Retaining staff at the Kalgoorlie Nickel Smelter and Concentrator is a key issue, due to a critical shortage of workers in the mining and minerals industry. KNSC recognises that a combination of skills and experience can contribute significantly to achieving safe and reliable production. High retention is key to good safety and production performance.

Annual employee turnover at the smelter and concentrator during 2004 was 15%. Turnover trends are seasonal, with significantly more resignations during the warmer months. The group with the highest turnover was hot metals process technicians. Exit surveys of employees who have resigned indicate that a significant number of resignations are influenced by family circumstances and lifestyle choices.

In 2004 KNSC focused on improving retention through several initiatives. An analysis of market data relating to remuneration and benefits was undertaken, to ensure that we remain competitive. Key focus areas were the development of people, job design reviews, capability and succession planning, operational training and the development of a new remuneration structure for process technicians, expected to be implemented early in 2005.

Local employment initiatives have also been implemented to further reduce and stabilise turnover. In 2004, KNSC introduced an apprentice program that maps out an ongoing commitment to training young people through to 2010. There are presently eight apprentices in the system, which will increase to 15 in 2005. Most of these are from the Kalgoorlie area. KNSC also continued to source electricians and mechanical fitters from the local TAFE and started a high school traineeship program, with one participant in a technical field.

Employee Development Programs

Training was a significant focus at Kalgoorlie Nickel Smelter this year. Success Through People, a WMC-wide leadership program, has been completed by all managers and superintendents from the smelter and concentrator. In addition, 23 supervisors have attended regional Success Through People training in Perth. The remaining supervisors and team leaders will attend in 2005.

KNSC's Frontline Management Initiative continued as a core program and ran throughout 2004, with all supervisors completing at least three modules. Other targeted personnel have also completed modules as a result of recommendations from department managers. The program complements Success Through People and aims to improve leadership and management skills.

KNSC has continued to hold quarterly communication training days. The format includes an address by the site General Manager who reviews performance, outlines expectations in the next quarter and shares information about the site, WMC Resources and the global market in which it operates. This is followed by ann opportunity for formal interaction within teams, facilitated by team leaders. Discussions focus on safety, improvement in work areas and processes, and employee health. The sessions are designed to address concerns, share issues or discuss upcoming changes and improve teamwork skills. All employees are encouraged to ask questions and contribute in these team sessions. Sessions are run outside of shift times for Production staff, to maximize participation.

A key aspect of people development at the smelter and concentrator is employee involvement at technician level in a range of projects. This includes the Task Hazard Analysis review, site Personal Protective Equipment reviews, Remuneration Structure review, and Site Safety Lead Team review.

Employee development is further supported through occasional opportunities for employees to work together on unique challenges. A dedicated engineering and maintenance team at Kalgoorlie Nickel Smelter reduced a 28-day shutdown to replace the furnace reaction shaft roof, originally planned for mid-2005, to a 13-day shutdown in June 2004. This achievement was due to their innovative approach, with the pre-fabrication of the roof and a world-first ‘lift-in’ approach. The team, given the job of establishing plans and scopes for furnace improvement, created a solution that required extensive engineering and design, together with detailed assessments of every option, risk and contingency. The logistics of lifting an 80 tonne pre-fabricated refractory were complicated by the challenges of removing the existing pipe and steel work sitting on top of the furnace. Overall, the teamwork, planning and execution were world class.

KNSC has continued to help people improve their workplace through the delivery of 6 Sigma training during 2004. 6 Sigma is a structured, disciplined, people-based problem-solving tool with a focus on continuous improvement. The basic elements involve the ‘DMAIC’ problem solving technique - Define the problem/opportunity, Measure performance, Analyse performance, Improve performance, Control performance.

Three levels of 6 Sigma training are undertaken. Yellow Belt provides a general understanding of the problem solving tools and methodology, Green Belt is an intermediate level and Black Belt gives people all of the necessary tools to facilitate problem solving in any discipline. Since its introduction, 125 people have completed 6 Sigma training (7 Black Belt, 22 Green Belt, 96 Yellow Belt).

Many problems have been solved using 6 Sigma techniques, ranging from reducing lost time during furnace inspections, increasing production rates and improving matte product quality control. The benefits of these projects can be measured in many millions of dollars in benefits to WMC.

A Reliability Review was undertaken at the smelter in 2004 to identify opportunities for improved equipment set up, operating practices and maintenance effectiveness. Increased on-line time, more stable operation and reduced number of significant failures will increase production opportunities.

One of the outcomes of the reliability review was a recommendation for the development of an Authority to Maintain system for Maintenance Technicians, which complements the highly successful Authority to Operate system for Process Technicians, in place since 2003. The system is based on a training matrix, which outlines the training that must be completed by process and maintenance technicians. This ensures they have the correct skills to operate various processes or maintain equipment at the smelter and concentrator. It is anticipated that this will lead to improvements in operating performance and safety and environmental outcomes. The Authority to Operate system was extended to concentrator Process Technicians in 2004. Development of the Authority to Maintain system will be finalised and implemented at both sites in 2005.

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