FATIGUE MANAGEMENT AT KUMBA ICMM FATIGUE MANAGEMENT WORKSHOP AUGUST 2011

FATIGUE MANAGEMENT AT KUMBA ICMM FATIGUE MANAGEMENT WORKSHOP AUGUST 2011

Presentation Overview About Kumba Iron Ore Problem Statement - High Potential Incidents Safety Health & Environment - Systems and Focal Areas Fatigue Management our 3 dimensional approach Shared Learnings from Kolomela Mine - Improved Living Conditions - Fatigue awareness and Bio-Rosters - Fatigue Prediction and Detection Prism & Astid Next Steps - Lifestyle Planners Conclusion 2

About Kumba Iron Ore Kumba s Vision Kumba is a leading value adding iron ore supplier to the global steel industry Strategic Intent Kumba is an African growth company that seeks to maximise total shareholder value sustainably through optimising the value of current operations and opportunities down the value chain, as well as executing growth projects with the potential of becoming a 70Mtpa South African and a 10Mtpa to 20Mtpa African iron ore supplier by 2020. Kumba executes its business in a way that cares for its people, communities and the environment in which it operates Operations Kumba currently consists of 3 mines (Sishen, Thabazimbi and Kolomela) These are serviced by one port operation in Saldanha Accolades from 2010 include: Top performing mining company of the year in the Deloitte Best Company To Work For Survey and ranked 6th overall. Runner up for the second year in the Sunday Times, Business Times Top 100 companies. A best performer in the 2010 JSE Social Responsibility Index Ranked fifth in the Ernest & Young Excellence in Sustainability Reporting Awards in 2010 3

KUMBA IRON ORE Problem Statement 4

Safety, Health & Environment Systems and Focus Areas Policy 1. Policy, Leadership & Commitment Fatal Risk Standards Safety Focus Areas 1. Principle Hazard Management & Fatality Prevention 2. Contractor Management 3. Leadership and engagement 4. Learning from Incidents & best practice adoption The Enablers Leadership at all levels Leading indicators Operating Discipline Zero harm as a value Planning 2. Risk & Change Management 3. Legal and other requirements 4. Targets, Objectives & Performance Management Implementation & Operation 5. Training, Awareness & Competence 6. Communication, Consultation & Involvement 7. Document & Data Control 8. Operational Control 9. Emergency Preparedness & Response 10. Contractor & Partner Management Checking & Corrective Action Management Review 11. Incident reporting & Investigation 12. Monitoring, Audits & Reviews Underpinned by three principles Safety Risk Management Programme (S.R.M.P.) Health Focus Areas 1. Fatigue Management 2. HIV/AIDS Management 3. Drugs & Alcohol 4. Health Risk Assessments Environment Focus Areas 1. Remediation and Pollution Prevention 2. Rehabilitation, Biodiversity and Land Management 3. Water 4. Energy and CO 2 5. Assurance 5

Health and Safety Strategy pursuing Zero Harm Fatality prevention and LTIFR reduction driven by key strategic drivers Principle Hazard Management & Fatality Prevention Focus on principle hazards Engineered solutions as a base Move to simple and standard procedures Train, coach and mentor 0.25 0.20 Significant reduction in LTIFR 0.22-77.00% Contractor Management Replication and enhancement of SSP Contractor Management system Standardised approach to common applications Operating discipline 0.15 0.10 0.05 0.00 0.12 0.12 0.07 0.05 2007 2008 2009 2010 2011 LTIFR 3 Principles: Key strategic drivers Learning from Incidents & Best Practice Adoption Leadership and Engagement Proactive use of leading indicators ICAM training and capability Learning from industry Effective corrective action close-out Behavioural interventions e.g. VFL Leadership and competence Empower management and workforce Address unacceptable risk tolerance Health & Occ. Hygiene Health Risk Management Fatigue Management HIV/AIDS Management Drugs and Alcohol Programme 6

Fatigue Management our 3 Dimensional Approach Work Environment, Lifestyle and Sleep Key principles applied; risk-based multi-disciplinary integrated & systematic holistic solutions 7

Shared Learnings from our Kolomela Mine Awareness and Education Induction e-learning and face-to-face training. Lark and owl study done on the operators of mobile equipment. Bio-rosters Unions and employees vote on a schedule designed to reduce fatigue Predictive Monitoring Technology Bio-rosters are designed to limit fatigue but when overtime is added to the schedule it is monitored by an electronic fatigue calculator that tracks real time fatigue data on each employee., i.e. the Predictive Risk Intelligent Safety Module (PRISM) Fatigue Detection Vehicles quipped with collision avoidance technology and ASTID (pilot underway). Nutritional Supplements Employees have access to caffeine, energy drinks, water or energy tablets during their shift that further the employees ability to combat fatigue. A baseline study on energy drinks was done to determine their effect on sugar levels..there is no silver bullet! 8

Lifestyle Improved Living Conditions Home Ownership and Hostel Conversion Kolomela Kolomela Project included construction of decent housing integrated into the town of Postmasburg - 712 houses at 3 locations At Sishen, existing traditional hostels converted into self catering family/single units Before After THABAZIMBI IRON ORE MINE

Bio-rosters Bio-rostering refers to the pre-emptive management of fatigue by taking individual schedules and rearranging days and times to make them safer e.g. in a typical DDNN schedule, employees come to work 5 days a month with 0 3 hours sleep. This is equal to a BAC of 0.07 0.08. When the pattern is changed to DDXXNNN, this takes high risk fatigue out of the schedule. Kolomela shift roster Weeks / Crews MON TUE WED THU FRI SAT SUN Hours worked 1 D D - - N N N 48 2 - TR (Mining) D D - - - 36 3 N N - - D D D 48 4 TR (Plant) - N N - - - 36 10

Predictive Risk Intelligent Safety Module Proactive and predictive fatigue management tool Monitors and identifies fatigue risk on an individual basis Assesses Fit for Duty at clock-in and predicts fatigue risk for the shift Scientifically validated Alertness Test for secondary affirmation of performance Provides for inclusion of off-the-job fatigue-related factors Provides feedback process to track fatigue mitigation actions

Fatigue Detection - ASTiD Kolomela are piloting the Advisory System for Tired Drivers (ASTiD). Astid analyses driver/vehicle interactions through steering corrections. It is built on sound scientific research into sleep and sleepiness by Loughborough Sleep Research Centre world renowned for its work into the effect of driver fatigue. 12

Next Steps - Lifestyle Event Notification System (LENS) LIFESTYLE EVENT NOTIFICATION SYSTEM (LENS) Considering USES PERSONAL the use of personal PLANNERS planners AND and communication COMMUNICATION devices to DEVICES warn and counteract TO fatigue PROVIDE NOTIFICATIONS THAT WARN OF OR COUNTERACT FATIGUE LENSmobil for Smartphones LENSpocket to Carry on Person LENSplanner for Home Use LENSsms for Basic

Conclusion A successful programme requires; Leadership commitment and resource allocation A risk-based approach Multi-disciplinary teams seeking integrated, holistic solutions Total involvement and engagement of all stakeholders (employees, unions, families, service providers and communities)..take control, take charge! Fatigue Sleep Wellness Diet Work 14

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