ABN 71 152 107 527

Level 7, 167 Eagle Street

Brisbane Qld, 4000 Australia

ENVIRONMENTAL RISK MANAGEMENT

POLICY AND PROCEDURES

Policy No OHSK(NT)001

Date of issue: DECEMBER 2012

Revised: AUGUST 2015
Version 1.2

Application All Kentor Minerals (NT) Pty. Ltd employees

Related  Employee Assistance Policy and Procedures

Documents  Code of Conduct
 Accident/Incident Reporting policies and Procedures
 Risk Management Policy and Procedures
 Hazard Reporting Policy and Procedures
 Incident/Accident/Hazard report Form

Policy Kentor Minerals (NT) is committed to maintaining a safe and healthy working environment.
Statement As part of this commitment, Kentor Minerals (NT) has developed this policy to assist
employees to manage risks in all the activities they undertake.
Risk management is all about managing our threats and opportunities.
By managing our threats effectively we will be in a stronger position to deliver our objectives.
By managing our opportunities well we will be in a better position to provide improved
services to our constituents.

Version Author / Update Author Date

1.0 R. Lennartz 28/12/2011
1.1 R. Lennartz 29/07/2013
1.2 R. Lennartz 21/08/2015

Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015
Contents

1.0 PURPOSE AND CONTEXT................................................................................................................... 3

2.0 POLICY OBJECTIVES .......................................................................................................................... 3
3.0 ACCOUNTABILITIES ............................................................................................................................ 3
3.1 Executive and Directors ..................................................................................................................... 4
3.2 Managers / Supervisors ..................................................................................................................... 4
3.3 Human Resources Section ................................................................................................................ 4
4.0 TRAINING & DEVELOPMENT .............................................................................................................. 4
5.0 PROCEDURES ..................................................................................................................................... 4
6.0 RISK MATRIX ........................................................................................................................................ 5
7.0 LIKELY HOOD TABLE ........................................................................................................................... 6
8.0 MEASURES OF CONSEQUENCE TABLE ........................................................................................... 6

Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015
1.0 PURPOSE AND CONTEXT

To provide a consistent framework for the identification, assessment, management and reporting of risk;
and to enhance Kentor Minerals (NT) internal controls.

Risk can be broadly defined as any event that has an impact on the realisation of Kentor Minerals (NT)
stated objectives. Significant areas of risk include those that may reasonably:
i. Present a risk to the welfare of Kentor Minerals (NT) employees and visitors;
ii. Present a risk to the environment in which Kentor Minerals (NT) is operating;
iii. Jeopardise the reputation of Kentor Minerals (NT)
iv. Present as a significant legal exposure; and
v. Be considered a significant commercial risk that could impact on the financial status of Kentor Gold
(NT).

It is acknowledged that risks are inherent in many of Kentor Minerals (NT) activities and that every employee
contributes to the identification, management and reporting of these risks. The application of risk
management principles should be seen as a mechanism to better understand risk and as an important
element of good corporate governance and effective internal control. Risk management is the application of
principles to identify, analyse, assess, treat and monitor the risks involved in activities.

The intention of this policy is not to avoid risk but rather to:

i. Clearly articulate the accountabilities for risk management

ii. Outline a high level framework that guides the consistent integration of risk management principles into
the culture of Kentor Minerals (NT) and;
iii. Embed risk management principles into decision making processes so that they can be applied at any
level of Kentor Mineral (NT)

This is with the aim of:

i. Protecting and developing Kentor Minerals (NT) key assets (people, reputation, finances,
infrastructure, environment and intellectual property), and
ii. Allowing Kentor Minerals (NT) to manage risk from a positive perspective i.e. to consider the upside
(opportunities) of risk and not just the downside of risk.

2.0 POLICY OBJECTIVES

i. To assist Kentor Minerals (NT) in achieving its strategic objectives;

ii. To assist Kentor Minerals (NT) to meet statutory and regulatory requirements;and
iii. To integrate and embed risk management principles into the decision making culture of Kentor
Minerals (NT).

3.0 ACCOUNTABILITIES

All Kentor Minerals (NT) employees are responsible for the management of risk including the identification,
assessment and reporting of potential risks to Kentor Minerals (NT) key assets (reputation, people, finances,
infrastructure, environment and intellectual property).

Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015
 3.1 Executive and Directors

a) Ensure that a risk management framework is established, implemented and maintained in

accordance with this policy
b) Promote compliance with statutory and regulatory requirements
c) Identify and manage strategic and operational risks that may impact upon Kentor Minerals (NT)
strategic and operational objectives
d) Monitor the management of strategic risks and
e) Develop a strategic level risk management plan for Kentor Minerals (NT)

3.2 Managers / Supervisors

a) Identify and manage operational risks relevant to the Project or Department Section
b) Integrate risk management principles with planning processes and management activities including
project management
c) Identify and report on risk issues, and
d) Encourage employees to participate in risk management training activities.

3.3 Human Resources Section

Through broad consultation the role and responsibilities of the HR section include:

i. Facilitate the development, ratification and adoption of Kentor Minerals (NT) risk management
policy and implementation plan
ii. Development and implementation of a Kentor Minerals (NT) wide risk management framework
iii. Providing support and advice to the relevant managers on issues affecting their area, including;
iv. the assessment of risk and the development of risk management plans
v. Implement Kentor Minerals (NT) wide risk management training, and
vi. Raising the profile of risk management within Kentor Minerals (NT) and ensuring a culture of risk
management is developed.

4.0 TRAINING & DEVELOPMENT

Kentor Minerals (NT) is committed to ensuring all employee, particularly those in managerial and
decision making roles, have access to guidance and training on the application of risk management
principles.
Managers Coordinators and Supervisors are to encourage employees to participate in risk
management training activities that will be offered. Training and development will be specifically
aimed at assisting Kentor Minerals (NT) to comply with the requirements of this policy.

5.0 PROCEDURES
Identification, Assessment and Management of Risks

Risks will be identified, assessed, managed and reported by responsible officers. Risks will be
assessed with reference to Kentor Minerals (NT) strategic objectives and priorities. One of the key
objectives of undertaking a risk assessment is the differentiation of minor and acceptable operational
risk from major strategic and operational risks that require considered assessment and active
management, and to provide data that assists in both the evaluation and treatment of risks.

Risk assessment requires the consideration of the sources of risk, their likelihood and possible
consequences in the context of the control environment. Control can affect the likelihood or
probability of an event occurring as well as the extent of the consequences or impact. To be able to
adequately assess risk, the strengths and weakness of the controls also need to be assessed.
Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015
Step 1
Identify and clarify objectives
As risks are events that influence the achievement of strategic and operational objectives it is important to
ensure that key objectives are defined.

Step 2
Identify risks
Risk can relate to any aspect of Kentor Minerals (NT). Risk can be identified through utilisation of
brainstorming, recall of experience (including previous project outcomes), and any other identiifed methods.

Step 3
Assess risks
A key objective of risk assessment is differentiating minor and acceptable operational risks from those major
risks that require active management or intervention and to provide qualitative or quantitative data that assists
in risk evaluation and determination of treatment strategies. Risks should be considered in the context of the
existing control environment i.e. governance, legislation, policies, procedures, delegations and values.

Consequence and likelihood can be assessed against a risk matrix to provide an overall risk rating (see example
risk matrices below).

6.0 RISK MATRIX

CONSEQUENCE
LIKELY-HOOD Negligible Low Moderate Major Extreme
1 2 3 4 5

Almost Certain 5 H H C C C

Likely 4 M H H C C

Possible 3 L M H C C

Unlikely 2 L L M H C

Rare 1 L L M H H

CATASTROPHIC HIGH MEDIUM LOW

RISK RISK RISK RISK
Must complete control Must review controls Management responsibility Monitor and review regularly.
review, action plan and and devise action defined & control evaluation
management plan where appropriate.
accountability Complete action plan if
considered appropriate.

Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015
7.0 LIKELY HOOD TABLE

Score Rating Likelihood

5 Almost Certain Expected to occur in most circumstances

4 Likely Will probably occur in most circumstances

3 Possible Might occur at some time

2 Unlikely Could occur at some time

1 Rare May only occur in exceptional circumstances

8.0 MEASURES OF CONSEQUENCE TABLE

Safety & Injury Legislative compliance

Insignificant No injuries Compliant

Minor Minor injuries/first aid required Minor breach of statute/regulation.

Moderate First aid and ongoing medical treatment. Formal warning from regulator
Probable lost time
Major Extensive injuries/possible multiple Suspension of activity and
injuries prosecution/financial
Catastrophic or single fatality
Fatalities penalty.
Prosecution, financial penalty, cessation of
activity

Kentor Minerals (NT) Pty. Ltd. – Environmental and Risk Management Policy and Procedure - 2015