SAFETY

The Company is committed to attaining a zero harm workplace for all its employees and contractors and strives to continually improve the safety culture across its activities and those of affiliated entities.

Hazard monitoring and rectification programs operate at all sites to ensure maximum safety standards are maintained in the workplace, and to minimise the occupational hazards for workers.

Murchison will continue to strive for further improvement in order to provide the safest possible workplace for its people.

During the year, Crosslands commissioned an independent Safety System Audit. Opportunities for improvement identified by the audit are being progressed. Crosslands also carried out a series of Risk Assessment workshops at both a corporate and operational level. The workshops have led to the development of a comprehensive Risk Management Plan against which progress on the development of control and mitigation measures is regularly reported and managed.

COMMUNITY

Our operations help support local communities as we prepare to expand production and grow our presence within Western Australia's iron ore industry.  What Crosslands and OPR do in the mid-west benefits everyone - through the creation of jobs, increased local spending, upgrades to community infrastructure and partnerships with indigenous people, including employment and training opportunities.

We want to make sure we stay in touch with local people and understand their needs and expectations. By maintaining close relationships and encouraging open communication, we can ensure the local benefits from our operations continue to flow.  Both Crosslands and OPR have extensive community programs in place, which are extensions of the work initially implemented by Murchison prior to the establishment of Crosslands and OPR.

These community relations initiatives include:

• Briefings, community liaison and information sharing sessions throughout the mid-west.
• Release of information to the media and the publication of regular community updates and advertisements.
• 'Heart - Crosslands' community support program which invites sponsorship applications twice yearly.
• Crosslands Liaison Group, which meets regularly to discuss matters of mutual interest.

The Crosslands Liaison Group comprises a wide range of government and community representative bodies.  Crosslands and OPR supported a number of community initiatives and events in the past year, including: International Women's Day 2008, Bundi Gurdurdu (Good Heart), Mid-West Indigenous Art Exhibition, St John Ambulance Cue Sub-station, the St John of God Foundation Horizon House Project in Geraldton Self-Esteem Youth Workshop for Cue, the Great Northern Football League, and the Australia-Japan Society (Geraldton).

INDIGENOUS RELATIONS

In the mid-west, we have developed strong working relationships with local indigenous groups and in return have received support for our work in the region.  One of our key goals is to form meaningful partnerships with indigenous communities and organisations that will benefit us all.

We are committed to improving cross-cultural understanding and promoting mutual respect. We are also investing in employment and training options for Aboriginal people.  Through Crosslands and OPR, we plan to play a big part in the development of the mid-west and we believe that together we can create a better future for everyone.

Crosslands has formed a partnership with the Naaguja people to conduct cross-cultural awareness training with staff, an important step in promoting mutual understanding and in maintaining open communication.  Crosslands also provides cross-cultural training at the Jack Hills mine site. Local Aboriginal people are integral to this training program ? they impart their knowledge and affinity with the mid-west region to increase education and awareness amongst mine site employees.

Regular meetings are held with relevant Native Title groups and the Yamatji Land and Sea Council (YLSC) regarding proposals for the Jack Hills expansion. The project will have a significant impact on these groups and ongoing consultation will ensure all stakeholders are prepared for the changes, and reach an outcome that is beneficial for all parties.

Crosslands has implemented a Cultural Heritage Management Plan in consultation with the local people to ensure we respect their wishes with regards to cultural matters that may arise. This plan provides staff, contracting partners and the local indigenous people with relevant processes to undertake should cultural materials be located during the course of any mining operations.

SUSTAINABILITY

Murchison, Crosslands and OPR have appropriate strategies in place to identify, assess and manage areas of potential risk. We are committed to regularly reviewing our operations and endeavour to protect our operational, financial and strategic activities.  We assist all new staff and contractors to become familiar with policies, procedures and safe work practices through a thorough induction program undertaken prior to commencing work and we are committed to providing ongoing support and training.

We are also committed to protecting the local environment and people. We go beyond minimising the effect of our operations on the community - we aim to ensure that everything we do creates benefits for us all.

The mid-west region is an area of great flora and fauna biodiversity, spectacular landscapes and social diversity.  Through Crosslands and OPR, we aim to conduct business in an efficient and environmentally responsible manner that meets the expectations of our community, shareholders and government.  We recognise that environmental responsibilities go beyond those required under statutory regulations and include social obligations, leadership in sustainable development and climate change, and minimising environmental impacts of water use for future generations.

One of our key focus areas is managing and safeguarding the biodiversity found in the varied marine and terrestrial environments surrounding the Jack Hills mine site, the communities we travel through and our current port operations.  Some of the key environmental challenges facing Crosslands and
OPR include:

• climate change and energy conservation
• dust management to surrounding sensitive receptors
• water conservation
• waste management
• hydrocarbon management
• noise management to surrounding sensitive receptors
• ground disturbance and rehabilitation.

To manage these matters a range of Environmental Improvement Plans and Environmental Management Plans have been developed.