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Glencore reveals mine fatality figures

September 8, 2011

“Glencore recorded more deaths at its industrial operations last year than any of the other “big five” London-listed miners. The world’s largest commodities trader listed the deaths of 18 employees and contractors in its first disclosure of safety and environmental information.

Among its closest peers in the mining sector, there were three deaths at Xstrata, three at Rio Tinto, five at BHP Billiton and 14 at Anglo American, according to data published by the companies. Among FTSE 100 mining companies, only Kazakhmys and Vedanta recorded more fatalities with 26 each. Glencore, which raised $10bn (£6bn) in May in one of the largest ever initial public offerings in Europe, has until recently published little information on its industrial and trading operations.”

Source: Financial Times, September 7 2011

Observations:

  • Together with an extensive half-year results report and presentation, Glencore published its first sustainability report this week.
  • Glencore’s fatality frequency rate (FFR: fatalities per million hours worked) was 0.1034 in 2010, down 25% compared to the previous year. The All Injury Frequency Rate for mining activities was 3.45, down 17% from a year earlier.

Implications:

  • The comparison with other large miners as made by the Financial Times is rather shortsighted. Risks at any type of operation are unique and cannot be compared easily. With the nature of Glencore’s assets (Kazzinc, Katanga, Mutanda, Mopani, Los Quenuales, etc.), which are often located in developing countries and/or operated by local companies, it is obviously harder to manage safety than in large centralized operations in Western countries. However, it is a good sign that Glencore reports the figures and indicates it wants to manage safety at a global level.

©2011 | Wilfred Visser | thebusinessofmining.com

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