Climate change is one of the key economic and environmental challenges facing the world today, according to the Intergovernmental Panel on Climate Change (IPCC). Several economies including the United States, Europe Union, Australia, and New Zealand have or are developing policies aimed at reporting and limiting GHG emissions. Such legislation has the potential to impact our business - including the potential to increase costs for essential commodities such as diesel fuel and electricity. In July 2012, the Australia Clean Energy Act became the first legislation to impact our business through an imposed carbon tax on diesel fuel, petrol, natural gas, and purchased electricity. Its financial impact to our Australian operations is $30 million to more than $50 million annually.

In addition, our operations could be threatened by other events predicted by the IPCC, such as rising sea levels at our port operations and severe weather damage to site infrastructure - roads, dams, and process facilities. Floods or drought would severely impact our water balance.