Annual report and accounts 2012

Health and Safety

Our position

At Severstal, we believe leadership in the field of health and safety is key to our sustainable development and long-term success. In fact, improved safety is one of the company’s key performance indicators, crucial for the long-term competitiveness of the business.

Our Health and Safety Policy, signed by our CEO, guides our safety activities throughout all the companies, enterprises and production processes that together comprise Severstal. The policy states six fundamental principles:

  • Safe working conditions are a priority.
  • Health and Safety management is a key component of the Severstal Business System.
  • Workplace hazards must be identified and all accidents reported.
  • Employees should behave safely and responsibly.
  • We comply with all health and safety regulations.
  • Health and safety information must be clear and straightforward.

Our action

We remain fully committed to running a safe and accident-free business. Our goal is to achieve zero injuries and zero fatalities. To achieve this, we run a continuous safety improvement programme across all our operations, aiming to employ the best international health and safety practices and become the leading Russian company in this field.

This is the Labour Safety project, which we have developed as part of the Severstal Business System. The project aims to improve performance by involving all employees and reinforcing a culture of safety based on personal responsibility and recognition. The project is structured in three parts: providing safer working conditions, training, and engaging employees. An essential element of the Labour Safety project is a comprehensive audit and analysis, allowing us to monitor and compare standards and practices across the company, further helping us to improve health and safety performance.

Unfortunately, accidents still happen. In February 2013, we suffered a major accident in the whole history of Severstal. There was an accident involving an explosion at the Vorkutinskaya mine in Russia that resulted in 19 fatalities and 3 casualties and suspension of mining at the shaft. A specially established governmental Commission is investigating the cause of the accident. We are providing full support to the Commission. On behalf of all management at Severstal, we express deepest condolences to the families and friends of the miners who tragically died in an accident at the Vorkutinskaya mine. The health and safety of all employees across Severstal will always be our key priority.

 

In total, in 2012 we spent US$304.3 million on health and safety measures.

In 2012, we improved our safety record with an 8.4% decrease in our lost time injury frequency rate (LTIFR), compared to 2011. At Severstal Russian Steel, fifteen operations completed the year with zero injuries.

In 2012, we completed the introduction of our Labour Safety project at all Severstal Russian Steel operations.

Safety training is a crucial component of the Labour Safety project. We employ specialist safety trainers who train and develop line managers directly at production sites. In 2012, we trained around 1,500 line managers at the Severstal Russian Steel and Severstal Resources divisions as part of the project.

At Severstal International, the Labour Safety project started in eleven areas. As a result, our International operations demonstrated considerable improvement in LTIFR in 2012, which fell 32% compared to 2011.