MONGOLIAN MINING COMPANY

THE ROAD TO ZERO HARM
OYU TOLGOI LLC-SAFETY STRATEGY

Mahoney D’Alterio

Principal Advisor

MONGOLIAN MINING COMPANY

ABOUT OYU TOLGOI LLC
One of the world’s largest undeveloped copper and gold deposit, located in the South Gobi region Proven resources for 27 years of production, and identified resources that could extend mine life to 59 years Features high-quality deposits that can be produced at low costs and make Mongolia competitive in the world market. Construction is 70 per cent complete, with first production planned for 2013.

Ulaanbaatar

600 km
Oyu Tolgoi

MONGOLIAN MINING COMPANY

THE IMPACT OF OYU TOLGOI LLC
Oyu Tolgoi is the largest single economic stimulus in the history of Mongolia. By the time the mine is brought into production, investors will have contributed US$6 billion. 30% of government revenue will come from Oyu Tolgoi, peaking at $1 billion. Mongolia’s economy will grow by an additional 35% by 2020. The value of Mongolian exports will double. The operation will employee 15,000 people, 90 percent of them from Mongolia Wages will increase 30%. For every Oyu Tolgoi job, 4 additional jobs will be created. The project includes development of an airport, new and improved roads, a power plant and transmission lines, and a US$2 million sports complex.

MONGOLIAN MINING COMPANY

HEALTH, SAFETY AND ENVIRONMENT STRATEGY
Leadership Manage key risks and opportunities Processes and tools Organisation Learning and training Regulatory

MONGOLIAN MINING COMPANY

OYU TOLGOI’S HSE VISION, OBJECTIVES AND VALUES
OUR VISION:

Oyu Tolgoi is committed to zero harm to all its stakeholders
OUR OBJECTIVES: Zero fatalities and continuous improvement in all our HSE performance indicators OUR VALUES: Active, felt and visible leadership All work planned and all work executed according to the plan Our health, safety and environment systems produce leading edge outcomes

Caring for our employees, our neighbours and our environment

MONGOLIAN MINING COMPANY

SUCCESS DEPENDS ON ACTIVE, HEART FELT AND VISIBLE LEADERSHIP
LEADERSHIP COMMITMENT IS CRITICAL TO OUR SUCCESS AND IS SEEN THROUGH OUR LEADERS Living the culture Driving behaviours that are aligned to our values Making the right decisions Actively encouraging broad participation in every aspect of safety management WE ARE ACHIEVING THIS THROUGH Visible HSE ideals and icons Safety leadership training programmes Actively involving our people in identifying risks and implementing controls Strategy focuses on risk management and is supported by programs. Shared accountability for safety and risk management

MONGOLIAN MINING COMPANY

MANAGE KEY RISKS AND OPPORTUNITIES
KNOWING OUR KEY RISKS AND OPPORTUNITIES IS CRITICAL TO US ACHIEVING OUR VISION AND OBJECTIVES Understand work area hazards/ impacts and manage the material risks Incorporate process safety assessments in all new areas of plant Increase reporting of significant potential incidents Complete Health baseline assessments for all OT LLC employees and contractors WE ARE ACHIEVING THIS THROUGH Designing and implementing systems – examples, risk management, health monitoring, hazard awareness Implementing and embedding our Health, Safety and Environment operational standards to manage these – examples, isolation, working at heights, confined spaces, vehicles Involving our employees in safety management examples communication and consultation Promoting hazard awareness so employees see and manage the risks in the workplace Induction and training processes

MONGOLIAN MINING COMPANY

PROCESSES AND TOOLS
17

1
Management review

2
Policy Legal and other requirements

Hazard identification and risk management

3

4 5

WORLD CLASS AND CONSISTENTLY IMPLEMENTED PROCESSES AND TOOLS ARE CRITICAL TO US ACHIEVING OUR VISION AND OBJECTIVES OUR INTEGRATED HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM AND OPERATIONAL STANDARDS PROVIDES THIS FRAMEWORK AND FOUNDATION CORE ELEMENTS INCLUDE Our Policy – example, Life Saving Rules Hazard identification and risk assessment – examples, TRACK Communication and consultation – example, Pre-Start Safety meetings, Safety Share Measuring and monitoring – example, health monitoring and wellness programmes Business resilience and recovery – example, Emergency response plan Incident reporting and investigation and Action management

16

Performance assessment and auditing

HSEQ management improvement planning

15

Data and records management

Non conformance, incident and action management

14
Measuring and monitoring

Leadership commitment & resources

Organisational resources, accountabilities and responsibilities

6
Training, competency and awareness Supplier and contractor management Documentation and document control

7

13

Business resilience and recovery

12

Management of chage

11

Operation control

Communication and consultation

8

10

9

HSE Operational standards – example, training, procedures, permit to work

MONGOLIAN MINING COMPANY

SAFETY PROCESSES AND TOOLS

MONGOLIAN MINING COMPANY

ORGANISATION, LEARNING AND TRAINING AND REGULATORY
ORGANISATION Have one HSE organisation to support the whole of OT Demonstrate alignment to Rio Tinto HSE standards Ensure all activities and personnel follow OT HSE framework Create an outcome focused HSE organisation Ensure all areas have Team HSE plans and objectives derived from this strategy Advance HSE talent management and organisational capacity development LEARNING AND TRAINING Ensure all personnel complete applicable HSE training prior to commencing work Ensure all roles are clearly defined and identify skills required to perform safely Develop our HSE professionals to achieve excellence REGULATORY Perform to world class Health safety and Environmental regulatory standards Work with government and industry groups

MONGOLIAN MINING COMPANY

SAFETY – STRIVING FOR ZERO HARM
Keeping the message fresh and awareness high Moving beyond conformance to accountability Developing strong culture and supporting systems Actively managing low-probability, high-consequence events Focusing on learning and training in classroom and on job Developing leaders who “walk the talk” Engaging our contractors into our culture

THANK YOU
Mahoney D’Alterio Principal Advisor

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