SUSTAINABILITY REPORT 2021 - AFR
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SUSTAINABILITY REPORT 2021
Macmahon Sustainability Report 2021
Contents
Year in Review 2 Social 29
About this Report 4 People Management 30
Safety 32
Letter from the Chair 6 Health and Wellbeing 32
Sustainability Policy 7 Integrated Management System 33
Diversity, Equity and Inclusion (DEI) 34
Our Business 8
Human Rights and Modern Slavery 35
Map of Operations 10 Community Partnerships
and Investment 35
Supply Chain 12 Indigenous Engagement 39
Vision, Values and Strategy 14
Governance 41
Sustainability Approach 16 Corporate Governance 42
Material Sustainability Topics 17 Business Ethics and Transparency 43
Risk Management 44
Stakeholder Engagement 20
Performance Data 45
Environment 23
Climate Change 24 Global Reporting Initiative Index 48
Land Rehabilitation 26
Water Management 26
Waste Management 26
Dangerous Goods and Contamination 27
Environmental Incidents, Impacts
and Compliance 27
1
Macmahon Sustainability Report 2021
Financial Year 2021
YEAR IN REVIEW
ENVIRONMENT
NEW 243t 25% 187ha
New Environment Tyre repair Solar panels Land rehabilitated
and Social program diverted supply over 25% of for our clients
Performance 243 tonnes of head office power across Australia
working group tyres from landfill consumption and Southeast Asia
GOVERNANCE
New 8 board No reported
Sustainability members incidents of
Policy (5 independent corruption
including chair)
2
Macmahon Sustainability Report 2021
0.1% Malaysia and South Africa 3% Other 3% Other 3% Other
2% Oil and Lubes 2% Oil and Lubes 2% Oil and Lubes
2% Transport 2% Transport 2% Transport
21% Indonesia
3% Corporate 3% Corporate 3% Corporate
4% Rental 4% Rental 4% Rental
5% Tyres 5% Tyres 5% Tyres
Chain 6% Consumables Supply Chain
Supply Chain 6% Consumables
53% Equipment Supply Chain 6% Consumables
53% Equipment Supply Chain 53% Equipment
and Spares and Spares and Spares
untry
6% Services
by Country
‘Silver’ 6%
by Category
award
Services for the
by Category
6% Services
by Category
7% Labour hire/
2020 Annual
7% Labour hire/
Report 7% Labour hire/
79% Australia 79% Australia
Recruitment Recruitment Recruitment
8% Subcontractor 8% Subcontractor 8% Subcontractor
SOCIAL
GENDER DIVERSITY IN INDONESIA DIVERSITY
% 29%47% 47% 47%
70% 70%
e Female Female Female Female
Indigenous Indigeno
Martabe Jakarta Office Workforce at the Argyle
Workforce Diamond Mine
NEW
Modern Slavery
Statement
AWARD-WINNING
Strong Minds, Strong Mines, mental,
physical and social health program,
available to the wider mining industry.
3
Macmahon Sustainability Report 2021
About this Report
PURPOSE IMPORTANT INFORMATION
This Sustainability Report has been prepared for Macmahon Holdings Limited (ACN 007 634 406)
Macmahon stakeholders, including our people, is the parent company of the Macmahon group
shareholders, investment analysts and investors, of companies. In this Report, unless otherwise
clients, government, non-government organisations, stated, references to ‘Macmahon’ the ‘Company’
suppliers, financial organisations, and the broader refer to Macmahon Holdings Limited and its
community in which we operate. controlled entities.
It covers Macmahon’s key sustainability approaches, The information in this Report covers all offices,
actions and performance for the 12-month period sites and facilities wholly owned and operated by
ending 30 June 2021 (FY21). Macmahon, including the operational footprint
which covers the activities of Macmahon Holdings
The report has been prepared in accordance with Limited and its subsidiaries.
Global Reporting Initiative (GRI) Standards: Core
option. The GRI context index is available on pages This Sustainability Report should be read in
48 to 49. conjunction with Macmahon’s other periodic and
continuous disclosure announcements lodged with
FEEDBACK the Australian Securities Exchange (ASX), including
Please forward any comments or requests for the FY21 Annual Report and FY21 Corporate
additional information to: Governance Statement, all of which are available at
www.macmahon.com.au.
Email
investors@macmahon.com.au VISIT
www.macmahon.com.au
Post www.facebook.com/macmahonmining
Investor Relations www.linkedin.com/company/macmahon
PO Box 198
Cannington WA 6987
i First-year maintenance apprentices at Perth workshop
4
Macmahon Sustainability Report 2021
BATU HIJAU
INDONESIA
2018
Soil reconstruction and replacement
of top soil. Soil samples are collected
and analysed to maintain optimum
performance and manage costs.
2019
Twelve months later and native
vegetation is growing well.
2020
Essential planning and preparation to
control erosion results in vegetation
returning to the mined land.
5
Macmahon Sustainability Report 2021
Letter from the Chair
On behalf of the Macmahon Board, I am pleased to present
Macmahon’s Sustainability Report for FY21. This standalone report
presents our ongoing commitment to integrate Environmental, Social
and Governance (ESG) considerations into all aspects of our business.
The report has been informed by the ESG In line with this responsibility, we have now set a
materiality assessment we undertook in December range of sustainability objectives for FY22 in our
2020, and addresses matters that were identified as annual business plan. These include:
most important to our many stakeholders. As part
of our continued focus to improve our disclosure • Adding sustainability to the Audit and Risk
on sustainability, we have prepared this report in Committee remit in FY22.
accordance with the GRI Standards: Core option. • Reviewing the Macmahon Climate Change
Policy and determining appropriate climate
Our business took positive action to improve our change metrics and targets.
sustainability in FY21 including the adoption of a • Establishing a Diversity Strategy.
new Sustainability Policy. Under this policy, we • Establishing a Community Partnership and
recognise that we have a corporate responsibility Investment Strategy.
to protect the health and safety of our people, • Establishing a Reconciliation Action Plan.
responsibly manage our environmental impact • Ensuring a robust and coherent set of
and ensure we work in partnership for the benefit sustainability targets exists.
of the communities in which we operate. • Engaging with employees to further raise
sustainability awareness.
The ongoing impact of COVID-19 continues to be a
challenge in our business. We have adopted a range
We will continue to challenge of measures to reduce the risks to our people and
ourselves to improve host communities, and to date we have avoided
significant operational disruptions at our sites.
our performance on key
Expectations from all stakeholders in relation to
sustainability metrics. ESG concerns continue to rise. We will continue to
challenge ourselves to improve our performance
on key sustainability metrics, as we believe this is
critical to creating long-term sustainable value for
our shareholders and other stakeholders.
EVA SKIRA
Chair
6
Macmahon Sustainability Report 2021
Sustainability Policy
Macmahon is committed to building a sustainable business by
minimising our environmental footprint, making a positive social
impact and applying ethical business and governance practices.
To achieve this objective we will:
• Reduce our environmental impact by minimising emissions, waste and water use, and improving the
efficiency of our operations.
• Protect the safety, health and wellbeing of all our people at all times.
• Respect the cultural heritage, customs and traditions of Indigenous Peoples.
• Encourage a diverse and inclusive workforce.
• Protect the human rights of employees, contractors, suppliers and communities through sound supply
chain management and responsible contracting.
• Behave ethically and maintain strong governance practices in all the jurisdictions in which we operate.
MICHAEL FINNEGAN
Chief Executive Officer
and Managing Director
7
Macmahon Sustainability Report 2021
Our Business
Macmahon is a diversified contractor with leading capabilities
in surface and underground mining, civil construction and
resources engineering.
As an ASX-listed company, with headquarters in Macmahon is a service provider and does not own
Perth, we provide services to many of the largest any mines. As a result, Macmahon generally has
resources projects in Australia and Southeast Asia. no operational control over the mines on which it
operates, with this responsibility generally resting
Founded in 1963, Macmahon services major with our clients (usually the mine owners).
resource companies across various commodity
sectors. Our end-to-end mining services encompass Macmahon does not produce or transport any
mine development and materials delivery through products. Environmental and social impacts from
to engineering, civil construction, on-site mining our operations that we control or influence are
services, rehabilitation and site remediation. discussed throughout this report. Macmahon has
operational control over its workshops and offices,
which are listed in our map of operations on page 10.
Macmahon was named
Contract Miner of the
Year at the Australian
Mining Prospect Awards
2020. The awards
recognise excellence
in contract mining,
engineering, projects,
and services.
$1.35 $409
Billion Million
FY21 Revenue Market Capitalisation
as at 30 June 21
$508
7,069 Million
Total Workforce Net Tangible Assets
8Macmahon Sustainability Report 2021
FY21 REVENUE BREAKDOWN
For further details, a breakdown of the services,
projects and our clients are provided in our
FY21 Annual Report.
1% 1%
Activity
Activity Country
Country
3% 3%
Surface
Surface 22% 22% Australia
Australia 24% 24%
Underground
Underground Indonesia
Indonesia
Mining
Mining Support
Support Other
Other
Services
Services
%
75% 75% 75% 75%
Client Commodity
6%
17%
23% 16%
Gold
PT AMNT
7% Copper/Gold
AngloGold Ashanti
Met Coal
QCoal
11% Other
Silver Lake 53%
20% 25%
Newcrest
Dacian Gold 11%
11%
Other
INDUSTRY AND OTHER
ORGANISATIONS
The Company is a member of the following
industry and other organisations:
• Chamber of Minerals and Energy
• Queensland Resources Council
• WA School of Mines Alumni
• Minerals Council of Australia (member
for part of the FY21 reporting period)
• Civil Contractors Federation (member
post-FY21 reporting period)
9Macmahon Sustainability Report 2021
Queensland
Map of Operations Office (Brisbane)
Workshop
Malaysia (Coppabella)
Northern Territory
Surface Mining Surface Mining
Underground Mining • Byerwen
• Langkawi
• Tanami • Dawson
Underground Mining
• Mt Wright
Mining Support
Services
Indonesia • Peak Downs
• Poitrel Levee
Office (Jakarta) • Saraji
Surface Mining Equipment
Maintenance and
• Batu Hijau
Management
• Martabe
• Foxleigh
Western Australia
Office (Perth)
Workshop (Perth)
Surface Mining
• Julius
• Mt Marven
• Mt Morgans
• Telfer
• Tropicana
Underground Mining South Australia
• Boston Shaker
• Granny Smith Workshop (Lonsdale)
• Gwalia
• Leinster Underground Mining
• Bellevue • Olympic Dam
• Cock-eyed Bob
• Daisy Milano
• Deflector Victoria
• Maxwells
• Nicolsons Underground Mining
• Santa
• Fosterville
• Wagtail
Mining Support
Services
• Coburn
• Warrawoona
10Macmahon Sustainability Report 2021
Ryan D’Souza Mining Engineer, Mt Morgans
Ryan is a winner of the WA award for Indigenous
Trainee of the Year and runner up of the National
Competition. He was mentored through Macmahon’s
cadetship program, gaining valuable experience
across Tropicana, Telfer and now Mt Morgan’s
mine sites.
Pictured with Mining Engineer Maryam Abedinpour,
Ryan, now a qualified Mining Engineer, enjoys
sharing his knowledge and mentoring Macmahon’s
Graduate Engineers.
Mt Morgans Gold Mine, Western Australia i
11Macmahon Sustainability Report 2021
Supply Chain
In FY21, reflecting on our operations, our supply A breakdown of our FY21 spend is shown below.
chains were predominantly based within Australia Most of our supply spend is on equipment
and Indonesia. and spares, such as specialised machinery,
subcontractors and labour hire.
3% 3%
0.1% 0.1% 2% 2%
2% 2%
untry Country Category Category
3% 3%
21% 21% 4% 4%
Australia Australia
Equipment Tyres Equipment Tyres
ndonesia Indonesia and Spares and Spares 5% 5%
Rental Rental
Malaysia and Malaysia and Subcontractor Subcontractor
Corporate 6% Corporate 6%
South Africa South Africa
Labour hire/ Labour hire/ Category Category
Recruitment Transport
Recruitment Transport 53%
6% 6%
Services Oil andServices
Lubes Oil and Lubes
Consumables Other Consumables 7% Other 7%
79% 79%
8% 8%
Our supply chains include the following services and products:
Accommodation Explosives Labour Hire
Equipment and Spares Freight Oil and Lubes
Consumables Fuel Services
Corporate Services Hire and Rental Goods Tyres
Energy Human Resources
For further information, please refer to the Modern Slavery Statement, which is available on our website.
12Macmahon Sustainability Report 2021
Batu Hijau Copper/Gold Mine, Indonesia - 2021 i
13Macmahon Sustainability Report 2021
Vision, Values and Strategy
Vision To be the preferred contracting and
services company:
For employees to work for
For customers to use
For shareholders to invest in
Values In everything we do, we think and act according
to our guiding principles.
Safety
Think Safe | Act Safe | Enforce Safety
Teamwork
Work Smart | Work Hard | Work Together
Prosperity
Find Value | Drive Value | Achieve Value
Integrity
Be Reliable | Be Direct | Be Honest
Environment
Reduce | Recycle | Rejuvenate
Strategy Macmahon is focused on expanding and improving
its end-to-end mining service capabilities to achieve
sustainable growth and increase financial returns.
Our people are focused on improving efficiencies,
investing in future relevance and diversifying and
expanding our service offering.
14Macmahon Sustainability Report 2021
Strategic Overview
Improve Invest
Margins and execution Relevance and competitive advantage
Systems and processes Advanced contractor
Contract management Structure and capability
Operational excellence Sustainability
Diversify Expand
Build scalability Growth in current markets
Mining Support Services Additional services with existing clients
Underground Grow market share
15Macmahon Sustainability Report 2021
Sustainability Approach
Macmahon is committed to improving its sustainability performance
and reporting.
As part of this process, Macmahon undertook an An internal Environment and Social Performance
ESG materiality assessment in December 2020 Working Group has been established to review
with internal and external stakeholders to guide effectiveness and improve key sustainability focus
our sustainability efforts and reporting. areas to manage environmental and social risks.
This group and Macmahon’s senior management
This materiality assessment involved: make recommendations to the Macmahon Board,
ensuring appropriate strategies and controls
• Identifying potential material topics based on a are implemented. Consistent with the Board’s
preliminary assessment of global sustainability commitment, Sustainability will be added to the
reporting standards, peer company Audit and Risk Committee remit in FY22.
sustainability reporting, investor interests and
priorities, ESG risks and other factors.
• Prioritising material topics by engaging with Policies
19 internal and 23 external stakeholders
(across investors, brokers, clients and Macmahon has established the following
suppliers) to determine topics that most Core Policies to provide a framework for our
reflect Macmahon’s significant impacts and sustainability efforts:
substantively influence the assessments and
decisions of stakeholders. • Sustainability Policy
• The Executive Leadership Team and Board • Risk Management Policy
assessing engagement results and determining • Quality Policy
the material topics. • Health and Safety Policy
• Environmental Policy
• Equal Employment and Diversity Policy
• Indigenous Peoples Policy
• Whistleblower Policy
• Diversity Policy
• Human Rights Policy
• Anti-Bribery and Corruption Policy
An internal Environment and Social
Performance Working Group has been
established to review effectiveness and
improve key sustainability focus areas.
16Macmahon Sustainability Report 2021
Material Sustainability Topics
Our materiality assessment identified 16 material topics, with the
most important being:
Corporate Health and
Governance Safety Wellbeing Climate Change
Financial and
Diversity Business Ethics People Operating
and Inclusion and Transparency Management Performance
Material topics for Macmahon’s sustainability reporting are outlined in Tables 1 and 2.
Table 1: Materiality Matrix
MATERIAL
Corporate Governance
Safety
Climate Change
LEVEL OF IMPORTANCE TO OUR STAKEHOLDERS
Health and
Wellbeing
Diversity and Inclusion Business Ethics
and Transparency
Financial and Operating People
Performance Management
Risk Management
Environmental Incidents,
Human Rights and Community Partnerships Impacts and Compliance
Modern Slavery and Investments
Indigenous Engagement
Land Rehabilitation
Water Management
Waste Management
IMPORTANT
IMPORTANT SIGNIFICANCE OF IMPACTS TO MACMAHON MATERIAL
ENVIRONMENT SOCIAL GOVERNANCE
17Macmahon Sustainability Report 2021
Table 2: Material sustainability topics for Macmahon
Material Topics Explanation Page
Governance
Corporate governance We are committed to ensuring that our obligations and responsibilities 41
to various stakeholders are fulfilled through appropriate corporate
governance practices.
Business ethics and Ethical business practices and transparency underpin our business. Integrity 43
transparency is one of our core values and we expect all employees to act lawfully, ethically
and responsibly.
Risk management We implement systems and processes to identify, assess and manage risks 44
that can materially impact on our operations, people, reputation, and financial
results. Note: Material risks are reported in our Annual Report.
Economic
Financial and operating We are committed to creating a sustainable business with a strong focus on N/A
performance operational and financial efficiency. Note: Our operating and financial review
and financial statements are reported in our Annual Report.
Environment
Climate change We seek continual improvements in our energy mix and energy efficiency 24
across our business to reduce the carbon intensity of our operations and
minimise the impact on the environment.
Land rehabilitation As part of our mining services, we regularly complete earthworks and 26
revegetation on land disturbed by mining activities to ensure it is compliant,
stable, safe and suitable for post-closure use.
Water management We seek to sustainably manage water resources and reduce impacts on water 26
quality associated with our mining operations.
Waste management We seek to minimise waste and are committed to ensuring that all waste 26
materials are disposed of in an approved and environmentally responsible
manner. Waste management covers reduction, reuse and recycling, and
hazardous waste management.
Environmental incidents, We implement environmental management strategies and plans to 27
impacts and compliance ensure compliance with all legal requirements regarding essential issues,
such as biodiversity, waste, hazardous substances, water, noise and cultural
heritage management.
Social
Safety Safety is one of our core values and improving our safety performance 32
across all operations remains a priority. We lead by example and promote a
“zero-harm culture” through robust safety systems, policies and processes.
Health and wellbeing The health and wellbeing of our employees, contractors and stakeholders are 32
of primary importance and integral to the way we work. We aim to provide an
environment free of injury and physical and mental illness.
People management Attracting, developing and retaining a skilled workforce is central to our 30
business. We provide flexible working conditions, leave and allowances to
support overall wellbeing and a positive work-life balance for our people.
Diversity and inclusion We aim to create an open and inclusive work environment where our people’s 34
diverse experiences, perspectives and backgrounds are valued and utilised.
Human rights and We respect internationally recognised human rights principles. We realise 35
modern slavery we have a role to play in eliminating modern slavery in our operations and
supply chains.
Community partnerships We treat our host communities with respect and are sensitive to the impacts 35
and investment of our mining operations on local communities. We partner and invest in local
communities to deliver tangible and ongoing benefits.
Indigenous engagement Our approach to Indigenous engagement is characterised by effective two-way 39
communication, consultation and partnering. We commit to train and employ
Indigenous people in our mining operations.
18Macmahon Sustainability Report 2021
Boston Shaker, Underground Gold Mine, Western Australia i
19Macmahon Sustainability Report 2021
Stakeholder Engagement
We consider our key stakeholders as those potentially affected by
our operations or who are interested in or have an influence over
what we do. Our key stakeholder groups are listed in the table below.
Stakeholders Key Interests and Concerns FY21 Engagement
Communities and Potential environmental and social impacts • Community consultation and engagement
Indigenous groups associated with operations. As most of our • Community sponsorship
operations are located in remote locations, we • Social investment
have a broad range of local interests and concerns • Project community engagement plans
such as: local procurement, employment and • Jangga Operations
business opportunities. (Indigenous Group Byerwen)
Clients Reliability, quality, cost and delivery. • Regular communications and meetings
• Site visits and presentations
• Senior management involvement
Employees Company restructuring, health and safety, working • Monthly employee newsletter
conditions, organisational culture, benefits and • Fortnightly electronic direct mail
career development opportunities. • Quarterly printed newsletter
• Macmahon intranet site
• Staff briefings with the CEO
• Performance reviews
• Personal development plans
• Regular communication via a dedicated
communications tool – Team MAC
• Formal and informal reward and recognition
(Managers to employees and peers to peers)
• Pre starts and toolbox talks
• Return to work meetings
• Strong Minds Strong Mines monthly
toolbox presentations
• Various training courses
• Online surveys
Investors Delivery of financial returns, mitigation and • Regular meetings and contact with financiers,
management of financial and non-financial risks, institutional shareholders and investor
and ESG reporting. representatives (brokers, analysts,
proxy advisers)
• Annual General Meeting – FY20 AGM was
accessible via an online platform and included
the ability for shareholders to ask questions
and vote in real-time
• Australian Securities Exchange (ASX)
announcements
• Regular printed and electronic communications,
including investor presentations
• Investor Perception Study conducted in
December 2020
Industry groups Collaboration to ensure outcomes from the • Active participation in many associations,
industry, for example the coordination of safety including The Chamber of Minerals and Energy,
data for the benefit of the industry. Minerals Council of Australia, Queensland
Resources Council, WA School of Mines
Alumni, and Gold Industry Group.
Regulators Safety and environmental reportable incidents • Australian Securities Exchange (ASX)
and breaches. • Safety and Environmental Departments
(Department names vary across different
states and the direct relationship is often
with the client depending on jurisdictions)
20Macmahon Sustainability Report 2021
Warrawoona Civil Construction, Western Australia i
21Macmahon Sustainability Report 2021 i Water sampling, near Batu Hijau Copper/Gold Mine, Indonesia 22
Macmahon Sustainability Report 2021
Environment
Macmahon’s Environmental Policy,
values and commitments reflect the
integrated way we work at each of
our locations. Although we do not
own any mines, we are committed to
reducing, recycling and rejuvenating
by promoting environmental awareness,
minimising waste and identifying
energy-efficient solutions.
We continue to improve our understanding of the sources,
scope and extent of our resource use, environmental
emissions and impacts, and transparently report our
performance. Our overarching goal for environmental
management is to avoid or, if this is not possible, minimise
our impacts while contributing to lasting environmental
benefits across the regions where we operate.
23Macmahon Sustainability Report 2021
Climate Change
As set out in Macmahon’s Climate Change Position During FY21, our scope 1 (direct) GHG emissions
Statement, we acknowledge that climate change were 2,051 tonnes per CO2-e, while our scope
is real and poses a threat to our environment. 2 (indirect) GHG emissions were 1,481 tonnes
per CO2-e.
We will seek continual improvements in energy
efficiency across our business to reduce the carbon The large increase in scope 1 GHG emissions in
intensity of our operations and minimise the impact FY20 was primarily attributed to the purchase of
on the environment. diesel fuel by GBF Group on behalf of a client’s
operations. However, from October 2020 GBF
Macmahon measures and reports its Greenhouse no longer purchases fuel for this operation, which
Gas (GHG) emissions yearly via an independent resulted in the subsequent reduction of our FY21
consultant. Macmahon does not report GHG data scope 1 GHG emissions.
directly for the National Greenhouse and Energy
Reporting (NGER) scheme, as this functional The installation of solar panels at our Perth Head
responsibility for most mining projects, sits with Office contributed to a reduction of our FY21
our clients. scope 2 GHG emissions.
We will seek continual improvements in
energy efficiency across our business to
reduce the carbon intensity of our operations
and minimise the impact on the environment.
CASE STUDY
400kVA 6
Peak DC solar panel system installed Schneider EV Link
over 157 car bay canopies and on electric vehicle
the roof top of our Perth office charging stations
682,993kW 25–30%
Estimated power produced by the Of the Perth office is
solar panels solar powered
kW vs kVA
Kilowatt (kW) is the actual power. Kilovolt-ampere (kVA) is a unit of
apparent power plus re-active power
24Macmahon Sustainability Report 2021
Metric FY21 FY20 FY19 FY18 FY17
Energy Gigajoules 37,200 96,140 20,478 16,152 9,898
(GJ)
GHG Scope 1 Total Tonnes 2,051 6,119 795 569 156
CO2-e
GHG Scope 2 Total Tonnes 1,481 1,803 1,761 1,538 1,583
CO2-e
Total (Scope 1 and Scope 2) Total Tonnes 3,532 7,922 2,556 2,107 1,741
Emissions CO2-e
Note: Emissions and energy data is calculated using Clean Energy Regulator’s NGER emissions/energy calculator are based on
actual amounts of fuel (kL) and purchased electricity (kWh) used on a facility-by-facility basis.
Macmahon will set GHG emissions targets in FY22 In conjunction with our Original Equipment
and use FY21 as its baseline year for emissions. Manufacturers and our clients, we monitor, maintain
Macmahon will also investigate reporting against and rebuild equipment to extend its useful life
the Taskforce on Climate-related Financial and optimise performance. Our engineering team
Disclosures (TCFD) in FY22 for sites under its continuously assess opportunities to purchase lower
operational control. emission equipment, and we have moved from a
predominately mechanical drive trucking fleet to an
electric drive in FY21 for new purchases. In FY22, our
GHG (Scope 1 & 2)
FY21 Energy (GJ) tonne CO2-e team will commence trials of battery powered light
vehicles in our underground operations.
Electricity 7,993 1,481
Diesel 28,572 2,008 Macmahon seeks to work across a range of
Petrol 635 43 commodities, including those important for the
world’s transition to low carbon energy, such
Total 37,200 3,532
as copper. Macmahon had minimal exposure to
thermal coal mining over the period and remains
cognisant of stakeholder expectations on this issue.
Perth Office carpark solar panels, Western Australia i
25Macmahon Sustainability Report 2021
CASE STUDY
Batu Hijau rehabilitation
In addition to mining activities at the Batu
Hijau project, the alliance team progressively
rehabilitates the land. Around 1.2 million
trees have been successfully replanted
across 700 hectares between 2000 to 2020.
Land Rehabilitation There are no water targets as access to and
monitoring of water is commonly provided by our
Macmahon offers complete solutions for mine clients. Macmahon does not handle or use cyanide.
closure and mine site rehabilitation, and progressive
rehabilitation for mining contracts. Our capabilities
include bulk earthworks, topsoil management, Waste Management
revegetation, monitoring and maintenance.
General waste makes up most of Macmahon’s
In FY21, we rehabilitated 142 hectares in Australia waste, with the remainder consisting of used
across the Peak Downs, Saraji, South Walker batteries, tyres, contaminated soils, oily rags,
Creek mine sites. In addition, 45 hectares were scrap steel, lubricants, used oil/fuel filters, used
rehabilitated in Southeast Asia at the Batu Hijau site. air filters, sewerage, used oil and grease and
wash-down wastewater.
Australia FY21 FY20 FY19
Total Hectares rehabilitated 142 60 177 Our operations are required to have Waste
Management Plans, which address waste
Southeast Asia CY20 CY19 CY18 minimisation, storage, transportation and
disposal. These plans are maintained to control
Total Hectares rehabilitated 45 37 23
the risk of adverse impacts on the environment
and communities where we operate. All waste is
segregated into waste streams at locations where
Water Management recycling can occur. Waste types and destinations
(recycling) are recorded at each project. Where
Macmahon is committed to sustainable water reuse is not possible, Macmahon aims to recycle
management and we work with our clients to separate components for collection by licensed
prevent pollution and wastage. Site-based water contractors. This is our first year of reporting our
management plans are contained in project waste as shown in the table below:
environmental management plans and describe
FY21 Tonnes
the specific requirements, procedures and
management measures that will be implemented General waste 694
for our project operations. Recycling 28
We recognise that water use is important to our
stakeholders; however it is not a significant resource
26 use for the Company.Macmahon Sustainability Report 2021
CASE STUDY
Tyre Repairs
In FY21, Macmahon repaired and extended
the life of 81 off-road tyres which totalled 243
tonnes. Once they have reached an unusable
state, they are disposed through Environmental
Protection Authority approved channels and
certified waste disposal companies.
ENVIRONMENTAL INCIDENTS
Dangerous Goods and In FY21, we conducted over 290 monthly
Contamination inspections across our operations and recorded
no major environmental incidents, prosecutions,
Macmahon purchases, handles, stores and or infringements.
uses dangerous goods as part of its operations,
such as explosives. The Company has procedures BIODIVERSITY CONSERVATION
and management measures to ensure the safe Biodiversity includes the diversity of species
and effective management of these materials including plants and animals, the genetic material
under relevant legislative requirements. Hazardous within those species, the diversity of ecosystems,
waste is segregated, stored according to habitats and communities.
legislative requirements and collected by
accredited contractors. Macmahon has proven experience in operating
with sensitivity in areas of high diversity and
conservation value, whether operating as the
Environmental Incidents, Impacts contractor, or working within our mining client’s
and Compliance Environmental Management Systems.
Macmahon utilises a certified Environmental Flora and fauna requirements are documented
Management System (EMS) to ensure its within our project specific Environmental
systems and operations meet legal and other Management Plans and Environmental Risk
requirements to minimise environmental impacts. Assessments. Macmahon has a flora and fauna
The EMS is used across Australian operations, management procedure that provides minimum
offices, and workshops. Certification surveillance requirements for flora and fauna management to
audits of Macmahon’s AS/NZS ISO 14001:2004 minimise the impacts associated with Macmahon
Environmental Management Systems were work areas and ensure operations are executed
undertaken by a third party in August 2020 according to relevant legislation.
(refer to the Audits section on page 34).
27Macmahon Sustainability Report 2021
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line 2
i Maintenance crew at the Tropicana Gold Mine, Western Australia
28Macmahon Sustainability Report 2021
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line 2
Social
Macmahon is dedicated to the health
and safety of our people, providing an
inclusive workplace that offers many
opportunities, and we build strong
relationships with the communities
in which we operate.
29Macmahon Sustainability Report 2021
People Management Australia
Given the increased demand for mining services in
Our people are our greatest asset and essential to the second half of the year and continued COVID-19
our long-term success. We remain committed to travel restrictions, we have experienced tightened
supporting overall wellbeing and a positive work-life labour availability in Australia and higher turnover
balance for our people. rates (refer to Performance Data on pages 46 to 47
for further detail).
Our workforce as at 30 June 2021 was 7,069 people
(refer to Performance Data on pages 46 to 47 Macmahon has employed various strategies to
for further detail). We anticipate this will increase attract and retain our people, such as providing:
over the coming year as we bring on several new
projects in FY22. • Opportunities for growth and development
through our Grow Our Own initiatives (refer
Workforce by location to Training and Development on page 31).
• Reward and recognition initiatives:
Employees Contractors Total Workforce
– Retention bonus schemes in agreement
Australia 3,035 940 3,975 with clients.
Southeast Asia 3,016 47 3,063 – Competitive remuneration with increased
benchmarking bi-annually.
Other 31 0 31
– Monetary leader awards to recognise
Total 6,082 987 7,069 performance and access to discount benefits.
• Flexible working arrangements, including
offering our fly-in-fly-out (FIFO) workforce the
Workforce by Business Unit flexibility to choose between lifestyle (even-
time) or higher earnings rosters.
6%
4% • Access gym facilities and classes at the Perth
Head Office.
• Access to award-winning physical and mental
health programs, including “Strong Minds,
Strong Mines”.
15%
In FY22, we plan on undertaking an employee
engagement survey to further build on our culture.
75% Indonesia
We continue to foster positive labour relations
with our Indonesian workforce. We ensure
we comply with all relevant Indonesian labour
legislation, and provide written contracts
Surface Underground underpinned by Company Regulations (similar
Mining Support Services Corporate/Other to an Australian Enterprise Agreement) that are
approved by the Indonesian Government’s Ministry
Workforce over the last three years of Manpower. We also offer production bonuses
(linked to safety KPIs) and health insurance for
employees and their family members.
Employees Contractors
30Macmahon Sustainability Report 2021
CASE STUDY
Macmahon Maintenance
Masters
This program has been established to
attract specialist maintenance personnel.
We currently have over 30 people across
10 sites in Australia.
TRAINING AND DEVELOPMENT
To support our continued growth, Macmahon remains firmly committed to developing and supporting
the development of our people. We have increased our focus on our apprenticeship, graduate, traineeship
(“Grow Our Own” people strategy) and leadership programs throughout the year.
IN FINANCIAL YEAR 2021
32
GRADUATES
105
APPRENTICES
Thirty-two graduates participated in our One hundred and five apprentices participated
Structured Graduate Development Program, in our National Apprenticeship Programs,
which includes an 18-month partnership with specialising in mobile plant mechanics, auto
Engineering Education Australia (EEA) to support electricians, HV electricians and boilermakers.
our graduates in acquiring industry-specific skills
and building on existing capabilities.
289 95
TRAINEESHIPS LEADERSHIP DEVELOPMENT PROGRAM
Two hundred and eighty-nine, new-to-industry, Ninety-five of our leaders participated in a
people were developed in a range of programs. structured leadership program in partnership
We established a training school in Perth to fast with the Australian Institute of Management
track our new-to-industry training programs. Western Australia.
In addition, we have revamped our performance review process (Challenge, Develop & Grow), which is part
of our strategy to attract, lead, develop, engage, and retain talent.
31Macmahon Sustainability Report 2021
Safety
The safety of our people remains our number one Importantly, many of the Company’s projects
priority. Macmahon is committed to reducing, and recorded positive safety results:
where possible, eliminating hazards and risks within
our business to protect the health and safety of • 96% of all projects remaining LTI free for the
our workforce. entire year.
• 54% of all projects were both LTI and recordable
Sadly, and as referred to in the Chair and CEO and injury free for the period.
Managing Director’s Reports in our Annual Report,
we reported the passing of two employees during Our leading indicators show the significant steps
the year. In April 2021, a truck driver was fatally and efforts that we have put into improving safety
injured at the Batu Hijau mine site after losing performance going forward. We continuously
control of his vehicle. In June 2021, an employee at monitor the following leading indicators:
the Daisy Milano mine passed away from unknown
causes. Investigation by the coroner is ongoing into • Safety Interactions
the cause of death. These tragic losses have been • Planned Task Observations
felt across the business and we are supporting the • Hazard Reporting Frequency Rate
families and our people, wherever possible. • Monthly Safety Inspections
• Project Managers Quarterly Risk Review
Our safety performance has not been in line with • Safety Planner Compliance Sheet
our targets. Macmahon’s Total Reportable Injury
Frequency Rate (TRIFR) for FY21 increased to 6.39
from 3.77 in the previous year. The Lost Time Injury Health and Wellbeing
Frequency Rate (LTIFR) increased from 0.12 in FY20
to 0.14 in FY21. Comparing performance, the most Macmahon’s commitment to supporting the health
recent Western Australia Mining sector average and wellbeing of its people is vitally important.
TRIFR was 6.2, whilst the LTIFR for the sector was 2.2. Our dedicated health and wellbeing program,
Strong Minds, Strong Mines, continues to support
FY21 FY20 FY19 FY18
our employees’ physical and mental health and
TRIFR 6.39 3.77 3.98 6.28 encourages our people to reach out for help when
Industry TRIFR1 6.2 6.2 6.4 6.7
needed. We are proud that this program is now
offered to and adopted by our clients.
LTI 0.14 0.12 0.36 0.46
Industry LTIFR1 2.1 2.1 2.2 2.0 This year, we have employed a dedicated Wellbeing
Workforce 7,069 7,059 5,572 5,050 Coordinator who visits sites and provides health and
nutrition guidance, along with group and personal
1 Department of Mines, Industry Regulation and Safety total physical fitness plans.
mining frequency rates. Note FY21 departmental data not
available at time of publishing, so FY20 data disclosed.
The Macmahon fitness app, Team App, continues
to be well used by our workers and their families.
As a result of our disappointing safety performance This app provides access to meal plans, workout
in FY21, our Safety and Health Management System programs and videos, motivational videos and
was reviewed and confirmed as appropriate. Greater access to our Wellbeing Coordinator. The app has
emphasis has been placed on improving behaviours now been deployed to other companies who are
and situational awareness to ensure a safe workplace. benefiting from the content and the support it
We expect to improve our performance in FY22 and provides.
will focus on implementing the following initiatives:
• Review and amend the Company’s Critical Risk
Standards.
• Complete audits against the new Critical Risk
Standards across all projects.
• Install fatigue and behavioural observation
monitoring technology across our mining fleet.
• Launch a psychological safety program to
address culture and make sure our people
are empowered to speak up to create a safer
workplace environment.
• Commence cross departmental audits into our
Integrated Management Standards to identify
system gaps.
32Macmahon Sustainability Report 2021
CASE STUDY
Strong Minds, Strong Mines
Macmahon is sharing its award-winning
Wellbeing program with the resources
industry to help shine a light on the benefits
of mental, physical and social health as part
of its Strong Minds, Strong Mines program.
Diggers & Dealers 2021.
COVID-19 Integrated Management System
The impact of the COVID-19 pandemic continues
to be a challenge in our business. We continue The Macmahon Integrated Management System
to closely monitor the situation, implement risk (IMS) is underpinned by our 12 Integrated
management measures across our operations Management Standards, which provide the
to protect our workforce and stakeholders, and framework for critical elements, such as our risk,
safeguard business continuity. health, safety, environmental and quality practices.
These measures included: Our IMS is certified with:
• Providing financial support to those • ISO 14001 (Environment)
directly impacted. • ISO 45001 (Health and Safety)
• Securing accommodation for more than 190 • ISO 9001 (Quality)
interstate FIFO workers required to temporarily • ISO 45001 (Occupational Health and Safety
relocate to the state in which they work. Management Systems)
• Identifying high-risk members of our workforce
and providing health plans managed by our Our IMS is aligned with ISO 31000 Risk
Group Doctor. Management.
• Focusing on fatigue management, including Note: Our ISO accreditation covers all Macmahon’s
providing additional break times. Australian operations, offices, and workshops.
• Access to our 24 hours 7 days a week Employee
Assistance Program. We also re-established our accreditation under
• Proactive use of preventive measures, including the Work Health and Safety Office of the Federal
use of face masks, temperature checks, regular Safety Commissioner Scheme.
cleaning and sanitation.
• Accommodating our Batu Hijau workforce
on Lombok Island for a two-week quarantine
period before transferring to the mine site on
Sumbawa Island.
33Macmahon Sustainability Report 2021
AUDITS
Macmahon’s systems, standards and procedures Creating an inclusive and respectful workplace is
are accompanied by an audit framework to measure paramount. Strengthening this is a focus area for
and monitor compliance as a component of both Macmahon in FY22, with implementation of a revised
project specific operational and corporate activity. DEI framework to engage and raise awareness with
Audits are conducted regularly and encompass the both internal and external stakeholders.
precepts of AS/NZS ISO 9001, AS/NZS ISO 45001,
AS/NZS ISO 14001 and the Macmahon Integrated In addition, Macmahon actively encourages the
Management Standards. employment of Indigenous Australians, and we
continue to work with our clients to provide
During FY21, Macmahon completed our scheduled opportunities for Indigenous participation in
external and internal audits, and our management our projects (refer to Indigenous Engagement
systems were independently certified by BSI (third- on page 39).
party certification body).
In FY21, the Company’s target for Indigenous
This certification includes our core business areas representation was 5.5% was Australian employees.
and project management services across all Macmahon employed 144 Indigenous people
Australian operations (certification to include GBF in the reporting year, representing 4.7% of
Group is planned for FY22). Australian employees.
The audit noted that Macmahon continues to Future targets are being developed to ensure our
demonstrate a strong commitment to maintaining commitment to increasing diversity continues.
and improving the Quality, Environment and Safety
Management System. Current FY21
Target Actual
ENTERPRISE AGREEMENTS
Indigenous Australian employees 5.5% 4.7%
Macmahon currently has 10 single enterprise
agreements in Australia, which cover approximately Female Directors 30% 25%
2,071 employees. The negotiation process of Percent of females in senior 20% 12.2%
enterprise agreements in Australia is provided for management positions
in the Fair Work Act 2009 (Cth) (Act). Macmahon Percentage of female employees 15% 14.2%
complies with its obligations under the Act. All across Australia
of Macmahon’s enterprise agreements have a Percentage of female employees 15% 12.4%
maximum term of four years and are renegotiated across the whole organisation
upon the nominal expiry date.
Diversity, Equity and Inclusion (DEI)
Macmahon recognises the benefits of having a Creating an inclusive and
diverse workforce, and seeks to create an inclusive
workplace environment where people’s diverse respectful workplace is
experiences, perspectives and backgrounds are paramount.
valued and utilised. Increasing female and Aboriginal
employment rates remains our key priority.
The Group’s Diversity Policy is available on the
Macmahon website, and requires the Board to set
and report against measurable diversity targets.
The following table outlines our measurable
objectives in relation to diversity and the progress
towards achieving those objectives at 30 June 2021.
Macmahon supports improvements in the industry’s
gender ratio by actively encouraging female
applicants and has set a target of 25% female
appointments for entry level programs. The Group
produced a separate report on its Gender Equality
Indicators in accordance with the Workplace
Gender Equality Act 2012. A copy of this report is
available on our website.
34Macmahon Sustainability Report 2021
Human Rights and Modern Slavery Community Partnerships
and Investment
Macmahon respects internationally recognised
human rights principles. We have a Human Rights Macmahon has an established tradition of
Policy, in addition to human rights commitments in supporting local initiatives in the communities in
our Code of Conduct and other corporate policies, which it operates. Macmahon seeks to identify
which are all publicly available on our website. Our community sponsorships and partnerships that
Human Rights Policy outlines our commitment align with the interests of local communities close
to eliminate all forms of modern slavery in our to its projects, in addition to larger projects which
operations and supply chains. We reject the use of provide strong synergies with Macmahon’s values-
all forms of slavery, forced labour, including prison, based culture.
indentured, bonded or military labour, child labour,
forced marriage, any form of human trafficking, and Macmahon’s strategic community investment
deceptive recruiting for labour or services. includes voluntary contributions, in-kind support,
and allocated funding. Macmahon is committed to
In FY21: increasing its community investment in FY22.
• We established a Modern Slavery Working Macmahon offers varying types of support to
Group to maintain oversight and coordinate programs that best align with the Company’s
various actions across the Company. operations and values. The types of support to
• We amended existing Company Policies, community organisations include:
including our Procurement Policy to include
Human Rights. • Sponsorship for projects or programs that
• We developed and rolled out an online training aim to meet a specific community need
module and provided our Australian based staff and align with one or more of our values
training in modern slavery legislation. of safety, teamwork, prosperity, integrity,
• A number of supplier contracts have been and environment.
amended to require them to conduct their • Support for local sporting or community
business in a manner that is consistent with the organisations in locations where Macmahon
Modern Slavery Act 2018 (Cth). has operations.
• Human rights and modern slavery training was • In-kind support for community organisations
rolled out across our Australian workforce: in locations where Macmahon has operations.
– 61% of the Australian workforce and 100% • Support for employees’ community
of our Australian procurement team fundraising activities.
received training.
– Our Australian workforce completed over Community development projects are selected
450 training hours. based on their capacity to positively impact quality-
of-life indicators for the relevant community and
The training module includes: enhance the Company’s licence to operate.
• The basic principles of the Modern Slavery Act
2018 (Cth).
• How employees can identify and prevent
modern slavery and human trafficking.
• What employees can do to ‘flag’ potential
modern slavery and human trafficking issues
to relevant parties within the Company.
• What external help is available to identify and
prevent modern slavery.
All employees are required to complete Modern
Slavery awareness training in their induction
program and annually thereafter. The training
module for our Indonesian and Malaysian staff
will occur in FY22.
For further information, please refer to the
Modern Slavery Statement, which is available
on our website.
35Macmahon Sustainability Report 2021
CASE STUDY
Supporting Grassroots
Sporting Clubs
We know that sport and group recreation activities build healthier,
happier and safer communities. Macmahon supports grassroots
sporting clubs in many of the areas that we operate, aiming for
a minimum of one club per region.
SOUTH AUSTRALIA – OLYMPIC DAM CHILDREN’S SPORTS IN WA
Established in 1986, Roxby Downs Districts Sports Macmahon is proud to get behind initiatives that
Club offers a wide range of team sports leagues, bring families together and promote happy, healthy
including football, netball and cricket. As they lifestyles. We partner with Perth Football Club
say, “Hard work brings success,” and we have to support their School Sponsorship Program.
loved seeing the community of roughly 4,000 Engaging with 30 kids at a time, these half-hour
unite through physical recreation. Macmahon is sessions are open to any school within the Perth
also a proud supporter of the Cumberland United zone, and are run by two or more Perth Football
Women’s Football Club, an inaugural member club Club players with local District staff.
of the FFSA WNPL.
Visit: perthfc.com.au/community/school
“We strive to support those creating great places
where people can connect.” “Supporting family involvement in sport and
healthy recreation.”
36Macmahon Sustainability Report 2021
CASE STUDY
Charity Ride for
The Harry Perkins Institute
The MACA Cancer200 Ride for The Harry Perkins Institute had to be
scaled back in 2020 due to the COVID-19 pandemic; however, our
commitment to the cause remained strong.
Forty riders raised circa $145k for medical research,
with the pledge to ride their bicycle at least 200
km within October. The Harry Perkins Institute of
Medical Research is a leading Western Australian
medical research centre dedicated to tackling some
of the world’s most significant health issues.
Riding together to fund
health research.
37Macmahon Sustainability Report 2021
Partnerships
Macmahon continues to support the
philanthropic work of the QCoal Foundation
and its charitable efforts in regional areas. In the
second year of a three-year partnership, we have
donated $12k to school resources through the
Ca$hed Up Program. The Ca$hed Up Program
was developed in collaboration with the Financial
Basics Community Foundation to improve
financial resilience and capability for young
“Providing the skills of financial resilience for Australians, with a particular focus on those living
more young Australians.” in regional and remote communities.
The WA School of Mines has an over 100-year
history of educating future industry leaders,
and maintains a world-class reputation in
the resources sector. Many of our team
graduated from WASM Kalgoorlie, and
Macmahon proudly supports the Alumni group
in their goals of increasing enrolment to the
school from undergraduates, postgraduates
“Championing the next generation of mining and international students.
industry leaders.”
Foodbank fights hunger by providing food for
815,000 Australians each month, and advocates
for almost 1 in 5 Australians who experience food
insecurity each year. Macmahon continues to
support our neighbour, Foodbank, with financial
assistance and food donations during the annual
Christmas Appeal. Our CEO and MD Michael
Finnegan also jumped in the Foodbank community
“Food security for more Australians.” kitchen with a group of other Perth business
leaders to put their cooking skills to the test.
38Macmahon Sustainability Report 2021
Indigenous Engagement
Macmahon has an Indigenous Peoples Policy and actively
encourages the employment of Indigenous Australians. We continue
to work with our clients to provide opportunities for Indigenous
participation in our projects.
During the reporting year of FY21, there have been
no incidents of violations involving the rights of
Indigenous Peoples recorded by Macmahon.
Macmahon provided several traineeship initiatives
to provide entry-level employment opportunities to
Indigenous people to support skills and training.
Through its Indigenous employment subsidiary,
Doorn-Djil Yoordaning, Macmahon operated at the
Argyle Diamond Mine in Western Australia, where it
completed tailings dam services in February 2021.
The project achieved 70% indigenous engagement
and was LTI free from 2012.
Macmahon formally celebrated Nation
Reconciliation Week for the first time in its Perth
and Brisbane offices in 2021. Macmahon is taking i Kelvin Dunrobin from Western Kangoulu
action to make reconciliation a part of our business presents a series of tooling artefacts to
and our culture by developing a Reconciliation Macmahon’s Brisbane office.
Action Plan in FY22.
CASE STUDY
GET INTO MINING
In collaboration with WA-based civil contracting
company Carey Mining and our Tropicana
Joint Venture Partners, AngloGold Ashanti and
Independence Group, we developed the highly
successful Operator Traineeship program “Get
into Mining”.
CASE STUDY
BYERWEN MINE
Since 2017, we have provided training and
development to the local Traditional Land
Owners (the Jangga people) at the Byerwen
Coal Mine in the Bowen Basin, Queensland.
Currently, Macmahon employs 53 Aboriginal and
Torres Strait Islander people at Byerwen.
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