(a) PanAust Sustainability Management Standards

7/31/2019 (a) PanAust Sustainability Management Standards

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S U S T A

I N A B

I L I T Y

M A N

A G E M E

N T S T A N D A R

D S



December 2011 Sustainability Management Standards

INTRODUCTION

These Management Standards have been prepared in support of our Visions, Valuescompany’s Sustainability Policy. The Sustainability Management Standards apply to allPanAust offices and operations.

TheseStandards have been designed to provide a risk based management system that isconsistent with:

• ISO AS/NZS 31000 - Risk Management Standard

• ISO 31000 - Risk Management

• OHSAS 18001 - Occupational health and safety management systems• ISO 14001 - Environmental management systems

• AS 8003 - Corporate Social Responsibility

• Enduring Value -Framework for Sustainable Development

• Equator Principles - Managing social and environmental risk in project financing

• Global Reporting Initiative - Sustainability Reporting Guidelines

The Sustainability Management Standards are the integrated management systemcomprising health, safety, environment and social components developed by PanAust.Wherever the word ‘sustainability’ is used throughout this document, it refers to ‘health,

safety, environment and social’. The four key components of ‘sustainability’ are:

1. Health – promoting and improving the health of our workforce and working with localcommunities in health and hygiene initiatives and improvements

2. Safety – a state in which the risk of harm (to persons) or damage is limited to anacceptable level

3. Environment – efficient use of natural resources, recycling, reducing and preventingpollution; protecting biodiversity and rehabilitation of disturbed land

4. Social – a diverse workforce where employees and contractors are treated fairly andwith respect. The upholding of ethical business practices and fundamental humanrights is expected and the enhancement of economic benefits and sustainablecommunity development is promoted.

ThseStandards provide auditable criteria against which operations performance systemscan be measured. They have been developed in a manner to provide a continuousimprovement process. TheseStandards are reviewed every year or as determined in Element15 – Monitoring, Audit and Review. If required, they are revised and reissued in accordancewith the document control requirements of Element 4 – Legal Requirements andCommitments.

Where PanAust has no operational responsibility but has an equity stake, or wheresignificant Company assets are involved, these management standards and relevantprocedures will be made available to the operator so that comparable proficiencies can be

applied.




TABLE OF CONTENTS

INTRODUCTION ................................................................................................................... 2 VISION AND VALUES ........................................................................................................... 4 SUSTAINABILITY POLICY .................................................................................................... 5 SUSTAINABILITY MANAGEMENT STANDARDS ................................................................. 6 DOCUMENT HIERARCHY .................................................................................................... 8 LEADERSHIP AND ACCOUNTABILITY .............................................................................. 10 LEGAL REQUIREMENTS AND COMMITMENTS ............................................................... 11 PLANNING, OBJECTIVES AND TARGETS ........................................................................ 12

RISK AND CHANGE MANAGEMENT ................................................................................. 13 HEALTH AND HYGIENE ..................................................................................................... 17 ENVIRONMENTAL MANAGEMENT .................................................................................... 18 COMMUNITY, SOCIAL AND HUMAN RIGHTS ................................................................... 19 STAKEHOLDER ENGAGEMENT ........................................................................................ 20 TRAINING AND COMPETENCY ......................................................................................... 21 COMMUNICATION, CONSULTATION AND PARTICIPATION ............................................ 22 SUPPLIERS AND CONTRACTORS .................................................................................... 24

INCIDENT REPORTING AND MANAGEMENT ................................................................... 25 CRISIS AND EMERGENCY ................................................................................................ 26 MONITORING, AUDIT AND REVIEW ............................................................................... 277 DEFINITIONS .................................................................................................................... 288




VISION AND VALUES

Vision – PanAust is a growth oriented mining company determined to excel. PanAust willoutperform its competitors through:

• Growth by discovery, acquisition, development and operations that consistentlymeet performance targets;

• Optimising returns on capital; and

• Adherence to core values.

Values – Pan Aust’s values are:

• High performance outcomes in all that we do:o Our employees are performance focused with clear task definition,

measurement and accountability. We constantly seek performanceimprovement and are committed to developing our employees to achievethis. Individual performance & merit forms the basis for promotion and paythat reflects performance.

• Respect for our people:

o Respect through our commitment to our employees health and safetythrough zero harm safety objectives and treating employees with consistencyand fairness.

o Respect for the environment through best practice environmentalperformance that reflects the expectations of the communities in which weoperate & promotes an internal culture of environmental and socialawareness.

o Respect for the people and cultures of our host countries and acknowledgetheir unique characteristics in the way we manage our activities in thesecountries.

• Demonstrate integrity in all of our dealings with employees, communities,government, suppliers & shareholders.

• Excellence in communications with all stakeholders but especially with ouremployees. We seek fair, honest and transparent dealings with our employeesand stakeholders through open, two-way communication.

• Recruit high calibre people recognising the key to our success will be leaderswho earn the authority of their position by gaining the respect of their team. Wewill offer an encouraging & stimulating work environment, including providing thenecessary individual training and development to enable all employees tooperate effectively.

• Alignment of employees to Company objectives through good leadership andsystems that drive the right behaviour.




SUSTAINABILITY POLICY




SUSTAINABILITY MANAGEMENT STANDARDS

Intent

Provide risk based Standards consistent with OHSAS 18001, AS/NZS 4360, ISO 31000, ISO14001, SA 8000 and Enduring Value (Minerals Council of Australia).

Provide a basis from which to drive continuous improvement towards leading industrypractice in Sustainability.

Establish performance requirements.

Establish auditable criteria which can be measured.

Standard

The Management Standards for Sustainability are based on a model derived from OHSAS18001 Occupational Health & Safety Management Systems and ISO 14001 EnvironmentalManagement Systems.

The PanAust model uses a Plan-Do-Review-Change philosophy which is based on the Plan-Do-Check-Act principles of continuous improvement. The figure below illustrates how thestandards fit into the model. Many of the requirements in the model can be addressedconcurrently or revisited at any time.




The SUSTAINABILITY STANDARD ELEMENT s used within PanAust are:

1. Leadership and Accountability

2. Legal Requirements and Commitments

3. Planning, Objectives and Targets

4. Risk & Change Management

5. Health and Hygiene

6. Environmental Management

7. Community, Social and Human Rights

8. Stakeholder Engagement

9. Training and Competency

10. Communication, Consultation and Participation

11. Suppliers and Contractors

12. Incident Reporting and Management

13. Crisis and Emergency

14. Monitoring, Audit and Review

The Sustainability Management Standards will be reviewed annually in order to confirm theirrelevance and appropriateness to the organisation.



December 2011

Intent

Improve the understandinPanAust Sustainability Mmust be an auditable traiprocedures

Standard

The figure below illustrates

Sustainability Management Standards

DOCUMENT HIERARCHY

and implementation of Management Sysnagement Process is hierarchical in naturl from our Values to our Operations Perf

the process flow.

ems documents. Thee and as such, therermance Standards &




Values

Central to our business are the Values that we stand for in our approach to the way we do

business.

PanAust Sustainability Policy

Policies are the cornerstone of our management systems and establish the foundations andcommitment from which we operate.

Management Standards

Management Standards form the basis for the application of our management systems at alllevels within PanAust Limited.

Corporate Guidelines

Corporate Guidelines apply to all PanAust locations including facilities that are owned oroperated by PanAust, exploration, expansion, project development, mergers, acquisitionsand major activities by contractors on our sites or under our management. The Guidelinesare developed in support of theStandards where specific guidance is required for activitieswhere PanAust wish to exert influence in specific areas..

Business Unit Performance Standards and Procedures

These are prepared by the operation or project for specific use on that operation or project.Documents prepared for the operation must meet the needs of the Policy,Standards &Guidelines as is applicable to the specific needs of the Business Unit.




SUSTAINABILITY STANDARD ELEMENT – No. 1

LEADERSHIP AND ACCOUNTABILITY

Intent

To clearly set out the expectations of the company where directors, managers, employeesand contractors understand their accountabilities and demonstrate leadership andcommitment to zero harm through sustainable development.

Performance

1. PanAust has in place a Sustainability Policy that is appropriate to the nature and scale ofour activities and commitments. This policy is available to all stakeholders on ourwebsite.

2. The Sustainability Policy and the SustainabilityStandards are approved by the ManagingDirector.

3. The Sustainability Policy, management standards, risks, and performance are subject toregular review by the Sustainability Committee, a sub-committee of the Board ofDirectors.

4. Operations management develop and implement any additional documentation for theiroperations where required, in keeping with the SustainabilityStandards hierarchicalrequirements.

5. Operations managers provide resources to adequately support effective management,

implementation and maintenance of the Sustainability Management System.6. Managers are accountable for the performance of sustainability related issues within

their department, including implementation.

7. Managers demonstrate visible leadership and proactive commitment to excellence insustainability management through personal example, promoting initiatives andencouraging teamwork.

8. Responsibilities of employees and contractors in sustainability issues are defined,documented, communicated, periodically reviewed, understood and applied.

9. Effective leadership in sustainability management is a prerequisite for promotion.Measurable performance indicators are included in individual performance plans.

10. Employees are aware of expected behaviours and understand the consequences of

inappropriate conduct.11. Employees and contractors understand that working in an unsafe environment is not

tolerated and they immediately bring the issue to the attention of those at imminent riskand to their supervisor. Additional duties are provided until the work environment isdeemed safe to return.





LEGAL REQUIREMENTS AND COMMITMENTS

Intent

Describe the requirements to ensure that all relevant legal, regulatory and othercommitments regarding sustainability issues are identified, understood and complied with.

Performance

Systems are in place to identify and document relevant international, national, local and other

statutory requirements and agreements including voluntary commitments to initiatives forexample, Enduring Value and the International Cyanide Management Code.

Compliance registers of all relevant legal requirements, commitments and agreementsrelated to sustainability issues are developed in each Business Unit.

Annual reviews of these documents are conducted for any revisions or changes that mayimpact the business.

Where local legislation does not stipulate levels of performance related to sustainabilityissues, activities are conducted in accordance with the SustainabilityStandards, relevantinternational standards and practices and Enduring Value.

Systems are in place to ensure that sustainability related records are established and

maintained, accurate, legible, identifiable, securely stored and have established retentiontimes based on legal requirements.

Systems are in place to ensure that all Sustainability Management System documentation iscontrolled and current versions of relevant documentation is available and understandable tothe user as required.





PLANNING, OBJECTIVES AND TARGETS

Intent

Sustainability management is an essential component of business planning with objectivesand targets established to drive continual improvement in performance.

Performance

Systems are developed to include planning and management of identified key health, safety,

environmental, and socio-economic issues, risks and opportunities.Group-wide objectives and targets are set that are measurable, documented, communicatedand reviewed. The objectives and targets are consistent with the Sustainability Policy andconsider the interests of the stakeholders.

Business Units and Operations annually set measurable sustainability objectives and targetswhich are consistent with the group-wide targets, taking into account significant health,safety, environmental and socio-economic risks, legal and other requirements.

Business Units establish and document the objectives and targets to coincide with the annualplanning and budget cycle. The objectives are the improvement goals that address thepriorities of the Business Unit or Operation, and the targets are the dates for the achievementof the objectives. The objectives and targets include but are but not limited to the followingkey areas:

• Strategic business plans;

• Legal and other obligations, commitments and agreements;

• Policy and Sustainability Management System conformance planning;

• Significant issues, impacts and mitigation derived from the risk management process;

• Audits, assessments and technical reviews.

Objectives shall be set for a number of measures including both proactive ‘lead’ and reactive‘lag’ indicators.

Objectives and targets are established as the basis for developing operational improvementprograms and for inclusion in the business plan.

Overall Business Unit plans outlining objectives and targets are developed which in turn flowdown to sectional and individual achievement plans.

Objectives and targets are updated and communicated as changes, modifications or newdevelopments occur.





RISK AND CHANGE MANAGEMENT

Intent

Provide a commonStandard for the systematic and structured management of risks andopportunities in accordance with the requirements of the PanAust Sustainability Policy.

The implementation of an effective risk and change management strategy is central to thecontinued success and growth and commitment to good corporate governance.

Performance

Risk management is recognised as a driver of sustainable business and is included in allactivities in an effort to maximise opportunities and meet our overall business objectives inthe most effective way possible.

All existing, new or modified projects, processes, materials and equipment are evaluated andreviewed in order to minimise adverse impacts on communities, the environment, the healthand safety of our people and our facilities.

Risks and opportunities are assessed, prioritised and managed in accordance with thenature, scale and impacts of the operations and activities.

All project submissions incorporate risk assessments.

Business Units use risk analysis and risk management as tools for running the business,

including the preparation of business plans, management of internal projects, and theongoing management of operations & projects.

Risks are recorded and maintained in a risk register and reviewed by an appropriate levelwithin management at least annually.

All controls measures are developed using the hierarchy of control process.

Business units and operations adopt a consistent approach to the management of allbusiness risks and opportunities in accordance with the requirements of AS/NZS 4360 RiskManagement standard. Details of the risk management process are provided in the followingsections.

HAZARD AND RISK IDENTIFICATION

Processes are in place to identify existing and potential hazards and risks including:

• Formal ERM risk assessments;

• Change Management;

• Hazard Identification and Workplace Inspections;

• Incident investigations;

• Audits and Assessments;

• Job Safety Analysis

• Aspects & Impacts registers




RISK ASSESSMENT

As a minimum we employ qualitative risk assessment techniques utlising the PanAust RiskMatrices. This does not preclude the use of more specific or quantitative techniques should itbe deemed necessary.

Risk assessments are conducted for all existing, new or modified projects, processes,materials and equipment.

RISK TREATMENT

Formal risk treatment control plans are developed and implemented for all identifiedsignificant ranked risks.

Risk treatment controls are classified in accordance with the Hierarchy of Control1

criteria. Anumber of control options may be considered and applied either individually or incombination. When selecting a control, consideration is given as to whether any new orunintended hazards could be introduced due to the change.

MONITORING, AUDIT AND REVIEW

Once a risk has been assessed and control measures implemented, assessments of theeffectiveness of the risk treatment controls to verify that no new hazards have beenintroduced is required. This includes a range of management system tools includinginspections, monitoring, audits and reviews.

The frequency of assessing the effectiveness of the risk treatment control plan is based onthe risk ranking of the event, As a minimum identified significant ranked risks shall beformally reviewed by the management team on a six monthly basis.

Quarterly audits are undertaken for all significant ranked risks (by personnel other than thosedirectly responsible) to ensure the risk treatment control plan remains current and effective.

COMMUNICATION AND CONSULTATION

Communication and consultation are important considerations at each step of the riskmanagement process.

As a minimum, risk assessments include representation from those departments and

personnel that are likely to be exposed to the risk.

RISK REGISTER

All operating departments / business units develop and maintain a Risk and OpportunityRegister, which contains at least the following elements.

• Identification and description of the activity or aspect;

• A description of the unwanted event or impact;

• The range of credible potential consequence(s);

• Identification of existing risk mitigation controls (risk control hierarchy);

1Hierarchy of Control is explained in the definitions section at the end of this document




• The risk rank of the event once existing risk treatment controls in place have beenapplied ;The risk rank of the event once additional risk treatment controls have been

applied; (ie residual risk)In addition to the above, the risk register documents the following for all risks as consideredappropriate:

• Identification of additional risk treatment controls (from the risk control hierarchy) anddevelopment of an action plan;

• The person or position responsible for implementing and actioning the additional risktreatment controls;

• An action plan verification and completion date.

• Any out of budget costs associated with the treatment

TRAINING

All personnel are provided with basic hazard identification and risk management training,including periodic refresher training.

Personnel who facilitate risk assessments possess the relevant knowledge, training andexperience.

RECORDS

Risk assessments are documented, controlled and protected in accordance with theSustainability Management Element 2 – Legal Requirements and Commitments.

Change Management

Business units and operation unit implement a formal Change Management process for allnew projects, infrastructure or equipment modifications, contractual and organisationalchanges, that addresses OH&S, environmental, community, human resource, financial andlegal requirements.

The change management process includes the following:

Change Request - a formal change request which is sufficiently developed and endorsed bythe project owner or department manager. A register is maintained and updated to track and

record all change requests.

• Assessment and Review - each change request is subjected to a formal review. Thelevel of review required shall be based on the risk ranking of the change(s).

• Change Request Approval – all change requests are approved before the change canproceed. The level of approval for implementation of the change request is risk based.As a minimum, approval and sign off is required by the appointed project or departmentmanager.

• Implementation and Completion Review - the level of detail of implementation planningreflects the complexity and nature of the change. A review of the change involving theappropriate personnel takes place upon completion to ensure the scope of the change

request has been implemented and all actions are completed. This includesappropriate changes and revisions to the operations risk registers, asbuilt infrastructure




drawings, standard operating procedures, monitoring programs, emergency responseplans and training programs, etc.

PURCHASING CONTROLS

Business units and operations implement a formal change management process to reviewand approve all acquisitions of equipment, materials, chemicals and other materials withpotential sustainability, financial and legal impacts prior to their purchase. This review isconducted by personnel with appropriate knowledge. A register is maintained whichdocuments purchase reviews and approvals.

Vendors provide specific information for their equipment prior to purchase and use. Thisinformation may be in the form of operating manuals, SOPs, work instructions, MaterialSafety Data Sheets (MSDS), etc.





HEALTH AND HYGIENE

Intent

Fitness of employees and contractors to work is assessed and they are protected from healthhazards related to their work environment. The health and wellbeing of employees issupported by communications, promotions and programs and community health issuesrelevant to Company operations are identified and effectively managed.

Performance

Occupational health and hygiene assessments and ongoing monitoring programs consistentwith exposure risks are conducted for all occupations, tasks and work environments bysuitably qualified people.

Where specified by legislation, the health of employees and contractors exposed to specifichazards is monitored and recorded. Employees shall have access to their own individualresults.

All incidents of occupational illness or disease are recorded and health surveillanceprograms analysed and controlled in accordance with the hierarchy of control2. This includesmonitoring and evaluating the physical work environment, employees and contractorsexposure, and health surveillance.

Where the application of the hierarchy of control has not adequately reduced risk, employees

and contractors are informed of the requirements to use personal protective equipment andare trained in the correct identification, use and maintenance of the personal protectiveequipment. Compliance with and the effectiveness of personal protective equipmentrequirements are regularly assessed.

Employees and contractors have access to medical and first aid services as appropriate tothe location and nature of operations.

Employees and contractors undergo health assessments, including drug and alcohol andfatigue management programs where appropriate, to ensure their fitness for work.

Processes are in place for the rehabilitation of employees and contractors following work-related injury or illness.

Health and wellbeing information is communicated and promoted throughout theorganisation.

Health and wellbeing programs are implemented to support and encourage employees toimprove and maintain their personal wellbeing.

Effective identification and management of risks to personnel and accompanying dependentsfrom work-related travel or assignment in other locations or countries is conducted.

2Hierarchy of Control is explained in the definitions section at the end of this document




SUSTAINABILITYFRAMEWORK ELEMENT – No. 6

ENVIRONMENTAL MANAGEMENT

Intent

To minimise environmental impacts and disturbances associated with PanAust projects,operations and office environment activities.

Performance

Initiatives are identified and implemented to use materials and natural resources efficiently.

Initiatives to reduce the environmental impact of operations and programs are implemented

to protect, manage and, where appropriate, enhance biodiversity values.

The application of risk management processes, such as sustainability management plans,water management plans, risk registers, job hazard analysis and other related processes,are used to document the management of environmental impact and disturbance.

Relevant stakeholders, including employees, contractors and where appropriate customers,participate in the assessments of risk related to environmental management.

Assessments on existing and new products and services for their potential to provideenvironmental benefits or cause adverse environmental impacts are conducted.

Wastes are eliminated, reduced, reused, recycled, treated or properly disposed of. Recordsare kept to ensure that wastes can be tracked from source to disposal, and waste receiving

facilities are audited to ensure conformance to appropriate waste standards.

Advice is made available to employees, contractors, customers and the community regardingthe possible safety and environmental impacts associated with the production, transport,storage, use, recycling and disposal of our products.

Environmental management objectives are established and reviewed at least annually forcontinuing suitability.

Environmental management performance is reviewed to identify opportunities forimprovement.

Systems have been developed and implemented to respond to queries from externalstakeholders, including customers, legislative authorities and industry, with regards to ourenvironmental management programs.

Closure plans are established, costed, documented and reviewed. Consideration is given tohow these plans translate into operational decisions.





COMMUNITY, SOCIAL AND HUMAN RIGHTS

Intent

Activities and operations are conducted in a manner that is socially responsible, supportive offundamental human rights, traditional rights and values, and respectful of cultural heritage.

Performance Requirements

Systems are in place to ensure that all employees and contractors are familiar with thePanAust Code of Conduct and abide by the requirements.

Uphold fundamental human rights and respect indigenous cultures, customs and values oflocal communities, employees and others who are affected by our activities.

Fair remuneration and work conditions for all employees and forced or child labour is notused.

Provide for the constructive engagement of employees on matters of mutual concern.

Policies and practices are designed to eliminate harassment and unfair discrimination in allaspects of our activities.

All relevant staff, including security personnel, are provided with appropriate cultural andhuman rights training and guidance.

Minimise involuntary resettlement, and compensate fairly for adverse effects on thecommunity where they cannot be avoided.

Contribute to the social, economic and institutional development of the communities in whichwe operate.

At the earliest practical stage, engage with likely affected parties with regards to themanagement of potential social impacts and resolution of issues.

Appropriate systems are in place for ongoing interaction with affected parties, making surethat minorities and other marginalised groups have equitable and culturally appropriatemeans of engagement.

Contribute to community development from project development through closure in

collaboration with host communities and their representatives.Encourage partnerships with governments and non-governmental organisations to ensurethat programs (such as community health, education, local business development) are welldesigned and effectively delivered.

Seek opportunity to enhance social and economic development.





STAKEHOLDER ENGAGEMENT

Intent

To ensure PanAust identify and engage all its stakeholders, both internal and external, in anopen and transparent manner to ensure dialogue on issues pertaining to sustainability. Theoutcomes of sustainability activities undertaken by PanAust will be communicated to thesestakeholders through appropriate consultative mechanisms.


Establish clear guidance to identify those individuals, groups, organizations, communitiesand jurisdictions, both within the Company and external to the Company that are eitherconcerned with, or affected by, or perceived to be affected by the decisions or activities ofthe Company and those so identified shall constitute the stakeholders with whom PanAustwill seek to interact to ensure transparent engagement.

Designate suitably trained, knowledgeable and accountable individuals from within theCompany to lead all stakeholder engagements.

There shall be regular engagement with stakeholders and these interactions shall provideopportunity for stakeholders to express their concerns and aspirations that relate toPanAust`s presence in their communities. A record shall be maintained of those interactionsthat affect PanAust’s management of sustainability. Summaries of these interactions shall

be provided on a periodic basis to the Sustainability Sub-CommitteeManagers shall ensure that decisions regarding sustainability are communicated to internaland external stakeholders in a transparent fashion through appropriate consultationmechanisms that also include appropriate conflict resolution processes.

Effective communication channels shall be in place to ensure that all employees are aware ofthe sustainability requirements at each operation, any changes that are made to theserequirements and information on sustainability performance, risks and other related matters.

Engage stakeholders in an appropriate manner, to ensure transparent disclosure ofsustainability matters that may concern these stakeholders, including information onresources and releases associated with the operations and their lifecycle management.

Engage relevant governments, authorities, industry and civil society to jointly improve anddevelop sustainability policy, legislation and guidance, and to foster a better understanding ofsustainable development practices for the resource extraction sector.





TRAINING AND COMPETENCY

Intent

Employees, contractors and visitors are aware of relevant sustainability requirements, risksand control measures, behave in a responsible manner and are competent to conduct theiractivities.


Inductions that address the Sustainability Policy, management system, sustainability

objectives, hazards, risks and control measures are conducted and documented foremployees, contractors and visitors at the commencement of their employment or visit.

Sustainability competencies are identified, documented and periodically reviewed.

Recruitment criteria for employees and contractors include an assessment of sustainabilitycompetencies, behaviours and performance.

Processes are in place to identify, plan, document, prioritise and monitor the fulfilment oftraining needs so that managers, employees and contractors are competent to meet theirsustainability responsibilities.

Employees and contractors receive training and development in the identification,assessment and control of hazards, at risk-behaviours and situations, including the

consequences of departure from specified work practices.Cross-cultural training for employees and contractors who interact with people from differentcultures.





COMMUNICATION, CONSULTATION AND PARTICIPATION

Intent

Effective communication and consultation is established and maintained with all stakeholdersassociated with Company activities. Sustainability management is enhanced throughstakeholders’ contributions.


The Sustainability Policy, Management Standards and relevant information on sustainability

matters, risks, plans and performance are communicated throughout the organization to allpersons working for or on behalf of PanAust, and to external stakeholders.

Business Units and Operations communicate with personnel and contractors, requiring themto understand and be aware of the following as a minimum:

• Sustainability Policy

• Responsibilities, legal and other obligations under the Sustainability ManagementSystem

• Code of conduct, employee relations and expected behaviours at work

• Emergency response and crisis management

• Hazards and risks associated with the work activities

• Objectives and targets related to sustainability performance

• Relevant standard operating procedures for the area

• Statistical data, trends, corrective actions, and detailed information of significant andunacceptable risks for all events/occurrences.

Personnel and contractors are given the opportunity for feedback and participation inprocesses that impact on their areas of responsibility, and those of others, including but notlimited to the following:

• Management, department and section meetings

• Committees and working groups

• Participation in risk assessments and reviews for work areas and the developmentand implementation of operational controls

• Incident investigations

• Routine meetings with personnel to address issues, such as tool box meetings

• Suggestion systems, periodic surveys and notice boards

• Development and review of standards, procedures, job safety analysis includingequipment selection and use

•Participation in inspections, audits and reviews




• Identify and then engage with personnel that may be directly impacted by thechange/activity prior to any new or modified activity being undertaken

• Identify relevant personnel who need to be involved in pre-planning or implementationprocess for any new or modified activity.

Business Unit and Operations have a formal process for internal reporting of the following:

• Employee issues and opportunities to manage these issues (including contractors)

• Accident/incident investigation information and relevant data (including Safety Alerts)

• Objectives, targets and improvement plans and progress towards these

• Inspections, review and audits

• Minutes of meetings including any action items and responsibilities

• Other issues relevant to employees and contractors.

Concerns, complaints and relevant external communications related to sustainability mattersof our operations are registered, investigated and outcomes reported to relevantstakeholders. Processes are in place to resolve conflicts should they arise, throughconsultation with and participation of stakeholders or their appointees.

Annual reports addressing our performance on sustainability initiatives and risks areprepared in accordance with the Global Reporting Initiative (GRI) and consideration is givento the local, social and cultural factors, in preparing and distributing the reports tostakeholders.

Plans are in place to review communication, consultation and participation processes.





SUPPLIERS AND CONTRACTORS

Intent

The hire, lease or purchase of equipment and materials, contractors tendering for work, andactivities with suppliers is carried out to minimise any adverse health, safety, environmentand social consequences and, where possible, to improve community developmentopportunities.


Suppliers and contractors are subject to risk-based evaluation prior to contractualarrangements being established, taking into account the nature of their products, activities orservices and previous sustainability related performance.

Contracts include obligations specifically requiring contractors to implement systems thataddress this SustainabilityStandardSTANDARD, the management of sustainability risks andcompliance with relevant legislation and the consequences of non-compliance are stipulated.

Identified suppliers of goods and services are encouraged to establish and maintain systemsconsistent with this SustainabilityStandards.

Reporting relationships, lines of communication, responsibilities and accountabilities forsustainability are established and documented between suppliers, contractors and PanAust.

Processes are in place that ensure the performance of suppliers and contractors and theircompliance with the sustainability related obligations specified in their contracts, aremonitored and reported.

Prior to purchase, hire or lease, the specifications of equipment or materials that havepotential sustainability impacts, are reviewed and documented to verify suitability for theintended use and to prevent the introduction of significant risks.

Suppliers and contractors provide information on the hazards associated with theirequipment, products and service, prior to delivery or commencement of works and wheneverchanges occur.

Consideration is given to creating business opportunities for local suppliers and contractors,and supporting their ability to fulfil the requirements of this SustainabilityStandards.





INCIDENT REPORTING AND MANAGEMENT

Intent

Incidents, including near hits and nonconformances, are reported, investigated and analysed.Corrective and preventive actions are identified, implemented within a timely manner andlearnings shared.


Systems are in place for the timely reporting, investigation, mitigation and appropriate

communication of all incidents, near hits and nonconformances.The reporting of near hits is promoted as a desired behaviour.

The identification and documentation of all the factors and root causes that contributed to theincident, the controls that were intended to prevent it and analysis of any failures in thecontrols are part of the investigation processes.

Corrective and preventive actions, aimed at eliminating or reducing the risk and recurrence ofincidents and near misses are identified and prioritised as part of the incident investigation.These actions, including changes in procedures, are documented, communicated,implemented and the effectiveness reviewed.

Assessments are conducted to determine the risk of recurrence after all incidents. In the

event of a significant incident, systems ensure that associated work does not resume untilactions have been taken to reduce the risk of recurrence, and authorisation is given at theappropriate level.

Determination of the timing for the management and reporting of incidents is based as muchupon the ‘potential’ as the ‘actual’ outcomes.

Learnings from the incident investigation are communicated to other relevant areas ofPanAust.

Records of incidents shall remain legible, identifiable and traceable.





CRISIS AND EMERGENCY

Intent

Projects, Operations and office environments have documented processes and resources toeffectively respond to all potential crisis and emergency situations.


All potential emergency situations and their likely impacts are identified including thoseassociated with neighbouring activities.

Crisis / Emergency Response Plans that outline the management of all identified potentialemergency situations are developed, documented, accessible, communicated and reviewed.

Roles and responsibilities are defined for the identified response roles and are included inthe response plans.

Employees, contractors, visitors and external stakeholders as appropriate are trained in andunderstand the emergency response plan, including their roles and responsibilities.

Resources, including response equipment and warning devices are available, maintainedand tested.

Crisis / Emergency response exercises are scheduled and conducted on a regular basis.

Emergency Response Plans are revised to incorporate learnings from emergency responseexercises and incidents.

Emergency contacts and evacuation details are located in all work areas, including on thenoticeboards and intranet.





MONITORING, AUDIT AND REVIEW

Intent

Our Sustainability Management Standards and site Performance Standards and Proceduresare monitored, audited and reviewed on a regular basis to measure progress, assesscompliance and conformance, identify trends and where necessary establish and implementimprovement opportunities.


Our performance on sustainability issues are regularly measured, monitored, analysed,recorded and reported to stakeholders as appropriate.

All site operations and other work environments conduct safety and environment workplaceinspections at frequencies consistent with the level of risk. Improvement opportunitiesidentified through these inspections are established, communicated, implemented andreviewed.

Annual internal peer assessments against the sites implementation of the SustainabilityManagement Standards and procedures are conducted at each location. These internalreviews establish the extent of compliance with the Sustainability Management Standards.Performance gaps (based on risk exposures) are assessed and corrective actionsimplemented.

Independent audits of Sustainability Management System implementation are conductedannually for nominated locations by Corporate to verify the extent of compliance with theSustainability Management Standards. Auditors will be independent of the site being audited.Every three years the auditors will be independent of PanAust. The audit identifiesimprovement opportunities and non-conformances.

A management review is conducted annually to determine that the SustainabilityManagement System and other programs address the business risk across the site andmore broadly across the PanAust Group. These review identify opportunities forimprovement.

The Sustainability Policy and Sustainability Management Standards are reviewed annuallyas part of the management review.




DEFINITIONS

Business Unit – A mine site, regional exploration site, major project development site thathas a level of independence from any other peer operational entity. (Phu Kham, PonsavanExploration Project)

Change Management – A formal process of risk assessment prior to the introduction ofchange in a procedure, process and/or a change of material, or equipment.

Continuous Improvement – Recurring process of enhancing the management system inorder to achieve improvements in overall sustainability performance consistent with theSustainability Policy.

Crisis – A condition of instability or danger, as in safety, environment, business, social,economic or political that if left unattended, can effect significantly the company’s reputationand ability to conduct business normally.

Emergency – A serious, unexpected and potentially dangerous situation requiring immediateaction.

Global Reporting Initiative – A trusted and credibleframework for sustainability reportingthat can be used by organizations of any size, sector, or location.

Hazard - A source or a situation with a potential for harm in terms of human injury or illhealth, damage to property, damage to the environment, or a combination of these (AS/NZS

4804).

Hierarchy of Control – Ranking of risk control methods in a hierarchy from most to leastpreferred (see Table 1. below).

Table 1

Elimination Eliminate the hazard from the workplace. This is the best and preferredoption if available

Substitution Substitute material or process for something less hazardousIsolation Use of barriers or shields to isolate the hazard

Engineering Controls Design and installation of equipment to counteract the hazardAdministrative Controls Arranging of work schedules to reduce exposure to the hazard

Personal Protective Equipment The wearing of personal protective equipment. This is the least

preferred option and is used only as a last resort

Job Safety Analysis – A system of identifying and managing any hazard that may beencountered during the performance of a task.

Near Hit – a narrowly avoided incident or injury.

Non-conformance – Any deviation from relevant work standards, practices, procedures, andlegal requirements etc.

Plan-Do-Check-Act – (PanAust model is Plan-Do-Review-Change)

• Plan: establish the objectives and processes necessary to deliver results• Do: implement the processes



• Check: monitor and measure processes against policies, objectives, targets, legaland other requirements, and report the results

• Act: take actions to continually improve performance of the management system.

Risk – The chance of something happening that will have an impact upon objectives.

Risk Assessment – Process of evaluating the risks arising from a hazard, taking intoaccount the adequacy of any existing controls, and deciding whether or not the risk isacceptable.

Risk Management – The culture, processes and structures that are directed towardsrealizing potential opportunities whilst managing adverse effects.

Stakeholder – A person or group that has an investment, share, or interest in the company.It may include shareholders, directors, management, suppliers, governments, employees,and the community.

Sustainability – All health, safety, environment and social components of our operationsand management systems. Specific human resources related areas included in this definitionare: leadership, training, equal opportunity and harassment.

Tool Box Meeting – A regular meeting held between the work group supervisor and thework group where sustainability issues form part of the overall discussion.

Zero Harm – see inside front cover.

(a) PanAust Sustainability Management Standards

Documents

Transcript of (a) PanAust Sustainability Management Standards