Information Integrity

Kestrel is subject to public ownership materiality requirements and standards through our joint venture partners, even though Kestrel is a private company. Kestrel maintains a media and information release policy across our business.

Information presented within this report is supplied from various departments and individuals throughout the organisation. Requests for contribution are sent out to all areas of responsibility, and information is collated by the Sustainability team for inclusion within the report, with an ongoing review process to maintain accuracy. Information specifically relating to National Pollutant Inventory (NPI) and greenhouse gas (GHG) emissions required under the National Greenhouse and Energy Report Act 2007 (NGER Act), are assurance checked via third party or internal processes.

Risk Management

Kestrel understands risk management is a key part of operating a successful business. We are committed to proactive and effective risk management within all aspects and levels of the business. Our approach is consistent in how we undertake risk management processes for safety, environmental, social, business operations or climaterelated risks. The consistent approach seeks to provide business resilience and the sustainable protection of things we value including our people, community, customers, other stakeholders and the environment.

Material risks across the business are assessed, managed and mitigated via the application of appropriate policies and practices. These material risks are regularly reviewed to evaluate the progress and suitability of mitigation actions and updated as required.

Within the area of climate change, Kestrel have identified six key areas of risk to be managed:

„ Natural environment: temperatures, rainfall (water supply & intensity of events), flooding, fires, changing flora/fauna, rising sea level.

„ Social environment: changing stakeholders & shareholder expectations.

„ Changes in technology, energy sources and supply chains: steel makers, transport, materials.

„ Economic & institutional change: carbon net zero commitments, increasing requirements of governance, performance & reporting.

„ Finance & insurance landscape: increasing difficulty to access debt financing and insurance.

„ Rising litigation environment for coal miners in approval processes & climate change impacts to the future.

Kestrel continues to develop and evolve its overarching strategy to manage the potential and emerging impacts of the above climate related risks. We are actively engaged in addressing these climate change risks through implementation of our ESG strategy, minimisation of water use plus the focus on identifying and implementing options to reduce our carbon emissions. A robust strategy will deliver the foundations required to address the current key climate change risks and the ability to navigate future challenges as they arise.

Social

The Social dimension of our ESG approach refers to how we, as an organisation, manage relationships, create value and mitigate risks as we engage and collaborate with all our stakeholders. The social initiatives are primarily focused on creating positive outcomes for our employees, contractors, customers and the communities within which we operate.

At Kestrel we collaborate and engage with our stakeholders to provide clear, consistent and transparent communications, ensuring we are always acting with integrity and respect in fostering productive relationships. We bring this approach to life through our values.

Kestrel’s value of ‘We Are Committed’ embraces our commitment to care for our people, communities and environment; ‘We Are Respectful’ confirms we will act with honesty and integrity in all of our dealings with our stakeholders; and ‘We Are One’ incorporates our desire to work with our stakeholders’ establishing partnerships, that help us support each other to achieve mutually beneficial outcomes.

Health and Safety

Approach

Kestrel believes everybody deserves to return home safely every day. Kestrel is committed to providing a working environment where all our people, contractors and visitors are able to maintain sound physical and mental health. We will only reach our highest potential by instilling and supporting a safety mindset in everything we do and across our entire workforce.

Kestrel understands and promotes that attention to detail and engagement from all our people is required to achieve our health and safety commitments.

In 2022, Kestrel uploaded 111 formal risk assessments, 145 Job Hazard Analysis (JHAs) and 318 hazard identifications into the Safety Health Management System (SHMS), and completed 15,817 Take 5’s. It is through individual ownership of our own and our workmate’s safety that Kestrel aims to minimise incidents and injuries on site.

While Kestrel maintains a high level of COVID and influenza general awareness, there are no specific COVID management controls currently enacted.

Mental Health

Kestrel is a proud supporter of the employee assistance program led by Gryphon Psychology. We encourage our workforce to access and use Gryphon’s services that include free and confidential counselling for work

Recordable Injuries – TRIFR, LTIFR and Industry Standard

and personal matters, free webinars, and a mobile device application for employees, contractors, and their families to ensure that they are accessible in any circumstances.

Tracking Safety Performance

Safety performance is measured, reported, and tracked through a range of key metrics that are standard across the mining industry. These are calculated as a factor of equivalent working hours of 100 people over a year (1,000,000 hours), so that they are also directly comparable across all mining operations. However, Kestrel never loses sight that each metric we report is in fact talking about one of our people.

Injury Stats

2022 Outcomes

Kestrel’s reportable injuries and total recordable injury frequency rates (TRIFR) for the year continue to be below the Queensland Underground coal industry averages. The increase in injury frequency rates from 2021 was disappointing and a number of initiatives including work stoppages for safety resets, targeted hazard identification and rectification programs and supervisory coaching were implemented.

Hazard Identifications were a major focus throughout the year, with everyone throughout the workforce encouraged to take time out at key points through their work program to look for, record and remove any potential hazards.

Kestrel also implemented a regular work area checklist program that was completed by contract managers and Superintendents to encourage direct and meaningful interactions in the field with all employees and contractors. The checklist was developed to ensure a consistent approach across all work areas, highlighting what to look for and what to record, to ensure adherence to site standards.

In October, Kestrel completed the Broad-Brush Risk Assessment (BBRA) for the site, with a focus on reassessing all potential single/multiple fatality risks and confirming the Critical Risk management strategies were appropriate and implemented accordingly.

Initial indications from these programs have been positive, with a commitment for constant improvement to ensure health and safety of the entire workforce remains at the forefront for all employees and contractors.

Completing ergonomic assessments using JAS (Joint Active Solutions) equipment also continued in 2022. This involved the Health and Safety Team (HST) utilising JAS equipment with operators in the field to identify opportunities to reduce the impacts of manual handling. This work will continue in 2023.

As committed in 2021, we actioned a vibration assessment program to establish baseline data. In 2022, 38 vibration assessments were conducted for whole body and/or hand-arm vibration to determine the risk profile for the site. Assessments have been conducted on both underground and surface mining equipment including loaders, drift-runners, graders, dozers, moxies, and forklifts, as well as vibrating hand tools including underground drills, rattle guns and grinders. This establishes the baseline, with the next stage of the project to implement improvements - such as upgraded seating in loaders - and taking follow up measurements to confirm any reduced vibrations. New low frequency antivibration gloves have also been purchased and made a stock item in the stores.

Training Needs Analysis’ (TNA’s) were developed for required roles in accordance with the Recognised Standard 22 requirements, with training programs being developed and implemented accordingly.

The Year Ahead

In 2023, Kestrel will remain focussed on our risk assessment approach and continual improvement in all health and safety controls.

JHA’s, Hazard Reports, Find it/ Fix it, and Take5’s will continue to ensure focus is directed to both our usual daily tasks and management of any new tasks that may be required.

Specifically for 2023, Kestrel is also proposing the following initiatives:

„ Continue using Joint Active Solutions (JAS) equipment and ergonomic reviews of standard tasks using leading edge technology.

„ Implement identified vibration reduction initiatives.

People and Culture

Approach

‘We Are Respectful’ highlights Kestrel’s aim to be the team everyone wants to work with through acting with honesty and integrity. ‘We are One’ recognises Kestrel’s diversity amongst the workforce with the varied skillsets amongst each individual contributing to the overall success of the Kestrel team. Our success is underpinned by attracting, retaining and developing people who have the right skills, appropriate experience, behaviours and values for our culture.

Breakdown of Employee Workforce

In 2022, our workforce consisted of 696 people in a combination of direct employees (458) and contractors (238). Indicative Indigenous employee rates, based on who has disclosed their ethnicity, is 2%. Female representation at Kestrel increased to 10% in 2022, up from 6% in 2020 and 7.4% in 2021. While the underground workforce is dominated by male employees, there is significantly more female representation in professional and management roles. Kestrel highly values the significant benefits added by a diverse employee base and continues to explore ways to further increase the diversity of our workforce. Kestrel supports events such as International Women’s Day and Women in Mining.

Employee turnover for 2022 was 9.9%, slightly higher than 2021 at 8.6%. Additionally, unplanned leave increased from 2021 (3.1%) to 4.3% in 2022.

Talent Development

Building long-term, cross-functional working relationships for stronger connection and commitment is at the core of our Talent Development Program. Our program enables direct learning opportunities between both mentor and mentee. The program facilitates the sharing of corporate knowledge while supporting employees to progress within the company allowing them to reach their full potential. Kestrel also engage external mentors, as part of the formal mentioning process.

2022 Outcomes

Kestrel’s very own leadership program, UNLEASHED, was delivered in 2022. With 220 employees participating in the program throughout the year, UNLEASHED adopts the philosophy that leadership is not defined by a job title. Program participants have reported a 33% uplift in their ability to develop and execute innovative improvement

Kestrel Lifestyle Challenge

2022 saw the continuation of the highly successful Healthly Lifestyle Challenge. We understand that a high performing workforce is driven by a healthy lifestyle and balanced eating behaviours to promote overall wellbeing and prevent chronic illnesses. To ensure better health awareness amongst our workforce, the Kestrel Lifestyle Challenge was launched.

The Kestrel Lifestyle Challenge involves a 90-day challenge where employees and contractors of Kestrel are given the opportunity to participate in a range of activities that encourage healthy behaviour. The lifestyle challenge incorporates body composition analysis scans, weekly health and nutrition updates, exercises and a community that support each other in forming healthy habits. As part of the program outline, all Kestrel employees and contractors (whether on the program or not), received weekly updates containing health and nutrition advice. Leaders worked with employees to overcome barriers identified to participating in the challenge, incorporating exercise routines into pre-shift meetings, providing a stationary bike in the control room and mentoring.

Kestrel’s Lifestyle Challenge saw an increase in participants in 2022 with 209 participants (underground, CHPP, professional staff onsite and in Brisbane), an increase of 53 participants from 2021. Three additional categories were added ideas and a 24% uplift in confidence to effectively coach others. The success of UNLEASHED in 2022 will see the program continue to be rolled-out in 2023.

Kestrel’s COAR awards continued to grow as a way to recognise our people for their commitment, agility, respect and collaboration with colleagues and stakeholders. There were 222 COAR award nominations in 2022.

2022 also saw the Fair Work Commission approve the negotiated Enterprise Agreement which covers the majority of our employees.

The Year Ahead

In 2023, Kestrel propose to: in 2022, with more opportunity to win and suited more individual’s health goals (i.e. muscle gain). The addition of “healthy habits bingo” focused on creating healthy habits, where the winner was not determined based on metrics, but on participation which appealed to those who may not have physical goals. The challenge resulted in a total body fat loss of 344.6kg and a skeletal muscle mass gain of 64.2kg across the 209 participants, and an improved feeling of wellness across all participants.

„ Continue to develop our people through purposeful career pathway planning.

„ Conduct a Highly Reliable Organisation diagnostic in partnership with the University of Queensland and develop an action plan.

The Kestrel Lifestyle Challenge continues to highlight Kestrel’s sense of community, and our people’s determination to be the best version of themselves.