Xstrata Coal SA

Contractor Academy

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Historical View

• Increase in the number of Contractors used in Xstrata.

• The number of serious Accidents and High Potential Risk Incidents increased.

• Delays and frustration with current processes (medicals/induction/first aid/licensing).

• Contractors employed outside there scope of work.

• Two fatalities involving Contractors during 2007.

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Fatality SWB – Komatsu Employee - 9 January 2007

Close up viewPosition of safety strut with cab elevated

Position where assistant lay to adjust pressures

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Causes

Direct• Design of support strut did not make provision for it to

be locked out• Machine shudder due to hydraulic faultUnderlying• Risk awareness• Modifications to ADT/Equipment• Safety devices ineffective• “Pirate” parts• Contractor management –sub contractors• Access control• Work on equipment under load

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Fatality GGV Mini Pit 8 February 2007

Horizontal brace bent upward

Main support structure bent

Main support structure bent

NOTE: This photo was discovered after the report done by the structural engineer

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Causes

Direct• Damaged/weakened structureUnderlying• Hazard awareness – not recognising potential• No protective barriers around legs of structure• Contractors safety system – poor• Contractor management• Incident reporting and investigation• Hand over between managers-protocol

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Common trends identified during investigations

• Current Contractor Management Process had flaws

• Formal risk assessments not adequate• Health and safety systems of contractors not

adequate• Risk awareness and perception of Contractor

employees not good• Contractors understanding of Xstrata’s

requirements not good• Ownership of mine supervisors not adequate –

additional burden to administer the Pack documentation

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Contractors Academy Established - December 2007

• An IT program was developed.• Change Management was conducted.• Required documents were reviewed.• The process was defined.• The Academy was staffed.• Pilot program initiated• Schedule of implementation compiled

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Process – Vendor Manager

Vendor process

Pre-qualification questionaire

Vendor application

Assessment and Vendor Approval (GM

to approve)

Enter into 2-3 year contract with Vendor

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Roles and responsibilities Vendor Manager

• Deal with Vendor application

• In conjunction with Academy assess Vendors

• Approve vendors for Xstrata

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Process – Mine Official

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Roles and responsibilities Mine Official/ Contractor owner

• Adhere to tender process• Provide a clear scope of work• Evaluate risk assessment with contractor manager• Provide Academy with a list of Contractor Employees,

equipment and vehicles to be used in case of existing contractors

• Provide Academy with an “Engagement File” of Contractor in the case of new contractors

• Manage contractor in terms of legal compliance as well as Xstrata requirements

• Evaluate and manage contractors “Working File” on a weekly basis

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Process – Academy

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Roles and responsibilities Academy

• Load HR data onto data base and keep employee files• Arrange and control equipment and vehicle inspections• Compile “Contractors Pack”• Assess risk assessments and evaluate adequacy of

Safety system• Assess Contractor Managers legal knowledge/Coach• Assist and compile with Contractors “Working File” –

safety work file• Assist mine supervisors/HOD’s with the management of

contractors• Audit implementation of Contractor Management

Procedure through out Xstrata Coal SA

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Clustering of Contractor

Maintenance & Repairs Electrical Work Construction / Civil

Cleaning/Painting Sandblasting

Security Conveyor Management

General labour Mining operations Sampling/Sanitation

Waste management Transporting Equipment Horticulture

Loading/Screening & Hauling

Reclaiming Transporting People

Other Rehab

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Training Matrix E LEC TR IC AL

U ND E RG RO U ND

P O LIC IE SG roup H SEC P olicyE nv ironm enta l Po licy

C om m unity Po licy

C O D E S O F PR A C TIC E - M andatoryM in im um S tandards of F itnessM edica l S urve illanceP revention and C om bating R ockfa lls / S lop eS tab ilityO ccupational H ea lth P rogram m e fo r N o iseO ccupational H ea lth P rogram m e on Persona l Exposure to A irborne Po llu tantsP revention of F lam m able G as / C oa l D ust Explos ions/Lam proom sTrackless M obile M achineryTherm al stress

C O D ES O F PR A C TIC E - R egulatoryP reventing Inundation o f W ater / G as - U nderground/In rushLockout / Energy Iso la tionB elt C onveyorsU G Substa tions

P R O CE DU R ES / STA N DA R D SEN G IN E E R IN G

Lockou t / Energy Iso la tion

Equi

pmen

t m

aint

enan

ce

D O C UM EN T

Elec

tric

al w

ork

Cab

le re

pairs

Mai

nten

ance

of

dust

scr

ubbe

rs

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Index Engagement File

VEHICLES 11

Contractor Mobile Equipment License Control sheet10

EQUIPMENT DETAIL9

LIST OF EMPLOYEES8

HIRA7

(Critical Task Inventory) (contractor supply)6

Baseline Risk Register5

Applicable Permits to perform High Risk work4

HAZARD IDENTIFICATION / EXPOSURE CHECKLIST3

SCOPE OF WORK (Contractor & Safety officer)2

COVERSHEET ENGAGEMENTBY OPERATION1N/ANOYESContractor Name

ENGAGEMENT FILE for CONTRACTOR INDEX

VEHICLES 11

Contractor Mobile Equipment License Control sheet10

EQUIPMENT DETAIL9

LIST OF EMPLOYEES8

HIRA7

(Critical Task Inventory) (contractor supply)6

Baseline Risk Register5

Applicable Permits to perform High Risk work4

HAZARD IDENTIFICATION / EXPOSURE CHECKLIST3

SCOPE OF WORK (Contractor & Safety officer)2

COVERSHEET ENGAGEMENTBY OPERATION1N/ANOYESContractor Name

ENGAGEMENT FILE for CONTRACTOR INDEX

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Contactor Pack Index

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Working File Index

Current Status

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Auditing and Ranking-Once implemented

NO Process Deviations Remedial Actions

Score

1 Site Orientation

2 Schedule of PTO’s

3 Proof of PTO’s

4 Schedule of Planned Inspections

5 Proof of Inspections

6 Risk Conversant training

7 Proof of safety Meetings

8 Copies of pre-use

9 HIRA

10 Hazardous Chemicals, List & Training

11 PPE Register

12 Tool Inspection’s

13 Logbooks

14 Mini RA

15 Emergency drills

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Benefits to Xstrata

• Accurate contractor data base• Accurate Employee detail• Improved Risk Management documentation• Improved understanding of HSEC requirements

by Contractor Managers – Coaching• Cluster specific training/induction• Reduction in the delays of engaging employees• Reduction in admin – one Pack for Xstrata with

Engagement and working files per operation• One common message from Xstrata