Critical Equipment Inspections Xstrata Coal South Africa

2 Contents Historical situation ATCOM Fatal accident 23/02/2004 Identification of critical equipment and installations Inspection criteria used Out sourcing contract work Tagging of equipment

3 Historical review Pre use inspection lists for equipment Log book system No physical proof of inspections conducted Contractors pack requirements

4 Critical equipment List compiled of critical equipment and installations Inspection criteria developed

5 ATCOM 23 February 2004 Incident -Electrocution Work planned to replace water column – contractors pack completed Task delayed – Making up of pipes – work extended into evening Changing conditions – rain, darkness and using different type of tools as planned Sub contractor bring additional undisclosed equipment onto mine Faulty extension lead and inadequate earth leakage protection Incident Medical condition of now deceased Certificate of compliance for electrical installations

6 Short Comings identified Appointment of responsible persons to do various inspections ( plant / opencast working) Listing of critical equipment and installations Proof that inspections were carried out – not a paper exercise Inspection of contractors/ sub contractors equipment

7 Tagging of equipment and out sourcing of inspection authority Appointment of Gear Industry – legal appointment Critical inspection lists developed and signed off mine engineers (include vehicle checks) Quality inspections carried out of facility by mine engineers Requirement in contractors pack that inspections were conducted and equipment tagged Three month inspection cycle observed Pre-use inspection system still in place for daily checks

8 Inspection Tagg

9 Results of inspections Past four months: 28% rejection on vehicles – breaks and lights 23% rejection on vehicles – fire extinguishers 26% rejection on electrical equipment 25% on hydraulic/ lifting and other equipment Improvement on the quality of equipment from contractors that have been through the process