The Kalgoorlie Nickel Smelter and Kambalda Concentrator have been free of lost time injuries for more than 16 months. This is a significant and very pleasing improvement - during 2003, KNSC recorded six lost time injuries. The Serious Injury Frequency Rate, which is the number of lost time and medically treated injuries per million hours worked, has plateaued, at approximately 20 for the last 3 years (20.6 in 2004, 20.0 in 2003 and 17 in 2002).

Definitions
LTIFR	Lost-time injury frequency rate - the number of lost-time injuries per million hours worked.
MTIFR	Medically-treated injury frequency rate - the number of medically-treated injuries per million hours worked.

Constant awareness of risk identification and control is crucial for the prevention of workplace injury. In addition to lost time and medically treated injuries, we also report serious potential incidents. These are incidents considered to have had the potential to result in a fatality or permanent physical disability. During 2004, KNSC recorded 24 serious potential incidents, compared to 31 during 2003. A third of these occurred as a result of falling objects, which is a key safety focus for the smelter and concentrator.

Serious potential incidents are investigated and followed up with actions designed to prevent a recurrence of the incident. A ‘One Page’ Bulletin is issued and discussed at toolbox meetings to ensure learnings are provided to all personnel. The most serious incidents are also included in our company-wide Lessons Learned Bulletins.

KNSC believes that a combination of programs to improve our workplace, educate its employees and encourage positive safety behaviour has contributed to a reduction in the severity of injuries and a reduction in the number of serious potential incidents.

Safety Management

Improvements to safety performance across the Kalgoorlie Nickel Smelter and Kambalda Concentrator operations in 2004 have focused on team building and improving safety leadership. Key safety initiatives implemented during 2004 include:

• The commencement of a safety-leadership training program, for all supervisors and frontline personnel. The program, run over two days, aimed to lift safety performance by improving supervisory skills in teamwork, task assignment and the ability to give and receive feedback. The workshops, run outside normal work routines, encouraged closer interaction across disciplines and provided an opportunity to better understand safety expectations, leadership roles and responsibilities.
• The introduction of a program of safety focus areas, resulting from a review of safety performance by the management team. The program concentrates on achieving improvements in learning from incidents, correct selection and use of personal protective equipment and correct storage of equipment and materials.
• The documentation of key learnings from serious incidents in a ‘One Page’ flyer presented at toolbox and safety meetings. This valuable process ensures all employees discuss and understand the incident, causes and actions to prevent recurrence.
• The introduction of a program called ‘Everything has a Place and Everything in its Place’, aimed at addressing injuries and incidents across the operations resulting from poor housekeeping. This comprehensive program includes improved storage systems and demarcation, clear signage, better lighting, positive promotions on safety boards, use of photos to show improvement, weekly safety themes at production meetings, clean-up campaigns and inspections undertaken by the leadership team.
• Using toolbox meetings and education programs to promote a renewed focus on selecting the correct personal protective equipment for all jobs, and using the equipment correctly. This important initiative was aimed at reducing hand and eye injuries in particular and included an extensive evaluation of improved eye and respiratory protection equipment.
• Upgrading respiratory protective devices at the smelter and concentrator, and implementing a test program to ensure the correct facial fit of all units, including dust masks and respirators. This major step has resulted in a renewed understanding and appreciation, for both employees and contractors, of the importance of respiratory protective devices and the need to have the correct unit properly fitted and maintained.
• The significant enhancement of practices and procedures for work at heights, following an incident in 2004.

The Kalgoorlie Nickel Smelter and Kambalda Nickel Concentrator operate separate and independent employee-based health and safety committees, overseen by a single management safety committee.

The Safety Steering Group consists of the senior management team. The Safety Steering Group meets on a weekly basis to review site safety trends, examine positive safety performances, discuss safety management direction and focus, and review the progress of any actions or investigations. An important part of this meeting is the presentation of learnings and findings from investigations into serious incidents and serious potential incidents, to ensure management have an understanding of safety issues and that resources are prioritised for initiatives designed to prevent similar occurrences.

The Kalgoorlie Nickel Smelter Site Safety Lead Team operates as the key employee safety forum, with representatives from the workforce and the management team. In late 2003, the group developed a new charter to encourage more open and meaningful discussion on safety issues at a higher level. The structure and role of the team is currently under review, with an emphasis on maintaining regular attendance and reinvigorating the team.

Crisis and Emergency Response

The Kalgoorlie Nickel Smelter and Kambalda Concentrator Emergency Management Plan covers all emergencies involving the smelter and concentrator and the surrounding areas for which WMC has legal, ethical or community responsibilities. It was updated during the year to comply with the WMC Environment, Health and Safety (EHS) Management System Standard for Emergency Preparedness.

The WMC EHS Management System Emergency Management Standard provides a three-tiered management structure, with Emergency Response Teams and Emergency Management Teams at sites and a Crisis Management Team in Melbourne.

A highlight of 2004 has been the strengthening of KNSC's Emergency Response Teams at the smelter and concentrator. The Emergency Response Teams are responsible for conducting life saving, first aid, fire fighting and repair and recovery in response to an incident. Police or other Emergency Services may provide assistance in some situations. To ensure team members have the appropriate skills, ten Emergency Response Team skills training modules are completed every year. Members of the Emergency Response Team must undertake at least eight modules each year. In addition, during 2004, a training drill involving the Emergency Response Team was completed to test the effectiveness of the team. The Team also competed creditably in the Chamber of Minerals and Energy of Western Australia Mines Rescue Competition (Aboveground Category), achieving its best result yet.

The Emergency Management Team provides technical, logistical and services support to the Emergency Response Teams. This team delivers tactical plans to mitigate the effects of any emergency. During 2004, the Emergency Management Team participated in a desktop drill, based on a realistic emergency scenario.

The Crisis Management Team is activated in response to a crisis and focuses on strategic issues which may affect WMC's future operability, profitability or reputation. During 2004, the Crisis Management Team participated in a desktop drill, based on a realistic emergency scenario.

The sites' mustering procedures also form a critical part of the Kalgoorlie Nickel Smelter and Kambalda Concentrator Emergency Management Plan, outlining how each site will be evacuated if necessary. Kalgoorlie Nickel Smelter muster procedure was updated in 2004 with a whole-of-site muster exercises conducted in February 2004. The muster plan for Kambalda Nickel Concentrator is currently under review.

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