Bluescope Steel

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Community, Safety and Environment Report 2005

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Fatalities & Major Incidents

Tragically, a fatality occurred in our business on 4 July 2005, with the death of an oilerman in the Rolling and Finishing Department of New Zealand Steel.

The employee was fatally injured when he was trapped by a roll while conducting regular maintenance on the Hollow Sections Mill.

Following an internal investigation into the cause of the fatality, a number of actions were taken at New Zealand Steel and across all BlueScope Steel sites.

These actions involved the review of lubrication activities and isolation processes; initiatives to audit isolation systems involving stored energy; the review of planning protocols to co-ordinate breakdown, operational and maintenance activities; and reinforcement of the Company's near miss and incident reporting strategy.

The Company is co-operating fully with the OSH, Department of Labour investigation into the accident.

To reinforce to all BlueScope Steel employees and contractors that nothing is more important than staying safe, a worldwide Stop for Safety initiative was held in August 2005. The sessions provided employees with time to reflect on the death of a colleague and an opportunity to improve safety in the workplace.

Response to a Major Incident

BlueScope Steel Managing Director and CEO, Kirby Adams initiated the Stop for Safety program to focus exclusively on critical safety issues and solutions across the Company's global operations. Every employee and on-site contractor participated in the sessions, which emphasised staying safe all the time, 100 per cent, with no exceptions.

During the Stop for Safety program, employees were encouraged to reflect on the recent fatality and the lessons to be learnt; to discuss and capture the major risks in each workplace, specifically in regard to line of fire activities, isolation and stored energy, and working at heights; to generate ideas to prevent incidents; to examine the progress of previous Stop for Safety initiatives; and to commit to actions and behaviours to keep every individual safe.

Stop for Safety 2005 focused employees and contractors from all sections of the Company on identifying major risks in our workplaces. Some of the common themes identified were -

A number of safety improvements were initiated immediately as a result of the fatality investigation. Steps undertaken across BlueScope Steel worldwide included identifying all high-risk hazards and reviewing all isolation procedures for potential sources of stored energy, with all identified potential sources assessed and included in the isolation procedure where appropriate. Across the Company, isolation procedures are to be reviewed for stored energy implications.

The safety message was reinforced by the Chairman and Board of Directors of BlueScope Steel, who spent time in 2005 conducting safety audits to view for themselves some of the progress made since the previous Stop for Safety program and subsequent recommendations.

Progress on Stop for Safety 2004 initiatives has been encouraging and includes -

Stop for Safety has provided an opportunity for employees throughout the Company to refocus our efforts on Zero Harm. The Zero Harm message has been emphasised with employees reminded it means staying safe all the time, 100 per cent, with no exceptions.

Stop for Safety

In the wake of the fatality at New Zealand Steel's Hollow Sections Mill, we took immediate action.

In August 2005, every employee and on-site contractor across BlueScope Steel's global operations stopped work for the Company's second Stop for Safety program. The four-hour safety session underlined our belief that employee engagement is essential if we are to achieve our goal of Zero Harm. Every employee was reminded that Zero Harm means staying safe all the time, 100 per cent, with no exceptions.

A number of new safety measures were immediately mandated across the Company. Our employees generated some excellent ideas for further improvements, which we are now implementing.

The aim of these measures is to ensure that anyone who enters one of our sites - employee contractor, supplier, customer or member of the public - leaves that site in the same condition as they arrived.