Petra Diamonds Limited Sustainability Report 201219HEALTH AND SAFETYHealth and SafetyInstilling a safety cultureOur approach and key issuesThe health and safety of our employees is our top priority. Our approach to health and safety is centred upon a process of continuous risk assessment. We systematically review all operational tasks, identify and respond to associated risks and ensure our processes develop in line with the evolution of our operations with the aim of creating a zero harm environment.At an operational level, our Group Health and Safety Strategy is implemented through a hierarchy of policies and codes of practices, which are regularly reviewed. These include:$ Codes of Practices, some of which are mandatory and some voluntary;$ policies;$ procedures;$ working practices;$ visual control standards;$ risk assessments;$ planned task observations;$ special instructions;$ permits and licences; and$ SHE registers and a reporting structure.In order for us to drive continuous improvement of our health and safety performance we undertake regular internal and external audits to ensure we meet developing best practice standards and comply with international standards such as OHSAS 18001, as well as relevant local laws and regulations. In addition, regular audits enable us to identify best practice at individual mines which can be rolled out across the rest of the Group.Our Finsch and Cullinan mines have OHSAS 18001 certification, an international occupational health and safety management system specification, and we expect to implement this standard across the other underground pipe mines in due course.We continuously communicate and engage with employees on health and safety issues in order to get their input and ensure they are aware of developments. We also provide appropriate health and safety training to all of our employees. All mines have formal arrangements in place to help monitor and advise on occupational health and safety programmes.We recognise that our health and safety policies have to tackle issues which impact local communities and cannot be restricted to operational issues. Local community health issues such as HIV/AIDS, tuberculosis and malaria all impact the health of our workforce and we have therefore established programmes to both raise awareness of these threats and their possible prevention, as well as offering programmes at certain operations to treat them.SafetyWe target zero fatalities and aim to achieve a 20% improvement in our LTIFR year on year. In pursuit of this target, we have adopted Mining Industry Occupational Health and Safety ("MOSH"), an initiative by the South African Chamber of Mines to improve health and safety standards across the industry through the identification, promotion and application of best practice. Through MOSH, Petra has implemented initiatives to fit proximity devices sensors ("PDS") on vehicles (refer to case study on page 22), significantly improve noise and dust suppression and decrease fall of ground ("FOG") incidents.We measure our safety performance on a range of metrics including LTIFR, FIFR, Total Injury Frequency Rate ("TIFR"), and shifts lost as a result of injuries and fatalities. During FY 2012, we very regrettably recorded one fatality at our Kimberley Underground operation in South Africa following an accident in the underground engineering mechanical workshop at the Bultfontein mine whilst an LHD was being serviced. We express our sincere condolences to the family and friends of the deceased.Various corrective measures such as revision of the Trackless Mobile Machinery Code of Practice, load tests being done on all support units and the retraining of employees on risk assessments were put in place to prevent a reoccurrence. We achieved a LTIFR for the Year of 1.13 per 200,000 hours worked, in comparison to a LTIFR of 0.80 in FY 2011. Despite this, our performance in relation to comparable underground mining operations in South Africa is good. Going into FY 2013, we are working hard to improve on this performance. Health and SafetyThe health and safety of our employees is our top priority. Our approach to health and safety is centred upon a process of continuous risk assessment.SUMMARY$ We undertake regular internal and external audits to ensure we meet developing best practice standards and comply with international standards$ We continuously communicate and engage with employees on health and safety issues$ We recognise that our health and safety policies have to tackle issues which impact local communities and cannot be restricted to operational issues$ We focus safety programmes on reinforcing correct, while correcting errant, behaviour
Petra Diamonds Limited Sustainability Report 201220HEALTH AND SAFETYHealth and SafetyInstilling a safety culture continuedSafety continuedAlthough the majority of our recorded LTIs are of a low level of severity, we remain focused on improving our performance further. We take a range of steps to mitigate high risk issues, including: $ encouraging reporting of incidents and near misses;$ reviewing and updating policies, codes of practices and methods for risk assessments;$ the standardisation of documentation;$ initiatives to address employee behaviour as well as our health and safety culture, such as training and competitions;$ improved control of contractors; and$ increased safety inspections. Dealing with the human factorFollowing careful analysis of historic LTIs we have concluded that the primary cause of most accidents recorded at our operations is human error rather than intrinsically unsafe conditions. Behaviour we have identified that leads to injuries includes complacency, failure to follow procedures, wearing incorrect Personal Protective Equipment ("PPE"), incorrect use of equipment, failure to recognise hazards, 'poor housekeeping' and inadequate warning, amongst others. We believe that health and safety-consciousness is a way of life that needs to extend to outside the workplace.We therefore focus safety programmes on reinforcing correct, while correcting errant, behaviour. This is mostly achieved via special safety initiatives, competitions and awareness campaigns (especially over holiday periods) that all form part of the integrated health and safety programmes at operations. We supplement this with strict disciplinary measures for staff who do not adhere to procedures, ranging from mandatory retraining to, in extreme cases, dismissal.Petra's safety philosophyDespite this focus on behaviour, it remains vital to Petra to ensure that the physical conditions in which our employees work are as safe as possible. We follow a safety philosophy that recognises that if the energies at play (i.e. electrical, gravitational, kinetic, etc.) are removed, the likelihood of an accident occurring decreases dramatically. The following generic risks have been identified for special attention:$ Vehicles - Trackless Mobile Machinery ("TMMs") including light vehicles, and underground Railbound Machinery: At South African mines, it is mandatory to have Codes of Practice in place for TMMs and Railbound Machinery, due to the high incidence of accidents and injuries involving these vehicles in the mining industry. We go beyond the legal requirements and take great care to limit the risk involved with the use of vehicles by closely regulating how they come into contact with other vehicles and pedestrians.$ Guarding of machinery: Preventing access to the moving parts of machinery and the prevention of 'nip points' by the installation of proper guards on all machinery remains an important consideration in the avoidance of accidents. It is therefore also regarded to be one of the '10 Deadly Sins' (which carry heavy disciplinary sanction) to operate any machine without proper guards in place.$ De-energise and isolation/lockout: Working on machinery which is not correctly isolated or fully locked out has the potential to cause serious injuries or death. We have therefore implemented stringent lock-out procedures which are considered fail-safe if applied correctly. No work is to be performed until the energies involved (electrical, gravitational, kinetic, etc.) have been removed or locked out as far as is possible, and normal operations do not proceed until the area has been declared safe and the lock-out removed or the system has been re-energised.$ Lifting operations: Lifting operations are one of the daily activities at Petra's mines with the greatest potential for causing injury. Not only do gravitational forces present hazards of injury through falling objects and physical strains, but there is also potential for nip points developing as well as significant damage to facilities and equipment. For this reason, thorough risk assessments are performed on all lifting operations and procedures put in place to minimise the risks involved with lifting.$ Working at heights: When employees need to perform any tasks at height, the risk of injury increases. Although there are mandatory standards for any work at heights, great care is taken to optimise the conditions and procedures followed when such work is performed.All Petra's mines have well-equipped and trained emergency response teams to deal with major incidents such as fire, flooding and FOG. However, our philosophy is that 'prevention is better than cure', and all necessary systems and procedures are in place to minimise the likelihood of such emergencies occurring.Safety performance in FY 2012¹:OperationLTIFRFIFRTIFRShifts lost as a result of injuries and fatalitiesMilestones inFY 2012Cullinan0.280.003.02206Finsch 0.580.001.951341 million FFSKoffiefontein1.790.002.24 327Kimberley Underground22.214.171.124449Helam0.850.0013.261127,000 FFPSSedibeng4.820.0013.759478,000 FFPSStar5.720.005.72846,000 FFPSWilliamson0.000.3520.35 17Three years without an LTI to March 2012Group 1.130.035.932,276Notes:1. The safety statistics above include all permanent employee and contractor incidents.2. In FY 2012, a traffic accident occurred within the Williamson mine lease perimeter, involving two contractors from Zenith Security Services; one of the two was seriously injured and the other very sadly passed away. The accident was reported to the local authorities. Whilst the accident is considered to be the responsibility of the direct employer (i.e. the contractor) according to local law, the Williamson mine carried out its own investigation into the matter.