Worker Safety and Health

 

Work safety and health management

 

Respecting human life and dignity is a core value. There is no justification for taking uncontrolled risks that put our health or safety in harm’s way”. This is the first value set forth in 2010 in the Codelco Value Statement. Codelco works in a planned and systematic manner to detect, analyze, manage, and control labor risks, perfecting a culture of accident and professional disease prevention that values and supports a committed leadership.

 

In the same manner, it has a Corporate Policy on Safety, Occupational Health and Environmental Management that commits to a people-centered business administration approach that protects the life, physical integrity, and health of Codelco employees, contractor companies and people who live in its operation’s surroundings.

 

At the end of 2010, Codelco defined a vision for 2015 to reach a five-year fatality-free record , as well as achieving a frequency rate under 1 for all employees and contractors, and the incorporation of automated hazardous processes.

 

The Corporation’s work centers have implemented and certified management systems under OHSAS 18001 standards. During 2010, certification maintenance audits were successfully conducted on these systems in the Codelco Norte, Salvador, Andina, and El Teniente divisions, and recertification audits in the Ventanas divisions under the requirements of OHSAS 18001:2007 standards.

 

The Codelco Norte, Salvador, Andina, and El Teniente divisions have provincial offices of the Social Security against Risk of Labor Accidents and Professional Diseases (SATEP), and Corporate Headquarters, Vice- Presidency of Projects and Ventanas Division adhere to the Chilean Chamber of Construction Mutual Insurance Association.

 

 

LA6-APercentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.During 2010, in compliance with applicable legislation, 47 Hygiene and Health Joint Committees (CPHS), representing 100% of the workers, function in Codelco. These committees are integrated by three management representatives and three representatives elected by employees

 

Immediate Actions and fatal and serious accidents reports

 

Concurrent with ILO regulations on this matter ,the Corporation is subject to legal regulations regarding the record and notification of work accidents and professional diseases.

 

According to Law 16,733 and Memorandum 2,345 of the Superintendence for Social Security, in case of fatal or serious accidents, the work center shall immediately notify the Office of Labor Inspection and the Health Authority and shall suspend labor at the affected site. Furthermore, in compliance with D.S. 72, The national Geological and Mining Service shall benotified, and, as stated in Codelco’s internal guidelines, must immediately report to Corporate Management ofbr />Safety and Occupational Health.

 

Subsequently, and in accordance with internal guidelines on the investigation of fatal, serious, and high potential accidents, an investigative committee is to be established, and investigations must begin. In the case of fatal accidents a commission representing the corporate center is also incorporated. Each division, Corporate Headquarters, and Projects Vice-Presidency (VP) require reporting all work-related accidents, professional diseases, and accident-rate statistics to competent authorities and organizations, as stipulated in the respective regulations or> instructions.

Participation in Government and Sector Committees

 

Within the context of the accident at the San José mine, which culminated in the successful rescue of the 33 miners, the Presidential Advisory Committee on Work Safety was created, presenting a series of proposals among which was the constitution of work committees to revise regulations and standards in accordance with the risks associated to the respective area, company characteristics, and regional reality.

 

In these committees, experts summoned by the Government will work during 6 months on identifying and analyzing the main gaps or deficiencies in labor safety and security regulations, and will subsequently present a general regulatory proposal on social security at work, which will be applicable to all worksites.

Codelco participated in this Presidential Committee and is currently a part of the Mining Committee. The Corporation actively participated in the National Program for the Eradication of Silicosis (PLANESI) of the Ministries of Labor and Social Security and Health in its role as an administrator of insurance contemplated in Law 16,744.

In compliance with the 2008 Framework for the Standardization of Safety Demands, agreement subscribed by the Chilean Mining Council in 2010, health assessment standards, light vehicle standards, and personal protection equipment standards were agreed upon, and are awaiting ratification by the Mining Council Executive Committee.

 

Work Accidents

 

LA7Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.

General Information

Accident rates, frequency, severity and fatality frequency rates during 2010:

 

 

(1) Vice-Presidency of Projects
(2) With time loss
(3) Without time loss

Global Frequency Rate (GFR)

 

Codelco’s frequency rate has declined steadily for the last decade.

 

In 2010, Codelco reached a Global Frequency Rate (S.D. 40), including own employees and contractor employees, of 2.02 injuries per million man-hours worked, the lowest rate ever achieved in the history of the Corporation – 16.5% lower than in 2009 – placing Codelco in the third quartile of Chile’s major mining companies.

 

 

 

Global Severity Rate (GSR)

 

During 2010, the accumulated Global Severity Rate (D.S. 40) reached a value of 490, corresponding to an 86.3% increase regarding 2009 rate. This portrays the irregular and random trend of this indicator, as it measures consequences, including days away from work due to fatalities.

 

 

 

 

Fatal Accidents

 

LA7Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.During 2010, Codelco mourned the deaths of 7 workers due to labor accidents in the Codelco Norte (3), Salvador (3), and El Teniente (1) divisions. Of these, 3 corresponded to workers from our own headcount and 4 to contractor company employees.

 

Safety Plans or Programs

 

Among the safety actions carried out during 2010, the following are worth highlighting:

• Workshops on Leadership for a Solid Prevention Culture were carried out at a corporate level and in divisions, aiming at strengthening safety leadership in first level executives and supervisors and moving toward a culture of safety.
• Improving the quality of accident investigations. Corporate guidelines on fatal, severe, and high potential accidents were updated and applied to fatal accident investigations. This modification takes into account changes in the new version of OHSAS Regulation 18001:2007; modifications introduced by Law Nº 20,123 of 2006 to Law Nº 16,744 of 1968 on Social Insurance for Work Related Accidents and Professional Diseases, and the experience of recent years regarding accidents investigation. Additionally, we began the “Verification, Follow-up and Analysis of Fatal Accidents Investigations for Accidents Occurred in Codelco between January 2008 and October 2010″ study.
• For the sake of rigorous operation control, the preparation of a document called Compliance Standards with Rules for Life was begun. Additionally, Green Cards continued to be implemented at all work centers, except at the Ventanas Division.
• In divisions, we continued working on the execution and implementation of behavioral safety plans.
• With regards to contractor management, the Special Guideline for OHS Management System Implementation, RESSO, Version 2 of May 2010, was modified, mainly in terms of scope of application and elements of the professional risk prevention programs.

 

Additionally, we worked in a number of internal and external initiatives to improve work safety conditions:

• The Sixth Codelco Hygiene and Safety Joint Committees Conference, organized by El Salvador Division, focused on Preventative Culture
• Preparation of a Protocol regulating the relationship between divisions and Project Vice-Presidency, on issues related to Safety. Version 2, May 2010

Professional Diseases

 

Professional diseases are those caused directly from the exercise of a person’s profession or job, and which leads to disability or death.

 

During 2010, we mourned the death of Luis Morales Campillay, an active worker of the Codelco Norte Division, due to Pleural Mesothelioma, a professional disease.

 

Occupational Health and Industrial Hygiene Plans or Programs To achieve in depth knowledge on professional disease risk factors, we have carried out industrial hygiene programs that contemplate sampling and measuring professional disease risk agents.

 

The results of environmental measurements contribute to the development of the Codelco Risk Maps, which can be found on the intranet in its new 2010 version.

 

To prevent the occurrence of such diseases, the Corporation has Epidemiologic Vigilance Programs (EVP) serving a double purpose: seeking early detection of the possible compromise of a worker’s health due to chronic exposure to certain risk agents present in his/her work environment, and diagnosing the presence of a professional disease and evaluating possible temporary disability (medical leave) or permanent disability (disablement, loss of earning capacity). The analysis and interpretation of the data obtained must provide a basis for decision making and at the same time is used for communication purposes.

 

The Corporation has corporate guidelines that lay out a specific methodology for the realization of preventive exams to workers, with regards to:

• The type of agent they are exposed to (free crystallized silica, noise, arsenic, inorganic lead, sulphur dioxide, effort, non-ergonomic movements or posture, vibration, ionizing radiation, and high-altitude work exposure);
• Total exposure time at the workplace;
• Duration of the workday; and
• Agent concentration levels.

 

This way, all workers exposed to the abovementioned agents in concentrations above the legal limit, are put through annual preventative medical exams. These include a physical exam, laboratory tests, x-rays, and training in self-care and use of personal protection equipment.

 

Within the framework of the Global Program for the Eradication of Silicosis in the World by the year 2030, the Sustainability Management assembled the Moving Towards Silicosis-Free Mining seminar, to inform on the Global Program, the current dust control situation of Codelco operations, and implementing a coordination mechanism to approach the issue. The main conclusion was that, to deal with dust control issues and comply with the commitment to eradicate silicosis by the year 2030, this challenge should be approached as a specific investment and management project of Corporate scope.

 

Regarding contractor-company workers, an agreement was reached for the standardization of pre-occupational and occupational health assessments, and for the medical supervision of workers by Codelco and management organisms of Law 16,744 (worker mutual insurance associations and Work Safety Institute (ISL)), which will allow the streamlining of standards among mining companies and ease worker transfers, simplifying processes, reducing costs and avoiding unnecessary medical exams.

Disability due to Professional Disease and Work Accidents

 

The identification and valuation of professional disability is the competence of the Preventive Medicine and Disability Commissions (COMPIN), subordinate to the Health Authority.

 

LA7Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. The following tables show the number of Codelco employees with professional disabilities who remained active through December 2010, in accordance with Law 16,744.

 

 

 

 Given that a worker may present disability for two or more simultaneous diagnosis, the number of disabled professionals is lower than the number of resolutions shown in the table.

 

 

Investments in Safety and Occupational Health

 

During 2010, Codelco invested US$145.6 million in projects to improve working and living conditions at the different production sites. Among the main projects it is worth mentioning:

 

 

Codelco Norte Division

• Relocation of the main chemical laboratory

Salvador Division

• Improvement of fugitive gases

Andina Division

• Water Normalization, stage I

Ventanas Division

• Improvement of cafeteria safety conditions

El Teniente Division

• Restoration and installation of infrastructure following February 2010 earthquake.