SAFETY PERFORMANCE

For more than a decade, BlueScope Steel’s safety focus has been on Zero Harm. We have now reached a point where we incur less than one injury resulting in lost time for every million hours worked. This Lost Time Injury Frequency Rate (LTIFR) represents a 40-fold improvement since our drive for safety began. These efforts have lowered the likelihood of injury for a considerable number of people. In the global steel industry, our safety performance is often cited as a benchmark and we are widely recognised as a leader in this area.

In a year of multiple and significant challenges, our safety performance was very good. In FY09, the Company undertook one of its most critical and essential projects, the reline of the No. 5 Blast Furnace, and our Lost Time Injury Frequency Rate remained below 1 for the fifth consecutive year.

This result is world best practice in the global steel industry. During this year, BlueScope Steel was awarded the Safety & Health Excellence Recognition Award from the World Steel Association.

We also achieved a record low level Medically Treated Injury Frequency Rate, which includes our newest businesses.

Effective safety performance depends on very high levels of employee participation. All employees across the Company worked hard to look after themselves and their colleagues and in doing so, achieved this world best practice result.

During the year, there were a number of excellent safety performances and in some cases, new records were reached.

Asia

Our Asian businesses have very high safety standards and continued to achieve a very positive result this year. BlueScope Steel Thailand passed 23 million hours without a Lost Time Injury (LTI) and Lysaght Thailand reached five years LTI free. Malaysia Kapar set a new record in achieving 21 months without a Medically Treated Injury (MTI). BlueScope Steel Malaysia also was awarded the OSH Gold Class II Award from the Malaysian Society for Occupational Safety & Health.

A new milestone was reached by Vietnam Phu My of three years MTI free and the operation attaining one year Zero Harm. For the first time ever, our Indonesian business experienced no LTI or MTI for the year. In China, Suzhou surpassed their previous record and achieved four million hours LTI free and one year MTI free.

North America

This year, North America Buildings business in Laurinburg and San Marcos both achieved four years LTI free. The San Marcos operation received the Gold Safety Award from the Metal Buildings Manufacturers Association for an injury rate less than 50 per cent of the industry average.

Both the Visalia and Liberty operations celebrated 1 year MTI free. Fairfield site, part of the Steelscape business reached 2 years LTI free, while the Anchorage facility, part of the ASC Profiles business has now reached nine years LTI free.

Australia and New Zealand

During the year, the No. 6 Blast Furnace operation set a new record of three years LTI and MTI free. Mills & Coating, Plate Mill and Metal Painting and Finishing departments had one year LTI and MTI free. For the first time in its history, Western Port achieved an MTIFR of less than one.

New Zealand Steel and Pacific Islands reached one year LTI free. This business won the National OH&S Award for Load Restraints training.

In the Australian Distribution and Solutions business, Sheet and Coil Processing Services reached two million hours LTI free. Acacia Ridge achieved one year MTI free and Mareeba and Gold Coast, part of the Distribution business, were eight years and seven years MTI free respectively.

Australian Coated Industrial Markets had its best ever performance with 1.7 million hours LTI free. Supply Chain and Logistics achieved one million hours LTI free and No 2 Products Berth was two years injury free and 15 years LTI free.