Health, Safety & Environment

The health and safety of the Group's employees and strict adherence to environmental compliance are of paramount importance, and Avocet recognises its responsibilities in these critical areas (HSE). The Company ensures that a culture of continuous improvement exists across all of its work locations through the use of hazard identification systems and individual departmental audits. Its executive committee members use each visit to Avocet's mines, development or exploration sites as an opportunity to discuss HSE issues. The Group's local management will immediately report any incident, breach of HSE regulation, or change in local regulations to the Chief Executive Officer who will immediately inform the board as necessary. Safety efforts are underpinned by ensuring that:

• Procedures and work practices are regularly reviewed and updated;
• Protective equipment is correctly maintained and properly used;
• Safety is a measure of individual, departmental and site performance;
• Staff are adequately trained in first aid, health issues and emergency response;
• Positive encouragement is given toward safety awareness and initiatives;
• All incidents are promptly reported, assessed and actions taken;
• Regular workplace inspections and audits are conducted; and
• Regular safety inductions, meetings and training are provided.

Community Relations

Burkina Faso

Avocet Mining is committed to the Inata mine being the catalyst for an enterprising and more sustainable economy for local people and communities within the area. Avocet will build on the relationships that have been forged with all stakeholders and will continue its work in developing the medical facilities and educational programmes that are the key initiatives in improving the standard of living of local communities.

Inata is located in one of the poorer areas of Burkina Faso, a country which is rated low in the Human Development Index of the United Nations Development Programme. The mine is already the main source of employment in the Inata area and is expected to create further, indirect employment as supporting enterprises grow up to service the operation and its employees. This will provide an opportunity for the company, the community and government to work in partnership to create a broader, more sustainable economy than the largely pastoral and subsistence economy that currently exists. A stronger economy will in turn support advances in education for those who would otherwise be unable to attend schooling, and in access to health care for people in these remote communities.

Inata has a dedicated Community Relations Department which provides the interface between mine management and the communities in various nearby villages. This department works closely with all stakeholders to provide effective and meaningful communication between management and local community leaders, and to identify mutually agreed upon development projects which will be of benefit to the communities.

Malaysia

Penjom continues to put great emphasis on nurturing good relationships with its local community of Kuala Lipis. It supports and participates in community activities involving hospitals, schools, sports and social events. The infrastructure in the Kuala Lipis community around Penjom is generally good but where further development is needed in the district, the mine assists wherever possible.

Penjom participates in a variety of fund raising activities organised by government and non-governmental agencies in the district, such as the funding of a dialysis machine for Lipis Hospital. The Company organises blood donation days and encourages its employees and contractors to donate blood as part of an ongoing relationship with the hospital.

In the field of education, financial support is provided to the local schools as a priority. Penjom's commitment to education has helped several schools in the Lipis District to organise annual exam preparation and motivational camps. Local schools continue to receive contributions towards their sports days and other extracurricular activities. The Penjom mine also receives and trains several university students as part of their practical industrial training in various disciplines. Assistance is also provided to local and overseas students to undertake elements of their post graduate studies at Penjom. Several professional bodies such as the Malaysian Institute of Mining and Metallurgy, the Geological Society of Malaysia and the Malaysian Quarries Association have chosen Penjom as the field trip destination for seminars and forums they have organised.

Penjom provides assistance to new local hard rock mines in the environmental control required by the Department of Environment, especially with respect to cyanide management and rehabilitation. Government agencies such as the police force also request guidance in cyanide management.

Other community events also benefitting from Penjom's support include the annual Lipis Carnival, and sports activities organised by the District office, police and armed forces based in Lipis. Penjom also participates in football, badminton and golf friendly matches and other tournaments organised by local sports bodies.

Indonesia

During the year the role of community relations within Indonesia was expanded to include exploration areas as well as North Lanut and Bakan. Initial work on each site is conducted through a baseline study to allow a better understanding of the stakeholders within the community and the government groups. Following this, Avocet then forms a Community Consultative Committee (CCC) in partnership with representatives from all stakeholder groups at each location, including the security forces. The CCC aims to ensure that Avocet is aware of and understands the specific needs and aspirations of all local community stakeholders, in order to work constructively towards a sustainable future. At each monthly CCC meeting programme suggestions are presented to Avocet, and Avocet and the community representatives work together to prioritise projects and make a joint commitment to complete certain projects before moving on to others.

Avocet has a number of ongoing community related initiatives, including:

• Ongoing maintenance and improvement of roads and infrastructure around surrounding villages;
• Assisting villagers and government when natural disasters occur such as flooding and subsidence;
• Supplying clean water supply systems;
• Providing assistance to agricultural groups both directly and by enlisting university professionals. One example of the programme has seen the corn yield per hectare increase by approximately 400 per cent;
• Establishment of a chilli farm project;
• Construction of a fish farming project at the Jiko port area; and
• Continuation of the mosquito eradication programme in the villages.

An assistance scheme is in place to support 200 orphans and handicapped children through supply of food and buildings and through chicken programmes. Avocet has two orphans who are fully sponsored to attend the local Kotamobagu University for forestry degrees. In addition, a member of the Pononiungan orphanage has joined Avocet as an apprentice in the North Lanut mine workshop.

The mine site community relations teams continue to monitor local villages and provide support to underprivileged groups. Examples of the support programmes already in place include:

• Full education sponsorship of 70 school children;
• Assistance to low income families by providing basic foodstuffs (rice and other staples) and scholastic support where required through a monthly payment;
• Completion of two separate programmes of free medicals and vaccinations for over 1,000 adults and children at both Bakan and Lanut areas through the local doctors who identify the treatment and vaccinations that are required; and
• Provision of computers, chairs, desks and books to local schools and government groups.

The socialisation of Avocet's community relations programmes is promoted and communicated through the local television station and two local newspapers. Avocet also produces a monthly news bulletin that is distributed to provincial, regional and local stakeholders.

During 2009, the North Lanut mine continued to receive a number of recommendations from government and a local university under a partnership established to monitor and assess the social and economic impact of the operation's activities. These recommendations have been incorporated into the operation’s ongoing programmes.

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