Primary drivers of increased budgets are operational excellence programs

Increase in technology spending to improve worker safety and operational performance

Employee training ranks consistently as top priority

A move towards using digital sensors, location tracking wearables, and mobile apps are expected to be widely used

MINING RISK BY THE NUMBERS

87%

GLOBAL ENVIRONMENT, HEALTH AND SAFETY BUDGETS MOVE TOWARDS TECHNOLOGY

Mining companies continue to operate in a context of uncertainty and complexity. This puts pressure on executives to ensure that the organisation is competitive and agile with strengthened risk governance in place to increase resiliency and protect shareholder value.

FATALITIES IN SOUTH AFRICA ACROSS DIFFERENT MINING COMMODITIES

Financial

69%

RegulatoryCompliance

REFERENCESMinerals Council of South Africa; DSS 2018 Report: Is your falling LTIFR a reliable safeguard against disaster?; DSS Report 2018: Global ORM Report; www.sustainablesolutions.dupont.com, ICMM safety data 2017; *Compound annual growth rate

The four priorities

leadership in mining can

implement to reduce risk Leverage technology to

de-risk mining operations and insights from data for

better decision-making

Ensure effective risk-based approach, with focus on fatal risks and large-scale incidents

Integrate risk into the operating rhythm across the organization

Strengthen leadership skills from top to front line

BOTTOM 3 TOPICS DISCUSSED IN BOARDROOM

TOP 3 TOPICS DISCUSSED IN BOARDROOM

COMBINE LAGGING WITH LEADING INDICATORS

Lost time Injury Frequency Rate (LTIFR).

Total Recordable Injury Frequency Rate (TRIFR).

High potential incidents.

Fatal Accident Rate (FAR).

Recurrence / Trends in High Potential Hazards

Critical Control Failure Rates

Asset / equipment reliability and availability

Compliance to key cutting parameters (e.g. cutting height, width, distance, sequence)

Lagging Indicators Leading Indicators

Executives are not placing sufficient emphasis on safety and operational risks that can lead to large-scale incidents.

78% of executives agree that low incident rates do not correlate with reduced risk.

Inadequate engagement and empowerment of front line organization

Little value placed on

asset reliability, supply chain integrity and

process safety.

Pitfalls of mining safety

2016 20182017 2019

PERCENTAGE OF FATALITIES BY COUNTRY IN 2017PERCENTAGE OF TOTAL HOURS WORKED BY COUNTRY IN 2017

60%

40%

29%28%

Organisation& Operations

Asset integrity/reliability

ContractorManagement

Politicalmatters

What makes South African mines more hazardous?

Deep Mines• Deep South African mines are prone to seismic events – making them some of the most dangerous in the world. Eight of the 10 deepest mines in the world are in South Africa.

• Increased depth, distance from the shaft and drill time at the workface account for greater health and safety challenges.

Labour intensive mining methods• South Africa has been mined commercially for over a century and many operators still rely on older, labor-intensive mining methods such as hand drilling.

Safety VS production profitability • Pressures to increase production and profitability can lead to inadequate supervision and attention to safety in South African mines.

2011 2012 2013 2014 2015 2016 2017 2018

123127

112

868484

SOUTH AFRICA PERU CHILE AUSTRALIA OTHERUSA

49%

24%39%

8%

5% 4% 4% 2-4%6%

15% 13%6%

93

7377

2010