StAKEHOLdER ENGAGEMENtproactive, transparent and constructive approach to stakeholder engagement and development is critical to maintaining our social licence to operate.

Structured stakeholder identification and engagement process is in place at corporate and operational sites to ensure delivery of transparent, timely and fact-based communications to stakeholders. Regular feedback and grievance redressal are important aspects of the stakeholder engagement process. The Grievance Committee reviews the grievances on a periodic basis.

safety and healthWe are committed to achieve Zero Harm across the business. the health and safety policy, related guidelines and standards are implemented to maintain safety and wellbeing of our people at workplace, respond responsibly to incidents and undertake appropriate provision to mitigate risks.

The leadership team’s primary focus is on eliminating fatalities and serious workplace incidents. Launched in 2013 in partnership with a global leader, the Company’s safety excellence journey ‘Aarohan’ aims to strengthen safety management, understand the top risks and effectively managing these risks through robust controls and systems by fostering workforce involvement at every level. The organisation has developed a belief that each and every incident is preventable and thus the focus is on identifying, understanding and controlling the risks associated with hazards at workplace. The Company’s safety council comprising of all unit heads and central leadership converges one unit every month and interacts in multiple teams across the location and thereafter shares these observations for risk mitigation and implementation across the Company.

With our transition to fully underground mining operations, the safety risks in our operations have significantly increased

culminating in increased LTIFR and fatalities, a situation that is completely unacceptable. In order to bring renewed focus on our changing operating environment, the Company has redesigned the Aarohan Journey focusing on the top 5 risks across our operations. To reinforce leadership commitment, each Exco member now spends a full day in a month at one site mentoring the local safety

council and spotting areas of vulnerability.

The Company’s Health, Safety and Environment policy demonstrate its commitment to protect employee and others affected by operations while a set of standards, guidelines, operating procedures and systems detail the accountability, mandatory controls and requirements for managing the business

in a safer way.

KEY ELEMENtS OF SAFEtY pROGRAM

HSE Policy and Principles

Corporate Safety Council- chaired by CEO

Monthly Exco member site visits

Critical contol management through 6 sub-committees

Work place Safety Standards, Safe Operating Procedure, Work permit System, Safety Instructions

Introduction of FSIpp (Fatality & Serious incident prevention program) Subcommittee

As part of our Aarohan journey, we have five subcommittees i.e. Safety Interaction, Contractor Safety Management, Process Safety Management, Incident Management and Standard Rules & Procedure. With an aim to enhance focus on high risk activities and monitoring the effectiveness of control measures, we introduced 6th subcommittee i.e. FSIPP sub-committee.

The key objectives of the FSIPP subcommittee is to ensure that

• All the identified high risk activities are analysed for risks and control measures defined, implemented and monitored

• Drive organization fatality and serious injury prevention program in a structured way

• Periodic monitoring, audit and horizontal deployment of critical controls across all locations

HINDUSTAN ZINC LIMITEDANNUAL REPORT 2018-1950

SAFEtY pERFORMANCEThe Company believes in fostering the culture of transparent reporting and encourages employees to report every incident in order to eliminate all potential hazards and risks in our operations and prevents reoccurrence. During the year, the Company reported increase in the number of incidents although there is reduction by 26% over the previous five years. This year, there was an increase in lost time injury frequency rate from 0.27 to 0.63 partly on account of higher local contract workforce and increase in underground mining operations. This puts a high onus on the Company to enhance skill development and safety training to local workforce and several initiatives are being taken in this area.

There were regrettably seven fatalities during the year including four in mining and three in smelting operations. The root cause for these incidents have been thoroughly investigated and barriers have been put in place to prevent their recurrence. Safety trainings of 0.81 million man-hours were conducted to strengthen adherence to safety standards and procedures. In particular, on-boarding and skill enhancement of contractor workforce has become a critical business imperative.

LtIFR* trend

0.85

14-15

0.50

15-16

0.63

18-19

0.30

16-17

0.27

17-18

*one million man-hours and incident reporting as per ICMM guidelines

SAFEtY BENCHMARKING WItH GLOBAL pEERS

KEY SAFEtY INItIAtIVES dURING tHE YEAR• Leadership driven safety townhall, IBU level safety council,

zone HSE coach programme, mining and smelting safety workshops, second party safety audit and leadership tour of shop floor to showcase felt leadership

• Introduced FSIPP subcommittee to focus on high risk areas • Safety Innovation cell constituted for implementing global

best practices, innovative engineering solutions and automation to eliminate risks and manual interventions. Subject matter experts were handpicked from operations for formation of this cell

• Theme based initiatives to increase focus were taken across areas such as awareness on line of fire concept, electrical safety, UG fire and man-machine interaction etc.

• Safety maturity assessment of ‘Aarohan’ safety excellence journey was conducted by DuPont to identify issues and improvement opportunities for taking organisation to next level i.e. Inter-dependent safety culture

• In addition to the Company’s existing audit frame work, second party safety audit (SPSA) process was implemented. SPSA is inter location audit process of site safety management system, safety standards and work streams across organization. Seasoned auditors were also deployed for cross audit. All operating locations have undergone SPSA during the year and corrective and preventive actions were tracked for effective closure

• 11 mandatory online safety tests conducted to bring awareness on various safety standards

• Videos on machine guarding and excavation standards were released under training application. Safety videos will be made for all standards in the coming years

• Introduced Observance Day to sensitize all employees on past incidents, implementation of its learnings and to avoid

reocurrence of same incident in future

*FY 2019 data. Company date for peers

HZL* peer 1 peer 2 peer 3 peer 4 peer 5LTIFR 2018 0.63 0.47 1.06 1.35 No

latest report

1.63

LTIFR 2017 0.27 0.34 1.02 1.25 0.55 1.68

FINANCIAL STATEMENTS

STATUTORY REPORTS

BUSINESS REVIEW

CORPORATE OVERVIEW51

ENHANCING COMPETENCY OF MINING MATES

As we transition to high level of mechanisation at Zawar mines, it is imperative for us to enhance competency of frontline supervisors to deliver growth in a safe manner. Therefore, we have implemented a comprehensive Mining Mate Training program – a custom built, contextualised 3-stage program which includes assessment, training and audit of mining mates at Zawar Mines in partnership with a leading mining training specialist from Australia. The course covers a range of key elements related to statutory requirements and safety in mining operations.

A skill gap assessment of 300 mining mates was conducted to understand the current knowledge of skills, roles & responsibilities and a custom built training program was developed with strong emphasis on “why they do, what they do at the workplace”. In Stage 1, data from the assessment was analysed for insights on each mining mate, ranking them based on their performance during assessment. In Stage 2, a 15-day training program was conducted for 21 selected mining mates to develop them as master mining mates. In Stage 3, these master trainers are imparting training to all mining mates at Zawar mines.

The training modules are designed with a blend of classroom and practical activities on the surface and underground to improve operational & risk management skills and empower mining mates to make informed decisions regarding safety and production parameters.

WAY FORWARD• Leadership coaching and safety leadership development • Focus on zero fatality and serious injury • Enhance competency of safety professionals• Structured skill improvement of contractor workforce • Upgradation of vocational training centre for skill and

competency development• Strengthening process safety management • Drive for structural stability of plants, buildings, tailing dams,

dumps, other storage facilities etc.• Development of design safety standards

HINDUSTAN ZINC LIMITEDANNUAL REPORT 2018-1952