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ENVIRONMENT

The Company has environmental management systems in place at each of its current operations. The procedures and protocols that form the operating framework of the Company's environmental management systems are in line with ISO 14001 requirements. The overall goals include: a commitment of management to pollution prevention; compliance with pertinent environmental regulations and legislation and continual improvement to protect the environment.

In 2006, no significant environmental incidents were reported. Zero discharge of process effluent to surface waters is practiced at all sites. Emissions from the Company's three acid plants at Bwana and Kansanshi during normal operations were compliant with both Zambian statutory limits and United Kingdom guidelines for sulphur loss from single absorption acid plants. The Company is in possession of all necessary environmental permits and licenses. No environmental penalties were incurred in 2006.

The environmental and social impact assessment study for the Frontier copper project in the DRC was approved by the Ministry of Mines in January 2006. An ISO 14401 environmental management system will be in place before plant commissioning in mid 2007.

Guelb Moghrein in Mauritania is located in a desert environment where water is a precious resource. Process water for the concentrator and gold plant is presently pumped from the Bennichab freshwater aquifer situated 113 kilometres from the mine. As part of its water management plan and to preserve this water resource for future generations, Guelb is carrying out investigations to identify an alternative saline water supply for the process plant. The saline drilling programme and test work will be complete in 2007. Guelb is also maximising the recycling of process water from the tailings dam and implementing procedures on site to prevent the wastage of water.

Closure plans with costs have been prepared for each operation. The closure plans are reviewed annually.


HEALTH AND SAFETY

First Quantum implements internationally accepted occupational health and safety standards and procedures throughout its operations. The Company complies with all national laws of health and safety in the workplace in order to create a safe workplace thereby protecting its employees from accident and sickness. These laws are in line with International Labor Organization recommendations.

In 2006, the Company made great efforts to improve its health and safety performance. Progress has been made on developing health and safety procedures and guidelines which support the Company's goal of zero lost time injuries. All employees and contractors now undergo health and safety training as part of the general environmental health and safety induction programme.

The Company is pleased to report no fatalities at its operations in 2005 and 2006. Bwana Mkubwa had an excellent safety record in 2006 with zero reported lost time injuries. The lost day rates improved markedly in 2006 at all three business units. Health and safety monitoring at Guelb Moghrein began in September 2006. To date, no lost time injuries have been reported.

Health and Safety Performance Indicators at Company Operations in 2005 and 2006

 

Kansanshi

Bwana

Lonshi

Guelb Moghrein(2)

 

 

 

 

2005

2006

2005

2006

2005

2006

2006

Description

 

 

 

 

 

 

 

Number of fatalities

0

0

0

0

0

0

0

Injury rate(1)

0.44

0.41

0.75

0.00

0.12

0.10

0.00

Lost day rate(1)

11.69

4.24

14.50

5.66

60.5

1.38

0.00

(1) The per annum injury rates have been calculated by using the number of lost time injuries and dividing that figure by the number of hours worked by employees; the result is then multiplied by 200,000 hours.  The per annum lost day rates have been calculated by using the number of lost days and dividing that figure by the number of hours worked by employees; the result is then multiplied by 200,000 hours.
(2) Health and safety monitoring at Guelb Moghrein began in September of 2006.  As at December 31, 2006, no lost time injuries at Guelb Moghrein had been reported.


Employee health and occupational illness is a key focus area. In 2006, much emphasis has been placed on improved monitoring of occupational exposure to gas, dust and noise. At the same time, there has been a drive by safety departments to ensure employees wear the correct personal protective equipment to mitigate any potential exposure.

First Quantum recognizes the importance of the health of local communities in which it operates. In Zambia the Company actively supports the government malaria 'roll back' programmes in Ndola and Solwezi towns. In 2006, the Company provided logistical support in the form of labour, spray equipment and chemicals. During the current programme it is planned to spray 52,000 houses in Ndola and 24,000 houses in Solwezi. The Company makes available treated mosquito nets to its employees at subsidized prices.

HIV/Aids Programme

First Quantum recognises that a sustainable, fit healthy workforce is essential for the company to achieve its business objectives. Implementation of the Company's HIV/Aids programme at its three Zambian business units began in November 2005. The Zambian HIV prevalence rate is approximately 16% of the population. The Company's HIV/Aids Policy advocates a non-discriminatory approach to addressing the epidemic and provides for considerable support in terms of counselling, free medical care including treatment of opportunistic infections, and antiretroviral treatment for all employees and their families. The programme is run from the Company's Ndola office by a senior coordinator and site HIV/Aids coordinators who are registered nurses with specialist training in counselling and testing, ART administration, and other HIV/Aids related issues.

In addition, First Quantum has entered into a Global Development Alliance with other mining companies in Zambia and the US Government. In terms of this cooperative agreement First Quantum is funded through USAID for various HIV/Aids initiatives, technical support and training programmes. USAID is funding the tuition of 600 peer educators in addition to a financial grant in support of the general programme. The HIV/Aids introductory programme was initiated in April 2006 and involves a two hour training session delivered to all employees. The objective of the programme is to explain the Company's policy, educate and encourage all employees, their families and the community at large to undergo voluntary counselling and testing. In 2007 the Company intends to extend its HIV/Aids programme to its DRC operations.


SOCIAL RESPONSIBILITY

First Quantum is always mindful of its responsibility towards the community in which it operates.

In 2006, the Kansanshi mine was pleased to announce the establishment of the Kansanshi Foundation. Some of the projects undertaken so far by the foundation include the drilling and equipping of water bores to supply clean water to villages and communities surrounding the mining license; resurfacing of the Solwezi town market; repairs to town infrastructure including bridges and roads; and the supply and installation of a new chilling compressor and repairs to the mortuary at Solwezi General Hospital. In an effort to reduce deforestation in the Solwezi area, Kansanshi has promoted alternative livelihoods in the area including beekeeping.

In 2006, Bwana carried out a variety of community projects. Activities varied from repairs to town infrastructure such as roads and the Kafubu water and sewage works to the sponsorship of sports events, Zambian sportsmen and the donation of sports equipment to schools and sports clubs; electrical improvements to schools and orphanages, provision of water supplies to local village communities; dredging of local watercourses to remove weed, improve flow and prevent the breeding of mosquitoes and assistance to the Forestry Department to mount patrols to prevent deforestation in the Chondwe and Kansansfwe forest reserves through which the Bwana/Lonshi haul road passes.

Guelb began implementing its Social Action Plan in October 2006. To date work has focused on the refurbishment of schools in Akjoujt, repairs to medical facilities at the Akjoujt Hospital, construction of shade houses to grow vegetables for the local community, assistance to local farming cooperatives in the form of water pumps and pipes to enable irrigation and improve the production of vegetables from garden plots in the Akjoujt wadis, the provision of water bladders in parts of Akjoujt town where there is no reticulated water system, and the supply of clean water at no cost to low income families living along the 113 kilometre long Bennichab pipeline


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