| safety |
| The strong emphasis on safety at
PT Freeport Indonesia has resulted in continued improvement in
our safety performance. Our safety policy is implemented through
the Freeport Safety and Health Management System, which also
applies to all contractors and privatized companies serving our
operations in Indonesia’s Papua province. Implementing an effective safety program for such a large and diverse operation — involving more than 19,000 workers engaged in mining and milling, ore flow and processing, power plants, ground transportation, aviation, port and marine vessel operation, residential towns, dormitories and a hotel — is a complex undertaking. It involves management and supervisory focus: a comprehensive safety management system for every aspect of operations; introductory, fundamental, specific skill and supervisory training — including annual refresher courses; and a system to track results and progress in achieving safety goals. PT Freeport Indonesia measures its progress using the international NOSA (National Occupational Safety Association) 5 Star Rating System, as well as the Supervisory Safety Accountability Program to measure supervisory safety performance. Annual safety and industrial health goals are established by each operating unit, and management is held accountable for the results. Safety and industrial health performance is a key indicator in the annual performance review of each supervisor and manager. This system has worked well for our company historically, and our safety performance has consistently compared very favorably to mining operations in the U.S. and other nations. In 2006, 15 PT Freeport Indonesia divisions achieved 5-star ratings from NOSA. In addition, several divisions were recognized as best-in-class worldwide when compared to other operations using the NOSA system. During 2006, the lost time injury rate per 200,000 working hours at PT Freeport Indonesia was 0.10, an improvement over 2005 and comparing very favorably to the U.S. metals and mining industry average for 2005 of 2.15. The total reportable injury rate per 200,000 working hours was 0.31, an 18 percent improvement over 2005 and again comparing favorably to the 2005 industry average of 3.55. |
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