To achieve safety excellence, we must create, maintain and continuously improve a long term culture in which (1) employees look for and help management minimize safety risks in the workplace, (2) are familiar with the potential hazards and how to control the hazards of every job they do, (3) are motivated through self-discipline or peer pressure to consistently follow established safe and healthy work practices with or without direct supervision, and (4) actively participate in assuring that coworkers also maintain the highest standards of safe work. While the systems and activities that are required to achieve these goals are by no means simple or cost-free tasks, companies worldwide have demonstrated that managing proactively for safety excellence is achievable, sustainable, and pays organizational effectiveness dividends that are well worth the investment.

Qualitative goals include maintaining the Company’s ability to operate through a safety management system that contributes to the success of the business through gains in productivity, reliability, efficiency and organizational effectiveness. The system provides enhanced morale, involvement and teamwork, the continuous improvement of work practices and the reduction of human error, and cost control through asset protection and efficient conservation of human resources.

We have five priorities. These are to implement improvements in the basic control programs for (1) Safety Leadership and Commitment, (2) Safe Work Practices and Procedures, (3) Safe Work Environment, (4) Information and Communication, and (5) Contingency Management.

Eight strategies have been developed to deliver our priorities. Within each strategy are systems, standards, training and defined accountabilities.

Our first strategy within our plan is to develop safety leadership and commitment and to energize managers and employees to be champions of safety. We focus on senior management participation and visibility, performance standards, accountability and measurement for all managers and supervisors, promoting safety awareness at all levels, development of leadership and administration teams and employee involvement.

Our second strategy is to do the right things the right way every time through enhanced work practices and procedures. The strategy will be delivered through the completion of critical task analysis, orientation training, task and behavior observations and compliance to rules and regulations. Detailed performance standards will be implemented to create accountabilities and methods to measure performance.

Our third strategy is to establish a safe work environment by continually inspecting workplaces, reviewing procedures and updating equipment to ensure the environment and procedures are of the highest standards. Standards and policies are being developed to establish purchasing controls, inspection and maintenance programs, health and hygiene controls and ergonomics.

Our fourth strategy is having the right information in a timely manner in order to make sound recommendations, take action and follow-up on specific safety issues. This is accomplished through data base management and trend analysis, remedial action tracking, feedback systems, orientations, personal contacts, safety meetings and general safety promotions. Standards will require senior management to routinely communicate safety as their personal value.

Our fifth strategy is contingency management. Contingency management is planning for and responding emphatically to the needs of the employees, our customers, the company and communities. We will accomplish this through assessing and monitoring the level of risk, implementing effective emergency preparedness and response plans, establishing systematic accident/incident reporting, investigation, analysis and follow-up.

Our sixth strategy is to create and celebrate short-term wins. We will search out and celebrate the employee behaviors that we want to encourage. Safety goals and objectives will be challenging yet obtainable and encourage continuous improvement. Near-miss accidents will be viewed as an opportunity for managers to be made aware of hazards in the workplace regardless of the reported injury rate. Cost-efficient awards programs will recognize and congratulate excellence with public praise.

Our seventh strategy is to anchor new practices to assure a long-term safety culture. We will assure professional staffing of safety and health technical support functions. We will implement information systems to support documentation of daily safety management tasks. We will provide safety management education early in the careers of all new operations supervisors and managers. We will achieve long-term success by (a) senior management’s leadership of safety as a company (or personal) value; (b) clear line management responsibility and accountability for the safety of the workforce; (c) providing a safe workplace through engineering controls; and (d) management systems that engage minds of workers to provide the motivation to work in the safest possible manner.

Our eighth and final strategy is to assure a long-term view. We will participate on external groups that could affect our future ability to operate. These groups currently include the MARG Diesel Coalition, National Mining Association, Nevada Mining Association and cooperative efforts with MSHA and NIOSH relating to noise reduction and diesel particulate matter. We will merge health management systems into the Stillwater Mining Company safety system to control known potential health risks and minimize liabilities of unknown potential health risks. Initially, the program focus will assure that exposures to noise and diesel particulate matter are in compliance with voluntary standards and mandated regulations. We will maintain employee exposure documentation to minimize long-term legal liabilities and maintain regulatory compliance. Such a management system will help assure that safety and health management at all operations remains a core value and will not be affected by changing business priorities.