Mining and processing copper and minerals involves working with large, heavy equipment, explosives and hazardous chemicals – often underground and sometimes at extreme temperatures. Our employees also experience common workplace hazards from driving vehicles, working at heights and operating machinery.

We believe it is challenging but entirely possible to prevent accidents, as long as the right approach and management systems are in place and sufficient equipment and training provided. Our long-term ambition is to provide a safe workplace free from injuries and illness, though we acknowledge that this will require considerable management focus and investment.

Fatalities

We deeply regret that 15 employees lost their lives in 14 separate incidents at Group operations in 2009, a rate of 2.4 fatalities per 10,000 direct employees. Thirteen of these were in the Copper Division, one in the Power Division, and one in the Gold. Two contractors in our Power Division also sadly died. We will report contractor fatalities across the Group in the 2010 Annual Report.

Rock falls were the most common cause and led to eight deaths. See the case study below for examples of our efforts to reduce this kind of incident. Four fatalities involved moving machinery. There was a substantial reduction in falls from height, the primary cause of fatalities in 2008.

While every death is a tragic loss, there has been a 53% decrease in the number of fatalities since 2008. Our operations investigated every fatal incident and serious incident and reported their findings to the Group HSE Committee and, where appropriate, to the Fatal Accident and Serious Incident Review Panel. Our fatality and serious incident investigation reports comprise a full description of the incident including photographs and sketches, plus an analysis of the work area, procedures followed and protective equipment used. This information is used to identify the root cause of the incident and preventative measures for the future. The reports are sent to the divisional Chief Executives and HSE committee chairman within 48 hours of completing the investigation.

We attribute the reduction in fatalities to improved production controls, a greater emphasis on management responsibility and an increase in the number of site inspections. We carried out 2,759 site inspections in 2009 and stopped operations on 830 occasions as a result of the safety violations found. We carried out disciplinary proceedings with 1,975 employees in relation to these violations, and 49 employees lost their jobs. We recognise that serious injuries and fatalities can cause both emotional and financial difficulties to employees and their families, and we provide financial support to the families of the victims of fatal accidents.

Injuries

We record work-related accidents in line with Kazakhstan’s regulatory reporting requirements. We are in the process of introducing the industry standard lost-time injury frequency rate, and will report this figure when it is available. There may be an initial rise in the number accidents reported, primarily as a result of improved safety training and greater awareness of the need to report incidents.

MKM recorded an injury frequency rate of 15 per million hours worked in 2009, down from 34 in 2008.

Safety culture

A safety culture built on training and awareness is fundamental to reducing accidents. Our health and safety policies are available in English, Russian and Kazakh, and each employee receives a pocket guide explaining 16 mandatory safety rules. During 2009, 10,440 employees received safety training, including 8,795 manual workers and 1,645 engineers and technicians.

In 2009, we reported a goal of training all senior managers and engineers in the NEBOSH occupational safety and health certificate. We now plan, however, to introduce an internal certification based on the NEBOSH qualification. We have invited an external specialist to develop an internal, mining-specific certificate in 2010, and to train up to 20 of our managers, who will pass on their training to their colleagues.

In 2009, the Copper Division introduced a five-year health and safety management plan to re­­­­duce hazards, improve performance and further embed a safety culture. The first phase involves reviewing our approach, structure and management system to ensure we systematically identify, assess and control all risks. Once this is complete, operational sites will develop and implement their own management plans within six months, and these will be approved by the Group and Copper Division HSE departments.

These site-specific plans will detail activities and define timetables and responsibilities for completion, as well as the required budget and resources. The Copper Division operational HSE committee is in the process of identifying five priority projects for improving performance, and will report their progress at Group HSE Committee meetings during 2010.

Our Zhomart copper mine invested almost $3 million to improve safety in 2009. The mine purchased new underground vehicles and provided specialist training and certification for their operators, who then pass on their knowledge to apprentices working with them. The new vehicles are soundproof and air-conditioned, and are fitted with additional lighting and rear-view cameras to improve visibility. The mine also built an underground service station for the vehicles, which has automated many hazardous maintenance tasks to further improve safety.

Occupational health

Our aim is not only to prevent occupational ill health occurring, but to improve the health and wellbeing of employees, contractors, their families and communities. All employees receive medical examinations on recruitment and then on an annual basis, to prevent occupational diseases and detect and treat those that do occur at an early stage. We pay particular attention to employees whose work exposes them to health risks such as dust-induced lung disease and hand-arm vibration syndrome.

The Copper Division has an occupational disease rate of 4.3 cases per 1,000 employees, and recorded 182 new cases in 2009. The shaft-sinking department has the highest rate of occupational illness, with 14.6 cases per 1,000 employees. The professions most likely to experience occupational disease are tunnellers (23 cases per 1,000 employees), truck drivers (21 cases per 1,000 employees) and blasters (15 cases per 1,000 employees).

Most work-related illness in 2009 related to manual handling and spinal micro-trauma from riding in vehicles on uneven surfaces. We recorded 65 cases of chronic radiculopathy, a nerve problem that causes pain and numbness. Exposure to mine dust is the next most common cause of occupational disease, leading to 55 cases of silicosis and chronic bronchitis in 2009. We will be upgrading respirators across our facilities in 2010, to reduce the occurrence of respiratory disease.

In 2009, the Copper Division developed a three-year health protection programme to ensure all facilities meet the requirements of our health and safety policies. We are recruiting seven occupational health specialists across the Division to help prevent, diagnose and treat work-related illnesses. Future plans include establishing a dedicated medical committee and the introduction of a standardised employee health monitoring system. The programme will ensure all sites have sufficient first-aid training, underground ambulance transport for emergency medical aid, and modern equipment in their health units. We also plan to establish rehabilitation centres for employees with work-related injuries and occupational diseases.

2010 commitment

• Identify five priority projects within the Copper Division for improving safety performance.