Minmetals Resources Limited 2011 Sustainability Report (PDF)

CASE STUDY: Unexploded Ordnance (UXO) clearance at SeponDuring the Vietnam War of the 1960s and 70s, muchof the US Air Force bombing of Laos was concentratedat the intersection of the Ho Chi Minh Trail inSavannakhet Province. This is where MMG’s Seponmine now operates. Consequently, Sepon runs acomprehensive unexploded ordnance (UXO)search and clearance process which precedesmining area expansion.The program employs 389 permanent staff, all but 11being local Lao nationals, including local village chiefsand deputy chiefs. The work is staged and involvesvegetation cutting and preparatory clearance, electronicsearch and detection, digging and removal, supervisionand office data processing and administration.The UXO clearance team currently searches approximately1,000 hectares per year, and clears approximately500 hectares per year. More than 80,000 unexplodedmunitions have been removed in the last 15 years.The UXO clearance process is in place primarily to allowmining operations to proceed, but there are somesecondary community benefits. Aside from direct localemployment, on-the-job-training transfers knowledgeabout UXO safety into the community. Also, surroundingland and access roads through the district cleared formine exploration or transport become safe for lateruse by the community. The UXO search and clearanceprocess also finds archaeological and cultural heritageitems, which are then logged as part of Sepon’s culturalheritage management program.Contractor selectionContractors make up a significant part of the workforceand are regarded as MMG’s responsibility on-site, henceselection of partners with a good safety culture, preparedto implement best-practice safety management, is animportant consideration in the selection process. Workingwith contractors to implement safety management is animportant element of our safety strategy.We monitor health and safety incidents relating tocontractors on our sites and contractor safety incidentsare recorded in our safety statistics. Contractor safetyat some sites, in particular Sepon, has arisen as an issue.We seek to include contractors in our safety cultureand influence them to implement safe procedures by:» Uniform implementation of health and safetyrequirements for all persons on our sites;» Enforcing safety inductions and personal protectiveequipment requirements for our people, contractorsand visitors to our sites;UXO clearance at Sepon.» Embedding health and safety requirements in ourcontract documents; and» Working with our contractors to develop their healthand safety understanding, processes and procedures.Sourcing skilled labour is a challenge for the miningindustry and contractors are just as challenged as miningcompanies to find the right people with the right skillset for the right job. This skills shortage has resulted ina reduction in the years of experience of trades people,which demands rigorous contractor management systems.MMG respects this challenge and will be reviewing itscontractor management system during 2012 to improvepre-selection criteria. Particular focus will be on theincreased management of supervision and training needsthat this less-experienced contractor workforce requires.SUSTAINING OUR ECONOMIC PERFORMANCE RESPECTING OUR ENVIRONMENT WORKING WITH OUR STAKEHOLDERS HEALTH AND SAFETY OUR PEOPLE33