36 <strong>Arcelor</strong> <strong>Mittal</strong> <strong>Activity</strong> <strong>Report</strong> <strong>2006</strong>Health and Safety<strong>Arcelor</strong> <strong>Mittal</strong> sets Health and Safety above all priorities,and for the entire Group. A strong safety culture is instilledat every level and is supported by a robust set of safetystandards and a system of performance monitoring thataims to reduce accident levels year-on-year.
<strong>Arcelor</strong> <strong>Mittal</strong> <strong>Activity</strong> <strong>Report</strong> <strong>2006</strong> 37Ensuring health and safety of thehighest standard is a core componentof <strong>Arcelor</strong> <strong>Mittal</strong>’s business strategy.Every aspect of the product we createdepends on our employees ability to workin a safe environment. As such thiswas one of the first topics the GroupManagement Board turned its attentionto after its appointment. In a moveto clearly demonstrate the emphasisand commitment to this critical area,a decision was taken to hold a worldwidehealth and safety day mobilising eachof the company’s 320,000 employeesin March 2007. This day was also usedto launch the company’s new, improvedHealth and Safety policy aimedat reducing the rate and frequencyof accidents on a continuing basis.The Health and Safety department advisesand assists the Group ManagementBoard and the various business unitsin achieving a safe and healthy workplace.From the initial integration phase of themerger, a common Health and Safetymodel was implemented across the entireorganisation which permits the departmentto define and follow-up performancetargets and monitor results from everybusiness unit.An Integration Task Force for healthand safety, comprising managers fromboth predecessor companies, defineda common road map, strategy andorganisation for Health and Safety –drawing on the best systems and reportingstandards of the two companies.These were presented and discussedat a special Health and Safety conventionheld in Paris in January 2007 andattended by around 100 Health and Safetymanagers from the business units.A new methodology was developedfor defining safety targets. A particularfocus is given to Health and Safetyleadership and behaviour; implementationof a Health and Safety management systemwith systematic audits; a safety assessmentof all the risks inherent in the business;and sharing of best practice andinformation systems.An injury tracking and reportingdatabase is being put in place to trackall information on injuries, lost mandays and other significant events.It incorporates a return-of-experiencesystem for disseminating lessons learnedfrom individual incidents so that otherbusiness units can learn from them.The aim is to achieve faster andmore accurate feedback on the causeof accidents in order to improveprevention and prevent recurrence.The Group’s determination to achievea material reduction in accident ratesis demonstrated in the new Group Healthand Safety policy, which is publicly postedin offices and plants across the company.The policy outlines the commitment <strong>Arcelor</strong><strong>Mittal</strong> has made to the Health and Safetyof all employees, both on and off the job,in order to become the safest steelcompany in the world. To that end,a set of principles has been defined anda policy laid down with the clear objectiveof working vigorously towards a goal of zeroaccidents and injuries. The company willcontinue to work not only to meet, but tosurpass, local regulatory requirements.The Health and Safety department willfocus on new leading indicators to developa preventative strategy on accidentsand illnesses. The success of this policyrequires the involvement and commitmentof everyone working for and with<strong>Arcelor</strong> <strong>Mittal</strong>.Performance in <strong>2006</strong>Both <strong>Arcelor</strong> and <strong>Mittal</strong> Steel achieveda further reduction in the frequency rateof accidents in <strong>2006</strong>, but there wasno comparable fall in the rate of highimpact occurrences. To tackle thispersistent problem, business unit plansfor 2007 focus on reducing accidentsin three priority areas: those occasionedthrough falls, crushes or in the courseof new construction work.In addition, a set of new standardswas adopted to tighten the conditionsrelating to a number of problem areas– such as working at heights or withina confined space. All contractors engagedon major projects will be subject toaccident-prevention measures that includerisk assessments and regular safetyreviews. Compliance with standards willbe monitored on a constant basis.Lenina coal mineIt is distressing to report that,on 20 September <strong>2006</strong>, a methaneexplosion occurred in the Lenina mineat the Group’s Kazakhstan CoalDivision. Some 41 miners lost their livesin this tragic event.Immediate action taken includedboth financial and moral support forthe families of the victims. In addition,risk assessments at each mine werereviewed and all controls were checkedbefore recommencing operations.The company launched a fullinvestigation to establish the root causesof the explosion. There was also aGovernment inquiry.Both investigations establishedbehaviour as the major issue. Followingthe conclusion of the investigations,the company took a number of actions.First, it decided to invest heavily inthese mining operations to improve bothsafety and productivity simultaneously.Safety-related capital investment includesthe upgrading of methane degassing andmine ventilation systems, the installationof electrical and telemetry (gas detection)systems. The programme will cost aroundUS$100 million over four years.In addition to the investmentprogramme, renewed emphasis hasbeen placed on improved safety leadership(not only in Kazakhstan but throughoutthe Group). Senior managementfrom Kazakhstan has made a seriesof visits to world-class undergroundcoal mining operations in the USA.The team has been able to viewfirst-hand the safety programmes,training, major hazard control techniquesand equipment used in these mines.There has also been a major reviewof the safety culture in the mines.This has resulted in an upgradingof training for various roles as well asa specific programme on safety leadershipfor all managers.Finally, there has been a renewedeffort on communication and awareness,supported by the Health and SafetyDay initiative, through upgrading safetycommittees and community programmes –including those involving unionsand schools.Health and Safety DayIn order to raise awareness of healthand safety issues, the Group helda company-wide Health and Safety Dayon 6 March 2007 involving all 320,000employees and 140,000 contractors.The timing was chosen to coincidewith the launch of the new Group Healthand Safety Policy. Organised with thehelp of the employees’ representatives,the Health and Safety Day is set tobecome an annual event.The purpose of the event was tomobilise the Group’s entire workforce –including subcontractors – to improverisk awareness, identify best practiceand promote knowledge sharing inthe Health and Safety area.At all sites, a corporate campaignvideo was played, together with a seriesof short films. They included a personalmessage from President and CEOLakshmi <strong>Mittal</strong>, subtitled into 13 languages,stressing the critical role Health andSafety plays within the Group. He andother members of the Group ManagementBoard, together with members of theManagement Committee, spent the dayvisiting as many <strong>Arcelor</strong> <strong>Mittal</strong> plantsas possible to communicate the messagein person and to take part in discussionsaimed at further improving Health andSafety performance.A variety of other activities took place,varying from site to site. There wereinteractive stands on topics suchas hearing protection, the loadingof trucks, working at heights, ergonomicsand relaxation. Many sites featuredfirst aid training, games and contestsfor local children, or talks on nutritionor fire prevention. In some case,plants invited local politicians and themedia to take part.
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