Employee working in the laboratory at the Balkhash Complex

Our performance

KAZ Minerals employs approximately 12,000 people in Kazakhstan and Kyrgyzstan. The Group is committed to providing its employees with a safe work environment, fair pay and benefits, an open dialogue with management and a workplace culture which respects equality and diversity at all levels of the organisation.

Training and development

In 2015 Group employees received on average 49 hours of training. This includes mandatory safety training required by the regulator 
in Kazakhstan (40 hours per year for supervisory staff and 10 hours 
for operational staff), but does not include additional in-house safety training, which is not recorded centrally. Topics covered included health and safety training, with a focus on electrical and fire safety, labour protection training, physical fitness and professional development training.

Pay and benefits

We aim to provide fair remuneration to our employees, and incentivise safety and productivity. An element of employee pay is linked to health and safety performance. At Bozshakol and Aktogay, a new pay structure focused on leading indicators and designed to prevent incidents before they occur is being trialed.

Bonuses for divisional heads are based on health and safety performance, compliance with Government-set environmental targets and the amount of environmental fines incurred, as well as production efficiency and cost control.

Following the devaluation of the tenge in 2015, the Group has sought to mitigate the impact 
of a weaker local currency on its employees and their families.

In accordance with local regulations in Kazakhstan, we are required to make payments to employees and former employees for illness and disability sustained at our operations. The financial impact of this obligation amounted to $16 million in 2015.

Equality and diversity

Our goal is to employ a skilled workforce that reflects the demographic of the regions in which we operate. We aim to develop the expertise required for our operations from our existing workforce, recruiting locally where possible. Our operations are located in Kazakhstan and Kyrgyzstan and in 2015, 97% of the Group employees were Kazakh or Kyrgyz nationals. 
In circumstances where specialist skills are required, we draw 
on international expertise with a view to transfer the knowledge and best practice approaches in the medium to long term. The number of expatriates at KAZ Minerals is very limited, and they are largely employed at our major growth projects working alongside local teams that will take over the management of operations in due course.

Gender balance at our operations is relatively strong compared 
to the global mining industry. Women represent 27% of the 
entire workforce, with 27% at senior management level and 
11% at Board level (one Board member).

Consultation and communication

We respect the right to freedom of association and consult 
our employees and trade unions about changes to our business and employment conditions.

All employees are entitled to join a union of their choice, with the majority of employees either being members of a union or subject to a collective bargaining agreement.

The Group signed a new collective bargaining agreement in 2014 which was developed in coordination with representatives of major companies in the mining industry in Kazakhstan and trade unions. The provisions of the new collective agreement included measures to enforce a zero tolerance approach to safety breaches. Other concerns raised by employees through the trade unions and addressed by management have included those related to transportation arrangements, and housing conditions for shift workers.

Health and safety issues are a shared priority between the 
Group and the trade unions. The unions engage actively with 
our sites to address the issue. In line with the collective bargaining agreement, a number of employees have been nominated 
as safety inspectors who report breaches they identify as part of their weekly inspections to the trade unions, who then discuss the matters with the senior management. Trade unions also play an important role in our employee engagement activities, helping us to stage sporting and cultural events for our employees and the employees of other local companies.