Kyrgyz Republic

OCCUPATIONAL HEALTH AND SAFETY

Centerra is committed to operating the Kumtor mine in a healthy and safe manner for all employees, with standards equal to or exceeding local and world requirements.

Safety elements have been incorporated into the design and operational procedures of the mine. The open-pit operation is carried out under safe blasting procedures. Slopes are designed with a 1.2 failure factor and stability is constantly monitored for safety as well as for optimum design. Pit design has incorporated rock fall catchment berms. The haul road is constructed 25 metres wide to allow two haul trucks to pass safely. The road is equipped with proper safety berms on the steep side and drainage ditches. Waste is stockpiled over ice, and waste pile height is restricted to 90 metres to avoid slope instability. Dumping berms and procedures are in place to avoid incidents with equipment. A monitoring program is in place to ensure that waste pile face deformations due to shifting ground or weather conditions are properly addressed. Pit operators are trained in the safe handling of heavy equipment.

Process and effluent treatment facilities were designed to address issues of dust control, noise, hazardous chemicals, moving pieces of stationary equipment as well as potential electrical and fire hazards.

The camp complex, providing accommodation, kitchen, dining and recreation facilities, is equipped with smoke detectors, a sprinkler system and hand-held fire extinguishers. The transportation of materials and personnel, both on- and off-site, is undertaken under specific accident prevention and safety procedures that include speed limitations and control signs as required. Transport vehicle units and personnel buses are equipped with two-way radios for emergencies. All transport equipment units are under a preventive maintenance program. The mine site is under security with authorized entry policy enforced by specialized personnel.

At the mine site, one doctor and one certified nurse provide first aid, routine medical services and operate a fully equipped first aid clinic centre. Two ambulances, each equipped to accommodate a stretcher and containing appropriate medical supplies, are on standby at the mill building. Emergency medivac from the mine site is available as necessary.

All company and contractor employees are trained in the use of the Five Point Safety System and the Work Place Hazardous Information System before commencing work at the site. First aid, mine rescue and fire fighting training is provided at the site on a regular schedule. Full mine rescue and fire fighting teams are always available on site with current qualifications to address any emergency. The site is equipped with a fire truck. Hydrants were installed strategically throughout the major facility areas. Fire fighting equipment is stored at convenient locations, ready for use.

Kumtor's Safety Program has been audited internally on an annual basis and through two external reviews since 1999. The last external detailed review of the safety program took place in 2001 during the development of the formal Health and Safety Management System (HSMS) by Golder Associates. During the HSMS development process, a Hazardous Identification, Risk Assessment, and Control process was carried out with all Kumtor facilities and departments, resulting in a number of corrective actions being performed. Prior to this, James Pirie & Associates conducted an independent audit of Kumtor's safety program and workplace conditions in 1999 and concluded that Kumtor's occupational health and safety practices comply with sound international mining practices.

All safety and environmental initiatives are tracked through Kumtor's Corrective & Prevention Action Ledger system and are reviewed at site in morning meetings and on a monthly basis.

The accident frequency rate has declined from the range of 0.4 to 0.5 per 200,000 man-hours in 1997 through 1999 to a level of 0.2 in 2005. This is an excellent record which record, which compares favourably with large-scale open-pit operations elsewhere in the world.