RU

INTEGRATED REPORT 2016

Health and Safety

In 2016, the Company proceeded with the implementation and update of its HSE Policy. When adopting this document, Uralkali stated that health, safety and the environment are key priorities that should be taken into account in all actions and decisions, regardless of the line of work to which they relate.

OUR APPROACH

Safety is an unconditional value that must be an integral part of any action and decision. We understand that careless, thoughtless and irresponsible actions may have tragic implications not only for ourselves and our colleagues, but also for our families and friends. No achievement or economic benefit can justify loss of life or damage to a person’s health.

WHY THESE ISSUES ARE IMPORTANT TO US

Absence of fatalities, incidents, accidents and occupational diseases is one of the key goals of an efficient business. Each employee expects to work in a healthy environment. At the same time, the Company expects its employees to follow the safety rules. By jointly supporting these principles, we will be able to bring our business to a higher level of performance and ensure a sustainable future.

KEY PRIORITIES

  • Absence of fatalities and incidents
  • Absence of accidents

STAKEHOLDERS ENGAGED

  • Employees
  • Trade unions
  • Local communities
  • Media

Performance indicators

There were 13 accidents at Uralkali and its subsidiaries and affiliates in the Russian Federation in 2016. All accidents were investigated and the Company adopted the necessary measures to prevent similar incidents in future. It should be noted that all accidents occurred for organisational reasons, and not for technical or technological ones.

No fatalities were recorded at Uralkali and its subsidiaries and affiliates in 2016.

The lost time injury frequency rate (LTIFR) at Uralkali and its subsidiaries and affiliates in the Russian Federation decreased compared to 2015.

The lost days rate (LDR) at Uralkali and its subsidiaries and affiliates in the Russian Federation decreased by 30% in 2016 compared to 2015.

Organisational and technical measures

Occupational safety

Based on the investigation of accidents that occurred in 2015, the Company established an institution of mining and technical inspectors who carry out internal supervision of compliance with safety requirements for mining and backfilling operations in Uralkali’s mines. In 2016, two meetings were held with the purpose of analysing the work for the past period; they determined the priority work areas for mining and technical inspectors in 2017.

According to the resolution of the Health, Safety, Environment and Corporate Social Responsibility Committee directly reporting to the CEO, a professional skills competition was organised in 2016 to enhance professional skills among the employees of the Occupational and Industrial Safety Department. One of the main evaluation criteria when summarizing the results of the contest was «the number of detected violations of the Cardinal Rules». As a result, six employees of the Occupational and Industrial Safety Department received awards.

Industrial safety

In 2016, Uralkali continued to develop and improve production control over compliance with industrial safety requirements at its hazardous production facilities.

In order to determine the list of technical devices, buildings and structures operated at hazardous production facilities, and to improve monitoring of the organisation and implementation of industrial safety reviews, Uralkali issued the Regulation on the Procedure for Organising and Conducting Industrial Safety Reviews of Technical Devices, Buildings and Structures of Hazardous Production Facilities at Uralkali. With a view to implementing the Regulation, production and functional units of Uralkali compiled registers of technical devices, buildings and structures operated at hazardous production facilities.

In addition, the Company compiled and, in accordance with the established procedure, approved a single register of technical devices, buildings and structures.

We also identified hazardous production facilities and, accordingly, changed the composition of operated hazardous production facilities, and also received an updated Certificate of registration for hazardous production facilities of Uralkali.

In order to comply with legislation on industrial safety for hazardous production facilities of hazard classes 1 and 2, Uralkali worked on developing a procedure for identifying and assessing accident risks, with the planning of measures to reduce accident risks, according to which hazard identification and occupational hazard management documents were developed for registered hazardous production facilities of hazard classes 1 and 2.

The Company renewed its license to operate production facilities with explosion and chemical hazards in classes 1, 2 and 3.

Uralkali continued training and certification of 38 members of mine rescue crews at the Berezniki-2, Solikamsk-2 and Solikamsk-3 mines in 2016. These workers were qualified as rescuers.

A system of personnel positioning was further improved at the Company’s mines.

LOST TIME INJURY FREQUENCY
RATE / LTIFR
LOST DAYS RATE / LDR

Fire safety, civil defence and emergencies

No fires or emergencies were recorded at the Company’s facilities in 2016. The number of fire outbreaks decreased by 17%, from 12 cases in 2015 to 10 cases in 2016.

During 2016, the Company implemented all planned activities in accordance with the approved schedule proposed by the Independent Auditor regarding fire safety at Uralkali’s facilities.

Regular and preventive maintenance was done on more than 800 automatic fire alarm units and systems, warning and evacuation control systems, automatic fire suppression systems and emergency warning systems to ensure the fire safety of surface complex facilities.

Over 20 suits and more than 20 breathing apparatuses were purchased to equip gas rescue units (NASF) consisting of Company employees in case of abnormal operation of chemically hazardous facilities at Uralkali’s surface complex.

Criteria were developed in 2016 for the purchase of new manual powder fire extinguishers, fire doors and oil heaters in order to increase their capacity, reliability and service life at Company facilities with an aggressive environment.

Uralkali also continued work on the introduction of alternative automatic fire extinguishers for conveyor transport facilities in its mines (Typhoon-60UK with water mist spray (60 litres) and UMP-1 with a powder volume of at least 50 litres).

As part of the technical re-equipment of professional rescue units engaged in mine rescue and fire protection operations at the Company’s facilities, we purchased a new ASh-7 fire-fighting staff truck on the chassis of a Gazel truck for Solikamsk-2, 50 R-30E respirators for work in gaspolluted environments unsuitable for normal breathing, 6 Ferra radio stations to provide radio communication in underground workings during the mitigation of accidents and a new IR-5040-5-11 tensile machine.

The Company also maintained primary fire extinguishing equipment (fire extinguishers) in working order. During the year, over 23,000 fire extinguishers were checked, repaired and recharged.

Scheduled comprehensive, command and staff exercises were conducted to prepare employees for natural and man-made emergency situations and civil defence warning signals.

The Company maintained its civil defence structures in proper working order, and adopted and scheduled measures to improve their protective properties. Based on the results of local review competitions, the Company’s civil defence structure at the Solikamsk-3 mine, designed for over 600 people, was recognised as superior to similar structures of the Perm region (winner’s certificate).

We installed and started experimental operation of a local emergency warning system at the hydraulic structure of the Verkhne-Zyryansky reservoir.

Training and briefing

Making employees aware of the latest health, occupational and fire safety requirements and developing a culture of compliance play a key role in ensuring workplace safety. Before starting work at Uralkali’s production facilities, the Company’s employees receive workplace training. Ensuring workplace safety and monitoring employee compliance with safety requirements are part of the responsibilities of all foremen and supervisors.

Training and certification in 2016:

  • In the field of industrial safety – 5,917 employees
  • In the field of occupational safety – over 1,269 employees
  • In the field of emergency situations and civil defence – over 7,993 employees
  • In the field of fire safety – 4,014 employees

Our plans for 2017

  • Collect and compile data on the number of technical devices, buildings and structures at the Company’s hazardous production facilities subject to examination of industrial safety to extend the period of safe operation, as well as prepare a strategic plan for expert examination of industrial safety
  • Develop a procedure for identification and assessment of accident risks; plan measures according to the risk level at the Company’s hazardous production facilities
  • Prepare the Company’s hazardous production facilities for a scheduled inspection by Rostekhnadzor’s West Urals bodies
  • Develop industrial safety declarations for the Company’s hazardous production facilities
  • Prepare all Uralkali facilities for scheduled inspection by the Main Directorate of the EMERCOM of Russia for the Perm region in July 2017
  • Develop the necessary criteria for monitoring the performance of existing fire protection systems to ensure the early detection of fires at surface complex facilities
  • Put into commercial operation a local warning system at the Verkhne-Zyryansky reservoir of the Berezniki-2 processing plant, and equip the hydraulic structure (slurry storage) of the Solikamsk-3 processing plant with a local warning system for employees in case of possible emergencies
  • Further implement the long-term Fire Safety Action Plan for 2016-2018 to reduce the risk of fires occurring (spreading) at the Company’s facilities
  • Continue work on certifying the safety of the Company’s hydraulic structures as part of the renewal of operating permits
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