Professional Documents
Culture Documents
2002
PART 1
EXECUTIVE SUMMARY
This report describes the HSE activities and performance at PT Kaltim Prima Coal
(KPC) in 2002 and planned programs and targets for 2003.
The KPC HSE management goals are contained in the sites HSE Policy. The site
operates a safety management system known as Prima Nirbhaya, based on the
NOSA safety system, and an environmental management system that is being
progressively upgraded to ISO 14001 compliance. These systems provide HSE
assurance through processes of investigation, measurement, analysis and review
providing output that is discussed at weekly Executive Committee meetings. In
addition, the Safety Improvement Committee reviews matters relating to serious
safety risks and prescribes actions to mitigate them.
Safety
The sites safety performance in 2002 and targets for 2003 are summarised as follows:
Parameter
Target 2002
Actual 2002
Target 2003
Fatalities
Potential fatalities
22
12
22
17
0.18
0.23
0.18
Although KPC did not meet its LTIFR target in 2002, its LTIFR was significantly lower than in
preceding years:
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In 2002, KPC was awarded the Aditama Award from the Indonesian Department of Geology
and Mineral Resources for being the safest mine in Indonesia.
Regrettably in January 2002, a contractor employee was killed while conducting land
clearing using a bulldozer. This accident put into focus the urgent need to better manage the
risk of serious and fatal accidents at KPC. This became KPCs main safety objective in 2002:
New golden rules that target key fatality risks were introduced, fatality prevention standards
were developed, management of key fatality risks were extensively audited, the
measurement and investigation of potential fatalities was enhanced, and introduction of a
new contractor safety management system was commenced. Nevertheless, the frequency
with which potentially serious incidents continued to occur shows that the risk of serious
injuries or fatalities must remain the primary focus of KPCs safety effort in 2003.
Environment
Environmental performance in 2002 and targets for 2003 are summarized as follows:
Parameter
Target 2002
Actual 2002
Target 2003
Area rehabilitated
300 ha
293 ha
405 ha
Area disturbed
327 ha
630 ha
393 ha
+36 ha
+337 ha
-12 ha
90%
91%
90%
99%
99.5%
99%
The above plan increase in active footprint resulted mainly from bringing forward the
development of the Melawan reserves from 2003. KPCs rehabilitation progress is
summarized as follows:
Clearing and Rehabilitation at KPC December 2002
Activity
Cleared for infrastructure
5,336
Rehabilitated to-date
1,875
3,461
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In 2002, KPC was awarded, for the third consecutive year, a Golden Certificate for
environmental management by the Governor of East Kalimantan. KPC remains the only
coal mine in East Kalimantan to have received this award.
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PART 2
With the identification of these Key Fatality Risks, the site is better able to develop and
implement programs and measures that will reduce the risk of fatalities.
b) New Golden Rules
Golden safety rules are found at many mine-sites and usually are simple rules aimed at
protecting workers from key safety risks. In December 2002, KPC implemented a new set of
twelve Golden Rules that specifically target the Key Fatality Risks. In addition to being
focused only on these risks, each rule is supported by clear disciplinary sanctions, in some
cases, termination of employment. All people working at KPC must obey these rules.
c) Fatality Prevention Standards
A series of 11 fatality prevention standards were developed in 2003. The purpose of these
standards is to effectively address the Key Fatality Risks identified for the site. The
standards have clear accountabilities for fulfilling requirements, and will be supported by
guidelines and working documents that describe how requirements can be achieved.
Resources have been dedicated to upgrade and implement training and awareness
programmes to support these standards.
d) Auditing of Management of Key Fatality Risks
In 2002, KPC implemented a new safety auditing program that targets only the Key Fatality
Risks. By the close of 2002, all our site contractors and 14 selected KPC Departments had
been audited under this program and had been issued with action plans for improvement.
The audits are done in a manner that allows numerical ratings to be given to each contractor
or Department; this provides a means to measure performance and improvement. Significant
improvements to safety management have resulted from the program, which will be ongoing
2003 and in subsequent years.
e) Improved Measurement
In previous years KPC has relied on the measurement of Significant Incidents and Lost Time
Injuries to gauge our safety management performance. In 2002, KPC introduced an
additional parameter known as Potential Fatalities. By measuring the number of potential
fatalities occurring in our workplace the site can assess the effectiveness of measures aimed
at reducing the risk of fatal accidents.
f)
Improved Co-ordination
The large number of safety initiatives and programs being implemented in 2002 highlighted
the need to better coordinate and prioritize safety management. To address this, a Safety
Improvement Committee has been created. It deals with and manages all safety
improvement projects.
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In 2003 a Contractor Safety Management System will be implemented. This will assist in
ensuring uniform and high standards of safety management within KPCs large contractor
community.
A further initiative to be developed and implemented in 2003 will be a program to manage
fatigue in the workplace. Fatigue is known to be a contributing factor in many accidents at
KPC. This program will include communitybased awareness programs.
The Prinasa audit program will continue in 2003. The effectiveness of this program will be
improved by establishing individual targets for each trained auditor, and by improving the
quality of these audits.
Further studies will be carried out on the influence of cultural factors on safety behavior to
seek more effective ways of influencing the safety behavior of the local workforce.
2.2.1 Environment
Improvement of the existing environmental management system
During 2002 the planned rehabilitation, monitoring and reporting programs were
implemented, as were the hydrocarbon, waste and rehabilitation internal auditing programs.
Ongoing improvements included:
Key staff members received training in ISO 14001 as preparation for implementation of this
standard in 2003.
Following several years of negotiations driven by KPC, the TSS discharge limit for coal
mines in Kalimantan was raised from 200 ppm to 400 ppm with allowance for storm events.
Capping of the waste dumps with an engineered cover to limit oxygen entry and
hence sulphide oxidation rate.
The strategy and procedures to address this risk have been developed during a five year
research program using external consultant and peer review. They have been assessed
during an external audit as representing international best practice. Monitoring and review of
this work is ongoing and a peer review by Rio Tinto is planned for 2003.
Rehabilitation and Biodiversity Restoration
KPC has a policy of progressive rehabilitation (rehabilitation is implemented on areas as
they become available). The general rehabilitation objective is restoration of a productive
forest ecosystem, with some pit voids remaining as water bodies.
The rehabilitation strategy and technique are based on approximately ten years of site
experience including monitoring and review by consultants. The success with which native
forest is being restored will require periodic assessment over the life-of-mine. The initial
requirement of fast site stabilization is consistently achieved.
The rehabilitation procedures and standards are defined by a set of rehabilitation
specifications. Performance against these specifications is audited routinely by the KPC
Environmental Department.
Sediment
Sediment control at KPC is achieved by means of drainage works, sediment control ponds
and minimizing as far as possible the active mine footprint.
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During 2002 the dredging capacity of the site was increased. Also, the compliance level for
TSS in site discharge was increased from 200 ppm to 400 ppm. These charges have lead to
a higher level of conformance with the target.
Independent studies have shown no impact on aquatic fauna resulting from mine operations
(the receiving waters are frequently very turbid from other sources).
Hydrocarbon Management
Waste hydrocarbons (fuel, oil and grease) are generated in more than twenty-one
workshops on the mining area. All hydrocarbons are potentially hazardous to the
environment if spilt in large quantities.
Hydrocarbon management requirements for all work at KPC are contained in the KPC
Hydrocarbon Environmental Management Handbook. The site monitors compliance with
these standards by means of an ongoing audit program. During 2002, 445 audits were
conducted.
Spill control training and auditing of spill control equipment was conducted in 2002.
2000
2001
2002
Active Footprint
The risk of a further increase in the active footprint is within management and shareholders
control, and is dependent on decisions to alter the present mine plan for business
performance purposes. KPC will not proceed with such an increase without full review of the
impacts and mitigation strategies and then only with approval from its shareholders.
Greenhouse Gas Emissions
Planned production increases will be associated with corresponding increases in
greenhouse gas emissions, largely due to greater fuel usage. These will be controlled by
mine scheduling which will address the need to minimize haul distances. Third-part advice
will be sought in 2003 to identify ways to mitigate emissions.
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The approach taken at KPC for ongoing improvement towards best-practice is based on:
External safety and health audits are carried out annually and external environmental audits
are performed at 2-year intervals. Self verification and self assessment, including
compliance with local procedures and legal requirements are achieved through a
programme of internal audits and reviews as prescribed in KPCs HSE policies. Progress on
audit action items is reported routinely to senior management. The objective is international
best practice (as stated in the HSE policy).
To summarize, the following auditing will be implemented in 2003 (full implementation of ISO
14001 in 2003 will result in an expansion of this audit schedule) and all key HSE risks will be
assess in 2003 by these audits.
Audit
Environmental General environmental audit
Safety
Type
Timing
External
Q4
Internal
Ongoing
External
Q2
Internal
Ongoing
Rehabilitation audits
Internal
Ongoing
External
Q3
External
Q4
Q2
External
Q3
External
Q4
All serious and high potential incidents will be investigated by a team under the leadership of
a General Manager assisted by a root cause specialist. The investigation results and
recommendation will be reported to the Safety Improvement Team who will assign
responsibility for communication of the findings and implementation of the adopted
recommendations.
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