UPDATE ON OUR SAFETY JOURNEY. Dave Morris Global Head of Safety

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1 UPDATE ON OUR SAFETY JOURNEY Dave Morris Global Head of Safety

2 SAFETY Our Performance Current Focus Operational Risk Management Learning from Incidents Engaged Leadership Feedback from the 2009 Summit

3 OUR PERFORMANCE Anglo American managed operations Number of fatal injuries Year to date contractor total fatal injuries due to all causes Year to date employee total fatal injuries due to all causes Steady improvement in contractor safety performance. Four major projects in recent years. 3

4 SOUTH AFRICAN BU PERFORMANCE Anglo American South African operations (Platinum, Thermal Coal & KIO) Number of fatal injuries Year to date contractor total fatal injuries due to all cause Year to date employee total fatal injuries due to all causes 4

5 LOST TIME INJURIES 1.60 Anglo American managed operations LTIFR YTD Year to date employee LTIFR Year to date contractor LTIFR Year to date total LTIFR A plateauing of LTIFR performance Materials handling is the predominant agency of injury 50% of total Significant reduction in high energy agencies, FOG, falling objects 5

6 LOST TIME INJURIES SOUTH AFRICAN BU S 2.50 Anglo American South African operations (Platinum, Thermal Coal & KIO) LTIFR YTD Year to date employee LTIFR Year to date contractor LTIFR Year to date total LTIFR Careful analysis of data is needed High Potential Incidents to be the focus of improvement efforts Making use of leading indicators 6

7 CURRENT FOCUS STRATEGY DELIVERED THROUGH RISK BASED APPROACH RESILIENT Safety performance requires an integrated approach people and systems Anglo American safety journey model maps the road ahead 6 people and 17 system elements Three core programmes currently running Operational Risk Management Programme Learning From Incidents Leadership Engagement VFL Supported by formal business unit safety improvement plans PROACTIVE REACTIVE COMPLIANT BASIC 7

8 CURRENT FOCUS 1: OPERATIONAL RISK MANAGEMENT PROGRAMME Managing Risk Systematic identification of hazards Understanding the unwanted events that might materialise Implementation or improvement of controls Monitoring of control effectiveness Regular reviews and updates Ownership by those best placed to manage Understanding the business benefits that accrue 8

9 CURRENT FOCUS 2: LEARNING FROM INCIDENTS Preventing Repeats Report and record incidents accurately Investigate them rigorously to identify the weak or absent controls Improve control effectiveness Share the new knowledge with others Ensure improvements remain viable 9

10 CURRENT FOCUS 3: ENGAGED LEADERSHIP Visible Felt Leadership Leadership is everything... But it is also the hardest to get right all the time, every time Improved VFL approach interaction versus intervention Demonstration of values through interactive behaviours Evolving to 360 o approach climate of open safety dialogues with effective transfer of information 10

11 FEEDBACK FROM 2009 CONTRACTOR SUMMIT Five key areas 1. Tender and adjudication process Safety requirements not clear and criteria opaque. Price only really counts More structured information in tender docs. Self assessment style questionnaire. Building longer term relationships 2. Sharing best practice Insufficient sharing of best practice with contracting companies Hosted supplier conferences to bring people together to share.. Supplier SSD awards initiated to recognise performance. Topical SSD Conferences hosted transport 3. Relationships and trust Second class citizens / master and slave / commercial bullying Implemented a structured Supplier Relationship Management System which defines engagement frame work and promotes the exchange of ideas. 4. Capacity building, training and cultural alignment Contractor safety competencies variable, training should be given SRMP training included into induction for managers. Risk management key for good safety performance 5. Standardisation Inconsistent practices across the Group as far as site requirements go Developing standardised safety inductions, roll-out just commencing 11

12 SINGLE INDUCTION FOR CONTRACT EMPLOYEES Anglo American Passport KBC custodians of the data base Developed consultatively Inductions structured into Anglo American general induction + site specific induction Accredited for all Anglo American sites in SA One year validity Improved induction quality, more efficient time usage Anglo American Platinum Commenced on 02 October at some sites; 334 inductions accredited in October Progressive expansion of programme Thermal Coal Constructing new induction centre go live date mid 2013 (est) Kumba Iron Ore Commencing Q

13 CONTRACTOR PASSPORT or sms or scan barcode 13

14 WRAP UP MESSAGE We have made good progress and there is still more to do. We acknowledge the contribution made by contractor partners in our performance improvement We encourage sharing and the exchange of tools and ideas We know where we are going - together Use the safety successes to leverage a wider ambition There is currently a window of opportunity to make a meaningful change 14

15 THANK YOU