FATAL HAZARDS AWARENESS HANDBOOK

INTRODUCING

The loss of life or an injury at our operations is completely unacceptable. Every person who enters our operations has the right to finish their day and go home safely without incident or injury.

SafeCoal means identifying our fatal hazards, improving how we operate, changing our behaviour, and protecting ourselves and our colleagues each day. Without exception and without excuse.

I am asking every member of our team to use this handbook and I believe we can make SafeCoal a reality.

PETER FREyBERGChief Executive

Our people are our most valuable asset and must be protected from the risks of our industry and the environments in which we operate.

To achieve this we have introduced an intervention program to eliminate fatalities and improve our safety performance across our operations.

The program is called SafeCoal. SafeCoal is not negotiable.

One of the main initiatives of SafeCoal is to demonstrate to employees and contractors at our operations how to identify and address the fatal hazards in their workplace.

The following handbook is intended to create awareness around the most common fatal hazards prevalent across our operations and some of the key elements of the protocols to be progressively implemented and maintained across our business. A complete copy of the protocols will be available in a separate Fatal Hazard Protocols document.

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1STRATA FAILURE

2FIRE AND EXPLOSION

3 MOBILE EqUIPMENT

4 INAPPROPRIATE EMERGENCy RESPONSE

5 INRUSH AND OUTBURST

6 EXPLOSIvES AND SHOTFIRING

7 INADEqUATE ENERGy ISOLATION

8 WORKING AT HEIGHT

9 LIFTING AND CRANAGE

10CONFINED SPACE AND IRRESPIRABLE/NOXIOUS ATMOSPHERE

11 TyRE AND RIM MANAGEMENT

12 ELECTRICAL SAFETy

FATAL HAZARD PROTOCOLS

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1 STRATA FAILURE

A strata failure risk assessment must be undertaken and a Strata Failure Management Plan developed, implemented and maintained.

The Strata Failure Management Plan must include:

Appropriate factors of safety in the mine and pillar design; and

Support rules or surface slope stability rules.

No person shall enter under unsupported roof.

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2 FIRE AND EXPLOSION

Fire and explosion detection/monitoring systems must be installed commensurate to the fire and explosion related risk in all appropriate locations and/or on relevant items of plant and equipment.

All fire monitoring, detection, suppression, fire fighting and emergency response/rescue equipment must be listed on a register.

A permit system or process must be developed, implemented and maintained for use whenever a fire or explosive monitoring, detection or suppression system is offline.

Hot work must be continuously monitored for a minimum of two (2) hours and up to four (4) hours dependent upon the risk after completion.

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3 MOBILE EqUIPMENT

A risk assessment must be conducted to identify the risks associated with the interaction of heavy and light vehicles and pedestrians.

A Transport/Traffic Management Plan must be developed, implemented and maintained.

Operations must make rules that relate to safe travelling and parking distances.

Operations must construct and maintain safety berms/windrows that consider the height,density, material type and profile to act as an effective barrier.

An analysis must be undertaken to determine where light vehicles and heavy mobile plant and equipment can be separated and implement controls, particularly around workshops and stockpiles.

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4 INAPPROPRIATE EMERGENCy RESPONSE

A risk assessment must be conducted to identify potential emergency situations, and an Emergency Response Management Plan developed, implemented and maintained.

Provision of adequate emergency equipment, including escape and rescue apparatus (readily accessible and clearly signposted) and appropriate transport and response vehicles.

Provision of effective and robust communication devices and procedures for the initial notification of personnel of the emergency situation and for ongoing two-way communication.

Duty cards must be developed that clearlyidentify each of the responsible persons, their duties, functions and reporting relationships.

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5 INRUSH AND OUTBURST

Inrush/outburst risk assessments must be conducted to identify potential inrush/outburst sources, and once identified, Inrush/Outburst Management Plans must be developed, implemented and maintained.

Where appropriate a technical assessment must be undertaken to determine the nature and magnitude of potential inrush sources.

Inrush control zones (i.e. stand off distances or barriers) must be established.

A Permit to Mine approval process must include a requirement for pre-drilling in advance of the mining direction for an inrush control zone.

Gas concentration levels must be at a pre-determined acceptable level before a Permit to Mine can be issued.

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6 EXPLOSIvES AND SHOTFIRING

Loaded shots must be barricaded to prevent unauthorised and/or inadvertent access by person(s) and equipment.

Quality control measures must be implemented and maintained for drilling, loading, stemming and tie-up.

Exclusion zones must be established and procedures developed, implemented and maintained for pre-blast inspection, clearance and sentry placement for the safety of all person(s) and equipment.

Procedures must be developed, implementedand maintained for the loading of explosives into hot or reactive ground.

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7 INADEqUATE ENERGy ISOLATION

Operations must develop, implement and maintain an energy isolation procedure and permit system for the relevant energy sources.

The energy isolation procedure must contain the 12 step process flowchart for all isolations.

Particular emphasis must be placed on:

Identification and dissipation of all relevant energy sources;

Isolating and securing; and

Verification of the isolation, i.e. test for dead.

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8 WORKING AT HEIGHT

Personnel must not work above two (2) metres without appropriate guarding, fall restraint or arrest equipment.

Personnel working at height must not work alone.

All safety harnesses, lanyards, fall arrest devices and accessories must be appropriate to the type of work being conducted and meet the relevant, recognised design standard.

Lanyard anchorage points on apparatus should, where practical, be above the head of the worker and where practical no lower than shoulder height.

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9 LIFTING AND CRANAGE

Persons must not under any circumstances enter an area under a suspended load.

Crane/lifting equipment must have at least 20 metres clearance from all power lines unless a risk assessment is undertaken to determine controls to allow for operations within 20 metres.

Tag lines must be used where a load requires steadying or guidance and to prevent personnel entering the load zone.

Equipment used for towing must not be used for lifting activities.

All crane hooks must be fitted with a positive safety catch.

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10 CONFINED SPACE AND IRRESPIRABLE/NOXIOUS ATMOSPHERE

Confined spaces must be identified and signposted.

All access to confined spaces must be in accordance with a permit system that includes a pre-entry risk assessment and clearly defined conditions of entry.

Atmospheric monitoring equipment used must be of an approved type, listed on a register, and be inspected, tested, calibrated and stored in accordance with manufacturers specifications.

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11 TyRE AND RIM MANAGEMENT

A Tyre and Rim Management Plan must cover lifting, fitting, removing, testing, repairing, maintaining and changing tyres and rims on mobile equipment in the workshop plant.

Rim fastenings can only be removed after the tyre has been deflated to zero, unless a formal procedure has been developed and authorised, based on a specific documented risk assessment.

Operations must establish a clearly demarcated restricted work area for changing tyres and rims to protect other personnel not directly involved.

Operations must establish a periodic testing, inspection and maintenance regime for tyres and rims.

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12 ELECTRICAL SAFETy

All electrical work must be conducted by competent/authorised personnel.

Electrical safety devices such as earth leakage and overload protection must be installed on all final distribution circuits (where practical).

There must be a site assessment of overhead and underground power lines and a system in place to control the risks.

All electrical isolation must also comply with XC Fatal Hazard Protocol 7: Inadequate Energy Isolation.

It should be noted that undertaking a risk assessment and specifying competencies is a requirement across all the Fatal Hazard Protocols.

Risk assessment - the process of risk identification, risk analysis and risk evaluation. Risk causes and potential consequences must be understood to enable personnel to implement and maintain adequate and effective controls.

Competency - all persons conducting specific tasks identified in the Protocols must be trained, assessed and authorised.

Details of all requirements are available in the XC Fatal Hazards Protocols document at http://coal.xstratanet/SustainableDevelopment/Pages/Safety.aspx

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ADDITIONALINFORMATION

This handbook is printed on HannoArt Silk, an environmentally responsible paper stock produced from FSC (mixed source) certified pulp from well-managed forests and is EMAS and ISO 14 001 accredited.

vERSION 2 FEBRUARy 2011

XSTRATA COALLevel 38, The Gateway Building 1 Macquarie Place Sydney 2000

Telephone +61 (02) 9253 6700 Facsimile +61 (02) 9241 6898 www.xstrata.com