Our safety activities

Safety programmes

Xstrata has implemented a range of programmes to address safety issues across its operations. Baseline risk assessments and action plans continued throughout 2004 and issue-based risk assessments and job hazard analyses have been completed for high-risk activities. Critical risk assessments, planned task observations and planned inspections are also continually used to manage safety hazards. We have established site-based safety teams and introduced the Xstrata HSEC Assurance Programme to all sites.

Safety signage at South Witbank coal mine, South Africa

Safety assurance

Xstrata's HSEC Assurance Audit was trialled at Bulga open-cut coal mine in New South Wales, Australia, in late October 2004. Following the successful trial, the audit schedule for 2005, which has been prioritised according to risk and Key Performance Indicator (KPI) performance, was approved by the Xstrata Board. All sites will be independently audited in 2005.

In addition, third-party and regulatory audits are conducted across our operations.

Third-party audits

Xstrata Alloys: 24 third-party audits were conducted during the year, which acknowledged the continuous improvement initiatives being undertaken.

Xstrata Coal: In South Africa, sites identified 'high risk' issues such as structural support or walk areas and immediately rectified them. Also, a regulatory compliance audit identified a number of areas where systematic documentation could be improved. No significant issues were identified from audits of Xstrata Coal's Queensland or New South Wales operations with the exception of one at Ulan underground mine where a specific action plan monitored by the Chief Operating Officer has been put into place to improve system performance at the mine.

Xstrata Copper: In north Queensland, a surface and underground fire protection systems audit and a major hazard facility audit were undertaken, with no significant findings.

Xstrata Zinc: During the year, safety and health management systems at our Spanish operations were successfully certified by an independent company, as required by Spanish legislation.

Regulatory audits

Xstrata Alloys: The operations were audited 57 times by health and safety regulators in 2004 with no significant findings.

Xstrata Coal: The Department of Mines and Energy conducted explosion audits at Spitzkop and Boschmans collieries in South Africa, with no significant findings. The Queensland Department of Natural Resources and Mines in Australia conducted the following:

• standard operating procedures audits at Newlands mine;
• a tyre and rim maintenance and fitting audit was conducted at the Oaky Creek Coal surface operation; and
• six mining audits, two electrical audits, one explosives audit and one 11 kV audit at Oaky Number 1 underground coal mine.

Xstrata Copper/Xstrata Zinc: In north Queensland, the Department of Natural Resources and Mines audited our copper and zinc operations on average approximately three times a week during 2004. The audit topics included:

• underground backfilling operations;
• concentrator operations;
• the use and maintenance of cranes;
• crushing and conveying systems;
• electrical plant and equipment; and
• emergency procedures.

Safety training and communication

Xstrata's operations conduct a comprehensive range ofregular health and safety training programmes. Safetytraining encompasses leadership development programmesfor managers and supervisors, risk assessment courses, stratacontrol, hazard reporting and a range of other topics relevantto our operations. Briefings and internal training sessionscover topics such as safe work procedures, fire fighting,ventilation, cardiopulmonary resuscitation (CPR) awareness,heat stress, operating mobile equipment, industrial hygieneand risk assessment. All HSEC incidents are reported accordingto Xstrata's Group reporting procedures, are fully investigatedand the lessons learnt are communicated to the relevant partsof the Group.

To facilitate effective communication between managers,employees, employee representatives and contractorsaround safety imperatives, we have introduced a variety ofcommunication mechanisms customised to each operation,in line with our communication and engagement standard.These range from site safety committees to executiveHSEC committees.

Xstrata also has a toll free 'whistleblowing line', for eachcountry in which Xstrata operates, for instances where it isnot possible for employees or contractors to speak to theirsupervisor or general manager over any issue or concern theymay have regarding compliance with any of our businessprinciples, including HSEC matters. The call line is independently

run by KPMG and any concerns reported through the telephone line will be relayed in confidence and on an anonymous basis to the Head of Internal Audit for appropriate action. Alternatively, there is a confidential email address:

Safety research

Xstrata participates in a range of safety research projects to enable us to continually improve our systems and performance. In 2004, a research project at Oaky Creek coal mine, Australia, tested vehicle stability on our diesel fleet. The testing was carried out on all our load, haul and dump (LHD) equipment and attachments after a roll-over incident in a New South Wales mine highlighted problems with operating the LHDs with attachments above a given height. We helped to fund a University of Queensland strategy and system development programme aimed at enabling the industry to manage its own safety performance. We also assisted in the development of Australian national standards for mine plan symbols, survey and drafting, and survey practices.