable of producing an acid contaminant (ARD

material) when exposed to air and water.

MICCL is committed to Zero Discharge

Policy and having control over acid rock drainage

(ARD) as per ARD Management Plan. Waste

dumps are designed and constructed lining with

clay and inert material on the sill, bunding with

clay and inert material around the dumps to

prevent from ground contamination. Potential

seepage water from the waste dumps will be

collected and contained in interception drains

dug along the toe of the waste dumps and pump

it back to the containment pond.

Clean Aquifer water from Sabetaung Pit

is collected in the North Sump and pumped to

the surface silt trap. Water quality is monitored

before releasing.

Contaminated water from the pit is pumped

into the Overflow Pond. Runoff released from

the process leach pad areas is contained in the

Storm-Water Pond and the excessive water will

be pumped into the tailings dam. It is recycled as

make-up water for the process in irrigating.

Water-quality management The Safety and Environmental Department

(SE) monitors the minesite water quality. Regional

and minesite surface water is monitored monthly.

Ground water is monitored on the mine site and

in the surrounding villages. Results are reported

monthly and corrective action is taken immediately

in those areas that are found to require attention.

An independent laboratory is employed to analyze

and check the samples annually.

Tailings reclamation Earlier mining activity that preceded the

formation of MICCL resulted in considerable

spills of tailings over 150 hectares of land east

of the present operations area, where artesanal

miners recover residual copper at subsistence

levels. Most of that area is under the control of

the local Myanmar authorities. MICCL assumed

responsibility to clear out the leftover tailings

spills in the leased area to achieve its ISO 14001

Certification and honoured its moral obligation

to help clean up part of the area outside the lease,

when permitted to do so. In 2006-2007, part of

the affected area along the Kyaukmyet Road and

in some lease areas was cleaned-up and reclaimed

with local contract workers: old tailings were sent

back to the Main Tailing Dam.


In this year 2007, new expansion designations for the Seventh Intake Trades Trainees are Heavy Equipment Mechanic and Heavy Equipment Welder as well as Mining Operator and totally twenty seven trainees for all Trades. In the training period, new recruits do the common trades courses such as English, Basic Computer Knowledge, Safety and Environment and Electrical Principle Course and after that they have chosen their related subjects. Furthermore, First Aid Training is also included.

That’s a new trade program and it lasts for twenty four months as same as the normal trades program ( Electrical Fitter Mechanic, Fitter and Machinist, Auto Electrician, Heavy Equipment Fitter and Process Operator trades) running by Technical Training. All the above programs include On Job Training in their related fields. Technical Training has opened Trades Training Classes since 2001 and there are a total of Seventh Intakes up to now.

The objective of Training Department is not only to provide the trainees basic knowledge, theories with practical, skills needed to work and but also assist the technical skills to existing technicians. Training program and systems are aimed at high quality world standard level.

Technical Training has nurtured ( 64 ) trainees who are now assigned as qualified Tradesmen at Mining and Maintenance Departments. They are the first five Intakes graduated from Technical Training’s practice-based training programs. All of them are well accepted as competent persons in their respective fields.

As for the existing employees, English Proficiency Courses and Computer Courses are opened for side wide and provided specific training courses mainly in maintenance areas as employee advancement training. A total of nine classes has been opened in 2007.

To keep our current status, World-Class Mining Operation, modern technologies expected to improve efficiency, reduce cost and save operational time and energy are really needed. So MICCL is fully committed to provide the comprehensive training program to assist each employee in maximizing their own potential.

The Trainees of Sixth and Seventh Intakes are continuing on their courses. One Hundred and Eleven Trainees are currently participating in the program.

Technical/Trades Training

Competency Training

Safety, Health & Environmental Report | 4746 | Safety, Health & Environmental Report

In this year 2007, new expansion designations for the Seventh Intake Trades Trainees are Heavy Equipment Mechanic and Heavy Equipment Welder as well as Mining Operator and totally twenty seven trainees for all Trades. In the training period, new recruits do the common trades courses such as English, Basic Computer Knowledge, Safety and Environment and Electrical Principle Course and after that they have chosen their related subjects. Furthermore, First Aid Training is also included.

That’s a new trade program and it lasts for twenty four months as same as the normal trades program ( Electrical Fitter Mechanic, Fitter and Machinist, Auto Electrician, Heavy Equipment Fitter and Process Operator trades) running by Technical Training. All the above programs include On Job Training in their related fields. Technical Training has opened Trades Training Classes since 2001 and there are a total of Seventh Intakes up to now.

The objective of Training Department is not only to provide the trainees basic knowledge, theories with practical, skills needed to work and but also assist the technical skills to existing technicians. Training program and systems are aimed at high quality world standard level.

Technical Training has nurtured ( 64 ) trainees who are now assigned as qualified Tradesmen at Mining and Maintenance Departments. They are the first five Intakes graduated from Technical Training’s practice-based training programs. All of them are well accepted as competent persons in their respective fields.

As for the existing employees, English Proficiency Courses and Computer Courses are opened for side wide and provided specific training courses mainly in maintenance areas as employee advancement training. A total of nine classes has been opened in 2007.

To keep our current status, World-Class Mining Operation, modern technologies expected to improve efficiency, reduce cost and save operational time and energy are really needed. So MICCL is fully committed to provide the comprehensive training program to assist each employee in maximizing their own potential.

The Trainees of Sixth and Seventh Intakes are continuing on their courses. One Hundred and Eleven Trainees are currently participating in the program.

Technical/Trades Training

Competency Training

Training Programs The training program includes two branches such as Trades Training Program to next generation and Advanced Training Program to Employees.

Trades Training ProgramThis program is proved to be successful since the graduates from the first five batches, the first one in November 2003, the second one in December 2004, the third one in December 2005 the fourth one in December 2006 and the fifth one in December 2007 are now in their respective worksites taking charge with full responsibility.

* Theory* is only for Mechanical Fitter Trades and Heavy Equipment Fitter Trades. Electrical Trades is continuing to on the job training ( OJT ) during this period.* Theory* is only for Mechanical Fitter; Auto Electrical and Heavy Equipment Fitter Trades of Sixth Intake Trainees. Electrical Trades and Process Operator Trades are continuing to on the job training ( OJT ) during this period.* Theory* is only for Mechanical Fitter, Electrical Fitter, Auto Electrical, Heavy Equipment Fitter, Heavy Equipment Mechanic, Heavy Equipment Welder Trades of Seventh Intake Trainees. Process Operator Trades and Mining Operator Trades are continuing to on the job training ( OJT ) during this period.


Employee Development TrainingThe Technical courses are designed to improve work practice and skills. The general training courses

are designed to improve the ability of employees. These courses also planned to increase productivity.

Totally ( 69 ) Employees were benefited from the following subjects during this year.

Training FacilitiesThe following improvements have been made available the following facilities:

• Technical Training Office facilities for the trainers.

• Computer Training Room.

• General Training Room.

• Electrical Training Room and Test Room.

• Mechanical Training Room for Machinists and Fitters.

• Mechanical Training Room for Heavy-Equipment Fitters.

• Mechanical Training Workshop.


SUBJECT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Database Management System 10

IT User Supporting Training 10

Pre Basic English 6 6 6 6

Elementary English 6 6 6 6

Computer Basic Application 10 10 10 20 10 4 6 7

Training Programs The training program includes two branches such as Trades Training Program to next generation and Advanced Training Program to Employees.

Trades Training ProgramThis program is proved to be successful since the graduates from the first five batches, the first one in November 2003, the second one in December 2004, the third one in December 2005 the fourth one in December 2006 and the fifth one in December 2007 are now in their respective worksites taking charge with full responsibility.

* Theory* is only for Mechanical Fitter Trades and Heavy Equipment Fitter Trades. Electrical Trades is continuing to on the job training ( OJT ) during this period.* Theory* is only for Mechanical Fitter; Auto Electrical and Heavy Equipment Fitter Trades of Sixth Intake Trainees. Electrical Trades and Process Operator Trades are continuing to on the job training ( OJT ) during this period.* Theory* is only for Mechanical Fitter, Electrical Fitter, Auto Electrical, Heavy Equipment Fitter, Heavy Equipment Mechanic, Heavy Equipment Welder Trades of Seventh Intake Trainees. Process Operator Trades and Mining Operator Trades are continuing to on the job training ( OJT ) during this period.



Safety and Environmental Training

Safety, Environment & Loss-Control Training Program

52 | Safety, Health & Environmental Report Safety, Health & Environmental Report | 53

New Projects

New Diesel Fuel Farm As the mine pit become deeper and the ore grade is depleted more tonnage of ore and

waste need to be removed, and more mine equipment are used. Fuel consumption increased

remarkably. New diesel tanks are required to increase the storage capacity that will be required

for mine equipment for operational safety. Two new diesel tanks have been constructed near

pump station 3 and commissioned in September 2007.

A 2-inch pipeline, about 2000m length, has been also installed from the new diesel tanks to

mining go-line area, so that required fuel can be transferred to filling station on every shift.

The original acid neutralization plant had been converted to agitation leaching plant in

2004 to treat high-grade ore with (>5%) copper content. The plant has been operated successfully

at the treatment capacity of 200tpd. Now, the ore grade is depleted and the plant is treating

high clayey ore with only relatively high-grade copper content of >1%. According to Mining

plan, more high clayey ore will be mined out in coming years.

A scrubber unit has been incorporated into crushing circuit to remove fine clayey ore,

and two additional leaching tanks were constructed to increase the leaching time. The expected

plant throughput with newly installed scrubber unit is 400tpd, a 100% increased production

of agitation plant. The scrubber unit is expected to commission in February 2008.

Agitation Leaching Plant Modification

54 Safety, Health & Environmental Report

Fines Screening Plant Extension

A Fines Screen Plant has been operated

in secondary crushing section since 2004, and

removed fines for improving permeability in

heap leached cells, and so that to improve heap

leached recovery. The plant has been operating

well and significant improved copper recovery

from heap leach cell has been noticed. However,

according to previous years experience bottleneck

occurred at the existing screens to increase overall

crusher throughput. Therefore, two additional

static screens have been installed at the head of

dewatering screens, and commissioned in October

2007. Another two additional washing screens are

being installed, and expected to complete in March

2008.

There are about 36,000 tones of high grade

residue with about 4% copper content, from high

grade agitation leaching plant, in north west side

of old tailings pond. According to metallurgical

laboratory test, at least 40% of copper from the

residue is easily recoverable by re-treatment of the

residue in agitation tank. Two old tanks have been

refurbished and installed close to the residue disposal

area. The residue will be firstly recovered from the

pond by hydraulic monitoring with contaminated

solution, and then sent to agitation leaching tanks.

The total retention time in leaching tanks will be

about 2 hours. The leached slurry will be sent to

fines tailings storage dam and recovered the leached

solution by decantation method. The plant will be

commissioned in early January 2008.

Residue Treatment Plant

54 Safety, Health & Environmental Report

Fines Screening Plant Extension

A Fines Screen Plant has been operated

in secondary crushing section since 2004, and

removed fines for improving permeability in

heap leached cells, and so that to improve heap

leached recovery. The plant has been operating

well and significant improved copper recovery

from heap leach cell has been noticed. However,

according to previous years experience bottleneck

occurred at the existing screens to increase overall

crusher throughput. Therefore, two additional

static screens have been installed at the head of

dewatering screens, and commissioned in October

2007. Another two additional washing screens are

being installed, and expected to complete in March

2008.

There are about 36,000 tones of high grade

residue with about 4% copper content, from high

grade agitation leaching plant, in north west side

of old tailings pond. According to metallurgical

laboratory test, at least 40% of copper from the

residue is easily recoverable by re-treatment of the

residue in agitation tank. Two old tanks have been

refurbished and installed close to the residue disposal

area. The residue will be firstly recovered from the

pond by hydraulic monitoring with contaminated

solution, and then sent to agitation leaching tanks.

The total retention time in leaching tanks will be

about 2 hours. The leached slurry will be sent to

fines tailings storage dam and recovered the leached

solution by decantation method. The plant will be

commissioned in early January 2008.

Residue Treatment Plant


Verification StatementsEnvironment, Occupational Health & Safety

The Myanmar Ivanhoe Copper Company Ltd (MICCL) has established an Integrated

Management System (IMS) for Quality, Environmental, and Occupational Health and Safety to

International and Australian Standards. The IMS is fully implemented at both the Yangon Office

and the minesite operations at Monywa, with the full support of Management and all Company

personnel.

SGS Systems & Services Certification Pty Ltd has been commissioned to verify the statements

made in the MICCL 2007 Safety, Health & Environmental Annual Report.

In May 2007, MICCL voluntarily suspended their Environmental Certification to ISO

14001:2004. This was done so that the Company could develop and implement an adequate

management plan to address an identified discrepancy in water monitoring results. A comprehensive

plan was carried out and in November 2007 MICCL requested that a Verification Audit be conducted

with the view to reinstatement of ISO 14001:2004. This was undertaken successfully.

The biannual reviews conducted were performed through examination of records and

supporting data, following a comprehensive sampling regime, and in conjunction with interviews

with personnel from the individual operational management areas.

MICCL sets clear Objectives and Targets for each Standard and the performance against these

items was monitored on a regular basis. The information available showed that the Objectives and

Targets had been met, and that the statements made in the Report have been substantiated.

The Environmental monitoring data continues to support the Environmental Performance

Indicators as set by the Company, and shows they are still below the levels set by the World Bank.

The commissioning of this independent assessment is a voluntary move by the Company and

is a responsible action which is to be commended.

Yours sincerely,

J.S Adie-Cooper

Senior Environmental & Occupational Health & Safety Auditor

SGS Systems & Services Certification Pty Ltd

Glossary of Terms

WebSites

MICCL: http://www.miccl.com.mmIvanhoe Mines: http://www.ivanhoemines.comSGS International Certification Services Pty Ltd: http://www.sgs.comStandards Australia: http://www.standards.com.auLondon Metal Exchange: http://www.lme.co.ukInternational Copper Association: http://www.copperinfo.com

Impact Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organisation’s activities products or services.

Incident Any unplanned event resulting in, or having a potential for injury, ill-health, damage or other loss.

KL/day kilolitres per day

Leach Cap Waste Waste rock contained in the upper 25m to 30 m of the pits where the sulphide minerals have been leached out. As such, these are generally non-acid- generating wastes.

LME London Metal Exchange

Lost-Time Injury (LTI) A work injury, which results in the inability to work one full rostered day or shift at any time after the day or shift in which the injury occurred. The number of lost workdays is the total number of rostered days on which the injury person was temporarily unable to work as a result of the injury.

Lost Time Injury The number of Lost Time Injuries per million person-Frequency Rate (LTIFR) hours worked during the period.

mg/L milligrams per litre

mg/m3 milligrams per cubic metre

Objective An overall goal for health and safety or environmental performance.

Ore Mineral-bearing rock that can be extracted and treated at a profit.

pH The measure of the acidity or alkalinity of a substance; pH 7 is neutral, below pH 7 is acidic and above pH 7 is alkaline.

Rehabilitation Treatment of disturbed areas ultimately leading to stable, vegetated land forms consistent with previous, or an acceptable alternative, use.

Risk Assessment The overall process of estimating the magnitude of risk and deciding what actions will be taken.

Risk Control The process of elimination or minimization of risks.

ROM Ore Run of Mine Ore

Solvent Extraction (SX) The solvent extraction operation upgrades the copper-bearing PLS from the heap leach in two stages.

Sulphuric Acid A colourless, oily liquid that is a strong acid and a vigorous oxidising agent.

Target Detailed performance requirements with regard to health and safety or the environment.

TDS Total Dissolved Solids

TPD Tones Per Day

TSS Total Suspended Solids

Waste Rock Rock that is mined for access to ore but does not contain economically recoverable minerals.

Wobbler An item of irrigation equipment used in heap leaching that is similar to a sprinkler.


Acid Potential Waste Sulphide-bearing material within the pit boundaries that is sub-economic and must be stockpiled in waste dumps. Has the potential to generate ARD.

Agglomerate A small ball whereby the fine particles are bound onto coarse particles.

Agglomeration The aim of agglomeration is to minimise the potential for segregation of the coarse and fine fractions of the ore stream as it is placed on the heap-leach pad.

Bund A long length of earth construction with a trapezium-shaped cross-section that is about three to five meters wide at the base, one to two meters wide at the top; serves as containment barrier.

Carbon Dioxide(CO2) A naturally-occuring colourless, odourless., tasteless gas produced by burning fuels and during respiration.

Deslimed product Crushed ore from which slime already has been removed by washing on vibrating screens.

Disabling Injury Any incident which arises out of and in the course of duty, resulting in any occupational illness, injury or disease, and giving rise to any related temporary or permanent disablement as determined by a medical practitioner. Such an incident is generally considered disabling if the affected person is unable to continue with all of the tasks for which he/she was appointed responsible and that constitute his/her normal work duties.

Electrowinning (EW) The electrowinning process involves circulating the copper sulphate solution, produced during the solvent extraction process, through 104 EW cells, each containing 45 cathodes and 46 anodes. Copper is deposited at the cathodes when an electrical current is passed through the cells.

Environment Surroundings in which an organisation operates, including air, water, land, natural resources, flora, fauna and their interrelation.

Environmental Aspect An element of MICCL’s activities, product or services that can interact with the environment.

Environmental The part of the overall management system thatManagement System includes organisational structure, planning activities,(EMS) responsibilities, practices, procedures, processes and

resources for developing, implementing, achieving, reviewing and maintaining the environment policy.

GJ gigajoule

Ground Water All water occurring below the land surface.

ha hectares(10,000 m2)

Hazard A source or a situation with a potential for harm in terms of human injury or ill-health, damage to property, damage to the environment, or a combination of these.

Hazards identification The process of recognizing that a hazard exists and defining its characteristics.

HDPE High Density Polyethylene, used as a protective barrier.

Hydrocarbon Any compound of carbon and hydrogen, but usually a substance such as fuel, oil or grease.

Myanmar Ivanhoe Copper Company Limited · Contents Foreword 4 Our Policies 6 Certificates 7...

Documents

Transcript of Myanmar Ivanhoe Copper Company Limited · Contents Foreword 4 Our Policies 6 Certificates 7...