Kennecott Minerals Company Health, Safety & Environment Policy

Kennecott Minerals is committed to ensure that subsidiaries and development projects provide a healthy and safe work environment for employees and will strive to maintain effective operational controls and management systems to protect the environment. Kennecott Minerals will establish and implement effective programs, inform employees, and then hold them responsible for conducting activities that comply with this policy and the applicable legal requirements. Kennecott Minerals management will apply the best available practices appropriate to the situation to ensure protection of employees and the environment.

Therefore, Kennecott Minerals subsidiaries and development projects will:

• Continue to provide leadership, resources, and programs necessary to comply with applicable health, safety, and environmental laws, regulations, and prescribed standards, and require contractors to do the same.
• Include health, safety, and environmental matters as a basic part of short- and long-range planning for exploration, development, operational, and closure activities consistent with the principles of sustainable development such that economic, environmental and social considerations are integrated into decision making and management.
• Evaluate present and future risk to personnel, operations, and the environment through the implementation of effective risk management and loss prevention programs.
• Assess and train employees to recognize and perform work activities in a safe and environmentally responsible manner. This includes complying with company rules and procedures and offering constructive suggestions for improving health, safety, and environmental matters within the control of the company.
  
• Seek continuous improvement specific to health, safety, and environmental matters through setting objectives and targets, preventing pollution, and providing performance reports to employees and stakeholders.
• Develop and implement health, safety, and environmental facility programs to establish consistency in company standards, practices, and procedures to ensure governmental compliance.
• Develop and implement emergency preparedness procedures with the objective of effectively responding to facility emergencies.
• Prepare and release annually to local communities, regulators, and other interested parties a "social and environmental report" describing the impact of company activities on the health and safety of employees and the environment.

The cooperation and commitment of all employees in observing and complying with this policy will result in protecting the environment and safeguarding employees and the public from unacceptable risks.

Kennecott Minerals Company Community Policy

Wherever Kennecott Minerals operates, good relations with its neighbors are fundamental to long-term success. Knowing that each local community is different, the policy of Kennecott Minerals is that every operation shall strive to understand and interact constructively with its local communities and to assist their development in ways which apply the following principles:

Mutual respect is essential to lasting, beneficial, interactive relationships between Kennecott Minerals Company's operations and local communities. This requires continuing and effective two-way communications and realistic expectations on both sides.

Active partnership defines the way Kennecott Minerals Company works with local communities, as well as with federal, state and local governments and other affected parties, by seeking mutual commitment and reciprocity based on trust and openness so as to reach agreed objectives and shared involvement.

Long-term commitment to local communities is sought so that social and economic well-being is safeguarded and, where possible, enhanced throughout the operation's life and beyond.

Recognizing that health, safety and environmental issues have an important impact on community perceptions, this policy will be pursued in parallel with Kennecott Minerals Company's Health, Safety and Environment Policy.

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