Our ongoing safety initiative, Safe Production, sets zero accidents and zero occupational illnesses as the only acceptable safety goal. While safety performance in 2007 was favorable in comparison to the U.S. metal mining industry, the occurrence of five fatalities was regrettable and unacceptable for our company. These tragic events underscore the absolute need to have in place efficient and robust safety systems to prevent such occurrences. Our experiences in 2007 have resulted in a renewed effort and commitment to target the elimination of unsafe conditions and at-risk behaviors.

We have placed a priority on the elimination of high-energy events – for instance, operations that utilize high speed or pressure – that could result in fatal or serious accidents. Using risk assessment and management techniques, the potential for such occurrences are being identified, managed and eliminated. Performance is also driven through our proactive safety and occupational health audits, designed to identify system gaps and opportunities for improvement.

Our employees and contractors worked over 126 million man-hours in 2007, with a total reportable incident rate of 1.24 and a 0.78 lost time rate, per 200,000 man-hours worked. These rates are well below the U.S. metal mining industry averages of 3.31 and 2.13, respectively. However, our proactive daily management of safety and health is based on leading indicators and not outcome-based metrics. Performance is being driven through personal accountability, elimination of at-risk behaviors and effective use of risk management tools. Most of our operations have committed to seeking certification under the international OHSAS 18001 standard for occupational safety and health management, with 15 sites obtaining this certification during 2007. As of January 2008, three facilities have also received a Star certification under the Voluntary Protection Program of the U.S. Occupational Safety and Health Administration.

Other key areas of safety and occupational health focus include:

• Training
• Internal and external safety and occupational health audits
• Occupational health surveillance and mitigation processes
• Industrial hygiene
• Emergency response
• Consequence thinking
• Professional development opportunities
• Best practice sharing.

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