Key challenges

Occupational health risks at Xstrata's operations include exposure to dust, noise, vibration, chemicals and heat as well as repetitive, physical work that can cause injury. The major community health issue facing Xstrata's operations is the HIV / AIDS epidemic in South Africa.

HIV/AIDS

HIV / AIDS is more than simply a health issue; it also has social, cultural and financial effects for Xstrata, its employees and the wider community. We estimate that around 20% of employees in our South African business are HIV-positive, making this the most significant health issue that Xstrata faces. To tackle this problem in a meaningful and sustainable way, Xstrata has adopted a strategic risk management and intervention approach. This approach addresses the underlying factors which contribute to the spread of HIV / AIDS, as well as providing education and medical treatment for employees. Our strategy has been developed in consultation with our employees, local government and external experts and is supported by a cost-benefit analysis prepared by Xstrata Coal South Africa.

Of all our operating regions, South Africa is the most affected by HIV / AIDS. The cost-benefit analysis has shown that the estimated cost of doing nothing to address HIV / AIDS ranges from 3% to 6% of our annual wage bill. The impact of the disease on costs includes increased absenteeism, loss of productivity, accelerated or premature payment of death benefits and increased recruitment and training costs.

The voluntary counselling and testing programme underway aims to maximise the number of employees tested, to encourage employees to know their status, to modify their behaviour and seek treatment accordingly. We believe the benefits associated with maximising the uptake of our voluntary counselling, testing and treatment programme outweigh the costs involved and compare very favourably with the cost of doing nothing. This analysis demonstrates that as well as fulfilling our ethical and social responsibilities, it makes strong business sense for Xstrata to respond proactively to the spread of HIV / AIDS. Our strategy, which was developed in 2002 and is in its final implementation phase, includes:

• the establishment of a steering committee of senior executives, employees and local government representatives;
• the development and implementation of a knowledge, attitude and practices survey;
• establishment of an employee housing initiative, providing funding for family accommodation near our operations;
• full-time care for orphans;
• voluntary prevalence testing and counselling campaigns to encourage employees to know their status (some sites have extended this service to include the families of our employees); and
• a direct AIDS intervention strategy, including:
  • workplace mobilisation, education and training;
  • HIV / AIDS voluntary counselling and testing campaigns;
  • a voluntary wellness and expert treatment programme for employees who are HIV-positive that includes primary care and a network of general practitioners;
  • an expert treatment programme ensuring treatment regimes are optimal; and
  • a toll-free help line for employees and families called Access Health.

Xstrata Coal's Heath Action!™ programme

Xstrata Coal South Africa has joined forces with local company Reaction Consulting!™ to:

• encourage employees to take personal health action and know their current HIV status;
• encourage employees who are HIV-positive to seek medical care;
• connect employees with HIV / AIDS to appropriate care and support services to meet their health needs; and
• create a supportive work environment, increase the level of understanding and empathy for employees living with HIV / AIDS among fellow employees, and support a workplace free of discrimination.

Since the introduction of voluntary counselling and testing (VCT) in September 2004, 76% of employees in these divisions have participated in VCT, an unprecedented level of participation. Around 45% of employees who are HIV-positive have voluntarily registered for the care and treatment programme offered by an outside service provider as part of Health Action!™, under which they receive advice and appropriate treatment from contracted health service providers, including anti-retroviral treatment and treatment for the prevention of mother-to-child transmission. Employees who test negative for HIV / AIDS can learn how to remain healthy. Early signs are that the programme is winning support amongst employees who encourage one another to "know their status". This is particularly encouraging given the social stigma sometimes associated with HIV / AIDS. Our target is to achieve 100% uptake and to encourage all HIV positive employees to register for the care and treatment programme.

The Health Action!™ programme focuses on taking employees from a state of HIV/AIDS 'readiness' to 'health action' – actively addressing their health issues over the long term. The programme achieves this at three levels:

• Management initiatives:
  • the provision of technical support and implementation planning to ensure that all components of the programme come together effectively and are correctly sequenced to achieve the greatest impact;
  • ensuring buy-in by management through information and leadership training for managers, supervisors and unions; and
  • reviewing policies and procedures to ensure that these align with the programme and can respond to situations that might arise.
• Social marketing of the 'I know! the way to live' education programme to encourage employees to know their status and manage their lifestyles accordingly:
  • an evolving personalised poster campaign;
  • developing content for Xstrata's in-house publications; and
  • distribution of 'I know! the way to live' personal guidebook.
• Mobilising champions of the response:
  • identification of workplace champions;
  • training and equipping champions as 'activators' through activation training events; and
  • supporting activators at work to encourage their peers to take a proactive approach to their health.

The Health Action!™ programme has been implemented in the iMpunzi and Tweefontein divisions and is being rolled out to all other Xstrata Coal operations in South Africa in 2005.

Xstrata Coal primary health clinic, located amongst Witbank coal operations, South Africa

AIDS orphans

Children who have lost their parents to AIDS are often left destitute. Xstrata helps local communities manage this difficult issue by providing orphans with accommodation at three centres in South Africa – the Middelburg Care Village, the Ratanang Care Centre 1 and the Ratanang Care Centre 2.

The Middelburg Care Village was launched in April 2004, following a ZAR2 million donation from Xstrata Coal South Africa. The village is managed by the Rotary Club association and Xstrata is represented on the Board of Directors.

The village is also home to 17 disabled children, who live in the Sibambane Stimulation Centre (Sibambane is a Zulu word meaning 'Let's support each other by holding hands'). This allows the village to provide care to a wide range of children, and avoids any stigma being attached to children who are orphaned due to AIDS.

In 2001, we established our first home for AIDS orphans in Bleskop, near Rustenburg. The Ratanang Care Centre provides accommodation for 70 children, from newborn babies to six-year-olds, from the nearby villages of Thekwane, Mfidikwe and Pothemfi.

In September 2003, we established a second centre at the Sunrise Park area near the Rustenburg plant when Xstrata purchased a house and the adjacent property. The Ratanang Care Centre 2 is home to 100 orphans. In setting up this centre, we worked closely with the Department of Social Welfare to identify the children most in need. The centre's main objective is to provide nutritious meals, stimulation and a caring, safe environment.

Training and awareness

Our awareness campaign begins at induction – HIV / AIDS awareness modules are conducted as part of our general induction training. Posters and other information are displayed on our noticeboards and condoms are freely available at all our operations.

All Xstrata Coal employees undergo an induction to the voluntary counselling and testing programme after they return from annual leave each year and regular roadshows aim to ensure that no one misses the opportunity to participate or to learn about the VCT programme.

We are also conducting an awareness programme aimed at South Africa's youth. 'Ikasi', which means local residential area, is a school-based HIV / AIDS education initiative targeting to 40 schools around Witbank and Ermelo. A printed comic/ magazine tells the story of teens affected by HIV/AIDS and is used in the schools to promote safer sexual behaviour. Over time, we will expand the programme to include on-air discussions on youth-focused radio stations.

In 2003, Xstrata acquired MIM Holdings Limited, a mining and metals group that doubled the Group's size.

Supporting external HIV/AIDS initiatives

Due to its work in South Africa on HIV/AIDS, Xstrata was invited to join the Global Business Coalition and became a member in early 2005. The Global Business Coalition is the peak organisation leading the business fight against AIDS and "seeks to implement sustainable long-term initiatives that are focused on managing and preventing the spread and transmission of HIV / AIDS, sexually transmitted infections and tuberculosis with the community business sector's unique skills and expertise." The coalition believes international companies can help by taking action in the workplace and extending programmes into communities; by using products, innovation, skills and services creatively; and by advocating for greater action by all sectors of society.

Xstrata Coal continues to participate actively in the HIV / AIDS Powerbelt Initiative and Xstrata Coal is a voting member of the Steering Committee. The Powerbelt HIV/AIDS Project is a unique collaborative initiative established by coal mining industry partners Xstrata Coal, Anglo Coal, Ingwe, Sasol, their associated industry partners and various governmental departments including the Departments of Health, Minerals and Energy and the Council for Scientific and Industrial Research. The Powerbelt vision is to initiate a joint co-ordinated intervention to implement sustainable long-term initiatives focused on managing and preventing the spread and transmission of HIV / AIDS within the community. In 2004, Powerbelt focused on the education and training of 190 peer educators, who are now responsible for educating the community on HIV / AIDS and helping to distribute condoms. This year, employees from Xstrata Alloys' Rustenburg smelter underwent peer training and are now able to provide fellow employees with a forum to discuss their HIV / AIDS status and to obtain help, support and advice. .