=+Rush Resources Ltd (RR) is a gold mining company that operates mines throughout Queensland.

Many of these mines are in pristine and environmentally sensitive parts of far-north Queensland.

Of particular concern is that the mining operations use chemicals in the leaching process that are very damaging to flora and fauna. If these chemicals are released, they get into the waterways that lead to the ocean, and then out to the Great Barrier Reef. For the past five years RR has recorded the following costs and other measures associated with their environmental performance management:

1 2

3 4

5 6

7 8

9 A B C D E F G 2010 Training employees in environmental management Equipment maintenance Monitoring Voluntary clean-up Fines Law suits Total 5 120 3 840 6 400 6 656 2 816 768 25 600 2011 2012 2013 2014 2015 5 370 3 938 8 950 7 160 7 518 2 864 35 800 5 575 2 788 13 938 2 788 25 088 5 575 55 752 3 673 2 938 7 345 735 47 743 11 018 73 452 1 513 2 270 6 809 757 49 173 15 130 75 652 1 625 1 625 4 063 813 52 813 20 313 81 252

(Cost in thousands)

570 Chapter 14: Measuring and reporting sustainability M14_HORN3377_02_LT_C14.indd 570 2/09/13 3:55 PM Required 1 Classify the costs as prevention, appraisal, internal failure and external failure. Calculate the relative proportion of each type of cost.