2010
          
        
        
          AMBATOVY SUSTAINABILITY REPORT
        
        
          27
        
        
          C1. Environmental Performance
        
        
          Ambatovy’s Air Quality and Noise Management Plan was
        
        
          developed to ensure that systems in place achieve the
        
        
          required objectives through data collection and analysis.
        
        
          Key components of the Air Quality and Noise Management
        
        
          Plan include:
        
        
          3
        
        
          The collection of meteorological data in the area to
        
        
          help understand dispersion characteristics at any
        
        
          given time.
        
        
          3
        
        
          Regular monitoring to ensure that construction and
        
        
          operational activities do not have a negative effect on
        
        
          air quality and noise levels for employees and local
        
        
          communities.
        
        
          3
        
        
          The verification of air quality and noise emissions from
        
        
          mobile and fixed equipment against baseline levels
        
        
          and standards.
        
        
          3
        
        
          Correct maintenance of all equipment and machinery.
        
        
          
            Environmental Incidents
          
        
        
          Ambatovy operates an Incident Reporting System (integrated
        
        
          with the Health and Safety and Security Departments), which
        
        
          encompasses losses of containment and loss of biodiversity.
        
        
          All spills are tracked and documented as part of the internal
        
        
          compliance reporting process.
        
        
          8
        
        
          The majority have been
        
        
          small fuel spills. Spills are categorized into three levels as
        
        
          shown in the table below. Figure 1 gives a breakdown of our
        
        
          environmental incidents in 2010, by level.
        
        
          Figure 1: Environmental Incidents by Level
        
        
          
            Environmental Incidents in 2010
          
        
        
          n
        
        
          Level 1
        
        
          n
        
        
          Level 2
        
        
          n
        
        
          Level 3
        
        
          The main concern at the mine site is the risk of fuel and oil
        
        
          spills from storage tanks, generators and vehicles, or from
        
        
          the ore screening machinery. Ambatovy has a comprehensive
        
        
          Emergency Response Plan for a pipeline spill or breach. A
        
        
          pipeline breach is considered an extremely unlikely event.
        
        
          Furthermore, in the event of a leak, the slurry in the pipeline
        
        
          is a benign mixture of earth and water that does not pose a
        
        
          serious contamination risk.
        
        
          The plant site is the most complex of the Project’s
        
        
          components and therefore a wide range of possible spills
        
        
          could occur. The full range of possible spills has been
        
        
          identified and their respective risks have been assessed
        
        
          to ensure that we understand and have controls in place
        
        
          to address them. In some instances we have conducted
        
        
          detailed risk assessments to identify potential severity and
        
        
          controls. The emergency response team has prepared itself to
        
        
          respond to a large variety of potential issues that may arise;
        
        
          this effort includes “dry runs” to practice the implementation
        
        
          on response to incidents.
        
        
          Off-site spills have also been taken into consideration. Main
        
        
          spill risks are fuel leaks from vehicles such as cars, trucks,
        
        
          trains, ships and airplanes. Each has its own protocol for
        
        
          dealing with leaks or spills and the risk is no more significant
        
        
          than any other operation using such vehicles. There were no
        
        
          spills from the port-to-plant infrastructure or railway in 2010.
        
        
          There is an extensive safety plan and vigilant monitoring
        
        
          due to the proximity of this transportation infrastructure to
        
        
          residential areas. Possible risks include:
        
        
          3
        
        
          The pipeline that carries ammonia from the port to the
        
        
          plant and storage tanks located off-site.
        
        
          3
        
        
          Spills of bulk material upon loading and transport.
        
        
          3
        
        
          Spills from the rail line, which carries non-toxic
        
        
          products, primarily limestone and coal, and is
        
        
          separated by a fence from the densely populated
        
        
          areas of Toamasina through which it passes.
        
        
          
            Hazardous Waste
          
        
        
          Ambatovy is required to have systems to stabilize, dispose,
        
        
          treat or destroy all waste, by-products and output materials
        
        
          created by its operations.
        
        
          8
        
        
          Incidents shown here are based on construction-phase parameters and construction contractor reports. During 2010, an integrated incident reporting mechanism was
        
        
          created that will monitor all environmental spills and incidents – both construction and operations related. As we transition from construction to operations, and for the
        
        
          2011 report, we will use this latter incident level structure.
        
        
          
            Level Classification Concern
          
        
        
          
            Clean-up
          
        
        
          
            Volume
          
        
        
          1
        
        
          Minor
        
        
          No risk of contamination of sensitive areas
        
        
          Clean-up using kit on site
        
        
          Volume is  < 25 litres
        
        
          2
        
        
          Significant
        
        
          No risk of contamination of sensitive areas Clean-up using kit on site
        
        
          Volume is
        
        
          or specialized external resources (excavation,
        
        
          between 25-100 litres
        
        
          pumping, etc.); spill inside site limits
        
        
          3
        
        
          Major
        
        
          Contamination of sensitive areas
        
        
          Clean-up using specialized external resources; Volume is  > 100 litres
        
        
          decontamination required
        
        
          
            2 4
          
        
        
          
            36