This third annual sustainability report provides a summary of Wesfarmers Resources’
performance for the year ending 30 June 2011. It covers our divisional head office in Brisbane
and the operations of our wholly owned and operated Curragh and Premier Coal mines. The
Bengalla coal mine, in which we have a 40 per cent stake, is not covered in this report.

Wesfarmers Sustainability Report 2011

Wesfarmers Limited will donate $5 million to the Queensland Premier’s Flood Relief Appeal to assist with the massive recovery program following disastrous flooding across that state.

This donation brings the Wesfarmers Group’s total flood relief cash and in-kind donations to more than $7.5 million. In addition, more than $3.5 million has been collected to date from customers’ donations through the company’s retail store networks.

The Managing Director of Wesfarmers, Mr Richard Goyder, said that the company’s decision recognised the scale of this tragedy and the severe disruption caused to the lives and livelihoods of many people in that state.

“Wesfarmers has a strong involvement with the people of Queensland, employing nearly 40,000 people in that state through its retail businesses, including Coles, Bunnings, Target, Kmart and Officeworks, as well as its Resources, Industrial and Safety, and Insurance divisions. Many of our employees have been affected directly or indirectly by this disaster,” Mr Goyder said.

“On behalf of the company, I wish to express my deepest condolences to those individuals and families who have been affected by what has been an unprecedented natural disaster.”

In addition to the $5 million donation from Wesfarmers, our divisions are providing further assistance, including:

1. • $1 million donation to the Appeal from Coles’ supermarkets and a further $3.3 million collected to date from Coles’ customers at checkout points;
2. • $1 million for flood relief community projects from Bunnings as well as at least a $550,000 donation to the Appeal through various fundraising efforts, including sausage sizzles;
3. • Target has donated $100,000 to the Appeal and collected to date a further $90,000 in customer donations;
4. • Kmart has provided $100,000 in essential products and is collecting customer donations in stores;
5. • Officeworks has collected more than $100,000 in customer donations;
6. • Wesfarmers Resources, which includes the Curragh Coal mine in Queensland, has donated $50,000 to the Appeal;
7. • Wesfarmers Industrial and Safety has donated $50,000 to the Appeal in addition to product donations from its suppliers; and
8. • Wesfarmers Insurance has established a salary sacrifice scheme and is matching employee donations dollar for dollar.

For further information: Chris Dargie

Communications Manager, Wesfarmers Limited

(08) 9327 4257 or 0417 928 632

Floodwaters from the Mackenzie River in central Queensland are now receding in the vicinity of the Curragh mine.  The Mackenzie River peaked on Saturday, 1 January 2011 approximately 1.5m higher than the flood peak observed during the January 2008 floods.  It is still expected to be some time before the river returns to normal levels.

Throughout the flood Curragh North mining operations remained protected by the levee system.

Wesfarmers Resources Managing Director Stewart Butel said that all mining operations at Curragh are returning to normal, with the greatest impact of the floods being felt by Curragh North.

“Mining at Curragh North will progressively return to normal by early February 2011 as we are able to get more employees to site and the overland conveyor returns to service.  We have quite a bit of dewatering to undertake as a result of the unprecedented rainfall experienced in December 2010.  We continue to have follow-up rain.”

Production of metallurgical coal from Curragh for the 2011 financial year will be reduced as a result of this unprecedented flood event.

“Our estimate for full year sales of metallurgical coal is now in the range 5.8 to 6.2 million tonnes, subject to no further significant wet weather and satisfactory rail and port operations.  This compares with the pre-flood forecast of 6.0 to 6.5 million tonnes,” Mr Butel said.

Road access to Blackwater remains cut and Curragh is flying in available personnel to site.

Mr Butel said that Queensland Rail has suspended rail operations on the Blackwater line.“Our best estimate for rail operations returning to normal is mid-January 2011 at the earliest,” he said.

Construction activities associated with the expansion of Curragh to 8.0 to 8.5 million tonnes per annum of export coal will resume next week.

The previous force majeure notice issued on Thursday, 2 December 2010 for coal deliveries remains in place. 

Mr Butel said that the recent flood emergency had severely affected many communities in the region, with many people losing their homes. “This has been a flood the likes of which we have never seen before in the region and certainly not in the life of the Curragh mine.  Our thoughts are with all those people who have been so severely affected by the flood”.  

“I would also like to acknowledge the fantastic efforts by all those involved with safe guarding the Curragh mine during this very difficult time.  It has been another excellent team effort,” he said. 

With the local access road from Blackwater to the Curragh Mine remaining open despite widespread rain and flooding, Curragh mine has been able to maintain limited dragline operations.

Mine personnel have also been undertaking flood preparation works in advance of a forecasted flood surge in the Mackenzie River which lies adjacent to Curragh North operations.  

External forecasters predict the Mackenzie River to peak on Sunday 2 January 2011 at levels that will exceed the magnitude of the flood peak of January 2008.

Executive General Manager Rod Bridges is confident that the Curragh North levee system and other preventative measures will protect Curragh and the Curragh North existing operations from the Mackenzie River flood surge as well as further rain.

“Our levees are designed to accommodate a 1 in 1,000 year flood event,” Mr Bridges said. 

With major flooding cutting major roads and highways across Central Queensland, many Curragh employees have been unable to return to work after vacations following the Christmas public holidays.

Curragh needed to fly in selected employees from Rockhampton to support flood preparation activity and begin the groundwork necessary for full resumption of operations 

Wesfarmers force majeure notice issued for coal deliveries will remain in place until all predicted flood peaks pass. 

Further updates will be provided as more information becomes available.  

Ends

Following heavy rain from the aftermath of Cyclone Tasha, major flooding is occurring in Central Queensland. This is the second major flood event in the region following unprecedented rainfall in December.Access roads via the Capricorn Highway to Blackwater have been closed.This has prevented a significant number of employees from returning to work following the Christmas public holidays. The local access road from Blackwater to the Curragh Mine remains open.

A major flood surge in the Mackenzie River adjacent to the Curragh North mining area, is presently expected to peak on Sunday 2 January 2011. External forecasts indicate that this event will exceed the magnitude of the flood peak of January 2008.

Floodwaters from the Mackenzie River continue to be contained by the levee protecting mining operations at Curragh North.

All mining operations at Curragh North have been suspended including the Curragh North conveyor, and draglines 301 and 304 have been relocated to higher ground.

Limited dragline operations are continuing in the Curragh mining area.

Curragh is flying selected employees in from Rockhampton to support the current limited operations and for flood surge preparation works at Curragh North.

Queensland Rail has supended train operations on the Blackwater line. The previous force majeure notice issued for coal deliveries remains in place.

Wesfarmers Resources Managing Director Stewart Butel is confident that the Curragh North levee system which is designed to accommodate a 1 in 1,000 year flood event, and other preventative measures will protect Curragh and the Curragh North operations from the predicted major flood surge and further rain.

Further updates will be provided as more information becomes available.

For further information contact: Stewart Butel

Managing Director, Wesfarmers Resources

(07) 3031 7794

RAIN IMPACTS CURRAGH OPERATIONS – 06 DECEMBER 2010

Curragh mine at Blackwater has been able to resume operations after approximately 200mm of rain cut off the main access road to the mine and created localised flooding on Friday 2 December.

Since Saturday, employees and contractors have undertaken some train loadout operations, recommenced construction of Curragh’s new coal handling and preparation plant, and established dewatering operations for clean rainwater.

Mining operations have recommenced at Curragh however, mining operations at Curragh North are yet to recommence due to flooding of the access road with water levels up to 4.6m in three different locations.

Although Curragh has experienced no direct rain since Friday, management are keeping a close eye on a forecasted flood surge scheduled to reach the mine in the early hours of Tuesday 7 December.

As a precautionary measure, Curragh management relocated Dragline 304 to higher ground over the weekend with Dragline 301 scheduled to be in a similar position by 3.00pm today.

Curragh Executive General Manager Rod Bridges, is confident that the Curragh North levee system and other preventative measures will protect Curragh and the Curragh North operations from the predicted flood surge and further rain. “I want to acknowledge and thank the employees and contractors who went beyond the call of duty over the weekend to prepare the site for whatever weather we experience over the next couple of days,” Mr Bridges said.

Ends.

For further information contact Rod Bridges Executive General Manager – 4986 9201 or 0419 930 585

Download: Media Release Rain Impact – No 4

RAIN IMPACTS CURRAGH OPERATIONS – 04 DECEMBER 2010

After a night of little rain, Curragh mine employees were able to access the site this morning (Saturday 04/12/10) and begin limited operations.

However, the access to Curragh North remains cut off.

Construction on Curragh’s new Coal Handling and Preparation Plant has recommenced and minor dewatering activities established.

The highest priority for Mine management today is to relocate draglines to higher ground in preparation for a forecast flood surge scheduled to impact Curragh North operations between 10.00pm Sunday 05/12/10 and 3.00am Monday 06/12/10.

Curragh suspended operations for 24 hours yesterday (Friday 04/12/10) after receiving approximately 150 – 200mm of rain over the previous 24 hour period.

The resulting floods cut the main access road to Curragh mine from the Capricorn Highway, closed the Curragh North access road and resulted in some localised flooding on-site.

Further updates will be provided as more information becomes available.

Ends.

For further information contact:
Rod Bridges Executive General Manager – 4986 9201 or 0419 930 585

Download: Media Release Rain Impact – No 3

RAIN IMPACTS CURRAGH OPERATIONS as at 2.55pm – 03 DECEMBER 2010

Management at Curragh mine at Blackwater will suspend night shift operations as a result of continued flooding of local access roads.

It is expected that limited mining operations will recommence tomorrow with the day shift commencing at 10.00am.

Pit operations were suspended early this morning after Curragh received approximately 150 – 200mm of rain in the past 24 hours.

The heavy rain has cut the main access road to Curragh mine from the Capricorn Highway.

Flooding of Blackwater Creek also cut the Curragh North access road and resulted in some localised flooding on-site.

Further updates will be provided as more information becomes available.

Ends.

For further information contact:
Rod Bridges Executive General Manager – 4986 9201 or 0419 930 585

Download: Media Release Rain Impact – No 2

RAIN IMPACTS CURRAGH OPERATIONS – 03 DECEMBER 2010

Following heavy rain in the past 24 hours access to the Curragh mine at Blackwater has been cut and all pit operations on site suspended pending the reopening of the access roads to the mine.

Curragh has received approximately 150 – 200mm of rain in the past 24 hours which has resulted in the main access road from the Capricorn Highway being cut. Flooding of Blackwater Creek has cut the Curragh North access road and resulted in some localised flooding on-site.

Dayshift employees have been advised to remain at home until further notice and the Curragh Incident Management Team is closely monitoring the situation.

Further updates will be provided as more information becomes available.

Ends.

For further information contact:

• Rod Bridges Executive General Manager – 07 4986 9201 or 0419 930 585
• Kent Beasley Manager Corporate Affairs – 07 3031 7731 or 0427 574 838

Download: Media Release Rain Impact – No 1

Wesfarmers Curragh has picked up its second award for its overland conveyor when the Curragh North Conveyor project won the Queensland Engineering Excellence Products and Manufacturing Facilities category at the Queensland awards ceremony on October 17.

The conveyor designed, constructed and commissioned by Laing O’Rourke which at 20.02 kilometres is the longest single flight conveyor in the world, has already won the 2007 Bulk Handling Facility of the Year.

The project has achieved significant reductions in power draw as well as capital and operating cost savings of about 40 per cent.

Commissioned in 2007, the overland conveyor transports ROM coal from Wesfarmers Curragh’s new mine at Curragh North to its existing mine at Curragh. All coal processing and rail loading facilities are located at the existing Curragh mine.

Wesfarmers Curragh Project Manager, Stephen Downs said the design of the Curragh North Materials Handling facility had minimised local environmental impacts such as dust, visual amenity, noise and vibration.

“The project delivered Wesfarmers Curragh a high-quality reliable asset which would assist to underpin the viability of the Curragh North mine in the long term,” Stephen said.

“The Curragh North coal reserves exceed 130 million tonnes of coal so it was vital to ensure a materials handling system could transport these volumes efficiently and in an environmentally responsible manner.”

The project is now in the running for the national award which will be announced in November.