LABOUR AND HUMAN RESOURCES PLAN WORKPLACE HEALTH AND SAFETY PLAN COMMUNITY HEALTH AND SAFETY PLAN

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LABOUR AND HUMAN RESOURCES PLAN WORKPLACE HEALTH AND SAFETY PLAN COMMUNITY HEALTH AND SAFETY PLAN
LABOUR AND HUMAN RESOURCES PLAN

 WORKPLACE HEALTH AND SAFETY PLAN

  COMMUNITY HEALTH AND SAFETY PLAN

                   For The

KINGAMYAMBO MUSONOI TAILINGS PROJECT

          KATANGA PROVINCE

   DEMOCRATIC REPUBLIC OF CONGO

               In partnership with:
        SRK Consulting (Johannesburg, RSA)

                 Date: March 2008
LABOUR AND HUMAN RESOURCES PLAN WORKPLACE HEALTH AND SAFETY PLAN COMMUNITY HEALTH AND SAFETY PLAN
Table of Contents
1    Introduction ......................................................................................................................... 1
     1.1 Background .................................................................................................................... 1
     1.2 Project Phases and Employment.................................................................................... 1
     1.3 Structure of the Document ............................................................................................. 2
2    Legal and Policy Context ........................................................................................................ 3
     2.1 Background .................................................................................................................... 3
     2.2 International Labour Organisation Core Standards ....................................................... 3
     2.3 DRC Legal Framework ................................................................................................. 4
           2.3.1 Background ....................................................................................................... 4
           2.3.2 Labour and Contract Law .................................................................................. 4
           2.3.3 Laws Relating to Workplace Organisation and Collective Bargaining............. 6
           2.3.4 Immigration Laws ............................................................................................. 6
     2.4 World Bank Group Policies and Guidelines.................................................................. 6
     2.5 FQM Policies ................................................................................................................. 8
3    KMT Labour and Human Resources Plan ............................................................................ 10
     3.1 Context ....................................................................................................................... 10
     3.2 General Conditions of Service ..................................................................................... 10
           3.2.1 Employment Contracts .................................................................................... 10
           3.2.2 Working Hours ................................................................................................ 11
           3.2.3 Leave ............................................................................................................... 11
           3.2.4 Medical and Health Care ................................................................................. 12
           3.2.5 Termination of Employment ........................................................................... 12
     3.3 Recruitment Procedures ............................................................................................... 13
           3.3.1 Expectations and Transparency ....................................................................... 13
           3.3.2 Recruitment and Selection............................................................................... 13
     3.4 Remuneration and Compensation Procedures ............................................................. 14
           3.4.1 Remuneration .................................................................................................. 14
           3.4.2 Benefits ............................................................................................................ 15
     3.5 Training and Development Policy ............................................................................... 15
           3.5.1 Types of Programmes ...................................................................................... 15
           3.5.2 Eligibility ......................................................................................................... 15
     3.6 Dispute Settlement Procedures .................................................................................... 16
           3.6.1 Dispute Resolution and Cultural Difference ................................................... 16
           3.6.2 Informal Resolution ......................................................................................... 16
           3.6.3 Formal Resolution ........................................................................................... 16
     3.7 Policy on Rights of Association and Bargaining ......................................................... 16
4    KMT Health and Safety Framework ..................................................................................... 18
     4.1 Background and Policy ................................................................................................ 18
           4.1.1 Statutory Requirements ................................................................................... 18
           4.1.2 Policy Statements ............................................................................................ 18
           4.1.3 Project Health and Safety Statement ............................................................... 18
     4.2 Project Objectives and Targets .................................................................................... 19
           4.2.1 Health and Safety Objectives and Targets....................................................... 19
     4.3 Structure and Responsibilities ..................................................................................... 19
           4.3.1 Organisation .................................................................................................... 19
     4.4 Consultation and Participation..................................................................................... 19
5         Workplace Health and Safety Plan ....................................................................................... 21
          5.1 Planning Phase ............................................................................................................. 21
               5.1.1 Risk Identification and Control .......................................................................... 21
               5.1.2 Management Organisation............................................................................... 21
          5.2 Operational Control ..................................................................................................... 22
               5.2.1 Background ......................................................................................................... 22
          5.3 Health ....................................................................................................................... 24
               5.3.1 Background ......................................................................................................... 24
               5.3.2 Malaria Management .......................................................................................... 24
               Management of STI and HIV/AIDS ............................................................................ 26
               5.3.3 Transport Safety ................................................................................................. 27
6         Community Health and Safety Plan ...................................................................................... 28
          6.1 Overview of Communities........................................................................................... 28
               6.1.1 Communities in the Project Impacted Area..................................................... 28
               6.1.2 Focus of the CHSP .......................................................................................... 28
          6.2 Planning Phase ............................................................................................................. 28
               6.2.1 Risk Identification and Control ....................................................................... 28
               6.2.2 Safety Management and Organisation............................................................. 29
          6.3 Training, Awareness and Competence ........................................................................ 29
          6.4 Operational Control ..................................................................................................... 30
               6.4.1 Background ..................................................................................................... 30
               6.4.2 Construction Activities .................................................................................... 30
               6.4.3 Site Security and Access Management............................................................ 31
               6.4.4 Off-Site Hazardous Materials Management. ................................................... 31
               6.4.5 Community Health Management .................................................................... 32
               6.4.6 Transport Safety Management ........................................................................ 32
               6.4.7 Natural Resource Management ....................................................................... 33
               6.4.8 Pollution Management..................................................................................... 34
7         Health and Safety Monitoring and Review ........................................................................... 35
          7.1 Monitoring ................................................................................................................... 35
               7.1.1 Performance Measurement and Monitoring .................................................... 35
               7.1.2 Accident and Incident Reporting and Classification ....................................... 35
               7.1.3 Management System Safety Audits................................................................. 36

Appendix 1: FQM Policies ................................................................................................................ 37
Appendix 2: HSEC Management Structure ...................................................................................... 44
List of Abbreviations

ALARP   As low as reasonably practicable
APELL   Awareness and preparedness for emergencies at local level
BAK     Behaviour, Attitude and Knowledge
CDP     Community Development Plan
CHSP    Community Health and Safety Plan
DRC     Democratic Republic of Congo
EPC     Engineering, Procurement and Construction
ESMP    Environmental and Social Management Plan
FQM     First Quantum Minerals Ltd
HCS     Hazardous Chemical Substances
HR      Human Resources
HSE     Health, Safety and Environment
HSEC    Health, Safety, Environment and Community
IDC     Industrial Development Corporation
IFC     International Finance Corporation
ILO     International Labour Organisation
IOM     International Organisation for Migration
KMT     Kingamyambo Musonoi Tailings
KOV     Kolwezi Olivera Verdue
LACP    Land Acquisition and Compensation Plan
LEL     Lower Explosive Limits
MSDS    Material Safety Data Sheets
NGO     Non Government Organisation
OHS     Occupational Health and Safety
PCDP    Public Consultation and Disclosure Programme / Plan
PLC     Public Liaison Committee
PPE     Personal Protective Equipment
PS      Performance Standard
RO      Resource Optimisation
SEP     Stakeholder Engagement Plan
SPO     Safe Practice Observation
SRK     Steffen, Robertson and Kirsten
TLV     Threshold Limit Value
VTC     Voluntary Testing and Counselling
WBG     World Bank Group
SRK Consulting                                                                               Page A.1

                                 LABOUR AND HUMAN RESOURCES PLAN
                                 WORKPLACE HEALTH AND SAFETY PLAN
                                 COMMUNITY HEALTH AND SAFETY PLAN

                                                     For The

                              KINGAMYAMBO MUSONOI TAILINGS PROJECT
                                       KATANGA PROVINCE
                                  DEMOCRATIC REPUBLIC OF CONGO

1        Introduction
1.1      Background

         The KMT project shareholders are First Quantum Minerals (FQM), Gécamines (the DRC
         mining conglomerate), the Government of the DRC, the International Finance Corporation
         (IFC) and the Industrial Development Corporation (IDC). One of the most significant impacts
         of the Project in and around Kolwezi will be the promotion of economic opportunity through
         direct employment, contracting and the procurement of goods and services. FQM (the senior
         KMT shareholder) has committed to labour, health and safety practices that are in line with
         international best practice, IFC Performance Standards and which comply with all relevant
         DRC policy, legislation and labour regulations. This report outlines KMT labour and working
         conditions policy and practice, including health and safety.

1.2      Project Phases and Employment

         The Project will be implemented in a series of phases. These are:

         •       Pre-construction and planning.
         •       Construction.
         •       Operational Phase 1 (hydraulic mining of the Kingamyambo and dredge mining of the
                 Musonoi).
         •       Operational Phase 2 (draining and hydraulic mining of the Musonoi)
         •       Closure and Decommissioning.

         Construction is likely to start in early 2008, and will continue for two years. Operational
         Phase 1 will commence thereafter. The life of the mine is expected to be 23years. It is
         anticipated that around 1300 people will be employed during the construction phase (600
         contracted expats plus at least one local for each expat), and that there will be around 750
         direct jobs during the life of the mine.

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1.3      Structure of the Document

         This document addresses the following themes:

         •       The policy and legal context (including international and DRC requirements).

         •       The KMT Labour and Human Resources Plan (including general conditions of service,
                 recruitment procedures, remuneration procedures, training and development policy,
                 dispute resolution and compensation procedures and policy on rights of association and
                 collective bargaining).

         •       The KMT Health and Safety Framework, which is the policy and procedural foundation
                 for workplace and community health and safety.

         •       The KMT Workplace Health and Safety Plan.

         •       The KMT Community Health and Safety Plan.

         The three themes of labour and human resources, workplace health and safety and
         community health and safety are treated in an integrated manner because there are strong
         policy, management and monitoring links.

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    2 Legal and Policy Context
    2.1          Background

                 Labour, working conditions, health and safety are the subject of numerous international
                 agreements, conventions, policies and standards. Four key legal and policy frameworks
                 inform the policy and practice covered in this document. These are:

                 •      Core labour standards formulated by the International Labour Organisation (ILO).

                 •      The extensive body of DRC policy and legislation relating to labour and working
                        conditions (which is informed by ILO standards).

                 •      World Bank Group (WBG) policies and guidelines on labour and working
                        conditions, and especially the IFC’s PS 2 (noted in Section 1.4). IFC PS2 refers
                        explicitly to the ILO core labour standards.

                 •      WBG policies and guidelines on community health and safety, particularly the
                        IFC’s PS 4 (noted in Section 1.4).

    2.2          International Labour Organisation Core Standards

                 Over a period of many decades, the ILO has formulated a comprehensive body of
                 conventions and agreements. Some of these are regarded internationally as fundamental
                 or core conventions, setting best practice standards in a variety of contexts. The
                 fundamental conventions are summarised in Table 2.1 below:

                 Table 2.1: ILO Fundamental Conventions

                 Convention Name                                          Key Provisions
          C 29: Forced Labour                •   Forced or compulsory labour not permitted (except under very
                                                  specific circumstances)
                                             •   Existing practices to be suppressed in the shortest possible time
                                             •   Regulated by governments that are signatories to the convention
          C 87: Freedom of Association and   •   Workers and employers have the right to establish and join
          Protection of the Right to              organisations of their choice (subject to the rules of the organisation
          Organise                                concerned).
                                             •   Regulated by governments that are signatories to the convention
          C 98: Right to Organise and        •   Workers to be protected against anti-union discrimination in the
          Collective Bargaining                   workplace
                                             •   Worker’s and employer’s organisations to be protected from acts of
                                                  interference
                                             •   Regulated by governments that are signatories to the convention
          C 100: Equal Remuneration          •   Men and women to receive equal remuneration for work of equal
                                                  value, consistent with the provisions of the applicable remuneration
                                                  methods.
                                             •   Regulated by governments that are signatories to the convention
          C 105: Abolition of Forced         •   Forced labour not to be used for political ends, for economic gain,
          Labour                                  as a form of discipline or punishment, or in the context of
                                                  discrimination.
                                             •   Regulated by governments that are signatories to the convention

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                 Convention Name                                                Key Provisions
          C 111: Discrimination                   •    Equal opportunity in respect of employment and opportunity to be
                                                        pursued (in a manner appropriate to national practice).
                                                  •    Discrimination based on race, colour, sex, religion, political opinion,
                                                        nationality not permitted.
                                                  •    Exclusion or preference in respect of the requirements of a specific
                                                        job is not discrimination.
                                                  •    Regulated by governments that are signatories to the convention
          C 138: Minimum Age                      •    Child labour to be progressively abolished where it is still practiced.
                                                  •    Signatories to determine a locally appropriate minimum age, not
                                                        less than 15 years (14 in specific circumstances).
                                                  •    Regulated by governments that are signatories to the convention
          C 182: Worst Forms of Child             •    Elimination of child exploitation through slavery, prostitution,
          Labour                                        pornography, illicit services or work which is harmful to health,
                                                        morals or safety.
                                                  •    Regulated by governments that are signatories to the convention

    2.3              DRC Legal Framework

    2.3.1            Background

                 DRC labour law is comprehensive and complex. The key elements are captured below.
                 FQM and KMT are committed to compliance with local law in all its forms (see
                 Appendix 1). The following section outlines the relevant elements of the law.

    2.3.2            Labour and Contract Law

                 All labour contracts are governed by the Labour Law and relevant Ordonnances and
                 Arrêtés Ministériel directing its various applications. KMT will strive to follow the
                 statutes applicable to its employees, namely the Loi No 015/2002 (Labour Law) dated
                 October 16, 2002; Code du Travail (Labour Code), and its application measures (included
                 in the official text dated May 1999). The key legal provisions are the following:

                 •   Règlementation de la durée du travail et fixation des modalités de rémunération des heures
                     supplémentaires; Ar. M. No 68 / 11 du 17 mai 1968 (Working hours and overtime).
                 •   Travail le jour de repos hebdomadaire; Ar. M. No 68 / 12 du 17 mai 1968 (Days off).
                 •   Conditions de travail des femmes et des enfants; Ar. M. No 68 / 13 du 17 mai 1968 (Working
                     conditions for women and children).
                 •   Rémunération du travail de nuit; Ar. M. No 68 / 14 du 17 mai 1968 (Compensation for night work).
                 •   Tarif de fourniture de lunettes et des appareils d’orthopédie et de prothèses aux travailleurs et à leur
                     famille; Ar. M. No 1250 du 12 octobre 1968 (Medical cover reimbursement rate).
                 •   Fixation du salaire minimum interprofessionel garanti, des allocations familiales minima et de la
                     contre valeur du logement; Décrets No 080 / 2002 du 3 juillet 2002 (Minimum wage and child care
                     allowance).
                 •   Salaire minima interprofessionnels et agricoles et classification générale des emplois; Ord No 67 /
                     442 du 1er Octobre 1967 (Employment classification).
                 •   Droits et Obligations des employeurs et des travailleurs parties à un conflit collectif du travail; Ar. M.
                     No 3 / 68 du 29 Janvier 1968 (Rights and responsibilities of employers and employees during work
                     conflict).
                 •   Sécurité et salubrité du travail; A.D. No 0033174 / 13 du 19 février 1974; modifié par AD. No 3075 et
                     01794 (Security and hygiene at the workplace).
                 •   Modalité de déclaration de l’embauchage et du départ d’un travailleur; Ar. M. No 69 0024 du 10 août
                     1969 (Obligation to declare hiring).

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                 •   Durée et conditions du préavis; Ar. M. No 70 0015 du 11 août 1970 (Length and condition of layoff
                     notice).
                 •   Règlement d’entreprise; Ar. M. No 70 0016 du 11 août 1970 (Internal regulation).
                 •   La classe de passage et le poids des bagages auxquels ont droit le travailleur et sa famille en cas de
                     voyage à la charge de l’employeur; Ar. M. No 70 0017 du 11 août 1970. Transport du travailleur du
                     lieu de résidence au lieu de travail et retour, modalités d’exécution; Ar. M. No 0048 / 71 du 22 mars
                     1971 (Transport and luggage allowances).
                 •   Sécurité sur les lieux de travail; Ar. M. No 0057 7 71 du 20 décembre 1971 (Workplace security
                     measures).
                 •   Hygiène sur les lieux de travail; Ar. M. No 0013 du 4 août 1972, mod. Par AD No 70 / 77 du 5 mai
                     1977 (Workplace hygiene regulations).
                 •   Licenciement des travailleurs; A.D. No 11 / 74 du 19 septembre 1974 (Contract termination).
                 •   Modalités de déclaration annuelle de la situation de la main d’œuvre; A.D. No 27 / 75 du 30 octobre
                     1975 (Annual report of workforce status).
                 •   Examens médicaux d’embauche et de reprise; A.D. No 28 / 75 du 30 octobre 1975 (Medical
                     examination prior to hiring).
                 •   Liste des jours fériés légaux; Ord. No 79 / 154 du 23 juin 1979 (Public Holidays).
                 •   Visa des contrats de travail nationaux; Circ du 29 octobre 1992 (National employees contract
                     registration).
                 •   Cotisation due par les employeurs à l’INPP; Ord. No 84 / 186 du 15 octobre 1984 (Statutory
                     employer’s contributions).
                 •   Taux de cotisation due par les employeurs à l’INPP; Inter. No 0011 du 20 novembre 1981 (Statutory
                     contribution rate).
                 •   Réduction des zones salariales et uniformisation des allocations familiales minima;
                 •   Ord. No 80 / 284 du 29 novembre 1980 (Salary grid and child care allowances).
                 •   Liste des sanctions pour violation des dispositions du code du travail (List of sanctions for
                     contravention of the Labour Code).
                 •   Conditions d’engagement des expatriés; AD No 86 / 001 du 31 mars 1981 (Hiring conditions of
                     expatriates).
                 •   Visa d’établissement de travail; Ord. No 87 / 281 du 13 août 1987 (Work permits / visa).

         Annexes 237

                 •   Contribution sur les rémunérations; Contribution exceptionnelles sur les rémunérations du personnel
                     expatrié; contribution professionnelle sur les rémunérations (Employers contribution to expatriate
                     salaries).
                 •   Convention collective interprofessionnelle nationale du travail (National Bargaining Agreement).
                 •   Sécurité sociale; age d’admission à la pension de retraite (Social security and retirement age).

                 In the event of conflict between the provisions of this Plan and those included in the
                 Labour Code of the Democratic Republic of Congo, the latter shall always prevail.

                 Every year, before January 31, KMT must submit to the Labour Inspector and to the
                 National Labour Office a summary of the numbers of both national and expatriate
                 employees as of the first of January. The declaration is to be dated and signed and must
                 be made with four (4) copies of the standardised forms: one copy is to be submitted to the
                 local labour inspector, two copies to the person responsible for provincial labour and one
                 copy to be kept in the employer’s file for further reference.

                 Upon employing / terminating an employment contract of any employee, the employer
                 shall declare employment or unemployment within 48 hours. The declaration is to be
                 dated and signed and four copies must be prepared on standardised forms. One copy is to
                 be submitted to the local labour inspector, two copies for the provincial labour
                 responsible and one copy to be kept in the employees file for further reference. This
                 measure does not apply to casual workers or daily labourers hired for less then 30 days.

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      2.3.3 Laws Relating to Workplace Organisation and Collective Bargaining

                 The DRC has ratified ILO Conventions 87 and 98. The labour law (especially the Labour
                 Code) permits workers to form and join trade unions without prior authorisation. It also:

                 •    Prohibits discrimination against unions.
                 •    Allows unions the right to organise without interference and to bargain collectively.
                 •    Requires employers to reinstate workers dismissed for union activities.
                 •    Provides for the right to strike.

                 In practice, a very small proportion of the DRC’s workers are organised, with the majority
                 active in the informal sector.

      2.3.4           Immigration Laws

                 All non-Congolese working with KMT require a work permit. The hiring conditions for
                 expatriates are clearly defined in the Arête Ministériel 70 / 0010, July 27, 1970; A.D. no
                 87 / 005, January 21, 1987 and in the Note Circulaire No 001 /ONEM /DG/DT/NN/2004.

                 The list of positions / functions for which it is forbidden to hire expatriates is detailed in
                 the AD No 86/001 March 31, 1981. The taxation that applies to expatriates’ work permits
                 is defined in the Arrêté Ministériel No 013/95 dated January 31, 1995.

2.4        World Bank Group Policies and Guidelines
           On 30th April, 2006, the IFC Performance Standards on Social and Environmental
           Sustainability were adopted. The Performance Standards (PSs) are applied by the IFC - and
           approximately 60 other financial sector institutions signatory to the Equator Principles - to
           manage social and environmental risks and impacts.

           PS 2 Labour & Working Conditions and PS 4 Community Health, Safety & Security are of
           particular relevance here. PS 2 recognises the ILO fundamental conventions, and
           encompasses previous WBG positions on forced labour, harmful child labour and
           occupational health and safety. The objectives of the Performance Standard are:

           •             To establish, maintain and improve the worker-management relationship.
           •             To promote the fair treatment of workers and compliance with national labour and
                     employment laws.
           •             To prevent unacceptable forms of labour, such as harmful child labour and forced
                     labour.
           •             To promote safe and healthy working conditions, and to protect and promote the
                     health of workers 1 .

           The PS sets out several requirements for IFC clients, summarised in Table 2.2 below.

1
    Workers refer to employees as well as non-employee workers and contract labour.

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         Table 2.2: Requirements under IFC PS2.

                     Theme                                                 Requirements
          Working Conditions and Relationships
          Human Resources (HR)       Client to adopt a HR policy that is consistent with this PS. Under the policy
          Policy                     the client will inform employees of their rights. It will be clear, and will be
                                     made available at start of employment.
          Working Relationship       Working conditions and terms of employment will be clearly documented and
                                     communicated to employees and contracted workers.
          Working Conditions and     If the client is party to a collective bargaining agreement, the terms of the
          Terms of Employment        agreement will be respected. Where not, working conditions and terms of
                                     employment will at least comply with national law.
          Worker’s Organisations     Where national law recognises worker’s rights to associate and bargain
                                     collectively, the client will comply with the national law. Where no law exists,
                                     or is restrictive, the client will enable alternative means of expression,
                                     including a vehicle for grievances.
          Non-Discrimination and     The employment relationship will be based on the principle of equal
          Equal Opportunity          opportunity and fair treatment, and will not discriminate in the contexts of
                                     hiring, compensation, working conditions, and terms of employment, access to
                                     training, promotion, termination, retirement and discipline.
          Retrenchment               The client will develop a plan to mitigate the adverse impacts of retrenchment,
                                     if layoffs are expected to be significant.
          Grievances                 The client will provide a grievance mechanism for workers. The mechanism
                                     should be transparent and well understood, and should address concerns
                                     promptly at an appropriate level of management. The mechanism should note
                                     delay or impede other remedies available under law or in the context of
                                     existing arbitration procedures.
          Protecting the Workforce
          Harmful Child Labour       The client will not employ children in a manner that is exploitative, harmful,
                                     hazardous, or which interferes with education. National laws will apply where
                                     applicable, but children under 18 will not be employed in dangerous work.
          Forced Labour              The client will not employ forced labour, which includes non-voluntary work
                                     extracted under threat of force or penalty. This covers indentured and bonded
                                     labour.
          Occupational Health and Safety
          Health and Safety          The client will provide a safe and healthy work environment, taking into
                                     account inherent risks and hazards. Steps will be taken to minimise accidents,
                                     injury and disease arising from, associated with or occurring in the course of
                                     work. In line with international best practice, the client will address
                                     identification of hazards, preventative and protective measures, training,
                                     documentation and reporting, and emergency response.
          Non-Employee Workers, Contract Labour and Supply Chain
          Non-Employee Workers,      The client will apply the requirements of PS 2 to non-employee workers
          Contract Labour and        directly contracted by the employee (except for provisions under HR Policy
          Supply Chain               and Retrenchment). The client will use commercially reasonable means to
                                     ensure the appropriate performance of other contractors or intermediaries, and
                                     will address harmful child labour and forced labour where evident in the
                                     supply chain.

         IFC PS 4 carries health and safety through to the community environment. The objectives of
         the Performance Standard are:

         •       To minimise and manage health and safety risks to local communities.
         •       To ensure that the project does not harm community health and safety.

         PS 4 requirements are summarised in Table 2.2 below:

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         Table 2.2: Requirements under IFC PS4.

                     Theme                                                Requirements
          Risk Assessment           The client will evaluate potential risks and impacts in the context of community
                                    health and safety (through all project phases) and will establish relevant
                                    preventive measures. Adverse risks and impacts must be disclosed, and
                                    engagement with affected communities and agencies is required.
          Infrastructure and        The client will design, construct, operate and decommission the structural
          Equipment Safety          elements of the project according to international best practice. Particular
                                    attention must be given to exposure to natural hazards, especially where the risk
                                    to communities is high. Design and operation of fixed elements such as tailings
                                    dams must be in the hands of qualified professionals. Where moving equipment
                                    will use public roads, the client will seek to prevent the occurrence of incidents
                                    and accidents.
          Hazardous Materials      The client will prevent or minimise the potential for community exposure to
          Safety                   hazardous materials. Where there is potential for community exposure, the client
                                   will develop measures to avoid or minimise such exposure. In the case of existing
                                   hazardous materials, the client will take special care on decommissioning to limit
                                   community exposure. Transportation of hazardous materials will be controlled to
                                   avoid or limit community exposure.
          Environmental Health     The client will prevent or minimise community exposure to water-borne, water-
          and Natural Resource     based, water-related or vector-borne disease that could result from project
          Issues                   activities. Where these are endemic, the client is encouraged to assist with the
                                   reduction of incidence. The client will avoid or minimise the exacerbation of
                                   natural hazards such as landslides and floods. Adverse impacts on soil and water
                                   resources will also be avoided or limited.
          Communicable Diseases    The client will prevent or minimise transmission of communicable diseases that
                                   may be associated with the influx of temporary or permanent project labour.
          Emergency Preparedness   The client will assess potential risks arising from project activities, and will
          and Response             inform affected communities of significant hazards in a culturally appropriate
                                   manner. The client will assist and collaborate with local government and
                                   communities to prepare responses to emergency situations. Where local
                                   government capacity is insufficient, the client will be responsible for emergency
                                   response. The plan will be documented and disclosed to affected communities
                                   and relevant government agencies.
          Security Personnel       Where employees or contractors are used to provide security, risks posed to those
                                   outside the project site will be assessed. International best practice will be applied
                                   to hiring, training and mobilising security staff. The client should seek to ensure
                                   that security personnel have not been involved in atrocities, and are adequately
                                   trained. Force will only be sanctioned in preventive or defensive circumstances in
                                   proportion to the threat. Security will operate within the law. A grievance
                                   mechanism should allow communities to express concerns.

2.5      FQM Policies

         FQM has developed several policies relevant to its sphere of influence (see Appendix 1).
         These policies apply to KMT and its operations, and include the following:

         •   Environmental Policy.
         •   Community Development Policy.
         •   Health and Safety Policy.
         •   Employment Policy.
         •   HIV/AIDS Policy

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         The policies and procedures outlined in this document are founded and will operate under the
         Employment and Health and Safety Policies. The Community Development Policy is
         relevant in the case of community health and safety.

         •       The employment policy codifies FQM’s commitment to protecting the health, wellbeing
                 and safety of its employees and to adopting employment practices that are fair, non-
                 discriminatory and transparent. It also confirms that the Company will adhere to all
                 DRC employment laws, regulations and guidelines that are applicable to its projects.
                 Specific provisions address diversity, communication, transparent recruiting, training,
                 health screening and monitoring.

         •       The health and safety policy is linked to the employment policy. It commits the
                 company to the development of a Health and Safety Programme, in accordance with
                 local legislation, lenders’ requirements and international best practice. Thorough and
                 technically sound health and safety protection measures will be developed and put in
                 place at the earliest stages of project development, through exploration, development,
                 operation and closure. Specific policy goals address communication, surveillance,
                 training, health screening, awareness and emergency preparedness and monitoring.

         •       The community development policy states FQM’s commitment to health and
                 community-related laws and best practice. It lists the provision of a community nursing
                 function and a health advisory programme among specific policy objectives.

         The FQM policies will apply at all sites under the control or influence of the company. The
         detailed labour and working conditions policies and practices that follow represent a KMT-
         specific extension and elaboration of the core FQM policies.

                                                   Annex A                                     April 2008
SRK Consulting                                                                                   Page A.10

 3       KMT Labour and Human Resources Plan
3.1      Context

         The KMT human resources policy and procedures have been captured in a guideline
         document. This section draws extensively from the guideline, presenting an overview of the
         material contained therein. The intention is to capture the spirit and intent of the policies and
         procedures, without delving too deeply in the operational details.

         The KMT Human Resource Management Procedure and Policy Guideline focuses
         specifically on national employees, as does the discussion below. Expatriate employee terms
         and conditions are to be defined in a separate guideline document. The general DRC
         conditions applying to the employment of expatriates are presented in Appendix 3. KMT
         will give first priority to hiring qualified local people, and it is expected that the great
         majority of employees in all phases will be DRC nationals.

3.2      General Conditions of Service

3.2.1 Employment Contracts

         Four categories of employment contract are envisaged:

         •       Daily contracts, which will apply to employees recruited for daily casual-labour
                 requirements. The contract may not exceed 22 working days in a two-month period. If
                 it does, the agreement will become an open-ended contract with associated obligations.

         •       Fixed-term contracts, which will apply to a specified term. The contract cannot be
                 terminated by KMT during the term of employment, other than during the probationary
                 period, or for causes based on serious misconduct. Fixed-term contracts must state the
                 work to be undertaken and the duration of the contract. If not, the agreement becomes
                 an open-ended contract with associated obligations. The maximum length is two years.
                 If work continues and there is no formal renewal, the contract becomes open-ended.
                 FQM is in the process of finalising contracts with three local DRC labour brokers that
                 will provide labour for the construction phase. They will be fixed term contracts with
                 the companies from 1 April 08 to March 2010. As the construction period draws to
                 close, the good artisans will be absorbed by KMT as permanent employees.

         •       Defined-scope contracts; FQM has defined scope contracts with Labour brokers within
                 Indonesia and the Philippines for the employment of the estimated 400 Filipino’s and
                 Indonesians who will be hired for the construction phase. When the scope is completed
                 the artisans will be moved by their agency to another job. If the scope changes along the
                 way, i.e. if construction continues past the agreed date, or if additional work is added
                 the labour broker company is notified well in time and agreed.

         •       Open-ended contracts, which will be the typical form of contract for Congolese staff
                 hired on a permanent basis. The minimum age is 18 years. A probation period will
                 apply to all open-ended contracts. Specific termination arrangements will apply. These
                 are outlined in Section 3.2.5 below.

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SRK Consulting                                                                                    Page A.11

             •    Independent Contracts are simplified contract agreements specifying the task and the
                  payment due on completion. Independent contractors are not KMT staff, and apart
                  from contractually agreed provisions, there will be no benefits.

         All safeguards in DRC law and international best practice will be applied to contracts,
         including provisions relating to child and forced labour. The contracting arrangements
         described above ensure the full documentation of working arrangements. Contractual
         arrangements will always be clearly communicated.

3.2.2 Working Hours

         Normal working hours will not exceed nine hours per day or 45 hours per week. Normal
         working hours and a duty-shift schedule will be established and made known to employees.
         Key elements of the working hour’s policy are the following:

         •       Standard office hours for non-shift duty will be 8h00 to 5h00 Monday to Friday, with a
                 lunch break between 12h30 and 13h30. Times may vary from department to department.

         •       Shift duty will be defined in duty rosters. A three-shift system will apply, and employees
                 should not work less than an average of 43 hours per week. The maximum number of
                 hours per week should not exceed 60, including overtime. A 48 hour off-duty period
                 must be allowed for every 7 days of work. Night shift duty will be compensated.

         •       Overtime is work done outside the normal daily and shift hours, or on the weekly rest day
                 or public holidays. A supervisor must request overtime. Overtime compensation will
                 vary between +30% (normal overtime) and +100% (work on the weekly rest day).

         •       Construction workers hired via labour brokers (Indonesians, Filipino’s and Congolese)
                 will work 13 days on and 1 day off in a two week cycle.

3.2.3 Leave

         Paid leave will include annual leave, sick leave, maternity leave and compassionate leave.
         The general provisions in the four cases are:

         •       Staff at all levels is entitled to annual leave days for each full year worked. The period
                 will vary between 24 and 30 working days per full year of service (for different
                 employment categories) and will be increased by two days for every five years worked.

         •       Staff with fixed-period contracts of more than six months and staff with open-ended
                 contracts are entitled to sick leave after three month’s continuous service. The first 10
                 days will be at full basic salary, reducing in ten-day increments thereafter. If the
                 employee is unable to resume work after 30 continuous working days, the contract will
                 be suspended for temporary leave of absence. If the suspension is work-related, two
                 thirds of the wage and the full child care allowance will be paid for a period not
                 exceeding six months.

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SRK Consulting                                                                                       Page A.12

           •      A woman employee who has become pregnant and who has been employed for a
                  continuous period of no less than six months is entitled to maternity leave. If not
                  employed for six months at the expected date of birth, the woman will be entitled to
                  leave without pay. A woman employee will be entitled to a maximum of 14 consecutive
                  weeks, with a maximum of 8 after childbirth.

           •      After three months of continuous service, fixed and open-ended contractees are entitled
                  to between two and five days of compassionate leave per annum, depending on
                  circumstances.

3.2.4 Medical and Health Care

           KMT will provide employees and their family’s 2 access to medical and health care facilities
           and services. The main provisions of the medical and health care policy are the following:

           •      Access to Kolwezi clinic and hospital facilities for KMT employees and their family
                  members, upon presentation of a medical ID card. This will entitle the holder to free
                  medical and dental attention and prescribed drugs. Yearly limits based on Ministry of
                  Health tariffs will apply for spectacles, orthopaedic devices and prostheses.

           •       New Employees or potential employees living with HIV / AIDS will work or pursue
                  work without discrimination. Confidentiality will be respected. Voluntary counselling
                  and testing will be promoted among all KMT employees. KMT will bear the cost of
                  treatment in Kolwezi for employees, if the employee has completed probation and six
                  months of services, and if the employee and/or immediate family have undergone
                  voluntary testing and counselling, and have disclosed HIV status to the KMT doctor

           •      A health dispensary within the plant will provide first aid and emergency care as well as
                  preventative care for all employees. In acute situations, the patient will be transferred to
                  hospital. Severe and life-threatening situations may require evacuation to a larger
                  medical centre.

           •      Employees and family members with conditions that cannot be treated in Kolwezi may be
                  referred to a Lubumbashi hospital.

3.2.5 Termination of Employment

           Termination of employment contracts will be governed by strictly enforced procedures, in
           compliance with DRC laws and international best practice. Termination may occur in the
           following situations:

          •       At the end of a fixed-term contract.

              •   At the will of the employee, for example in cases of retirement and resignation.

2
    To be carefully defined.

                                                         Annex A                                     April 2008
SRK Consulting                                                                                          Page A.13

          •      At the will of KMT, in one of the following situations: dismissal during or at the end of
                 the trial period; dismissal by issue of notice of termination or payment in lieu of notice;
                 dismissal due to disciplinary reasons; dismissal due to economics, reduction of activities,
                 restructuring, or closure. The last situation is one of redundancy / retrenchment.

         KMT cannot terminate an open-ended contract for the following reasons:

         •       Race, gender, political opinion, maternity and/or family responsibilities.
         •       Being a member of a union or participating in union activities.
         •       Having lodged a complaint against the employer.

         Redundancy is governed by several requirements in DRC labour law. It is also given special
         attention in ILO and WBC conventions and safeguards, including the IFC’s PS 2. The KMT
         policy and procedure for redundancy has the following elements:

         •       The area Labour Officer must be informed of the reasons for and the extent of the
                 redundancy prior declaration of such redundancy (whether individual or collective).

         •       The Labour Inspector must grant an authorisation within two months of being notified.
                 If a decision is not forthcoming, the authorisation is considered granted.

         •       For cases of massif 3 dismissal the authorisation must be granted by the Ministry of
                 Labour. The Labour Inspector must ensure that process is duly followed.

         •       Any employee laid off for economic redundancy keeps employment priority for the
                 category of work for a period of one year.

         KMT will inform and counsel employees prior to closure, as part of its closure planning.
         Targeted training will prepare employees for redundancy, addressing topics such as life and
         entrepreneurial skills.

         All employees with six-month or more fixed contracts or open-ended contracts will be
         eligible for severance pay. This will be calculated according to a formula which is based on
         salary at the time of severance and length of service.

3.3      Recruitment Procedures

3.3.1 Expectations and Transparency

         KMT recruitment policy and procedure recognises the need for cultural sensitivity, fairness
         and transparency. It seeks to prevent dissatisfaction over access to jobs and perceptions of
         bias. Non-discrimination and equal opportunity principles will be applied to recruitment,
         monitored by the Human Resources Department and the recruitment / selection team.

3.3.2 Recruitment and Selection

3
 Defined in DRC labour law. Refers to dismissals of around 20% in small companies (for example four employees
among 20) and 5% in large companies (for example 300 employees among 6000). A sliding scale applies between these
extremes.

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SRK Consulting                                                                                    Page A.14

         During construction, FQM will hire construction workers via labour brokers (see 3.2.1).
         Around 400 Filipino’s and Indonesian are being hired via Labour brokering companies in
         their home countries. Around 600 Congolese artisans will be hired via local Labour Brokers
         with whom FQM has signed a contract.

         The recruitment and selection course of action is designed to provide a clear and simple
         sequence of steps for flexible recruitment whilst ensuring a transparent and fair process and
         clear communication of relevant information. The main steps will be the following:

         •       Advertisement / Vacancy Announcement. Vehicles will include appropriate bulletin
                 boards, local radio and the local and national press. The content of a vacancy
                 announcement is specified. Employee referral may be a good source of candidates, but
                 strong and meticulous transparency will have to be applied in such cases.

         •       Development of Selection Criteria. These must be: designed to provide evidence of the
                 required capabilities; documented and transparent; effective and equitable; free from
                 conflict of interest.
         •       Deployment of Recruiting and Selection Teams. The composition of the teams must be
                 sensitive to ethnic representation. Ideally teams should include a mix of people who are
                 representative and credible. Among the members of the team should be a person who
                 understands the job and a person trained in recruitment and principles of equity. A
                 gender balance should be sought where possible.

         •       Processing Applications. Applications will be received in a well-designated location,
                 easily accessible and free form interference or tampering. Anyone is entitled to submit an
                 application. The applications will screened and narrowed to a short list by the selection
                 team, based on clear criteria.

         •       Interview. Interviews will be well organised beforehand. Candidates will be informed
                 about the interview process, including forms to be filled in by interviewers in the course
                 of the interview. In general the interviewers must be open-minded, neutral and ready to
                 listen.

         •       Offer of Employment. A formal job offer with terms of employment will be made
                 available to the successful candidate for review. All offers of employment will be made
                 subject to a satisfactory pre-employment medical examination, the purpose of which is to
                 ensure that the candidate is physically fit to perform the duties of the position.

         The HR department will undertake formal contracting following recruitment and selection.

3.4      Remuneration and Compensation Procedures

3.4.1 Remuneration

         Employees will receive remuneration for the performance of their contracts. This is
         composed of a salary or wage, and of benefits and allowances. The salary component is
         determined by a basic salary in a salary grid, and is affected by seniority and cost-of-living
         adjustments. Position and work classifications are aligned with DRC regulations, as defined

                                                    Annex A                                       April 2008
SRK Consulting                                                                                    Page A.15

         in the Regulation of Wages Décret no 080/2002 dated July 3, 2002. KMT will ensure that
         employees understand how salaries are set and how increases will be determined.

         Additional responsibility will be remunerated in clearly defined circumstances. These
         include “acting” positions, “in-charge” positions, hardship positions and in situations where
         there is extra cash handling responsibility. All deductions will be made within the DRC legal
         framework, and will be transparent and well communicated.

         As for the workers hired via labour brokers, FQM has signed contractual agreements with the
         brokers setting the rates for the various degrees of employees, so as to make sure the workers
         get paid according to the FQM standards.

3.4.2 Benefits

         The benefits to be made available are either taxable or non-taxable:

         •       Taxable benefits will include an annual gratuity, severance pay (see Section 3.2.5), a
                 salary adjustment in case of temporary incapacity, an indemnity in case of death and
                 salary advances. The latter will only be granted in exceptional circumstances.

         •       Non-taxable benefits will include the following allowances: family and child care;
                 housing; transport and child education.

         Details of all benefits (including eligibility) are clearly laid out in the KMT HR policy and
         procedure guideline.

3.5      Training and Development Policy

3.5.1 Types of Programmes

         KMT will encourage all employees to pursue occupational excellence. It will also ensure that
         employees have the skills, knowledge and ability to perform the assignments entrusted to
         them. There will be four types of training programmes:

         •       In-house training provided by KMT.           This will enable employees to improve job
                 performance and to develop.

         •       External task-oriented training addressing the skills required for specific technical,
                 mechanical, clerical or administrative jobs.

         •       Educational incentives that will assist employees to continue with formal education.

         •       Access to conferences, seminars, workshops and courses (par of an advanced external
                 programme) will be offered to specified categories of employees, to assist them in
                 maintaining and building expertise in their profession.

3.5.2 Eligibility

                                                    Annex A                                       April 2008
SRK Consulting                                                                                 Page A.16

         Information regarding access to training will be distributed to all employees. Employees can
         apply for in-house and task oriented training and educational incentives, supported by a
         supervisor. A Selection Committee (comprising the resource optimisation manager, the
         training manager, and the manager of the relevant line department) will review applications.
         Employees in categories eligible for participation in the advanced external programme can
         submit applications to the Selection Committee. The Committee will also meet all
         applicants. All applicants will get a written notification of the decision.

3.6      Dispute Settlement Procedures

3.6.1 Dispute Resolution and Cultural Difference

         The nature and resolution of disputes is complex in culturally diverse environments. This is
         so because there are different views on making a complaint, and on the issues underpinning
         the complaint. The KMT dispute settlement procedure will be sensitive to the complexities
         and will seek to reduce barriers where these exist.

3.6.2 Informal Resolution

         Wherever possible, disputes will be resolved through interaction between the complainant
         and the respondent. If necessary, a facilitator can be called to assist with mediation.

3.6.3 Formal Resolution

         Where complaints cannot be resolved informally, they will be subject to a formal process of
         resolution. The essential elements of the process are the following:

         •       Formal written complaints must be submitted to the relevant supervisor or to the
                 Resource Optimisation Manager. Receipt must be acknowledged in writing.

         •       The complaint must be investigated in the framework of a specified procedure, and the
                 investigation must be documented. Complaints can be withdrawn in writing by the
                 complainant. If the investigation concludes that the complaint is ill-founded, the
                 Resource Optimisation Manager will be called on to make a judgement in this regard.

         •       The Resource Optimisation Manager or a designated mediator may propose a solution
                 and allow the complainant and respondent to comment.

         •       The Resource Optimisation Manager or the mediator will inform the complainant and
                 respondent of the resolution. If no response is received from the complainant after 20
                 working days, the complaint will be considered formally concluded.

3.7      Policy on Rights of Association and Bargaining

         KMT will comply with the provisions of ILO Conventions 89 and 98 in this context. It will
         also honour the DRC Labour Code provisions relating to union formation and membership,
         the right to organise, the right to bargain collectively and the right to strike (see Section
         2.3.3).

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SRK Consulting                                                                               Page A.17

         With or without unions, KMT will encourage and facilitate structures representative of
         workers and worker interests, and will provide procedures for these structures to
         communicate with supervisors and managers. Participants will not be subjected to
         discrimination, and viewpoints and problems raised through the representative structures will
         be considered and discussed in a defined and transparent manner.

                                                Annex A                                      April 2008
SRK Consulting                                                                                    Page A.18

4        KMT Health and Safety Framework
4.1      Background and Policy

4.1.1 Statutory Requirements

         All applicable workplace and community legal requirements applicable to the Kingamyambo
         Musonoi Tailings Project have been taken into consideration in the development of the
         Health and Safety Framework and associated Plans.

         KMT undertakes to conduct legal compliance audits on a regular basis in order to ensure all
         statutory requirements are met. An initial compliance audit will be conducted after 12
         months. Follow-up audits will be done on an annual basis or as significant changes in
         applicable legislation requires such. This is line with the FQM policy, International Finance
         Corporation’s Performance Standards and guidelines for health and safety, and good
         corporate governance principles.

4.1.2 Policy Statements

         KMT subscribes to a health safety policy that will as a minimum meet or exceed all DRC
         legal requirements and will be in line with international good practices. The main objective
         of the policy is to set the direction of the KMT management team for the management of
         safety on the Project, in the workplace and among affected communities. The policy
         emphasizes the commitment by senior management to sustainability and specifically the line
         management responsibility for ensuring a healthy and safe working environment for all
         employees and communities in which the project will be executed.

         The policy will be communicated to all project employees as part of the induction and
         training prior to commencing work on site so that they fully understand their personal
         obligations in terms of the policy. During the construction phase, contractors and
         subcontractors are required to communicate their internal safety policies as well as those of
         KMT with their employees during the site induction.

4.1.3 Project Health and Safety Statement

         The following are specific policy statements applicable to the Framework and the two Health
         and Safety Plans:

         •       KMT is committed to providing a safe and healthy environment for all employees,
                 contractors, suppliers and the community during construction, pre-commissioning and the
                 operational phase of the project.

         •       KMT will adopt sound health and safety practices in line with international best practice
                 and will provide all necessary training and support to achieve this goal through effective
                 implementation of the Health and Safety Management Plans.

         •       The objectives and targets facilitate the management and implementation of health and
                 safety on the project. These objectives are achievable through a concerted effort by all

                                                    Annex A                                       April 2008
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