1. CONTRACTOR MANAGEMENT AT XSTRATA COAL

2. INDEX Location of sites Employees vs. Contractors
Contractor selection phase
Pre-engagement operational phase
Engagement operational phase
Post engagement / project completion phase
Completion stage
Common problems experienced
Future initiatives

3. Location of sites Middelburg Witbank Ogies Waterpan Boschmans
Witcons
South Witbank
Goedgevonden
Tweefontein Division
Middelburg
Witbank
Phoenix
Tavistock
ATC
ATCOM
iMpunzi Division
Ogies
Mpumalanga Division
Tselentis
Spitzkop
DTJV - Middelburg
DTJV - Douglas
Rietspruit

4. Employees vs. Contractors
Mine
Tons/mth
No. empl
No. Contr
% of Workforce
Arthur Taylor
164000
537
138 20
ATCOM
176000
363 79 18
Boschmans
280000
568
282 33
Goedgevonden
60000 5
173 97
Phoenix
84700
430 83 16
South Witbank
342
297 44
Spitzkop
433
221 34
Tavistock
177500
492
295 38
Tselentis
115000 92
737 89
Waterpan
110000
141
437 76
Witcons
190000
394

5. Employees vs. Contractors
Strength
Injuries
Contractors contribute to 31% of the total number
of injuries

6. Management Of Contractors
CONTRACTOR SELECTION PHASE
CONTRACTOR SELECTION PHASE
PRE-ENGADGEMENT OPERATIONAL PHASE
OPERATIONAL PHASE
The company Preparation
Completion of all documentation Including contract, indemnities, returns, etc
Attendance at HS and Operational Meetings
Evaluation criteria
Over inspection / Monitoring / Auditing
Tender Assessment in accordance with Company Procedure
Completion of pre-emptive risk identification and assessment
Assessment and response to pre-emptive risk identification and assessment by the company.
POST-ENGADGEMENT OPERATIONAL PHASE
Selection / Rejection
Review contractual performance / delivery of services
Induction / Training
Medical Examination (certificate of fitness and medical surveillance)
Review compliance with obligations

7. Contractor Selection Phase
Need for contractor employment identified
Scope of work defined
Evaluation criteria
Tender assessment – company procedure
Company actions
Selection

8. Pre-engagement / Operational Phase
Documentation, i.e. contract, indemnities, appointments, etc
Pre-emptive risk identification & assessment
Response to risk identification & assessment
Induction training
Medical examination (C.O.F. & medical surveillance)

9. Engagement / Operational Phase
Monitoring performance, i.e.:
H&S Meetings
Risk management programme
Occupational hygiene controls monitored
Incident / injury reports
Daily, weekly, monthly returns submitted
First aid programme
Induction
Medical surveillance
Health & safety training programme

10. Engagement / Operational Phase
Issue & control of PPE
Equipment inventory
Logbooks, registers, appointments
Fire drills
Emergency preparedness / escape routes
Vehicle / equipment pre-use checks
Planned task observations
H & S Audits
Hazardous substances
Maintenance management

11. Engagement / Operational Phase
OEM training / authorisation procedure
Approval of deviations / modifications to equipment
Approval – temporary workers
Approval – contract variation orders
Non-compliances
Special precautions for hazardous work

12. Post-Engagement / Project Completion Phase
Review of contractual performance
Delivery of service
Quality assurance
Review of compliance with obligations
Cold commissioning of system
Hot commissioning of system
Warranty and maintenance period confirmed
Contractor documentation
Security cards returned

13. Post-Engagement / Project Completion Phase
Exit medical examinations
Equipment removal
Site area cleared, clean & safe
Acceptance of ownership

14. Common Problems experience
Limitation on the number of specialist contractors in the market
Time restraints in selection and appointment process
Quality of contractors supervisors and employees
Record keeping on the movement of contractors employees between mines
Desertion of contractors employee without completing exit medical examinations

15. Future initiatives Preferred contactors list
Electronic data base with program to generate tender documents