Sustainability Report 2009

Scope of the Report

Nyrstar is a leading global multi-metals business, producing signifi-

cant quantities of zinc and lead as well as other products including

silver, gold, and copper. Zinc is our primary focus. Our operations and

activities are located in Western Europe, Australia, the USA, Peru and

China.

This is our second annual Sustainability Report and includes informa-

tion on our performance for the 2009 calendar year, our second full

year of Nyrstar operation.

We apply Nyrstar Group policies and procedures at all our Nyrstar

operations and activities, including Joint Ventures where we have

management control. However, the performance data in this report

only includes our six major wholly Nyrstar owned smelter sites, as

our mining assets were purchased during 2009 and were on care and

maintenance. We describe our approach for both mines and major

smelter sites going forward, as these activities present the material

and significant sustainability risks and opportunities for the Company.

These facilities, their main activities and locations are shown in the

table below.

We have prepared this report considering the Global Reporting

Initiative (GRI) Sustainability Reporting Guidelines (Version 3, also

known as the G3 Guidelines) and intend for our reporting to qualify

for GRI Report Application Level B+. This document should be read

in conjunction with the Nyrstar Annual Report 2009, which provides

specific information about the company, its operations, management,

business structure and governance arrangements.

Other Nyrstar public reports, including the 2009 Annual Report,

a GRI Content Index for our Group level sustainability reporting,

and previous years Annual Reports and Sustainability Reports are

available on our website: www.nyrstar.com

For further information about Nyrstar or about this report please send your question via email to communications@nyrstar.com

Operation (‘000 Tonnes) Siteemployees Location

Auby zinc smelting Zinc cathode 161 305 France

Balen / Overpelt zinc smelting, alloying & oxide washingZinc cathode 26Zinc market metal 137 662 Belgium

Budel zinc smelting & alloyingZinc cathode 234Zinc market metal 224 417 the Netherlands

Clarksville zinc smelting & alloyingZinc cathode 101Zinc market metal 94 248 Tennessee, USA

Coricancha mining & production of zinc, lead & gold concentrates No production in 2009 135 Peru

Hobart zinc smelting & alloyingZinc cathode 273Zinc market metal 264 472 Tasmania, Australia

Port Pirie multi-metal smelting

Lead market metal 208Zinc cathode 39Zinc market metal 35Copper cathode 4Silver metal 0.5 Gold dore 0.0007

659 South Australia, Australia

Tennessee Mines mining & production of zinc concentrates No production in 2009 248 Tennessee, USA

CONTENTS

02 Scope of the Report

04 Letter from CEO

06 Sustainability Impacts, Risks & Opportunities

08 Economic contribution

09 Performance overview

10 Safety

12 Health

14 Environment

18 People

20 Community & Society

23 Report Verification Statement

Nyrstar 3

4 Nyrstar

I am pleased to present our 2009 sustainability progress in this,

our second Nyrstar Sustainability Report.

Nyrstar is a leading global multi metals

company, producing significant quantities

of essential resources - zinc and lead as

well as silver, gold and copper. Zinc is

our primary focus. Originally a zinc and

lead smelting company, during 2009 we

have undergone a significant strategic

transformation, expanding into mining and

becoming a more diversified resources

company.

The world is developing at an unprec-

edented rate and this brings with it an

increasing demand for resources. Through

ambitious, bold and innovative decision-

making, Nyrstar has become an integrated

company and our business is now positioned

to be the partner of choice in essential

resources for the development of a changing

world.

We focus on creating value for all our

stakeholders and on building a strong and

sustainable future for Nyrstar. That is

why we seek to operate a lean, efficient,

dynamic, and flexible business.

Despite the difficult economic circum-

stances in 2009, which saw the average

zinc price 11% lower and our smelter zinc

cathode production levels 20% lower than

in 2008, we still delivered a solid financial

result for the year.

Our profitability, measured as underlying

EBITDA, was 93 Million Euro. Although

the lower zinc price and volumes during the

year resulted in lower revenue and profit

figures than in 2008, the restructuring

program that we commenced in February

2009 delivered a significant and sustainable

decrease in our production cost per tonne.

This means we are well placed to benefit

from increases in metal prices as economic

activity is restored around the world.

In terms of non-financial performance

measures, we continued to improve on

the whole, although some parameters are

difficult to compare due to reduced produc-

tion at a number of our sites in response to

the economic downturn. In terms of safety,

tragically, one of our contractors was fatally

injured while working at the Hobart plant.

We did however continue with our planned

safety leadership and safety culture change

programs, which delivered a 34% reduction

in the number of lost time injuries and a

27% reduction in the number of recordable

injuries compared to the previous year. We

also saw a 12.5% reduction in the number

of recordable environmental incidents.

The fact that we continued to improve in

the face of such a challenging year is a

credit to our people and a reflection of

their commitment to the Nyrstar value of

preventing harm.

Although faced with expenditure

constraints during 2009, we still

made significant progress on reducing

environmental legacy issues across the

company. Community soils remediation was

completed in the local township near the

Auby smelter and recovery of the historical

leach product stockpile was completed at

Hobart.

Letter from the CEO

Nyrstar 5

Formal approval was given for the

Overpelt groundwater remediation

project and is close to being finalised

for the Balen plant as well. We also

continued to progress the tenby10

project at Port Pirie together with the

South Australian Government and local

community, resulting in a continued

decline in blood lead levels of local

children and the Port Pirie workforce.

Apart from the global financial crisis,

climate change was another key

sustainability issue for governments and

society in 2009. It was a year of much

debate, culminating in Copenhagen -

but one without solid agreements being

reached. Nyrstar supports these efforts

to address climate change; however it

is imperative that actions are taken

in such a way that provides a level

playing field for the non-ferrous metals

industry globally.

Zinc production is inherently energy

intensive with energy costs, mainly in

the form of electricity, being 38% of

our smelter operating costs in 2009.

However zinc also contributes to

sustainable development and reducing

CO2 emissions, particularly through

the galvanizing of steel to prevent

corrosion and extend the useful life of

steel structures and vehicles. Therefore

how climate change is addressed is

of much importance to us, both socially

and economically.

2009 was a year of significant

strategic transformation for us. Since

announcing our new strategy in June,

we have been concentrating on putting

our plans into action.

We have improved our existing

businesses and acquired mining assets.

We will continue to do this in the

coming year, as well as ensuring that

our newly acquired mining assets

are fully integrated into the business.

By delivering on our strategy we are

building a confident future for the

company and its stakeholders. I look

forward to reporting on more of our

sustainability progress in the year

ahead.

Roland Junck

Chief Executive Officer

Letter from the CEO

6 Nyrstar

Sustainability Impacts, Risks & Opportunities

Nyrstar is a supplier of metal bearing raw materials, intermedi-ates and commodity grade metals,

including zinc, lead, silver, gold and copper. We also produce signifi-

cant quantities of sulphuric acid. Our customers use our products in

further processing and manufac-turing activities.

Our metal bearing raw materials and

intermediates are used by Nyrstar smelters

or others to produce metallic products.

Key users of our zinc metal products are

die-casters and galvanisers, and those

of our lead metal are lead-acid battery

manufacturers. Sulphuric acid is used in the

production of other chemical products such

as fertilizer and nylon, and as an electrolyte

in lead-acid batteries. Zinc production is our

primary focus. Its diversity of applications

and uses from construction and infrastruc-

ture to transport, industrial machinery,

communications and electronics, consumer

products and human health make it an

essential and highly sought after resource in

an ever demanding world.

Our approach to sustainabilityWe undertake a holistic approach to our

business sustainability and this is recognized

in our Nyrstar values, our code of business

conduct and our business risk management

policy. We have an enterprise risk manage-

ment framework that uses a consistent

approach to identifying and assessing risks

and prioritizing actions required for all

types of business risks: financial, safety,

health, environmental, legal compliance,

stakeholders, quality, production and organi-

zational structure. Oversight of enterprise

risks and risk management processes is

maintained at the Nyrstar Board level.

A summary of our key business risks can be

found in the Nyrstar Annual Report.

Nyrstar has established core Corporate

Policies for Safety and Health, Environment,

Risk Management and Quality. These policies

allow us to integrate operations globally

by establishing common business processes

and procedures, which underpin the Nyrstar

Values and provide more specific guidance

for decision making in key sustainability

areas. Our Corporate Safety & Health and

Environmental assurance processes allow

us to assess our performance and track our

progress against sustainability objectives.

Key sustainability impacts, risks and opportunities Due to the nature of our business, our key

sustainability impacts, risks and opportuni-

ties do not tend to change significantly from

year to year. The key change to our business

in 2009 was the announcement of our new

strategy to selectively pursue opportunities

in mining and the acquisition of mines in the

USA and Peru and an interest in a develop-

ment in Greenland.

Most of our mines and smelters have long

operating histories and are located in

developed and regulated economies such as

Western Europe, Australia and the USA,

however most were established at a time

when standards were different to what they

are today. These operations are located in

regional areas, typically in close proximity

to local residents and often form a signifi-

cant part of the local economy. For our

business to be sustainable, we must ensure

that we meet the expectations of all our

stakeholders, which will continue to evolve

over time.

Nyrstar 7

Our key sustainability impacts, risks and

opportunities are:

•Creatingvaluebycontinuallyreviewingour

portfolio of assets, improving returns from

existing assets and seeking to grow the

business.

The zinc and lead industry has historically

been characterized by variable returns to

shareholders, reflecting the lack of industry

consolidation and the cyclical nature

of commodity metal prices. In order to

provide adequate return to our investors,

we need to pursue growth opportunities

in line with our strategic objectives and

continually improve the return on capital

from our current assets. During 2010 and

going forward, we will continue to deliver

on our strategy of improving and expanding

our existing business whilst selectively

pursuing opportunities in mining.

•Ensuringthatouractivitiesdonot

adversely affect the health and safety of

people that work at and live close to our

operating sites.

Wherever we operate, we hold the health

and safety of our employees and the

communities around us and the protection

of the environment as core values. There

are a number of physical and chemical

hazards at our facilities that we need to

identify and understand. To minimise the

potential for injury or illness we need to

assess and manage the risks relating to

these hazards and to ensure the effective-

ness of risk controls we have in place.

We take a holistic approach to preventing

harm which includes addressing workplace

equipment and management systems,

workforce culture and behaviours, and

engagement of our local communities.

•Minimisingtheimpactourproduction

sites have on the local environment by

improving current emissions performance

and addressing legacy issues.

Metals are naturally occurring substances;

however emissions from mines and

processing facilities can result in elevated

levels of metals in the air, soil, groundwater

and surface water around the sites. Most

of our sites have been operating for many

years, so there are potential environmental

impacts not only from current activities,

but also from historical operations and

practices. There are a number of factors

which influence whether metals in the

environment pose a risk to people or the

ecosystem, and these need to be taken into

account when prioritizing investments to

reduce emissions or to address historical

contamination or waste stockpiles.

•Improvingournaturalresourceefficiency,

including the use of raw materials, water

and energy.

Natural resources are extracted by mining

to make mineral concentrates. We make

metals and acid predominantly from zinc

and lead concentrates, however we also

process secondary zinc and lead containing

materials, which provides a valuable

recycling route for products of other indus-

tries such as galvanized steel recycling.

The zinc and lead smelting process is very

energy intensive, with electricity used to

convert dissolved zinc into zinc metal in

the electrolysis process and coke and coal

needed for the lead smelting process. Water

is used as the primary process medium in

making mine concentrates, and in the acid

production, leaching and electrolysis stages

of zinc smelting.

All of these materials have sustainability

impacts associated with their supply and

use, and industry must be as efficient as

possible in their use so as to balance their

needs for energy and water with the rest

of society.

Progress on our key risks and sustainability

issues during 2009 are summarized in the

Performance Overview Table on page 9 and

are discussed in more detail in the various

sections of this report.

As in the past year, Nyrstar’s key sustain-

ability challenges in the short to medium term

continue to be:

- further transforming the business to deliver

on our strategy of pursuing value creation

for all our stakeholders.

- meeting the challenges of new legisla-

tion and business requirements such as

proposed changes to, or introduction of,

greenhouse gas emissions trading schemes

and REACh legislation in Europe.

- delivering ongoing improvements in our

safety, health and environmental perfor-

mance and continuing to address historical

environmental legacy issues.

8 Nyrstar

Nyrstar’s financial results for 2009 in terms of both revenue and profit-ability were lower than in 2008 due to the impacts of the global financial crisis. In response to reduced global

demand for zinc, Nyrstar slowed production at the Clarksville (US) and

Budel (Netherlands) plants and put the Balen smelter on care and

maintenance in late 2008. These conditions prevailed until

well into 2009.

Although gradually rising over the year, the

2009 average zinc price of 1659 USD/tonne

was still 11% lower than in 2008. The 23%

reduction in zinc market metal production,

down to 817,000 tonnes from 1,056,000

tonnes in the previous year, together with

depressed metal prices were the key factors

resulting in the lower revenue for 2009.

These same factors had a major impact on

Nyrstar’s profit, measured as underlying

EBITDA. However the negative impact was

moderated by the restructuring program

launched in February 2009, which delivered

a 14% reduction in underlying smelting

operating costs per tonne of primary metal,

down from €553/tonne in 2008 to

€478/tonne in 2009.

Our sites are generally located in regional

areas, so they represent a significant employer

in and contributor to the local economy.

Our most significant site operating costs are

for employee benefit expenses (33%) and

energy (38%), both of which decreased in

real terms, but increased as a proportion of

operating expenses during 2009.

The reduction in total people and electricity

costs during 2009 was due to lower site

production levels in response to weaker

global zinc demand. Due to budget

constraints imposed in light of lower

revenues, capital expenditure and cyclical

maintenance spend at the six major sites was

also lower, totalling 61.4 M€ during 2009

compared to 107.1 M€ in 2008. Direct

economic benefits in terms of site operating

costs were 245 M€ in western Europe,

48 M€ in the US and 195 M€ in Australia;

and in terms of capital and maintenance

spend were 35 M€ in western Europe,

6.4 M€ in the US and 20 M€ in Australia.

Economic Contribution

35

20

6.4

2009 Capital & Cyclical Maintenance spend (M€)

EU

AUS

USA

Underlying EBITDA (in Me) Site Operating Costs (in Me)

2007 2008 2009

Other

Energy

Employee Benefits

Revenue from External Customers (in Me)

2007 2008 2009

1664

3800

2410

2007 2008 2009

93

540

137

299

165

174

273

251

181

141

186

161

Nyrstar 9

Our 2009 targets related to further development and implementation of company-wide systems and processes, and

improving on our performance as measured against the baseline established in 2008.

2009 Capital & Cyclical Maintenance spend (M€)

2009 Goals 2009 Performance 2010 TargetSAFETYNo fatalities N One fatality recorded at Hobart No fatalities

15% reduction in workforce recordable injuries from 2008 result.

A27% reduction in workforce recordable injuries,down from 139 in 2008 to 101 in 2009.

12.5% reduction in smelter recordable injuriesfrom 2009 result. Baseline injuries data to berecorded for mines.

Implement behavioural safety programs P ‘Working Safely 2’ training program underwayat most smelter sites

Implement ‘Working Safely I’ at the mine sites andcomplete ‘Working Safely 2’ program at all smelters.

HEALTH

Develop formal group procedures for managingexposure to metals in the workplace. Sites to defineindividual reduction targets.

P

Group level procedures relating to workplace exposures are currently being drafted. All siteshave implementation plans, but only Port Pirie has developed stated targets to date.

Implement Group wide database across all smeltersand Tennessee Mines for confidential recording ofmedical and exposure monitoring data.

ENVIRONMENT

20% reduction in recordable environmental incidents N 12.5% reduction in recordable environmental incidents, down from 24 in 2008 to 21 in 2009.

15% reduction in recordable environmental incidents from mines and smelters 2009 result.

No environmental incidents with significant off-site impact

A None of the reportable spill or emission incidents resulted in a significant off-site impact.

No environmental incidents with significant off-site impact.

Establish performance targets where relevant forgreenhouse, energy and water use, key emissions to water & air

PSite baseline data verified and improvements made to the Group database to allow routinegraphical reporting of performance.

Sites to develop regular site management levelreporting, and targets where appropriate, for keyenvironmental performance measures.

COMMUNITY

Develop formal site community engagement plans at all sites

NAll sites undertook community engagement activities in 2009, however formal plans were not completed due to resourcing constraints.

Develop formal site community engagement plans at all sites.

GOVERNANCE

Training for all Nyrstar employees on the Nyrstar Code of Business Conduct

A

Training on the Nyrstar Business Code ofConduct undertaken at all operating sites andCorporate Offices.This document is now part ofthe new employee induction pack.

Develop the next set of modules in the Code of Business Conduct training program.

Establish enterprise risk register and controls in RIMS database

P

Enterprise Risk training workshops held withmanagement teams at all sites. Risk reviewscompleted for significant environmental risks andvalidated in the database.

Conduct Enterprise Risk training workshops fornewly acquired sites. Validate enterprise risks andcontrols in RIMS database.

MANAGEMENT SYSTEMS

All sites to maintain ISO14001 certificationConduct

A All sites maintained ISO14001 certification in the period.

All sites to develop a workplan for integrated Quality,Environment and Safety Management Systemscertification.

All sites to achieve an audit rating of ‘all basic requirements have been implemented’ for NyrstarSafety & Health Management Standards in 2009.

P All sites achieved the standard except for Auby, which was 10% below the required score.

All sites to achieve an audit rating of ‘all basicrequirements have been implemented and are effective’ for Nyrstar Safety & Health ManagementStandards in 2010.

Performance Summary

A = AchievedP = Progressing on planN = Not achieved / not progressing to plan

10 Nyrstar

Safety

Wherever we operate, we hold the health and safety of our employees and the communities around us and

the protection of the environment to be core values.

Nyrstar has core policies and procedures

to support a consistent approach to safety

and a culture of looking after each other

and keeping each other safe. Our Nyrstar

Safety and Health Policy is underpinned by

a set of Management Standards that cover

all aspects of safety and health. For each

Management Standard, a set of expecta-

tions and requirements has been specified.

The requirements under each expectation

define the level of safety management we

would anticipate to deliver above average

industry performance. Ongoing implementa-

tion of the requirements specified in the

standards is planned to deliver Nyrstar’s

goal of world class safety performance by

2012.

The most significant safety risks at our

smelter sites relate to exposure to the

hazards inherent in our operations such

as: molten materials; dusts and fumes

containing metals such as lead, cadmium,

mercury, and arsenic; acidic liquids;

working at height; electricity; materials

handling; moving machinery and vehicles;

and the manual nature of many of our

tasks. At our recently acquired mining

assets, the most significant risks are related

to exposure to dust and diesel particulates;

underground evacuation; fire; inundations;

ground instability or rock falls; use of

explosives and hoisting activities.

Our key strategies for reducing the

potential for workplace injury, and

therefore the key areas where we have

opportunities to further improve are:

- systematic identification of hazards,

risks and appropriate controls

- standard best practice management

systems, practices and procedures

- a safe work culture where all individuals

take responsibility for their own actions

and also ensure that their colleagues are

working safely

- strong and consistent safety leadership

at frontline supervisor level.

Nyrstar Safety Management StandardsThe annual audits were conducted which

allowed an evaluation of site compliance

with Nyrstar requirements as defined in the

Management Standards and with legisla-

tion. A rating of current site management

systems and performance was given against

a standard scale, with the goal being to

achieve a minimum rating of ‘all of the

company’s basic safety & health require-

ments being implemented’. This goal was

met or exceeded by the end of 2009 at all

sites except for Auby, where the result was

marginally below the required level.

Safety LeadershipWe recognize the critical role of safety

leadership and safe work behaviours in

ensuring that our people are not harmed

in the workplace. All smelters have now

conducted our ‘Working Safely 1’ program

as a consistent base level of training.

Topics addressed during this first module

included: organizational culture and

safety culture; causes of unsafe behaviour;

company expectations and a safety first

philosophy; personal motivation and

commitment to action. A second program

‘Working Safely 2’ has been developed and

731

27

2009 Recordable injuries by Employment Type

Full Time Employees

Casual Employees

Contractors

Lost Time Injuries by Region

2008 2009

EU

USA

AUS

115

22

311

11

Nyrstar 11

roll-out commenced at several sites. The

main topics are: causes of unintentional

at-risk behaviour, and hazard recognition.

Workplace Health & Safety CommitteesFormal Site Health and Safety Committees

that represent all of the site’s workforce,

are in place to help monitor our health and

safety performance and advise on improve-

ment initiatives. One way in which the

Committees may do this is by workplace

inspections during which solutions for

observed hazards are proactively identified.

Catastrophic Risk ManagementMost of our major operating sites are

subject to additional regulations applying

to industrial facilities with the potential

for catastrophic risks, which are defined as

risks which could result in multiple fatali-

ties or serious off-site impacts. In Europe,

we continued with risk analysis, explosion

hazard management and emergency

response activities relating to the require-

ments of the “Seveso II” directive. In

Australia, we are assessing the require-

ments of upcoming Major Hazard Facility

legislation on our smelters and amending

our site risk analysis programs as a result.

Workplace InjuriesNyrstar’s second operating year has been

characterized by a significant and sustained

decrease in the number of injury incidents.

Lost Time Injuries, which included a

fatality in 2009, were reduced by 34%,

from 38 in 2008 to 25 in 2009.

The number of recordable injuries, defined

as any injury requiring medical treatment

beyond first aid, decreased by 27%, down

from 139 in 2008 to 101 in 2009.

This exceeded our goal of a 15% reduction

in the number of recordable injuries for

the year. We believe that this was due to

a number of factors: continued focus on

safety; the introduction of Nyrstar Group-

wide initiatives such as our behavioural

safety programmes, the safety first

standard and the audit programme; and

ongoing safety improvement efforts at the

operational level.

Another important measure of the

company’s safety performance is the

number of ‘critical incidents’, that

is, incidents that did result, or could

reasonably have resulted in a fatality or

permanent serious disability.

By setting clear expectations and encour-

aging sites to report this type of incident, we

aim to increase awareness of critical risks

to our people and to our business. During

the year 12 critical incidents were reported,

an apparent increase on the previous year’s

number of 8, however some of this was due

to a redefinition of reporting requirements.

Both the reporting and prevention of such

incidents will remain one of our main priori-

ties going forward.

As well as continuing to track recordable

injuries and critical incidents, we will also be

developing a set of proactive safety perform-

ance indicators over the coming year, in line

with our goal of preventing harm.

Looking forwardOur key safety priorities and targets for the

coming year include:

- continue roll-out of our safety leadership

training program ‘Working Safely 2’

- complete ‘Safety for Leaders’ training

at all sites

- achieve a 12.5% reduction in the

recordable safety incident rate compared

to our 2009 result for the six smelters.

Baseline injuries data will be recorded

for mines

- complete the development of technical

Safety & Health Standards in order to

harmonize risk control efforts across our

sites

- implement the company’s current

best practice standards for working

at heights and isolation of hazardous

energy at all sites

- pilot a new data management software

for detailed operational level safety risk

analysis. Assess suitability as tool to

support harmonized and shareable data

across operational sites

- conduct baseline safety and health

audits at our mining sites.

Workforce recordable injuries by Region

2008 2009

EU

USA

AUS

556

78

14

48

39

12 Nyrstar

Health

The Nyrstar Values, Policies and Management Standards that apply

to safety also apply to health. We have established a global health

and hygiene network to ensure a common group wide approach to

health management and the sharing of best practice within the company.

The most significant health risks arising

from our operations relate to exposure to

the physical and chemical hazards inherent

in our work environment, including: metals

such as lead, cadmium, mercury and

arsenic; acidic solutions; acid mist; diesel

particulates; toxic gases such as sulphur

dioxide, hydrogen sulphide and chlorine;

noise, and heat. Altitude sickness is also a

risk at our Coricancha Mine.

There are also a number of common health

risks for our employees and contractors

that are not related to hazards in the

workplace, but to the demographics of

our workforce. These include health issues

relating to an aging workforce and to

lifestyle choices such as smoking, diet and

exercise.

Our key strategies for supporting a healthy

workforce include:

- systematic identification of workplace

exposures, monitoring of exposure levels

and application of systems or practices

which minimize exposure to acceptable

levels

- monitoring of workforce bio-markers

and health indicators

- supporting our workforce in general

health awareness issues and wellness

programs, encouraging individuals to

make healthier lifestyle choices.

Lost work days and absenteeism All sites record the level of absence from

work due to health, sickness or other

causes. During 2009 we developed and

implemented common group definitions and

recording systems, which will allow group

statistics relating to absenteeism to be

reported, collated and verified for the 2010

year onwards.

The global concerns regarding the swine

flu pandemic were addressed by a common

approach, preparing for appropriate action

in case of a major outbreak close to our

operations.

A Pandemic Preparedness standard was

endorsed to ensure adequate measures

could be taken to monitor for possible

pandemics, take adequate proactive and

reactive measures to protect the health of

our employees, and to prevent interruption

of our business operations.

Workplace exposure standards and monitoringA group-wide bio-monitoring standard

has been developed to set minimum

company requirements for the evaluation

of biological exposure in the workplace.

This standard specifies requirements

for monitoring lead, cadmium, mercury,

and arsenic levels of our employees and

contractors. A biological exceedance rate

has been developed as a performance

measure and will be implemented in 2010.

As part of the reduction in the legal

exposure limit for sulphuric acid mist in

Europe, Nyrstar, working together with

the European Sulphuric Acid industry, has

taken the lead in the development of a new

standardised measurement method relevant

to workplace exposure.

Nyrstar 13

It is intended that this new test method

will be validated in 2010, prior to official

endorsement being sought.

Routine medical assessmentNyrstar has been developing a group-

wide health surveillance and exposure

standard covering the requirement for

pre-employment medicals, annual health

assessments, end of employment medicals

and any relevant follow-up processes.

The scope of these medical assessments

focuses on ensuring physical capability of

people in the workplace and will include

physical examinations, blood/urine analysis,

spirometry, audiometry, functional capacity

testing, and where appropriate, suitability

for alternate duties. A new medical

database has been piloted at the European

sites during 2009, to facilitate the analysis

and reporting of confidential medical data.

Implementation in Australia and the US is

planned for 2010.

Sharing of Best Practice on health issuesThe medical department at Balen has

developed the use of a specialised buffering

solution for the treatment of chemical

burns, as acidic solutions are a key hazard

at zinc smelters. This was a ‘best practice’

identified during the annual safety & health

audit and has since been implemented at

the two Australian smelters. The solution

has already been used successfully in

several acid burn incidents, significantly

reducing the extent of injury caused.

Fitness for workPrograms exist to minimise the potential

for drug and alcohol impacts in the

workplace, including systematic testing

where this is permitted by law. These

programs are still to be standardized

across all Nyrstar sites.

Healthy lifestyle choicesWellness programs are an integral part of

Nyrstar’s safety and health programs and

initiatives have been developed at most

Nyrstar sites. During the past year we have

continued to support various initiatives,

including: awareness programs; general

health assessments and screening for high

blood pressure, skin cancer, diabetes and

other diseases with lifestyle risk factors;

influenza vaccinations; and participation

in stop smoking, fitness and weight loss

programs.

The European health and hygiene network

identified the approach of Balen’s medical

department in supporting healthy lifestyles

as a best practice across the region. Similar

programs will be implemented across

other sites in 2010 as it is uncommon in

some areas for companies to give specific

advice on healthy lifestyle choices to the

workforce.

Looking forwardOur key workforce health priorities and

targets for 2010 include:

- Implement the new medical database

software at the Australian and US

smelters.

- Complete and roll-out the company’s

health surveillance and exposure

monitoring standards.

14 Nyrstar

Environment

Nyrstar’s value of ‘preventing harm’ means we commit not only to mini-

mising the environmental impact from current activities, but also

to recognizing the environmental impact from past operations and

addressing legacy issues.

Our smelter sites have Environmental

Management Systems certified to ISO

14001. This ensures that all sites have

identified their significant environmental

risks and aspects and have established

processes in place to minimize their

emissions and continually improve their

performance.

Nyrstar’s key environmental risks and

opportunities relate to:

• continuallyimprovingtheperformanceof

our production facilities and minimizing

emissions

• meetinglegalobligationsandtherequire-

ments of our voluntary agreements which

become more complex and stringent over

time

• addressinglegacyissues,particularly

historical soil and groundwater contami-

nation and accumulated products and

wastes

• providingmaterialstewardshipthrough:

efficient and responsible use of resources,

including water and energy; minimizing

waste; and expanding recycling options.

Group Environmental StandardsImplementation of our core Group wide

environmental standards and processes

continued during the year and was assessed

during the annual audit. These cover

areas such as risk management, incident

reporting, performance measurement and

reporting, legal and other requirements

and environmental provisions estimation.

Significant environmental risk registers were

updated and verified in the Risk Information

Management System at all sites.

Environmental AwarenessA number of sites completed environmental

awareness training for employees during

the year. Building upon the same approach

used for Safety Leadership, the intent of the

training was to ensure that the workforce

was aware of the significant environmental

impacts relating to the site, compliance

requirements, and what they could do

personally to improve the environmental

performance of the site.

Environment Improvement ProjectsOur environmental improvement programs

are generally site specific, as the most

significant risks at each site differ, depending

on the site history and location, physical

and regulatory environment, and the level of

past investment in environmental protection

measures. We have continued to progress

a number of key site projects over the past

year, including:

• completingtheresidentialsoilsremedia-

tion program in the Asturies area and

starting up operation of the goethite

com pacting plant to extend the life of the

on-site landfill at Auby

• finalisinginvestigationsrequiredforthe

contaminated groundwater remediation

program at Balen. Obtaining a permit for

establishment of an on-site landfill for

material arising from site and community

soil remediation projects in Balen

• progressingdiscussionswiththe

Province of Noord Brabant to resolve

the outstanding issues relating to the

Aftercare Plan for the historical landfill

area at Budel

Nyrstar 15

• completingreclamationofthehistorical

leach product stockpile, disposal of

a further 3,500 Tonnes of historical

mercury contaminated waste and instal-

lation of equipment to substantially

remove the visible tail gas stack plume at

Hobart. Public health information first

circulated in 1999 relating to community

soil contamination was updated as a

result of a survey completed in 2008

• commissioningtheupgradedwastewater

treatment plant and obtaining formal

approval for the contaminated ground-

water remediation program at Overpelt

• continuingon-sitefugitiveleademission

reduction measures, including the ‘Quit

the Pit’ program to reduce outdoor

stockpiles of metal bearing materials.

Together with continuing support for

measures to reduce community lead

exposure at Port Pirie, the percentage of

children with blood lead levels below the

target of 10µg/dL increased to 74.1%

in December 2009 from 69.6% in

December 2008. 1

Compliance with Licence ConditionsOur key compliance measure is recordable

environmental incidents, which are defined as

environmental incidents or events requiring

notification to the relevant Regulatory

Authority, which are a non-compliance

with consent conditions. The total number

of recordable incidents in 2009 was 21, a

12.5% reduction on the 2008 result of 24.

Although a positive outcome, it did not meet

the 20% improvement target we had set for

ourselves.

The most frequent incident types were

non-compliance with discharge limits for

air emissions (38%) and for wastewater

(33%). All of the recordable environmental

incidents were of a minor nature and none of

the incidents resulted in significant off-site

environmental impact or in regulatory action.

We recorded one significant on-site spill event

at Clarksville, where a breach in a pipeline

resulted in the release of metals-containing

pond supernatant destined for processing in

the metals recovery plant. Cleanup measures

were immediately implemented and the site

has entered into a voluntary State EPA

program to complete any required on-site soil

remediation. The USEPA also subsequently

determined that the site did not comply with

CERCLA timely reporting requirements for

the incident and a penalty of US$17,264 was

imposed in March 2010.

Emissions to Air & WaterWe measure emissions of key pollutants

discharged at licensed air and water

emission points. Our overall target is to

reduce emissions.

Group emissions to air from licensed point

sources for nitrogen (as NOx) increased by

3% from the 2008 result. Group emissions

of sulphur (as SOx) increased by 4%,

although 99% of these emissions relate to

Port Pirie which has limited sulphur capture

and emissions are related to production

rates. SOx emissions at the zinc smelting

sites decreased 57% in 2009, the difference

representing the impact of the Balen smelter

being closed for most of the year.

Wastewater discharges of key metals

from licensed point sources is measured

by receiving water type. Zinc discharged in

treated wastewater was significantly lower

at most sites and both Hobart and Budel

recorded improvements in all three metals

(Zn, Pb, Cd) during the year.

*1 South Australia Department of Health data, measured as 5 year moving cohort.’

Recordable Environmental incidents by type

2007 2008 2009

other

stormwater

air

waste water

Emissions to Air - NOx (Tonnes)

2007 2008 2009

315

Emissions to Air -SOx (Tonnes)

2007 2008 2009

4

12

35

346

11

158

7

391

307

1,865

54,47559,477

62,6741,748 754

Zinc Smelter

Port Pirie Smelter

16 Nyrstar

Energy & Greenhouse GasesZinc and lead production are energy

intensive, predominantly due to the use of

electricity in the electrolysis step of the zinc

production process. Our carbon footprint is

mainly due to indirect (electricity generation

related) emissions rather than direct site

emissions and is therefore highly dependent

on the electricity source in the regions that

we operate. We measure our energy use and

greenhouse gas emissions, both by direct

and indirect sources. Our overall target is to

further increase energy use efficiency and

reduce greenhouse gas emission intensity. 2

Total smelter energy use decreased from

20.3 Petajoules in 2008 to 17.2 Petajoules

in 2009, however energy use efficiency

declined from 16.0 to 16.5 Gigajoules per

Tonne of metal product, as a result of the

reduced production rates at Balen, Budel and

Clarksville during the year. Similarly, total

greenhouse gas emissions decreased from

2.0 million Tonnes of carbon dioxide

equivalents (MT CO2-e) in 2008 to 1.6 MT

CO2-e in 2009; while emissions intensity

declined only marginally from 1.58 to

1.56 Tonnes CO2-e per Tonne of metal

production. At our zinc smelters in 2009, an

average of 96% of energy use was electricity

and indirect carbon emissions averaged 89%

of the zinc smelter CO2 emission profile.

Direct energy use and carbon dioxide emissions

are greater than indirects at the Port Pirie

smelter which uses different processes to

produce a variety of metal products.

Raw Material UseWe extract metals and other valuable products

not only from natural raw materials, but also

from secondary recycled sources such as zinc

oxides. Our overall goal is to increase the

volume of zinc production from secondary

materials, however we did not achieve this

during 2009. Due to the lower zinc produc-

tion rates at a number of sites, there was

a decreased ability to reprocess secondary

materials, particularly those that are treated

through the roasting section of the zinc plant.

Water UseWe measure fresh water used on site for

process purposes, as supplied by local utility

companies or from local surface or ground-

water resources. Recovered stormwater or

contaminated groundwater is also used at

some sites to replace fresh water. Our overall

target is to increase water use efficiency,

particularly for fresh water supplies. Fresh

water use continued to decrease across the

Group over the past year, with reductions

recorded at Budel, Clarksville and Hobart.

Reductions at Balen / Overpelt were mainly

due to the plant being on care and mainte-

nance for most of the year. Overall, fresh water

use efficiency declined during the year, from

7.7 Kilolitres per Tonne of product in 2008 to

8.9 in 2008, again, mainly due to the impact

of reduced production rates across the Group.

Waste We measure both process and non-process

wastes arising from our operating sites, with

our overall objective being to reduce waste to

landfill and to volumes of wastes stockpiled

on site over time. There was a 51% decrease

in the tonnage of non-process waste disposed

to off-site landfill in 2009. While some of this

reduction may have been attributed to lower

Discharges to water by type and destination(Tonnes of metal)

Zinc Zinc Lead Lead Cadmium Cadmium 2008 2009 2008 2009 2008 2009

23.6

2.1

0.123.5 3.6

0.160.21

0.37 0.34

0.2

Local stream/waterway Estuary/sea

3.2

27.5

Energy consumption (PJ)

2007 2008 2009

Direct Energy

Indirect Energy

4.7

15.3

4.9

15.4

12.5

4.7

Energy use efficiency (GJ/T)

2007 2008 2009

16.516.1 16.0

*2 Carbon in feed materials is included in direct greenhouse gas emissions, but not included in energy use calculations.

Nyrstar 17

CO2 emission intensity (TCO2-e/T product)

2007 2008 2009

Zinc from primary and secondary raw materials sources (%)

2008 2009 Zinc Zinc Lead Lead Cadmium Cadmium 2008 2009 2008 2009 2008 2009

Greenhouse Gas Emissions (MT CO2-e)

2007 2008 2009

0.47

1.15

Direct Emissions

Indirect Emissions

0.48

1.47

0.48

1.52

Direct Emissions

Indirect Emissions

0.39

1.18

0.38

1.19

0.45

1.11

Zn in secondary raw materials

Zn in concentrates

18.4

81.6

14.5

85.5

Fresh water use by source (ML)

2007 2008 2009

Municipal Supply

Surface water

Ground water

Fresh water use efficiency (KL/T Product)

2007 2008 2009

Non-process waste by disposal method (Tonnes)

2007 2008 2009

To Recycling

To Energy Recovery/incineration

To Landfill

3,441

2,252

4,437

3,202

2,236

4,375

3,322

1,721

4,2648.1

7.7

8.9

806

1,474

1,330

974

470

804

8372,137

1,646

site production levels, particularly at Balen;

significant improvements were recorded at

almost all sites, reflecting on-ground improve-

ment actions undertaken during the year.

Looking forwardDuring the coming year we plan to continue

our existing initiatives in the areas of risk

management, the reduction of emissions from

current activities and addressing historical

contamination and waste issues. In addition,

there will be a focus on integration and

ramp-up of mining activities. Key activities

and initiatives for 2010 include:

- establish programs at Nyrstar mining sites

which meet established Group Environ-

mental Standards and processes and ensure

that standards adequately address mining

specific issues, including mine closure

planning

- develop a formal Nyrstar Product

Stewardship approach

- upgrade the Budel wastewater treatment

plant to improve process stability and

submit the final Aftercare Plan for the

historical landfill area to the Province of

Noord-Brabant

- obtain the required regulatory approvals

for the Balen groundwater remediation

projects and restart on-site soil remediation

activities

- continue the Port Pirie tenby10 project and

develop a post tenby10 strategy to ensure

ongoing and sustainable improvements in

community blood lead levels

- install the first phase of contaminated

groundwater interception and recovery

infrastructure at Overpelt

- commence the first stage of cell house

basement sealing at Hobart

- achieve a 15% reduction in recordable

environmental incidents from the 2009

results for mines and smelters.

18 Nyrstar

At Nyrstar, we believe that people are the

foundation for our success. Our long-term

sustainability depends upon recruiting,

training, developing and retaining a talented,

dedicated and motivated workforce.

We are committed to open and honest

relationships with our employees, and we

aim to be consistent, fair and transparent

in our practices and processes and, as a

minimum, to meet all legislative require-

ments in our jurisdictions of operation.

To support and guide us in our commitment

to our people, we operate by a set of core

Nyrstar values which clearly set out our

intention to prevent harm, be open and

honest, keep our word, be considerate and

work together as we go about our tasks. To

further reinforce their importance,

we link our values to individual reward via

our performance management process.

An assessment of demonstrated behaviours

in line with our values is an element of our

Annual Incentive Plan for employees, with

a 360 degree feedback process is used for

those at management level. We believe

that the Nyrstar values and the behaviours

associated with them will not only support

delivery of our key strategies, but also create

a culture that attracts and retains talented

employees.

In addition to our Nyrstar values, the Code

of Business Conduct defines even further

the standards of integrity and business

conduct expected of all employees in their

dealings with our community, environment,

customers, suppliers, competitors, share-

holders and the assets of the company.

All employees are exposed to these expecta-

tions, typically during the induction process.

At this time they are given a copy of the

Code of Business Conduct booklet, which

also contains a useful framework for ethical

decision-making.

Human RightsSupport for fundamental human rights is an

integral part of how we operate. We believe

companies can and should play a construc-

tive role in upholding and promoting human

rights. We are committed to respecting our

employees’ rights in line with the Interna-

tional Labour Organisation’s Declaration of

Fundamental Human Rights at Work.

Workforce composition and terms of engagementIt is a Nyrstar policy to comply with

relevant legislative employment frameworks

wherever we operate. We recognize the right

of freedom of association by our employees.

We have a number of operations where we

have a mix of collective and individually

regulated employment agreements, however

this does not affect the rights of employees

to choose to belong to trade unions.

In 2009, approximately 75 per cent of

our workforce was covered by Collective

Agreements. Most of our employees are

engaged on a full time basis, however the

same standard terms and conditions of

employment apply to both full and part time

employees.

In October 2009, the first meeting of

the special negotiating committee of the

European Works Council was held in

Brussels. Organisations with employees in

more than one European country are obliged

to form a European Works Council which

deals with matters affecting employees

across more than one European site.

Representatives from Nyrstar’s operations

in France, Belgium and the Netherlands

as well as management representatives,

discussed the rules that will govern

Nyrstar’s European Works Council. Despite

the complex nature of what is required

under European law, the Committee

progressed in a very constructive manner

and agreement was reached on several

points.

Nyrstar believes in constructive and open

dialogue with our employees. Our policy

is to consult with employees on any major

organizational changes, and to ensure that

appropriate processes are in place at each

of our operations to manage and resolve

any issues as they arise. We have processes

in place at all sites to effectively manage

any discriminatory incidents. There were no

incidents of discrimination or violation of

rights reported during 2009.

People

2,726

84

Employees by contract type

Part time

Full time

Nyrstar 19

Training and DevelopmentHaving the right people with the right

skills at the right time is critical to our

success. We have formal processes in place

to ensure that all of our employees receive

regular performance reviews. To ensure that

our people have the requisite skills, we have

several development programs in place.

Nyrstar Leadership Program

For our managers and in particular our

front-line leaders, we have the Nyrstar

Leadership Program that focuses on the

development of core people management

skills. This program is conducted at our

sites in the relevant local language.

Nyrstar Unlimited

As part of a broader cultural transfor-

mation initiative, we have the Nyrstar

Unlimited program that builds on these

critical people leadership skills and also

deepens self-awareness and reinforces the

desired attitudes and spirit necessary for

success. This program is being conducted at

our sites in Balen, Budel, Hobart, Port Pirie,

Clarksville, Auby and will shortly commence

at our newly acquired mine sites.

Graduate Development Program

The Nyrstar Graduate Program is a key

component of our overall talent attraction

and development strategy and helps us

to ensure that Nyrstar is an employer

of choice for young professionals. The

two-year Program is structured to provide

a depth and breadth of technical experience

and also to enhance interpersonal skills and

personal development. In 2009, Nyrstar

employed 14 graduates within the Nyrstar

Graduate Program, spread globally across

our operations.

Leading by example

We strongly believe that leaders lead

by example and as a result of this view,

the Nyrstar Management Committee

and senior management within Nyrstar

continues to upgrade its leadership

effectiveness by participation in an ongoing

development program. We have a set of

Management Operating Principles which

set out the core behaviours Nyrstar expects

of its Leadership team. These state that

Managers should think first, take bold

decisions, run fast, do the right things right,

play fair, create values and keep it simple.

To further reinforce and embed these into

leadership development, the Management

Operating Principles are also used as the

basis of a Leadership 360 degree feedback

programme aimed at those at a manage-

ment level.

Looking forwardOur key people priorities and targets for

2010 include:

• integratenewlyacquiredminesinto

Nyrstar people processes and procedures

• furthergrowourleadershipcapabilities

through continued roll-out of our suite

of Leadership Development Programs

• continueembeddingtheNyrstarValues

and Management Operating Principles

within our systems of reward and

broader human resources processes.

Number of employees by age

<20 20-29 30-39 40-49 50-59 60-69 >70

1,150

662

305

417

Number of employees by location

1962,614

Number of employees by gender

28248

Australia

Belgium

France

Netherlands

United Kingdom

United States

FemaleMale

1

778

246

111

550

2

1,122

20 Nyrstar

Nyrstar’s reputation is greatly influ-enced by our ability to communicate

in a consistent and professional manner with all our stakeholders,

including employees, shareholders, the investment community, media,

government and local communities. A core Nyrstar value is to be open

and honest, that is, we will commu-nicate openly and tell the truth,

building trust and simplifying our communications.

We consider our key external stakehold-

ers to be our shareholders, our customers

and suppliers, our regulators and the local

communities around our operating plants.

Our strategy for engaging our stakeholders

differs with each stakeholder group. In the

coming year we will be releasing a Corpo-

rate brochure and associated key issue and

site fact sheets, to more clearly explain to

our stakeholders who we are and what we

do. We will also be developing a Corporate

Social Responsibility (CSR) framework for

Nyrstar which will more clearly outline

how we will work with our stakeholders for

mutual benefit as our company continues to

grow in size and geographical spread.

Investors Nyrstar is a Belgium-based company listed

on the Euronext Brussels stock exchange.

As a Belgian listed company, Nyrstar is

obliged to provide investors in its shares

with all information necessary to ensure the

transparency, integrity and good function-

ing of the market. Nyrstar has a Disclosure

Policy which outlines our approach to

ensuring that we meet the requirements for

disclosure of company information and for

informing the investment community.

During 2009, we took further steps to

ensure that the financial community

understands not only the Nyrstar business

model, but also our strategy and vision. We

held a Strategy Day for investors, financial

analysts and media in June. We released

an updated version of our ‘Introduction to

Zinc and Lead Smelting Business’ during

a media and investor event held at Budel

in November, as well as presenting at a

number of investment and industry forums.

Copies of all presentation materials were

made available on the Nyrstar website at:

www.nyrstar.com/nyrstar/en/investors/

reports/

Customers and Suppliers Our customers are important to our success

and most of our engagement with them is

on an individual basis.

We conduct our business within the frame-

work of applicable professional standards,

laws, regulations and internal policies;

however we also acknowledge that these

requirements do not govern all types of

behaviour. As a result, Nyrstar has devel-

oped a Code of Business Conduct, which

covers all Nyrstar people and sites. Training

on the code was conducted at all sites and

corporate offices during 2009. The Code has

been translated into the relevant local lan-

guages for our operational sites and is now

a standard element of the Nyrstar employee

induction process.

We also updated our Nyrstar anti-trust and

competition law training program and con-

ducted a second phase of training sessions

to update and reinforce our guidance to key

employees.

There were no legal actions taken against

the company regarding anti-trust or

anti-competitive behaviour. There were no

non-compliances reported with regulations

or voluntary codes concerning any type of

marketing communications, product infor-

mation or labelling or breaches of customer

privacy.

Community and Society

Nyrstar 21

Looking forward to 2010, we will develop

further modules in the Compliance Pro-

gram which underpins the Nyrstar Code of

Business Conduct. We will also continue the

review of all our product health and safety

information as part of REACh legislation

requirements in the European Union, and

standardisation of safety data sheets across

the company as part of Globally Harmo-

nized System of Classification and Labelling

of Chemicals (GHS) implementation.

Communities and RegulatorsNyrstar recognizes the importance of hav-

ing healthy and sustainable communities

around our operating sites. We believe that

mutually beneficial relationships will assist

us to achieve our business objectives and

support sites in maintaining their licence to

operate. Our support can also contribute to

the viability of local businesses and support

services, and promote a safe and vibrant

community; which are important factors for

attracting and retaining skilled employees in

those regions.

Community Consultation Processes

Nyrstar sites in Europe and Australia have

undertaken community engagement ac-

tivities to a greater or lesser extent during

2009. Currently our consultation processes

vary between sites and issues, but include

formal meetings and consultation commit-

tees, newsletters, site open days, issues

based public meetings and mail outs, and

individual contacts. Due to company

restructuring processes which commenced

in February 2009 and resourcing con-

straints as a result of the economic crisis,

plans to have communications and stake-

holder relations responsibilities formally

allocated at each site in 2009 were

delayed. This is now planned for implemen-

tation in 2010.

There have been a number of key issues

where we have worked closely with our

communities and regulators over the past

year, including:

- development of the ‘Sustainable Indus-

trial Park Cranendonck’ (DIC), on land

adjacent to the Budel facility

- remediation of soil contamination at

191 properties in the Asturies neigh-

bourhood at Auby and development

of a social plan relating to workforce

restructuring at the Auby site

- continuing the Port Pirie tenby10

program to reduce children’s blood lead

levels in the local community

- installation of a electrostatic mist

precipitator to remove an unsightly

vi sible stack plume at Hobart

- publication of an updated community

information brochure by the Tasmanian

Government on the nature and extent of

historical soil contamination around the

Hobart Smelter, available at: www.dhhs.

tas.gov.au.

Public Policy and Regulation There are a number of issues on which

Nyrstar has chosen to engage with public

policy makers and regulators, either directly,

or through industry associations which we

belong to including the International Zinc As-

sociation, International Lead Association and

Eurometaux. The issues which Nyrstar has

provided input on in the past year include:

- Greenhouse Gas emissions trading

schemes in Europe and Australia.

The European Union is implementing

changes to its existing emissions trading

scheme (ETS) to come into force post

2012 and the Australian government

had designed an ETS scheme that was

proposed to come into force in 2011.

Nyrstar, together with other zinc smelt-

ing companies operating in the EU and

Australia have provided comment on

various ETS proposals, particularly

where these impact on international

industry competitiveness. Nyrstar’s

smelting businesses have qualified for

recognition as energy intensive trade

exposed industries in both the EU and

Australia during the year. Hobart and

Port Pirie sites also continued activities

and reporting under the Australian

Energy Efficiency Opportunities Act,

with public reports available on the

Nyrstar website.

- the EU’s Registration, Evaluation and

Authorization of Chemicals (REACh)

legislation which entered into force on

1 June 2007. Nyrstar participates in a

number of industry consortia formed for

the purposes of REACh compliance.

All Nyrstar legal entities are pre-

registered for the substances currently

produced or imported into the EU and

are working towards registration for

high volume products ahead of the

1 December 2010 deadline. Nyrstar

will be acting as the lead registrant for

several substances, including zinc metal.

22 Nyrstar

- revision of the EU Integrated Pollution

Prevention and Control (IPPC) Directive

and associated non-ferrous metals best

available techniques reference document

(NFM BREF Notes). These form the

basis for environmental permit conditions

for Nyrstar’s European smelter sites.

Nyrstar contributed both individual and

zinc industry submissions in the conti-

nuing revision process for the Directive

and NFM BREF Notes.

- the proposed restrictions on zinc prod-

ucts in Dutch Sustainable Procurement

legislation. Nyrstar worked with the

Dutch foundation ‘Stichting Duurzaam

Bouwmetaal’ (DBM) to ensure that the

findings of the EU Risk Assessment for

zinc were adequately considered in policy

development. This resulted in proposed

restrictions on galvanised products being

deleted from the policy.

- recognition of hazardous waste issues in

Tasmania and the need for a repository

for such industrial wastes. Nyrstar Hobart

has continued to work directly and with

the Tasmanian Department of Economic

Development and the Tasmanian Environ-

ment Protection Agency on this issue in

an effort to develop a secure repository

for current historical waste stockpiles on

the Nyrstar site.

- construction of water recycling facilities

in the Port Pirie region. The Port Pirie

smelter currently uses the River Murray

as a fresh water source. Nyrstar and the

Port Pirie Regional Council have been

petitioning the Federal Government to

provide Federal funding to support instal-

lation of a water recycling plant, allowing

Port Pirie township and smelter waste-

waters to be reused as a water supply for

the smelter and for community greening,

reducing pressure on the River Murray.

- developments in Belgian Corporate

Governance Code. Nyrstar is an active

member of the Working Group to the

Belgian Corporate Governance Commit-

tee which was founded at the initiative of,

amongst others, the Association of

Belgian Listed Companies and Euronext.

The Committee’s main objective is to

ensure that the Belgian Corporate Gov-

ernance Code remains relevant to listed

companies and is regularly updated in

line with corporate governance practice,

legislation and international standards.

- developments in general EU environmen-

tal legislation through participation in the

International Zinc Association (IZA) and

Eurometaux.

External Partnerships, Sponsorships and DonationsWe have a Nyrstar Group Standard that

outlines our approach to external part-

nerships, sponsorships and donations and

guides our actions in engaging and buil-

ding goodwill with key stakeholders in a

way that supports our business objectives.

Our guidelines state that we will not

support activities that do not reflect the

Nyrstar Values and will not support politi-

cal parties or campaigns. Sponsorships,

donations and in-kind contributions during

2009 were of a similar nature to the pre-

vious year and included support for local

community initiatives such as sporting and

cultural events.

Looking forward for 2010, we see that

there will be a continuation of most of the

programs and policy issues that were a prio-

rity for us in 2009, within the context of a

Corporate Social Responsibility framework.

Recognition of our performanceDuring 2009 Nyrstar received the follo-

wing awards and recognition relating to our

business activities and efforts to improve our

sustainability performance:

- NYSE Euronext Award 2009 for ‘Best

Performer Bel Mid’, awarded to Nyrstar

on 14 January 2010. The Bel Mid is the

Belgian index of medium sized Belgian

companies listed on Euronext Brussels.

Nyrstar received the award as a result

of the significant share price increase

over 2009. http://www.euronext.com/

fic/000/054/790/547903.pdf

- In the Belgian Association of Financial

Analysts (ABAF-BVFA) Awards for Best

Financial Information 2009, Nyrstar im-

proved its ranking to 17th, up from 47th

in 2008.

- GE Water “Ecomagination Leadership

Award”, awarded to Nyrstar Hobart on

31 March 2009 for a water saving

project which saves an estimated 26 mil-

lion litres of water per year at the Roaster

Cooling Tower. http://www.gepower.com/

about/press/en/2009_press/041009.htm

- The Minister’s Award for Excellence for

Employers of Australian Apprentices,

South Australian Country section,

awarded to Nyrstar Port Pirie on

18 August 2009. http://www.australianap-

prenticeships.gov.au/awards/2009/minis-

ters_awards_09.asp

Nyrstar 23

ERM Independent Assurance Report to Nyrstar

Environmental Resources Management Australia Pty Limited (ERM) was engaged by Nyrstar to provide independent assurance of its 2009 Sustainability Report, to the scope of work outlined below.

Scope of Work

The 2009 Sustainability Report (the Report) covers Nyrstar’s six major operations for the 12 months to 30 December 2009, unless stated otherwise in the text. These six operations are: Europe: Auby, Balen/Overpelt and Budel; US – Clarksville; Australia – Port Pirie and Hobart. This work was performed using ERM’s assurance methodology, which is in accordance with the Assurance Standard AA1000AS (2008). The criteria used were the AA1000AS (2008) Principles of Inclusivity, Materiality and Responsiveness, against which ERM reviewed Nyrstar’s performance reporting to provide Type 2 moderate assurance. To do this, we interviewed a number of personnel and reviewed relevant documentation for Nyrstar’s six major operations.

The subject matter for this moderate assurance consisted of the following sections of the Report: Performance Overview; Safety & Health; People; Environment; Community & Society. The scope of this assurance excluded financial information, as well as information relating to previous financial years. It also excluded a review of Nyrstar’s GRI Application Level, therefore this assurance statement makes no comment on Nyrstar’s self declaration of Application Level B+.

ERM’s Independence

Nyrstar was responsible for preparing the Report. The ERM team, led by Jo Cain, Partner, was responsible for expressing assurance conclusions in line with the scope of work agreed with Nyrstar. During 2009, ERM undertook auditing work with Nyrstar, including site data verification audits for some months of 2009.

Our Conclusion On the basis of its scope of work, and in consideration of the limitations of the Type 2 moderate assurance engagement presented above, ERM concludes that, for the specified subject matter, Nyrstar’s 2009 Sustainability Report appropriately addresses the AA1000AS (2008) Principles of Inclusivity, Materiality and Responsiveness for the 12 months to 30 December 2009.

Key Findings Based on the scope of work, and without affecting our assurance conclusion, ERM identified the following key findings against the Principles of AA1000AS (2008):

Inclusivity In Europe and Australia, Nyrstar implements community engagement projects, such as community consultation relating to remediation programs and the levels of lead in blood. Such engagement is less evident at the Clarksville site in the US, where community engagement relates primarily to participation in community events, such as open days.

Materiality Nyrstar sites focus on issues material to their operations. For example, Port Pirie focuses on the levels of lead in blood, as well as water recycling; Auby and Balen/Overpelt focus on soil remediation; and Hobart focuses on waste management and the visual impacts of its operations.

Responsiveness Nyrstar is implementing a number of projects in response to community concerns, such as Hobart’s approach to address the visible water vapour issue.

Good Practice• The use of RIMS, Nyrstar’s electronic system for the internal reporting of site data, covers Nyrstar’s six major operations and provides a strong

basis for reporting key data to Nyrstar management and for use in public reporting. • In 2009, RIMS was further improved by removing some secondary data processes, such as separate reporting spreadsheets for some

environmental data, and better classifying recordable injuries by employment type, thus making the RIMS database more efficient, robust and accurate.

• As in 2008, the majority of recommendations made as a result of last year’s site data verification audits and the Sustainability Report assurance audit have been addressed. This shows a commitment by Nyrstar to continually improve the systems and processes required for reporting.

Areas for Improvement • Along with site-specific community engagement plans, a Group community engagement and investment strategy would facilitate stronger

commitment and a more robust reporting framework. • Data collection for community investment is relatively ad hoc, using manual processes. Hence, record keeping and reporting could be improved. • As noted in 2008, the development of a procedure detailing data sources, collection, collation and calculation processes alongside any internal and

external reporting requirements would help facilitate a more robust approach, in particular when personnel change. This could include development of internal reporting controls to track updates to RIMS.

• A review of management standards could be considered to ensure that clear and consistent language is used alongside appropriate version control.

Nyrstar’s continued commitment to sustainability reporting represents good practice.

Environmental Resources Management Australia Pty Limited (ERM), 24 March 2010, Melbourne, Australia Environmental Resources Management Australia Pty Limited (ERM) is an independent global provider of environmental, social and corporate responsibility consulting and assurance services. ERM has prepared this statement for Nyrstar in accordance with ERM’s standard terms and the standard practised by members of the environmental consulting profession performing this type of service at the same time. No other warranty, express or implied, is given by ERM as a result of the provision of this statement. To the extent permitted by law, this statement is provided for informational purposes only, without the right to rely, and ERM will not be liable for any reliance which may be placed on this statement by a third party. This statement may not be used by any third party without ERM’s express written permission.

www.nyrstar.com