UPDATE ON OUR SAFETY

JOURNEY Dave Morris – Global Head of Safety

SAFETY

• Our Performance

• Current Focus

– Operational Risk Management

– Learning from Incidents

– Engaged Leadership

• Feedback from the 2009 Summit

3

• Steady improvement in contractor safety performance.

• Four major projects in recent years.

OUR PERFORMANCE

29 26

13 11 9 13

7

15

14

15

9

6 4

2

2006 2007 2008 2009 2010 2011 2012

Anglo American managed operations Number of fatal injuries

Year to date contractor total fatal injuries due to all causes

Year to date employee total fatal injuries due to all causes

4

SOUTH AFRICAN BU PERFORMANCE

20 18

10 9 9 11

6

12

11

13

7

2

3

1

2006 2007 2008 2009 2010 2011 2012

Anglo American South African operations (Platinum, Thermal Coal & KIO)

Number of fatal injuries

Year to date contractor total fatal injuries due to all cause

Year to date employee total fatal injuries due to all causes

5

• A plateauing of LTIFR performance

• Materials handling is the predominant agency of injury – 50% of total

• Significant reduction in high energy agencies, FOG, falling objects

LOST TIME INJURIES

1.2

2

1.4

0

1.1

6

1.0

2

0.9

1

0.9

3

0.8

6 1

.01

0.8

2

0.8

6

0.4

1

0.3

0

0.2

8

0.3

0

1.1

6

1.1

5

1.0

4

0.7

6

0.6

4

0.6

4

0.6

3

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2006 2007 2008 2009 2010 2011 2012 YTD

Anglo American managed operations LTIFR

Year to date employee LTIFR Year to date contractor LTIFR Year to date total LTIFR

6

LOST TIME INJURIES – SOUTH AFRICAN BU’S

2.0

6

1.9

7

1.5

0

1.3

2

1.0

7

1.1

1

1.0

5

1.6

6

1.1

4

1.1

6

0.5

5

0.3

0

0.3

2

0.3

8

1.9

0

1.6

0

1.3

7

1.0

3

0.8

2

0.8

5

0.8

3

0.00

0.50

1.00

1.50

2.00

2.50

2006 2007 2008 2009 2010 2011 2012 YTD

Anglo American South African operations (Platinum, Thermal Coal & KIO)

LTIFR

Year to date employee LTIFR Year to date contractor LTIFR Year to date total LTIFR

• Careful analysis of data is needed

• High Potential Incidents to be the focus of improvement efforts

• Making use of leading indicators

7

CURRENT FOCUS

STRATEGY DELIVERED THROUGH RISK BASED APPROACH

RESILIENT

PROACTIVE

COMPLIANT

REACTIVE

BASIC

• Safety performance requires an integrated approach –

people and systems

• Anglo American safety journey model maps the road

ahead – 6 people and 17 system elements

• Three core programmes currently running

• Operational Risk Management Programme

• Learning From Incidents

• Leadership Engagement – VFL

• Supported by formal business unit safety

improvement plans

8

CURRENT FOCUS 1: OPERATIONAL RISK MANAGEMENT

PROGRAMME Managing Risk

• Systematic identification of hazards

• Understanding the unwanted events that

might materialise

• Implementation or improvement of

controls

• Monitoring of control effectiveness

• Regular reviews and updates

• Ownership by those best placed to

manage

• Understanding the business benefits that

accrue

9

CURRENT FOCUS 2: LEARNING FROM INCIDENTS Preventing Repeats

• Report and record

incidents accurately

• Investigate them

rigorously to identify the

weak or absent controls

• Improve control

effectiveness

• Share the new knowledge

with others

• Ensure improvements

remain viable

10

CURRENT FOCUS 3: ENGAGED LEADERSHIP Visible Felt Leadership

• Leadership is everything ... But it is also the hardest to get right – all the time,

every time

• Improved VFL approach – interaction versus intervention

• Demonstration of values through interactive behaviours

• Evolving to 360o approach – climate of open safety dialogues with effective

transfer of information

11

FEEDBACK FROM 2009 CONTRACTOR SUMMIT Five key areas

1. Tender and adjudication process Safety requirements not clear and criteria opaque. Price only really counts

More structured information in tender docs. Self assessment style questionnaire. Building longer term

relationships

2. Sharing best practice Insufficient sharing of best practice with contracting companies

Hosted supplier conferences to bring people together to share.. Supplier SSD awards initiated to

recognise performance. Topical SSD Conferences hosted – transport

3. Relationships and trust Second class citizens / master and slave / commercial bullying

Implemented a structured Supplier Relationship Management System which defines engagement

frame work and promotes the exchange of ideas.

4. Capacity building, training and cultural alignment Contractor safety competencies variable, training should be given

SRMP training included into induction for managers. Risk management key for good safety

performance

5. Standardisation Inconsistent practices across the Group as far as site requirements go

Developing standardised safety inductions, roll-out just commencing

12

SINGLE INDUCTION FOR CONTRACT EMPLOYEES

• Anglo American Passport

– KBC custodians of the data base

– Developed consultatively

– Inductions structured into Anglo American general induction + site specific induction

– Accredited for all Anglo American sites in SA

– One year validity

– Improved induction quality, more efficient time usage

– Anglo American Platinum

Commenced on 02 October at some sites; 334 inductions accredited in October

Progressive expansion of programme

– Thermal Coal

Constructing new induction centre – go live date mid 2013 (est)

– Kumba Iron Ore

Commencing Q1 2013

13

CONTRACTOR PASSPORT

• www.contractorpassport.co.za or sms 079 975 5499 or scan barcode

14

WRAP UP MESSAGE

• We have made good progress and there is still

more to do.

• We acknowledge the contribution made by

contractor partners in our performance

improvement

• We encourage sharing and the exchange of tools

and ideas

• We know where we are going - together

• Use the safety successes to leverage a wider

ambition

• There is currently a window of opportunity to

make a meaningful change

THANK YOU