Risk Management

OZ Minerals is exposed to numerous risks across its business, most of which are common to the mining industry. The company’s commitment and approach to managing these risks is outlined in the company’s Risk Management Policy and is available at www.ozminerals.com.

Both the Sustainability Committee and Audit Committee assist the Board in monitoring the company’s risks.

The Sustainability Committee monitors the company’s non-financial risks. The Committee receives reporting on the control mechanisms which are designed and implemented by management to ensure that the safety, environmental, legal and reputation risks faced by the company are identified, assessed and managed.

The Audit Committee monitors the company’s financial risks. The Audit Committee reviews and assesses the adequacy of the company’s internal control and financial management systems and accounting and business policies. The Audit Committee is given further assurance on the company’s financial management systems through the company’s independent internal audit function.

The company has an internal audit function that assists with the identification and control of financial risks of the company. For more information see the audits section of this report.

Senior management are responsible for risk management in their respective areas of accountability. They ensure that procedures exist to monitor risks and, through observation and audit, gain assurance that effective controls are implemented and consistently applied.

The heritage risk management frameworks that operated for Zinifex and Oxiana continued in operation for 2008. Both frameworks apply enterprise wide, thereby considering risks from all sources. They are supported by risk management systems that record the risks identified, their rating, associated controls and follow up actions.

The Board has recognised the need to implement a common risk management framework across the group. The company is in the process of developing this framework and it will be rolled out during 2009. This process includes the implementation at all sites of the company’s Sustainability Standards. These are a comprehensive set of standards that provide a systematic approach to the management of safety, health, environmental and community related risks.