Coral Bay Nickel CorporationSAFETY AND HEALTH PROGRAM

Document Title

001/1/2010GED - 3001118 of 119

Rev. No.Start DateDocument No.Page

Coral Bay Nickel Corporation

SAFETY AND HEALTH PROGRAM

Document Title

001/1/2011GED -30011 of 117

Rev No.Start DateDoc No.Page

REVISION HISTORY

Ref. No.Doc. Rev. No.Page No. AffectedOriginatorDate Details of Changes

N/A00N/ANB Sadongdong12/12/2010originate

IMPORTANT:THIS COVER SHEET FORM IS PART OF THE FOLLOWING DOC SHEETS AND IS NOT TO BE DISCARDED UNLESS SUPERCEDED BY A REVISED ISSUE. UNAUTHORIZED REPRODUCTION IS STRICTLY PROHIBITED.

NameDepartmentDate

Originator :

Nelson B. Sadongdong

Safety

Checked by :

Erwin S. Deonaldo

Safety

Approved by :

Koji Sakamoto

Plant Manager

NOTE : USE BLACK PEN FOR SIGNING

TABLE OF CONTENTS

LETTER TO MGB REVISION/APPROVAL SHEET1TABLE OF CONTENTS2APPENDICES4LIST OF FIGURES4LIST OF TABLES5

1INTRODUCTION.61.1GENERAL INFORMATION.61.2ORGANIZATIONAL STRUCTURES.71.3NATURE OF THE PROJECT.92GENERAL PROCESS DESCRIPTION.92.1PROCESS OPERATION.92.1.1ORE PREPARATION 2.1.2HIGH PRESSURE ACID LEACH 2.1.3PRE NEUTRALIZATION AND COUNTER CURRENT DECANTATION (CCD) 2.1.4NEUTRALIZATION 2.1.5DE ZINC 2.1.6SULFURIZATION 2.1.7FINAL NEUTRALIZATION 2.2SERVICE FACILITIES.122.2.1HYDROGEN SULFIDE PLANT 2.2.2CHEMICAL PREPARATION 2.2.3POWER SUPPLY 2.2.4WATER SUPPLY 2.3TAILINGS DISPOSAL.152.3.1TAILINGS DAM 2.3.2SUPERNATANT 2.3.3CAUSEWAY AND TRESTLE

2008 SAFETY & HEALTH PROGRAM3LEADERSHIP AND ADMINISTRATION.173.1. CBNC SAFETY POLICY STATEMENT .173.2SAFETY AND HEALTH STANDARDS.183.3SAFETY PERSONNEL.183.3.1SAFETY SECTION ORGANIZATION 3.4SAFETY BOARDS AND SIGNS.193.4.1SAFETY POLICY 3.4.2SAFETY STATISTICS 4ORGANIZATIONAL RULES AND PROCEDURES.224.1ESTABLISHMENT OF SAFETY AND HEALTH RULES.224.2SAFETY AND HEALTH MANUAL.224.3SAFETY SIGNS.234.4RESTRICTED AREAS.244.5SAFETY CARDS PRACTICES.254.5.1KY CARD 4.5.2HHK CARD 4.5.34RKY 4.5.3 Unusual Work KY 5MEETINGS.31

5.1CENTRAL SAFETY AND HEALTH COMMITTEE (CSHC) MEETING.325.2CONTRACTORS SAFETY COMMITTEE MEETING.335.3SAFETY AUDIT COMMITTEE MEETING.345.4SECRETARIAT MEETING.34 5.5DEPARTMENTAL MEETING.355.6PEP TALK/TURN OVER MEETING.355.7SEMI ANNUAL SAFETY REVIEW.355.8SAFETY COORDINATION MEETING.35

6PLANNED INSPECTIONS.366.1WALK THRU INSPECTION.366.1.1CONTRACTORS SAFETY COMMITTEE 6.1.2SAFETY AUDIT COMMITTEE 6.2RADIATION MONITORING.386.3SAFETY INSPECTION TEAM MONITORING.386.3.1FIRE EXTINGUISHER INSPECTION 6.3.2FIRE HYDRANT 6.3.3HOIST AND CRANE SLING AND WIRE ROPE 6.3.4CONVEYOR PULL CORDS FUNCTION TEST 6.3.5MOTOR CENTRAL CONTROL (MCC) INSPECTION 6.3.6SCABA INSPECTION 6.3.7AIRLINE MASK INSPECTION 6.3.8FIRST AID KIT INSPECTION 6.3.9PIER SITE INSPECTION 6.3.10TAILINGS DAM INSPECTION 6.3.11INTAKE DAM 6.3.12FIRE TRUCK INSPECTION 6.3.13EMERGENCY VEHICLE INSPECTION 6.3.14WEEKLY INSPECTION 6.3.15DAILY INSPECTION 7SAFETY TRAINING..457.1SAFETY ORIENTATION..457.1.1FOR NEWLY HIRED CBNC EMPLOYEES 7.1.2FOR CONTRACTORS 7.1.3FOR VISITORS 7.2SAFETY CARDS..46

8PERSONNEL SAFETY DEVELOPMENT..478.1SAFETY TRAININGS..478.1.1SAFETY CONVENTIONS 8.1.2FIRST AID TRAINING COURSES 8.1.3RADIATION SAFETY 8.1.4FIRE FIGHTING TRAINING 8.1.5DEFENSIVE DRIVING 8.1.6SAFETY PROFIENCY TEST/ KNOWLEDGE TEST8.1.7MOBILE AND LIFTING EQUIPMENT SAFETY TRAINING 9ACCIDENT/INCIDENT ANALYSIS..499.1ACCIDENT REPORTING..499.1.1PRODUCTION 9.1.2UTILITY 9.1.3MAINTENANCE 9.1.4LABORATORY 9.1.5MANNJ/DCR-PRODUCTION 9.1.6MANNJ/DCR-UTILITY 9.1.7RTNMC-ORE PREPARATION 9.1.8JGC-MAINTENANCE 9.1.9INDIGENOUS PEOPLE (AT GEN. AFFAIRS 9.1.10LOGISTICS (AT PIER SITE) 9.1.11RTNMC PIER 9.1.12INDIGENOUS PEOPLE TAGDALONGON (AT PIER SITE) 9.2INVESTIGATING BODY..559.2.1DIRECT SUPERIOR/DEPARTMENT 9.2.2SAFETY SECTION 9.2.3POLICE 9.2.4MGB 9.3REPORT FORMAT..569.3.1SUPERVISORS REPORT 9.3.2MGB REPORT 9.4ACCIDENT DISCUSSION..579.5REMEDIAL ACTIONS..58

10HEALTH CONTROL AND SERVICES..5810.1PRE EMPLOYMENT PHYSICAL EXAMINATION.5910.2ANNUAL MEDICAL EXAMINATION..5910.3RETURN TO WORK MEDICAL EXAMINATION59 10.4DRUG-FREE WORKPLACE PROGRAM..6010.5MONITORING OF WORKING ENVIRONMENT..6010.6MALARIA ERADICATION..60

11EMERGENCY PREPAREDNESS PROGRAM..6012PERSONAL PROTECTIVE EQUIPMENT..6013SAFETY AND HEALTH INCENTIVES..6114SAFETY PROMOTIONS..6114.1SAFETY CIRCULAR..6114.24RKY COMPETITION..6214.3POSTER AND SIGN BOARDS..6214.4SAFETY SLOGAN MAKING CONTEST..6215COMMUNITY CONSULTATION..6316TARGETS AND BUDGETS..63APPROVALS..64APPENDICES..65

APPENDICES

APPENDIX 1 SAFETY ENGINEERS/INSPECTORS MGB PERMIT.66APPENDIX 2 SAFETY POLICY STATEMENT..72APPENDIX 3 SAFETY STATISTICS BOARD..73APPENDIX 4 PLANT SITE RESTRICTED AREAS LAYOUT..74APPENDIX 5 COMMON SAFETY SIGNS..75APPENDIX 6 SAFETY CARDS..79APPENDIX 7 4RKY SHEET..86APPENDIX 8 4RKY MAKING PROCEDURE..87APPENDIX 9 4RKY EXAMPLE..88APPENDIX 10 4RKY PRESENTATION PROCEDURE..90APPENDIX 11 4RKY COMPETITION GUIDELINES..90

APPENDIX 12 SAFETY MANAGEMENT TARGET AND ACCOMPLISHMENT REPORTING FORMAT (CSHC)..91APPENDIX 13CONTRACTORS SAFETY MANAGEMENT REPORT FORMAT..92APPENDIX 14 RADIATION MONITORING SHEET..93APPENDIX 15 FIRE EXTINGUISHER MONITORING SHEET..94APPENDIX 16 FIRE HYDRANT INSPECTION CHECKLIST..95APPENDIX 17 SLINGS AND WIRE ROPES INSPECTION SHEET97APPENDIX 18 PULL CORD FUNCTION TEST SHEET..98APPENDIX 19 MCC INSPECTION CHECKLIST..99APPENDIX 20 SCABA MONITORING SHEET..100APPENDIX 21 FIRST AID KIT CHECKLIST..101APPENDIX 22 EMERGENCY VEHICLE INSPECTION CHECKLIST.102APPENDIX 23 SPINE BOARD INSPECTION CHECKLIST..103APPENDIX 24 SUBSTANDARD CONDITION REPORT..102APPENDIX 25 ACCIDENT REPORTING..104APPENDIX 26 REPORTING FORMAT..112APPENDIX 27 ACCIDENT INVESTIGATION FORMAT..113APPENDIX 28 MGB ACCIDENT REPORT FORMAT..114APPENDIX 29 SAFETY AND HEALTH TARGETS AND BUDGETS.....117

LIST OF FIGURES

FIGURE 1 ORGANIZATIONAL CHART..8FIGURE 2 FLOW SHEET..10FIGURE 3 SAFETY SECTION ORGANIZATION..18FIGURE 4 SAFETY POLICY BOARD..20FIGURE 5 SAFETY STATISTICS BOARD..21FIGURE 6 SAFETY SIGNS..23FIGURE 7 RESTRICTED AREA SAFETY SIGN..24FIGURE 8 KY CARD..26FIGURE 9 HHK EXAMPLE..28FIGURE 10 FIRE EXTINGUISHER TAG...38FIGURE 11 KY CARD FORM..74FIGURE 12 KY CARD: THE PROPER WAY OF EXPRESSING THE POTENTIAL HAZARDS..75FIGURE 13 KY CARD: THE USUAL PRACTICE..75FIGURE 14 HHK FORM..76FIGURE 15 HHK EXAMPLE 1..77FIGURE 16 HHK EXAMPLE 2..77FIGURE 17 UNUSUAL WORK KY SHEET ..79FIGURE 18 EXAMPLE OF UNUSUAL KY SHEET..80

LIST OF TABLES

TABLE 1 SLING AND WIRE ROPE INSPECTION COLOR CODE39

INTRODUCTIONCBNC Safety and health programs have been made to organize the plans and to initiate the implementation of this program. Employer commitment and meaningful employee participation and involvement in safety and health are a key ingredient in effective programs. The raw material that we process is a low-grade limonite ore averaging 1.26% nickel and 0.09% cobalt, enough to maintain production at the nameplate capacity for 20 years. The intermediate product is shipped to Niihama Nickel Refinery of SMM in Japan and is further refined to electrolytic nickel and cobalt, respectively by the proven Sumitomo technology.The objective of the ore preparation process is to prepare the ore feed slurry for acid leaching. The ore is washed and screened to come up a particle size of Pre-Neutralization circuit neutralizes excess free acid of HPAL discharge slurry, which is yielded by hydrolysis. This minimizes neutralized residue treated in the neutralization circuit. Excess free acid is neutralized with limestone slurry. The reaction is carried out for 45 minutes at about 100 C with a pH of 0.7.Pregnant liquor from the CCD circuit is neutralized with limestone to hydrolyze and precipitate the dissolved metals such as iron, aluminum, and chromium as hydrated oxides and basic sulfates. The resulting mixture of gypsum (CaSO4) and metal hydroxides, which is referred to as sludge, is separated from the nickel-rich liquor in the thickener with the aid of flocculant. Thickener underflow which contains the impurities and some adhered nickel and cobalt is recycled back to the CCD circuit for nickel and cobalt recovery while the overflow proceeds to the next refining stage, the zinc removal circuit.DE ZINC

SULFURIZATIONWaste liquids and slurries are treated in this circuit before sending them to the tailings dam. CCD residue, excess barren liquor from Sulfurization circuit, and waste water from neutralization pond of Utilities Area are the main wastes that are treated in final neutralization circuit. This circuit aims to precipitate the heavy metals such as manganese, iron and chromium. The reaction is carried out in the series of four reaction tanks by the addition of limestone and slaked lime slurries to maintain the final pH of 8.0. The neutralized and final slurry is sent to tailings dam via Geho pumps.Hydrogen sulfide gases are produced by the reaction of hydrogen and sulfur both in the gaseous states. Hydrogen gas is generated from the vaporized methanol which is reacted with water with the aid of a catalyst. Hydrogen gas is purified through Pressure Swing Absorption (PSA) unit. In the Chemical Preparation section, there are four reagents that are being made namely: limestone slurry, slaked lime slurry, flocculant solution, and caustic soda solution.Limestone is used as alkaline reagent for Pre- NTRL to neutralize excess free acid which is yielded by hydrolysis and present in the Autoclave slurry discharge and for Neutralization to complete the hydrolysis and precipitation of Ferric iron, Aluminum and chromic chromium as hydroxides and other basic sulfates.Flocculant is prepared via hopper and is driven by a screw feeder to draw the flocculant powder at a constant rate. The powder enters the Jet Wet dispenser/ mixing head where it passes through a spray pattern produced by a series of water spray nozzles so that every particle is wetted by the sprays to avoid the formation of fish eyes. The sprayed powder is agitated at a certain amount of time enough to homogenize the solution and not to break the polymer chains. The flocculant is made of 0.3 wt% concentration.Caustic Soda solution is prepared at 25% concentration strength.

POWER SUPPLYA 3 MW emergency diesel power is also available in case of outages.WATER SUPPLY

TAILINGS DISPOSAL

TAILINGS DAMTailings Dam 1 is now in undergoing rehabilitation. Tailings Dam 2 which commenced its operation in June 2010 is situated at the northwest side of the previous facility, with an estimated capacity of 35 million cubic meters.SUPERNATANT LINEA 380-meter long causeway is constructed southwest of Nagoya Beach. This is designed with culvert pipes at 30-meter intervals to allow the cross flow of tidal currents. The causeway is connected to a 900-meter long southwest trending trestle, mounted on the steel piles. The trestle supports the 250mm diameter stainless pipeline for sulfuric acid, 200mm diameter carbon steel pipeline for methanol, and 250mm diameter carbon steel pipeline for effluent discharge. The trestle is 4.5 meters high from the sea level and is 2.7 meters wide.

Coral Bay Nickel CorporationSAFETY AND HEALTH PROGRAM

Document Title

001/1/2011GED - 30019 of 117

Rev. No.Start DateDocument No.Page

________________________________________________________________________________

Printed versions are UNCONTROLLED except when stamped CONTROLLED COPY in blue

2011 SAFETY & HEALTH PROGRAM

LEADERSHIP AND ADMINISTRATIONCBNCS ENVIRONMENTAL AND SAFETY POLICY STATEMENT

SAFETY AND HEALTH STANDARDThe companys basis for establishing safety and health standards are DAO 2000-98 (Mine Safety and Health Standards) and RA 7942 (Philippine Mining Act of 1995). The safety rules and regulations and standard operating procedures of the company are based mainly from this standard. SAFETY PERSONNEL

SAFETY SECTION ORGANIZATIONThe company environmental and safety and quality policy statements has been posted in the steel board of 5 meter wide and 4 meter high. The policy board is situated at Main Avenue Southside of the General Building so that everyone has to read it when passing by. Each building in the plant had been provided also with a copy of the policy to ensure awareness of all employees (see Figure 4).Further, the posting of this policy is intended to all workers and visitors to remind everyone that safety to our works and us has been practiced at its maximum level.SAFETY STATISTICSSafety statistics board is designed in a plain white background to enhance the statistics data as seen in Figure 5 below. Please see the detailed safety statistics data reflected in the board in Appendix 3.

Figure 5 Safety Statistics Board

ORGANIZATIONAL RULES AND PROCEDURES

ESTABLISHMENT OF SAFETY AND HEALTH RULESSafety and Health Manual was established in the late half of 2004. It was a collaboration of all rules and procedures established in all areas. Rules and procedures were drafted by the supervisors and foremen from the respective departments. These were submitted to the Central Health and Safety Committee for the discussion. Upon the approval of the committee, these rules and procedures were finalized and came up with a handbook, the Safety and Health Manual.Safety and Health Manual covers the subjects of the plant operations, electrical and mechanical rules, traffic safety rules, plant site visitors, canteen rules and regulation, workshop and warehouse safety, laboratory safety, tagging and isolation procedure, gate control policy among others.In all critical areas, safety signs are legibly displayed in most pertinent locations. Safety signs are designed in a standards size of 18 x 30 inches dimension. They are made in both English and Filipino versions, examples are shown in Figure 6 below.

Figure 6 Safety Signs

Safety signs are usually posted to remind the workers in their respective areas the hazards that can possibly harm them. These can also set the minds of the workers to be ready in for appropriate actions in case a potential accident will happen, where the safety signs are addressed to.The plant site has various restricted areas. Delineating restricted areas are meant to prohibit the entry of the unauthorized personnel in a specified area. Restricted areas are usually indicated with a safety sign at the entrance of the area.

There are three major areas in the plant site that are considered restricted areas namely: HPAL (02 and 202 areas), MS (05, 205,06 and 206 areas), and H2S Plants. Aside from these areas, areas where radioactive devices and instruments are installed are also considered restricted areas. See Appendix 4 for restricted areas layout.KY Card is made before going to working places or before starting to work. By doing this card, potential hazards in the work places are studied carefully and countermeasures are also geared up. Example of this card is showed in Figure 8 below.

Figure 8 KY CardAll employees are required to make this card before the start of the shift activities. The making of this card will take only about 5 to 10 minutes within the first hour of the shift. The card will be collected and reviewed by the Department Manager or the supervisors. The most critical KY Cards will be discussed among crews led by the supervisor. By doing this, employees ability in identifying potential hazards and setting countermeasures will keep on developing.HHK Card is derived from the Japanese words Hiyari Hatto Kigakari, which means a Near miss Accident Report Card. This card is intended for reporting incidents encountered on the job and activities that will help improve those facilities, or call other workers operating at the same level attention to those incidents thus assuring occupational safety.The most critical HHK is discussed during turnover meetings so that everyone must be aware of the near misses and effective countermeasures must be applied immediately to avoid recurrence.

Before this activity will start, a picture of the unsafe practices must be taken for thorough investigation. This activity will be done in a group consisting of five to seven members. The group will have to nominate themselves the leader, presenter, and scribe, and the rest will be the members.After the form is completed, the group will have to present their work according to the 4RKY Presentation Procedure found in Appendix 10.This potential hazard analysis is made when a production or maintenance activity is believed to have the most critical identified potential hazard or an activity generates a near miss accident. The activity will not be pursued upon the evaluation of the supervisor that the activity must be at its

4RKY competition will also be made during the scheduled major shutdown. Normally, the competition will be made on April and November every year. It will be participated by all departments that involve in the direct operation such as Production, Maintenance, Utility, Laboratory/EMO, Logistics, General Affairs Departments. Number of participating teams in every department will depend on the size of manpower. Prices for the three winning teams will be included in the Safety and Health Budget. See Appendix 11 for the competition guidelines.UNUSUAL KY CARDUnlike KY card, this is performed by the group of employees with a leader assigned to do the activity. Before the activity proceeds, the form is filled up taking into account the sequence of work, risky factors and object for action, and the necessary safety precautions and materials needed. The filled up form is reviewed by the shift foreman or the leader in case of foremans unavailability. Once approved, the team proceeds to the actual work area for further evaluation of the situation.Please see Appendix XX for the detailed Unusual KY Procedure and example of filled up form.

MEETINGSMeeting is a formally arranged gathering with a common purpose. Meeting with respect to the plant operation is usually made to carry out the operation smoothly and systematically aiming maximum safety within workforce and workplaces.Safety meetings have been practiced regularly for the following major purposes: (1) to present the identified potential hazards of the workplaces; (2) to collect ideas and opinion from the group in making remedial actions both engineering and administrative approaches to the identified potential risks;(3) to let everyone know the safety targets and achievements of the different departments and institutions; (4) to discuss both minor and major accidents encountered; and (5) To make decisions whether to approve or not approve the presented suggestions, recommendations, new rules and procedures, and safety programs and plans.In CBNC, there are seven regular safety meetings that have been practiced in either monthly, weekly, daily or in every change of shifts. These are the Central Safety and Health Committee Meeting (CSHC), Contractors Safety Committee Meeting, Safety Audit Committee, Secretariat Meeting, Departmental Safety Meeting, Turnover Meeting, and Toolbox Meeting.

CENTRAL SAFETY AND HEALTH COMMITTEE (CSHC) MEETINGThe Plant Manager is the chairman of this committee. However, the Safety Section Head will preside the meeting. Preparations and organizing the minutes will be made by Safety Section.Contractors Meeting is a regular safety meeting with all the contractors and affiliates of CBNC. These include RTNMC, JGC-Maintenance, SMCC, MANNJ, DCR, RTNFI Hospital, PSSI, PCBSI, and all other contractors with existing project with CBNC at the time of the meeting. The participants of the meeting will be the managers and/or the Safety Officer of the respective contractors, CBNC Plant Manager, CBNC Department Managers and CBNC Safety Team.This meeting is normally scheduled on the third Saturday of the month after the safety walk through (see Inspection Section) at 1:00 in the afternoon. The schedule will be changed in case the third Saturday of the month falls on a holiday.

Security report will be presented by the CBNC/RTNMC Security Consultant.Minutes of this meeting will be submitted to the Mines and Geosciences Bureau RIVB (MGB) and to the Department of Labor and Employment.SAFETY AUDIT COMMITTEE MEETINGSafety Section Head will be presiding the meeting. This meeting discusses only the result of the safety audit walk through inspection. Suggestions and recommendations are also presented here. Updates of the suggestions and recommendations for the remedial actions will be presented during the Central Safety and Health Committee meeting.

SECRETARIAT MEETINGTurnover Meeting is a regular meeting conducted during shifting of personnel. This is usually the turnover of assignments of the outgoing shift to the incoming shift. Aside from the turnover activities, accident, near miss accident, and potential hazards encountered by the outgoing shift are also discussed during this meeting so that everyone should be aware and immediate countermeasures will be initiated.SEMI ANNUAL SAFETY PERFORMANCE REVIEWSafety coordination meeting was established to be known to each safety inspectors of each contractor. Discussions include problems encountered and its relevant countermeasures. More specifically, this meeting is a learning venue to all and be one with the set standard of the occupational safety and health and other government regulations.PLANNED INSPECTIONSCBNC adopted safety inspection as a means of regulating improved safety of the operation. Safety inspections consist of a series of safety-related checks for various systems, equipment and work areas. Safety inspections represent a good opportunity to have minor problem corrected before they become major problems or hazards.Safety inspection can also detect problems that could cause major breakdown headaches in the near future. Planning the inspection ahead gives us time to make better choices about different repairs or services that may be needed as determined during the inspection.CBNC has programs that require inspections on a monthly basis, but there are also some areas that require inspections on a weekly or even daily basis.WALK THRU INSPECTIONCONTRACTORS SAFETY COMMITTEArea of inspection will not be repeated unless all areas in the Plant Site have already been inspected by this committee.Fire extinguishers are inspected regularly on a monthly basis. The inspection is normally done every second week of the month. All of the fire extinguishers are identified with a plastic laminated tag as shown in Figure 10 below.Fire extinguisher has a unique codename which reflects in the tag. It identifies the specific location of the fire extinguisher. Codenames and fire extinguishers specifications are written in the fire extinguisher monitoring sheet (see Appendix 15).FIRE HYDRANTSlings and wire ropes of the mobile cranes, hoist and cranes, and hoist/lifting slings are regularly inspected within the first week of the month. The production operator together with the safety inspector and maintenance inspector will conduct the inspection.Wire rope and sling shall be taken out of service when any of the following conditions exist: In running ropes, six randomly distributed broken wires in one lay or three broken wires in one strand in one lay. When wire rope is kinking, crushing, bird caging, or any damage resulting in distortion of the rope structure. Reduction of wire diameter of more than 7 % due to wear and corrosion. All wire ropes and slings found to be unsafe for use shall be isolated and tagged appropriately.Pull cords of belt conveyors at the Limestone, Ore Preparation, and Filtration areas are regularly inspected. Function test is conducted on a monthly basis. It is usually scheduled on the first week of the month.When the field operator pulls the emergency pull cord, he then confirms with DCS operator if PULLCORD alarm is triggered. The field operator will then reset the PULLCORD alarm using the corresponding reset switch of the belt conveyor and will confirm with the DCS operator if the alarm is reset. Results of confirmation are noted in the Function Test Sheet. MOTOR CENTRAL CONTROL (MCC) INSPECTIONSee Appendix 19 for the MCC Inspection Sheet.SCABA INSPECTIONThere are two sets of airline mask apparatus in the plant. One can be found in MS area while the other in H2S Plant area. This apparatus will be inspected on a monthly basis, usually on the first week of the month. Any damaged part or missing items will be properly coordinated with the concerned department manager for the immediate recovery or replacement. The result of this inspection will be discussed in the Secretariat Meeting.FIRST AID KIT INSPECTIONPier Site Inspection will be done on weekly basis, usually every Monday. The inspection will cover all Pier Site facilities including trestle, causeway, tank farm, acid and methanol loading/unloading areas, various stockyards (slaked lime and coal), and pier warehouse. Any observed unsafe conditions will be reported accordingly through Sub Standard Report Format (Appendix 29).TAILINGS DAM INSPECTIONIntake dam, the plant water source, will be inspected monthly. Safety Inspection Team will check if the dam contains materials such as trunk of the trees and dead animals that are trapped in the dam which will hamper the passage of water through the pipeline. Any unsafe condition found will be properly coordinated. Result of the inspection will be discussed during the Secretariat Meeting or CSHC Meeting.FIRE TRUCK INSPECTIONEmergency vehicle inspection and check-up will be conducted three times a week. It will be done on Tuesdays, Thursdays and Sundays. Checklist provided for this inspection is found in Appendix 28. The inspection also include test run for 15 minutes within the plant site premises only. The time of inspection will be between 12 am to 5 am. Safety Inspection Team will make work request and report any defect or abnormality observed on vehicles.WEEKLY INSPECTIONSafety Inspection Team is conducting inspections on a daily basis. The daily general inspection covers, but not limited to, the personal protective equipment worn by employees, activities done by the operations crew and other plant activities. See Sub Standard Report format in Appendix 24.Reporting of the unsafe acts/conditions will be in a standard format. See Appendix 25 for the Reporting Format.Safety orientation for the contractors may include the following subjects: Company Safety Policy, General Plant Rules, and Restricted Areas. Other safety matters will be discussed by their respective safety personnel.FOR VISITORS SAFETY CARDSOrientation about the use of safety cards will be given to the newly hired employee by the safety personnel. Every employee shall be given exercises on the making of these cards during the discussion for records. It is expected that the employee should practice the use of safety cards right after the orientation.PERSONNEL SAFETY DEVELOPMENTSAFETY TRAININGSSafety personnel are also encouraged to participate in safety conventions in order for them to be aware of new developments in safety and benchmark on programs from outside of the company premises. Applicable practices and programs learned from conventions and conferences can be applied to CBNC. This way, CBNC will improve its operations and continue with its business safely.FIRST AID TRAINING COURSESFirst Aid Training Course will be conducted once a year and a monthly refresher will be initiated. This training will be scheduled depending on personnel availability and that of invited accredited lecturer. The training duration is approximately 5 days or 40 hours. This training includes, but not limited to, responding emergency cases, first aid treatment of wounds and fractures, proper wearing of SCABA, and responding to (CPR, AR, etc.) and transporting accident victims. The refresher will be facilitated by the Safety Section and it will take only three hours per month.

RADIATION SAFETY

This is a three-hour lecture conducted by the Assistant Radiological Health and Safety Officer. Radiation Awareness lecture is included in the Safety Orientation Program for a newly hired employee. Everyone will be expected to be aware of the presence of radioactive materials in the plant and mindful on the radiation safety and precautions after the lecture.FIRE FIGHTING TRAININGTraining for responding fire, fire fighting equipment and facilities will be done twice a year. As scheduled, it will be conducted on March and September. Fire Fighting Chairman will make the training program and it will be assisted by the Safety Section. Every department, at least a representative, is required to participate in the said training.DEFENSIVE DRIVINGDefensive Driving Training is scheduled twice a month. This training will be facilitated by the Safety Section. The participant of this training must be: a) Recommended by the foreman or supervisor b) Has a valid professional LTO license, and c) With a justifiable reason that he/she is required to operate a specified company vehicle. This training will also include written and actual driving test. Upon successfully passing both examinations, the trainee will be given an Authorized Drivers Card which serves as his/her permit to operate specified company vehicle. In case the trainee failed in the written test, he will be required to take the course again. In case he failed the actual driving test, he will either be deprived of the authorization or will be required to take the actual driving test again..SAFETY PROFICIENCY / KNOWLEDGE TESTThis safety proficiency and knowledge test is given to assess the level of safety awareness and practice in the plant. This is given once a year usually in January for three (3) consecutive years. This is self-appraisal type and a written test, respectively. The result would determine the safety education program of the company for the employees. This is being facilitated by the Safety Office.MOBILE AND LIFTING EQUIPMENT SAFETY TRAININGThis training/orientation aims to enhance employees safety awareness in operating forklifts and overhead cranes. This consists of a lecture, a written test and actual equipment operation. Passers are given authority to operate the equipment. Attendees are those regularly operating the equipment and those who are expected to be operating the equipment. New users are given proper supervision by authorized user. The training/re-orientation will be on monthly basis and will take three hours to finish.ACCIDENT/INCIDENT ANALYSISACCIDENT REPORTINGProductionIf the accident involves personnel from Utility Department, the discoverer must report the accident to the Utility Operator, who will then inform the Utility Foreman. The Utility Foreman will inform the Utility Manager and Production Shift Superintendent. Simultaneously, Utility Foreman will proceed to the accident site and will assess the situation. The Utility Manager will report the accident to the General Affairs Manager. In the absence of Utility Manager, the Production Shift Superintendent will inform the General Affairs Manager. The General Affairs Manager will instruct the Ambulance Driver to bring the injured personnel to the RTNFI Hospital for immediate treatment. The General Affairs Manager will follow to the hospital. The Utility Manager will then inform the Plant Manager and Safety head about the accident. See Appendix 25 for the communication flow. MAINTENANCEMaintenance Manager will inform the General Affairs Manager. The General Affairs Manager will instruct the Ambulance Driver to bring the injured personnel to RTNFI Hospital for treatment. The Maintenance Superintendent will inform the RTNFI Hospital condition of the patient. The Admin Manager will follow to the RTNFI Hospital. Maintenance Manager will finally inform Plant Manager and Safety Head about the accident. See Appendix 25 for the communication flow. LABORATORYIf the accident involves personnel from MANNJ Trading working under the supervision of Production Department, the discoverer will report the accident to the Production Operator who will then inform to Production Foreman. The Production Foreman will inform the Production Superintendent and then will proceed to the accident site and assess the situation. The Production Superintendent will report the accident to the Production Manager and the RTNFI Hospital condition of the patient. See Appendix 25 for the communication flow.If the accident involves personnel from MANNJ Trading working under the supervision of Utilities Department, the discoverer will report the accident to the Utility Operator who will then inform the Utility Foreman. After the Utility Manager has informed by his Foreman, the Foreman will then proceed to the accident site to assess the situation. In the absence of the Utility Manager, Utility Foreman will report the accident to the Production Shift Superintendent and then to the General Affairs Manager. General Affairs Manager will then instruct the Ambulance Driver to bring the injured personnel to the RTNFI Hospital for immediate treatment while the Utility Manager will inform the Plant Manager and then to Safety Head about the accident. See Appendix 25 for the communication flow.RTNMC-ORE PREPARATIONIf the accident involves personnel from JGC-Maintenance, the discoverer will report the accident to the Maintenance Foreman, who will then inform the JGC-Maintenance Safety Manager. JGC-Maintenance Safety Manager will report the accident to the JGC-Maintenance Site Manager, who will then give the instruction to Ambulance Driver to bring the victim to RTNFI Hospital for immediate treatment. See Appendix 25 for the communication flow.INDIGENOUS PEOPLE (AT GENERAL AFFAIRS)If the accident involves personnel from Pier Site, the discoverer will report the accident to Pier Site Operator, who will then inform the Pier Site Foreman. Pier Site Foreman will inform the Logistics Section Head and then proceed to the accident site to assess the situation. In the absence of the Logistics Section Head, Pier Site Foreman will inform the Production Superintendent. The Production Superintendent will report the accident to the General Affairs Manager and the RTNFI Hospital the condition of the victim. General Affairs Manager will then instruct Ambulance Driver to bring the victim to the hospital for immediate treatment. Logistics Manager will also inform the Plant Manager, who will then inform the Safety Head about the accident. See Appendix 25 for the communication flow.RTNMC PIER SITEIf the accident involves IP personnel working at Tagdalongon area at Pier Site, discoverer will report the accident to the Pier Site Operator, who in turn informs the Pier Site Foreman. The Foreman will inform the Logistics Section Head while proceeding to the accident area to assess the situation. In the absence of Logistics Section Head, Pier Site Foreman will inform the Production Superintendent. The Superintendent will report the accident t General Affairs Manager and RTNFI Hospital the condition of the patient. The Logistics Section Head will also inform the Plant Manager, who will then inform Safety Head about the accident. See Appendix 25 for the communication flow.The immediate supervisor of the victim will conduct the preliminary investigation of the accident. The initial investigation report must be submitted to Safety Office to confirm the cause of the accident with all evidences intact. The applicable countermeasures must be provided immediately.SAFETY SECTIONWhen an accident is fatal, police investigation must be conducted. The investigation must be made in the Safety Office. All personnel involved will be investigated. Testimonies from the witnesses, person-in-charge and direct supervisor or foreman will be documented as evidence together with the pictures of the accident. MGBAccident report made by the immediate supervisor will be according to the standard reporting format (see Appendix 27). Investigation report must pass through the Department Manager concerned, Safety Head and finally to the Plant Manager for their comments about the accident.

MGB REPORTA final written report (see Appendix 28 for the format) will be submitted within 15 days immediately following the occurrence of the accident.

ACCIDENT DISCUSSIONWhen an accident occurs, the operation of the particular section must be stopped temporarily. All personnel involved on that particular operation will be pulled out to discuss the accident. Normally, 4RKY will be made and it will be facilitated by the immediate supervisor.When an accident involves CBNC employee, the accident will be presented and discussed during the Secretariat Meeting and Central Safety and Health Committee Meeting.When an accident involves CBNC contractor, the accident will be presented and discussed during the Contractor Safety Committee Meeting.

REMEDIAL ACTIONSCountermeasures for the accident will be made immediately. Approaches for the countermeasure will be work practice control and/or engineering control.If employees can be removed from exposure from the hazard by changing the way they do their jobs, then exposure to hazard can be eliminated with a work practice control. The use of wet methods to suppress dust, personal hygiene, housekeeping and maintenance, and job rotation of workers are some of the examples of work practice control.If the machine or work environment can be physically changed to prevent employee exposure to the hazard, then hazard can be eliminated with an engineering control. Examples of this control are: initial design specifications; substitution with less harmful material; changing/ enclosure/ isolation of the process, and ventilation.HEALTH CONTROL AND SERVICESHealth of the workers is the most significant aspect of the operation in achieving the production target. This is regularly monitored to ensure that everyone involved in the operation is physically and mentally fit. PRE EMPLOYMENT PHYSICAL EXAMINATIONUpon hiring the employee, he/she is required to undergo and pass the physical examination as required by the company. His/her medical certification must be endorsed by the specified doctor of the company and the result conclusion fit to work must be indicated.

ANNUAL MEDICAL EXAMINATIONAnnual medical examination is mandatory to all employees. If health deviations are found, the doctors recommendation must always be followed. Employees leaves or absences and benefits will be in accordance with the company policy.RETURN TO WORK MEDICAL EXAMINATIONAn employee who has met occupational injury or exposure will be allowed to return to work only if he/she has already undergone medical examination and given a certification from the doctor that he/she is fit to work. Counseling shall be done to workers who have suffered from traumatic accidents.DRUG/ALCOHOL FREE WORKPLACE PROGRAMTo achieve a drug/alcohol free workplace in compliance with the Department Order No. 53-03 of DOLE and in accordance with Article V of Republic Act 9165, or known as the Comprehensive dangerous Drug Act of 2002 the company adopts a Drug Free Workplace Program. The company shall adopt workplace policies and programs on drug/alcohol abuse, prevention and control such as trainings and seminars, posters, etc. A mandatory drug/alcohol testing will be conducted once a year and all employees are required to undergo drug/alcohol test. Details of this program are discussed in the Safety and Health Manual.MONITORING OF WORKING ENVIRONMENTMonitoring of working environment is essential to achieve company program on Health Control Services. Safety office conducts noise monitoring at strategic locations while dust monitoring is done in coordination with EMO department.MALARIA ERADICATIONMalaria has been declared endemic in Palawan and it is just necessary to provide protection to the employees. The company implements fuming at the plantsite and townsite. This is scheduled every six months usually April and October.

EMERGENCY PREPAREDNESS PROGRAMCBNC has already established emergency preparedness programs. These are the Emergency Response Plan which describes the response of the various committees to emergency cases and Emergency Management Plan which describes primarily on the communication routes, handling the public as well as the communication contacts. See the handbooks of the respective programs.

PERSONAL PROTECTIVE EQUIPMENTThe company will provide its employees with proper Personal Protective Equipment free of charge as enumerated: cotton gloves, leather gloves, rubber gloves, hard hat, full body harness, rain coats, rain boots, H2S gas respirator, portable gas detector, film badge, face shield, ear plugs, safety glasses, safety goggles, safety shoes, acid proof uniform, dust suit, acid suit, etc.The free issues of safety gears and personal protective equipment are replaceable whenever they become unsafe for use or damaged though ordinary wear and tear/use except for uniform, which shall be provided three sets every two years for Production personnel and three years for non-production personnel.

SAFETY AND HEALTH INCENTIVESEvery one million safe man-hours worked without lost time accident achieved, the company provides its employees a token for the achievement.Another incentive will be given to an employee who won the nomination for Safe Man of the Year. Eight employees coming from different department will be awarded with a plaque and cash incentives each at the end of the year.

SAFETY PROMOTIONThere are plenty of ways to promote safety. Some of the ways that the company will be practicing are safety circulars, 4RKY competition, posters and sign boards, and safety slogan making contest. A monthly recognition award is also given to a department or section which incurred no accident in a month and has been meeting the monthly target of the department.SAFETY CIRCULARSafety circular is an advertisement printed on a leaflet intended for wide safety dissemination. The company will distribute safety circular not only for its employees and contractors but also for the community regularly.4RKY COMPETITION4RKY competition will also be made during the scheduled major shutdown. Normally, the competition will be made on May. It will be participated by all departments that involve in the direct operation such as Production, Maintenance, Utility, Laboratory, EMO, General Affairs and Logistics Departments and will be judged by the department Managers. Three winning teams will be given cash price and a trophy. See Appendix 11 for the competition guidelines.POSTER AND SIGNBOARDSSafety slogan making contest will be conducted monthly. Safety Section will disseminate guidelines as well as the subject each month. The slogan entries will be judged during the Central Safety and Health Committee Meeting. The slogan entries must be submitted to Safety Section through Lotus Notes before the scheduled CSHC Meeting. The winner will be awarded with P1000 cash. The winning entry will be posted in the Safety Statistic Board.COMMUNITY CONSULTATIONCommunity consultations will be done from time to time and as the need arises. These consultations aim to establish good relationship with the community.

TARGETS AND BUDGETS