CONTENTS TITLE

Our MDs Report . . . . . . . . . . . .1 Our Vision and Values . . . . . . .2 Our HSEC Policy . . . . . . . . . . . . .5 Our Operation . . . . . . . . . . . . . .6 The Process Ownership Employment Economic Contribution Our Health Performance . . . . .7
2003 Performance Improvement Targets for 2004

Our Safety Performance . . . . .8

2003 Performance Improvement Targets for 2004

Our Environmental Performance10

2003 Performance Reportable Incidents Community Monitoring Greenhouse Environmental Evaluation Dust - Calciners - Boilerhouse - Other Fugitive Dust Sources Alkali Odour Noise Water Waste Management Land Revegetation Awards Improvement Targets for 2004

Our Community . . . . . . . . . . . .14

2003 Activities QAL Community Forum Community Involvement - Committees - Open Days Community Assistance - Sponsorships and Donations - QAL Community House Education - ALP Education Program - Tours Vocational Development - Work Experience - Vacation Employment - Apprentices - Second-chance Employment - Engineering Co-operative Program - Graduate Program Employment Diversity Improvement Targets for 2004

Glossary . . . . . . . . . . . . . . . . . .17 Your Feedback (attached)

Our MDs report

Welcome to Queensland Alumina Limiteds (QAL) 2003 Health, Safety, Environment and Communities report our first ever. Our choice to produce this annual report is based on providing all of our stakeholders, and in particular our neighbours, with an accurate and accountable measure of our health, safety, environment and community performance, and our commitment to future improvements. Although 2003 was a year of considerable environmental improvement, safety milestones and consolidation of community relations, we also recognise the room for improvement and this will be our focus for 2004 and beyond. I am particularly pleased to note recordable serious injuries for 2003 were close to the lowest on record. Two world-class safety milestones were a highlight. The site achieved 500 000 serious injury free work hours, and in the last six months of 2003 recordable injuries were comparable to benchmark industry safety performance. The challenge for 2004 is to further reduce recordable injuries and continue safety initiatives that contribute toward our goal of zero incidents. Hand in hand with safety, environmental impact is our biggest concern. According to survey data and feedback from our Community Forum it is also what concerns our community the most. Significant environmental improvements were made during the year and it is expected that this will continue as more of the $233 million five-year capital environmental improvement projects come on line. There is however still a way to go, and I thank the community, and especially our Community Forum, for their understanding and support whilst these projects are implemented. Environmental highlights during 2003 included: Commissioning of the $175 million Calciner Project to reduce alumina dust emissions by 92 per cent. Design issues prevented the Calciners from running at 100 per cent throughput at the end of 2003. This was a disappointment and one that will be rectified in 2004. Commissioning of a purpose built, cost neutral on-site waste transfer facility. The facility has resulted in an 85 per cent reduction in waste going to landfill which is a significant win for the environment and sets a standard for other industries. Commissioning of a thermal oxidiser odour destruction unit. Olfactometry tests in 2004 should confirm the unit reduced odour from the Digestion section of the plant by 40 per cent. Since commissioning of the treated effluent pipeline to recycle and reuse Gladstone citys wastewater, QAL has maintained its lowest fresh water usage ever. Transparency, integrity, communication and assistance remained the staple foundations of QALs community relations program. The QAL Community Forum continued to be a constructive and invaluable medium for feedback and social accountability. Feedback is a continual reminder for us that our standards are set by our communitys expectations, not minimum legal requirements. Another corporate and community issues survey will be carried out in 2004 measuring our performance as a corporate citizen, highlighting areas that require more focus and allowing us to work toward meeting community expectations. As this is our first report I encourage you to complete the enclosed feedback form assisting us to tailor future reports to best suit your needs. Thank you for taking an interest in our operations. I hope you enjoy the read. Kind regards

Johann van Zyl Managing Director

QAL Vision and Values

QAL Vision
QAL will be recognised as the best producer of alumina in the world The best to work for The best corporate citizen The supplier of choice The best to own The best to supply Our basic strengths will be the initiative, innovation and teamwork of our workforce, together with our ability to anticipate and effectively respond to change, and our commitment to continuous improvement across all facets of our business activity.

QAL Values
Safety Everyone gives safety top priority Everyone knows the safety rules No-one accepts unsafe practices or conditions We stop a job if it is unsafe Everyone keeps their workplace tidy and safe Teamwork We treat each other with fairness, dignity and respect We are involved in decisions that affect us We speak openly and frankly We listen to each other We change for the good of the team We develop and use our skills We keep each other informed Performance We strive to be the best We agree what is required of us and that it is realistic We work hard We act on good ideas Everyone knows how they are performing We recognise good performance We learn from our mistakes Customers We know who our customers are We ask our customers what they want We work with our customers to get the best result We continually improve the quality of our output We deliver Integrity Our behaviour is consistent with our values We are ethical, open, honest and fair We honour the trust others place in us We have the courage to face up to the issues and responsibilities that confront us We let others know before they get into strife Environment and Community Everyone knows how their work affects the environment We do not take short cuts which impact the environment We find better ways to look after the environment We talk with our community and respond to their views We are involved with community affairs and support community projects

Our HSEC Policy

QAL is committed to managing our workplace in a safe manner, free from incidents, injuries and illnesses. We will ensure that environmental impacts directly or indirectly related to QAL are minimised. We acknowledge the importance of effective communication both internally and to our stakeholders. Excellence in managing Health, Safety, Environment and Communities (HSEC) is essential to our long-term success and is a primary responsibility for all QAL employees and contractors.

Policy
Ensure HSEC principles are an essential part of QALs management and decision-making process. QALs objective is to demonstrate leadership through performance that contributes to maximisation of value. Create an atmosphere that motivates and supports all employees in their efforts to achieve a zero injury / incident working environment. Minimise emissions, giving priority to those that may present the highest risk to health and the environment. Audit the operation and business processes at regular intervals to assess HSEC performance and compliance. Prepare, test and maintain emergency procedures. Eliminate substandard behaviour and conditions (hazards) in the workplace. Address HSEC implications of development, operations, maintenance and closure. Continually evaluate and improve our business practices, processes and services to reduce risk. Engage in open and transparent communication with stakeholders to achieve greater HSEC understanding to ensure the long-term sustainability of QAL as a business in Gladstone. Consider and establish appropriate HSEC requirements when selecting business partners and contractors. Participate in voluntary and community programs such as the Greenhouse Challenge Program and Alumina Learning Partnership with local schools. Comply, as a minimum, with legal requirements and adopted international standards aiming to perform beyond regulatory requirements. Report on performance to our workforce, our owners, and the greater community.

MD Personal Commitments
I will ensure there are effective systems and processes in place to give effect to this Policy, I will hold leaders accountable for annual action plans to deliver HSEC improvements, I will authorise the allocation of resources, including appropriate training, sufficient for those plans to be implemented, Legal compliance is the absolute minimum performance standard expected, best practice is encouraged, Compliance with this Policy is a condition of employment for employees and contractors, Individual HSEC performance will be assessed each year, I expect the following guiding principles to be applied at all times to all tasks, by people in our business: Safer. Cleaner. Better.

Johann van Zyl Managing Director January 2003

Our Operation
QAL commenced in March 1967 with a production rate of 600,000 tonnes of alumina. Today QAL is the worlds largest alumina refinery, producing some 3.75 million tonnes of the worlds best smelter grade alumina. Estimated replacement value of QAL is approximately US$4 billion. The refinery covers 80 hectares of a 400-hectare site on the south-east outskirts of the city of Gladstone. Adjacent to the plant is a wharf and storage facility on South Trees Island, which is connected to the mainland by a causeway bridge. 3.Precipitation Forming alumina crystals The next step involves the recovery of alumina crystals from the caustic solution. In open-top tanks, the solution is stirred by mechanical agitation and seeded with previously precipitated alumina to assist crystal formation. 4.Calcination High-temperature drying of alumina The precipitated material (called hydrate) is washed and calcined at temperatures exceeding 1000 degrees Celsius. This forms the dry white anhydrous aluminium oxide powder, alumina, which is cooled and conveyed to storage.

Employment
In 2003, QAL operated with an average workforce of 995 employees, and some 300 plus contractors who varied with workload. At the end of 2003, 72 employees (excluding contractors) were female, representing 7.2 per cent of the total workforce. Of that 7.2 per cent, 74 per cent worked in administration, training, purchasing, accounting and human resources, 18 per cent in laboratories and research and development and 8 per cent in operations. The average workforce turnover rate in 2003 was 6.7 per cent, up from 5.1 per cent in 2002.

The Process
QALs bauxite supplies are mined at Weipa in far north Queensland. The bauxite is loaded onto specially designed, and QAL chartered, coalfired ships that transport the bauxite around Cape York and 2000 kilometres down to Gladstone. Alumina is produced at QAL through the continuous four stage Bayer Process involving: 1.Digestion Dissolving bauxites alumina content Bauxite is finely ground in mills, then mixed with a recycled caustic soda solution and steam in digester vessels operating at high temperature. This dissolves the alumina content of the bauxite and the solution is then cooled in a series of flash tanks. 2.Clarification Settling out undissolved impurities The impurities, which remain undissolved, are allowed to settle as a fine mud in thickening tanks. After several washing stages to recover caustic soda, this residue is pumped to storage dams. The solution of alumina in caustic soda is further clarified by filtration.

Ownership
At the beginning of 2003 QAL produced alumina on behalf of a consortium of four aluminium companies. During 2003 Alcan obtained Pechineys interests and QAL now produces alumina on behalf of three Owners. As of December 2003 the shareholdings in QAL were: Alcan 41.4% Comalco 38.6% Kaiser 20.0% Owners are supplied with alumina in proportion to their equity. A tolling charge per tonne of alumina is applied to recover the costs of processing, including operating, maintenance, raw materials, energy and administration. The following graph illustrates where alumina was shipped during 2003. QAL Alumina Shipments 2003

Economic Contribution
QAL contributed approximately $200 million directly to the local economy in wages, salaries and maintenance and capital work carried out by local contracting companies during 2003. Local goods and services were used where possible.

Our Health Performance

QALs goal is zero occupational health illnesses. To achieve this goal, a comprehensive program of testing and ongoing monitoring has been established to track potential causes and implement improvements. A team of health professionals are employed to monitor workplace conditions, provide medical services and health assessments, assist with rehabilitation programs and deliver preventative programs promoting good health practices. Other health related programs carried out in 2003 included: Stringent pre-employment screening procedures Regular monitoring for best-fit respirators for those working in asbestos removal areas Influenza vaccination program to reduce susceptibility Comprehensive work group training and awareness packages on the signs, symptoms and treatment of heat stress Implementation of random drug and alcohol testing on site Result 0

2003 Performance
Primary Target Zero recordable illnesses

Improvement Targets for 2004

Health program improvement targets for 2004 include: Delivery of a health monitoring program Reduction of plant noise Implementation of a lifestyle management program

In 2003, there were no new cases of occupational illnesses or diseases recorded. QALs Occupational Hygienist undertook comprehensive monitoring to reduce or eliminate exposure to noise, heat stress, hazardous substances and airborne dusts. QAL has a voluntary health monitoring service for all employees. In 2003, 54 per cent of employees aged 40+ (the target group for 2003) participated in the health monitoring program.

Our Safety Performance

Safety is QALs highest priority and there is a range of systems and management tools in place to identify and reduce or eliminate risks, report and investigate incidents and monitor and improve individual safety behaviour in order to achieve a zero incident working environment. QAL is responsible for the safety of every person on site and hence plant safety statistics are a combination of QAL employees and contractor personnel.

2003 Performance
Primary Target Result Total Case Incident Rate <1.6 2.25 The Total Case Incident Rate (TCIR) for the year was 2.25 (the number of lost time cases, medical treatment cases and restricted work cases per 200 000 work hours), against a target of <1.6. The Lost Time Injury Frequency Rate (LTIR) for 2003 was 0.41 (number of lost time cases per 200 000 work hours). Despite not meeting target, 2003 proved to be one of QALs best ever years for safety reaching two worldclass milestones which were: Achieving 500 000 serious injury free work hours TCIR of 1.2 over the last six months of 2003 which is comparable to benchmark industry safety performance QAL Total Case Incident Rate per 200,000 work hours
(Lost Time + Medical Treatment + Restricted Work)

QAL Total Case Incident Rate for 2003 per 200,000 work hours
(Lost Time + Medical Treatment + Restricted Work)

Safety programs implemented during 2003 included: Delivery of a fatality prevention focus program involving a series of monthly focus activities, training packages and awareness posters Reinvigorating the QSafe behavioural safety program by extending the program to cover all major contract workgroups Reducing low grade manual work with implementation of robotic machines to descale tankage, automatic machines to assist in large valve isolations and scale munching pumps Review of critical Job Safe Procedures Redefining the underpinning principles for housekeeping and upgrading the housekeeping check sheets for each area Development of safety reward and recognition programs

The following graph shows performance on a monthly basis for 2003 and highlights the significant improvement in the second half of the year.

Contractors were of particular focus in 2003. Additional safety programs included: Involving major contractors in behavioural safety programs Promoting the Mentoring system Continuing to refine the Contractor Safety Management System Reviewing contractor training and induction requirements There were two safety initiatives of particular note in 2003. One was a series of tenderheart posters and stickers developed and displayed around site to encourage employees to consider the potentially dramatic personal losses by not working safely (eg loss to the family, lifestyle, income etc). The second was the implementation of a Job Safe Analysis (JSA) procedure ensuring a thorough risk analysis is carried out prior to a task being undertaken.

Improvement Targets for 2004

Safety requires constant vigilance. 2004 will see continuation of safety programs that worked well in 2003 plus a mix of improvement targets that include: Entrenching the JSA process in the plant safety program Further engaging the contract workforce in the QSafe process Surveying the workforce to identify further improvement initiatives Delivery of QSafe planned activities Continuation of the personal safety awareness program Reducing strain and sprain and laceration incidents Conducting a gap analysis against AS4801 safety management system with a view to certifying QALs safety systems to this standard in 2005 The target TCIR for 2004 will be <1.6 reducing to <1.0 in 2008.
Tenderheart safety campaign poster

Our Environmental Performance

QAL is committed to reducing the environmental impact of its operations. Significant improvements were made during the year and it is expected that this will continue as more environmental projects are implemented. A total of $233 million is being spent on environmental improvement projects over a five year period. In the last two years over 80 per cent of total capital expenditure was dedicated to environmental improvements. Operations at QAL are conducted under an Integrated Environmental Management System, which is a system of checks and balances ensuring compliance with QALs environmental authority to operate. QAL has been accredited to the international standard ISO 14001 since 1998 and has maintained certification since that date.

2003 Performance
Primary Target No Reportable Incidents Result 4

Community Monitoring
QAL has a comprehensive complaint handling system, which includes thorough investigation followed by the development of mitigation measures where possible, and ongoing review of the effectiveness of those measures. A total of 339 community complaints were received during 2003, relating to dust, alkali, odour and noise. The distribution is shown in the following graph. Distribution of Community Complaints 2003

Reportable Incidents
During 2003, QAL reported four incidents to the Environmental Protection Agency (EPA): In February, QAL breached its fiveminute emission licence for dust emissions from the boiler house stacks while burning wet coal following excessive rain. In February, a power interruption external to QAL resulted in a shut down of the Calcination plant. This in turn meant that the kilns had to undergo a statutory purge of combustible gases. This resulted in a breach of the five-minute emission licence for dust emissions from the Calcination stacks. In May, a process upset in the Digestion section caused multiple boiler trips. This resulted in a breach of the five-minute emission licence for dust emissions from the boiler stacks. In July, another power interruption external to QAL resulted in shutdown of the boilers. This in turn meant that the boilers had to undergo a statutory purge of combustible gases. This resulted in a breach of the five-minute emission licence for dust emissions from the boiler stacks.

Greenhouse
Total greenhouse gas emissions in 2003 were 4 257 000 CO2 equivalent tonnes, an increase of 145 000 tonnes or 3.5 per cent on emissions in 2002. This increase was a result of a 4.4 per cent increase in alumina production (180 000 CO2 equivalent tonnes) offset by savings from energy reduction projects (14 000 CO2 equivalent tonnes) in the process and improved process efficiencies (21 000 CO2 equivalent tonnes). On a tonne CO2 per tonne of production basis, emissions in 2003 were 13.1 per cent below 1990 levels.

New Calcination Plant

Environmental incident reports were submitted to the EPA for each incident.

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QAL Greenhouse Gas Emissions, in Tonnes of CO2 per tonne of alumina 1990 - 2003

The investigation found that the impact on air quality in Gladstone due to the refinerys activities is significantly lower than Australian and internationally recognised standards under normal operating conditions. Furthermore, it also confirmed that when the plant is operating normally there is a portion of the local community who are annoyed by the plant odour. In addition, a health assessment study based on worst-case exposure scenarios, carried out by an independent expert (Toxicos Pty Ltd), found that all health hazard indices due to QALs emissions were within acceptable health guidelines. Although emissions are within guidelines under normal operating conditions, they are still a concern for the community as illustrated by community complaints, and therefore a concern to QAL. Negotiations with the EPA in 2003 led to Environmental Management Programs (EMP) being entered into for dust and alkali emissions.

Dust
Calciners In 2003, three new $175 million stateof-the-art gas suspension calciner units, designed to replace the existing nine rotary kilns, were commissioned. Much to the disappointment of all stakeholders the units were only producing at 80 per cent throughput at the end of 2003 due to design issues. This meant that two of the existing nine rotary kilns were still in operation at that time. Design changes to bring the units up to full production capacity will be implemented in 2004. However, the new Calcination plant is world-class and has already resulted in dramatic improvements in environmental performance, exceeding design expectations. Data demonstrates the reduction of fugitive alumina dust emissions will be more than the anticipated 92 per cent, closer to 95 per cent. In addition to the dramatic reduction of alumina dust emissions, natural gas usage has reduced with a consequent reduction in greenhouse gas emissions. Commonwealth Government funding through the Australian Greenhouse Office supports this project.

QALs forecast, for the next two years with actions, are 4 170 000 CO2 equivalent tonnes for the reporting year 2004 and 4 181 000 CO2 equivalent tonnes for the reporting year 2005.

Environmental Evaluation
In April 2002, the EPA issued a Notice under the Environmental Protection Act requesting QAL commission an environmental investigation into emissions from its alumina refining operations. In response to this request, QAL commissioned investigations by professionally recognised air pollution experts Pacific Air and Environment (PAE). This report was submitted to the EPA for consideration in February 2003.

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Our Environmental Performance

The final stage of the Calcination Project started with decommissioning one of the nine rotary kilns from the old calcining section. The remaining eight will be decommissioned in 2004. Boilerhouse A three-year EMP was submitted to and accepted by the EPA to significantly reduce fly ash emissions from the seven coal fired boilers. The EMP reiterates QALs commitment to install baghouse technology representing the best environmental management practice available. The first installation of a baghouse was carried out on boiler six during a maintenance turnaround in June 2003. Environmental performance from this installation has exceeded design expectations reducing from 80 milligrams per normal cubic metre (mg/Nm3) to 10 mg/Nm3. A second boiler will be fitted with a baghouse in 2004 and the remaining boilers thereafter. Other Fugitive Dust Sources A three-year EMP was submitted to and accepted by the EPA to reduce fugitive dust emissions from coal and alumina handling systems. Projects are being implemented to reduce emissions from coal unloading and stockpiling and from alumina belt transfer stations.

Alkali
A three-year EMP was submitted to the EPA in December 2003 to address fugitive alkali emissions. The objectives of the EMP are to control as much as possible, alkali emissions from the plant. Earlier in the year QAL began researching how to set up a reliable measurement technique for determining alkali emissions outside of QAL boundaries. The research segment of the EMP is due to be complete by April 2004. Implementation of projects to reduce emissions will commence in 2004.

Water
Water is essential to refinery operations. Since commissioning of the treated effluent pipeline to recycle and reuse Gladstone citys wastewater in November 2002, QAL has maintained its lowest fresh water usage ever. The following graphs illustrate treated effluent water usage since commissioning and fresh water usage over time. Recycled Treated Effluent from Gladstone City Treatment Plant, in megalitres

Odour
Odour from the plant is generated from the Digestion section where decayed organic matter in the bauxite is broken down in the refining process. A significant proportion of the odour reduction program was installed in 2003 with the commissioning of a $3.5 million Thermal Oxidiser. The only one of its type in Australia, the Oxidiser essentially burns non-condensable gases coming from the heater deck in Digestion (a major source of plant odour) at a high temperature, eliminating the odour. It is estimated that testing in 2004 will show the project has successfully reduced odour from the Digestion section by 40 per cent.

QAL Water Usage from Awoonga Dam, in megalitres

Noise
QAL is committed to reducing peak noise events from the plant. One of a total of three high pressure steam lines between the Boilerhouse and Digestion was fitted with a silenced relief valve during 2003. The valves eliminate noisy events when previously boiler pressure relief valves lifted following process upsets. The remaining two Digestion units will be fitted in January 2004.

Thermal Oxidisor for reducing plant odour

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Waste Management
June 2003 saw the official opening of the on-site waste management facility operated by Transpacific, by EPA Director General, James Purtill. QAL is the first major industry in Australia to invest in a purpose built dedicated waste management facility. The cost-neutral facility allows QAL to segregate waste, recycling approximately 85 per cent of materials mainly metal, cardboard and wood. This has significantly reduced waste going to landfill. In a sideline benefit, glove recycling has also proved very successful. Out of 30 000 pairs of gloves recovered during 2003, 25 000 were recycled through an off-site facility and will be reused in the plant in 2004.

Improvement Targets for 2004

2004 will be a year of further environmental improvement through consolidation of current projects and initiatives that include: Determining environmental effectiveness of the new Calcination plant for odour Conducting a risk assessment of the environmental Aspects and Impacts Register
EPA Director General opening the on-site waste management facility

Awards
At the 2003 Gladstone Region Environment and Sustainability Awards, QAL won the Waste Management Award for the Treated Effluent Pipeline Project and was also the Mayors Environmental Champion for being a business or industry which made the contribution most worthy of recognition and acknowledgement. In addition, QAL was highly commended by the Australian Institute of Engineers (Queensland) for the Treated Effluent Pipeline Project. The $8 million project, jointly managed with Gladstone City Council, was fully commissioned on time and within budget.

Determining the effectiveness of the heater vent odour destruction project Development of an alkali deposition measurement technique Development of a project list for reducing alkali emissions Tracking of developments in greenhouse gas abatement measures through the Australian Aluminium Council The target for 2004 is no reportable incidents.

Land Revegetation
Throughout the year, QAL continued with long-term land revegetation on the plants ash ponds, a portion of number one red mud dam and the buffer zone between QAL and the Barney Point community. Long-term revegetation work on number one red mud dam has been extremely successful with well established trees and a large supply of grass for native animals. Three major planting and mulching sessions over 2003 by the QAL Tree Planting Committee resulted in 1500 new trees in the buffer zone between QAL and Barney Point. The Committee is aiming to plant 2000 trees in 2004.

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Our Community
As the oldest and largest corporate citizen in Gladstone, QAL forms an integral part of the regions social and economic fabric. QAL has a long established record of developing community infrastructure and supporting development. Continuation of mutually beneficial relationships with the community is essential to corporate standing and long-term sustainability the operation cannot grow or prosper without the support of its community. Support of the community is founded on solid two-way communication, participation and financial assistance to organisations, events and causes with particular focus on local initiatives relating to environment, education and community development.

2003 Activities QAL Community Forum

The QAL Community Forum, established in 2001, is a valuable and constructive asset within the community relations program. The group is made up of QAL employees and volunteer community representatives who have an interest in the impact QAL has on the local community. During 2003, QAL held six Community Forums with an average of twenty participants at each meeting. The QAL Community Forum operates under the following principles: To continuously reduce the impact on the community while maintaining the operation of the plant To work together and achieve results to the satisfaction of the broader community To achieve a mutual understanding of technical environmental matters through education and sharing of information via an agreed and shared database Forum input, activities and outcomes for the year were numerous covering mainly environmental improvement projects (see Environmental Performance section), however other highlights included: Establishing an annual meeting between the QAL Board of Directors and Forum representatives Involving the community in monitoring environmental impacts outside the QAL boundary Introduction of regular updates on environmental improvement projects, community relations activities and complaints The Forum continues to be a constructive medium for provision of information relating to mutual areas of

interest. Meetings will continue to be held approximately every second month during 2004, beginning February. The minutes of all Forum meetings, as well as progress reports are published on the website at www.qal.com.au/community/

QAL Community Forum members inspecting vegetation on the red mud dam

Community Involvement
Committees QAL is a member of numerous stakeholder groups ensuring industry representation, sustainability of operations and input into decisionmaking in the local area. Membership includes, but is not limited to, Gladstone Area Industry Network (and associated subcommittees), Port Curtis Catchment Working Group, Port Curtis Integrated Monitoring Steering Committee, Gladstone Region Sustainability Group, Landcare / Land for Wildlife and Gladstone City Council Environmental Group. Open Days As part of the Companys commitment to open and transparent communications and the promotion of environmental improvement projects, QAL participated in several community open days during 2003 including Gladstone Ecofest and Port Open Day. In addition to the Community Forum and 1800 181 110 Community Relations Hotline, open days provide further opportunity for community members to discuss operations, community programs and environmental improvement projects.

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Community Assistance
Sponsorships and Donations As every year, QAL provided both financial and in-kind support to community groups and organisations. During 2003, 80 groups received assistance including Gladstone Harbour Festival, Ecofest, Roseberry Youth Services, Queensland Training Awards, Martin Hansen Art Awards and the Gladstone Eisteddfod. QALs sponsorship and donations program provides support in the areas of environment, community development, youth, art, music and culture, health and welfare and sport and recreation. QAL also awarded school bursaries, tertiary academic prizes and university scholarships. In addition to financial support, in-kind redundant equipment such as computer equipment, conveyor belt and lighting was donated to local community groups. QAL Community House In August 2003, the QAL Community House was opened as headquarters for the QAL Retirees Club, and a free meeting place for not-for-profit community groups. The House is complete with boardroom table and chairs, TV and video, white board, kitchen and bathroom facilities suitable for groups of up to ten. In the second half of the year, QAL Community House was utilised by retiree, environmental, fundraising, respite health and sporting groups.

Education
ALP Education Program QALs Alumina Learning Partnership (ALP) continued in 2003 with one of its most successful years yet. A total of 1592 students from 24 schools within the Gladstone region were schooled through the science and environment modules. The ALP proved its community worth taking out the Ecofest Gladstone Area Environment and Sustainability Award for Educating our Community for 2003. The program continues to be an asset to the local schools as well as to the Company as an education tool enhancing community knowledge of operations and environmental improvement projects. Tours For many years QAL has routinely offered free tours of the refinery for schools, community and seniors groups. During 2003, approximately 1160 people not directly involved in QAL business visited the refinery, representing a 32 per cent increase over 2002. Over ninety per cent of the 2003 visitors were made up of community groups, school groups and university students. As with previous years, the QAL Retirees Club provided a guide for the free once-a-week tourist tours.

Vocational Development
Work Experience During 2003, QAL ran a school based work experience program to introduce high school students to industry. Fifty students from five local schools were hosted for one week each, providing them with an invaluable insight into possible future careers. The program will run again in 2004. Vacation Employment QAL offered a paid employment program for tertiary students on their summer vacation. The annual program offers a unique opportunity for tertiary university students willing to give up their three months of holiday for practical work experience. Vacation students are usually in their penultimate year and are employed to carry out specific project work for a 10-week period. QAL employed 11 vacation students over the 2003/04 summer in the areas of mechanical, chemical and processing engineering, communications, psychology and occupational health and safety.

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Our Community
Apprentices January 2003 saw a significant increase in QAL apprenticeships. QAL welcomed 22 new apprentices to site, the first intake of a four-year program to increase indentures to 100, making QAL the largest employer of apprentices in Queensland. Of QALs new apprentices one was training in refrigeration, 10 electrical/instrument and 11 fitting and turning. Second-chance Employment QAL worked in conjunction with Youthtrek to provide supervised employment for youths at risk. The program gives local youths a secondchance by providing employment opportunity, support, direction and guidance. The success of the program, thanks to the excellent support and supervision from key employees and the willingness from Youthtrek clients, has ensured its implementation for another year at QAL. Engineering Co-operative Program QAL has a long-standing relationship with Central Queensland University (CQU) and the Engineering co-op program demonstrates one of the many positive outcomes from this mutually beneficial relationship. Since 1996 QAL has hosted second and third year Engineering Co-operative students. As part of the CQU Co-op degree students must undertake two six-month blocks of practical project training. In 2003 QAL hosted one student as part of this program. Graduate Program In 2003 QAL employed two graduate Engineers in the Research and Development section and one Chemist in the Control Laboratory as part of the companys formalised two-year Graduate Program. The highly sought after program offers selected graduates an opportunity to gain extensive experience and knowledge within their field in a short space of time. The program develops them into a valuable commodity and prepares them for future industry positions. Graduates are put on a tour of duty working in all sections for the first year and then concentrate on specialised project work for their second year.

Employment Diversity
In 2003, QAL established an internal Equal Employment Opportunity Working Group (EEOWG) to assist in the development of equal employment opportunity initiatives for minority groups across site. Terms of reference, a communication plan and work scopes were developed in 2003 for action in 2004. Particular focus for 2004 will be the EEO framework, internal appeals procedures and family friendly initiatives.

Improvement Targets for 2004

In addition to the regular Community Relations program as outlined in this section, focus areas and improvement targets for 2004 include: Development of an interactive website Additional modules for the Alumina Learning Partnership program Introduction of a quarterly community newsletter Reduction of community complaints Publishing a Health Safety Environment and Communities report Commissioning of a Corporate and Communities Issues Survey

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Glossary
Alkali is any class of substance which has a pH higher than seven. In the QAL context, alkali emissions can refer to fugitive lime dust, alumina dust or aerosol generated from plant process liquor. Alumina is aluminium oxide. It is extracted from bauxite in the Bayer Process and is subsequently the principal raw material in the electrochemical process by which aluminium is produced. AS4801 is the Australian Standard for an occupational health and safety management system. Aspects and Impacts Register is a register of the organisations actual or potential risk of causing environmental impact. The register determines the priority for implementing environmental controls. Baghouse is a device that is used to trap fine dust particles from an air stream, similar in principle to a vacuum cleaner. Bauxite is mainly hydrated aluminium oxides and is the principal ore from which alumina is made. CO2 Equivalent Tonnes refers to carbon dioxide equivalent. The different greenhouse gases have different global warming potencies. Therefore, to compare the relative effect of the different gases they are compared to the effect of an equivalent amount of carbon dioxide. For example, one tonne of N2O is equivalent to 210 tonnes of CO2, expressed as 210 CO2 equivalent tonnes. Community Complaint is an issue raised by a member of the community relating to the operation, whether resolved or not. Environmental Management Program (EMP) is an agreed environmental improvement program between an organisation and the Environmental Protection Agency. Environmental Protection Agency (EPA) is Queenslands governing body for environmental matters. Fly Ash is residual dust as a result of the combustion of coal. Greenhouse Challenge Program is an Australian Greenhouse Office initiative for companies to voluntarily report and abate greenhouse gas emissions. HSEC is the abbreviation for Health, Safety, Environment and Communities. Integrated Environmental Management System is an environmental management system. ISO 14001 is an international standard for environmental management systems. Lost Time Injury (LTI) is recorded when an incident results in a person losing one whole shift due to an injury. Lost Time Injury Frequency Rate (LTIR) is the number of LTI's per 200 000 work hours. Medical Treatment Case is an injury or illness requiring treatment by a medical doctor. Restricted Work Case (RWC) is recorded when an incident results in an employee returning to work, but who cannot perform the full duties of the permanently assigned job due to the injury. Serious Injuries include medical treatment cases, restricted work cases or lost time injuries. Total Case Incident Rate (TCIR) is the total number of lost time cases, medical treatment cases and restricted work cases per 200 000 work hours. Treated Effluent is secondary treated water from the Gladstone City Council Sewage Treatment Plant.

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Queensland Alumina Limited Parsons Point Gladstone Queensland 4680 Australia Tel +61 7 4976 2211 Fax +61 7 4976 2300 media@qal.com.au www.qal.com.au