Journey to Zero Fatalities

Rob Davies Society of Mining Professors 18 May 2008 Aachen, Germany

The Challenge Facing Rio Tinto

Effectively manage HSE risk as a core business process across In 2007
Diamonds 4 Product Groups Aluminium Zinc, silver and gold Gold Borates Copper / Gold / Silver / Molybdenum Talc Coal TiO2 / Iron Iron Ore

56,000 people and 38,000 contractors Multiple cultures

Talc

30 Coal Countries Talc

Nickel Copper

Talc

Aluminium

US$69.4 billion operating assets

TiO2

~58 Mining Operations

Iron ore Copper / Gold Copper Iron ore Copper Potash TiO2

31 Aluminium Smelting/Refining Operations

Diamonds

13 Major Projects

Uranium Copper

TiO2

Uranium Diamonds Salt Coal Iron ore Talc HIsmelt Copper/gold Aluminium

Bauxite Coal Alumina Aluminium Coal

Feasibility & development Existing operation

5 Exploration regions
2

Aluminium

RIO TINTO VISION Our vision for 2008 and beyond is that we are the undisputed sector leader in value creation

Together we will create an injury free workplace where everyone goes home safely each day.

Our approach to HSE

Our approach to HSE and our working framework are aligned with the One Rio Tinto vision, which includes HSE performance and reputational capture as key elements.

Our licence to operate and long-term success require that we conduct our activities and operations in a manner consistent with societies values and expectations.

HSE framework for improving performance and managing risk

Targets Indicators and metrics

Performance

Monitoring and Reporting Management Systems Leadership and Accountability Strategies and Standards Policies

Lassing
A company changing event

Lassing
A company changing event

Fatal and Significant Injury Events 1990 - 1997

Other
14%

Rock Falls
18%

Electrocution
5%

Crushing
8%

Slip, Trips and Falls

15%

Vehicles off Site

7%

14%

13%

Vehicles on Site
6%

Struck by Falling Object Aviation

8

Safety Standards - Auditing

General safety system Change management Contractor management Isolation (lockout) Electrical Safety Vehicle and Driving Safety Work at heights Confined Spaces Cranes and Lifting Aviation Safety Underground Safety Molten Materials
9

We are making progress toward an injury and illness free workplace. All injury frequency rate has declined 79% since 1998.
5

AIFR per 200,000 Hours Worked

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
AIFR per 200,000 Hours Worked

AIFR Target
10

x
x

The Journey towards Zero injuries

Safety Interactions

Safety Interactions

11

Number of Fatalities
K en ne co tt La nd Co m

Ri o Co lo ra do Po tas h gy g r olo ssi n hi hn Ro um in aR ef in er yP Li RT t Te c ec oj RT Co m alc o Al an Pr

K az ny

pa

Focussing on the Right thing?

LTIFR Rio Tinto Managed Businesses

ER A

Fatal LTIFR Target 2004

ro Ex ject pl K or en at ne io co Pi tt lba n U ra tah Iro Co n pp H er am Co er s le r RT p yI ro O n th M er ajo rP ro jec t D am Q pi IT er Sa lt LT Ri o D Ti nt Ar o Zi gy m le ba bw eL N or t d th pa rk es

12 Month Rolling LTIFR and RIFR per 200 000 Hours Worked
12

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Fatalities at Rio Tinto Managed Businesses 1990 06/2007

25

N u m b e r o f f a t a l I n ju rie s

20
9 7

15

10
2 4 2 9 6 3 3 7 6 1 5 3 4 6 2 11 4 4 5 3 1 3 6 3 3 1 0 3 0 2 1 1 4 0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Employees

Contractors

13

Key Safety Initiatives from 1999

Group Safety Standards Developed and Implemented 2000 Audit against Standards (2000 -date) Dupont reviews (1999, 2002 and 2004) Safety Leadership Panel (2003) Introduction of Cranes and Lifting Standard (2004) Introduction of Aviation Safety Guidelines (2004) Safety Culture Diagnostic Assessment (2006) Introduction of SQRA (2006) Application of SQRA as KPI (2008) Process Safety Reviews (2009)
14

Some hazards will be unique to the local environment

Risk Management 3 Levels

Pre-Task Hazard Assessment Qualitative Risk Assessment Quantitative Risk Assessment

1
Intuitive Intuitive

3
Deductive Deductive

Level

Key Process

Characteristics

1. Task Level

(Take 5)

Individual Assessment (Qualitative, go/no go)

2. Job Level 3, Major Hazard

Matrix Assessment SQRA

Group Assessment (Qualitative, Hi Medium Low)

Group Assessment (Quantitative, Numeric Risk Score)

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The Vision - Where we want to be by 2010

SUBJECTIVE
BELIEFS

OBJECTIVE
BEHAVIOUR
Leaders are champions for safety and are seen genuinely caring about the safety and well being of employees. Employees are engaged by safety initiatives. Employees take responsibility for themselves and others.

INDIVIDUAL

I am responsible for my own safety and I care about the safety of people I work with. Good safety is valued by the organisation and by each of our employees. All injuries are preventable.

CULTURE
We work together to do whatever it takes to prevent people being hurt. Employees are treated with dignity and respect. Their safety contributions and involvement is valued. There is an open and trusting reporting culture.

SYSTEMS
World-class systems and processes are in place and are effectively and fully utilised. Measures of safety performance are fairly applied to identify and reward safety performance. Genuine safety leadership is a prerequisite for promotion.

Together we will create an injury free workplace where everyone goes home safely each day.
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GROUP

Key points - Rio Tinto Safety Plan

Managing Risk
Implementing SQRA for all relevant processes. Identifying and controlling Process Safety Risk Implementation of the C7 Aviation Safety Standard Common incident investigation process to identify and learn and share lessons from root causes Embedding Rio Tintos safety standards (Vehicles and Driving/Aviation) Improving performance in Contractor Safety

Safety Leadership/Culture
Strengthening visible safety leadership and personal accountability Improving behavioural safety interactions Safety leadership (safety as a core value) Measurement and recognition of safety performance
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To Sum Up
Rio Tintos leadership is committed to strong HSE performance: This requires a strategic approach and an integrated response Trust and collaboration are essential The payback is real and tangible

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What is Safety Really About?