Safety & Productivity Sandvik & Narrow Reef mining

Bjőrn Gőhre

Assembly

Point

Emergency

Exit

Emergency

Number

Alarm

Safety first

Sandvik’s objective is zero

harm to our people, the

environment we work in, our

customers and our suppliers

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Environment, Health and Safety (EHS) starts here Our 44,000 employees speak many different languages and have varying

ethnic backgrounds. However, they all share a common platform in Sandvik’s

three core values:

OPEN MIND FAIR PLAY TEAM SPIRIT

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Sustainability is a key factor in Sandvik’s Mission

• We are to be the obvious first choice and

provide the best possible value for our

stakeholders:

• Customers

• Shareholders

• Employees

• At the same time, we are to act as a good

global corporate citizen, characterized by

sustainable leadership in all our actions

and business decisions.

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•Sandvik’s Vision is to be recognized by our key stakeholders as Number One in EHS performance

•To achieve this, Sandvik has to ensure that

•At our sites we minimize:

•Any potential environmental impact

•Any risks to the health, safety and well-being of our employees

•Our products, services and technical solutions:

•Provide a long service life and better resource utilization

•Have minimal environmental impact when used by a customer

•Minimize risks to health and safety

•Are fully recyclable

Sandvik’s EHS Vision For our customers and ourselves

•EHS is integrated into Sandvik’s business: • Continual improvement through “management by objectives”

and preventive actions

• Sustainable development of our operations

• Efficient use of energy and natural resources

• Recycling and recovery of materials, and preventing

pollution

• Providing healthy and safe working conditions

• Legal compliance and global Sandvik EHS standards

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Sandvik’s EHS Policy

INSERT IMAGE OF POLICY

Our commitments

Environment, Health and Safety Management System Sandvik Mining 24 EHS Standards

VALUES, VISION AND OBJECTIVES

POLICY PLANNING IMPLEMENTATION EVALUATION REVIEW

The 24 EHS Standards Specify Performance Requirements

1. Leadership

2. Culture

3. Planning

4. Hazard & Impact

Management

5. Legal Obligations

6. Communication & Involvement

7. Accountabilities

8. Recruitment & Induction

9. Fitness For Work

10. Rules & Procedures

11. Training & Competency

12. Contracts / Contractors

13. Facilities, Plant & Equipment

14. Hazardous & Dangerous Goods

15. Health & Occupational Hygiene

16. Workplace Inspections & PPE

17. Environmental Monitoring

18. Document & Record Management

19. Emergency Prep. & Response

20. Incident Reporting & Investigation

21. Injury & Illness Management

22. Performance Monitoring

23. Corrective Action

24. Management System Audit and Review

Each EHS Standard has a Risk Management structure

•

Identification •

Assessment

• Control

Sandvik

24 Standards

OHSAS 18001 &

ISO 14001

Legislation and other requirements

EHS Standards

Best Practice!

Establishing A Higher Order

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Global Safety Alerts Awareness and Communication

• Open Learning

• Awareness

• Prediction

• Prevention

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Our EHS focus

Note: all our data includes contract and temporary workers

• Through commitment and focus, our

frequency continues to improve!

• A Lost Time Injury (LTI) is one that results in one or

more days away from work.

• LTI Frequency Rate

• Number of Loss Time Accidents x 1,000,000

Number of hours worked (exposure)

Reducing Injuries

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Our EHS focus

• Sandvik has a focus on Leading indicators

• There is continued focus on learning from these incidents, and to improve the sharing of findings

throughout the company.

Proactive approach

G3G2G1 G4

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Initiating Planning Executing Closing

G0

1 2A 2B 3A 4A 4B 4C3B 4D

G5

Severity &

Likelihood

Prepare

Safety Plan

Identification of

Requirements

Information

for Use

Prepare

Safety file

Lifecycle Hazard

Identification

System & Sub-

system Analysis

Risk Reduction

Risk Control

Product

RequirementValidation

Integration ImplementDesign

Safety Verification and ValidationConcept Design

Technical Requirement

Product

Verification

Fully integrated in our Product Development Projects

Product EHS

Decisions

Project Management

Activity (Engineering)

Product EHS activity

Milestones Functional safety

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•A global industry free of fatalities,

injuries and occupational

illnesses associated with

operating and maintaining

exploration and mining equipment

•EDEEP

•www.emesrt.org

EMESRT – Earth Moving Equipment Safety Round Table

Customer Requirements

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• Fatalities - These have steadily declined and

improvements are now flattening out - for further

substantial change we need a new paradigm.

• Productivity – Was stable for a number of years

but has now started to fall. It is exacerbated by

the impact of HIV/AIDS, extended mine induction

programmes, statutory stoppages and increasing

temperature with increasing depth.

• The development of appropriate technology

which will promote safe, cost effective narrow

reef mining.

Pressure for Change

Narrow Reef Mining Annual fatality rates for South African mines

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

19841986

19881990

19921994

19961998

20002002

20042006

Year

Fata

lity

rate

/100

0 w

orke

rs

All Gold Coal Diamond Platinum

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“In our local and very expensive business

operating environment it is not sustainable for

wages to keep rising across the board. We

need to revolutionise and innovate labour

processes in the mining sector or we will end up

killing the goose that lays the golden eggs. We

need to impart greater skills to a smaller

workforce with better wages and an improved

working environment like in the US and

Australia.”

Michael Spicer, Vice President of Business Leadership

Narrow Reef Hard Rock Mining

Transformation

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• By the end of the last century 50% of chrome was mined by

Room & Pillar mining using hand held drilling and small LHDs.

• In 1999 the first DD210L face drill was employed at Millsell

Chrome Mine and demonstrated a production rate of >25 000

tonnes/month.

• By 2001 twenty drill were operating and at Xstrata Kroondal

Mine six face drills and fifteen 3t LHDs were operating at 70%

of the cost of conventionally mined chrome mines.

• Mechanised mines are now the lowest cost producers in

chrome and platinum

Narrow Reef Hard Rock Mining

Chrome & Platinum

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• The higher face advance with the drill rig required

a larger LHD to match the performance and this

was developed to fit the required Low Profile.

• Then the development of a Low Profile Bolter

followed in 2003 by the introduction of a fully

mechanised bolter that can install full column

resin grouted bolts.

Narrow Reef Hard Rock Mining

Chrome & Platinum

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• In 2000 there were approximately 4,5 million tonnes produced by

semi mechanised operations in South Africa.

• By 2010 this had increased to 35 million tonnes in Southern

Africa with 73 million tonnes from conventional mining.

• By 2020 taking into consideration the planned introduction of new

Low Profile Mechanised Mining operations this will increase to:

• 65 million tonnes R&P Mining – Southern Africa

• 10 million tonnes R&P Mining – Poland

• 15 million tonnes Hybrid Mining – South Africa

• 3 million tonnes Other Mechanised Mining – South Africa

• Options now in Latin America and Australia

Annual Production

LP Mining

0

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

70 000 000

80 000 000

90 000 000

100 000 000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Annual Tonnage per LP Mining Method

LP R&P Hybrid Other

Year LP Machines Skills

Operators Technicians Management

2010 1 500 3 750+ 2 550+ 375+

2015 2 000 5 000+ 3 400+ 840+

2020 2 325 5 800+ 3 950+ 1 000+

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Based on Operating Fleet in Southern Africa

Skills Requirements

• Sandvik developed the first drill simulators and were used for operator

training in 2002.

• Sandvik embarked on increased artisan training in 1999

• 2011 graduated 417 apprentices, including 41 females. There are

currently 150 apprentices in training. 82% retention

• Sandvik Academy offers staff and customers a product related

training path to develop to product specialists

• Management training has not been neglected. With the development

of a special middle management training programme by Trans4Mine

and the initiation of the Centre for Mechanised Mining at the

University of the Witwatersrand. The only tertiary establishment

offering an MSc in Mechanised Mining.

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Sandvik Activities

Skills Development

•Has the hard rock narrow reef mining industry learnt how to change substantially?

Yes, but it’s still a long way to go and we all have lots of work to do.

•The key requirements are partnerships & leaders

•Narrow flat dipping mining operations have been successfully mechanized - where should we now direct our attention?

• Reducing dilution

• Narrow reef, steeply dipping ore bodies typical of the gold and some of the platinum mines.

• Increased rates of tunnel development for all mining operations.

• Development of non-explosive mining.

•Do we have the skills?

• Yes, the partnership of equipment suppliers and companies engaged in mining can move mountains.

Conclusion

www.sandvik.com

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