Safety is our biggest challenge. We began a radical rethink of our approach to safety management in 2005.

This process saw some major improvements and achievements in 2006. Much effort has been focused on executive, management and supervisory safety training, communications with all our people, and on the implementation of a custom-designed peer review system to share learning and spread good practice. It is still too early to see the expected outcomes and, tragically, the Group recorded 44 deaths (29 employees and 15 contractors) in 37 incidents during 2006.

The Group experienced what can only be described as a very poor fourth quarter when 20 people died, reversing significant improvements in the early part of the year. We extend our sincere condolences to their families, friends and colleagues.

All incidents are investigated by the business unit concerned and the relevant authorities and are analysed to establish both cause and remedy.

During 2006, the safety principles were incorporated into a new framework for the management of safety in the Group, and we believe that we now have in place the key foundations for us to make a fundamental difference in the months and years ahead.

The safety framework includes a best practice set of Safety Management Standards – the Anglo Safety Way – a revised set of Safety Golden Rules and a much enhanced safety peer review programme, which engages both professionals and line managers in safety audits of other business units across the Group. Fifteen sites were reviewed during the year and the lessons learned will help us shape our plans for 2007 and beyond. The peer reviews challenge existing systems and operating practices and help us to improve identification of key risks. More than 50 people were trained as peer reviewers.

In 2006, in support of the new safety framework, we followed up the 2005 executive training and embarked on a major training programme for managers and supervisors. By year end 6,400 managers and supervisors had been trained, with many more scheduled for refresher training in 2007.

In parallel with this, a major communication campaign was launched in South Africa, using industrial theatre with popular television personalities in order to convey clear messages to the front-line workforce. This has been very well received and will continue as part of our drive for safer operations.

Performance

The LTIFR has shown an overall increase from 0.94 in 2005 to 1.16. This is almost entirely the result of the change in Anglo Platinum’s reporting of restricted work cases (see Report to Society 2005). The correct reporting has applied for the whole of 2006 and Anglo Platinum’s LTIFR is therefore higher at 2.52 (2.07 in 2005). For the rest of the Group, the LTIFR has shown a marginal year-on-year increase from 0.37 to 0.40.

For the core businesses of the Anglo American Group (see scope of this report), the LTIFR was 1.58 in 2006. This is the baseline that we have used for setting our stretch target of 0.94 for 2007 (a 40% improvement).

An analysis of fatal incidents shows that 52% of fatal incidents occurred on the surface and 48% were underground. The major causes were surface transportation (27%) and falls of ground (20%). Explosions, ore scraper winches and ore pass incidents each accounted for 9%. Unusually, lightning strikes killed three people and we have re-issued clear guidance on how this threat can be better managed.

A number of reviews were conducted at Mondi, Tarmac, Anglo Base Metals and at Ferrous Metals and Industries operations to ensure that the root causes of incidents had been identified and that responses were effective and lessons could be shared across the Group to ensure no repeats.

Following the spate of surface vehicle incidents, drivers will be retrained and more rigorous, comprehensive vehicle management plans implemented. Fit-for-purpose collision-avoidance technology will now be fitted to all mine vehicles, unless a thorough risk-assessment shows this to be inappropriate.

Six people died in two distressingly similar collisions between haulage trucks and passenger vehicles. One of these was at Glen Douglas, a mine now part of Exxaro. In each of three other incidents, two people died:

• A fall of ground at Tshikondeni (Exxaro)
• A steam explosion at Hippo Valley
• A lightning strike at Hippo Valley.

A total of $38,431 was paid in safety-related fines, of which $35,129 resulted from criminal cases.

CE safety awards

Despite the number of fatalities, many sites continue to report excellent safety figures. Twenty-four operations with more than 100 employees ended the year without lost-time injuries.

In 2006, 23 sites were nominated for the chief executive’s safety awards which recognise excellent and improved performance by large and small operations.

Winner of the award for the best large operation was Anglo Coal’s Goedehoop colliery in South Africa. Anglo Base Metals’ Las Tortolas concentrator at Los Bronces in Chile won the award for best small operation.

Awards for safety improvement were won by Anglo Industrial Minerals’ Tarmac South in the UK and Anglo Base Metals’ exploration project in Peru.

Continuous improvement

The Safety Golden Rules were reviewed, incorporating lessons learned from an analysis of previous fatal incidents. The latest version focuses on the life-saving decisions within the control of all employees and seeks to define these in simple, understandable terms. In 2007, we will be supplementing our Golden Rules with much more explicit and mandatory equipment, systems and performance requirements to address very specifically the circumstances in which most of our serious incidents occur.

Technical innovations

Anglo Platinum has committed to minimising the risks associated with the interface between man and machine through better technology, enhanced monitoring and enforcement, as well as through training and raising awareness.

The programme includes installing proximity devices to warn locomotive drivers of approaching vehicles. Guards in locomotives will be seated in well-constructed cars at each end of the train at all times, and will be able to use a sound signal to get the driver to stop. This programme will be completed in 2007 at a cost of R51 million ($7.5 million).

Lack of or inadequate visibility is a key cause of man and machine collisions and a new system is being piloted. Winch safety will be improved by the completion of a R150 million ($22 million) project enabling any individual to signal the operator to stop the winch.

Many other safety initiatives are being tested and implemented, each addressing one of the main causes of injury.

Lightweight superboot protects workers’ feet

A new lightweight safety boot to protect the feet of all its front-line employees has been developed by Tarmac.

Whether it’s tackling road surfaces or other potentially bruising encounters in the construction industry, Tarmac’s boot will keep accident rates down and workers on the job.

“The traditional option has been a heavyweight and uncomfortable safety boot. This is a lightweight alternative that is both comfortable and protective,” said Tarmac’s National Contracting sustainable development manager, Ken Bradley.

These boots incorporate the same material as flak jackets to protect the top of the feet from falling objects. They can withstand temperatures of up to 300ºC and have mid-sole protection to prevent penetration by nails and sharp objects. They also boast a quick-release system similar to that of a ski boot.

Enforcing contractor safety

Safety, health, environment and community (SHEC) were the key criteria when our Anglo Base Metals’ Exploration division replaced the drilling contractor for its project in Namibia.

Despite an induction, training and regular safety meetings, the previous contractor failed to improve its attitude on SHEC issues. When the rate of environmental and safety incidents remained unacceptable and a more serious incident seemed imminent, the contractor was replaced.

The recruitment process for a new drilling contractor included site visits to evaluate potential drillers and detailed SHEC expectations within the tender document, supported by a more binding contract.

Safety and environmental incidents have been reduced significantly since the new contractor began work and the operation runs much more reliably, with improved production and sample quality.