Business Profile ~ President's Message ~ Measuring Performance

Business Profile


Kennecott Minerals Company is committed to ensuring that the following key principles outlined in its Health, Safety and Environment, and Community Policies are carried out by all employees and contractors working for the Company

  • Provide a healthy and safe workplace.
  • Protect the environment.
  • Comply with standards and procedures.
  • Evaluate risks and apply best practices.
  • Prepare and respond effectively to emergencies.
  • Implement sustainable development principles into operations and closure.
  • Seek continuous improvement and openly communicate successes and shortcomings.
  • Establish long-term commitments, being active partners
    and operating with mutual respect with local communities.

Kennecott Minerals Company's Health, Safety and Environment and Community Policies can be found at the end of this report on pages 40 and 41, respectively.

About this Report

This is the fifth year Kennecott Minerals Company has produced a public report reviewing its activities and discussing health, safety, environmental performance and interactive relationships with local communities. For additional information on Kennecott Minerals Company's operations and activities, please go to: www.kennecottminerals.com.

Business Profile

Kennecott Minerals Company is dedicated to integrating health, safety, environmental and community planning aspects into everyday business activities at its operating and reclamation properties:


ONGOING OPERATIONS

  • Cortez Gold Mines, Nevada
  • Denton-Rawhide Mine, Nevada
  • Greens Creek Mine, Alaska


KMC OWNERSHIP

  • 40% - Placer Dome Managed
  • 51% - KMC Managed
  • 70.3% - KMC Managed

KMC RECLAMATION PROPERTIES AND STATUS
  • Ridgeway, South Carolina - Ongoing
  • Babbitt, Minnesota - Monitoring
  • Flambeau, Wisconsin - Monitoring
  • Kennicott, Alaska - Completed
  • Nevada Copper, Nevada - Completed

Each KMC-managed property is held accountable to high standards and is expected to improve performance by regularly setting targets and reporting publicly on achievements to drive continual improvement.


President's Message


During the year 2000, Kennecott Minerals Company achieved a number of important performance goals; however, it fell short in a few significant areas, including safety. KMC expects to be held accountable in all areas of health, safety, environment and building lasting relationships with its neighbors. The Company is implementing a focused effort to improve safety performance and continues to implement new and improved programs to bring about success in all areas. As you review this report, please direct your attention to the KMC objectives - what we said we would do - and the reported accomplishments - what we did do - and provide any comments you may have by direct email to: litvind@kennecott.com or call (801) 238-2493.

Over the next few years, the challenges facing each KMC operation will vary. However, KMC's core objectives pertaining to health, safety, environmental protection and building long-lasting relationships with each local community will remain resolute. Every KMC employee and contractor is being called upon to improve performance and achieve stated objectives.

Bill Orchow
President and CEO
Kennecott Minerals Company

 

Measuring Performance


Health and Safety

For KMC-managed operations, the overall injury-incidence rate (i.e., number of injuries per 200,000 hours worked) for lost time and medical treatment cases during 2000 was 3.31 compared to 1.73 in 1999. This compares with an injury-incidence rate of 4.47 for the U.S. minerals industry as a whole. KMC's safety performance for year 2000 was unacceptable.

Safety focus meetings have been held with all KMC managers and supervisors to review root causes and contributing factors to injuries. During 2000, KMC sponsored Safety Management Audit and Incident Investigation Training for managers and supervisors to heighten skills in recognizing and preventing unsafe behaviors and conditions.

All KMC operations have formalized and approved Safety Management Action Plans and Occupational Health Strategies that form the foundation for continuous improvement.

In support of two new Mine Safety and Health Administration regulatory initiatives covering hearing conservation and limits on diesel particulate matter

Kennecott Minerals Company's 1999 and 2000 safety performance for employees and contractors.

Please CLICK HERE for a larger version of this graph

 

 

exposure in underground mines, improvements have been made to existing work exposure control programs. However, current technology in existing underground mines cannot meet the new diesel particulate matter regulatory requirements. KMC is currently working with the National Institute of Occupational Health on determining if diesel particulates can be accurately measured in the underground mine environment. KMC is challenging in a judicial setting the scientific justification and technical feasibility of MSHA's new diesel particulate matter standard.

During 2000, KMC operations received a total of 47 MSHA citations with assessed penalties totaling $3,755.00, all of which were terminated.

KMC made considerable progress towards the goal to eliminate all "High Priority" (significant) health, safety and environmental issues identified by KMC's ongoing audit program, although there still remains five out of 24 issues to be addressed.

The KMC employee communication "Hotline" received only a few safety-related reports early in the year that were thoroughly investigated and resulted in no further follow-up action required or changes in procedures or standards. KMC is making changes to this employee outreach program by conforming to the newly implemented "Speak Out" program administered by its parent company,
Rio Tinto.

During 2000, KMC operations received a number of external awards for safety excellence, yet it was decided not to present the internal KMC President's Health, Safety and Environment award due to the need for each operation to demonstrate greater improvements in the safety and environmental areas.

Environment

KMC fell short on obtaining its 2000 environmental goals and targets, specifically those related to preventing all spills to the environment. Despite the spill prevention measures employed at the KMC sites, there were three petroleum spills (hydraulic fluids) between 50 and 80 gallons each associated with mobile equipment. All other spills were of minor quantities, immediately cleaned up and properly disposed.

Implementation of a combined Health, Safety and Environmental Management System, consistent with the ISO 14001 EMS standard, progressed sufficiently to be over 50% complete during 2000. KMC completed the goal to update and finalize Closure Plans for all operations.

A Risk Review was conducted at the KMC operations that use cyanide in their process systems and identified no significant issues with cyanide transportation, storage and use. KMC is supporting the development of a voluntary industry code for gold mines using cyanide. This cyanide management code is being developed by the mining division of the United Nations Environmental Program along with the International Council on Metals and the Environment.

KMC supported research and development of the design, construction and monitoring of covers for isolating potential acid-generating materials (tailings and waste rock), along with a collaborative project with the International Network for Acid Prevention on mitigation of a waste rock storage area.

KMC's corporate Manager of Health, Safety and Environment received the Adrian Smith International Environmental Mining Award for "providing many important contributions to the fields of environmental engineering, management systems, auditing, regulations and education."

Communities

During 2000, KMC recognized that it must take a more proactive approach in initiating communications with the communities, especially concerning mine closure activities. KMC updated the Five-Year Communities Plans for each operation to reflect appropriate interactions with its neighbors.

In ongoing support of the public's right to know about the management and use of chemical sub-
stances, KMC updated the Company's web site (www.kennecottminerals.com) on reported releases to the air, water and land under the Toxic Release Inventory reporting requirements for metal mines. There was an approximate 2.5% increase in the amount of KMC company-wide reported releases under TRI in 2000, as compared to those reported in 1999, principally due to increased production at the Greens Creek Mine.

Accountability

In an effort to continuously improve health, safety and environmental performance, each year KMC establishes goals and targets. In the health, safety and environment areas, KMC has directed its efforts toward achieving zero injuries and incidents. To achieve these goals, KMC establishes annual targets that are realistic and achievable, reflecting on the previous year's performance.

The following summarizes KMC's progress towards meeting its health, safety and environmental goals and targets set for the year 2000:

Health and Safety

2000 Goals & Targets Achievement

Zero Occupational Health Incidents

Not Achieved
1 Noise Reduced Hearing Loss


Zero Accidents
Reduce Injuries by 50%
Not Achieved
77% Increase in Total Injuries Over 1999 Levels



Environmental

2000 Goals & Targets

Achievement

Zero Non-compliance

Reduce Incidents by 20%

Not Achieved
87% Increase, i.e., MSHA Citations


Zero Spills
Reduce Spills by 50%
Not Achieved
14% Reduction in the Number of Spills

Establish Environmental Management System
Not Achieved
50% Complete Adding Health and Safety Components

Finalize Closure Plans
100% Complete

Update Five-Year
Communities Plans
100% Complete

Update Hearing Program
100% Complete

Publish KMC S&E Report
100% Complete


The following summarizes KMC's health, safety and environmental goals and targets set for the year 2001 with the intent to drive improvements over 2000 results while being consistent with achieving 1999 goals and targets:


2001 HSE and Community Goals

  • Zero Occupational Health Incidents
  • Zero Accidents
  • Zero Non-compliance Issues
  • Zero Spills
  • Implement HSE Management System
  • Update Five-Year Communities Plans
  • Publish Social and Environment Report

2001 HSE Targets

  • Reduce 2000 Injuries by 60% (i.e., 14)
  • Reduce 2000 Non-compliance Incidents
    by 43% (i.e., 32)
  • Reduce 2000 Spills by 42% (i.e., 13)

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