Our performance

Graph of LTIFR per million hours worked Graph of TRIFR per million hours worked Graph of Injuries by type

All Xstrata operations have comprehensive safety management systems, which are fully aligned to the international Occupational Health and Safety (OH&S) management standards OHSAS 18001 and AS/NZS 4801.

The HSEC Assurance audits showed our OH&S management performance across the regions was good in Europe, Australia and South America and satisfactory in South Africa. OH&S management systems achieved a satisfactory score in Europe and Australia but were weaker in South America and South Africa where extra resources have been allocated to rapidly improve these systems.

While third party certification is not a corporate requirement, Xstrata's Lydenburg chrome smelter is externally certified to OHSAS 18001 and the Rustenburg, Wonderkop, Lydenburg and Boshoek chrome smelters, San Juan de Nieva zinc smelter and the Rhovan vanadium plant are targeting third party certification over the next two years. Management systems at six sites are certified to ISO 9001 ñ Rustenburg, Wonderkop, Boshoek, Nordenham, Northfleet lead refinery and the Townsville copper refinery. A document mapping the requirements of OHSAS 18001 and AS/NZS 4801 to Xstrata's HSEC Management Standards is available from our website.

Fatalities

Xstrata did not achieve its goal of being a zero fatality business in 2005. Tragically, nine people (three employees and six contractors) lost their lives in seven workplace incidents, compared with six fatalities in 2004. The majority of these incidents occurred in southern Africa, with one incident in Peru and one in Spain. The primary causes of fatalities were falls of ground and incidents involving mobile equipment and plant.

Each fatal incident is fully investigated and reported to the Executive Committee and Board, remedial actions are undertaken and safety systems improved.

Over the last 18 months our two commodity businesses operating in southern Africa have been implementing specific, intensive fatality prevention programmes. These programmes and an analysis of factors contributing to critical and fatal incidents are discussed in more detail.

Injury frequency rate performance

Xstrata measures total recordable injuries, which includes all injuries except first aid cases, per million hours worked. This measure includes the impact of significant injuries on employees who may be able to perform alternative duties, but not their normal function, and who would not be captured by indicators based on lost time injuries alone. Recordable injuries were adopted by the Occupational Safety and Health Administration (OSHA) of the USA and the Minerals Council of Australia because they provide a more accurate measure of the number of people being injured. First aid injuries are recorded and investigated at the site level but are not part of the recordable injuries statistics. The lost time injury frequency rate is also reported to provide a basis for comparison with our industry peers.

Xstrata achieved substantial improvements in injury frequency rates in 2005. Overall, the total recordable frequency rate (TRIFR) decreased by 19% and the lost time injury frequency rate (LTIFR) was 18% lower than in 2004.

Summary of fatal incidents
Date Fatal incident
March 2005 Xstrata Copper Las Bambas exploration site, Peru
One employee sustained fatal injuries from falling down a shaft in old mine workings on the exploration lease while sheltering from a storm.
April 2005 Xstrata Coal Witcons underground mine, South Africa
One employee was hit by a shuttle car underground after entering a work area.
May 2005 Xstrata Alloys Maloma underground anthracite mine, Swaziland
Three contractors lost their lives through a fall of ground during routine work.
June 2005 Xstrata Alloys Kroondal chrome mine, South Africa
One contractor sustained fatal injuries when caught in the conveyor of a crushing/screening plant.
July 2005 Xstrata Coal Spitzkop coal mine, South Africa
One employee was crushed when a forklift overturned.
August 2005 Xstrata Alloys Kroondal chrome mine, South Africa
One contractor sustained fatal injuries through a fall of ground.
November 2005 Xstrata Zinc Hinojedo roasting plant, Spain
One contractor sustained fatal injuries from a falling pipe during demolition works.
Total recordable injury frequency rate
Total recordable injury frequency rate
  2005 2004 %
improvement
Alloys 11.5 16.8 31.6
Coal 16.4 16.4 -
Copper 12.9 24.1 46.5
Zinc 24.5 25.6 4.3
Group total 15.0 18.5 18.7

Xstrata Copper was the major contributor to this achievement with a 47% reduction in the TRIFR from 2004. While both divisions of Xstrata Copper contributed to this significant improvement, Minera Alumbrera contributed 61% of this total improvement. Key to this success has been the continued leadership development programme and the maturity of their behavioural safety programme focused on completing quality workplace safety observations.

At our South African operations, comprehensive manager and supervisor training programmes, active workforce participation in safety initiatives together with behavioural based safety programmes, as part of the intensive safety effort over the past 18 months, led to improved injury frequency rates at Xstrata Alloys and Xstrata Coal South Africa, where the TRIFR was reduced by 32% and 23% respectively.

Xstrata Coal's NSW operations achieved a 31% reduction in the LTIFR compared with 2004 and a 7% reduction in the total recordable injury frequency rate. Injury frequency at Xstrata Coal's Queensland operations remained at the same level as 2004. In 2006 the NSW operations are focussing on the prevention of manual handling injuries, particularly in underground operations. Since the formation of our Queensland coal division, as part of the acquisition of MIM, the focus has been on achieving legislative compliance and programmes to prevent catastrophic events, (see 2004 case study on preventing frictional ignition). Initiatives to reduce more common, less severe injuries in 2006 include the introduction of a behavioural based safety programme targeted at micro-behaviours, a safety leadership workshop for all senior managers and executives and numerous site based initiatives.

Xstrata Zinc achieved a good result in reducing lost time injury frequency rates by 25%, although the lost time and total recordable injury frequency rates in this business remain higher than the Group average and efforts are continuing to bring their performance in line with Xstrata's other businesses. In Spain a higher lost time injury frequency rate is partly due to the fact that alternative duties cannot be offered to injured workers.

Xstrata's TRIFR and LTIFR performance continue to be equivalent to or better than the Minerals Council of Australia (MCA) industry averages for these measures.

Recognition for safety

During the year Ravensworth coal operations in Australia won the People's Choice category in the 2005 New South Wales Minerals Council's Safety Innovation Awards (see case study).

Safety fines and prosecutions

In 2005, Xstrata incurred no safety fines or prosecutions.