Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 31 KEY POINTS – 2018 One fatality (2017: one fatality) Total recordable injury frequency rate (TRIFR) 3.39 (2017: 3.74) Lost-time injury frequency rate (LTIFR) 1.26 (2017: 1.04) Disabling injury severity rate (DISR) 116.43 (2017: 145.62) The Venture had no safety penalties or prosecutions The Venture’s policies and approach to safety management The Venture’s operations maintain stringent safety and risk management systems, which it aligns with the international standards: OHSAS 18001 and ISO 31000. Glencore collates best practice from each of its assets and from externally recognised leaders in safety management and shares this knowledge across the Glencore Group. Through Glencore, all the operations of the Venture are members of the International Council of Minerals and Mining. The Venture takes a proactive and preventive approach towards safety, aiming to instill a positive safety culture in which everyone fully integrates its safety values into their working lives. It has updated its approach to safety by updating its risk management framework. Glencore’s fatal hazard protocols and high potential risk incident reporting processes have been rolled out in the Venture. Glencore's Sustainable Development Director is responsible for safety, health and wellness. Safety programme overview Objective Supporting actions Zero fatalities We reviewed and strengthened our incident investigation process to include 24-hour notification of senior management and the Glencore corporate sustainability team for fatal incidents and launched a mandatory on-site fatality investigation process following any fatal incident. The Venture’s senior management must then report to the Glencore Board HSEC Committee on fatalities and the subsequent independent investigations in person. Any lessons learned that could further improve general fatality prevention are shared across the Group. We ensure independent third-party assistance is on site within 72 hours of a fatal incident. We developed SAFEALLOYS, a Group initiative to foster a safety culture based on behaviours and consequences at all levels. We rolled out fatal hazard protocols and life-saving behaviours (part of the SAFEALLOYS programme) across the Group. Reduction of TRIFR The Venture focused on reducing the TRIFR. The supporting actions resulted in the TRIFR reducing from 4.58 (2010 baseline) to 3.39 in 2018. The Glencore Fatal Hazard Protocols and Life Saving Behaviours, which provide a set of tools which initially are focused on the fatal risks, are being rolled out in the Venture as part of SAFEALLOYS. The life-saving behaviours are aimed at strengthening the focus in the Venture on behaviours and consequences rather than a rules-based culture. The fatal risk categories that Glencore has identified as being most hazardous and responsible for the majority of its fatalities include: energy isolation, working at heights, mobile equipment, ground/strata failure, confined space and electrical safety. Over and above this, the Venture highlights specifically people vehicle interaction as a key danger area. In 2018 there were 97 (2017: 104) recorded injuries in a workforce of 17 056 (including contractors). As was the case in 2016, in-depth analysis by the Venture revealed that no one single factoral cause stood out in 2018, but that ‘at risk behaviour’ remains a major problem. As safety is the number one priority in the Venture, a number of campaigns were rolled out and re-emphasised including ‘SAFEALLOYS’, ‘Life Saving Behaviours’ and ‘Safework coaching’. The Venture implemented the Fatal Hazard Protocols in 2015. Accountability Safety in the Venture is always the direct responsibility of Glencore’s senior management, who provide the leadership, systems and processes for the prevention of incidents and the elimination of fatalities in the Venture. The formal management structure documents responsibility for safety from the Glencore Board down to each individual Venture employee and contractor. The Venture puts considerable effort into embedding a safety culture in its operations. Its leaders are aware that they are expected to put safety before production or other considerations and to personally endorse safety initiatives and engage with employees at all levels to discuss safety issues and priorities. It concludes health and safety agreements with the trade unions. The sustainable development policies in place in the Venture are aligned with the Glencore Group Sustainable Development Standards. They set out its commitment to zero injuries and fatalities. The role of training The Venture’s investment in safety training is detailed on page 35 in the Human capital section of this report. It continues to use virtual reality training, combined with easy-to-read written instructions, on all its different procedures. The training is designed to ensure that employees cannot complete their training on a procedure until they have shown they fully understand it. Training, as can be seen from the detail on page 35 of this report, was a major focus during the year. Focus for 2018 was again on supervisory development training, ensuring that all supervisors understood their legal responsibility, life saving behaviours, fatal hazard protocols and critical controls. Human capital: safety