As a fundamental goal, the Bauxite, Alumina and Specialty Chemicals Group strives to supply high-quality, low-cost raw materials, while minimizing any environmental footprint. We add value by pursuing the most cost-efficient methods and technologies available, while also implementing best practices in occupational health and safety, environmental performance, community relations and corporate ethics. Many of our facilities have begun the process of implementing an integrated EH&S management system according to the ISO 14001 and the OHSAS 18001 standards. In December 2001, our Burntisland alumina plant in the U.K. was the first bauxite, alumina and speciality chemicals facility to be registered to OHSAS 18001 by the British Standard Institute.

Sustainability issues confronting the Bauxite Alumina and Specialty Chemicals Group include land use and site rehabilitation, native species protection, energy consumption, water consumption, dust, noise and emissions such as carbon dioxide, sulfur dioxide and nitrogen oxide as well as waste such as bauxite residue, caustic by-products and landfill. In 2001, the Company recorded pretax charges of US$246 million to increase its environmental reserves, of which $64 million is related to bauxite residue site rehabilitation at two alumina refineries—Vaudreuil in Canada and Burntisland in the U.K.

Bauxite residue (red mud) is the normal residue associated with extracting alumina from bauxite. The Vaudreuil plant has two sites to dispose of its bauxite residue. One of these is filled to capacity and the other remains in operation. The Burntisland plant was built in 1917 and is one of the oldest plants in the world producing specialty chemicals. The plant has one active bauxite residue disposal site.