1 Contractor Management An Operator s Perspective

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Contractor Management – An Operator’s Perspective Grant Mc. Laren Deputy Project Director Infrastructure, Execution Planning and HSEC Olympic Dam Expansion Project BHP Billiton 2

Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction 3

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From This ……………. To This 6

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From This ……………. To This 8

BHP Billiton HSEC Systems and Documents Our HSEC Systems and Documents are hierarchical documents and systems must meet and support requirements of those of higher levels Our Company’s purpose and values Our Values Our vision and objectives for Sustainable Development Our Framework Our Standards to implement our objectives for Sustainable Development How we will do it 9

Desired Outcomes § 10 BHP Billiton’s vision is to be the company of choice, creating value for all our stakeholders – central to this is Zero Harm.

Process - theory Competencies Requirement of JHA BHP Billiton Fatal Risk Control Protocols BHP Billiton HSEC Standards 11 Contractor Work Instructions Contractor Procedures Contractor Rules Amendments to Procedures and Work Instructions There is only so much information that an employee will assimilate as being important and relevant and therefore personalise!

Process - practical 12

Brilliant at Basics vs. Complexity. What generates better results? ? Realisation t ta s n lia sic ril Ba B e th ? ? ? m Co ty i ex pl 13 Successful HSEC Outcomes ? ?

Communication Beware § § § 14 Dissemination / percolation / provocation Articulate the message Test for knowledge User friendly Time considerate Across all age groups (Generation Y)

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Communication Beware § § § 16 Dissemination / percolation / provocation Articulate the message Test for knowledge User friendly Time considerate Across all age groups (Generation Y)

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Expectations What are we expecting of “stakeholder” companies? § § § § 18 Auditable corporate commitment Visible passion from Senior Management “Out in field” mentality Enter into shared beliefs Continued positive reinforcement Systematic and methodical approach to injury prevention Innovation

Expectations What are we expecting of “stakeholder” subcontractor/vendors? § § 19 Understanding and buy-in that this is easy and not an impost Automatic HSE behaviours Realisation that HSE is a two way street Take the opportunity to learn and improve

The Trap Credibility Frustration Management Wasted energy and effort Information Filter Workforce Loss of Morale Management Credibility 20

The Solution Management ---- - Frontline Leadership ------- Workforce 21 -

Progression § § 22 The solution is not more procedures but…. Challenge paradigms – dysfunctional, healthy + People are first + Implementation design change and engineering change in early stages + Innovation - Wire line over-run on surface Drilling Rigs. History of causing fatalities and permanent disabilities eliminated + Ingenuity - Working at height = working on back of trucks solved

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Progression § § 24 The solution is not more procedures but…. Challenge paradigms – dysfunctional, healthy + People are first + Implementation design change and engineering change in early stages + Innovation - Wire line over-run on surface Drilling Rigs. History of causing fatalities and permanent disabilities eliminated + Ingenuity - Working at height = working on back of trucks solved

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Progression § § § 26 The solution is not more procedures but…. Challenge paradigms – dysfunctional, healthy + People are first + Implementation design change and engineering change in early stages + Innovation - Wire line over-run on surface Drilling Rigs. History of causing fatalities and permanent disabilities eliminated + Ingenuity - Working at height = working on back of trucks solved Stretching - there is no easy panacea to HSEC management - this is an incessant task and one which BHP Billiton is constantly driving to Zero Harm

Thankyou 27