&217(176
3UHIDFH
([HFXWLYHVXPPDU\
&KDSWHU
3UHDPEOH
*HQHVLV
3KRWRLOOXVWUDWLRQ
&KDSWHU
&RXUWGLUHFWLRQ1R
&RXUWGLUHFWLRQ1R
%ULHIQRWHRQ1,2+WHDPYLVLWWR5LKDQG6733
173&
&KDSWHU
&RXUWGLUHFWLRQ1R
&KDSWHU
5HFRPPHQGDWLRQ
5HIHUHQFHV
$QQH[XUH0LQXWHVRIWKHPHHWLQJV
$QQH[XUH6HOHFWHGOLVWRI%,6VWDQGDUGV
$QQH[XUH9LVLWUHSRUWRI1,2+6FLHQWLVWV
DW5LKDQG673383
35()$&(
5DSLGH[SDQVLRQRISRZHUJHQHUDWLQJDFWLYLWLHVOHDGVWRFRQFHUQVRQWKHKHDOWK
DQG VDIHW\ RI SHRSOH LQ DQG DURXQG WKH SRZHU SODQWV 7KH FXUUHQW UHIHUHQFH
GRFXPHQW GUDIWHG ZLWK WKH GLUHFWLRQ RI WKH +RQöEOH 6XSUHPH &RXUW RI ,QGLD
HODERUDWHVWKHUHJXODWRU\VWDQGDUGVDQGJXLGHOLQHVDVUHJDUGWRUHTXLUHPHQWVRI
WKH FRDO ILUHG WKHUPDO SRZHU SODQWV 7KLV HPERGLPHQW UHSUHVHQWV WKH DYDLODEOH
NQRZOHGJHLQLWVH[SOLFLWDQGWDFLWIRUPVWKDWFDQEHXVHGLQPLWLJDWLQJVHOHFWHG
ZRUNSODFHKD]DUGVDQGHQYLURQPHQWDOFRQFHUQVVXFKDVDLUHPLVVLRQVWKHUPDO
GLVFKDUJHV KDQGOLQJ RI KD]DUGRXV ZDVWHV SK\VLFDO KD]DUGV DQG HUJRQRPLFV
LQFRPSDWLELOLW\ 7KH UHOHYDQW JXLGHOLQHV E\ LWVHOI FDQ QRW JXDUDQWHH RSWLPDO
ZRUNSODFHHQYLURQPHQWXQOHVVHIIHFWLYHLPSOHPHQWDWLRQRIWKHJXLGHOLQHVE\WKH
UHVSRQVLEOHDXWKRULWLHVDUHSURSHUO\HQVXUHG
$GHGLFDWHGJURXSRIVFLHQWLVWVIURP1,2+XQGHUWRRNSDLQVWDNLQJHIIRUW
LQ H[DPLQLQJ DQG YHULI\LQJ WKRXVDQGV RI SDJHV RI QDWLRQDO DQG LQWHUQDWLRQDO
UHIHUHQFH PDWHULDOV DQG QRWLILFDWLRQV LQ FRPSLOLQJ WKH UHSRUW 7KH GHOLEHUDWLRQ
DQG FRPSUHKHQVLYH UHYLHZ E\ WKH H[SHUW FRPPLWWHH FRPSULVLQJ RI HPLQHQW
SURIHVVLRQDOVIURPSUHPLHUQDWLRQDOLQVWLWXWHVDQGDJHQFLHVSURYLGHDZHDOWKRI
LQVLJKW LQ EULQJLQJ WKLV FKDOOHQJLQJ DVVLJQPHQW WR LWV IUXLWLRQ 7KH HIIRUW LQ
EULQJLQJ RXW WKLV UHSRUW ZLOO EH ZRUWK\ RI WKH KRQRXU EHVWRZHG RQ XV LI WKLV
UHSRUWVHUYHVLWVSXUSRVH
$FWLYH KHOS DQG XQVWLQWLQJ VXSSRUW RI WKH ,&05 0LQLVWU\ RI +HDOWK )DPLO\:HOIDUHWKH0LQLVWU\RI3RZHUDQGWKH&HQWUDO(OHFWULFLW\$XWKRULW\DUH
JUDWHIXOO\ DFNQRZOHGJHG $ GHHS VHQVH RI JUDWLWXGH LV H[SUHVVHG WR WKH H[SHUW
FRPPLWWHH PHPEHUV IRU WKHLU FRQWULEXWLRQ JXLGDQFH DQG YDOXDEOH VXJJHVWLRQV
GXULQJWKHORQJSURFHVVRISUHSDUDWLRQRIWKHUHSRUW6SHFLDOWKDQNVDUHGXHWR
WKHPDQDJHPHQWRI173&5LKDQG83'9&.RONDWDDQG173&6LQJUDXOL83LQ
H[WHQGLQJ FRXUWHRXV ORJLVWLFV GXULQJ WKH H[SHUW FRPPLWWHH YLVLWV DQG PHHWLQJV
6LQFHUH DSSUHFLDWLRQ LV GXH WR WKRVH RI 1,2+ DQG 52+& ( IRU WKHLU FRQVWDQW
LQYROYHPHQWDQGZKROHKHDUWHGVXSSRUW
3.1DJ
'LUHFWRU1,2+
ϭ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
(;(&87,9(6800$5<
7KLV1,2+UHSRUWKDVEHHQSUHSDUHGZLWKUHIHUHQFHWRWKHGLUHFWLRQRIWKH
+RQ·EOH6XSUHPH&RXUWRI,QGLDFRQFHUQLQJWKHRFFXSDWLRQDOKHDOWKDQG
VDIHW\LVVXHVRIWKHZRUNHUVLQFRDOILUHGWKHUPDOSRZHUSODQWV&)733V
ZLWK VSHFLDO PHQWLRQ RQ KD]DUGV DVVRFLDWHG ZLWK D GXVW E KHDW F
QRLVH G YLEUDWLRQÝ H UDGLDWLRQ DQG I GLVSRVDO RI KD]DUGRXV ZDVWHV
>UHI3,/:ULW3HWLWLRQ&LYLO1RRI@
$ FRPPLWWHH RI H[SHUWV E\ 1,2+ LQFOXGLQJ H[SHUWV IURP SUHPLHU
QDWLRQDO DJHQFLHV WUDGH XQLRQ DQG 1*2V GHOLEHUDWHG RQ D WKH FRQWURO
PHDVXUHVDGRSWHGLQPLWLJDWLQJWKHDERYHVWDWHGKD]DUGVEPHWKRGVIRU
WKH KDQGOLQJ FROOHFWLRQ DQG GLVSRVDO RI KD]DUGRXV ZDVWH DQG F
UHFRPPHQGDWLRQV IRU EHWWHU KHDOWK DQG VDIHW\ RI ZRUNHUV RI &)733V ,W
UHFRJQL]HGWKDWWKHFRDOKDQGOLQJSODQWERLOHUXQLWVWXUELQHVIHHGZDWHU
XQLWV IXHO KDQGOLQJ SODQW JHQHUDWRUV HOHFWURVWDWLF SUHFLSLWDWRUV DQG DVK
KDQGOLQJXQLWVDUHVRPHRIWKHKD]DUGRXVDUHDVLQ&)733V
,WREVHUYHGWKDWWKHLVVXHVUHODWHGWRRFFXSDWLRQDOKHDOWKVDIHW\DQG
HQYLURQPHQW DUH DGGUHVVHG WKURXJK OHJDO SURYLVLRQV VXFK DV WKH
)DFWRULHV $FW WKH %RLOHU $FW (PSOR\HHV 6WDWH ,QVXUDQFH $FW
&RPSHQVDWLRQ $FW WKH :DWHU 3UHYHQWLRQ DQG &RQWURO RI 3ROOXWLRQ $FW
$LU 3UHYHQWLRQ DQG &RQWURO RI 3ROOXWLRQ $FW (QYLURQPHQW 3URWHFWLRQ
$FW WKH (OHFWULFLW\ $FW DQG WKH UXOHV DQG UHJXODWLRQVDPHQGPHQWV PDGH
WKHUHLQ 7KH 0LQLVWU\ RI (QYLURQPHQW )RUHVWV WKH 0LQLVWU\ RI /DERXU (PSOR\PHQW WKH 0LQLVWU\ RI 0LQHV &HQWUDO DQG VWDWH 3ROOXWLRQ &RQWURO
%RDUGV 'LUHFWRUDWH RI )DFWRULHV %RLOHUV 'LUHFWRUDWH *HQHUDO RI
Ϯ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
)DFWRU\$GYLFH6HUYLFHV/DERXU,QVWLWXWH'LUHFWRUDWH*HQHUDORI0LQHV
6DIHW\ 'RFN /DERXU %RDUG %XUHDX RI ,QGLDQ 6WDQGDUGV %,6 DUH WKH
RUJDQL]DWLRQV UHVSRQVLEOH LQ SURPXOJDWLQJ UHODWHG DFWV IUDPLQJ PRGHO
UXOHV VWDWH UXOHV QRUPV VWDQGDUGV DQG JXLGHOLQHV DQG LWV
LPSOHPHQWDWLRQ
7KH UHSRUW HODERUDWHV WKH RFFXSDWLRQDO KHDOWK DQG VDIHW\ LVVXHV RI
WKH &)733V WKDW DUH DVVRFLDWHG DLU HPLVVLRQV WKHUPDO GLVFKDUJHV
HUJRQRPLFV LQFRPSDWLELOLW\ DW ZRUNSODFHV DQG SK\VLFDO KD]DUGV GXH WR
QRLVH YLEUDWLRQ DQG KHDW ,QKDODWLRQ RI FRDO GXVW PLJKW UHVXOW LQ
GHYHORSPHQW RI GXVW UHODWHG PRUELGLW\ FRDO ZRUNHUV SQHXPRFRQLRVLV
VLOLFRVLV DQG QRQSQHXPRFRQLRWLF SHUVLVWHQW UHVSLUDWRU\ PRUELGLW\
FKURQLF EURQFKLWLV HPSK\VHPD DVWKPD 2WKHU PRUELGLWLHV PLJKW DOVR
EH SUHVHQW GXH WR H[SRVXUH WR IO\ DVK LQFOXGLQJ PHWDOOLF FRQVWLWXHQWV
OHDG DUVHQLF PHUFXU\ HWF DQG RWKHU FKHPLFDOV XVHG DQG UHOHDVHG LQ
FRXUVHRIRSHUDWLRQVRIWKH&)733V
)XUWKHUWRGHVFULELQJPXOWLSOHZRUNSODFHDQGHUJRQRPLFVKD]DUGVWR
ZKLFK WKH ZRUNHUV DUH SRWHQWLDOO\ DW ULVN WKH UHSRUW LQFOXGHV GHWDLOHG
DFFRXQW RI WKH JXLGHOLQHV RI WKH 1$$460R() DQG WKH )DFWRULHV $FW
VXJJHVWLQJWKDWFRPSOLDQFHZLWKWKHQRLVHVWDQGDUGVVSHFLILHGVKRXOGEH
HQVXUHG E\ HQJLQHHULQJ DQG DGPLQLVWUDWLYH FRQWUROV $V UHJDUG WR
RFFXSDWLRQDO KHDW H[SRVXUH WKH 0RGHO UXOHV WKH VWDWH )DFWRULHV 5XOHV
XQGHUWKH)DFWRULHV$FWSUHVFULEHVWKHOLPLWRIWHPSHUDWXUHDQGDLU
PRYHPHQWYHQWLODWLRQ KRZHYHU WKHUH LV QR VWDQGDUG FULWHULD GRFXPHQW
IRULQGRRUWHPSHUDWXUHFRQGLWLRQVRUKHDWVWUHVVIRUZRUNHUV$OVR$&*,+
DQG,62JXLGHOLQHVDVSURSRVHGGRQRWPDWFKWRFRQGLWLRQVRIWKHWURSLFDO
HQYLURQPHQW 7KH UHSRUW LQFOXGHV 1,2+ VXJJHVWLRQ WR WKH 0R() RI
SHUPLVVLEOHH[SRVXUHOLPLWYDOXHVIRUKRWHQYLURQPHQW7KH&)733VXVHD
QXPEHURIWRROVDQGPDFKLQHU\WKDWJHQHUDWHYLEUDWLRQVDQGWKHZRUNHUV
DUH H[SRVHG WR ZKROH ERG\ DV ZHOO DV KDQGDUP YLEUDWLRQ 7KH 7/9 DV
SUHVFULEHG E\ $&*,+ IRU KRXUO\ GDLO\ H[SRVXUH IRU KDQGDUP DQG
ZKROH ERG\ YLEUDWLRQ PD\ EH FRQVLGHUHG WLOO WKH OLPLW YDOXHV DUH
ϯ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
HVWDEOLVKHGLQWKH,QGLDQFRQWHVW7KHUDGLRDFWLYLW\RIPDWHULDORIWKHFRDO
DQG IO\ DVK XVHG LQ GLIIHUHQW &)733VDQG WKH UHSRUWHG OHYHOV RI UDGRQ
DFWLYLW\ DURXQG WKH &)733V ZHUH ZLWKLQ WKH SHUPLVVLEOH OLPLW ,W LV
DGYRFDWHG WKDW WKH &)733V PD\ PDLQWDLQ UHFRUGV RI WKH UDGLRDFWLYLW\
OHYHOVRIFRDOEHLQJXVHGDQGWKHIO\DVKJHQHUDWHGE\WKHSODQWV
7KH UHSRUW LQFOXGHV WKH VWDQGDUGV RQ DPELHQW DLU TXDOLW\ WLPH
ZHLJKWHGDYHUDJH7/9RIFKHPLFDOVDWZRUNSODFHDQGHPLVVLRQVWDQGDUGV
RI SDUWLFXODWH PDWWHU RI WKHUPDO SRZHU SODQWV ZLWK UHIHUHQFH WR SRZHU
JHQHUDWLQJ FDSDFLW\ $QDO\VLV LQGLFDWHV WKDW WKH QDWLRQDO DPELHQW DLU
TXDOLW\ VWDQGDUGV DUH UHODWLYHO\ VWULQJHQW KRZHYHU WKH VWDQGDUGV DQG
QRUPV RI ZRUNSODFH HQYLURQPHQW PD\ UHTXLUH WR EH UHDVVHVVHG 1R
VSHFLILFVWDQGDUGVRQKHDOWKDQGVDIHW\LVVXHVDUHVSHFLDOO\SUHVFULEHGIRU
WKH &)733V 7LOO WKHQ WKH QRUPV DSSOLFDEOH WR JHQHUDO LQGXVWULDO
VLWXDWLRQV DV SHU WKH )DFWRULHV $FW PD\ EH IROORZHG XS E\ WKH &)733V
7KH0R()+D]DUGRXV:DVWHV0DQDJHPHQW+DQGOLQJDQG7UDQVERXQGDU\
0RYHPHQW 5XOHV UHJXODWHV WKDW DOO NLQGV RI KD]DUGRXV ZDVWH VKDOO
EHFROOHFWHGWUHDWHGUHF\FOHGUHSURFHVVHGVWRUHGRUGLVSRVHGRIIRQO\
LQVXFKIDFLOLW\DVPD\EHDXWKRUL]HG7KHVWDWXWRU\JXLGHOLQHVUHJDUGLQJ
WKH IOXH JDV HPLVVLRQV WKURXJK VWDFN WR DWPRVSKHUH DQG GLVFKDUJH RI
OLTXLG HIIOXHQWV DUH GHVFULEHG )XUWKHU LW GHWDLOHG DERXW LPSOHPHQWDWLRQ
JXLGHOLQHV RI IO\ DVK XWLOL]DWLRQ E\ WKH ROG DQG QHZ SRZHU SODQWV DQG RU
H[SDQVLRQXQLWV7KHUHSRUWVXPPDUL]HVWKHFRQWUROPHDVXUHVIRUDGXVW
FRQWURO E KHDW F QRLVH SROOXWLRQ FRQWURO G YLEUDWLRQ DQG H ZDVWH
GLVSRVDOIRUIRUSURWHFWLQJKHDOWKDQGHQVXULQJVDIHW\RIZRUNHUV
7KH H[SHUW FRPPLWWHH UHFRPPHQGHG WKH QHHG RI RFFXSDWLRQDO
KHDOWKVHUYLFHVZLWKDGHTXDWHIDFLOLW\IRUKHDOWKGHOLYHU\V\VWHPWUDLQHG
PDQSRZHU LQYHVWLJDWLRQDO IDFLOLWLHV HQYLURQPHQWDO DVVHVVPHQW DQG
HYDOXDWLRQ RI RFFXSDWLRQDO KHDOWK VWDWXV RI WKH ZRUNHUV RQ UHJXODU EDVLV
7KHVH VHUYLFHV VKRXOG EH LQGHSHQGHQW DQG VHSDUDWH IURP KRVSLWDO
VHUYLFHVFXUDWLYHVHUYLFHEXWVKRXOGIXQFWLRQLQOLDLVRQZLWKWKHFXUDWLYH
ϰ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
VHUYLFH +HDOWK UHFRUGV SUHIHUDEO\ LQ HOHFWURQLF IRUP VKRXOG EH
PDLQWDLQHG DQG GRFXPHQWDWLRQ RI SUHSODFHPHQW PHGLFDO H[DPLQDWLRQ
VKRXOG EH PDQGDWRU\ 3HULRGLF PHGLFDO H[DPLQDWLRQ 30( RI &)733
ZRUNHUV VKRXOG EH XQGHUWDNHQ UHOHYDQW WR WKH MRE H[SRVXUHV ZKLOH LWV
IUHTXHQF\ PD\ EH VFKHGXOHG EDVHG RQ KHDOWK FKHFNXS LQIRUPDWLRQ $V
SHUWKH)DFWRULHV$FWWKHZRUNHUVDUHH[DPLQHGUDGLRORJLFDOO\FKHVW;
UD\ RQ \HDUO\ EDVLV &RQVLGHULQJ WKH ODWHQF\ SHULRG RI GHYHORSPHQW RI
SQHXPRFRQLRVLV LW LV UHFRPPHQGHG WR XQGHUJR FKHVW ;UD\ HYHU\ WZR
\HDUV IRU LQLWLDO \HDUV DQG EDVHG RQ WKH SURJUHVVLRQ UHVFKHGXOLQJ
PD\EHDGRSWHG
,WLVUHFRPPHQGHGWKDWDOOSRZHUJHQHUDWLQJDXWKRULWLHVPXVWKDYH
ZHOOGHILQHG VHFWRU VSHFLILF RFFXSDWLRQDO KHDOWK VDIHW\ DQG HQYLURQPHQW
PDQDJHPHQWIUDPHZRUNUHIHUHQFHGRFXPHQWLQSODFH7KLVVKRXOGFRYHU
WKH OHJDO SURYLVLRQV PDQDJHPHQW V\VWHP VDIH RSHUDWLQJ SURFHGXUHV
EHVWSUDFWLFHVZRUNSODFHVWDQGDUGDQGJXLGHOLQHVWRPLWLJDWHZRUNSODFH
KD]DUGVLQFUHDVHZRUNHIILFLHQF\DQGLPSURYHKHDOWKDQGZHOOEHLQJRI
WKH SHRSOH LQYROYHG 7KLV VKRXOG EH KDUPRQL]HG ZLWK WKH FXOWXUH RI WKH
RUJDQL]DWLRQ WR UHIOHFW WKH FRQWLQXDO FRPPLWPHQW RI WKH RFFXSLHU RQ WKH
EURDGHUSHUVSHFWLYHRIZRUNHUV·KHDOWKDVZHOODVWKHFRPPXQLW\KHDOWK
7KH HQYLURQPHQWDO DQG RFFXSDWLRQDO KHDOWK DQG VDIHW\ PDQDJHPHQW
V\VWHPV VKRXOG EH WKLUG SDUW\ DXGLWDEOH DV DSSURYHG E\ WKH 0LQLVWU\ RI
3RZHU 3DUWLFLSDWRU\ PDQDJHPHQW UHJDUGLQJ KHDOWK DQG VDIHW\ DW SODQW
OHYHOPD\EHHQVXUHG3HULRGLFKHDOWKDQGVDIHW\DZDUHQHVVSURJUDPPHV
VKRXOG EH RUJDQL]HG FRYHULQJ D PLQLPXP DQQXDO DYHUDJH GXUDWLRQ RI KRXUVSHUZRUNHU5HJXODUFRPPXQLW\OHYHODZDUHQHVVSURJUDPPHVPD\
EHRUJDQL]HGIRUWKHIDPLO\PHPEHUVRIWKHZRUNHUV
,QRUGHUWRLPSURYHWKHZRUNLQJFRQGLWLRQVDQHHGKDVEHHQIHOWIRU
D VXLWDEOH DGPLQLVWUDWLYH PHFKDQLVP WR HQVXUH VWULFW FRPSOLDQFH E\ WKH
RFFXSLHU RI WKH &)733 DQG FRPSUHKHQVLYHO\ PRQLWRU LPSOHPHQWDWLRQ RI
WKH SURYLVLRQVUHJXODWLRQV RI KHDOWK DQG VDIHW\ RI WKH ZRUNHUV LQFOXGLQJ
ϱ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
FDVXDO DQGRU FRQWUDFWXDO DQG ZRPHQ ZRUNHUV 7KH FRPPLWWHH RSLQHV
WKDWWKH*RYWRI,QGLDPD\FRQVLGHULQFRQVWLWXWLQJDQ([HFXWLYH6WDQGLQJ
&RPPLWWHH ZLWK LQGHSHQGHQW IXQFWLRQ DQG DXWKRULW\ RQ HQYLURQPHQW
KHDOWK DQG VDIHW\ (+6 LQ FRDO EDVHG WKHUPDO SRZHU SODQWV 7KH
([HFXWLYH6WDQGLQJ &RPPLWWHH ZLOO RYHUVHH WKH LPSOHPHQWDWLRQ RI WKH
VXJJHVWLRQV JLYHQ SHULRGLFDOO\ UHYLHZ WKH HQYLURQPHQW KHDOWK DQG
VDIHW\ SHUIRUPDQFH RI WKH FRDOILUHG WKHUPDO SRZHU SODQWV DQG PDNH
VXJJHVWLRQIRUFRQWLQXDOLPSURYHPHQW
ϲ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&+$37(5
35($0%/(
7KHHQHUJ\GHPDQGLQ,QGLDKDVJURZQQHDUO\SHUDQQXPRYHUWKH
SDVWWKUHHGHFDGHV,QGLDWKDWUHSUHVHQWVaRIWKHJOREDOSRSXODWLRQ
FRQVXPHVRQO\RIJOREDOHQHUJ\FRQVXPSWLRQ,QIRUPDWLRQJDWKHUHG
IURP WKH &HQWUDO (OHFWULFLW\ $XWKRULW\ &($ 0LQLVWU\ RI 3RZHU *RYW RI
,QGLD WKH FXUUHQW LQVWDOOHG SRZHU JHQHUDWLRQ FDSDFLW\ LV 0:
&($%\WKHWRWDOGHPDQGIRUHOHFWULFLW\LVH[SHFWHGWRUHDFK
0: ,QGR$VLDQ QHZV 6HUYLFHV 7KH SRZHU JHQHUDWLRQ
DXWKRULWLHV LQFOXGH SXEOLF VHFWRU XQGHUWDNLQJV VWDWH OHYHO HOHFWULFLW\
ERDUGV DV ZHOO DV SULYDWH VHFWRU HQWHUSULVHV 7KH WKHUPDO SRZHU SODQWV
JHQHUDWHDERXWUGRIWKHHOHFWULFLW\FRQVXPHGLQ,QGLDZKLOHRI
WKHHQHUJ\GHPDQGLVPHWE\FRDOILUHGSRZHUJHQHUDWLRQa0:
7KH 0DKDUDVKWUD VWDWH LV WKH ODUJHVW SURGXFHU RI WKHUPDO SRZHU LQ WKH
FRXQWU\
,Q FRPSDULVRQ WR RWKHU IRVVLO IXHO UHVRXUFHV FRDO ZLOO UHPDLQ DV
PDLQVWD\ RI HQHUJ\ SURGXFWLRQ LQ ,QGLD DV HYLGHQW IURP WKH FRXQWU\·V
SURMHFWLRQ RI SRZHU JHQHUDWLRQ HQYLVLRQHG IRU WKH FRPLQJ GHFDGHV
7KHUHIRUHWKHUHZLOOEHUHTXLUHPHQWIRUVXEVWDQWLDODXJPHQWDWLRQRIFRDO
SURGXFWLRQDQGVXSSO\,QGLDLVWKHODUJHVWFRDOSURGXFLQJFRXQWU\LQWKH
ZRUOG DQG DOVR WKH FRXQWU\ KDV WKH GLVWLQFWLRQ RI KDYLQJ QXPHURXV FRDO
ILUHGWKHUPDOSRZHUSODQWV&)733VUHTXLULQJQHDUO\PLOOLRQWRQVRI
FRDOSHU\HDU
ϳ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
'LIIHUHQWW\SHVRIFRDOILUHGSRZHUSODQWWHFKQRORJ\DUHDYDLODEOH
7KHFRQYHUVLRQIURPFRDOWRHOHFWULFLW\WDNHVSODFHLQPXOWLSOHVWDJHVDQG
WKHPDMRUSODQWVHFWLRQVDQGRSHUDWLRQVRIDW\SLFDOSRZHUSODQWDUH
&RDO KDQGOLQJ SODQW 0DLQ SODQW %RLOHU 7XUER *HQHUDWRU :DWHU
WUHDWPHQW SODQW IHHG ZDWHU XQLW DQG FRROLQJ WRZHU )XHO KDQGOLQJ
SODQW3XPSKRXVH6WRUHV/LTXLGZDVWHWUHDWPHQWSODQW(OHFWURVWDWLF
SUHFLSLWDWRUDVKKDQGOLQJXQLWHWF
7KH FRDO IURP WKH VWRFN \DUG LV WUDQVSRUWHG WR WKH FRDO KDQGOLQJ
SODQW WKURXJK WKH FRQYH\HU EHOW IRU FUXVKLQJ FUXVKHU XQLW DQG WR ERZO
PLOOV IRU SXOYHUL]DWLRQ DQG WKHQ WKH ILQHO\ FUXVKHG FRDO LV WDNHQ WR WKH
IXUQDFH 7KH KHDW JHQHUDWHG IURP WKH FRPEXVWLRQ RI FRDO ERLOV ZDWHU LQ
WKH ERLOHU WR SURGXFH VWHDP DW D KLJK SUHVVXUH DQG WHPSHUDWXUH 7KH
VWHDP JHQHUDWHG LV VXSHUKHDWHG WR a°& IHG WR WKH WXUELQH URWDWLQJ
WKH EODGHV DW USP DQG FRQYHUWV KHDW LQWR PHFKDQLFDO HQHUJ\ 7KH
KRW ZDWHU LV UHF\FOHG DQG FLUFXODWHG WKURXJK WKH FRROLQJ WRZHUV 7KH
HOHFWULFLW\LVSURGXFHGLQWKHJHQHUDWRU$OOWKHRSHUDWLRQVDUHPRQLWRUHG
WKURXJKWKHFRQWUROURRPRSHUDWLRQV
7KH IOXH JDVHV IURP WKH IXUQDFH DUH H[WUDFWHG HLWKHU E\ IRUFHG
GUDXJKW RU LQGXFHG GUDXJKW IDQV FRROHG DQG VHQW WR HOHFWURVWDWLF
SUHFLSLWDWRUV (63 WR VHWWOH WKH DVK SDUWLFOHV WR PLQLPL]H WKH VWDFN
HPLVVLRQ RI IO\ DVK 7KH IO\ DVK LV PL[HG ZLWK ZDWHU WR IRUP VOXUU\ DQG
SXPSHGRXWWRDVKSRQGYLDOLTXLGZDVWHWUHDWPHQWSODQW$OORWKHUOLTXLG
ZDVWHV LQFOXGLQJ RLOV DQG JUHDVH DUH VHSDUDWHG LQ WKH WUHDWPHQW SODQW
XVLQJ DOXP OLPH EOHDFKLQJ OLTXLG DPPRQLD HWF IRU UHXVH 7KH XVHG
ZDWHULVWUHDWHGWRSUHYHQWGHWHULRUDWLRQRILWVTXDOLW\EHIRUHGLVFKDUJLQJ
LQWRWKHFDWFKPHQWDUHDV'U\IO\DVKHVIURPWKH(63DQGIURPWKHERWWRP
RI WKH ERLOHU DUH FROOHFWHG IRU RWKHU DSSOLFDWLRQV VXFK DV ODQG ILOO EULFN
PDQXIDFWXULQJDJULFXOWXUHSXUSRVHVURDGSDYLQJHWF
7KH &)733V HPLW SROOXWDQWV ZLWK LPSDFW RQ KXPDQ KHDOWK DQG
HQYLURQPHQW 3XEOLF VHQVLWL]DWLRQ LV YLYLG ZLWK UHVSHFW WR KHDOWK
ϴ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
LPSDLUPHQW RI GLIIHUHQW NLQGV DVVRFLDWHG ZLWK DLU HPLVVLRQV WKHUPDO
GLVFKDUJHV HUJRQRPLFV LQFRPSDWLELOLW\ DW ZRUNSODFHV DQG SK\VLFDO
KD]DUGVGXHWRQRLVHYLEUDWLRQDQGKHDW7KH\DUHLQEULHI
D $LU HPLVVLRQV HJ 62 12[ 3DUWLFXODWH 0DWWHU &2 &2
+HDY\ PHWDOV +J $V &G 9 1L HWF K\GURJHQ IOXRULGH KDOLGH
FRPSRXQGVYRODWLOHRUJDQLFFRPSRXQGV
E7KHUPDOSODQWGLVFKDUJHVDUHLQWKHIRUPRIOLTXLGHIIOXHQWVDQG
RLOV DQG VROLG ZDVWHV DQG RWKHU KD]DUGRXV PDWHULDOV 7KH GXVW LQ
WKHSODQWLVSURGXFHGGXHWRKDQGOLQJRIVROLGIXHOFRDODGGLWLYHV
VROLGZDVWHVHJIO\DVK7KHIUHHVLOLFDFRQWHQWRIWKHGXVWLVYHU\
LPSRUWDQW ,W ZDV REVHUYHG WKDW WKH FRDO XVHG FRQWDLQV DERXW DVK 7KH IO\ DVK SURGXFHG IURP WKH SODQW FRQWDLQV DERXW IUHH
VLOLFD6L2
F&RPEXVWLRQRIFRDOHPLWVUHOHDVHGLIIHUHQWPHWDOVGHSHQGLQJ
RQ WKH W\SH RI IXHO DQG RWKHU PDWHULDOV XVHG )O\ DVKERWWRP DVK
FRQWDLQVGLIIHUHQWUHVLGXHVRIKD]DUGRXVDQGQRQKD]DUGRXVZDVWHV
LQFOXGLQJUDGLRDFWLYHHOHPHQWVDQG
G3K\VLFDOKD]DUGVGXHWRQRLVHYLEUDWLRQDQGKHDW
,QDGGLWLRQWKHUHDUHZRUNSODFHKD]DUGVGXHWRHUJRQRPLFVLVVXHV
QRQ LRQL]LQJ UDGLDWLRQ FRQWURO URRP RSHUDWLRQV HOHFWULFDO KD]DUGV DQG
ILUH DQG H[SORVLRQ KD]DUGV 7KH DLU TXDOLW\ DURXQG DQ\ WKHUPDO SRZHU
SODQW LV GHWHULRUDWHG DQG SRSXODWLRQV RI WKH VXUURXQGLQJ ORFDOLWLHV DUH
XVXDOO\ DIIHFWHG (PSKDVLV LV UHTXLUHG IRU HIIHFWLYH PHDQV WR FRQWURO
HPLVVLRQVRISROOXWDQWVVXFKDVFDUERQGLR[LGHVXOSKXUGLR[LGHVR[LGHV
RI QLWURJHQ DQG RWKHU SDUWLFXODWH PDWWHUV 7KRXJK WHFKQRORJLFDO RSWLRQV
KDYH EHHQ H[SORUHG WR UHGXFH WKHVH SROOXWDQWV WKH SXEOLF FRQFHUQ LV
YLVLEOHLQYLHZRILWVORQJWHUPHIIHFWVRQKXPDQKHDOWKDQGHQYLURQPHQWDO
GHJUDGDWLRQ &RQWUROOLQJ RI HPLVVLRQV RI GLIIHUHQW SROOXWDQWV UHTXLUH
ͳǣ
ϵ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
HIIHFWLYH FRQWURO VWUDWHJ\ ERWK IRU WKH SROOXWDQWV WKDW DUH RI KLJK
FRQFHQWUDWLRQ DQG DOVR WKDW DUH SUHVHQW LQ VPDOO TXDQWLW\ 7KH &)733V
UHTXLUH PDLQWDLQLQJ VWRUDJH RI D ODUJH TXDQWLW\ RI FKHPLFDOV DQG RWKHU
PDWHULDOV IRU VXEVHTXHQW XVH VXFK DV FKHPLFDOV OLTXLG FKORULQH
K\GURFKORULF DFLG VRGLXP K\GUR[LGH DPPRQLXP K\GUR[LGH K\GUD]LQH
DQG IODPPDEOHFRPEXVWLEOH PDWHULDOV IXUQDFH RLO OLJKW GLHVHO RLO FRDO
+\GURJHQ 'HSHQGLQJ RQ WKH SURFHVV DQG PDWHULDO XVHG WKHUH DUH
SRWHQWLDOZRUNSODFHKD]DUGVDWGLIIHUHQWORFDWLRQVDQGDUHDVRIWKHSRZHU
SODQWV)RUEHWWHUXQGHUVWDQGLQJWKHGLIIHUHQWSODQWRSHUDWLRQVDUHOLVWHG
EHORZZLWKUHIHUHQFHWRKD]DUGV
• )LUH+D]DUGV&RDOFRQYH\RUDQGFRDOKDQGOLQJSODQWFDEOHVLQDOO
SODQW VHFWLRQV IXHO RLO KDQGOLQJ DQG VWRUDJH WUDQVIRUPHUV RLO DQG
OXEULFDQWVWRUHVERLOHUVHWF
• ([SORVLRQ +D]DUG +\GURJHQ JHQHUDWLRQ SODQW WXUER JHQHUDWRU
ZKHUH+\GURJHQLVXVHGIRUFRROLQJWUDQVIRUPHUVERLOHUHWF
• %XUVWLQJ RI SLSH OLQHV DQG YHVVHOV 6WHDP SLSHV GXH WR KLJK
SUHVVXUHDQGWHPSHUDWXUH+\GURJHQDFLGDQGRLOOLQHV
• 5HOHDVHRIJDVGXVWDQGOLTXLG&KHPLFDOVWDQNVLQZDWHUWUHDWPHQW
SODQW +\GURJHQ LQ WXUER JHQHUDWRU DUHD RI PDLQ SODQW +\GURJHQ
SODQWIXHORLOWDQNVLQIXHORLOKDQGOLQJVHFWLRQFRDOGXVWLQWUDQVIHU
SRLQWVFRDOKDQGOLQJDQGFUXVKHUXQLWVIO\DVKIURPFKLPQH\VDVK
SRQGVDQG(63KRSSHUV
:LWK WKH SUHVHQW XQGHUVWDQGLQJ RI GLIIHUHQW KD]DUGV LQGLFDWHG
DERYH WKH RFFXSDWLRQDO KHDOWK DQG VDIHW\ 2+6 LVVXHV RI WKH &)733V
UHTXLUH FULWLFDO FRQVLGHUDWLRQ ,Q EULHI LW PD\ EH KLJKOLJKWHG WKDW WKH
KD]DUGV DVVRFLDWHG ZLWK LQKDODWLRQ RI FRDO GXVW PLJKW UHVXOW LQ
GHYHORSPHQW RI GXVW UHODWHG PRUELGLW\ LQ WKH IRUP RI SQHXPRFRQLRVLV
ϭϬ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
FRDO ZRUNHUV SQHXPRFRQLRVLV VLOLFRVLV DQG QRQSQHXPRFRQLRWLF
SHUVLVWHQW UHVSLUDWRU\ PRUELGLW\ FKURQLF EURQFKLWLV HPSK\VHPD
DVWKPD7KHSRVVLELOLW\RIDVEHVWRVLVDPRQJZRUNHUVGXHWRLQKDODWLRQRI
DVEHVWRVILEHUVLVQRWUXOHGRXW2WKHUPRUELGLWLHVEHFDXVHRIH[SRVXUHWR
IO\DVKLQFOXGLQJPHWDOOLFFRQVWLWXHQWVOHDGDUVHQLFPHUFXU\HWFPLJKW
DOVR EH SUHVHQW ([SRVXUH WR RWKHU FKHPLFDOV XVHG DQG UHOHDVHG GXH WR
RSHUDWLRQV RI WKH &)733V PD\ DGYHUVHO\ DIIHFW KXPDQ KHDOWK ZLWK DFXWH
DQG FKURQLF LOO KHDOWK 7KH FKLOGUHQ DUH VSHFLDOO\ YLFWLP RI YDULRXV
UHVSLUDWRU\DLOPHQWV%HVLGHVDJULFXOWXUHDQG\LHOGRIWKHIUXLWSODQWVPD\
DOVREHDIIHFWHG
([SRVXUHVWRQRLVHDQGYLEUDWLRQDUHLQKHUHQWULVNVLQWKH&)733V
ZLWKSRVVLEOHKHDOWKHIIHFWVOLNHQRLVHLQGXFHGKHDULQJORVVUDLVHGEORRG
SUHVVXUHPXVFXORVNHOHWDOGLVRUGHUVUHJLRQDOYDVFXODUGLVRUGHUVKXPDQ
HUURUSURGXFWLYLW\ORVVDFFLGHQWVDQGLQMXULHV1RLVHLVJHQHUDWHGGXHWR
RSHUDWLRQV RI WXUELQH JHQHUDWRUV DX[LOLDULHV ERLOHUV FRDO FUXVKHUV
SXOYHUL]HUV SXPSVPRWRUV FRPSUHVVRUV GLHVHO HQJLQHV YLEUDWRUV HWF
,Q WKH SODQW DUHDV WKH RSHUDWRUV VXSHUYLVRUV DQG H[HFXWLYH HQJLQHHUV
ZRUNLQDFHQWUDOL]HGVHJUHJDWHGFRQWUROURRP7KHRFWDYHEDQGDQDO\VLV
RI WKH VRXQG SUHVVXUH OHYHOV LQGLFDWHG WKDW DW WKH WXUER JHQHUDWRU WKH
QRLVHOHYHODWFHQWUDOIUHTXHQF\RIN+]LVDERYHG%$7KHFOHDQLQJ
SHUVRQQHO DQG PDLQWHQDQFH ZRUNHUV DUH JHQHUDOO\ H[SRVHG WR QRLVH
KD]DUGVLQWKHUDQJHRIG%$7KHVXUURXQGLQJDUHDVRIKLJKQRLVH
PDFKLQHU\ ZHUH LGHQWLILHG DV QRLVH SURQH DUHDV RI WKH SODQW DQG WKH
ZRUNHUVPRYHPHQWVDUHUHVWULFWHG
+HDW UHODWHG GLVRUGHUV DUH DOVR SUHVHQW 7KH WXUELQH DQG ERLOHU
DUHDV ZHUH IRXQG WR EH WKH KHDWHG ]RQH LQ WKH SODQW EHVLGHV IXUQDFH
RSHUDWLRQV 7KH WKHUPDO LQVXODWLRQV XVHG LQ WKH KRW GXFWLQJV FDUU\LQJ
VWHDP ZHUH PDLQO\ RI JODVV ZRRO 7KH ZRUNHUV DUH DW SRWHQWLDO ULVN WR
HOHFWULF DQG PDJQHWLF ILHOGV (0) GXH WR WKHLU SUR[LPLW\ WR HOHFWULF
SRZHU JHQHUDWRUV HTXLSPHQW DQG KLJKYROWDJH WUDQVPLVVLRQ OLQHV
ϭϭ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7KRXJK UDGLRDFWLYLW\ OHYHOV RI XVHG FRDO DQG IO\ DVK GLVFKDUJHG IURP
GLIIHUHQW SRZHU SODQWV DSSHDUHG WR EH ZLWKLQ WKH SHUPLVVLEOH OLPLW D
FDXWLRQ LV EHLQJ UDLVHG RI OLNHO\ ORQJ WHUP HIIHFW RQ KXPDQ KHDOWK
%HVLGHV LQ YDULRXV ZRUN RSHUDWLRQV IRU PDQXDO PDWHULDOV KDQGOLQJ DQG
PDQPDFKLQH LQFRPSDWLELOLW\ WKH ZRUNHUV DUH VXEMHFWHG WR KLJK GHJUHH
RISK\VLFDOVWUHVVZLWKWKHULVNRIPXVFXORVNHOHWDOGLVRUGHUVDQGLQMXULHV
7KH HUJRQRPLF VWUHVVHV RI WKH RSHUDWRUV LQ FRQWURO URRP RSHUDWLRQV
FDQQRWEHLJQRUHG
(OHFWULFDOVKRFNEXUQVIURPHQHUJL]HGHTXLSPHQWDQGSRZHUOLQHV
DUH LQKHUHQW KD]DUGV DW ZRUNSODFHV 7KH SUHYDOHQFHLQFLGHQFH RI
DFFLGHQW DQG LQMXULHV DUH YHU\ PXFK DVVRFLDWHG ZLWK WKH &)733
RSHUDWLRQVZKLFKPLJKWFXOPLQDWHLQORVW ZRUNWLPHSDUWLDOGLVDEOHPHQW
DQG IDWDOLW\ 6LQFH ODUJH TXDQWLWLHV RI FRDO RWKHU IXHOV DQG FKHPLFDOV DUH
VWRUHGDQGXVHGLQ&)733VWKHULVNVRIILUHDQGH[SORVLRQDUHKLJKXQOHVV
VSHFLDOFDUHLVWDNHQLQKDQGOLQJWKHPDWHULDOV
1HHGOHVVWRPHQWLRQWKDWWKHPDQ\RIWKHKD]DUGVPHQWLRQHGDERYH
WKDW SUHYDLO LQ WKH ZRUNLQJ HQYLURQPHQW PLJKW DOVR EH SUHVHQW LQ WKH
FRPPXQLW\ HQYLURQPHQW $V FRUSRUDWH UHVSRQVLELOLW\ RI GLIIHUHQW SRZHU
JHQHUDWLQJ DXWKRULWLHV D FROOHFWLYH PDQDJHPHQW VWUDWHJ\ QHHGV WR EH
HYROYHG IRU PLWLJDWLQJ ULVNV RI KHDOWK KD]DUGV LQ WKH SODQW DQG RI WKH
QHLJKERXULQJFRPPXQLW\IURPWKHH[SRVXUHRIHQYLURQPHQWDOSROOXWDQWV
$OO SRZHU JHQHUDWLQJ DXWKRULWLHV PXVW KDYH ZHOOGHILQHG VHFWRU VSHFLILF
RFFXSDWLRQDO KHDOWK VDIHW\ DQG HQYLURQPHQW PDQDJHPHQW IUDPHZRUN LQ
SODFH DORQJVLGH RWKHU PDQDJHPHQW V\VWHPV LQ SUDFWLFH 7KLV VKRXOG EH
KDUPRQL]HG ZLWK WKH FXOWXUH RI WKH RUJDQL]DWLRQ WR UHIOHFW WKH FRQWLQXDO
FRPPLWPHQWRIWKHSRZHUSODQWDXWKRULWLHVRQWKHEURDGHUSHUVSHFWLYHRI
ZRUNHUV·KHDOWKDVZHOODVWKHFRPPXQLW\KHDOWK
ϭϮ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
*(1(6,6
7KH 3,/ :ULW 3HWLWLRQ &LYLO 1R RI ZDV ILOHG LQ WKH +RQ·EOH
6XSUHPH &RXUW RI ,QGLD E\ DQ 1*2 QDPHG 2FFXSDWLRQDO +HDOWK DQG
6DIHW\ $VVRFLDWLRQ $KPHGDEDG DJDLQVW WKH 8QLRQ RI ,QGLD ZLWK
UHVSRQGHQWV RI WKH 0LQLVWU\ RI +HDOWK DQG )DPLO\ :HOIDUH 0LQLVWU\ RI
3RZHU 0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV DQG 0LQLVWU\ RI /DERXU LQ
UHVSHFWRISROOXWLRQLVVXHVRIWKHFRDOILUHGWKHUPDOSRZHUSODQWVLQ,QGLD
7KHVHTXHQFHVRIHYHQWVDUHEULHIO\PHQWLRQHGEHORZ
D :ULW 3HWLWLRQ SUHOLPLQDU\ KHDULQJ RQ &RXQVHO SUD\V IRU
DGMRXUQPHQWWRILQGRXWGHWDLOVDERXWWKHWKHUPDOSRZHUSODQWV
E +HDULQJRQ7KHSHWLWLRQHUZDVJUDQWHGWZRZHHNV
WLPHWR
ILOHDGGLWLRQDODIILGDYLW
F +HDULQJ RQ $SSOLFDWLRQ IRU SHUPLVVLRQ WR ILOH DGGLWLRQDO
GRFXPHQWV,$1RZDVDOORZHG
G +HDULQJ RQ 9DNDODWQDPDDSSHDUDQFH DQG FRXQWHU
DIILGDYLW RI UHVSRQGHQW 1RV DQG EH ILOHG ZLWKLQ IRXU ZHHNV DQG
UHMRLQGHUZLWKLQIRXUZHHNVWKHUHDIWHU
H +HDULQJRQ7LPHWRILOH9DNDODWQDPDDQGFRXQWHUDIILGDYLW
ZDVJUDQWHGXSWR2IILFHLVGLUHFWHGWRUHFWLI\WKHQDPHRI
WKH DGYRFDWHRQUHFRUG IRU WKH SHWLWLRQHU LQ GDWDEDVH DV ZHOO DV DOO
UHOHYDQWUHSRUWV
I +HDULQJ RQ 5HVSRQGHQW 1R KDV ILOHG 9DNDODWQDPD RQ
&RXQWHU DIILGDYLW RQ EHKDOI RI UHVSRQGHQW 1RV DQG KDVEHHQILOHGRQZKHUHDVUHVSRQGHQW1RKDVILOHGFRXQWHU
DIILGDYLW RQ /HDUQHG FRXQVHO 0V 3RRMD 6KDUPD DSSHDULQJ
ϭϯ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
IRU0V$SDUQD$GYRFDWHVWDWHVWKDWVLQFHWKHPDWWHULVSHQGLQJIRUD
ORQJSHULRGLWUHTXLUHVWREHOLVWHGEHIRUHWKH+RQ
EOH&RXUWDQGWKH\
ZLOO ILOH UHMRLQGHU DIILGDYLW LI DQ\ EHIRUH VXFK OLVWLQJ 7KH\ DUH
SHUPLWWHG WR GR VR 2IILFH LV GLUHFWHG WR SODFH WKH PDWWHU EHIRUH WKH
+RQ
EOH&RXUW3HWLWLRQHULVSHUPLWWHGWRILOHUHMRLQGHUDIILGDYLWEHIRUH
VXFKOLVWLQJDVSHUWKHUXOH
J +HDULQJRQ/LVWDIWHUVXPPHUYDFDWLRQ
K +HDULQJ RQ 7KH SHWLWLRQHU VKDOO ILOH WKH DGGLWLRQDO
VXJJHVWLRQVDVWRZKDWVRUWRIPHDVXUHVDUHWREHWDNHQWRHQVXUHWKH
KHDOWK DQG VDIHW\ RI WKH HPSOR\HHV ZRUNLQJ LQ WKH YDULRXV WKHUPDO
SURMHFWV LQ YDULRXV 6WDWHV /HDUQHG $GGO 6ROLFLWRU *HQHUDO ZLOO DOVR
JLYH FRPSUHKHQVLYH VXJJHVWLRQV DQG WR ILQG RXW WKH SUHVHQW SRVLWLRQ
DVUHJDUGVWKHKHDOWKFDUHRIWKHVHHPSOR\HHV
)RU SUD\HU 1R DQG $GGLWLRQDO 6ROLFLWRU *HQHUDO RI *RYW RI ,QGLD
LQIRUPHGWRWKH6HFUHWDU\3RZHURQWK-DQXDU\WKDWWKH1,2+
XQGHUWKH0LQLVWU\RI+HDOWKKDVWKHH[SHUWLVHRQLVVXHVRIKHDOWKDQG
VDIHW\RIZRUNHUV
L +HDULQJ RQ /HDUQHG FRXQVHO IRU WKH SHWLWLRQHU KDG PDGH
WKH IROORZLQJ QLQH VXJJHVWLRQV VR DV WR UHGXFH WKH RFFXSDWLRQDO
KD]DUGVRIWKHHPSOR\HHVRIWKHWKHUPDOSRZHUVWDWLRQVLQWKHFRXQWU\
&RPSUHKHQVLYH PHGLFDO FKHFN XS RI DOO ZRUNHUV LQ DOO FRDO
ILUHG WKHUPDO SRZHU VWDWLRQV E\ GRFWRUV DSSRLQWHG LQ
FRQVXOWDWLRQ ZLWK WKH WUDGH XQLRQV )LUVW PHGLFDO FKHFN XS WR
EH FRPSOHWHG ZLWKLQ VL[ PRQWKV 7KHQ WR EH GRQH RQ \HDUO\
EDVLV
)UHHDQGFRPSUHKHQVLYHPHGLFDOWUHDWPHQWWREHSURYLGHGWR
DOO ZRUNPHQ IRXQG WR EH VXIIHULQJ IURP DQ RFFXSDWLRQDO
GLVHDVHDLOPHQWRUDFFLGHQWXQWLOFXUHGRUXQWLOGHDWK
ͳǣ
ϭϰ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
6HUYLFHV RI WKH ZRUNPHQ QRW WR EH WHUPLQDWHG GXULQJ LOOQHVV
DQGWREHWUHDWHGDVLIRQGXW\
&RPSHQVDWLRQ WR EH SDLG WR ZRUNPHQ VXIIHULQJ IURP DQ\
RFFXSDWLRQDOGLVHDVHDLOPHQWRUDFFLGHQWLQDFFRUGDQFHZLWK
WKHSURYLVLRQVRIWKH:RUNPHQ
V&RPSHQVDWLRQ$FW
0RGHUQ SURWHFWLYH HTXLSPHQW WR EH SURYLGHG WR ZRUNPHQ DV
UHFRPPHQGHG E\ DQ H[SHUW ERG\ LQ FRQVXOWDWLRQ ZLWK WKH
WUDGHXQLRQV
6WULFW FRQWURO PHDVXUHV WR EH LPPHGLDWHO\ DGRSWHG IRU WKH
FRQWURO RI GXVW KHDW QRLVH YLEUDWLRQ DQG UDGLDWLRQ WR EH
UHFRPPHQGHG E\ WKH 1DWLRQDO ,QVWLWXWH RI 2FFXSDWLRQDO
+HDOWK1,2+$KPDGDEDG*XMUDW
$OO HPSOR\HUV WR DELGH E\ WKH &RGH RI 3UDFWLFH RQ
2FFXSDWLRQDO 6DIHW\ DQG +HDOWK $XGLW DV GHYHORSHG E\ WKH
%XUHDXRI,QGLDQ6WDQGDUGV
6DIH PHWKRGV EH IROORZHG IRU WKH KDQGOLQJ FROOHFWLRQ DQG
GLVSRVDORIKD]DUGRXVZDVWHWREHUHFRPPHQGHGE\1,2+
$SSRLQWPHQW RI D &RPPLWWHH RI H[SHUWV E\ 1,2+ LQFOXGLQJ
WKHUHLQ 7UDGH 8QLRQ UHSUHVHQWDWLYHV DQG +HDOWK DQG 6DIHW\
1*2
V WR ORRN LQWR WKH LVVXH RI +HDOWK DQG 6DIHW\ RI ZRUNHUV
DQGPDNHUHFRPPHQGDWLRQV
/HDUQHG $GGLWLRQDO 6ROLFLWRU *HQHUDO VXEPLWWHG WKDW VXJJHVWLRQ
1RV WR KDYH EHHQ DFFHSWHG E\ WKH &HQWUDO *RYHUQPHQW DV WKH\ DUH
EURDGO\ FRYHUHG E\ YDULRXV H[LVWLQJ HQDFWPHQWV DQG FRQVHTXHQWO\
SURDFWLYH DFWLRQ ZRXOG EH WDNHQ IRU HIIHFWLYH LPSOHPHQWDWLRQ RI WKH
UHOHYDQW ODZV LQ SDUWLFXODU WKH DUHDV FRYHUHG E\ WKRVH VXJJHVWLRQV
ϭϱ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
0LQLVWU\ RI /DERXU )RXUWK UHVSRQGHQW PD\ DOVR WDNH VRPH VWHSV WR VHH
WKDWWKHVHVXJJHVWLRQVDQGWKHUHOHYDQWSURYLVLRQVRIYDULRXV/DERXU$FWV
DUH SURSHUO\ LPSOHPHQWHG E\ WKH &HQWUDO DQG WKH 6WDWH *RYHUQPHQWV WR
SURWHFW WKH ZHOIDUH RI WKHVH HPSOR\HHV /HDUQHG $GGLWLRQDO 6ROLFLWRU
*HQHUDO VHHNV IXUWKHU WLPH WR H[DPLQH ZKHWKHU WKH UHPDLQLQJ WZR
VXJJHVWLRQV1RDQGFRXOGDOVREHLPSOHPHQWHGDQGLIVRWKHH[WHQW
M +HDULQJRQ/LVWLQ-XO\
7KH 6HFUHWDU\ SRZHU YLGH OHWWHU 1R 7K GDWHG WK
-XO\VXJJHVWHGIRUHQWUXVWLQJWKH1,2+WRFRQGXFWWKHVWXG\VXUYH\
RQ WKH KHDOWK DQG VDIHW\ QRUPV LQ FRDOILUHG WKHUPDO SRZHU SODQWV
&)733V ,Q UHVSRQVH WR WKH DERYH WKH 0R+ ): UHTXHVWHG WK -XO\
WKH 'LUHFWRU 1,2+ WR FRQGXFW QHFHVVDU\ VWXG\VXUYH\ 7KH
6HFUHWDU\ +HDOWK LQIRUPHG WR WKH 6HFUHWDU\ 3RZHU GDWHG UG
6HSWHPEHU WKDW WKH 1,2+ KDV EHHQ HQWUXVWHG WR FRQGXFW WKH
VWXG\VXUYH\
7KH 'LUHFWRU 1,2+ YLGH OHWWHU 1R 1,2+&($ GDWHG WK
1RYHPEHULQLWLDOO\VXJJHVWHGWKH&($WRFRQVWLWXWHDFRPPLWWHHIRU
FRQGXFWLQJ D VWXG\ LQ ZKLFK WKH 1,2+ UHSUHVHQWDWLYH ZLOO EH RQH RI WKH
PHPEHUV +RZHYHU WKH 1,2+ RIIHUHG GDWHG WK 'HFHPEHU WR
XQGHUWDNH D ZDONWKURXJKVXUYH\ IRU JHWWLQJ ILUVW KDQG LQIRUPDWLRQ
UHJDUGLQJ WKH HQYLURQPHQWDO FRQGLWLRQV LQVLGH D &)733 7KH &($
DFFRUGLQJO\ DGYLVHG 1,2+ WR FRQGXFW VWXG\ DW 5LKDQG 6XSHU 7KHUPDO
3URMHFWRI173&5LKDQG83
$ WHDP RI VFLHQWLVWV IURP 1,2+ DQG LW·V 5HJLRQDO 2FFXSDWLRQDO
+HDOWK&HQWUH²(DVWHUQ52+&(.RONDWDYLVLWHG5LKDQG6736IURPUG
WRWK)HEUXDU\DQGVXEPLWWHGLWVUHSRUWWRWKH&($WK0D\
IRUVXEPLVVLRQWRWKH+RQ·EOH&RXUW7KHUHSRUWRI1,2+VXJJHVWHGIRUDQ
LQGHSWK VWXG\ FRYHULQJ WRWDO HQYLURQPHQWDO DQG RFFXSDWLRQDO KHDOWK
ϭϲ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
DVVHVVPHQW RI DOO RSHUDWLRQV LQFOXGLQJ WKH VXUURXQGLQJ FRPPXQLW\ WR
DVFHUWDLQWKHPDJQLWXGHRIWKHSUREOHPIDFHGE\WKH&)733V
N +HDULQJRQ/LVWDIWHUHLJKWZHHNV
O +HDULQJ RQ (LJKW ZHHNV WLPH LV JUDQWHG WR WKH 8QLRQ RI
,QGLDWRFRPSO\ZLWKWKHGLUHFWLRQVRIWKLV&RXUW
P 2Q WK )HEUXDU\ WKH 6HFUHWDU\ 'HSW RI +HDOWK 5HVHDUFK '+5
*RYW RI ,QGLD 'LUHFWRU*HQHUDO ,QGLDQ &RXQFLO RI 0HGLFDO
GLVFXVVHGWKHPDWWHUZLWKWKHRIILFLDOVRIWKH0LQLVWU\RI3RZHUDQGWKH
&($ RQ WKH FRPSRVLWLRQ RI WKH FRPPLWWHH WR EH FRQVWLWXWHG E\ 1,2+
DQG WR SURYLGH IHHGEDFN RQ WKH VXEMHFW IRU RQZDUG WUDQVPLVVLRQ WR
+RQ·EOH 6XSUHPH &RXUW $FFRUGLQJO\ D FRPPLWWHH RI H[SHUWV 7DEOH
ZDV FRQVWLWXWHG E\ 1,2+ LQ $SULO DSSURYHG E\ WKH '+5 WK
$SULODQGDFFHSWHGE\WKH+RQ·EOH&RXUW
Q +HDULQJKHOGRQ/HDUQHG6ROLFLWRU*HQHUDOVWDWHGWKDWWKH
&RPPLWWHH RI ([SHUWV KDV EHHQ GXO\ FRQVWLWXWHG E\ 1,2+ DQG LW ZLOO
VXEPLW LWV VWDWXV UHSRUW RQ WKH QH[W RFFDVLRQ 7KH :ULW 3HWLWLRQ VKDOO
VWDQGRYHUIRUHLJKWZHHNV
R +HDULQJ RQ 7KH :ULW 3HWLWLRQ VKDOO VWDQG RYHU IRU HLJKW
ZHHNV
S +HDULQJRQ3ODFHWKH:ULW3HWLWLRQLQ$SULO
T 7KHFDVHZDVOLVWHGIRUKHDULQJRQ+RZHYHUWKH6ROLFLWRU
*HQHUDORI,QGLDKDVLQWLPDWHGWKDWPDWWHULVOLNHO\WREHQH[WOLVWHGRQ
WK$XJXVW7KHUHSRUWRIWKH([SHUW&RPPLWWHHPD\EHILQDOL]HG
E\ VW 0D\ 7KH UHSRUW PD\ EH ILOHG LQ WKH 6XSUHPH &RXUW
5HJLVWU\ZLWKDQDFFRPSDQ\LQJDIILGDYLW
ͳǣ
ϭϳ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH&RPSRVLWLRQRIWKHH[SHUWFRPPLWWHHFRQVWLWXWHGE\1,2+
'LUHFWRU
1DWLRQDO,QVWLWXWHRI2FFXSDWLRQDO+HDOWK
0HJKDQL1DJDU$KPHGDEDG²
&KDLUPDQ
&KLHI(QJLQHHU/HJDO&HQWUDO(OHFWULFLW\
$XWKRULW\1HZ'HOKL²
&R
FKDLUPDQ
5HSUHVHQWDWLYH0LQLVWU\RI(QYLURQPHQW)RUHVWV
*RYWRI,QGLD1HZ'HOKL
0HPEHU
'LUHFWRU*HQHUDO5HSUHVHQWDWLYH'LUHFWRU*HQHUDO 0HPEHU
)DFWRU\$GYLFH6HUYLFHDQG/DERXU,QVW0XPEDL
'LUHFWRU5HSUHVHQWDWLYH,QGLDQ,QVWLWXWHRI
7R[LFRORJ\5HVHDUFK/XFNQRZ²
0HPEHU
'LUHFWRU5HSUHVHQWDWLYH1((5,1DJSXU
0HPEHU
'LUHFWRU5HSUHVHQWDWLYH
%XUHDXRI,QGLDQ6WDQGDUGV1HZ'HOKL
0HPEHU
5HSUHVHQWDWLYH&HQWUDO3ROOXWLRQ&RQWURO%RDUG
1HZ'HOKL
0HPEHU
5HSUHVHQWDWLYH%KDEKD$WRPLF5HVHDUFK&HQWUH
0XPEDL
0HPEHU
1DWLRQDO6DIHW\&RXQFLO1HZ'HOKL
0HPEHU
5HSUHVHQWDWLYHIURP173&
5HSUHVHQWDWLYHIURP'9&
0HPEHU
0HPEHU
5HSUHVHQWDWLYHIURP:HVW%HQJDOVWDWH
0HPEHU
5HSUHVHQWDWLYHIURP0DKDUDVKWUD6WDWH
0HPEHU
7UDGH8QLRQ,178&$,8&+06%06
5HSUHVHQWDWLYHDW5LKDQG
0HPEHU
1*2FRQFHUQHG1*2DW5LKDQG
0HPEHU
2IILFHULQ&KDUJH
5HJLRQDO2FFXSDWLRQDO+HDOWK&HQWUH(DVWHUQ
.RONDWD
0HPEHU
6HFUHWDU\
ϭϴ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
'LIIHUHQW PHHWLQJV RI WKH H[SHUW FRPPLWWHH WRRN SODFH DV
PHQWLRQHGEHORZ7DEOHDQGWKHH[SHUWPHPEHUVLQODUJHJURXSDQG
DOVR LQ VPDOO JURXS GHOLEHUDWHG RQ WKH LVVXHV WR ILQDOL]H WKH UHSRUW 7KH
PHPEHUVDQGRWKHULQYLWHHVDWWHQGHGLQGLIIHUHQWPHHWLQJVDUHSUHVHQWHG
LQ7DEOH
7DEOH0HHWLQJVRIWKH([SHUWFRPPLWWHH
'DWH
)HEUXDU\
/RFDWLRQ
,&051HZ
'HOKL
$SULO
52+&(
.RONDWD
0D\
,&05+4
1HZ'HOKL
2FWREHU
52+&(
.RONDWD
2FWREHU
52+&(
.RONDWD
2FWREHU
16&
0XPEDL
'HFHPEHU '9&
.RONDWD
)HEUXDU\
173&
6LQJUDXOL
0DUFK
'9&
.RONDWD
$SULO
1,2+
$KPHGDEDG
0D\
1,2+
$KPHGDEDG
%ULHI
%ULHIPHHWLQJRIRIILFLDOVRI,&05
1,2+0LQLVWU\RI3RZHUDQG&($
%ULHIPHHWLQJRIRIILFLDOVRI1,2+
52+&(DQG&($
0HHWLQJFKDLUHGE\'U90
.DWRFK'*,&056HFUHWDU\'+5
0LQLVWU\RI+HDOWKDQG)DPLO\
:HOIDUH,QWURGXFWRU\PHHWLQJ
([SHUWFRPPLWWHHPHHWLQJ&RUH
FRPPLWWHHIRUPHG
&RUHFRPPLWWHHPHHWLQJRQ
HQYLURQPHQW
&RUHFRPPLWWHHPHHWLQJRQ
KHDOWKDQGVDIHW\
([SHUWFRPPLWWHHPHHWLQJ
([SHUWFRPPLWWHHPHHWLQJ
6PDOOJURXSPHHWLQJ
([SHUWFRPPLWWHHPHHWLQJ
6PDOO JURXS PHHWLQJ WR ILQDOL]H
UHSRUW
ϭϵ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH3DUWLFLSDQWVLQ'LIIHUHQW0HHWLQJV
,QGLDQ&RXQFLORI0HGLFDO
5HVHDUFK1HZ'HOKL
'U90.DWRFK
'U%HOD6KDK
'U56'KDOLZDO
1DWLRQDO,QVWLWXWHRI
3.1DJ
2FFXSDWLRQDO+HDOWK
'U3.*DQJRSDGK\D\
$KPHGDEDG
'U$.0XNKHUMHH
'U0UV$QMDOL1DJ
0LQLVWU\RI3RZHUDQG&HQWUDO
0U3XQHHW*HRO
(OHFWULFLW\$XWKRULW\1HZ'HOKL 6KUL6XUHVK&KDQGHU
6KUL35DXW
0U6.3DWWDQD\DN
0U6DQGHVK.U6KDUPD
0U56KDUPD
0LQLVWU\RI(QYLURQPHQWDQG
0U1HHUDM.KDWUL
)RUHVWV1HZ'HOKL
'LUHFWRUDWH*HQHUDORI)DFWRU\ 6KUL66*DXWDP
$GYLFH6HUYLFHDQG/DERXU
6KUL055DMSXW
,QVWLWXWH0XPEDL
,QGLDQ,QVWLWXWHRI7R[LFRORJ\
5HVHDUFK/XFNQRZ
1DWLRQDO(QYLURQPHQWDO
(QJLQHHULQJ5HVHDUFK,QVWLWXWH
1DJSXU
%XUHDXRI,QGLDQ6WDQGDUGV
1HZ'HOKL
'U$.6ULYDVWDYD
'U0UV$QMDOL6ULYDVWDWD
0U.9*HRUJH
'U('HYDQGUD
0V%6DQGK\D
&HQWUDO3ROOXWLRQ&RQWURO%RDUG 0U56.RUL
1HZ'HOKL
'U66%DOD
6UL$&KDWWRSDGK\D\
%KDEKD$WRPLF5HVHDUFK
&HQWUH0XPEDL
6KUL9'3XUDQLN
'U507ULSDWKL
ϮϬ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
1DWLRQDO6DIHW\&RXQFLO
0XPEDL
'U9%6DQW
6KUL55'HRJKDUH
1DWLRQDO7KHUPDO3RZHU
&RUSRUDWLRQ1HZ'HOKL
'U%-3UDVDG
'U9LMD\3UDNDVK
'DPRGDU9DOOH\&RUSRUDWLRQ
.RONDWD
'U$MD\.XPDU$JDUZDO
'U6XEUDWD'XWWD
6KUL1LOHVK.XPDU
:HVW%HQJDO3RZHU
'HYHORSPHQW&RUSRUDWLRQ/WG
.RONDWD
0DKDUDVKWUD6WDWH3RZHU
*HQHUDWLRQ&R/WG0XPEDL
'U'35R\&KRZKDU\
0U$0XNKRSDGK\D\
1XFOHDU3RZHU&RUSRUDWLRQ
0XPEDL
,QGLDQ1DWLRQDO7UDGH8QLRQ
&RQJUHVV3DWQD
,QWHUQDWLRQDO)HGHUDWLRQRI
%XVLQHVVDQG3URIHVVLRQDO
:RPHQ$KPHGDEDG
,QGLDQ$VVRFLDWLRQRI
2FFXSDWLRQDO+HDOWK0XPEDL
6KUL'.*R\DO
6KUL056KHODU
6KUL.0&KLUXWNDU
6KUL&KDQGUD3UDNDVK6LQJK
3URI$QLOD5'KRODNLD
3URI'U'1$QGKDUH
3+272,//8675$7,212)&2$/),5('7+(50$/
32:(53/$1723(5$7,216
7KH &RDO ILUHG WKHUPDO SRZHU SODQW FRQVLVWV RI GLIIHUHQW RSHUDWLRQV DQG
SURFHVVHV IRU SRZHU JHQHUDWLRQ LQ D VHTXHQWLDO PDQQHU WKH PDLQ UDZ
PDWHULDOVEHLQJFRDOFRPLQJIURPLWVVRXUFH$VFKHPDWLFIORZFKDUWRIWKH
PDMRUVHFWLRQVRID&)733LVVKRZQLQ)LJXUH7KHSKRWRLOOXVWUDWLRQVRI
GLIIHUHQWSRZHUSODQWRSHUDWLRQVDUHDOVRSUHVHQWHGEHORZ)LJXUHDQG
7KHVH SKRWRJUDSKV ZHUH WDNHQ E\ WKH 1,2+ WHDP PHPEHUV GXULQJ
WKHLUYLVLWDW5LKDQG6736DQGWKHSKRWRJUDSKVREWDLQHGWKURXJKWKH&($
21
Chapter 1: Preamble and Genesis
COAL STORAGE YARD
POWER TRANSMISSION
AIR
TURBINE
BOILER
GENERATOR
TOWER
DRAUGHT
FEED WATER
PROCESSING PLANT
PUMP
__
----- --------------------------------------------
~
-w..iriR--:::::::::::::::::::::::::.:
---------·
·--------·
~-~-~-::::::::::::·-::::::::::::::::::::::: RESOURCE:::::::::::::::::::::--.
------------------·-------------- -
Figure 1. Diagramatic flow chart of power generation in coal-fired
thermal power plants
ϮϮ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
)LJXUH6RPHVHFWLRQVDQGRSHUDWLRQVLQFRDOILUHGWKHUPDOSRZHUSODQWV
Ϯϯ
ͳǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
)LJXUH6RPHVHFWLRQVDQGRSHUDWLRQVLQFRDOILUHGWKHUPDOSRZHUSODQWV
Ϯϰ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&+$37(5
&RXUWGLUHFWLYHVRQHWRILYHDUHRIJHQHUDOFRQVLGHUDWLRQVDQGDUH
XVXDOO\FRYHUHGE\H[LVWLQJUXOHVDQGUHJXODWLRQVZLWKPLQRUDGMXVWPHQWV
'LUHFWLRQ1RVVL[HLJKWLVGHDOWKHUHZLWKVHSDUDWHO\'LUHFWLRQ1R
VHYHQRQ2FFXSDWLRQDO6DIHW\DQG+HDOWK$XGLWLVWREHIROORZHGDVSHU
WKHUHODWHGVWDQGDUGRIWKH%XUHDXRI,QGLDQ6WDQGDUGVUHIHUWR$QQH[XUH
&RXUW GLUHFWLRQ 1R RQ ([SHUW &RPPLWWHH FRQVWLWXWLRQ DQG
UHFRPPHQGDWLRQLVDOVRLQFOXGHGLQWKHODWWHUSDUWRIWKLVUHSRUW
&2857',5(&7,2112
6WULFWFRQWUROPHDVXUHVWREHLPPHGLDWHO\DGRSWHGIRUWKHFRQWURORI
GXVWKHDWQRLVHYLEUDWLRQDQGUDGLDWLRQWREHUHFRPPHQGHGE\WKH
1DWLRQDO ,QVWLWXWH RI 2FFXSDWLRQDO +HDOWK 1,2+ $KPDGDEDG
*XMUDW
7KH JHQHUDWLRQ RI SRZHU LQ FRDO ILUHG WKHUPDO SRZHU SODQWV &)733V
LQYROYHV GLIIHUHQW SURFHVVHV DQG WKHVH SURFHVVHV DUH QRW IUHH IURP
KD]DUGV7KHFRDOKDQGOLQJSODQWERLOHUXQLWVWXUELQHVIHHGZDWHUXQLWV
IXHO KDQGOLQJ SODQW JHQHUDWRUV HOHFWURVWDWLF SUHFLSLWDWRUV DQG DVK
KDQGOLQJXQLWVDUHVRPHRIWKHUHFRJQL]HGKD]DUGRXVDUHDV7KHKD]DUGV
H[LVW LQ WKH IRUP RI SK\VLFDO KD]DUGV FKHPLFDO KD]DUGV HUJRQRPLFV
SUREOHPV HWF ,Q RUGHU WR DGGUHVV GLIIHUHQW HQYLURQPHQWDO LVVXHV DQG
KD]DUGV DW ZRUNSODFHV WKH VWDWXWRU\ $FWV PRGHO UXOHV QRUPV DQG
Ϯϱ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
VWDQGDUGV DUH DSSOLFDEOH DQG WKHVH OHJDO SURYLVLRQV DUH IRUPXODWHG DQG
DPHQGHG IURP WLPH WR WLPH IRU WKH LQGXVWULDO DQG FRPPXQLW\
HQYLURQPHQW
$VGHVFULEHGHDUOLHULQ&)733VDVXEVWDQWLDOTXDQWLW\RIGXVWJHWV
JHQHUDWHGDWDOOSODFHVLQKDQGLQJVROLGIXHOVDGGLWLYHVDQGVROLGZDVWHV
HJDVK'XVWPD\FRQWDLQIUHHVLOLFDDVVRFLDWHGZLWKVLOLFRVLVDUVHQLF
VNLQ DQG OXQJ FDQFHU FRDO GXVW EODFN OXQJ DQG RWKHU SRWHQWLDOO\
KDUPIXO VXEVWDQFHV 2FFXSDWLRQDO H[SRVXUH WR KHDW RFFXUV GXULQJ
RSHUDWLRQ DQG PDLQWHQDQFH RI FRPEXVWLRQ XQLWV SLSHV DQG UHODWHG KRW
HTXLSPHQW1RLVHLVDSRWHQWLDOKD]DUGLQWKH&)7337KHVRXUFHVRIQRLVH
JHQHUDWLRQ LQFOXGH WKH WXUELQH JHQHUDWRUV ERLOHUV DQG DX[LOLDULHV VXFK
DV SXOYHUL]HUV GLHVHO HQJLQHV PRWRUV DQG WUDQVIRUPHUV FRPSUHVVRUV
IDQV DQG GXFWZRUN FRQGHQVHUV SLSLQJ DQG YDOYHV FRROLQJ WRZHUV
HOHFWURVWDWLF SUHFLSLWDWRUV HWF 7KH ZRUNHUV DUH H[SRVHG WR ZKROH ERG\
DV ZHOO DV KDQGDUP YLEUDWLRQ LQ FRXUVH RI WKHLU ZRUN RQ YLEUDWLQJ
VXUIDFHVDQGLQRSHUDWLQJKDQGWRROVHWF
'LIIHUHQW PLQLVWULHV RI WKH *RYW RI ,QGLD QDPHO\ WKH 0LQLVWU\ RI
(QYLURQPHQW )RUHVWV WKH 0LQLVWU\ RI /DERXU (PSOR\PHQW WKH
0LQLVWU\RI0LQHV&HQWUDODQGVWDWH3ROOXWLRQ&RQWURO%RDUGV'LUHFWRUDWH
RI)DFWRULHV%RLOHUV'LUHFWRUDWH*HQHUDORI)DFWRU\$GYLFH6HUYLFHV
/DERXU,QVWLWXWH'*)$6/,'LUHFWRUDWH*HQHUDORI0LQHV6DIHW\'*06
'RFN /DERXU %RDUG %XUHDX RI ,QGLDQ 6WDQGDUGV %,6 DUH WKH
RUJDQL]DWLRQV UHVSRQVLEOH LQ SURPXOJDWLQJ DFWV IUDPLQJ PRGHO UXOHV
VWDWHUXOHVQRUPVVWDQGDUGVDQGJXLGHOLQHVDQGLWVLPSOHPHQWDWLRQZLWK
UHVSHFWWRKHDOWKVDIHW\DQGHQYLURQPHQWDOLVVXHV
+HUHZLWK WKH H[LVWLQJ QRUPV DQGRU SHUPLVVLEOH OLPLW YDOXHV DV
DSSOLFDEOHLQ,QGLDDUHJLYHQLQWDEXODUIRUPDW7DEOHWR7KHWDEOHV
DOVR LQFOXGH VWDQGDUGV IROORZHG E\ GLIIHUHQW FRXQWULHV DQG LQWHUQDWLRQDO
DJHQFLHV $QDO\VLV LQGLFDWHV WKDW VRPH QRUPV DQG JXLGHOLQHV VXFK DV
Ϯϲ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
DPELHQWDLUTXDOLW\VWDQGDUGVDSSOLFDEOHLQ,QGLDDUHUHODWLYHO\VWULQJHQW
DVFRPSDUHGWRRWKHUVWDQGDUGVDVWDEXODWHG7KHUHH[LVWVRPHJDSDUHDV
DOVR IRU VXLWDEOH DPHQGPHQW LQ WKH ,QGLDQ FRQWH[W $V LGHQWLILHG LQ
FHUWDLQDUHDVRIZRUNSODFHHQYLURQPHQWWKH,QGLDQVWDQGDUGVDQGQRUPV
PD\UHTXLUHWREHUHDVVHVVHGLQPDNLQJLWFRPSDUDEOH6LQFHQRVSHFLILF
VWDQGDUGV RQ KHDOWK DQG VDIHW\ LVVXHV DUH VSHFLDOO\ SUHVFULEHG IRU WKH
&)733VWKLVJDSDUHDUHTXLUHVWREHDSSURSULDWHO\DGGUHVVHGLQRUGHUWR
IRUPXODWH VHFWRU VSHFLILF JXLGHOLQHV DQG VWDQGDUGV IRU &)733V 7LOO WKHQ
WKHQRUPVDSSOLFDEOHWRJHQHUDOLQGXVWULDOVLWXDWLRQVDVSHUWKH)DFWRULHV
$FWPD\EHIROORZHGXSE\WKH&)733V
KRXUO\
$QQXDO
KRXUO\
$QQXDO
$PPRQLD
1+JP
&DUERQPRQR[LGH
&2PJP
2]RQH2JP
$QQXDO
KRXUO\
$QQXDO
KRXUO\
KRXUO\
KRXUO\
KRXUO\
KRXUO\
$QQXDO
KRXUO\
$QQXDO
6XOSKXUGLR[LGH
62JP
KRXUO\
1LWURJHQGLR[LGH
12JP
7RWDOVXVSHQGHG
SDUWLFXODWHPDWWHU
763JP
3DUWLFXODWHPDWWHU
30JP
3DUWLFXODWHPDWWHU
30JP
,QGLDD
'XUDWLRQ
:RUOG
%DQNE
F
F
:+2E
86(3$E
6WDQGDUGV
(8E
7DEOH6WDQGDUGVRIDPELHQWDLUTXDOLW\
)(3$G
GR
GR
GR
GR
GR
GR
GR
1$$46&3&%
JXLGHOLQHV
GR
1,2+VXJJHVWLRQ
IRUDSSOLFDWLRQLQ
&)733V
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
3ROOXWDQW
Ϯϳ
1RWH
+\GURJHQVXOSKLGH
+6JP
/HDG3EJP
1LFNHO1LQJP 'R
GR
GR
GR
GR
D1DWLRQDODPELHQWDLUTXDOLW\VWDQGDUG1$$46&3&%1HZ'HOKL1RY%
3&,,
E:RUOG%DQN:RUOG+HDOWK2UJDQL]DWLRQ:+286(QYLURQPHQW3URWHFWLRQ
$JHQF\86(3$
F:+2
G)(3$)HGHUDO(QYLURQPHQW3URWHFWLRQ$JHQF\
7KH0LQLVWU\RI(QYLURQPHQW)RUHVWDQG&3&%DUHWKHVWDWXWRU\RUJDQL]DWLRQVIRUIRUPXODWLQJ
DPELHQW DLU TXDOLW\ VWDQGDUGV DQG WKDW DOVR DSSOLHV WR WKH &)733V 1R UHIHUHQFH OHYHO RI
DPELHQW K\GURJHQ VXOSKLGH +6 LV DYDLODEOH LQ ,QGLD KRZHYHU WKH ZRUNSODFH OHYHO RI +6
FRQFHQWUDWLRQKDVEHHQVSHFLILHGDVSHUWKH)DFWRULHV$FW
KRXUO\
ϭ
$QQXDO
$UVHQLF$VQJP
$QQXDO
$QQXDO
KRXUO\
$QQXDO
%HQ]RD3\UHQH
%D3SDUWLFXODWH
SKDVHRQO\QJP
$QQXDO
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
%HQ]HQH
&+JP
Ϯϴ
Ϯϵ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH7KUHVKROGOLPLWYDOXHV7:$PJPRIFKHPLFDOVDW
ZRUNSODFH
3ROOXWDQWV
,QGLD
$&*,+
1,2+
)DFWRULHV$FW
VXJJHVWLRQIRU
DSSOLFDWLRQLQ
&)733V
'XVWWRWDO
>6L2@
'XVWUHVSLUDEOH
&RDO'XVW
UHVSLUDEOH
1LWURJHQGLR[LGH
12
6XOSKXUGLR[LGH62
)OXRULGH)
&KORULQH&O
&DUERQPRQR[LGH
&2
2]RQH2
$PPRQLD1+
6L2
>6L2@
FRQWDLQLQJ
6L2
1RUPVDV
SUHVFULEHGLQ
WKH)DFWRULHV
$FW
7KH)DFWRULHV
$FW
5XOHVZLWK
DPHQGPHQWV
UHFRPPHQG
SUHVFULEH
ZRUNSODFH
QRUPV
%HQ]HQH&+
)RUPDOGHK\GH
+&+2
7ROXHQH
;\OHQHV
2LOPLVW
0HUFXU\+J
0DQJDQHVH0Q
/HDG3E
&KURPLXP&U
$UVHQLF$V
1LFNHO&DUERQ\O1L
+\GURJHQ6XOSKLGH
+6
1XPEHUVLQSDUHQWKHVLVDUHWKHVXJJHVWHG\HDURIVWDQGDUG
$&*,+$PHULFDQ&RQIHUHQFHRI*RYHUQPHQWDO,QGXVWULDO+\JLHQLVWV
&XUUHQW7/97:$WKUHVKROGOLPLWYDOXHRIWLPHZHLJKWHGDYHUDJHIRU
WRWDOPDQJDQHVHWRPJPIRUWKHLQKDODEOHIUDFWLRQDQGPJP
IRUWKHUHVSLUDEOHIUDFWLRQ
0:RUPRUH
/HVVWKDQ0:
0:RUDERYH
*UHDW
%ULWDLQ
PJP
,QGLD
PJ1P
6SDLQ
86$
(&
PJP PJP PJP
$VSHUWKH(QYLURQPHQW
3URWHFWLRQ$FW
1RWLILFDWLRQ>*65(
$XJ@
1,2+VXJJHVWLRQIRU
DSSOLFDWLRQLQ&)733V
7DEOH(PLVVLRQVWDQGDUGVRISDUWLFXODWHPDWWHURIWKHUPDOSRZHUSODQWV
6WDQGDUGV
3RZHU*HQHUDWLRQ
&DSDFLW\
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
$V TXRWHG LQ 7HFKQLFDO (,$ *XLGDQFH 0DQXDO IRU 7KHUPDO 3RZHU 3ODQWV SUHSDUHG IRU 0R() *RYW RI ,QGLD E\
,/)6(FRVPDUW/LPLWHG+\GHUDEDG6HSWHPEHUSS
6WDWH3ROOXWLRQ&RQWURO%RDUGVDQGLPSOHPHQWLQJDJHQFLHVPD\SUHVFULEHDOLPLWRIPJ1PGHSHQGLQJRQ
ORFDOVLWXDWLRQ
ϯϬ
ϯϭ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH$&*,+WKUHVKROGOLPLWYDOXHVIRUKRWHQYLURQPHQWV:HW
%XOE*OREH7HPSHUDWXUHLQGH[:%*7
0RGHUDWH
+HDY\
:RUN5HVW5HJLPH
/LJKW
R
R
&
&
&
&RQWLQXRXV:RUN
ZRUN5HVWHDFKKRXU
:RUN5HVWHDFKKRXU
:RUN5HVWHDFKKRXU
$&*,+:%*7&RUUHFWLRQ)DFWRUV,Q&
&ORWKLQJ
&OR
:%*7
W\SH
YDOXH
FRUUHFWLRQ 6XPPHUOLJKWZHLJKWZRUNLQJ
FORWKLQJ
&RWWRQFRYHUDOOV
:LQWHUZRUNFORWKLQJ
:DWHUEDUULHUSHUPHDEOH
&OR,QVXODWLRQYDOXHRIFORWKLQJ2QHFOR NFDOPKURIKHDW
H[FKDQJHE\UDGLDWLRQDQGFRQYHFWLRQIRUHDFK&GLIIHUHQFHLQ
WHPSHUDWXUHEHWZHHQWKHVNLQDQGWKHDGMXVWHGGU\EXOEWHPSHUDWXUH
&RPSDUDEOH,62,62UHFRPPHQGHG:%*7UHIHUHQFHYDOXHV
DUHJLYHQLQ7DEOH7KH$&*,+DQG,62JXLGHOLQHVDVSURSRVHGGRQRW
PDWFK WR WKH DPELHQW FRQGLWLRQV RI WKH WURSLFDO HQYLURQPHQW %DVHG RQ
FRQWUROOHG FOLPDWLF FKDPEHU H[SHULPHQWDWLRQ WKH 1,2+ 1DJ VXJJHVWHG WR WKH 0R() *RYW RI ,QGLD WKH SHUPLVVLEOH H[SRVXUH OLPLW
YDOXHVIRUKRWHQYLURQPHQWDVWDEXODWHGDORQJ
ϯϮ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH,62DQG1,2+VXJJHVWHGSHUPLVVLEOHH[SRVXUHOLPLW
YDOXHVIRUKRWHQYLURQPHQWDWZRUNSODFHV:%*7
:RUN6HYHULW\
8QDFFOLPDWL]HG
$FFOLPDWL]HG
PHQ
PHQ
,62
5HVWLQJ0
0
0
0
0!
1,2+VXJJHVWHGOHYHOV
6HGHQWDU\
/LJKWZRUN
0RGHUDWHLQWHQVLW\RIZRUN
+HDY\LQWHQVLW\RIZRUN
([WUHPHO\+HDY\LQWHQVLW\RI
ZRUN
0²0HWDEROLFUDWH:P
9DOXHVLQSDUHQWKHVLVUHIHUWRVHQVLEOHDLUPRYHPHQWDQGYDOXHV
ZLWKRXWSDUHQWKHVLVUHIHUWRQRQVHQVLEOHDLUPRYHPHQW
5HVLGHQWLDO
DUHD
6LOHQFH
=RQH
,QGXVWULDO
DUHD
&RPPHUFLDO
DUHD
17
'7
,QGLD
'7 17
:RUOG
%DQN
'7 17 '7
:+2
17
'7
17
86(3$
$XVWUDOLD
6WDQGDUGV
'7 17
-DSDQ
7DEOH6WDQGDUGVIRU$PELHQW1RLVH/HTG%$
'7
17
86$
$VSHU
1$$46
0R()
JXLGHOLQHV
1,2+
VXJJHVWLRQ
IRU
DSSOLFDWLRQ
LQ&)733V
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
&DWHJRU\RI
$UHD=RQH
ϯϯ
ʹǣ
Ǥͺ
ϯϰ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
1RWH
'D\WLPH'7VKDOOPHDQIURPDPWRSP
1LJKWWLPH17VKDOOPHDQIURPSPWRDP
6LOHQFH]RQHLVDQDUHDFRPSULVLQJQRWOHVVWKDQPHWUHVDURXQG
KRVSLWDOV HGXFDWLRQDO LQVWLWXWLRQV FRXUWV UHOLJLRXV SODFHV RU DQ\
RWKHUDUHDZKLFKLVGHFODUHGDVVXFKE\WKHFRPSHWHQWDXWKRULW\
0L[HG FDWHJRULHV RI DUHDV PD\ EH GHFODUHG DV RQH RI WKH IRXU
DERYHPHQWLRQHGFDWHJRULHVE\WKHFRPSHWHQWDXWKRULW\
/HT G%$ GHQRWHV 7:$ WLPH ZHLJKWHG DYHUDJH RI WKH VRXQG
SUHVVXUH OHYHO LQ GHFLEHO RQ VFDOH $ UHODWLQJ WR KXPDQ KHDULQJ
7DEOH
1$$460R()JXLGHOLQHV6HSW1HZ'HOKL
:RUOG %DQN *URXS 3ROOXWLRQ SUHYHQWLRQ DQG DEDWHPHQW
+DQGERRN
$XVWUDOLD -DSDQ 86$ ² $V TXRWHG LQ GRFVWRF 'RFXPHQWV RI UHVRXUFHV
IRUVPDOOEXVLQHVVRISURIHVVLRQDOV6DQWD0RQLFD&$3S
,QVLGH )DFWRU\ 7KUHVKROG /LPLW 9DOXH 7/9 LV VXJJHVWHG DV G%
$ IRU KRXUV H[SRVXUH DV SHU WKH )DFWRULHV $FW $ VHSDUDWH
VFKHGXOH LQFRUSRUDWHV SURYLVLRQ IRU QRLVH SUHYHQWLRQ DQG SURWHFWLRQ
XQGHU 0RGHO )DFWRULHV 5XOHV 0)5 6FKHGXOH ;;,9 IUDPHG XQGHU
'DQJHURXVRSHUDWLRQV6HFWLRQIRURSHUDWLRQVZKHUHKLJKQRLVHH[LVWV
7KHYLEUDWLRQLVDFDXVHRIKHDOWKFRQFHUQLQ&)733VKRZHYHUWKH
SHUPLVVLEOH OLPLW YDOXH IRU YLEUDWLRQ KDV QRW \HW EHHQ SUHVFULEHG 7KH
SHUPLVVLEOHOHYHO7DEOHDVSUHVFULEHGE\$&*,+PD\EHFRQVLGHUHG
WLOOWKHOLPLWYDOXHVDUHHVWDEOLVKHGDQGSUHVFULEHGLQWKH,QGLDQFRQWHVW
ʹǣ
Ǥͺ
ϯϱ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH$&*,+7KUHVKROG/LPLW9DOXHV7/9IRUH[SRVXUHRI
KDQGDUPYLEUDWLRQLQ[\]GLUHFWLRQ
7RWDO GDLO\ H[SRVXUH GXUDWLRQ 0D[LPXP YDOXH RI IUHTXHQF\
KRXUV
ZHLJKWHG DFFHOHUDWLRQ PV
LQDQ\GLUHFWLRQ
WROHVVWKDQKRXUV
WROHVVWKDQKRXUV
WROHVVWKDQKRXUV
OHVVWKDQKRXU
'LUHFWLRQVRID[HVLQWKHWKUHHGLPHQVLRQDOV\VWHP
6WDQGDUG0HWKRGE\,6,62
9LEUDWLRQGRVHYDOXH >W
ZKHUHD
W DW GW@
DFFHOHUDWLRQPV
+DQGDUPYLEUDWLRQ
•
PVìIRUKGDLO\H[SRVXUHOLPLWDQG
•
PVìIRUKGDLO\H[SRVXUHDFWLRQYDOXH
:KROHERG\YLEUDWLRQ
•
IRUKGDLO\H[SRVXUHOLPLWDQG
•
PVìIRUKGDLO\H[SRVXUHDFWLRQYDOXH
(XURSHDQ'LUHFWLYH&(
,Q WKH FRQWH[W RI RSHUDWLRQV RI WKH &)733V WKH UHIHUHQFHV KDYH
DOVR EHHQ PDGH RI SRVVLEOH KD]DUGV GXH WR LRQL]LQJ DQG QRQLRQL]LQJ
UDGLDWLRQ )RU LQVWDQFH WKH ZRUNHUV LQ FORVH SUR[LPLW\ WR HOHFWULF SRZHU
JHQHUDWRUV HTXLSPHQW DQG FRQQHFWLQJ KLJKYROWDJH WUDQVPLVVLRQ OLQHV
PD\EHH[SRVHGWRHOHFWULFDQGPDJQHWLFILHOGV(0),PSOHPHQWDWLRQRI
ϯϲ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
DFWLRQ SODQV LV YHU\ PXFK ZDUUDQWHG ZKHUH (0) H[SRVXUH H[FHHGV
UHIHUHQFH RFFXSDWLRQDO H[SRVXUH OHYHOV SURSRVHG E\ LQWHUQDWLRQDO
RUJDQL]DWLRQV VXFK DV WKH ,QWHUQDWLRQDO &RPPLVVLRQ RQ 1RQ,RQL]LQJ
5DGLDWLRQ 3URWHFWLRQ ,&1,53 DQG WKH ,QVWLWXWH RI (OHFWULFDO DQG
(OHFWURQLFV (QJLQHHUV ,((( 3HUVRQDO H[SRVXUH PRQLWRULQJ HTXLSPHQW
VKRXOG EH VHW WR ZDUQ DW DERXW OHYHO RI RFFXSDWLRQDO H[SRVXUH
UHIHUHQFHOHYHO
,Q FDVH RI LRQL]LQJ UDGLDWLRQV LH KDYLQJ VXIILFLHQW HQHUJ\ WR
LRQL]H DQ DWRP LW LV JHQHUDOO\ XQGHUVWRRG WKDW DOO VRLOV URFNV DQG FRDOV
FRQWDLQ QDWXUDOO\ RFFXUULQJ UDGLRDFWLYH HOHPHQWV VXFK DV XUDQLXP
WKRULXPDQGSRWDVVLXP8UDQLXPKDVWKUHHLVRWRSHV88DQG8
DOO DUH UDGLRDFWLYH7KRULXP LV DOVR UDGLRDFWLYH DQG RQH RI WKH
SRWDVVLXP LVRWRSHV
. LV UDGLRDFWLYH7KH YDOXH RI XUDQLXP DQG
UDGLXP FRQWHQW LQ W\SLFDO QRUPDO VRLOURFN LV DURXQG %TNJ 7KH
QDWXUDOO\ RFFXUULQJ LVRWRSHV RI XUDQLXP DQG WKRULXP GHFD\ LQWR UDGLXP
DQGGHFD\VIXUWKHULQWRUDGRQZKLFKLVDOVRUDGLRDFWLYH7KHLQWHUPHGLDWH
GHFD\ SURGXFWV RI XUDQLXP DQG WKRULXP DUH VROLGV KRZHYHU UDGRQ LV D
JDVDQGLWPRYHVLQWRVRLOURFNFRDOPDWUL[5DGRQLVHPLWWHGIURPDOOVRLOV
DQG URFNV DOO WKH WLPH DQG LWV UDWH RI HPLVVLRQ GHSHQGV RQ WKH UDGLXP
FRQWHQWRIVRLOVDQGURFNV
7KHFRDOEHLQJWKHVRXUFHRISRZHUJHQHUDWLRQDQGWKHJHQHUDWHG
IO\DVKEHLQJUHXVHGIRUODQGILOODQGRWKHUGRPHVWLFDSSOLFDWLRQLQFOXGLQJ
FRQVWUXFWLRQDFWLYLW\DQDQDO\VLVRIWKHUDGLRDFWLYHLVVXHVDVVRFLDWHGZLWK
FRDO DQG IO\ DVK PD\ EH ZRUWK\ WR FOHDU GRXEWV 'DWD RI XUDQLXP DQG
UDGLXPFRQWHQWLQFRDODQGIO\DVKLQ&)733VDUHJLYHQLQ7DEOH,QRQH
RIWKH,QGLDQ&)733VWKHXUDQLXPFRQWHQWVLQFRDODQGIO\DVKZHUHLQWKH
UDQJH RI WR %TNJ DQG WR %TNJ UHVSHFWLYHO\ 0DQGDO DQG
6HQJXSWD ,W ZDV JLYHQ WR XQGHUVWDQG WKDW WKH FRQFHQWUDWLRQ RI
XUDQLXPUDGLXP LQ IO\ DVK ZDV WR WLPHV KLJKHU DV FRPSDUHG WR FRDO
EHFDXVHRIUHGXFWLRQLQPDVVGXHWREXUQLQJ,QDQRWKHUSRZHUSODQWWKH
ϯϳ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
UDGLXP YDOXHV LQ FRDO DQG IO\DVK UDQJHG IURP WR %TNJ DQG WR
%TNJ UHVSHFWLYHO\ 0LVKUD /DOLW HW DO UHFRUGHG WKH
UDGLXPOHYHOVLQFRDODQGIO\DVKLQWKHUDQJHRIWR%TNJDQGWR
%TNJUHVSHFWLYHO\,QVRPH&)733VIURPRWKHUFRXQWULHVWKHUDGLXP
DQG XUDQLXP FRQWHQWV RI FRDOV ZHUH HYHQ KLJKHU $V QRWHG E\
3DSDVWHIDQRX LQ D &)733 RI *UHHFH WKH UDGLXP DQG XUDQLXP
FRQWHQWVRIERWKFRDODQGIO\DVKDSSHDUHGWREHYHU\KLJK
7KHFRQFHQWUDWLRQRIUDGRQJDVDURXQGWKHSODQWVLVH[SHFWHGWREH
KLJKHUWKDQWKDWLQQRUPDODWPRVSKHUHGXHWRKLJKHUUDWHRIHPDQDWLRQRI
UDGRQIURPWKHIO\DVKSRQGV'DWDRIUDGRQOHYHOVLQDWPRVSKHUHDURXQG
WKH&)733VDUHJLYHQLQ7DEOHLQGLFDWLQJWKDWWKHOHYHOVYDULHGZLGHO\
LQGLIIHUHQWSODQWV
²
/RG]3RODQG
*UHHFH
3KLOLSSLQHV
%DRML&KLQD
%HLMLQJ&KLQD
6KDQJKDL&KLQD
+RQJ.RQJ
,QGLD
,QGLD
:HVW%HQJDO,QGLD
8
.HQWXFN\86$
5D
²
8
²
5D
0DQGDODQG6HQJXSWD
0LVKUD
/DOLWHWDO
7VRDQG/HXQJ
<X
*XHWDO
/XHWDO
3DUDPLHWDO
3DSDVWHIDQRX
%HPHWDO
%D[WHU
=LHOLQVNLDQG%XGDKQ
7DEOH1DWXUDO5DGLRDFWLYLW\%TNJLQ&RDODQG)O\DVKIURP&)733V
&RDO
)O\DVK
5HIHUHQFH
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
/RFDWLRQ
ϯϴ
ʹǣ
Ǥͺ
ϯϵ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH5DGRQDFWLYLW\DURXQG&)733VLQ,QGLD
/RFDWLRQ
5DGRQDFWLYLW\ 5HIHUHQFH
%TP
.DVLPSXU83
.XPDUHWDO
'XUJDSXU:%
+DU\DQD
.DQWDQG&KDNUDYDUWL
%KDWLQGD3XQMDE
6LQJKDQG6LQJK
7KH SHUPLVVLEOH DQQXDO DYHUDJH YDOXH RI UDGRQ FRQFHQWUDWLRQ
LQVLGH WKH KRXVHV LV %TP EHORZ ZKLFK QR DFWLRQ LV UHTXLUHG WR EH
WDNHQ,Q WKH KRXVHV ZKHUHDQQXDODYHUDJHUDGRQFRQFHQWUDWLRQLVLQ WKH
UDQJH RI WR %TP DFWLRQ VKRXOG EH WDNHQ WR UHGXFH WKH UDGRQ
OHYHOVLQWKHDWPRVSKHUH,QFDVHWKHDQQXDODYHUDJHUDGRQFRQFHQWUDWLRQ
LQ WKH KRXVHV H[FHHG %TP WKH VLWXDWLRQ LV XQDFFHSWDEOH DQG
UHPHGLDODFWLRQIRUPLWLJDWLRQPXVWEHWDNHQ7KHOHYHORI%TPLVLQ
WKH SURFHVV RI UHYLVLRQ WR %TP ,&53 7DNLQJ LQWR DFFRXQW RI
WKH RFFXSDQF\ SHULRG DW ZRUNSODFHV WKH SHUPLVVLEOH DQQXDO DYHUDJH
YDOXH RI UDGRQ FRQFHQWUDWLRQ LV %TP EHORZ ZKLFK QR DFWLRQ LV
UHTXLUHG WR EH WDNHQ ,Q ZRUNSODFHV ZKHUH WKH DQQXDO DYHUDJH UDGRQ
FRQFHQWUDWLRQLVLQWKHUDQJHRIWR%TPDFWLRQVKRXOGEHWDNHQ
WR UHGXFH WKH UDGRQ OHYHOV LQ WKH DWPRVSKHUH $Q DQQXDO DYHUDJH UDGRQ
FRQFHQWUDWLRQ RI %TP DV DFWLRQ OHYHO LV DFFHSWDEOH DV SHU %66
DQG ,&53 :KHUH WKH UDGRQ FRQFHQWUDWLRQ LV DERYH %TP WKH VLWXDWLRQ LV XQDFFHSWDEOH DQG UHPHGLDO DFWLRQ IRU PLWLJDWLRQ
PXVWEHWDNHQ
,WZDVQRWHGWKDWWKDWWKHUDGLRDFWLYLW\RIPDWHULDORIWKHFRDODQGIO\
DVK XVHG LQ GLIIHUHQW &)733V ZDV ZLWKLQ SHUPLVVLEOH OLPLW DQG DV VXFK LV
QRWDFDXVHRIFRQFHUQDVRQWRGD\7KHUHSRUWHGOHYHOVRIUDGRQDFWLYLW\
ʹǣ
Ǥͺ
ϰϬ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
DURXQG WKH &)733V LQ ,QGLD ZHUH DOVR EHORZ WKH SHUPLVVLEOH DQQXDO
DYHUDJHYDOXHRI%TPLQZRUNSODFHV6LQFHDODUJHDPRXQWRIFRDO
LVLPSRUWHGE\WKH,QGLDQSRZHUSODQWVIURPRWKHUFRXQWULHVDQGLQVRPH
&)733VRIRWKHUFRXQWULHVWKHUDGLXPDQGXUDQLXPFRQWHQWVRIFRDOVZHUH
HYHQ KLJKHU LW LV QHFHVVDU\ WR WDNH FDXWLRQ E\ WKH ,QGLDQ &)733V DQG
DUUDQJHIRUUHJXODUDVVHVVPHQWDQGPDLQWDLQUHFRUGVRIWKHUDGLRDFWLYLW\
OHYHOVRIFRDOEHLQJXVHGDQGWKHIO\DVKJHQHUDWHGE\WKHSODQWV
,Q VXPPDU\ ZLWK UHIHUHQFH WR WKH &RXUW 'LUHFWLRQ 1R WKH
GHWDLOHG GHVFULSWLRQ RI WKH H[LVWLQJ QRUPV DQG VWDQGDUGV SUHVHQWHG
DERYH LQFOXGLQJ VXJJHVWLRQV RI 1,2+ IRU DPELHQW DQG LQGXVWU\
HQYLURQPHQWPD\EHFRQVLGHUHGWRDSSO\IRUWKH&)733V,QFHUWDLQDUHDV
VXFK DV KHDW H[SRVXUH ZKROH ERG\ DQG KDQGDUP YLEUDWLRQ HWF WKH
VWDQGDUGVRILQWHUQDWLRQDOO\UHFRJQL]HGERGLHVVXFKDV$&*,+,62PD\
EH IROORZHG WLOO WKH QDWLRQDO JXLGHOLQHV LQ WKH UHVSHFWLYH DUHDV DUH
IUDPHG
ϰϭ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&2857',5(&7,2112
6DIHPHWKRGVEHIROORZHGIRUWKHKDQGOLQJFROOHFWLRQDQGGLVSRVDORI
KD]DUGRXVZDVWHWREHUHFRPPHQGHGE\1,2+
7KH FRDO ILUHG WKHUPDO SRZHU SODQWV &)733V SULPDULO\ XVH FRDO DV IXHO
DQGDODUJHDPRXQWRIIO\DVKJHWVJHQHUDWHGGXULQJWKHSURFHVVRISRZHU
JHQHUDWLRQ7KHGXVWVDUHFDSWXUHGE\WKHHOHFWURVWDWLFSUHFLSLWDWRUVDVIO\
DVKERWWRPDVKEDJILOWHUVDQGPDGHVOXUU\LQPL[LQJZLWKZDWHURUGU\
DVK EHLQJ FDUULHG DZD\ 7KH VOXUU\ LV SXPSHG RXW WR WKH DVK SRQG DQG
VXEVHTXHQWO\WUDQVSRUWHGIRURWKHU XVHV%HVLGHVWKHVROLGZDVWHVRIWKH
&)733VLQFOXGHVOXGJHVIURPZDWHUWUHDWPHQWSODQWHIIOXHQWDQGVHZDJH
WUHDWPHQW SODQWV FRPEXVWLRQ UHVLGXHV DQG RWKHU GHEULV IXJLWLYH GXVW
HPLVVLRQV DQG VSLOODJH DULVLQJ RXW RI YHKLFXODU PRYHPHQW GXULQJ
WUDQVSRUWDWLRQRIFRDODQGRLOHWF7KHOLTXLGHIIOXHQWVFRPHIURPPXOWLSOH
ORFDWLRQV VXFK DV ZDWHU WUHDWPHQW SODQW SURFHVV HIIOXHQWV GRPHVWLF
ZDVWHVDFFLGHQWDOUHOHDVHDQGVSLOOVRIRLOVDQGFKHPLFDOVHIIOXHQWVIURP
FRDO KDQGOLQJ SODQW UXQRII IURP FRDO \DUG DQG RLO VWRUDJH GXVW
H[WUDFWLRQVXSSUHVVLRQ OHDFKDWH IURP DVK GLVSRVDO DQG HIIOXHQWV IURP
WUDQVIRUPHUV RYHUKDXO DQG PDLQWHQDQFH HWF $OO WKH DERYH PHQWLRQHG
SURFHVVHVFDUU\WKHULVNRIHQYLURQPHQWDOSROOXWLRQDQGKHDOWKKD]DUGVWR
WKHZRUNHUVDQGFRPPXQLW\
,Q,QGLDKDQGOLQJFROOHFWLRQDQGGLVSRVDORIKD]DUGRXVZDVWHVDUH
UHJXODWHG E\ WKH 0R() +D]DUGRXV :DVWHV 0DQDJHPHQW +DQGOLQJ DQG
7UDQVERXQGDU\ 0RYHPHQW 5XOHV 6FKHGXOH , RI WKH VDLG UXOHV
LGHQWLILHV OLVWRISURFHVVHVJHQHUDWLQJKD]DUGRXVZDVWHVDQGWKH W\SHVRI
ZDVWHV &KDSWHU,, RI WKH 0R() DERYH VWDWHG KD]DUGRXV ZDVWHV
ϰϮ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
PDQDJHPHQW UXOHV VSHFLILHV WKH SURFHGXUH IRU KDQGOLQJ DQG
VWRUDJH RI KD]DUGRXV ZDVWHV DQG GHILQHV WKH UHVSRQVLELOLWLHV RI WKH
RFFXSLHU IRU KDQGOLQJ RI KD]DUGRXV ZDVWH &KDSWHU9 RI WKH 5XOHV
GHVFULEHVWUHDWPHQWVWRUDJHDQGGLVSRVDOIDFLOLW\IRUKD]DUGRXVZDVWHV
$VSHUWKHFODXVHRIWKHVDLGUXOHVHYHU\SHUVRQZKRLVHQJDJHG
LQJHQHUDWLRQVWRUDJHRIIHULQJIRUVDOHWUDQVIHURIKD]DUGRXVZDVWHVKDOO
UHTXLUHREWDLQLQJDQDXWKRUL]DWLRQIURPWKH6WDWH3ROOXWLRQ&RQWURO%RDUG
63&% )XUWKHU WKH KD]DUGRXV ZDVWHV VKDOO EH FROOHFWHG WUHDWHG
UHF\FOHG UHSURFHVVHG VWRUHG RU GLVSRVHG RII RQO\ LQ VXFK IDFLOLWLHV DV
PD\ EH DXWKRUL]HG E\ WKH 63&% IRU WKDW SDUWLFXODU SXUSRVH 7KH &)733V
VKRXOG REWDLQ GXH DXWKRUL]DWLRQ IRU WKH KD]DUGRXV ZDVWHV JHQHUDWHG DQG
GLVSRVHGRIIWKURXJKWKHDXWKRUL]HGDJHQFLHV
7KH VDIH PHWKRGV IRU KDQGOLQJ FROOHFWLRQ DQG GLVSRVDO RI ZDVWHV
PD\EHFRQVLGHUHGZLWKUHIHUHQFHWRJDVHRXVOLTXLGDQGVROLGZDVWHV,W
EHJLQV ZLWK WKH UHFHLYLQJ RI UDZ PDWHULDOV RI WKH &)733 WUDQVSRUWDWLRQ
LQVLGH DQG RXWVLGH RI WKH SODQW GXULQJ SODQW RSHUDWLRQV UHF\FOLQJ RI
OLTXLGDQGVROLGZDVWHVLQFOXGLQJGLVSHUVLRQRIIOXHJDVHVWUDQVSRUWDWLRQ
RI IO\ DVK DQG GLVFKDUJH RI HIIOXHQWV DIWHU WUHDWPHQW 7KH H[LVWLQJ DQG
VXJJHVWHGJXLGHOLQHVIRUFRQWURORIGLIIHUHQWNLQGVRIZDVWHVDUH
*DVHRXV+D]DUGRXV:DVWH
7KH JDVHRXV KD]DUGRXV ZDVWHV DUH XVXDOO\ FRPLQJ IURP WKH IOXH JDVHV
GLVFKDUJHG WKURXJK WKH VWDFN 7KH 1,2+ VXJJHVWV WKDW WKH VWDWXWRU\
JXLGHOLQHVDVVXJJHVWHGE\0R()&3&%*RYWRI,QGLDZLOOEHDSSOLFDEOH
IRUWKHHPLVVLRQVLQWKHDWPRVSKHUH7UHDWHGIOXHJDVHPLVVLRQVGLVFKDUJH
WKURXJK VWDFN WR DWPRVSKHUH VKDOO DOZD\V EH OHVV WKDQ RU HTXDO WR WKH
SDUDPHWHUVSHFLILFHPLVVLRQVWDQGDUGVDVJLYHQLQ7DEOHDQG
ʹǣ
Ǥͺ
ϰϯ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH6WDQGDUGVIRU&RPPRQ+D]DUGRXV:DVWH,QFLQHUDWLRQ
(PLVVLRQVWDQGDUGPJ1P
3DUDPHWHUV
+$=:$060R()&3&%
3DUWLFXODWH
KDOIKRXUO\DYHUDJHYDOXH
+&O
KDOIKRXUO\DYHUDJHYDOXH
62
KDOIKRXUO\DYHUDJHYDOXH
&2
KDOIKRXUO\DYHUDJHYDOXH
GDLO\KRXUO\DYHUDJHYDOXH
72&
KDOIKRXUO\DYHUDJHYDOXH
+)
KDOIKRXUO\DYHUDJHYDOXH
KDOIKRXUO\DYHUDJHYDOXH
12[
7RWDOGLR[LQDQG
IXUDQV
QJ
7(41P
KRXUVVDPSOLQJ5HIHUWR
JXLGHOLQHVIRUFRQFHUQHG
FRQJHQHUVWRDUULYHDWWRWDOWR[LF
HTXLYDOHQFH
&G7KDQGWKHLU
FRPSRXQGV
PJ1P
VDPSOLQJWLPHEHWZHHQDQG
KUV
+JDQGLWV
FRPSRXQGV
VDPSOLQJWLPHEHWZHHQDQG
KUV
6E$V3E
&U&R&X
0Q1L9DQG
WKHLUFRPSRXQGV
VDPSOLQJWLPHEHWZHHQDQG
KUV
ʹǣ
Ǥͺ
ϰϰ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH6WDQGDUGRI6WDFN+HLJKW/LPLWVIRU7KHUPDO3RZHU
3ODQWVDV1RWLILHGE\WKH0R()
*HQHUDWLRQ
6WDFN+HLJKW0HWUHV
1,2+
&DSDFLW\
VXJJHVWLRQ
0:DQGDERYH
0:0:
DQGDERYHWROHVV
WKDQ0:
/HVVWKDQ
0:0:
$VSHUWKH
0R()(3$
1RWLILFDWLRQ
>*65
+ TZKHUHTLVHPLVVLRQ (
$XJXVW@
UDWHRI62LQNJKUDQG+LV
6WDFNKHLJKWLQPHWUHV
/LTXLG+D]DUGRXV:DVWH
7KH OLTXLG KD]DUGRXV ZDVWH XVXDOO\ SURGXFHGIRXQG RXWDULVLQJ RXW RI
GLIIHUHQW RSHUDWLRQV LQYROYLQJ YDULRXV XQLWVORFDWLRQV HJ ZDWHU
WUHDWPHQW SODQW ERLOHU EORZ GRZQ FRQGHQVHU FRROLQJ ZDWHU OHDFKDWH
UXQRIIIURPFRDOVWRUDJHVLWHVRLOVHWF7KHVWDQGDUGVIRUOLTXLGHIIOXHQWV
KDYH EHHQ QRWLILHG E\ WKH 0R() IRU &)733V DV JLYHQ LQ 7DEOH 7KH
:RUOG %DQN VXJJHVWHG OHYHOV DUH JLYHQ DORQJVLGH IRU FRPSDULVRQ 7KH
1,2+ VXJJHVWV WKDW (3$ (QYLURQPHQW 3URWHFWLRQ $FW QRWLILFDWLRQ >62
(1RY@WREHIROORZHGE\&)733V
ϰϱ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
7DEOH6WDQGDUGVIRU/LTXLG(IIOXHQWVZLWK5HIHUHQFHWR&)733V
&RQFHQWUDWLRQQRWWRH[FHHGPJOH[FHSWIRUS+WHPS
:RUOG
6RXUFHV
3DUDPHWHUV
,QGLD
%DQN
&RQGHQVHU
&RROLQJ:DWHU
RQFHWKURXJK
KLJKHUFRROLQJ
V\VWHP
S+
²
7HPSHUDWXUH
&
7HPSHUDWXUHRI
UHFHLYLQJZDWHUR&
QHZ&)733V5LVHLQ
WHPSHUDWXUHRI
FRQGHQVHUFRROLQJ
ZDWHUIURPLQOHWWR
RXWOHWR&ROG
&)733V
%RLOHU%ORZ
GRZQ
)UHHDYDLODEOH
&KORULQH
6XVSHQGHGVROLGV
2LO*UHDVH
&RSSHU7RWDO
,URQ7RWDO
)UHHDYDLODEOH
&KORULQH
=LQF
&KURPLXP7RWDO
3KRVSKDWH
&RROLQJ7RZHU
%ORZGRZQ
2WKHUFRUURVLRQ
/LPLWLVHVWDEOLVKHG
LQKLELWLQJPDWHULDO RQFDVHE\FDVHEDVLV
E\&3&%LQFDVHRI
WKH8QLRQ7HUULWRULHV
DQG63&%VLQFDVHRI
WKH6WDWHV
ʹǣ
Ǥͺ
ϰϲ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
$VKSRQG
HIIOXHQW
S+
WR
6XVSHQGHGVROLGV
2LO*UHDVH
$VSHU(QYLURQPHQW3URWHFWLRQ$FW3DUW$(IIOXHQWVQRWLILHG
YLGH*65(WK0D\
,QGLD0R()(3$1RWLILFDWLRQ>62(1RY@
$VUHJDUGWROLTXLGZDVWHVRWKHUUHODWHG0R()QRWLILFDWLRQVDUHD
UHPRYDO RI VXVSHQGHG VROLGV RLO DQG JUHDVH IURP HIIOXHQW WUHDWPHQW
SODQWVHZDJHWUHDWPHQWSODQWWRFRQIRUPZLWKVWDQGDUGVIRUGLVFKDUJHRI
HIIOXHQWV LQWR LQODQG VXUIDFH ZDWHUV UHIHU WR QRWLILFDWLRQ GDWHG
EUHPRYDODQGUHF\FOHRIVXVSHQGHGVROLGVRIHIIOXHQWVLQWR
DVKZDWHUV\VWHPUHIHUWRQRWLILFDWLRQGDWHGDQGFUHF\FOH
RI KRW ZDWHU IURP FRQGHQVHU DQG DX[LOLDU\ FRROLQJ V\VWHPV E\ ,QGXFHG
GUDIWFRROLQJWRZHUVUHIHUWRQRWLILFDWLRQGDWHG
6ROLGZDVWHVLQFOXGLQJIO\DVK
7KH VROLG ZDVWH LQ WKH &)733V DUH XVXDOO\ IURP IO\ DVKERWWRP DVK
VOXGJHV IURP ZDWHU DQG VHZDJH WUHDWPHQW SODQWV FRPEXVWLRQ UHVLGXHV
IXJLWLYH GXVW HPLVVLRQV FRDO WUDQVSRUWDWLRQ HWF 6RPH RI WKH
FKDUDFWHULVWLFVRIKD]DUGRXVVROLGZDVWHDUHLJQLWDEOHIODVKSRLQWR&
FRUURVLYH DTXHRXV S+ RU ! UHDFWLYH XQVWDEOH ZDWHU UHDFWLYH
DQG WR[LF 7KH JXLGHOLQHV RQ WKH FROOHFWLRQ VXSSO\ DQG XWLOL]DWLRQ RI IO\
DVK LV DV SHU 0R() 1RWLILFDWLRQ GDWHG $OVR VDIH GLVSRVDO LV
UHTXLUHGIRUXQXVHGIO\DVKDQGUHXVHRIPLOOUHMHFWV
7KH FRQFHQWUDWLRQ OLPLWV RI WR[LFLW\ FKDUDFWHULVWLFV RI OHDFKDWH
7DEOHDVIROORZHGE\86(3$YLGH1R6:PD\EHFRQVLGHUHG
ϰϳ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
IRU WKH ,QGLDQ &)733V DOVR WLOO ,QGLDQ VWDQGDUGV DUH QRWLILHG E\
0R()&3&%
7DEOH0D[LPXPFRQFHQWUDWLRQRIWR[LFLW\FKDUDFWHULVWLFVRIOHDFKDWH
&RQWDPLQDQW
5HJXODWRU\
OHYHOPJO
&RQWDPLQDQW
5HJXODWRU\
OHYHOPJO
$UVHQLF$V
+HSWDFKORU
%DULXP%D
+H[DFKORUREHQ]HQH
%HQ]HQH
+H[DFKORUREXWDGLHQH
&DGPLXP&G
+H[DFKORURHWKDQH
&DUERQWHWUDFKORULGH
/HDG3E
&KORUGDQH
/LQGDQH
&KORUREHQ]HQH
0HUFXU\+J
&KORURIRUP
0HWKR[\FKORU
&KURPLXP&U
0HWK\OHWK\ONHWRQH
R&UHVRO
1LWUREHQ]HQH
P&UHVRO
3HQWDFKORURSKHQRO
S&UHVRO
3\ULGLQH
&UHVRO
6HOHQLXP6H
'
6LOYHU$J
'LFKORUREHQ]HQH
7HWUDFKORURHWK\OHQH
'LFKORURHWKDQH
7R[DSKHQH
'LFKORURHWK\OHQH
7ULFKORURHWK\OHQH
'LQLWURWROXHQH
7ULFKORURSKHQRO (QGULQ
7ULFKORURSKHQRO +HSWDFKORU
736LOYH[
+H[DFKORUREHQ]HQH
9LQ\O&KORULGH
ʹǣ
Ǥͺ
ϰϴ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
8WLOL]DWLRQRIIO\DVK
7KH JHQHUDWHG IO\ DVK QHHG WR EH XWOL]HG DV SHU WKH &3&% DQQXDO
LPSOHPHQWDWLRQUHSRUWRQIO\DVKXWLOL]DWLRQWKDWXWLOL]DWLRQ
QHHGVWREHDFKLHYHGE\WKHSRZHUSODQWVZLWKLQ\HDUVIURPWKHGDWHRI
QRWLILFDWLRQ LH UG 1RYHPEHU 0R() DV JLYHQ LQ 7DEOH )RU
QHZFRDODQGRUOLJQLWHEDVHGWKHUPDOSRZHUVWDWLRQVDQGRUH[SDQVLRQ
XQLWV FRPPLVVLRQHG DIWHU WKH GDWH RI 0R() QRWLILFDWLRQ UG 1RYHPEHU
WKH IO\ DVK XWLOL]DWLRQ QHHGV WR EH UHJXODWHG DV SHU WKH VFKHGXOH
JLYHQLQWKHWDEOH
7KH1,2+YLHZV WKDW WKHJXLGHOLQHVJLYHQ EHORZLQ 7DEOHWR DVUHJDUGWRIO\DVKXWLOL]DWLRQPD\EHIROORZHGE\WKH&)733V
7DEOH6FKHGXOHRIIO\DVKXWLOLVDWLRQIRUROGDQGQHZ&)733V
8WLOL]DWLRQRIIO\DVK 7DUJHWGDWHIURP
QRWLILFDWLRQUG
1RYHPEHU
7DUJHWGDWHIURPWKH
GDWHRIFRPPLVVLRQLQJ
RIQHZ733V
$WOHDVWRIIO\DVK
JHQHUDWLRQ
2QH\HDU
2QH\HDU
$WOHDVWRIIO\DVK
JHQHUDWLRQ
7ZR\HDU
$WOHDVWRIIO\DVK
JHQHUDWLRQ
7KUHH\HDU
7ZR\HDU
$WOHDVWRIIO\DVK
JHQHUDWLRQ
)RXU\HDU
7KUHH\HDU
IO\DVK
JHQHUDWLRQ
)LYH\HDU
)RXU\HDU
7KH UHODWLYH SHUFHQWDJH RI DVK XWLOL]DWLRQ IRU GLIIHUHQW EXLOGLQJ
PDWHULDOVDQGSURGXFWVDUHLQGLFDWHG7DEOHDVSHUWKHQRWLILFDWLRQRI
ϰϵ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
UG 1RYHPEHU 0R() ,Q WKLV FRQWH[W LW LV DOVR QRWHG WKDW WKH FRDO
DQGIO\DVKFRQWDLQUDGLRDFWLYHPDWHULDOOLNHXUDQLXPDQGWKRULXPVHULHV
$V GHVFULEHG XQGHU FRXUW GLUHFWLRQ 1R WKH GDWD DYDLODEOH IURP VRPH
,QGLDQ SRZHU SODQWV LQGLFDWH WKDW UDGLRDFWLYLW\ OHYHOV RI FRDO DQG IO\ DVK
DUH ZLWKLQ SHUPLVVLEOH OLPLW 6LQFH ,QGLD LPSRUWV D ODUJH DPRXQW RI FRDO
IURP RWKHU FRXQWULHV DQG LQ VRPH &)733V RI RWKHU FRXQWULHV WKH UDGLXP
DQG XUDQLXP FRQWHQWV RI FRDO DQG IO\ DVK DUH KLJKHU LW LV DGYRFDWHG WKDW
WKH,QGLDQ&)733VPD\PDLQWDLQUHFRUGVRIWKHUDGLRDFWLYLW\OHYHOVRIFRDO
EHLQJXVHGDQGWKHIO\DVKJHQHUDWHGE\WKHSODQWV
7DEOH$VKXWLOL]DWLRQIRUEXLOGLQJPDWHULDOVDQGSURGXFWV
%XLOGLQJPDWHULDOVSURGXFWV
0LQLPXPRIIO\DVKE\
ZHLJKW
)O\ DVK EULFNV EORFNV DQG WLOHV RIWRWDOLQSXWPDWHULDO
PDGH ZLWK IO\ DVK OLPH J\SVXP
VDQGVWRQHGXVWHWFZLWKRXWFOD\
3DYLQJ EORFNV SDYLQJ WLOHV 8VDJHRI33&,63DUWRU
FKHFNHU WLOHV PRVDLF WLOH URRILQJ 36&,6RURI23&,6
VKHHWV SUH FDVW HOHPHQWV HWF FRQWHQW
ZKHUHLQFHPHQWLVXVHGDVELQGHU
&HPHQW
RIWRWDOUDZPDWHULDOV
&OD\ EDVHG EXLOGLQJ PDWHULDOV RIWRWDOUDZPDWHULDOV
VXFKDVEULFNVEORFNWLOHVHWF
&RQFUHWHPRUWDUDQGSODVWHU
8VDJHRI33&,63DUWRU
36&,6RURI23&,6
FRQWHQW
7KH JHQHUDO VWDQGDUGV IRU GLVFKDUJH RI HQYLURQPHQWDO SROOXWDQWV
3DUW$(IIOXHQWVQRWLILHGYLGH*65(GDWHGSXEOLVKHG
LQ *D]HWWH 1R GDWHG XQGHU WKH (3$ DQG UXOHV
ϱϬ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
PDGH WKHUH XQGHU DSSO\ IRU GLVSRVDO RI OHDFKDWH LQWR VHZDJH WUHDWPHQW
SODQW673FRPPRQHIIOXHQWWUHDWPHQWSODQW&(73,QODQGVXUIDFHZDWHU
ERGLHVRUFRDVWDODUHDV7KHUHFRPPHQGHGFULWHULDIRUGLUHFWGLVSRVDORI
KD]DUGRXVZDVWHLQWR VHFXUHGODQGILOODGGLWLRQDOSDUDPHWHUVDUH JLYHQLQ
7DEOH DQG )RU HDFK &(73 RU FOXVWHUV RI XQLWV WKH UHVSHFWLYH
63&%VWDWH DXWKRULWLHV VKDOO SUHVFULEH VXLWDEOH OLPLWV DV SHU WKH ORFDO
QHHGVDQGFRQGLWLRQV
7DEOH&ULWHULDIRU'LUHFW'LVSRVDORI+D]DUGRXV:DVWHLQWR
6HFXUHG/DQGILOO
/HDFKDWHTXDOLW\
&RQFPJO
/HDFKDWHTXDOLW\
&RQFPJO
7RWDO3KHQROV
0HUFXU\
$UVHQLF
=LQF
/HDG
)OXRULGH
&DGPLXP
$PPRQLD
&KURPLXP9,
&\DQLGH
&RSSHU
1LWUDWH
1LFNHO
$GVRUEDEOH
RUJDQLFERXQG
&KORULQH
:DWHUVROXEOHFRPSRXQGVH[FHSWVDOWVS+UDQJHGIURP
6WUHQJWK
.1P
7UDQVYHUVDO
VWUHQJWK9DQH
7HVWLQJ
!
$[LDOGHIRUPDWLRQ
8QFRQILQHG
FRPSUHVVLRQ
7HVW
!
ϱϭ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
'HJUHHRIPLQHUDOL]DWLRQRUFRQWHQWRIRUJDQLFPDWHULDOV
:WIRU
$QQHDOLQJORVV
QRQ
RIWKHGU\
R
UHVLGXHDW & ELRGHJUDGDEOH
ZDVWH
:WIRU
ELRGHJUDGDEOH
ZDVWH
([WUDFWDEOH
OLSRSK\OLF
FRQWHQWV2LO
DQG*UHDVH
ZW
1RWH /HDFKDWH TXDOLW\ LV EDVHG RQ ZDWHU OHDFKDWH WHVW /HDFKDELOLW\
WHVWV DUH FRQGXFWHG E\ SUHSDULQJ D VXVSHQVLRQ RI ZDVWH ZDWHU LH
WDNLQJ JP RI ZDVWH DQG ILOOLQJ XS WR OLWHU ZLWK GLVWLOOHG ZDWHU
VWLUULQJ IRU KUV ILOWHULQJ VROLGV DQG DQDO\]LQJ WKH ILOWUDWH &DORULILF
YDOXHRIODQGILOODEOHKD]DUGRXVZDVWHVVKRXOGEH!.&DONJ
7DEOH/HDFKDWH'LVSRVDO6WDQGDUGV$GGLWLRQDO3DUDPHWHUV
5HFRPPHQGHG
3DUDPHWHUV
6WDQGDUGVPJO
,QODQG
6XUIDFH
673
&(73
0DULQH&RDVWDO
$UHDV
$GVRUEDEOHRUJDQLF
KDORJHQV$2;
B
B
3RO\DURPDWLF
K\GURFDUERQV3$+
B
B
%HQ]HQH
B
B
7ROXHQH
B
B
;\OHQH6XPRI
RPS[\OHQH
B
B
1RWH/HDFKDWHVKDYLQJKLJK&2'VKDOOEHFRQFHQWUDWHGWKURXJKIRUFHG
HYDSRUDWLRQ DQG IHG WR WKH LQFLQHUDWRU RI WKH LQWHJUDWHG WUHDWPHQW
VWRUDJH DQG GLVSRVDO IDFLOLWLHV GXH WR LWV KLJK FDORULILF YDOXH DQG WKH
UHVLGXH DVK VKDOO EH GLVSRVHG RI LQ WKH VHFXUHG ODQGILOO %LRDVVD\ WHVW
VKDOOEHVXEVWLWXWHGE\)LVK7R[LFLW\WHVWDQGDGLOXWLRQIDFWRURIWZR
PD\EHFRQVLGHUHG
ϱϮ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
+DQGOLQJ&ROOHFWLRQDQG7UDQVSRUWDWLRQRI+D]DUGRXV:DVWH
7KH JXLGHOLQHV RI WKH 0R()&3&% IRU WUDQVSRUWDWLRQ RI +D]DUGRXV :DVWH
+D]DUGRXV:DVWH0DQDJHPHQW6HULHV+$=:$06QHHGWR
EHIROORZHGFRYHULQJGLIIHUHQWDVSHFWVRIRIIVLWHWUDQVSRUWDWLRQIRUGLVSRVDO
RI KD]DUGRXV ZDVWHV VXFK DV SDFNLQJ ODEHOOLQJ FROOHFWLRQ DQG
WUDQVSRUWDWLRQ 7KH UHVSRQVLELOLW\ LV WR EH VKDUHG E\ ZDVWH JHQHUDWRU
RSHUDWRU IRU WUHDWPHQW DQG GLVSRVDO RI KD]DUGRXV ZDVWH DQG WUDQVSRUWHU
)RU H[DPSOH WKH JHQHUDWRU VKDOO SURYLGH WKH WUDQVSRUWHU ZLWK 7UDQVSRUW
(PHUJHQF\&DUG75(0UHJDUGLQJWKHKD]DUGRXVQDWXUHRIWKHZDVWHVDQG
PHDVXUHVWREHWDNHQLQFDVHRIDQHPHUJHQF\͘
7KH 0R() QRWLILFDWLRQ LQ DQG EURDGO\ GHVFULEHG WKH
PHDVXUHV IRU PLWLJDWLRQ RI WKH ULVNV LQYROYHG LQ KDQGOLQJ FROOHFWLRQ DQG
GLVSRVDORIKD]DUGRXVZDVWHDVJLYHQLQ7DEOHLVDOVRWREHIROORZHGE\
&)733V FRQVLGHULQJ WKH GLIIHUHQW W\SHV RI SODQW RSHUDWLRQV )RU HIILFLHQW
PDQDJHPHQW RI KD]DUGRXV ZDVWH DQ LQWHJUDWHG DSSURDFK LV UHTXLUHG IRU
VHJUHJDWLRQFKDUDFWHUL]DWLRQRIWKHOHIWRYHUDIWHUUHXVHRIUHF\FODEOHDQG
UHFRYHUDEOH LPPRELOL]DWLRQ WUHDWPHQWGHVWUXFWLRQ DQG XOWLPDWHO\ WKH
UHVLGXH ZDVWH QHHG WR EH GLVSRVHG RII RQ VLWH RU RII VLWH XVLQJ WUHDWPHQW
VWRUDJH DQG GLVSRVDO IDFLOLWLHV 'HSHQGLQJ RQ WKH QDWXUH RI WKH KD]DUGRXV
ZDVWHWR[LFLQIODPPDEOHH[SORVLYHDQGFRUURVLYHWKHUHLVUHTXLUHPHQWRI
VDIH GLVSRVDO VXFK DV D DSSURSULDWH SDFNLQJ LQ ODEHOOHG OHDN SURRI
FRQWDLQHU E FROOHFWLRQ DQG ORDGLQJ RI WKH FRQWDLQHU WR WKH YHKLFOH IRU
WUDQVSRUWDWLRQDYRLGLQJDFFLGHQWDOVSLOODJHFXQORDGLQJWKHFRQWDLQHUIRU
VWRUDJHGLVSRVDODWWKHSURSHUVLWHGSUHFDXWLRQIRUDYRLGLQJDFFLGHQWDO
VSLOODJH GXULQJ ORDGLQJ WUDQVSRUWDWLRQ DQG XQORDGLQJ DQG DOVR H
DFFLGHQWHPHUJHQF\PDQDJHPHQWSODQDWDOOSODFHV
)DFLOLWDWHVXSSO\RIGU\DVKWR
HQWUHSUHQHXUV
5HGXFHODQGUHTXLUHPHQWIRUDVK
GLVSRVDODQGSROOXWLRQIURPDVK
GLVSRVDOVLWH
'U\FROOHFWLRQRIIO\
DVKDQGVXSSO\RIDVK
WRHQWUHSUHQHXUV
GR
B
B
$VKXWLOLVDWLRQ
'LVSRVDORIXQXVHG
DVK
0LOOUHMHFWVSODQW
&RROLQJRIKRWZDWHUIURP
FRQGHQVHUDQGDX[LOLDU\FRROLQJ
V\VWHPVIRUUHF\FOH
,QGXFHGGUDIW
FRROLQJWRZHUV
/LTXLGZDVWHPDQDJHPHQW
(QYLURQPHQWDOO\VDIHGLVSRVDORI
PXQLFLSDOZDVWHIURPWRZQVKLS
7RZQVKLSVROLGZDVWH B
5HXVHZLWKLQSODQWVDOHWRVPDOOHU
LQGXVWULHVIRUUHXVH
(QYLURQPHQWDOO\VDIHGLVSRVDORI
XQXVHGDVK
7DUJHWVWRDFKLHYH
6ROLG:DVWH0DQDJHPHQW
0R()
1RWLILFDWLRQ
,QFUHDVHLQWHPS
RIZDWHUFRPLQJ
RXWRIFRROLQJ
V\VWHPV
$LUDQGZDWHU
SROOXWLRQVSUHDG
RIGLVHDVHYHFWRUV
B
B
,QFUHDVHGODQG
UHTXLUHPHQW
5HGXFWLRQLQ
TXDQWLW\RIDVK
XWLOLVHG
5LVNVDQG
FRQVHTXHQFHRI
IDLOXUH
20JURXS
7RZQVKLS
DGPLQLVWUDWLRQ
JURXS
$VKKDQGOLQJJURXS
+XPDQUHVRXUFHVWR
LPSOHPHQWPLWLJDWLRQ
PHDVXUHV
7DEOH0LWLJDWLRQPHDVXUHVWREHLPSOHPHQWHGGXULQJRSHUDWLRQSKDVH
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
3URSRVHGPLWLJDWLRQ
PHDVXUHV
ϱϯ
GR
GR
$VKZDWHUWUHDWPHQW
DQGUHF\FOH
6HZDJHWUHDWPHQW
SODQW
2WKHUV
$IIRUHVWDWLRQDQG
JUHHQEHOW
GHYHORSPHQW
&RQWURORIILUHDQG
H[SORVLRQKD]DUGV
6DIHW\
(FRORJLFDOLPSURYHPHQW
DWWHQXDWLRQRIDLUSROOXWDQWV630
62DQG12[DQGQRLVHLQVRXUFH
UHFHSWRUSDWKZD\
5HPRYDORIVXVSHQGHGVROLGVRLO
JUHDVHDQGRUJDQLFPDWWHUWR
FRQIRUPWRUHJXODWRU\VWDQGDUGVIRU
HIIOXHQWGLVFKDUJHLQWRLQODQG
VXUIDFHZDWHUV
5HPRYDORIVXVSHQGHGVROLGVIRU
UHF\FOHRIHIIOXHQWVLQWRDVKZDWHU
V\VWHP
5HPRYDORIVXVSHQGHGVROLGVRLO
JUHDVHDQGQHXWUDOLVDWLRQRIS+WR
FRQIRUPWRUHJXODWRU\VWDQGDUGVIRU
HIIOXHQWGLVFKDUJHLQWRLQODQG
VXUIDFHZDWHUV
6DIHW\JURXS
+RUWLFXOWXUHJURXS
$OUHDG\
LPSOHPHQWHG
XQGHU6WDJH,DQG
,,
,QFUHDVHGULVNRI
ILUHDQGH[SORVLRQ
7RZQVKLS
DGPLQLVWUDWLRQ
JURXS
,QFUHDVHLQ
SDUDPHWHUV
20$VKKDQGOLQJ
JURXS
20:DWHU
7UHDWPHQW3ODQW
JURXS
,QFUHDVHLQ
TXDQWLW\RIDVK
SRQGRYHUIORZ
,QFUHDVHLQ
SDUDPHWHUV
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ʹǣ
Ǥͺ
0DLQ3ODQW(IIOXHQW
7UHDWPHQW3ODQW
LQFOXGLQJ&HQWUDO
0RQLWRULQJ%DVLQ
ϱϰ
ϱϱ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
%5,() 127( 2) 9,6,7 2) 1,2+ 6&,(17,676 72
5,+$1' 683(5 7+(50$/ 32:(5 352-(&7 173& ²
)8// 5(3257 68%0,77(' 72 7+( +21·%/( &2857 $1'
$11(;('6(3$5$7(/<
7KH 1,2+ XQGHUWRRN DQ RQVSRW VXUYH\ WR NQRZ WKH VWDWXV RI WKH KHDOWK
DQGVDIHW\QRUPVWKDWDUHEHLQJSUDFWLVHGLQ&)733V,WKDVEHHQGHFLGHG
E\ WKH &($ WKDW LQLWLDOO\ WZR XQLWV PD\ EH FRQVLGHUHG 5LKDQG 6XSHU
7KHUPDO3RZHU3URMHFWDW5LKDQG83DQG*XMDUDW(OHFWULFLW\%RDUG*(%
6LQFH WKHUH ZDV QR UHVSRQVH UHFHLYHG IURP WKH *(% 1,2+ WHDP
FRPSULVLQJ RI ILYH VFLHQWLVWV 'U 3 . *DQJRSDGK\D\ 6FLHQWLVW ) DQG
2IILFHU²LQ&KDUJH'U$.0XNKHUMHH6FLHQWLVW(52+&(.RONDWDDQG
'U0UV$QMDOL1DJ6FLHQWLVW('U$VLP6DKD6FLHQWLVW&'U65DJKDYDQ
6FLHQWLVW%1DWLRQDO,QVWLWXWHRI2FFXSDWLRQDO+HDOWK$KPHGDEDGYLVLWHG
5LKDQG6XSHU7KHUPDO3RZHU3URMHFWIURPUGWRWK)HEUXDU\
5LKDQG 6XSHU 7KHUPDO 3RZHU 3URMHFW6WDWLRQ LV VLWXDWHG DW WKH
VRXWKHDVWHUQUHJLRQRI8WWDU3UDGHVK7KHDUHDLVDOVRFRQVLVWLQJRIRWKHU
SRZHU SURMHFWV QDPHO\ 6LQJUDXOL 7KHUPDO 0: 9LQGK\DFKDO
7KHUPDO 0: $QSDUD 7KHUPDO 0: 2EUD 7KHUPDO 0: 5LKDQG +\GHO 0: 2EUD +\GHO 0: DQG 5HQXVDJDU
3RZHU &R 0: 7KH WHDP YLVLWHG WKH YDULRXV VLWHV DQG FROOHFWHG
VDPSOHVRIGXVWVDQGDPELHQWJDVHV1RLVHOHYHOVZHUHPHDVXUHGLQVRPH
RIWKHSURFHVVHV7KHWHDPSDLGDWWHQWLRQWRZDVWHGLVSRVDOOLTXLGZDVWH
WUHDWPHQWSODQWIO\DVKGLVSRVDODVKSRQGDQGDVKEULFNSURGXFWLRQXQLWV
7KH WHDP DOVR YLVLWHG WKH KRVSLWDO DQG WKH VXUURXQGLQJ FRPPXQLW\
:HOIDUH DFWLYLWLHV WDNHQ XS E\ WKH PDQDJHPHQW RI WKH SODQW IRU WKH
HPSOR\HHVRIWKHSODQWDQGVXUURXQGLQJFRPPXQLW\KDYHDOVREHHQWDNHQ
LQWR FRQVLGHUDWLRQ LQFOXGLQJ WKH WUDLQLQJ DFWLYLWLHV 7KH WHDP JDWKHUHG
ϱϲ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
LQIRUPDWLRQUHJDUGLQJLQMXU\DFFLGHQWHQYLURQPHQWDOLPSDFWDVVHVVPHQW
HQYLURQPHQWDO HSLGHPLRORJLFDO VWXGLHV RFFXSDWLRQDO GLVHDVH VWDWLVWLFV
SUHHPSOR\PHQW DQG SHULRGLF PHGLFDO H[DPLQDWLRQ RQVLWH RII VLWH
HPHUJHQF\ SUHSDUHGQHVV PRFN GULOO HPLVVLRQ TXDOLW\ FRPPXQLW\
PRQLWRULQJGDWDVDIHW\UHSRUWVHWF
5LKDQG SRZHU SODQW KDV WDNHQ PHDVXUHV LQ NHHSLQJ WKH SODQW DUHD
FOHDQ DQG QHDU]HUR GLVFKDUJH RI OLTXLG ZDVWH 5LKDQG SRZHU VWDWLRQ
PDLQWDLQV D EHGGHG KRVSLWDO IRU LWV HPSOR\HHV DQG GHSHQGHQWV 7KH
KHDOWK FDUH IDFLOLWLHV KDYH EHHQ H[WHQGHG WR WKH VXUURXQGLQJ FRPPXQLW\
RQ
WRNHQ
SD\PHQW
EDVLV
,Q
WKH
SODQW
DUHD
WKHUH
DUH
SODFHVORFDWLRQVRSHUDWLRQV ZKHUH HQYLURQPHQWDO FRQGLWLRQV QHHG
LPSURYHPHQW +D]DUGV RI GXVW DQG QRLVH QHHG WR EH PLWLJDWHG 7KRXJK
]HURGLVFKDUJHRIHIIOXHQWVKDVEHHQDWWHPSWHGWKHUHZDVVRPHGHJUHHRI
VXFFHVV 6HZDJH WUHDWPHQW DQG IO\ DVK XVH UHTXLUH FDUHIXO SODQQLQJ
$FFRUGLQJO\ WKH RFFXSDWLRQDO KHDOWK VHUYLFHV QHHG WR EH VWUHQJWKHQHG
IRUZKLFKWKHUHLVDUHTXLUHPHQWRIDIXOOIOHGJHGRFFXSDWLRQDOKHDOWKXQLW
&XUUHQWO\ WKH RFFXSDWLRQDO KHDOWK KDV EHHQ ORRNHG DIWHU E\ DQ
RFFXSDWLRQDO KHDOWK SK\VLFLDQ FHUWLILFDWH FRXUVH PDLQWDLQLQJ D VPDOO
VHWXS ,QQRYDWLYH DSSURDFK PD\ EH UHTXLUHG LQ LPSOHPHQWLQJ FRUH
2FFXSDWLRQDO+HDOWKDQG6DIHW\2+6HOHPHQWVLQGLIIHUHQWRSHUDWLRQVRI
WKH&)7337KH2+6XQLWUHTXLUHVTXDOLILHGSURIHVVLRQDOIRUPRQLWRULQJRI
SRWHQWLDO ULVNV RI KHDOWK DQG VDIHW\ DW ZRUNSODFHV 'RFXPHQWDWLRQ DQG
UHFRUGVPDQDJHPHQWQHHGWREHLPSURYHGDQGVWUHQJWKHQHG
2EVHUYDWLRQV VXJJHVW WKDW WKH PDQDJHPHQW RI WKH SRZHU SODQW
VKRXOG GHYHORS DQ RUJDQL]DWLRQVSHFLILF ZRUNSODFH VWDQGDUG DQG
JXLGHOLQHV PLJKW EH EHQHILFLDO LQ PLWLJDWLQJ ZRUNSODFH KD]DUGV
LQFUHDVLQJ ZRUN HIILFLHQF\ DQG VXEVWDQWLDOO\ LPSURYLQJ KHDOWK DQG ZHOO
EHLQJRIWKHSHRSOHLQYROYHG7KHVHVXJJHVWLRQVDSSO\WRDOOPDMRUSRZHU
SURMHFWVLQ ,QGLD DQG LQ WXUQ VXSSRUW VPDOOHU SURMHFWV WR ORRN LQWR 2+6
LVVXHV 2QH RI WKH VDOLHQW REVHUYDWLRQV ZDV UHODWHG WR KXPDQPDFKLQH
ϱϳ
ʹǣ
Ǥͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
HQYLURQPHQWRUJDQL]DWLRQ UHODWLRQVKLSV ,Q RWKHU ZRUGV PDQPDFKLQH
V\VWHP LQFRPSDWLELOLWLHV VKRXOG EH FOHDUO\ XQGHUVWRRG ² DQ H[DPSOH LV
WKH IXQFWLRQV RI WKH FRQWURO URRP RI WKH SODQW 'LVSOD\FRQWURO
FRPSDWLELOLW\ DQG WKH RSHUDWRU·V FRJQLWLYH SHUIRUPDQFH KDYH GLUHFW
OLQNDJH WR WKH HIIHFWLYHQHVV RI WKH FRQWURO URRP IXQFWLRQV RI WKH SODQW
5HJXODU PRQLWRULQJ RI WKH DLU DQG ZDWHU TXDOLWLHV DURXQG WKH WKHUPDO
SRZHUSODQWLVHVVHQWLDOLQRUGHUWRHQVXUHWKDWWKHDPELHQWDLUTXDOLW\LV
DV SHU WKH KRXUO\ UHFRPPHQGHG SHUPLVVLEOH OLPLWV IRU LQGXVWULDO
DUHDV7KHUHDUHUHTXLUHPHQWVIRUEURDGEDVHGVWXG\RQFRPSUHKHQVLYH
KHDOWK ULVN DVVHVVPHQW FRYHULQJ ZRUNHUV IURP YDULRXV SODQW RSHUDWLRQV
DQG DOVR PRQLWRULQJ WKH SRSXODWLRQ LQ WKH VXUURXQGLQJ FRPPXQLW\
HQYLURQPHQW
ϱϴ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&+$37(5
&2857',5(&7,2112
$SSRLQWPHQW RI D FRPPLWWHH RI WKH H[SHUWV E\ 1,2+ LQFOXGLQJ
WKHUHLQ WUDGH XQLRQ UHSUHVHQWDWLYH DQG +HDOWK DQG 6DIHW\ 1*2V WR
ORRN LQWR WKH LVVXH RI +HDOWK DQG 6DIHW\ RI ZRUNHU DQG PDNH
UHFRPPHQGDWLRQV
5HIHUHQFHWRWKH:ULW3HWLWLRQ&LYLO1RRIZLWKUHVSHFWWRKHDOWK
DQG VDIHW\ LVVXHV RI SHUVRQV ZRUNLQJ LQ FRDO ILUHG WKHUPDO SRZHU SODQWV
WKH VSHFLILF GLUHFWLRQ JLYHQ E\ WKH +RQ·EOH &KLHI -XVWLFH RI ,QGLD RQ -DQXDU\ WR ´DSSRLQWPHQW RI D FRPPLWWHH RI WKH H[SHUWV E\ 1,2+
LQFOXGLQJWKHUHLQWUDGHXQLRQUHSUHVHQWDWLYHDQG+HDOWKDQG6DIHW\1*2V
WR ORRN LQWR WKH LVVXH RI +HDOWK DQG 6DIHW\ RI ZRUNHU DQG PDNH
UHFRPPHQGDWLRQVµ
&RQVWLWXWLRQ RI H[SHUW FRPPLWWHH VFRSH PHHWLQJV DQG FRUH
FRPPLWWHHV
$V UHIHUUHG WR LQ &KDSWHU *HQHVLV WKH 1,2+ FRQVWLWXWHG D
FRPPLWWHH RI H[SHUWV UHIHU WR 3DJH RI WKLV UHSRUW DFFRUGLQJ WR WKH
GLUHFWLRQ RI WKH +RQ·EOH &RXUW DQG WKH PHPEHUV RI GLIIHUHQW
RUJDQL]DWLRQVDQGVSHFLDOW\VDWRQGLIIHUHQWRFFDVLRQVDQGGHOLEHUDWHGRQ
WKHLVVXHVWRILQDOL]HWKHUHFRPPHQGDWLRQRIWKHH[SHUWFRPPLWWHH
7KH VFRSH RI WKH H[SHUW FRPPLWWHH ZDV WR ORRN LQWR WKH LVVXHV RI
KHDOWK DQG VDIHW\ RI ZRUNHUV ZLWK UHVSHFW WR FRDOILUHG WKHUPDO SRZHU
ϱϵ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
SODQWV&)733VDQGPDNHUHFRPPHQGDWLRQV7KHFRPPLWWHHORRNHGLQWR
FRQWUROPHDVXUHVDGRSWHGE\WKHUPDOSRZHUSODQWVIRUWKHFRQWURORIGXVW
KHDW QRLVH YLEUDWLRQ DQG UDGLDWLRQ DQG PHWKRGV IRU WKH KDQGOLQJ
FROOHFWLRQDQGGLVSRVDORIKD]DUGRXVZDVWHWRPDNHUHFRPPHQGDWLRQV,Q
RUGHU WR SURYLGH WHFKQLFDO VXSSRUW WR WKH ([SHUW &RPPLWWHH WZR FRUH
FRPPLWWHHV IURP WKH VDPH JURXS RI PHPEHUV ZHUH DOVR IRUPHG 7KH
H[SHUW FRPPLWWHH PHPEHUV DOVR YLVLWHG 6LQJUDXOL 6XSHU 7KHUPDO 3RZHU
3URMHFW RI 173& /LPLWHG 'LVWULFW 6RQHEKDGUD 83 EHIRUH ILQDOL]LQJ WKH
UHFRPPHQGDWLRQ7KHPLQXWHVRIPHHWLQJVDUHHQFORVHG$QQH[XUH
2FFXSDWLRQDO+HDOWK6DIHW\,VVXHVRI:RUNHUVLQ&RDO%DVHG
7KHUPDO3RZHU3ODQWVDQG5HFRPPHQGDWLRQ
,VVXHVRU&DXVHV
7KH +RQ·EOH 6XSUHPH &RXUW KDV H[SUHVVHG FRQFHUQV RQ RFFXSDWLRQDO
KHDOWK DQG VDIHW\ LVVXHV RI ZRUNHUV LQ &)733V DV D ZKROH ZLWK VSHFLDO
PHQWLRQ RQ KD]DUGV DVVRFLDWHG ZLWK D GXVW E KHDW F QRLVH G
YLEUDWLRQÝHUDGLDWLRQDQGIGLVSRVDORIZDVWHV7KHDERYHIDFWRUVKDYH
EHHQGHOLEHUDWHGLQGHWDLOE\WKH([SHUW&RPPLWWHHDQGWKHREVHUYDWLRQV
DUHDVIROORZV
'XVW7KHGXVW LVJHQHUDWHGLQ&)733GXH WRDFRPEXVWLRQRI FRDODQG
E GXH WR KDQGOLQJ RI PDWHULDOV VSHFLDOO\ FRDO DQG IO\ DVK 7KH GXVW
JHQHUDWHGGXHWRFRPEXVWLRQRIFRDOLVPDLQO\DUUHVWHGWKURXJK(63EDJ
ILOWHUWRFRPSO\ZLWKWKHVWLSXODWHGVWDQGDUGVDQGIOXHJDVDIWHUFOHDQLQJLV
UHOHDVHGLQWRDWPRVSKHUHWKURXJKVWDFNV7KHGXVWSDUWLFOHVUHOHDVHGLQWR
DWPRVSKHUHDUHVSUHDGRYHUDZLGHDUHDGXHWRQDWXUDOIRUFHRIZLQGDQG
WKHUHIRUH WKH HIIHFW DW JURXQG OHYHO LV VLJQLILFDQWO\ UHGXFHG +RZHYHU
WKLV GXVW PD\ DIIHFW WKH ZRUNHUV LQVLGH WKH SRZHU SODQWV DV ZHOO DV
ZRUNHUV WKHLU IDPLOLHV DQG JHQHUDO SRSXODWLRQ UHVLGLQJ LQ WKH YLFLQLW\ RI
WKHSODQW7KHGXVWJHQHUDWHGGXHWRKDQGOLQJRIFRDODQGIO\DVKLVFDOOHG
ϲϬ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
IXJLWLYH GXVW DQG WKH LPSDFW RI WKLV W\SH RI GXVW LV OLPLWHG WR ZRUN ]RQH
FRDORUDVKKDQGOLQJSODQWVRULWVLPPHGLDWHYLFLQLW\
+HDW ,Q D &)733 WKH FKHPLFDO HQHUJ\ RI FRDO LV FRQYHUWHG WR WKHUPDO
HQHUJ\ ZKLFK LV WKHQ FRQYHUWHG WR PHFKDQLFDO HQHUJ\ DQG ILQDOO\ WR
HOHFWULFDO HQHUJ\ 7KHUHIRUH KHDW LV DQ LQWHUPHGLDWH SURGXFW ZKLFK LV
JHQHUDWHG LQ ERLOHUV DQG WKHQ WUDQVPLWWHG WR WXUELQHV WKURXJK KLJK
SUHVVXUH DQG WHPSHUDWXUH VWHDP 7KH ERLOHUV DQG SLSHOLQHV FDUU\LQJ
VWHDP DUH LQVXODWHG WR SUHYHQW KHDW ORVVHV DV ZHOO DV PDLQWDLQ VDIH
ZRUNLQJ FRQGLWLRQV +HDW H[SRVXUH WR ZRUNHUV PD\ RFFXU XQGHU
FRQGLWLRQVVXFKDVDVKRUWWHUPH[SRVXUHWRKLJKWHPSHUDWXUHVFDXVLQJ
EXUQV RU E ORQJ WHUP H[SRVXUH WR JUDGXDO ULVH RI WHPSHUDWXUHV LQ WKH
ZRUNHQYLURQPHQW
1RLVH 7KH &)733V XVH D QXPEHU RI PDFKLQHU\ DQG HTXLSPHQW WKDW
JHQHUDWHKLJKQRLVHVXFKDVERLOHUVWXUELQHJHQHUDWRUVPRWRUVSXPSV
FRPSUHVVRUV IDQV EHOW FRQYH\RUV SLSLQJ DQG YDOYHV WUDQVIRUPHUV
FLUFXLW EUHDNHUV 7KHVH PDFKLQHU\ DUH ZLGHVSUHDG DQG WKH QRLVH OHYHO
YDU\ ZLWK UHVSHFW WR WKH PDFKLQHU\ ORFDWLRQ LQ WKHUPDO SRZHU SODQWV
)XUWKHUWKHRSHUDWLQJKRXUVDQGQRLVHOHYHOVRIWKHHTXLSPHQWDOVRYDU\
ZLWKUHVSHFWWRWKHW\SHRIHTXLSPHQWLQRSHUDWLRQLWVORFDWLRQDQGXVH
9LEUDWLRQ 7KH &)733V XVH D QXPEHU RI WRROV DQG PDFKLQHU\ WKDW
JHQHUDWH YLEUDWLRQV VXFK DV GULOOLQJ PDFKLQHV YLEUDWLQJ KDPPHUV
YLEUDWLQJ FRPSDFWRUV SQHXPDWLF WRROV +RZHYHU WKH XVHV RI VXFK
PDFKLQHV DQG WRROV DUH OLPLWHG WR FRQVWUXFWLRQ DQGRU PDLQWHQDQFH
SKDVHV7KHKLJKVSHHGPRYLQJFRPSRQHQWVRISRZHUSODQWVOLNHWXUELQH
JHQHUDWRUV SXPSV FRPSUHVVRUV PRWRUV DUH WKH PDMRU VRXUFHV RI
YLEUDWLRQWKDWPLJKWJHWWUDQVPLWWHGWRWKHKXPDQERG\DQGDOVRWKURXJK
KDQGDUPFRQWDFW
ϲϭ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
5DGLDWLRQ5DGLDWLRQKD]DUGLVPRUHRIDFRQFHUQLQQXFOHDUSRZHUSODQWV
ZKLFKXVHKLJKO\UDGLRDFWLYHPDWHULDOV7KHWKHUPDOSRZHUSODQWVGRQRW
KDYH VLJQLILFDQW UDGLDWLRQ KD]DUG DUHDV ZKLFK FDQ DIIHFW WKH ZRUNHUV
DGYHUVHO\
+HDOWK,PSDLUPHQWV
'XVW 7KH KD]DUGV DVVRFLDWHG ZLWK LQKDODWLRQ RI FRDO GXVW PLJKW UHVXOW LQ
GHYHORSPHQW RI GXVW UHODWHG PRUELGLW\ LQ WKH IRUP RI SQHXPRFRQLRVLV
FRDO ZRUNHUV SQHXPRFRQLRVLV VLOLFRVLV DQG QRQSQHXPRFRQLRWLF
SHUVLVWHQW UHVSLUDWRU\ PRUELGLWLHV VXFK DV FKURQLF EURQFKLWLV
HPSK\VHPD DVWKPD :KHUHYHU DVEHVWRV ILEUHV DUH XVHG IRU LQVXODWLRQ
DQG RWKHU SXUSRVHV WKH SRVVLELOLW\ RI DVEHVWRVLV DPRQJ ZRUNHUV GXH WR
LQKDODWLRQ RI DVEHVWRV ILEHUV FDQ QRW EH UXOHG RXW 2WKHU PRUELGLWLHV
EHFDXVH RI H[SRVXUH WR IO\ DVK LQFOXGLQJ PHWDOOLF FRQVWLWXHQWV VXFK DV
OHDG DUVHQLF DQG PHUFXU\ PLJKW DOVR EH SUHVHQW 'XH WR H[SRVXUH WR
RWKHU FKHPLFDOV XVHG LQ GLIIHUHQW RSHUDWLRQV RI &)733 PD\ DOVR EH
UHVSRQVLEOHWRDGYHUVHO\DIIHFWKXPDQKHDOWK
+HDW2FFXSDWLRQDOH[SRVXUHWRKLJKKHDWLQGLIIHUHQW733RSHUDWLRQPD\
FDXVHKHDWUHODWHGGLVRUGHUVOLNHKHDWH[KDXVWLRQ
1RLVH DQG YLEUDWLRQ 7KH VHYHUH KHDOWK KD]DUGV DUH GXH WR H[SRVXUH WR
QRLVH DQG YLEUDWLRQ WKH LQKHUHQW ULVNV DVVRFLDWHG ZLWK WKH RSHUDWLRQ RI
&)733 1RLVH DQG YLEUDWLRQ H[SRVXUHV LQ KLJKHU GRVHV WKDQ WKH
SHUPLVVLEOHOLPLWVPD\UHVXOWLQQRLVHLQGXFHGKHDULQJORVVUDLVHGEORRG
SUHVVXUHUHJLRQDOYDVFXODUGLVRUGHUVPXVFXORVNHOHWDOGLVRUGHUVKXPDQ
HUURUSURGXFWLYLW\ORVVDFFLGHQWVDQGLQMXULHV
ϲϮ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
5DGLDWLRQ 5DGLDWLRQ 5DGRQ HWF KD]DUGV SDUWLFXODUO\ IURP WKH
JHQHUDWHG IO\ DVK DQG LWV XVHG SURGXFWV KDYH DOVR EHHQ LQGLFDWHG RI
SRVVLEOHKHDOWKULVNV
$FFLGHQWVDQG,QMXULHV
(OHFWULFDO KD]DUGV (OHFWULFDO VKRFN EXUQV IURP HQHUJL]HG HTXLSPHQW
DQGSRZHUOLQHVUHPDLQVLQKHUHQWKD]DUGVRIZRUNHUVLQ&)733V
$FFLGHQW DQG LQMXULHV 7KH SUHYDOHQFHLQFLGHQFH RI DFFLGHQW DQG
LQMXULHV DUH YHU\ PXFK DVVRFLDWHG ZLWK &)733 RSHUDWLRQV DQG LQGLFDWRUV
RIUHODWLYHSHUIRUPDQFHRIWKHIDFLOLW\$WWLPHVWKHDFFLGHQWVFXOPLQDWHLQ
ORVWZRUNWLPHSDUWLDOGLVDEOHPHQWDQGIDWDOLW\%XUVWLQJRISLSHOLQHVDQG
YHVVHOVVWHDPSLSHVGXHWRKLJKSUHVVXUHWHPSHUDWXUH+JDVOLQHVDFLG
OLQHVDQGRLOOLQHVDUHWKHSRWHQWLDODUHDVRIDFFLGHQWV
&KHPLFDO +D]DUGV 'LIIHUHQW FKHPLFDOV WKDW DUH RIWHQ EHLQJ XVHG LQ
&)733VVXFKDVFKORULQHDPPRQLDIXHORLODQGUHOHDVHGLQWKHZRUNLQJ
DQGFRPPXQLW\HQYLURQPHQWPD\EHUHVSRQVLEOHIRUZLGHUDQJHRIDFXWH
DVZHOODVFKURQLFKHDOWKLPSDLUPHQWV
)LUH DQG ([SORVLRQ 6LQFH ODUJH TXDQWLWLHV RI FRDO RWKHU IXHOV DQG
FKHPLFDOVDUHVWRUHGDQGXVHGLQ&)733VWKHULVNVRIILUHDQGH[SORVLRQ
DUH KLJK XQOHVV VSHFLDO FDUH LV WDNHQ LQ KDQGOLQJ WKH PDWHULDOV 6RPH
DUHDV RI ILUH DQG H[SORVLRQ KD]DUGV DUH FRDO KDQGOLQJ SODQW FRDO
FRQYH\RU
IXHO
RLOOXEULFDQW
KDQGOLQJ
DQG
VWRUDJH
DUHDV
WUDQVIRUPHUVZLWFK\DUGVERLOHUVK\GURJHQJHQHUDWLRQSODQWHWF
:RUNSODFH SK\VLFDO KD]DUGV ,Q YDULRXV ZRUN RSHUDWLRQV IRU PDQXDO
PDWHULDOVKDQGOLQJWKHZRUNHUVDUHVXEMHFWHGWRKLJKGHJUHHRISK\VLFDO
VWUHVV ZLWK SRWHQWLDO ULVNV RI PXVFXORVNHOHWDO GLVRUGHUV DQG LQMXULHV
$OVR WKH RSHUDWRUV WKDW UHPDLQ LQ FRQWURO URRP RSHUDWLRQV IRU VXVWDLQHG
ORQJKRXUVRIFRQILQHGZRUNWKHLUSRVWXUDOVWUHVVFDQQRWEHLJQRUHG
ϲϯ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
2EVHUYDWLRQVRQH[LVWLQJUHJXODWRU\JXLGHOLQHV
'XVW 7KH 0LQLVWU\ RI (QYLURQPHQW )RUHVWV 0R() *RYW RI ,QGLD KDV
VWLSXODWHG QRUPV IRU HPLVVLRQV RI SDUWLFXODWH PDWWHU LQ WKH IOXH JDV RI
WKHUPDO SRZHU SODQWV DV ZHOO DV QRUPV IRU FRQFHQWUDWLRQ RI SDUWLFXODWH
PDWWHU LQ DPELHQW DLU LQ LQGXVWULDO UXUDO UHVLGHQWLDO DQG RWKHU DUHDV
XQGHU WKH (QYLURQPHQW 3URWHFWLRQ $FW 7KHVH QRUPV DUH
DSSOLFDEOH IRU WKHUPDO SRZHU SODQWV DQG LWV YLFLQLW\ 7KH VDPH DUH
VXPPDUL]HGDVIROORZV
(PLVVLRQQRUPVIRUSDUWLFXODWHPDWWHUIRUWKHWKHUPDOSRZHUSODQWV
(3$1RWLILFDWLRQ*65(GDWHGWK$XJXVW
*HQHUDWLRQ&DSDFLW\
(PLVVLRQOLPLW
PJ1P
*HQHUDWLRQ&DSDFLW\OHVVWKDQ0:
*HQHUDWLRQ&DSDFLW\0:RUPRUH
7KH QRUPV IRU DPELHQW DLU TXDOLW\ LQ UHVSHFW RI GXVW SDUWLFOHV
SUHVFULEHGE\WKH0R()YLGH*65(GDWHGWK1RYHPEHUDQG
&3&%1RWLILFDWLRQYLGH%3&,,GDWHGWK1RYHPEHU
DUHDVIROORZV
3ROOXWDQW
7LPH
:HLJKWHG
$YHUDJH
3DUWLFXODWH0DWWHUVL]H
OHVVWKDQPRU30
3DUWLFXODWH0DWWHUVL]H
OHVVWKDQPRU30
$QQXDO
KRXUO\
$QQXDO
KRXUO\
1DWLRQDODPELHQWDLU
TXDOLW\VWDQGDUGVIRU
SDUWLFXODWHPDWWHU
JP
,Q DGGLWLRQ WR WKH DERYH WKH )DFWRULHV $FW VWLSXODWHV WKH
WKUHVKROG OLPLW YDOXHV RI GXVW SDUWLFOHV LQVLGH IDFWRULHV ZKLFK DUH EDVHG
RQWKHIUHHVLOLFDFRQWHQWLQWKHDLUERUQHGXVWDVIROORZV
ϲϰ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
3ROOXWDQWV
7RWDO'XVW
5HVSLUDEOH'XVW
&RDO'XVWUHVSLUDEOH
7RWDO3HUPLVVLEOH9DOXH
PJP
>6L2@
>6L2@
FRQWDLQLQJ6L2
+HDW,Q,QGLDWKHUHDUHQRVWDQGDUGJXLGHOLQHVRUFULWHULDGRFXPHQWIRU
LQGRRU WHPSHUDWXUH FRQGLWLRQV RU KHDW VWUHVV IRU ZRUNHUV +RZHYHU
0RGHO UXOHV WKH VWDWH )DFWRULHV 5XOHV XQGHU WKH )DFWRULHV $FW SUHVFULEHV WKH OLPLW RI WHPSHUDWXUH DQG DLU PRYHPHQWYHQWLODWLRQ XQGHU
VHFWLRQRIWKH)DFWRULHV$FW7KHVHFWLRQ%RIWKH)DFWRULHV$FW
LQGLFDWHVWKDWWKHHIIHFWLYHDQGVXLWDEOHSURYLVLRQVKDOOEHPDGHWKDWZLOO
VHFXUH UHDVRQDEOH FRQGLWLRQV RI FRPIRUW DQG SUHYHQW LQMXU\ WR KHDOWK RI
WKHZRUNHUV
1RLVH 7KH 0R() *RYW RI ,QGLD KDV VWLSXODWHG QRUPV IRU DPELHQW DLU
TXDOLW\ZLWKUHVSHFWWRQRLVHYLGHQRWLILFDWLRQGDWHGWK6HSWHPEHU
DVIROORZV
&DWHJRU\RI
$UHD=RQH
,QGXVWULDODUHD
&RPPHUFLDODUHD
5HVLGHQWLDODUHD
6LOHQFH=RQH
/LPLWVLQG%$/HT
'D\7LPH 1LJKW7LPH
)XUWKHUWKH)DFWRULHV$FWDQGWKH&3&%JXLGHOLQHVVWLSXODWH
WKHPD[LPXPSHUPLVVLEOHQRLVHH[SRVXUHOHYHOIRULQGXVWULDOZRUNHUVDV
WDEXODWHGEHORZ
ϲϱ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
([SRVXUHWLPHLQ
/LPLWIRUHTXLYDOHQW
KRXUVGD\FRQWLQXRXV FRQWLQXRXVVRXQG
RULQWHUPLWWHQWH[SRVXUH SUHVVXUHOHYHOG%$
ð
î
ï
1HYHU
!
8QGHU WKH )DFWRULHV $FW D VHSDUDWH VFKHGXOH LQFRUSRUDWHV
SURYLVLRQ IRU QRLVH SUHYHQWLRQ DQG SURWHFWLRQ XQGHU 0RGHO )DFWRULHV
5XOHV 0)5 6FKHGXOH ;;,9 IUDPHG XQGHU 'DQJHURXV RSHUDWLRQV
6HFWLRQIRURSHUDWLRQVZKHUHKLJKQRLVHH[LVWV
9LEUDWLRQ,Q,QGLDWKHUHDUHQRVWDQGDUGVRUJXLGHOLQHVIRUH[SRVXUHRI
ZRUNHUV WR YLEUDWLRQ LQ &)733V 7KH ,62 VWDQGDUGV DUH JLYHQ LQ 3DJH 7DEOH
5DGLDWLRQ,Q,QGLDWKHUHDUHQRVWDQGDUGVRUJXLGHOLQHVIRUH[SRVXUHRI
ZRUNHUV WR UDGLDWLRQ OHYHOV LQ &)733V 7KH JXLGHOLQHV LQ UHVSHFW RI
UDGLRDFWLYLW\RIFRDODQGIO\DVKDUHHODERUDWHGLQ3DJH
2WKHU 6WDQGDUGV 7KH DPELHQW DLU TXDOLW\ VWDQGDUGV HIIOXHQW GLVFKDUJH
VWDQGDUGV VWDFN HPLVVLRQ VWDQGDUGV VWDFN KHLJKW UHTXLUHPHQWV
UHTXLUHPHQWV IRU DVK XWLOL]DWLRQ HWF IRU WKH &)733V DUH FRYHUHG
XQGHUWKH(QYLURQPHQW3URWHFWLRQ$FWDQGWKH)DFWRULHV$FW
ϲϲ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&XUUHQW3UDFWLFHV
(QYLURQPHQWDO&RQWURODW:RUNSODFH
'XVW &RQWURO 0HDVXUHV 7KH FRQWURO PHDVXUHV DGRSWHG E\ WKHUPDO
SRZHUSODQWVWRFRQWUROHPLVVLRQVRISDUWLFXODWHVLQIOXHJDVDQGWRFRQWURO
DPELHQWDLUTXDOLW\DUHDVIROORZV
•
+LJK (IILFLHQF\ (63EDJ ILOWHUV ² WR FRQWURO HPLVVLRQ RI SDUWLFXODWH
PDWWHULQIOXHJDV
•
7DOO6WDFNV²WRGLVFKDUJHIOXHJDVDWKLJKDOWLWXGHWRHQVXUHZLGHU
GLVSHUVDORIIOXHJDV
•
(QFORVXUHV LQ FRDODVK KDQGOLQJ SODQWV WR SUHYHQW WKH VSUHDG RI
IXJLWLYHHPLVVLRQV
•
&RDO GXVW H[WUDFWLRQ DQG VXSSUHVVLRQ V\VWHP LQ FRDO KDQGOLQJ
SODQWVWRPDLQWDLQDFOHDQHQYLURQPHQWLQVLGHWKHSODQW
•
3URYLVLRQ RI JUHHQ EHOW DQG EXIIHU ]RQHV DURXQG FRDO DQG DVK
KDQGOLQJDUHDVWRSUHYHQWIXJLWLYHGXVWHPLVVLRQ
•
6SUD\LQJ RI ZDWHU GXULQJ FRDODVK KDQGOLQJ RSHUDWLRQV WR SUHYHQW
IXJLWLYHGXVWHPLVVLRQV
•
3URYLVLRQ RI GXVW PDVNV WR WKH SHUVRQV ZRUNLQJ LQ DUHDV ZLWK KLJK
GXVWFRQFHQWUDWLRQWRSURWHFWWKHPIURPLQKDOLQJWKHGXVW
+HDW7KHIROORZLQJPHDVXUHVDUHDGRSWHGE\WKHSRZHUSODQWVWRSURWHFW
ZRUNHUVIURPKHDW
•
5HJXODULQVSHFWLRQDQGPDLQWHQDQFHRISUHVVXUHYHVVHOVDQGSLSLQJ
ϲϳ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
•
3URYLVLRQRIDGHTXDWHYHQWLODWLRQLQZRUNDUHDVWRFRQWUROKHDWDQG
KXPLGLW\
•
5HJXODWLQJWLPHRIZRUNLQKLJKWHPSHUDWXUHHQYLURQPHQW
•
3URYLGLQJ VKLHOGLQJ VXUIDFH ZKHUH ZRUNHUV FRPH LQ FORVH FRQWDFW
ZLWKKRWHTXLSPHQWPDFKLQHU\
•
8VHRIZDUQLQJVLJQVQHDUKLJKWHPSHUDWXUHVHUYLFHV
•
3URYLGLQJ SHUVRQDO SURWHFWLYH HTXLSPHQW OLNH LQVXODWHG JORYHV
VKRHVDQGWKHUPDOVXLWV
•
3URYLVLRQRIFROGZDWHUIRUGULQNLQJDWZRUNSODFH
3URYLGLQJ UHVWLQJ SODFHV ZLWK FRQWUROOHG HQYLURQPHQW DLU
FRROHGDLU FRQGLWLRQHG FKDPEHU ZLWK SURYLVLRQV IRU GULQNLQJ ZDWHU
ZDVKLQJ IDFLOLW\ VHDWLQJ DUUDQJHPHQW ILUVW DLG IDFLOLWLHV HVVHQWLDO
PHGLFLQHVHWFIRUZRUNHUVZRUNLQJLQKLJKWHPSHUDWXUHDUHDV
1RLVH 3ROOXWLRQ &RQWURO 0HDVXUHV ,Q &)733V WKH IROORZLQJ PHDVXUHV
DUH JHQHUDOO\ WDNHQ WR FRQWURO WKH HPLVVLRQ RI QRLVH DQG SURWHFWLRQ RI
ZRUNHUVIURPKLJKQRLVHOHYHOV
•
(TXLSPHQW'HVLJQ²WRJHQHUDWHORZQRLVH
•
3URYLGLQJ DFRXVWLF HQFORVXUHV WR PDFKLQHV WR SURWHFW SURSDJDWLRQ
RIQRLVH
•
'HVLJQ RI FRQWURO URRPV EXLOGLQJVVXSHUVWUXFWXUH WR SUHYHQW
SURSDJDWLRQRIQRLVH
•
8VHRIVLOHQFHUVDQGPXIIOHUVLQLQWDNHDQGH[KDXVWFKDQQHOV
•
8VHRIVRXQGDEVRUELQJPDWHULDOVLQZDOOVDQGFHLOLQJV
ϲϴ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
•
8VHRIYLEUDWLRQLVRODWRUVDQGIOH[LEOHFRQQHFWRUV
•
'HVLJQ RI SODQW OD\RXW LQ VXFK D ZD\ WKDW WKH FXPXODWLYH HIIHFW RI
QRLVHZLWKLQDQGRXWVLGHWKHSODQWLVPLQLPL]HG
•
*UHHQ EHOW DQG DIIRUHVWDWLRQ HIIRUWV KHOS LQ UHGXFWLRQ RI
SURSDJDWLRQRIQRLVH
•
3URYLVLRQ RI SHUVRQDO SURWHFWLYH HTXLSPHQW VXFK DV HDU SOXJVDLU
PXIIVWRZRUNHUVZRUNLQJLQKLJKQRLVHDUHDV
9LEUDWLRQ7KHH[SRVXUHRIZRUNHUVWRYLEUDWLRQVLVFRQWUROOHGE\
•
3URSHUDQGUHJXODUPDLQWHQDQFHRIPDFKLQHU\
•
'HVLJQRIPDFKLQHVZLWKORZYLEUDWLRQ
•
$GPLQLVWUDWLYHFRQWURO
5DGLDWLRQ %DVHG RQ WKH GDWD DYDLODEOH RQ UDGLRDFWLYLW\ RI FRDO DQG DVK
WKH UDGLDWLRQ KD]DUG GRHV QRW DSSHDU WR EH VLJQLILFDQW KHDOWK ULVN LQ
&)733VDWWKLVWLPH
+DQGOLQJ&ROOHFWLRQDQG'LVSRVDORI+D]DUGRXV:DVWH
7KH KDQGOLQJ FROOHFWLRQ DQG GLVSRVDO RI KD]DUGRXV ZDVWHV DUH UHJXODWHG
E\ WKH 0R() +D]DUGRXV :DVWHV 0DQDJHPHQW +DQGOLQJ DQG
7UDQVERXQGDU\ 0RYHPHQW 5XOHV 6FKHGXOH , RI WKH VDLG UXOHV
LGHQWLILHV OLVW RI SURFHVVHV JHQHUDWLQJ KD]DUGRXV ZDVWHV DQG KD]DUGRXV
ZDVWHVJHQHUDWHGIURPWKHSURFHVVHV7KHFRYHUDJHXQGHU&KDSWHU,,DQG
9 RI WKH +D]DUGRXV :DVWHV 0DQDJHPHQW +DQGOLQJ DQG 7UDQVERXQGDU\
ϲϵ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
0RYHPHQW5XOHVDUHPHQWLRQHGLQ3DJHDQG7KHSURFHVVHV
DQGKD]DUGRXVZDVWHVDSSOLFDEOHWR&)733VDUHOLVWHGDVIROORZV
3URFHVV
+D]DUGRXV:DVWH
*HQHUDWHG
&OHDQLQJHPSW\LQJDQG
PDLQWHQDQFHRISHWUROHXPRLO
VWRUDJHWDQNVLQFOXGLQJVKLSV
6OXGJHVDQGILOWHUV
FRQWDLQLQJRLO
,QGXVWULDORSHUDWLRQVXVLQJ
PLQHUDOV\QWKHWLFRLODQGOXEULFDQW
LQK\GUDXOLFV\VWHPVRURWKHU
DSSOLFDWLRQV
8VHG6SHQWRLO
'LVSRVDORIEDUUHOVFRQWDLQHUVXVHG
IRUKDQGOLQJRIKD]DUGRXV
ZDVWHVFKHPLFDOV
'LVFDUGHG
FRQWDLQHUVEDUUHOVOLQHUV
FRQWDPLQDWHGZLWK
KD]DUGRXVZDVWHFKHPLFDOV
3XULILFDWLRQDQGWUHDWPHQWRI
H[KDXVWDLUZDWHUDQGZDVWHZDWHU
IURPWKHSURFHVVHVLQWKLVVFKHGXOH
DQGFRPPRQHIIOXHQWWUHDWPHQW
)OXHJDVFOHDQLQJUHVLGXH
:DVWHVUHVLGXHVFRQWDLQLQJ
RLO
6SHQWLRQH[FKDQJHUHVLQ
FRQWDLQLQJWR[LFPHWDOV
&KHPLFDOVOXGJHIURPZDVWH
ZDWHUWUHDWPHQW
2LODQGJUHDVHVNLPPLQJ
UHVLGXHV
&KURPLXPVOXGJHIURP
FRROLQJZDWHU
+D]DUGRXVZDVWHWUHDWPHQW
SURFHVVHVHJLQFLQHUDWLRQ
GLVWLOODWLRQVVHSDUDWLRQDQG
FRQFHQWUDWLRQWHFKQLTXH
$VKIURPLQFLQHUDWLRQRI
KD]DUGRXVZDVWHIOXHJDV
FOHDQLQJUHVLGXHV
6SHQWDFLGIURPEDWWHULHV
3URWHFWLRQV0HDVXUHVIRU+HDOWKDQG6DIHW\
7KH FRPPLWWHH REVHUYHG WKDW WKH IROORZLQJ PHDVXUHV DUH GLIIHUHQWO\
DGRSWHG E\ WKH &)733V IRU SURWHFWLQJ KHDOWK DQG HQVXULQJ VDIHW\ RI
ZRUNHUV
D
7UDLQHGILUVWDLGSHUVRQQHOZLWKDSSOLDQFHV
E
3UHHPSOR\PHQWPHGLFDOH[DPLQDWLRQ
ϳϬ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
F
3HULRGLFDOPHGLFDOH[DPLQDWLRQ
G
0DLQWHQDQFHRIUHFRUGV
H
8VHRISHUVRQDOSURWHFWLYHPHDVXUHV
I
(PHUJHQF\SUHSDUHGQHVV
J
0RFNGULOO
K
2FFXSDWLRQDO+HDOWK&HQWHULQVRPHFDVHV
L
&XUDWLYH PDQDJHPHQW ZLWK LQYHVWLJDWLRQ DQG WUHDWPHQW
IDFLOLWLHV
M
6SHFLILFDXGLRPHWULFWHVWVIRUQRLVHLQGXFHGKHDULQJORVV
N
5DGLRORJ\IRUSQHXPRFRQLRVLV
O
$FFLGHQW PDQDJHPHQW ² PLQRU PDMRU IDWDO DQG WKHLU
UHFRUGV
P
+HDOWKFKHFNXSFDPSV
Q
$ZDUHQHVVSURJUDPPHV
R
(QYLURQPHQWDOPRQLWRULQJ
S
6DIHW\GHSDUWPHQWDQGFRPPLWWHH
T
'LVSOD\RI0DWHULDO6DIHW\'DWD6KHHW06'6
U
+D]DUGV FRPPXQLFDWLRQ DQG FRQWUROV ² DODUPV GLVSOD\
ZDUQLQJVLJQVLQVWUXFWLRQV
V
2FFXSDWLRQDOKHDOWKVDIHW\WUDLQLQJDQGHGXFDWLRQ
W
+HDOWKDQGVDIHW\SROLF\
X
6DIHW\LQVSHFWLRQDXGLWVVXUYH\V
,W ZDV QRWHG WKDW WKH SRZHU JHQHUDWLQJ LQGXVWULHV DUH OLVWHG LQ WKH
LQGXVWULHV LQYROYLQJ KD]DUGRXV SURFHVVHV LQ WKH ILUVW VFKHGXOH XQGHU
VHFWLRQFERIWKH)DFWRULHV$FWDVDPHQGHGLQ7KHUHIRUH
WKH SURYLVLRQV DQG WKH UXOHV UHODWLQJ WR KD]DUGRXV SURFHVVHV DV
SUHVFULEHGXQGHU6HFWLRQ$+LQFKDSWHU,9$RIWKH)DFWRULHV$FWDUH
DSSOLFDEOH WR WKH FRDO ILUHG WKHUPDO SRZHU SODQWV 7KHVH SURYLVLRQV
LQFOXGH
$&RQVWLWXWLRQRIVLWHDSSUDLVDOFRPPLWWHHV
%&RPSXOVRU\GLVFORVXUHRILQIRUPDWLRQE\WKHRFFXSLHU
ϳϭ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&6SHFLILFUHVSRQVLELOLW\RIWKHRFFXSLHULQUHODWLRQWRKD]DUGRXV
SURFHVVHV
'3RZHURIFHQWUDOJRYHUQPHQWWRDSSRLQWLQTXLU\FRPPLWWHH
((PHUJHQF\VWDQGDUGV
) 3HUPLVVLEOH OLPLWV RI H[SRVXUH RI FKHPLFDOV DQG WR[LF
VXEVWDQFHV
*:RUNHUVSDUWLFLSDWLRQLQVDIHW\PDQDJHPHQW
+5LJKWRIZRUNHUVWRZDUQDERXWLPPLQHQWGDQJHU
(PHUJHQF\3UHSDUHGQHVV2Q6LWH2II6LWH(PHUJHQF\
3ODQV
$VUHTXLUHGXQGHUWKH)DFWRULHV$FWDQGDPHQGPHQWWKHUHIRUHDV
ZHOODVWKH(QYLURQPHQW3URWHFWLRQ$FWWKH&)733VSUHSDUHDQG
LPSOHPHQW 2QVLWH2IIVLWH HPHUJHQF\ SODQV 7KH 2II6LWH (PHUJHQF\
3ODQV DUH DOVR FRPPXQLFDWHG WR WKH GLVWULFW DXWKRULWLHV 7KH EDVLF
HOHPHQWVRIWKHHPHUJHQF\SODQDUHLGHQWLILFDWLRQRIKD]DUGVDQGKD]DUG
DUHDVWKHUROHVDQGUHVSRQVLELOLWLHVRIDXWKRULWLHVLQFDVHRIHPHUJHQFLHV
HPHUJHQF\PDQDJHPHQWV\VWHPPRFNGULOOVDQGHVVHQWLDOLQIRUPDWLRQ
6RFLDO:HOIDUH
7KHVRFLDOZHOIDUHPHDVXUHVDGRSWHGE\WKH&)733VDUHDVIROORZV
D &RPSHQVDWLRQ²LQFDVHRIGLVDELOLW\DQGGHDWK
E 6SHFLDOPHGLFDOOHDYHV²LQFDVHRIDFFLGHQWVDQGLQMXULHV
F )UHHDQGFRPSUHKHQVLYHPHGLFDOWUHDWPHQW
G 3HUIRUPDQFHEDVHGLQFHQWLYHV
H 5HFRJQLWLRQDQGDZDUGV
ϳϮ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&RQFOXVLRQ
$JHQFLHVDQG/HJDO3URYLVLRQV
7KH LVVXHV UHODWHG WR RFFXSDWLRQDO KHDOWK VDIHW\ DQG HQYLURQPHQW DUH
DGGUHVVHGE\WKHIROORZLQJPLQLVWULHVRIWKH*RYWRI,QGLD
•
0LQLVWU\ RI /DERXU DQG (PSOR\PHQW ² 7KURXJK WKH )DFWRULHV $FW
(PSOR\HHV 6WDWH ,QVXUDQFH $FW &RPSHQVDWLRQ $FW DQG WKH UXOHV
DQGUHJXODWLRQVDPHQGPHQWVPDGHWKHUHLQ
•
0LQLVWU\ RI (QYLURQPHQW DQG )RUHVWV ² 7KURXJK :DWHU 3UHYHQWLRQ
DQG &RQWURO RI 3ROOXWLRQ $FW $LU 3UHYHQWLRQ DQG &RQWURO RI
3ROOXWLRQ $FW (QYLURQPHQW 3URWHFWLRQ $FW DQG WKH UXOHV DQG
UHJXODWLRQVDPHQGPHQWVPDGHWKHUHLQ
•
0LQLVWU\ RI ,QGXVWU\ ² 7KURXJK %RLOHU $FW DQG WKH UXOHV DQG
UHJXODWLRQVDPHQGPHQWVPDGHWKHUHLQ
•
0LQLVWU\ RI 3RZHU 7KURXJK (OHFWULFLW\ $FW DQG WKH UXOHV DQG
UHJXODWLRQVDPHQGPHQWVPDGHWKHUHLQ
$GHTXDF\RI/HJDO3URYLVLRQV
7KH FRPPLWWHH H[DPLQHG WKH DSSOLFDELOLW\ DQG DGHTXDF\ RI OHJDO
SURYLVLRQVPDGHLQYDULRXVDFWVUXOHVDQGUHJXODWLRQVZLWKUHVSHFWWRWKH
LVVXHV LGHQWLILHG E\ WKH +RQ·EOH 6XSUHPH &RXUW DQG REVHUYHG WKH
IROORZLQJ
•
'XVW ² 7KH VWDQGDUGV IRU GXVW LQ DPELHQW HQYLURQPHQW DV ZHOO DV
ZRUN SODFH HQYLURQPHQW DUH DYDLODEOH DQG WKH FRQFHUQV DUH
DGHTXDWHO\ FRYHUHG ZLWK SURYLVLRQV XQGHU WKH (QYLURQPHQW
3URWHFWLRQ$FWDQGWKH)DFWRULHV$FW
ϳϯ
͵ǣ
Ǥͻ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
•
+HDW $OWKRXJK WKH LVVXH UHODWHG WR H[SRVXUH WR KHDW LV FRYHUHG
TXDOLWDWLYHO\ LQ WKH )DFWRULHV $FW WKH VWDQGDUGV DQG FULWHULD
GRFXPHQW RQ VWUHVV DQG VWUDLQ RI ZRUNHUV LQ &)733V DUH QRW
DYDLODEOH LQ ,QGLD +RZHYHU WKH PRGHO UXOHV WKH VWDWH )DFWRULHV
5XOHV XQGHU WKH )DFWRULHV $FW SUHVFULEHV WKH OLPLW RI
WHPSHUDWXUHDQGDLUPRYHPHQWYHQWLODWLRQXQGHUVHFWLRQ RIWKH
)DFWRULHV$FW
•
1RLVH²7KHSUREOHPUHODWHGWRQRLVHSROOXWLRQLVDGGUHVVHGLQWKH
VWDQGDUGV IRU DPELHQW QRLVH OHYHOV DV ZHOO DV ZRUN SODFH QRLVH
OHYHOV LV DGHTXDWHO\ FRYHUHG XQGHU WKH (QYLURQPHQW 3URWHFWLRQ
$FWDQGWKH)DFWRULHV$FW
•
9LEUDWLRQ ² 7KH YLEUDWLRQ VWDQGDUGV DUH \HW WR EH HVWDEOLVKHG LQ
,QGLD 7KLV JDS DUHD KDV QRW EHHQ FRYHUHG XQGHU DQ\ RI WKH OHJDO
SURYLVLRQV
•
5DGLDWLRQ ² 7KH GDWD DYDLODEOH VXJJHVWV WKDW UDGLDWLRQ LV QRW D
FRQFHUQLQWKH&)733V
,Q DGGLWLRQ WR WKH DERYH WKH JHQHUDO HQYLURQPHQWDO TXDOLW\ LV
DGHTXDWHO\ FRYHUHG XQGHU WKH (QYLURQPHQW 3URWHFWLRQ $FW 7KH VDIHW\
DVSHFWVRIZRUNHUVZLWKUHVSHFWWRDFFLGHQWVDQGLQMXULHVHWFDUHFRYHUHG
XQGHUGLIIHUHQW$FWVVXFKDVWKH)DFWRULHV$FW(PSOR\HHV6WDWH,QVXUDQFH
$FW&RPSHQVDWLRQ$FW7KHKDQGOLQJVWRUDJHGLVSRVDODQGPDQDJHPHQW
RIKD]DUGRXVZDVWHDUHFRYHUHGXQGHUWKH(QYLURQPHQW3URWHFWLRQ$FW
ϳϰ
Ͷǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&+$37(5
5(&200(1'$7,21
6SHFLILF
'XVW &RPSOLDQFH ZLWK WKH VWDQGDUGV VSHFLILHG XQGHU )DFWRULHV $FW DQG
(QYLURQPHQWDO 3URWHFWLRQ $FW VKRXOG EH DGKHUHG WR E\ HQJLQHHULQJ
FRQWUROV ,Q DGGLWLRQ WKH XVH RI 3HUVRQDO 3URWHFWLYH (TXLSPHQW E\
ZRUNHUV VKRXOG EH HQVXUHG LI UHTXLUHG 7KH 3HUVRQDO 3URWHFWLYH
(TXLSPHQW 33( VKRXOG EH VHOHFWHG GHSHQGLQJ RQ WKH GXVW
FKDUDFWHULVWLFVDQGWKHZRUNHUVVKRXOGEHWUDLQHGIRULWVSURSHUXVH
+HDW ,QGLDQ VWDQGDUGV IRU H[SRVXUH RI ZRUNHUV WR WKH KHDW DUH QRW
DYDLODEOH+RZHYHU$&*,+DQG,626WDQGDUGVDUHDYDLODEOH7KHVXEMHFW
KDVEHHQTXDOLWDWLYHO\FRYHUHGXQGHUWKH)DFWRULHV$FWEDVHGRQ$&*,+
*XLGHOLQHV 7KH VWDQGDUGV IRU H[SRVXUH RI ZRUNHUV WR KHDW VSHFLILF WR
,QGLDQ FRQGLWLRQV WR WURSLFDO HQYLURQPHQW PD\ EH GHYHORSHG XQGHU WKH
SURYLVLRQV RI WKH )DFWRULHV $FW 7KH SRZHU SODQWV PD\ HQVXUH UHJXODU
PDLQWHQDQFH RI WKH LQVXODWLRQV LQ ERLOHU DQG KHDWHG SLSHOLQHV DQG RWKHU
ORFDWLRQV3URSHUYHQWLODWLRQRIWKHDUHDPD\EHHQVXUHG
1RLVH 1RLVH LV D FULWLFDO SDUDPHWHU UHTXLULQJ VSHFLDO DWWHQWLRQ
&RPSOLDQFH ZLWK WKH QRLVH VWDQGDUGV VSHFLILHG XQGHU WKH )DFWRULHV $FW
VKRXOG EH HQVXUHG E\ HQJLQHHULQJ DQG DGPLQLVWUDWLYH FRQWUROV ,Q
DGGLWLRQ WKH XVH RI 33( (DU 0XIIV(DU 3OXJV E\ ZRUNHUV LQ KLJK QRLVH
ϳϱ
Ͷǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
DUHD VKRXOG EH HQVXUHG LI UHTXLUHG 7KH 33( VKRXOG EH VHOHFWHG
GHSHQGLQJRQWKHQRLVHFKDUDFWHULVWLFVRIWKHZRUNSODFH
9LEUDWLRQ,QGLDQVWDQGDUGVIRUH[SRVXUHRIZRUNHUVWRWKHYLEUDWLRQDUH
QRW DYDLODEOH +RZHYHU $&*,+ DQG ,62 6WDQGDUGV IRU KDQG DUP
YLEUDWLRQ DV ZHOO DV ZKROH ERG\ YLEUDWLRQV DUH DYDLODEOH UHIHU WR 3DJH
7KHVWDQGDUGVIRUH[SRVXUHRIZRUNHUVWRKDQGDUPDQGZKROHERG\
YLEUDWLRQV VSHFLILF WR ,QGLDQ FRQWH[W PD\ EH GHYHORSHG XQGHU WKH
SURYLVLRQVRIWKH)DFWRULHV$FW
5DGLDWLRQ %DVHG RQ GDWD DYDLODEOH RQ UDGLRDFWLYLW\ RI FRDO DQG DVK WKH
UDGLDWLRQ KD]DUG LV QRW VLJQLILFDQW LQ ,QGLDQ FRDOV +RZHYHU IXUWKHU GDWD
QHHGVWREHJHQHUDWHGRQUDGLRDFWLYLW\OHYHOVLQFRDOLQFOXGLQJLPSRUWHG
FRDOXVHGLQSRZHUSODQWVDQGDVKJHQHUDWHG
*HQHUDO
•
8VH RI +D]DUGRXV 0DWHULDO IRU ,QVXODWLRQ &HUWDLQ PDWHULDOV VXFK DV
DVEHVWRV JODVV ZRRO HWF DUH XVHG IRU LQVXODWLRQ 7KHVH PDWHULDOV DUH
KLJKO\ GDQJHURXV WR KXPDQ KHDOWK LI LQKDOHG RU LI FRQWDFWHG ZLWK WKH
H\HVNLQ VXUIDFH :KLOH KDQGOLQJ VXFK PDWHULDOV WKH 33( VKRXOG EH
SURYLGHGWRWKHZRUNHUVDVZHOODVSURSHUGLVSRVDORIZDVWHDVEHVWRV
DQG JODVV ZRRO VKRXOG EH HQVXUHG 1RZDGD\V VDIHU VXEVWLWXWHV VXFK
DV SDUDPLG SRO\YLQ\O DOFRKRO 39$ FHOOXORVH SRO\DFU\ORQLWULOH
JODVVILEUHVJUDSKLWHDUHDYDLODEOHWKHXVHRIZKLFKPD\EHH[SORUHG
•
&RPSOLDQFH ZLWK SURYLVLRQV RI WKH (QYLURQPHQW 3URWHFWLRQ $FW DQG
LWVDPHQGPHQWVIURPWLPHWRWLPHDSSOLFDEOHIRUWKHSRZHUSODQWVZLWK
UHVSHFWWRHPLVVLRQDQGGLVFKDUJHDVKXWLOLVDWLRQDQGKD]DUGRXVZDVWH
PDQDJHPHQW VKRXOG EH HQVXUHG WR SURWHFW WKH DPELHQW HQYLURQPHQW
DV ZHOO DV PDLQWDLQ VDIH DQG KHDOWK\ ZRUNLQJ FRQGLWLRQV IRU WKH
ZRUNHUV
ϳϲ
Ͷǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
•
7KH JHQHUDWHG IO\ DVK QHHG WR EH XWLOL]HG DV SHU WKH &3&% DQQXDO
LPSOHPHQWDWLRQ UHSRUW RQ IO\ DVK XWLOL]DWLRQ WKDW XWLOL]DWLRQWREHDFKLHYHGE\WKHSRZHUSODQWVZLWKLQ\HDUVIURPWKH
GDWHRIQRWLILFDWLRQUHIHUWR7DEOHSDJH)RUQHZ&)733VWKH
IO\ DVK XWLOL]DWLRQ QHHGV WR EH UHJXODWHG DV SHU WKH VFKHGXOH JLYHQ LQ
7DEOH
•
,W LV GHVLUDEOH WKDW WKH FRDO KDQGOLQJ IDFLOLWLHV DUH PHFKDQL]HG DQG
DXWRPDWHGWRWKHH[WHQWSRVVLEOH
•
2FFXSDWLRQDO KHDOWK VHUYLFHV VKRXOG EH SURYLGHG IRU ZLGH UDQJH
EHQHILW WR WKH ZRUNHUV %URDGO\ LW VKRXOG FRQWDLQ WKH IDFLOLWLHV IRU
RFFXSDWLRQDO KHDOWK GHOLYHU\ V\VWHP ZLWK WUDLQHG PDQSRZHU DQG
LQIUDVWUXFWXUH LQFOXGLQJ LQYHVWLJDWLRQDO IDFLOLWLHV HQYLURQPHQWDO
DVVHVVPHQW HYDOXDWLRQ RI RFFXSDWLRQDO KHDOWK VWDWXV DQG ILUVW DLG
WUDLQLQJ RI WKH ZRUNHUV RQ UHJXODU EDVLV 7KHVH VHUYLFHV VKRXOG EH
LQGHSHQGHQW DQG VHSDUDWH IURP KRVSLWDO VHUYLFHV FXUDWLYH VHUYLFH
EXWVKRXOGIXQFWLRQLQOLDLVRQZLWKWKHFXUDWLYHVHUYLFH
•
3HULRGLFDZDUHQHVVSURJUDPPHVUHJDUGLQJWKHKHDOWKDQGVDIHW\ZLWK
DFWLYHLQYROYHPHQWRIWKHZRUNHUVVKRXOGEHRUJDQL]HGFRYHULQJHDFK
LQGLYLGXDO ZLWK D PLQLPXP DQQXDO DYHUDJH GXUDWLRQ RI KRXUV SHU
ZRUNHU 5HJXODU FRPPXQLW\ OHYHO DZDUHQHVV SURJUDPPHV PD\ EH
RUJDQL]HG LQ WKH YLFLQLW\ RI WKH SODQW IRU WKH IDPLO\ PHPEHUV RI WKH
ZRUNHUV
•
3HULRGLFPHGLFDOH[DPLQDWLRQ30(DVUHTXLUHGXQGHUWKH)DFWRULHV
$FW VKRXOG EH XQGHUWDNHQ +RZHYHU WKH LQYHVWLJDWLRQV SHUIRUPHG
XQGHUWKH30(VKRXOGEHUHOHYDQWWRWKHMREH[SRVXUHV6LQFHFRDODVK
KDQGOLQJ ZRUNHUV DUH SURQH WR GXVW H[SRVXUH UHODWHG GLVHDVHV GXH
DWWHQWLRQLVUHTXLUHGWRWKRVHZRUNHUV,QFDVHRIQHHGWKHIUHTXHQF\
RI30(PD\EHVFKHGXOHGEDVHGRQREVHUYDWLRQVRIWKHKHDOWKFKHFN
ϳϳ
Ͷǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
XSLQIRUPDWLRQ3URYLGLQJ33(DQGUHORFDWLQJRIMREIRUWKRVHZRUNHUV
PD\DOVREHFRQVLGHUHG
•
$V SHU UHFRPPHQGDWLRQ RI WKH )DFWRULHV $FW WKH ZRUNHUV QHHG WR EH
H[DPLQHG UDGLRORJLFDOO\ FKHVW ;UD\ RQ \HDUO\ EDVLV +RZHYHU LQ
RUGHU WR DYRLG XQQHFHVVDU\ H[SRVXUH RI WKH KXPDQ ERG\ WR WKH
UDGLDWLRQ WKH UHJXODU \HDUO\ FKHVW ;UD\ LV QRW UHFRPPHQGHG XQOHVV
XUJHQWDQGHVVHQWLDO &RQVLGHULQJWKHODWHQF\SHULRGRIGHYHORSPHQW
RI SQHXPRFRQLRVLV LW LV UHFRPPHQGHG WR XQGHUJR FKHVW ;UD\ HYHU\
WZR \HDUV IRU LQLWLDO \HDUV DQG EDVHG RQ WKH SURJUHVVLRQ UH
VFKHGXOLQJ PD\ EH DGRSWHG $IWHU \HDUV LW VKRXOG EH GRQH RQ
\HDUO\ EDVLV RU HDUOLHU GHSHQGLQJ RQ WKH GHYHORSPHQW DQGRU
SURJUHVVLRQRIWKHGLVHDVH
•
+HDOWK UHFRUGV VKRXOG EH PDLQWDLQHG LQ HDVLO\ UHWULHYDEOH PDQQHU
SUHIHUDEO\LQHOHFWURQLFIRUP7KHSURYLVLRQVKRXOGEHPDGHWRUHFDOO
WKH ZRUNHU DV DQG ZKHQ KLV RU KHU FKHFN XS LV GXH 3UHSODFHPHQW
PHGLFDOH[DPLQDWLRQDQGSURSHUGRFXPHQWDWLRQRIUHFRUGVVKRXOGEH
PDQGDWRU\
•
$ FRPSUHKHQVLYH GRFXPHQW RQ HQYLURQPHQW KHDOWK DQG VDIHW\
VSHFLILF WR FRDO EDVHG WKHUPDO SRZHU SURMHFWV VKRXOG EH IUDPHG ,W
VKRXOG FRYHU WKH OHJDO SURYLVLRQV PDQDJHPHQW V\VWHP EHVW
SUDFWLFHVVDIHRSHUDWLQJSURFHGXUHVHWFIRUYDULRXVDUHDVRIWKHUPDO
SRZHU SODQWV 7KLV ZLOO VHUYH DV D UHIHUHQFH GRFXPHQW IRU HIIHFWLYH
LPSOHPHQWDWLRQRIWKHSURYLVLRQV
•
$OO &)733V VKRXOG KDYH HQYLURQPHQWDO DQG RFFXSDWLRQDO KHDOWK DQG
VDIHW\ PDQDJHPHQW V\VWHPV LQ SODFH ZKLFK DUH DXGLWDEOH E\ WKLUG
SDUW\DSSURYHGE\WKH*RYWRI,QGLD0LQLVWU\RI3RZHU3DUWLFLSDWRU\
PDQDJHPHQW UHJDUGLQJ KHDOWK DQG VDIHW\ DW SODQW OHYHO PD\ EH
HQVXUHG
ϳϴ
Ͷǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
•
7KHRFFXSLHURIWKH&)733VKDOOEHUHVSRQVLEOHIRUWKHFRPSOLDQFHRI
SURYLVLRQVRIWKH)DFWRULHV·$FWIRUFDVXDOFRQWUDFWXDOODERXURQKHDOWK
DQG VDIHW\ LVVXHV ,Q FDVH RI ZRPHQ ZRUNHUV WKH SURYLVLRQV RI WKH
)DFWRULHV·$FWDVDSSOLFDEOHVKDOOEHJLYHQDWWHQWLRQ
7KHVWXGLHV LQUHVSHFWRIKHDOWKDQGVDIHW\ ULVNDVVHVVPHQWLQFRDO
ILUHGWKHUPDOSRZHUSODQWVDUHODFNLQJLQRXUFRXQWU\$VVXJJHVWHGLQWKH
HDUOLHU ILHOG YLVLW UHSRUW RI WKH 1,2+ VFLHQWLVWV WKH DXWKRULWLHV PD\ JHW
H[HFXWHG EURDG EDVHG VWXG\ RQ FRPSUHKHQVLYH KHDOWK ULVN DVVHVVPHQW
7KLV ZLOO KHOS EXLOGLQJ WKH GDWDEDVH IRU FRPSDULVRQ HYDOXDWLRQ DQG
SROLF\ IRUPXODWLRQ IRU LPSURYHPHQW RI WKH KHDOWK DQG VDIHW\ RI ZRUNHUV
DQGWKHFRPPXQLW\
7KH UHSRUW LQFOXGHV VHYHUDO UHFRPPHQGDWLRQV WR LPSURYH WKH
ZRUNLQJFRQGLWLRQVLQFRDOILUHGWKHUPDOSRZHUSODQWV$QHHGZDVIHOWIRU
D VXLWDEOH DGPLQLVWUDWLYH PHFKDQLVP WR HQVXUH VWULFW FRPSOLDQFH DQG
FRPSUHKHQVLYHO\PRQLWRULPSOHPHQWDWLRQRIWKHSURYLVLRQVUHJXODWLRQVRI
KHDOWKDQGVDIHW\RIWKHZRUNHUVLQFOXGLQJFDVXDODQGRUFRQWUDFWXDODQG
ZRPHQZRUNHUV,QYLHZRIWKHDERYHWKHFRPPLWWHHVWURQJO\RSLQHVWKDW
WKH *RYW RI ,QGLD PD\ FRQVLGHU LQ FRQVWLWXWLQJ DQ ([HFXWLYH6WDQGLQJ
&RPPLWWHH ZLWK LQGHSHQGHQW IXQFWLRQ DQG DXWKRULW\ RQ HQYLURQPHQW
KHDOWK DQG VDIHW\ LQ FRDO EDVHG WKHUPDO SRZHU SODQWV ,W LV VXJJHVWHG WR
VWUHQJWKHQ WKH H[LVWLQJ HPHUJHQF\ SUHSDUHGQHVV DQG UHVSRQVH SODQ RI
WKH&)733VLUUHVSHFWLYHRIVL]HSRZHUJHQHUDWLRQFDSDFLW\DQGORFDWLRQ
7KH([HFXWLYH6WDQGLQJ&RPPLWWHHZLOODOVRRYHUVHHWKHLPSOHPHQWDWLRQ
RIWKHVXJJHVWLRQVJLYHQSHULRGLFDOO\UHYLHZWKHHQYLURQPHQWKHDOWKDQG
VDIHW\ SHUIRUPDQFH RI WKH FRDOILUHG WKHUPDO SRZHU SODQWV DQG PDNH
VXJJHVWLRQIRUFRQWLQXDOLPSURYHPHQW
ϳϵ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
5()(5(1&(6
%D[WHU 06 7HFKQRORJLFDOO\ (QKDQFHG 5DGLRDFWLYLW\ $Q 2YHUYLHZ - (QYLURQ
5DG
%HP + :LHF]RUNRZVNL 3 %XG]DQRZVNL 0 (YDOXDWLRQ RI WHFKQRORJLFDOO\
HQKDQFHGQDWXUDOUDGLDWLRQQHDUWKHFRDOILUHGSRZHUSODQWVLQWKH/RG]UHJLRQ
RI3RODQG-(QYLURQ5DG
&DQDGLDQ &HQWHU IRU 2FFXSDWLRQDO +HDOWK 6DIHW\ 9LEUDWLRQ 0HDVXUHPHQW
&RQWURODQG6WDQGDUGVSS
&HQWUDO(OHFWULFLW\$XWKRULW\1HZ'HOKL3RZHU6HFWRUDWD*ODQFH$//,1',$
0DUFKSS
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3%&0LQLVWU\ RI (QYLURQPHQW )RUHVWV
0R() *XLGHOLQHV IRU WUDQVSRUWDWLRQ RI +D]DUGRXV :DVWH +D]DUGRXV :DVWH
0DQDJHPHQW6HULHV+$=:$06
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% $PELHQW $LU 4XDOLW\ ZLWK UHVSHFW WR
'XVWSDUWLFOHVYLGH1RWLILFDWLRQ1R%3&,,1RYHPEHU
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% 3URWRFRO IRU 3HUIRUPDQFH (YDOXDWLRQ
DQG 0RQLWRULQJ RI WKH &RPPRQ +D]DUGRXV :DVWH 7UHDWPHQW 6WRUDJH DQG
'LVSRVDO )DFLOLWLHV LQFOXGLQJ &RPPRQ +D]DUGRXV :DVWH ,QFLQHUDWRUV
+D]DUGRXV:DVWH0DQDJHPHQW6HULHV+$=:$062FWREHU
&HQWUDO3ROOXWLRQ&RQWURO%RDUG&3&%(PLVVLRQ1RUPVIRU3DUWLFXODWH0DWWHU
IRU7KHUPDO3RZHU3ODQWVYLGH1RWLILFDWLRQ*65($XJXVW
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% )O\DVK 8WLOL]DWLRQ $QQXDO
,PSOHPHQWDWLRQ5HSRUW
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% 0LQLVWU\ RI (QYLURQPHQW )RUHVWV
0R() +D]DUGRXV :DVWH 0DQDJHPHQW 6HULHV +$=:$06 -XQH
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% 1DWLRQDO $PELHQW $LU 4XDOLW\
6WDQGDUGVKWWSFSFEQLFLQ1DWLRQDOB$PELHQWB$LUB4XDOLW\B6WDQGDUGVSKS
ϴϬ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
&HQWUDO 3ROOXWLRQ &RQWURO %RDUG &3&% 3DUW $ (IIOXHQWV QRWLILHG YLGH *65
(0D\
&RDOLQ,QGLD&XUUHQWVWDWXVDQGRXWORRN3DQRUDPD,QQRYDWLRQ(QHUJ\
(QYLURQPHQWSS
GRFVWRF 'RFXPHQWV RI UHVRXUFHV IRU VPDOO EXVLQHVV RI SURIHVVLRQDOV 6DQWD
0RQLFD&$SS
(OHFWULFLW\ VHFWRU LQ ,QGLD )URP :LNLSHGLD WKH IUHH HQF\FORSHGLD 0D\
SS
(XURSHDQ'LUHFWLYH&(7KHPLQLPXPKHDOWKDQGVDIHW\UHTXLUHPHQWV
UHJDUGLQJ WKH H[SRVXUH RI ZRUNHUV WR WKH ULVNV DULVLQJ IURP SK\VLFDO DJHQWV
YLEUDWLRQ,626WDQGDUG,626WDQGDUG
*D]HWWHRI,QGLD([WUD1R1RY
*X + =KHQJ 5 =KDQJ : :X = DQG .RQJ / 1DWXUDO UDGLRDFWLYH OHYHO LQ FRDO
DQGDVKDQGEXLOGLQJPDWHULDOSURGXFWVIURPFRDOILUHGSRZHUSODQWVLQ%HLMLQJ
5DGLDW3URW²
+D]DUGRXV :DVWHV 0DQDJHPHQW +DQGOLQJ DQG 7UDQVERXQGDU\ 0RYHPHQW
5XOHVDVSHU6FKHGXOH,
,OOLQRLV 'HSDUWPHQW RI 3XEOLF +HDOWK *XLGHOLQHV IRU ,QGRRU $LU 4XDOLW\
(QYLURQPHQWDO+HDOWKSS
,QGLD·V&RDO&RQVXPSWLRQ&RQWLQXHVWR([SDQG2FWSS
,QGLDQ3RZHU6HFWRU$UWLFOHRQ3RZHU6HFWRUSS
,QGR$VLDQ 1HZV 6HUYLFHV ,QGLD HQYLVDJHV DERXW 0: SRZHU
UHTXLUHPHQWE\-XO\SS
,QWHUQDWLRQDO $WRPLF (QHUJ\ $JHQF\ ,$($ 9LHQQD %DVLF 6DIHW\ 6WDQGDUGV
%666DIHW\6HULHVQR,QWHUQDWLRQDO%DVLF6DIHW\6WDQGDUGVIRU3URWHFWLRQ
DJDLQVW ,RQL]LQJ 5DGLDWLRQ DQG IRU WKH 6DIHW\ RI 5DGLDWLRQ 6RXUFHV SS
-RLQWO\VSRQVRUHGE\)$2,$($,/22(&'1($3$+2:+2
,QWHUQDWLRQDO&RPPLVVLRQRQ5DGLRORJLFDO3URWHFWLRQ,&533XEOLFDWLRQ7KH
5HFRPPHQGDWLRQV RI WKH (G - 9DOHQWLQ (OVHYLHU SXEOLFDWLRQ SS
,QWHUQDWLRQDO &RPPLVVLRQ RQ 5DGLRORJLFDO 3URWHFWLRQ ,&53 3XEOLFDWLRQ 3URWHFWLRQDJDLQVW5DGRQDWKRPHDQGDWZRUN
ϴϭ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
,62 +RW HQYLURQPHQW ² HVWLPDWLRQ RI WKH KHDW VWUHVV RQ ZRUNLQJ PDQ
EDVHGRQWKH:%*7LQGH[ZHWEXOEJOREHWHPSHUDWXUH*HQHYD,QWHUQDWLRQDO
6WDQGDUGV2UJDQL]DWLRQ
.DQW . DQG &KDNDUYDUWL 6. 5DGRQ PRQLWRULQJ LQ JDV WXUELQH DQG WKHUPDO
SRZHUVWDWLRQ$FRPSDUDWLYHVWXG\,UDQ-5DGLDW5HV²
.XPDU5.XPDU$6HQJXSWD'3UDVDG56WXG\RIUDGRQDQGLWVGDXJKWHUVLQ
WKHUPDOSRZHUSODQWV5DGLDWLRQ0HDVXUHPHQWV²
.ZDQ+RRQJ 1J WK²QG 2FWREHU 1RQ,RQL]LQJ 5DGLDWLRQV 6RXUFHV
%LRORJLFDO (IIHFWV (PLVVLRQV DQG ([SRVXUHV 3URFHHGLQJV RI WKH ,QWHUQDWLRQDO
&RQIHUHQFHRQ1RQ,RQL]LQJ5DGLDWLRQDW81,7(1,&1,5(OHFWURPDJQHWLF
)LHOGVDQG2XU+HDOWKSS
/DOLW %< 5DPDFKDQGUDQ 79 DQG 0LVKUD 8& 5DGLDWLRQ H[SRVXUHV GXH WR FRDO
ILUHG SRZHU VWDWLRQV LQ LQGLD 5DGLDWLRQ 3URWHFWLRQ 'RVLPHWU\ /X;-LD;DQG:DQJ)1DWXUDOUDGLRDFWLYLW\RIFRDODQGLWVE\SURGXFWVLQWKH
%DRMLFRDOILUHGSRZHUSODQW&KLQD&855(176&,(1&(
0DQGDO $ DQG 6HQJXSWD ' 5DGLRQXFOLGH DQG WUDFH HOHPHQW FRQWDPLQDWLRQ
DURXQG .RODJKDW 7KHUPDO 3RZHU 6WDWLRQ :HVW %HQJDO ² (QYLURQPHQWDO
LPSOLFDWLRQVFXUUHQWVFLHQFH
0LQLVWU\RI(QYLURQPHQW)RUHVWV0R()*RYWRI,QGLD$PELHQW$LU4XDOLW\
ZLWKUHVSHFWWR1RLVH1RWLILFDWLRQ6HSWHPEHU
0LQLVWU\RI(QYLURQPHQW)RUHVWV0R()*RYWRI,QGLD$PELHQW$LU4XDOLW\
ZLWKUHVSHFWWR'XVWSDUWLFOHV1RWLILFDWLRQ*65(
0LVKUD8&(QYLURQPHQWDOLPSDFWRIFRDOLQGXVWU\DQGWKHUPDOSRZHUSODQWVLQ
,QGLD-(QYLURQ5DGLRDFW²
0R() 'LVSRVDO RI 0XQLFLSDO 6ROLG :DVWH 0R() QRWLILFDWLRQ 6 2 (
VFKHGXOH,,,,,DQG,9RI5XOHDQGDQG6HSW
0R()*RYWRI,QGLDKDVVWLSXODWHGQRUPVIRU$PELHQW$LU4XDOLW\ZLWKUHVSHFW
WR'XVWSDUWLFOHVYLGHQRWLILFDWLRQYLGH*65(GDWHG
0R() 1HZ 'HOKL 1RLVH 3ROOXWLRQ /DZ 7KH (QYLURQPHQWDO
'HIHQGHU·V2IILFH)DFW6KHHW0DUFK
ϴϮ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
1DJ 3. &ULWHULD IRU UHFRPPHQGHG VWDQGDUG IRU KXPDQ H[SRVXUH WR
HQYLURQPHQWDO KHDW 0R() DGKRF UHSRUW 1R5( 1,2+ $KPHGDEDG
SS
2FFXSDWLRQDO+\JLHQH5HSRUW+HDW6WUHVV-XQHSS
3DSDVWHIDQRX & (VFDSLQJ UDGLRDFWLYLW\ IURP FRDOILUHG SRZHU SODQWV &33V
GXHWRFRDOEXUQLQJDQGWKHDVVRFLDWHGKD]DUGVDUHYLHZ-(QYLURQ5DG
3DUDPL 9. 6DKRR 6. <RQHKDUD + 7DNHGD 6 DQG 4XLULW // $FFXUDWH
GHWHUPLQDWLRQ RI QDWXUDOO\ RFFXUULQJ UDGLRQXFOLGHV LQ 3KLOLSSLQH FRDOILUHG
WKHUPDOSRZHUSODQWVXVLQJLQGXFWLYHO\FRXSOHGSODVPDPDVVVSHFWURPHWU\DQG
ȖVSHFWURVFRS\0LFURFKHPLFDO-RXUQDO
6LQJK 6 DQG 6LQJK - 5DGRQ PRQLWRULQJ LQ D WKHUPDO SRZHU SODQW 5DGLDWLRQ
0HDVXUHPHQWV²
7HFKQLFDO(,$*XLGDQFH0DQXDOIRU7KHUPDO3RZHU3ODQWVSUHSDUHGIRU0R()
*RYWRI,QGLDE\,/)6(FRVPDUW/LPLWHG+\GHUDEDG6HSWHPEHUSS
7KH%XUHDXRI,QGLDQVWDQGDUGV
7KH)DFWRULHV$FW
7KH)DFWRU\$PHQGPHQW%LOO
7VR 0<: DQG /HXQJ -.& 5DGLRORJLFDO LPSDFW RI FRDO DVK IURP WKH SRZHU
SODQWVLQ+RQJ.RQJ-(QYLURQ5DGLRDFW²
8QLWHG 6WDWH 'HSDUWPHQW RI /DERXU 2FFXSDWLRQDO 6DIHW\ +HDOWK $VVRFLDWLRQ
7HFKQLFDO0DQXDO7('(IIHFWLYH'DWH-DQ
8QLWHG 6WDWHV (QHUJ\ ,QIRUPDWLRQ $GPLQLVWUDWLRQ ,QWHUQDWLRQDO (QHUJ\
2XWORRN
YDQGH*UDDI-06KHOO*OREDO6ROXWLRQ1LJHULD/1*6L[3URMHFW5HSRUW2*
%DVLVRI'HVLJQ5HYLVLRQSS
:+2$LUTXDOLW\JXLGHOLQHVIRUSDUWLFXODWHPDWWHUR]RQHQLWURJHQGLR[LGHDQG
VXOIXUGLR[LGH*OREDOXSGDWHSS
:RUOG %DQN *URXS (QYLURQPHQWDO +HDOWK DQG 6DIHW\ *XLGHOLQHV 7+(50$/
32:(5 3/$176 ,QWHUQDWLRQDO )LQDQFH &RUSRUDWLRQ 'HFHPEHU SS
:RUOG%DQN*URXS3ROOXWLRQ3UHYHQWLRQDQG$EDWHPHQW+DQGERRN
ϴϯ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
:RUOG&RDO,QVWLWXWH:&,7KH&RDO5HVRXUFH$&RPSUHKHQVLYH2YHUYLHZRI
&RDO-XQHSS
:RUOG +HDOWK 2UJDQL]DWLRQ :+2 -XO\ 7KHUPDO 3RZHU *XLGHOLQHV IRU
1HZ3ODQWV3ROOXWLRQ3UHYHQWLRQDQG$EDWHPHQW+DQGERRNSS
<X 4 ,QYHVWLJDWLRQ RQ WKH UDGLRDFWLYLW\ FRQFHQWUDWLRQ RI FRDO DQG DVK IURP
6KDQJKDLFRDOILUHGSRZHUSODQW&KLQ-5DGLRO0HG3URW²
=LHOLQVNL 5$ DQG -DPHV 5 %XGDKQ 5DGLRQXFOLGHV LQ IO\ DVK DQG ERWWRP DVK
LPSURYHG FKDUDFWHUL]DWLRQ EDVHG RQ UDGLRJUDSK\ DQG ORZ HQHUJ\ JDPPDUD\
VSHFWURPHWU\)XHO
84
Annexure 1: Minutes of the Meetings
85
Annexure 1: Minutes of the Meetings
86
Annexure 1: Minutes of the Meetings
87
Annexure 1: Minutes of the Meetings
88
Annexure 1: Minutes of the Meetings
89
Annexure 1: Minutes of the Meetings
90
Annexure 1: Minutes of the Meetings
91
Annexure 1: Minutes of the Meetings
92
Annexure 1: Minutes of the Meetings
93
Annexure 1: Minutes of the Meetings
94
Annexure 1: Minutes of the Meetings
95
Annexure 1: Minutes of the Meetings
96
Annexure 1: Minutes of the Meetings
97
Annexure 1: Minutes of the Meetings
98
Annexure 1: Minutes of the Meetings
99
Annexure 1: Minutes of the Meetings
100
Annexure 1: Minutes of the Meetings
101
Annexure 1: Minutes of the Meetings
102
Annexure 1: Minutes of the Meetings
103
Annexure 1: Minutes of the Meetings
104
Annexure 1: Minutes of the Meetings
105
Annexure 1: Minutes of the Meetings
106
Annexure 1: Minutes of the Meetings
107
Annexure 1: Minutes of the Meetings
108
Annexure 1: Minutes of the Meetings
109
Annexure 1: Minutes of the Meetings
ϭϭϬ
ʹǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
$11(;85(
6(/(&7('/,672)%,667$1'$5'6
7KH%XUHDXRI,QGLDQ VWDQGDUGV%,6KDVSXEOLVKHGSURGXFWDQGSURFHVV
VWDQGDUGVLQFOXGLQJ2FFXSDWLRQDO6DIHW\+HDOWKDQG&KHPLFDO+D]DUGV
DQG (QYLURQPHQW 3URWHFWLRQ DQG :DVWH 0DQDJHPHQW $ VHOHFWHG OLVW RI
VWDQGDUGV GRFXPHQWV LV JLYHQ EHORZ 7KH FRQFHUQHG LQGXVWU\ PD\
DSSURDFK%,6IRUWKHGRFXPHQWV
,6QXPEHU
7LWOH
'2&
5HDIILUP
GDWH
QXPEHU
,6
0HWKRGVIRUFRPSXWDWLRQRIIUHTXHQF\DQG
)HE
VHYHULW\UDWHVIRULQGXVWULDOLQMXULHVDQG
FODVVLILFDWLRQRILQGXVWULDODFFLGHQWVILUVW
UHYLVLRQ
,6 ,QGXVWULDOSODQWOD\RXW&RGHRIVDIH
SUDFWLFH)LUVW5HYLVLRQ
,6 6SHFLILFDWLRQIRU$FFLGHQWVSUHYHQWLRQWDJV
,63DUW
)HE
6DIHW\FRGHIRUSODQWUDLOZD\V3DUW/D\RXW )HE
ϭϭϭ
ʹǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
,63DUW
6DIHW\FRGHIRUSODQWUDLOZD\V3DUW
/RFRPRWLYHVZDJRQVDQGWKHLUPRYHPHQWV
,6 &RGHRISUDFWLFHIRUZRUNHQYLURQPHQWDO
)HE
)HE
PRQLWRULQJDLUERUQHFRQWDPLQDQWV
,6
(UJRQRPLFSULQFLSOHVLQWKHGHVLJQRIZRUN )HE
V\VWHPV
,6
*XLGHIRUVHOHFWLRQIRULQGXVWULDOVDIHW\
HTXLSPHQWIRUSURWHFWLRQRIIRRWDQGOHJ
,6
+D]DUGLGHQWLILFDWLRQDQGULVNDQDO\VLV
&RGHRISUDFWLFH
,6
0DQDJLQJ(QYLURQPHQW2FFXSDWLRQDO
+HDOWKDQG6DIHW\OHJDOFRPSOLDQFH²
)HE
5HTXLUHPHQWVRIJRRGSUDFWLFH
,6
2FFXSDWLRQDOKHDOWKDQGVDIHW\
PDQDJHPHQWV\VWHPV5HTXLUHPHQWVZLWK
JXLGDQFHIRUXVHILUVWUHYLVLRQ
'2&&+'
2FFXSDWLRQDOVDIHW\DQGKHDOWKDXGLW&RGH &
RISUDFWLFHILUVWUHYLVLRQRI,6
,6 &RGHRIVDIHW\IRUVXOSKXULFDFLG
)HE
,6 &RGHRIVDIHW\IRUFKORULQH
)HE
,6 &RGHRIVDIHW\IRUFDVWLFVRGD
)HE
,6 &RGHRIVDIHW\IRUPHUFXU\
)HE
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
ϭϭϮ
ʹǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
3DUW'XVWIDOO
ILUVWUHYLVLRQ
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW6XOSKXUGLR[LGHILUVWUHYLVLRQ
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW5DGLRDFWLYLW\SDUWLFXODWHLQDLU
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW6XVSHQGHGSDUWLFXODWHPDWWHUILUVW
6HS
0D\
-DQ
UHYLVLRQ
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW6DPSOLQJRIJDVHRXVSROOXWDQWV
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW2[LGHVRI1LWURJHQILUVWUHYLVLRQ
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW&DUERQPRQR[LGHILUVWUHYLVLRQ
,63DUW
0HWKRGVIRUPHDVXUHPHQWRIDLUSROOXWLRQ
3DUW*XLGHOLQHVIRUSODQQLQJWKH
0D\
0D\
-DQ
VDPSOLQJRIDWPRVSKHUHVHFRQGUHYLVLRQ
,63DUW
0HWKRGVRIPHDVXUHPHQWRIDLUSROOXWLRQ²
3DUW5HVSLUDEOHVXVSHQGHGSDUWLFXODWH
PDWWHU30&\FORQLF)ORZWHFKQLTXH
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 0D\
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
6DPSOLQJILUVWUHYLVLRQ
ϭϭϯ
ʹǣ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 0D\
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
3UHFLVLRQDQGDFFXUDF\WHVWILUVWUHYLVLRQ
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 0D\
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
7RWDOUHVLGXHWRWDOVROLGVGLVVROYHGDQG
VXVSHQGHGILUVWUHYLVLRQ
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 6HS
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
)LOWHUDEOHUHVLGXHWRWDOGLVVROYHGVROLGV
ILUVWUHYLVLRQ
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 6HS
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
1RQILOWHUDEOHUHVLGXHWRWDOVXVSHQGHG
VROLGVILUVWUHYLVLRQ
,63DUW
0HWKRGVRIVDPSOLQJDQGWHVWSK\VLFDODQG 0D\
FKHPLFDOIRUZDWHUDQGZDVWHZDWHU3DUW
2LODQGJUHDVHILUVWUHYLVLRQ
,6 %LRDVVD\PHWKRGVIRUHYDOXDWLQJDFXWH
0D\
WR[LFLW\RILQGXVWULDOHIIOXHQWVDQG
ZDVWHZDWHUV
,6
*XLGHOLQHVIRUXWLOL]DWLRQDQGGLVSRVDORIIO\ 0D\
DVK
ANNEXURE 3
REPORT OF THE VISIT BY NIOH SCIENTISTS
(23-26 FEBRUARY 2009)
RIHAND SUPER THERMAL POWER PROJECT, Rihand, UP
(NATIONAL THERMAL POWER CORPORATION)
NATIONAL INSTITUTE OF OCCUPATIONAL HEALTH
(INDIAN COUNCIL OF MEDICAL RESEARCH)
AHMEDABAD 380 016
1
BACKGROUND
A Writ Petition (Civil) No. 79 was listed before a Bench Presided over by Hon’ble
Chief Justice of India on 16.1.2008 has sought directions from Court for nine (9)
points as raised (as per letter of Sri A Sharan, Additional Solicitor General, Govt.
of India dated 17th January 2008 addressed to Shri A Razdan, Secretary, Ministry
of Power, Govt. of India) in the Writ regarding the persons working in Coal Fired
Power Plants. It was further stated out of nine (9) points seven (7) points are part
of various statutes of different Acts promulgated by Govt. of India from time to
time. The following two points needs consideration and entrusted to National
Institute of Occupational Health, Ahmedabad, for conducting survey / study for
effective implementation of health and safety norms:1.
Safe methods be followed for the handling, collection and disposal of
hazardous wastes to be recommended by NIOH.
2.
Appointment of a Committee of experts by NIOH including therein
Trade Union representatives and Health and Safety NGO’s to look into
the issue of Health and Safety of workers and make recommendations
In a meeting with officers of Ministry of Power, Govt. of India and Central
Electricity Authority (CEA) on 13.7.2008 it has been decided to entrust NIOH with
the responsibility of conducting study / survey on the effective implementation of
the Health and Safety norms in particular, with the following terms of reference
(as per DO, letter of Sri Razdan to Sri Naresh Dayal, Secretary, Ministry of
Health & Family Welfare, dated 15. 7. 2008):
1.
Safety norms as provided in the various statutes/rules/Regulations;
2.
Whether these are being implemented effectively: and
2
3.
If not, remedial measures needed for effective implementation
specifying in particular, the authority responsible/to be made
responsible for effective implementation of the provisions of the
Statutes/Rules/Regulations.
VISIT OF NIOH TEAM
It has been decided by CEA that initially two units may be considered and the
units have also been identified. One of the units is Rihand Super Thermal Power
Project, at Rihand UP, and other unit of a Gujarat Electricity Board (GEB). There
was no response from GEB. On the basis of the response from Rihand power
station, a NIOH team of five scientists visited the unit from 23rd to 26th February
2009, for an on-spot visit of the plant units, its different activities as well as
interaction amongst the working population including the management officials at
several levels. The scientists are:
1.
Dr P K Gangopadhyay, Scientist F and Officer – in- Charge,
Regional Occupational Health Centre (Eastern), Kolkata.
2.
Dr A K Mukherjee, Scientist E, Regional Occupational Health
Centre (Eastern), Kolkata.
3.
Dr (Mrs) Anjali Nag, Scientist E, National Institute of Occupational
Health, Ahmedabad,
4.
Dr Asim Saha, Scientist C, National Institute of Occupational
Health, Ahmedabad,
5.
Dr S Raghavan, Scientist B, National Institute of Occupational
Health, Ahmedabad,
3
Rihand Thermal Power Station
Rihand Super Thermal Power Project/Station is one of the large power
generating units of National Thermal Power Corporation, a Govt. of India
enterprise situated at the south-eastern tip of Uttar Pradesh (bordering Madhya
Pradesh and Bihar). The area is also consisting of other power projects namely
Singrauli Thermal (2000MW), Vindhyachal Thermal (3260 MW), Anpara Thermal
(1600 MW), Obra Thermal (1550 MW), Rihand Hydel (300 MW), Obra Hydel
(100 MW) and Renusagar Power Co (732.5 MW). Other industries located in the
area are Hindalco (Aluminium factory), Kanoria Chemicals and High Tech
Carbon, as well as coal mines. The region is locally known as Dakshinanchal.
The Rihand Super Thermal Power Project is located at Rihand Nagar, Bijpur,
Sonebhadra District in Uttar Pradesh province of India. Unit I and II of first stage
commissioned 1988 and 1989 respectively. These units started production of
electricity on commercial basis in January 1990 and January 1991 with installed
capacity of 500 MW each. Stage II with unit III and unit IV of 500 MW each were
commissioned and commercialised on August 2005 and May 2006. The chimney
heights were 224.5 and 275 meters for stage I and stage II respectively. The
sources of coal and water for the functioning of the units were Amlori Mines and
Rihand Reservoir of Govind Ballabh Pant Sagar respectively. The generated
electricity distributed to different states like UP, Haryana, Punjab, Jammu &
Kashmir, Himachal Pradesh and Chandigarh. In stage III further 1000 MW (500
MW each of two) is also coming up. The station has already registered more than
100% PLF (Plant Load Factor).
Initially the visiting NIOH team had a meeting with the General Manager
and all the departmental heads. A detailed discussion took place explaining the
aims and objectives of the visit. They have been asked to co-operate with the
team. The management also urged to take the team to all the sites inside the
4
plant as well as the surrounding community areas, and explain different
activities/operations. The team visited the various sites and collected a few
samples of dusts and ambient gases. Noise levels were measured in some of the
processes. The team paid special attention to waste disposal, liquid waste
treatment plant, fly ash disposal/ash pond and ash brick production units. The
team also visited the hospital and the surrounding community. Welfare activities
taken up by the management of the plant for the employees of the plant and
surrounding community have also been taken into consideration, including the
regular training activities.
The organisation has also submitted some of the information / records as
asked for to the team members. The records are regarding injury / accident,
environmental
occupational
impact
disease
assessment,
statistics,
environmental/epidemiological
pre-employment
and
periodic
studies,
medical
examination, onsite & off site emergency preparedness (mock drill), emission
quality, community monitoring data, fly ash characterization and its impact on soil
fertility and crop yield, safety reports and list of workers.
Some important information are:
A.
The details of the main raw materials used year-wise and the quantity of
power generated are as follows:
Description
Unit
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Coal
Consumption
Oil
Consumption
Power
Generation
PLF
MT
4765802
4747997
6186960
10246908
10690492
9612866
MT
1798
1364
2441
2730
1686
2600
MUs
7956.263
7988.110
9805.008
16100.321
16763.283
14947.649
%
90.58
91.19
85.20
91.90
95.42
96.41
5
B.
Fatal accidents at Rihand Super Thermal Power Project from 2002-2009:
There were ten (10) fatal accidents took place in this power plant. All the
workers were contractual labourer – mainly engaged by NBCC (5) or
BHEL (4). In all the cases enquiry committee constituted and
compensation paid in each case (Rs 1,71,000/- to Rs 3,24,642/-).
C.
Annual Health Check-up of Employees (Occupational Health Hazards)
from 2003-04 to 2007-08.
The submitted report indicated that there was not a single case of a) Coal
Worker’s pneumoconiosis; b) Silicosis; c) Lead poisoning and d)
Dermatitis. However, so-called noise induced hearing loss was reported in
case of some workers.
Chronic Respiratory Illness of the nearby
population has also been reported.
D.
Safety Training and Awareness Programmes
The organisation undertakes safety training and awareness programmes
regularly for NTPC Employees, contractual workers and community. This
also includes first aid training, fire fighting training, disaster management
and emergency preparedness, competition, health check-up, etc.
E.
Risk Assessment Study
The study suggested areas of fire hazard and explosion hazards; areas
susceptible to release of chemicals and gases; hazardous locations of
possible bursting of pipelines; areas susceptible to flood; hazards
associated with machinery/plants, storage godown, etc
6
1
Figure 1. In-side view of some sections and operations at Rihand power plant
Processes involved in power generation
The processes involved in generation of power are complex. Initially, the coal
from Amlori mines in wagons are received at the Merry Go Round (MGR)
department and transported to the raw coal bunkers at the wagon hooper area of
coal handling plant (CHP). This is a captive railway of Rihand STPP. The coal is
unloaded to the paddle feeder to scoop the coal to conveyer belt and transported
to crusher and to the Bowl mills. The coal is pulverised in Bowl mills. The finely
crushed coal (< 88 μm) is taken to the furnace through coal pipes with the help of
cold and hot air mixture from PA fan. Water from the boiler feed pump passes
through economiser and reaches to the boiler drum → to the water wall tubes in
the furnace to convert into steam. The steam generated is separated from the
water and is super heated to 540 °C by super heater located inside the furnace
and finally it is fed to turbine. The flue gases from the furnace are extracted by
induced draft (ID) fans, → cooled by passing through pent house and air preheaters and ultimately sent to electrostatic precipitators (ESP) to collect / settle
the ash particles to minimise the stack emission of fly ash. The fly ash is mixed
with water to form slurry and is pumped / carried to ash pond via liquid waste
treatment plant. All other liquid wastes, water from cooling tower, water from ash
handling, water mixed with oil and grease from different plant areas are also
carried to liquid waste treatment plant to separate oils and ash from the water
through ash water re-circulation system (AWRS) and ash dust pump house
(ADPH). The separated ash is also pumped to the ash pond. The oils are
recovered for re-use. The water is treated with alum, lime bleaching in the water
treatment plant for re-circulation of water. In the water treatment plant liquid
ammonia is used for final adjustment of water PH before re-use. The plant is
having a closed circuit wet cooling system to condense the steam. Dry fly ash is
collected from ESP and also from the bottom of the boiler in bags and is utilized
in brick manufacturing in RSTPP. The fly ash produced in the plant is also used
either in construction work, in agriculture purposes and or as land fills etc.
8
The steam is conveyed to the turbine by two high-pressure steel pipes
fitted with stop valve and control valves. The steam enters the turbine through
the control valve and rotates the blades and transforms the heat energy into
mechanical energy. The steam is re-cycled to rotate the turbine blades in series
of stages. The turbine shaft rotates at 3000 revolutions per minute. To conserve
water, hot water is circulated through cooling towers to cool and re-use. The
electricity is produced in the generator and is fed through the terminal
connections. All the operations monitored and executed through a group of a
engineers that manned the control room operations. Engineers monitor the
output of electricity, supervise and control the operations. The major plant
sections / operations of Rihand-STPP are:
a) Coal handling plant
b) Main plant (Boiler, Turbo Generator)
c) Water treatment plant
d) Fuel handling plant
e) Pump house
f) Stores
g) Liquid waste treatment plant (LWTP)
h) Electrostatic precipitator (ESP)
Large quantity of water is generally used for condensing and cooling
processes in the plant. The used water with elevated temperature and
contaminated with chemicals are again discharged usually into the receiving
surface water. This may deteriorate the quality of water and affect the aquatic
9
lives and human health due to higher water temperature. In Rihand-STPP it was
found that the there is liquid waste treatment plant (LWTP), which separate
contaminants, and the water is re-circulated. A number of natural water
catchments were found to be made by the Rihand- STPP in the surrounding
villages to facilitate fresh water facility as well as preserve water habitats,
agriculture and growth of greenery.
10
1
Figure 2. In-side view of some sections and operations at Rihand power plant
The team noticed some drawback and lacunae in different operations and the
shop floors. In brief,
1.
Merry Go Round (MGR) and Captive Railway Network & Workshop
→
The network system from mines up to MGR not considered here.
From MGR up to Coal Handling Plant
→The
diesel locomotive
maintenance area needs proper training of contractual labourers for
handling oils, greases, etc. A better supervision with personalized
touch is desirable for its up keepings.
2.
Coal Handling Plant
→ The different operations involved in this area
appears to be dusty and noisy. There are scopes for improvements.
3.
Coal mills, Boiler Area→ Dust, heat, noise have impacts;
4.
Electrostatic Precipitators → Dust appears to be problem.
5.
Turbine Area, Control Rooms → Noise & Heat requires minimization
below permissible limit
6.
Water treatment plant, Fuel handling plant, Liquid waste treatment
plant (LWTP), Pump House, Stores → Scopes of improvement.
7.
Chemical Storage tanks, Flue gases and Fly ash
improvement desired.
12
→
Further
Air emissions
Generally, primary emission in the air of any thermal power plant includes the
combustion product of fossil fuels or bio-mass i.e, SO2, NOx, respirable dust (PM
or fly ash), CO, CO2. Besides, other pollutants like, heavy metals, HF, volatile
organic compounds (VOCs), etc. The dust in the plant is produced due to
handling of solid fuel (coal), additives, solid wastes (e.g. fly ash). The silica
content of the dust is very important. It was observed that the coal used contains
about 27% ash. The fly ash produced from the plant contains about 60% SiO2.
Stack emissions of SO2, NOx, CO, respirable particulate matter (RPM) or
opacity (dust) of the 500 MW capacity each of units 3 & 4 of Rihand-STPP
recorded were found to be 20.25 ppm, 21.06 ppm, 5.31 ppm and 43.02 mg/Nm3
& 14.80 ppm, 9.40 ppm, 28.80 ppm, and 52.26 mg/Nm3, respectively during the
visit.
Occupational exposures
In the thermal power plant, dust is a major occupational hazard as large quantity
of coal is used and a huge amount of fly ash is generated. Noise is a recognized
hazard, due to operations of turbine generators, auxiliaries, boilers, crushers,
pulverizers, pumps, motors, compressors, diesel engines, vibrators, etc. It was
observed that the turbine floor is very noisy. The CHP consisting of paddle
feeder, crusher, pulverizer, reclaimer, conveyer are also noisy processes. In the
plant areas the operators, supervisors and executive engineers work in a
centralized segregated control room. However, cleaning personnel and
maintenance workers are generally exposed maximally to noise hazards. The
surrounding areas of high noise machinery were identified as noise prone areas
of the plant and the workers movements are restricted. The turbine and boiler
13
areas were found to be the heated zone in the plant, besides furnace operations.
The thermal insulations used in the hot ductings carrying steam were of glass
wool. Gaseous pollutants are mainly SO2, NOx, VOCs.
Environmental pollution
The ambient air around any thermal power plant may be polluted by the stack
emissions from the plant. The combustion products of the solid fuel comprising of
SO2, NOx, HF and the green house gases (GHGs) along with particulate matter
in the form of fly ash are discharged continuously. The ambient air expected to
be polluted by these pollutants. Besides, the heavy metals (Pb, Cr, Hg, As, etc.)
present as impurities in coal may also be present in the air in higher levels. The
acidic nature of the fly ash may lead to acid rain in the surrounding localities. The
air quality around any thermal power plant is deteriorated and populations of the
surrounding localities are usually affected. The children are specially victim of
various respiratory ailments. Besides, agriculture and yield of the fruit plants may
also be affected. Hence, regular monitoring of the air and water qualities
around the thermal power plant is very much essential. The company has
started monitoring the ambient air quality continuously of its township and
surrounding locality, since January 2009. The samplers are located in Avantica,
Vasantica, Sirsoti and Punarwas. They are in south-east or south-west direction
of the main plant. The parameters measured are total suspended particulate
matter (TSPM), respirable particulate matter (RPM), SO2 and NOx. The available
report showed that the SO2 and RPM levels in the air are higher than the 24hourly recommended permissible limits for industrial areas on some occasions as
noted during the visit from the existing available records. The meteorological
parameters are also recorded in each of the monitoring stations.
14
Workplace monitoring
During the period of the visit, the NIOH team carried out an environmental
monitoring within the plant processes by using the both real time direct reading
equipment and integrated samplers. The respirable dust (PM10) at different plant
operations was undertaken by using a direct reading instrument (EPM – 5000),
Enviromental Devices Corporation, USA and low volume integrated sampler Air
Check, SKC, USA. Some results are presented in Table 1, indicating that the
crusher area is dusty and the workers engaged within the plant may be exposed
to high level of coal dust.
Monitoring of combustion gases like SO2, H2S along with oxygen and hydrocarbons (LEL-Lowest Explodable Limits, expressed as methane) were monitored using
Gas Alert Micro 5 gas monitor manufactured by BW Technologies, Canada.
The
instrument is capable to analyse the toxic gas concentration in parts per million (ppm).
None of these gases were found to be detectable in analytical range of the equipment.
The workers mostly confined in the control rooms of each of the plant operations
and hence workplace exposure is mostly within permissible limits except for the
cleaning and maintenance workers who work in the shop floors.
Table 1. Respirable particulate matter (PM10) levels recorded at different plant
locations during the period 23 – 26, February, 2009
Sl.
No.
Plant operation area
1
2
3
4
5
6
7
8
Turbo Generator
Boiler-3, Firing Floor-Corner 1, AB Elevation
Track Hooper-Coal Handling Plant
Crusher-II at ~15 feet distance
Crusher-II at ~ 8 feet distance
ESP-4 on the wayside but inside ESP area
ESP-4 in the middle of ESP
Control Sample (Outside power plant)
15
Respirable
dust (PM10)
Concentration
(mg/m3 )
0.030
0.073
0.083
1.466
2.336
0.189
0.319
0.085
Noise monitoring
The noise levels at different locations in the plant areas were recorded by a
precision Sound level meter (model, 2230 B&K, Denmark). The noise levels,
Leq05 values maximum and minimum were recorded near the noisy machines
(identified as noise prone area) in the plant, in working locations of workers and
also out side of some operating areas. The results of the noise monitoring are
shown in Table 2. The octave band analysis of the sound pressure levels of
different plant operations are presented in Table 3.
Table 2. Walk through noise level recording at different plant areas.
Leq 5
Monitoring Locations
Coal unloading plant out side
Coal handling plant (CHP) inside near Conveyer
motor.
CHP control room, Inside with AC
CHP control room, Out side the room
Out side the CHP control room building - In front
of the Crusher House – 2
Near Boiler at firing floor (AB – Elevation)
Turbo Generator (TG) – 3 (Beside Turbine driven
boiler feed pump (TDBFP), RHS)
TG – 4 (High Pressure Turbine, LHS)
Away from TDBFP
TG – 4 (TDBFP end) RHS
TG (Central control room)
Electrostatic Precipitator (ESP), beside ID Fan 3B
16
Min
dB(A)
Max
dB(A)
66.1
83.4
78.4
93.0
50.9
77.2
83.4
90.4
93.2
95.2
86.4
92.8
87.7
61.4
71.6
90.8
65.5
82.5
SPL
dB(A)
56.4
61.5
80.5
75.2
As observed, Turbo generator (TG) floor is the high noise prone area.
Though operators, supervisors and executive engineers are mostly confined in
the control room, the cleaning and maintenance workers work in the turbine floor
and are exposed to high noise levels to the tune of 86 to 95 dB(A). The area is
also found to be heated zone along with the adjacent boiler area. The octave
band analysis of the sound pressure levels (SPL) at different operations showed
that the noise levels are highest at the central frequencies 1 and 2 kHz. At the
Turbo Generator (TG) – 3, beside TDBFP, the noise level at the central
frequency of 2kHz is above 90 dB(A). Noise levels in the control rooms of CHP
and TG were observed to be much lower than the respective shop floors. About
five workers always work in the control rooms of CHP and TG with AC. The AB
elevation (Boiler – 3) at firing floor also showed maximum Leq5 of 93.2 dB(A).
The area around ESP unit having noise levels between 71.6 to 82.5 dB(A) at
measuring point 30–40 feet away from the ID fan.
17
Table 3. Octave band frequency analysis of the sound pressure level (SPL) at
different plant locations.
Monitoring
Locations
Coal unloading
plant out side
(JH-3)
Coal
handling
plant
(CHP)
inside,
(near
Conveyer
motor.
CHP
control
room
Near Boiler at
firing floor (AB –
Elevation)
Turbo
Generator (TG)
– 3 (Beside
Turbine driven
boiler
feed
pump (TDBFP),
RHS)
TG – 4 (High
Pressure
Turbine, LHS)
Away
from
TDBFP
TG – 4 (TDBFP
end) RHS
TG (Central
control room)
Electrostatic
Precipitator
(ESP), beside
Induced draft
(ID Fan ) 3B
Octave band analysis (frequencies in Hz ), SPL in dB(A)
31.5 63.0 125 250 500 1k
2k
4k
8k
16k
64.2 64.6
64.8
65.2
64.8
64.9
65.7
66.5
67.4
44.3
57.0
61.4
70.8
74.5
78.4 76.1 77.0
65.0
40.8
16.8
29.6
46.7
47.4
63.6 45.7
53.6
37.8
38.5
29.2
43.1
52.5
61.0
66.4
77.2 82.1
80.0
74.4
61.7
44.7
55.1
63.8
71.7
77.4 79.7 86.4
90.5
48.2
58.8
67.8
70.3
77.2 81.4
83.9 85.4
83.3
51.0
61.2
70.1
75.3
77.7
81.8
86.1
85.7
71.0 57.2
29.6
42.8
51.6
52.6
52.8
56.2 57.9
54.0
32.7 25.1
44.8
53.8
59.3
63.7
68.5
71.1
59.7 45.5
18
65.1
66.8
87.8
72.1 51.2
53.7
46.0
The geographic locations of other power plants and industries are
illustrated below.
19
Salient observations
•
The brief visit of the NIOH team of scientists brings out first hand information.
Rihand power plant has taken different measures in keeping the plant area as
clean as possible and near-zero discharge of liquid waste so as to prevent
any deterioration of the health of the workers in particular, and people in the
community environment, in general. Corporate social responsibility has also
been taken care off. The company has taken endeavour for community
upliftment. Solar power supply and storage of rainwater has also been tried.
The measures taken for involving the surrounding community and their
improvement is praiseworthy. However, there are lots to be done for the
community.
•
Rihand power station maintains a 50-bedded hospital for its employees and
dependents. Regular health check-ups are organised along with daily
preventive and curative services as provided for. The hospital also looks after
the CISF, their dependants and schools. Also, health care facilities have been
offered to the surrounding community on token payment basis.
•
Occupational health has been looked after by an Occupational health
physician (certificate course), maintaining a very small set-up. This facility
needs to be augmented with more manpower and other required facilities.
Innovative approach may be required in implementing core Occupational
Health and Safety (OHS) elements in different operations of the coal fired
thermal plant.
•
In the plant area there are places/locations/operations where environmental
conditions need improvement. Hazards of dust and noise need to be
mitigated. Though zero discharge of effluents has been attempted, there was
some degree of success. Sewage treatment and fly ash use require careful
20
planning. Accordingly, the occupational health services need to be
strengthened, for which there is a requirement of a full-fledged occupational
health unit. The OHS unit requires qualified professional for monitoring of
potential risks of health and safety at workplaces. Documentation and records
management are essential requisite, which need to be improved and
strengthened.
•
Observations suggest that the management of the power plant should
develop
a
viable
workplace
standard.
Suitable
implementation
of
organization-specific workplace standard might be beneficial in mitigating
workplace hazards, increasing work efficiency, and substantially improving
health and well-being of the people involved.
•
Human-machine-environment-organization
relationships
are
crucial
to
influence the socio-technical systems components. In other words, manmachine system incompatibilities should be clearly understood – an example
is the functions of the control room of the plant. Display-control compatibility
and the operator’s cognitive performance have direct linkage to the
effectiveness of the control room functions.
•
There are requirements for broad based study covering total environmental
assessment of all operations including the surrounding community to
ascertain the magnitude of the problem. Total coverage of the workers and
sub sample of the community is essential for a comprehensive health risk
assessment.
•
The NIOH recommends an in-depth study on occupational health
assessment, covering various plant operations and also monitoring the
population in the surrounding community environment.
21
© Copyright 2026 Paperzz