WMC Sustainability Site 2004

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Leinster Nickel Operations

Safety Performance

Leinster Nickel Operation had seven lost time injuries during 2004, compared with eleven in 2003 and five in 2002.

<table cellspacing="1" class="mtitable" summary="This table shows the Injury Frequency Rate (Injuries per million hours worked) for the past 5 years."> <caption>Injury Frequency Rate</caption> <thead> <tr class="headrow"> <th>Year</th> <th>LTIFR</th> <th>MTIFR</th> </tr> </thead> <tbody> <tr> <td>2004</td> <td>2.8</td> <td>13</td> </tr> <tr> <td>2003</td> <td>4.5</td> <td>10.2</td> </tr> <tr> <td>2002</td> <td>2.5</td> <td>14.0</td> </tr> <tr> <td>2001</td> <td>3.7</td> <td>16.5</td> </tr> <tr> <td>2000</td> <td>5.5</td> <td>20.2</td> </tr> </tbody> </table>
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.

This is a significant improvement in safety performance. During the past three years, hours worked on-site have increased from approximately 2 million in 2002, to more than 2.4 million in 2003 and over 2.5 million in 2004. The frequency of lost time injuries decreased to 2.8 in 2004, down from 4.5 in 2003 and 2.5 for 2002.

Leinster Nickel Operation has achieved a decrease in the frequency of lost time injuries despite a high turnover of contract personnel and an industry-wide shortage of skilled and experienced personnel.

The severity of lost time injuries, measured by duration, has also been greatly reduced over the last three years. The duration rate in 2004 was 17 days, down from 26 days in 2003, and 67 days in 2002.

The number of medically treated injuries has remained fairly constant. There were 33 medically treated injuries in 2004, compared with 25 in 2003 and 28 in 2002. The frequency of medically treated injuries, which takes into account the increase of hours worked, was 13.0 for 2004, 10.2 in 2003 and 14.0 for 2002.

The injury statistic summaries above include nine back injuries and nine hand injuries. In response to the substantial number of back injuries, a back care program was presented to work groups by Trench Sportz, to raise awareness of back care in the workplace. In addition, the need to wear appropriate hand protection when performing manual tasks has been mandated and included in workplace inspections to reduce the potential for hand injuries.

In addition to lost time and medically treated injuries, Leinster Nickel Operation also reports serious potential incidents. These are incidents considered to have the potential to result in a fatality or permanent physical disability. During 2004, Leinster Nickel Operation recorded 20 serious potential incidents, compared with 11 during 2003. Serious potential incidents are investigated and followed up with actions designed to prevent a recurrence of the incident. The majority of serious potential incidents involved people or objects falling or coming in contact with electrical energy.

Safety Management

The primary safety focus for Leinster Nickel Operation during 2004 has been the implementation of five priority WMC Environment, Health and Safety Management System (EHS MS) Standards. These are Risk and Hazard Management, Contractor Management, Management of Change, Environmental Impacts and Health Impacts. The priority standards were identified in late 2003 through an analysis of information including safety performance data, corporate EHS priorities, audit findings, EHS surveys and reports, and an estimation of the site's progress in improving safety.

Implementation of the priority EHS MS Standards has focused attention on critical actions and closure of system gaps to ensure compliance with the new standards. Progress has been steady and implementation has been structured and controlled to ensure the changes are sustainable. All EHS MS Standards will be audited in 2005 to assess the progress of implementation.

All critical actions identified during the five Major Hazard Standard audits, completed in 2003, have been completed.

The second major safety focus during 2004 was the completion of a ‘Back to Basics’ audit, aimed at assessing the effectiveness of the site's safety management systems in four key areas: Leadership, Policy and Organisation; Risk and Hazard Management; Learning from Incidents and Training and Competencies. Independent auditors made recommendations for each area.

A key innovation from the Back to Basics audit was the establishment of a site Health and Safety Leadership Team, consisting of the LNO General Manager and senior Department Managers. The charter of the Health and Safety Leadership Team is to establish a heightened focus on safety and to facilitate sustainable improvements in safety performance and safety culture across the site.

During early 2005 the Health Safety Leadership Team will establish a Health and Safety Committee and provide it with leadership, guidance and engagement criteria in order to progress LNO's safety journey. The Health and Safety Committee will be represented by the site's General Manager, EHS Manager, Senior Operations Managers, Team Leaders and employee Health and Safety Representatives. The purpose of the Health and Safety Committee will be to support the Health Safety Leadership Team and facilitate safety performance improvement by acting as a conduit between the Health Safety Leadership Team and operational employees.

A third major safety management activity on-site during 2004 was the development and delivery of training packages to assist with the implementation of the recently developed WMC Permit to Work Major Hazard Standard. This ensures a consistent approach to controlling high-risk work activities such as confined space entry and equipment isolations.

‘Take Time, Take Charge’ Safety Toolbox Talks are a key component of our approach to safety awareness. These are conducted on a monthly basis, on topics relevant to the site's operations. Leinster Nickel Operation has also conducted eight memorable and emotional ‘Take Time, Take Charge’ Difference sessions during 2004, with a total of 116 attendees.

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