Governance

Corporate Governance 

Since 2010, Petro Matad has followed the QCA Corporate Governance Guidelines for AIM Companies (QCA Code), and the Board, to the extent considered applicable, has ensured that the company is in compliance with that Code. Additionally, we formed a Corporate Governance Social Action and Environmental (CGSAE) Committee in 2010. The Committee is charged, amongst other things, with overseeing and reviewing compliance and corporate governance issues.

 

Following the changes to the Alternative Investment Market (AIM) rules which now require AIM-listed businesses to adopt a recognised corporate governance code, the company is pleased to report that the Board has chosen to continue to follow the QCA Code and is applying the 2018 QCA Code.

 

Key Governance Principles 

  • Delivering Growth
    • Petro Matad prioritises growth by developing an exploration-focused strategy in Mongolia, considering social and environmental impact for sustainable long-term operations, and continually evaluating risk.
  • Maintaining a Dynamic Management Framework
    • Petro Matad maintains an experienced, balanced, and well-functioning Board; the performance of all Directors is evaluated on an ongoing basis.
    • The Board has established an Audit Committee, a Remuneration Committee and a Corporate Governance Social Action and Environmental (CGSAE) Committee, each with formally delegated rules and responsibilities, to promote a corporate culture based on our shared ethical values and behaviours.
  • Building Trust
    • Petro Matad establishes trust with investors by encouraging two-way communication with both institutional and private investors and responding to queries received.

 

Our Board of Directors  

The Board is currently comprised of two Non-Executive Directors (who are shareholder representatives), one Independent Non-Executive Director and one Executive Director.  Due consideration is given to the composition of the Board to ensure:

  • The principle of having at least one Independent Director on the Board to oversee the interests of the company and all shareholders
  • Ensuring that the Board has appropriate skills, experience and expertise
  • Maintaining appropriate representation for the company’s major shareholder Petrovis Matad Inc. (Petrovis)
  • Ensuring appropriate executive representation on the Board

 

Whilst the Chairperson of the Board may not fully meet the definitions of an Independent Chairperson, with her experience, skill sets, and independence from Petro Matad’s day to day operations, the company is confident of her leadership in fostering an effective corporate governance regime.

 

The retirement of the CFO/Executive Director at the end of 2020 reduced the number of Board members to four. Accordingly, in order to deal with potential split votes by the Board, Directors have agreed that the Independent Non-Executive Director will hold the tie breaking vote. This arrangement will be revisited by the Board if and when the number of Directors increases above its current level.

 

The Board is comprised of the following members:

  • Enkhmaa Davaanyam, Non-Executive Chairperson (Petrovis appointee)
  • Shinezaya Batbold, Non-Executive Director (Petrovis appointee)
  • Timothy Bushell, Non-Executive Director (Independent)
  • Michael Buck, Executive Director (Chief Executive Officer)

 

The company also intends to appoint a second independent Non-Executive Director; discussions are underway on the skills and background that the ideal candidate should possess.

 

Board Committees 

The Board has established an Audit Committee, a Remuneration Committee and a Corporate Governance Social Action and Environmental (CGSAE) Committee, each with formally delegated rules and responsibilities. Management executives and other individuals are invited to attend all or part of the Committee meetings as and when appropriate.

 

Audit Committee 

Chair – Enkhmaa Davaanyam

Members – Timothy Bushell, Shinezaya Batbold

 

Remuneration Committee 

Chair – Timothy Bushell

Members – Enkhmaa Davaanyam, Shinezaya Batbold

 

Corporate Governance, Social Action and Environmental Committee 

Chair  – Shinezaya Batbold

Members – Enkhmaa Davaanyam, Timothy Bushell

 

How we comply with the QCA Code 

Deliver Growth
QCA Code Principle Application (as set out by QCA) What We do and Why
1. Establish a strategy and business model which promote long-term value for shareholders The board must be able to express a shared view of the company’s purpose, business model and strategy. It should go beyond the simple description of products and corporate structures and set out how the company intends to deliver shareholder value in the medium to long-term.  It should demonstrate that the delivery of long-term growth is underpinned by a clear set of values aimed at protecting the company from unnecessary risk and securing its long-term future The Petro Matad Group’s strategy is focused on oil exploration, development and production in Mongolia and the Group will continue to pursue exploration projects within high graded exploration areas in Mongolia. Shareholder value will be realised with the development and production of any commercial discoveries made by the Company. Petro Matad will also look at risk diversification measures such as farmouts should a favourable opportunity arise.

 

Our strategy is focused on highgrading exploration areas by accessing state of the art technical resources to maximise the probabilities of identifying the best opportunities for making potential discoveries.

 

The Board is committed to applying best practice technical, commercial and financial solutions to mitigate risks as much as possible, while always maintaining a proper control environment to ensure all laws and regulations are followed.  As an exploration company, funding its exploration work programme is critical. The Board reviews available funds closely and is always a step ahead to ensure that funds are sought to fund planned future work programmes.

 

The Board has undertaken to review risks annually using a purpose-built risk matrix, which covers all aspects of the business, including technical, financial, commercial, government and community risks. Risks identified are ranked in relation to the probability of occurrence and impact on operations.

 

For more information please see the Risk Management section on page 43 of our 2022 Annual Report for the year ended 31 December 2022.
2. Seek to understand and meet shareholder needs and expectations

Directors must develop a good understanding of the needs and expectations of all elements of the company’s shareholder base.

 

The board must manage shareholders’ expectations and should seek to understand the motivations behind shareholder voting decisions.

The Petro Matad Group encourages two-way communication with both its institutional and private investors and responds quickly to all queries received. The CEO talks regularly with the Group’s major shareholders and investors and ensures that their views are communicated fully to the Board.

 

The Board recognizes the AGM as an important opportunity to meet private shareholders. The Directors are available to listen to the views of shareholders informally immediately following the AGM. The Company’s Articles of Association were amended at the September 2018 AGM to enable the Company to potentially hold AGMs in the United Kingdom in the future, in recognition of Petro Matad Limited being listed on AIM, where a substantial number of the Company’s private investors are based. The Company has taken measures at the recent AGMs to enable shareholders to dial-in and observe the proceedings of the meeting and submit questions to be responded which has enabled greater engagement with shareholders. In order to provide more informational updates on operations, the Company has established a social media presence.

 

Where voting decisions are not in line with the Company’s expectations the Board will engage with those shareholders to understand and address any issues. The Company’s Executive Management is the main point of contact for such matters and the Company has established an email address for this purpose: admin@petromatadgroup.com.
3. Take into account wider stakeholder and social responsibilities and their implications for long-term success

Long-term success relies upon good relations with a range of different stakeholder groups both internal (workforce) and external (suppliers, customers, regulators and others). The board needs to identify the company’s stakeholders and understand their needs, interests and expectations.

 

Where matters that relate to the company’s impact on society, the communities within which it operates or the environment have the potential to affect the company’s ability to deliver shareholder value over the medium to long-term, then those matters must be integrated into the company’s strategy and business model.

 

Feedback is an essential part of all control mechanisms. Systems need to be in place to solicit, consider and act on feedback from all stakeholder groups.

Corporate Social Responsibility (CSR) is an integral part of Petro Matad’s activities. The Company is committed to evaluating and minimizing the social and environmental impact of its operations, thereby ensuring its long-term sustainability. Petro Matad has developed a Social Performance (SP) Plan based on socio-economic and social impact assessments, which sets out the socioeconomic context, identifies the key stakeholders and associated consultation process, community grievance management mechanism, social investment strategy and commitments including the required resources and budget. This is evidenced and underpinned by our vision and values including ongoing engagement with stakeholders at all levels.

 

The core objective of Petro Matad’s SP stakeholder engagement strategy is to build relationships, strengthen trust, gain broad-based support and broaden understanding of the communities in which Petro Matad is operating, which provides a mechanism for effective social risk management.

 

For more information please see the ESG Statement of our 2022 Annual Report for the year ended 31 December 2022 as well as the ESG page on our website.

 

The Company liaises closely with the Mongolian regulator, Mineral Resources and Petroleum Authority of Mongolia in bringing forward issues in the conduct of business and operations within the Mongolian oil industry and also to comply with its obligations under the Production Sharing Contracts.

 

The Petro Matad Group conducts regular reviews on the effectiveness of stakeholder engagement and is committed to improve in areas were deficiencies are recognised.

 

The Petro Matad Group encourages feedback from all stakeholders and reacts accordingly in line with guidelines on stakeholder engagement. The Company has established an email address for this purpose: admin@petromatadgroup.com. The Company has engaged a public relations firm which will respond to general enquiries on behalf of the Company, recognising that price sensitive information will not be divulged.
4. Embed effective risk management, considering both opportunities and threats, throughout the organisation

The board needs to ensure that the company’s risk management framework identifies and addresses all relevant risks in order to execute and deliver strategy; companies need to consider their extended business, including the company’s supply chain, from key suppliers to end-customer.

 

Setting strategy includes determining the extent of exposure to the identified risks that the company is able to bear and willing to take (risk tolerance and risk appetite).

Risk Management on page 43 of our 2022 Annual Report for the year ended 31 December 2022 details risks to the business, how these are mitigated and the change in the identified risk over the last reporting period. As a priority, the Company reacts to changing risk profiles as they are identified.

 

The Board considers risk to the business at every Board meeting. The Company formally reviews and documents the principal risks to the business at least annually.

 

The Board has undertaken to review risks annually using a purpose-built risk matrix. Risks identified are ranked in relation to the probability of occurrence and impact on operations. Each identified risk is delegated to a senior member of the management team to monitor and define mitigating and intervening action, should circumstances warrant it.
Maintain A Dynamic Management Framework
QCA Code Principle Application (as set out by QCA) What We do and Why
5. Maintain the board as a well- functioning, balanced team led by the chair

The board members have a collective responsibility and legal obligation to promote the interests of the company and are collectively responsible for defining corporate governance arrangements. Ultimate responsibility for the quality of, and approach to, corporate governance lies with the chair of the board.

 

The board (and any committees) should be provided with high quality information in a timely manner to facilitate proper assessment of the matters requiring a decision or insight.

 

The board should have an appropriate balance between executive and non-executive directors and should have at least two independent non- executive directors. Independence is a board judgement.

 

The board should be supported by committees (e.g. audit, remuneration, nomination) that have the necessary skills and knowledge to discharge their duties and responsibilities effectively.

Directors must commit the time necessary to fulfil their roles.

The Company is controlled by the Board of Directors. Enkhmaa Davaanyam, the Non-executive Chairperson, is responsible for the running of the Board and Mike Buck, the Chief Executive, has executive responsibility for running the Group’s business and implementing Group strategy.

 

All Directors receive regular and timely information on the Group’s operational and financial performance. Relevant information is circulated to the Directors in advance of meetings. All Directors have direct access to the advice and services of the Company’s Corporate Manager and are able to take independent professional advice in the furtherance of the duties, if necessary, at the Company’s expense. The Board through a combination of meetings and conference calls regularly reviews operations and implementation of its strategy. Board meetings and discussions are attended by all directors a large majority of the time. Non-Executive Directors are closely involved and updated with regular information flows and are expected to spend at least circa 3-4 weeks of their time each year on Petro Matad matters.

 

The Board is currently comprised of two Non-Executive Directors (who are shareholder representatives), one Independent Non-Executive Director and one Executive Director.  Due consideration is given to the composition of the Board to ensure:

  • The principle of having at least one Independent Director on the Board to oversee the interests of the Company and all shareholders
  • Ensuring that the Board has appropriate skills, experience and expertise
  • Maintaining appropriate representation for the Company’s major shareholder Petrovis Matad Inc. (Petrovis)
  • Ensuring appropriate executive representation on the Board

 

Whilst the Chairperson of the Board may not fully meet the definitions of an Independent Chairperson, with her experience, skill sets, and independence from Petro Matad’s day to day operations, the Company is confident of her leadership in fostering an effective corporate governance regime. 

 

The retirement of the CFO/Executive Director at the end of 2020 has reduced the number of Board members to four. Accordingly, in order to deal with potential split votes by the Board, Directors have agreed that the Independent Non-Executive Director will hold the tie breaking vote. This arrangement will be revisited by the Board if and when the number of Directors increases above its current level.

 

The Company also intends to appoint a second independent Non-Executive Director; discussions are underway on the skills and background that the ideal candidate should possess.

 

The Board has established an Audit Committee, a Remuneration Committee and a Corporate Governance Social Action and Environmental (CGSAE) Committee, each with formally delegated rules and responsibilities. Management executives and other individuals are invited to attend all or part of the Committee meetings as and when appropriate.

 

The ESG Statement of our 2022 Annual Report for the year ended 31 December 2022 details the composition of the Audit, Remuneration and CGSAE Committees.
6. Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities

The board must have an appropriate balance of sector, financial and public markets skills and experience, as well as an appropriate balance of personal qualities and capabilities. The board should understand and challenge its own diversity, including gender balance, as part of its composition.

 

The board should not be dominated by one person or a group of people. Strong personal bonds can be important but can also divide a board.

 

As companies evolve, the mix of skills and experience required on the board will change, and board composition will need to evolve to reflect this change.

Each Director brings different skillsets and capabilities to the Board, resulting in a balanced Board with the necessary blend of relevant experiences, skills and personal qualities to deliver the strategy of the Company.

 

On an ongoing basis the Board reviews the expertise required on its Board to ensure it is fully capable to determine and implement the Company’s strategy.

 

Board additions or replacements are made with the required skill set for the Company’s current outlook and business development stage in mind, and candidates are considered on merit, against objective criteria and with due regard for the benefits of diversity on the Board, including gender.

 

The Company will ensure, where necessary, that all Directors receive the necessary updates and training to keep their skillset up to date.
7.   Evaluate board performance based on clear and relevant objectives, seeking continuous improvement

The board should regularly review the effectiveness of its performance as a unit, as well as that of its committees and the individual directors.

 

The board performance review may be carried out internally or, ideally, externally facilitated from time to time. The review should identify development or mentoring needs of individual directors or the wider senior management team.

 

It is healthy for membership of the board to be periodically refreshed. Succession planning is a vital task for boards. No member of the board should become indispensable.

The Board has not formally adopted performance evaluation procedures. However, the Board takes the effectiveness and efficiency of its Directors seriously and will continue to review its own performance and effectiveness in an informal way

 

However, all Directors are evaluated on an ongoing basis before being proposed for re-election to ensure that their performance is and continues to be effective, that where appropriate they maintain their independence and that they are demonstrating continued commitment to the role.

 

Performance of all Executive Directors is monitored on a continual and ongoing basis in order to identify development and mentoring needs where applicable and more generally to ensure effectiveness of the incumbent in meeting the Board’s goals.

 

All Directors stand for re-election on a rotation basis whereby one third of the Directors of the Company are required to retire from office at each AGM of the Company and may submit themselves for re-election at each AGM of the Company.

 

While the Board plans to add a second independent Non-Executive Director it also evaluates requirements in relation to succession planning taking into account the required skill set and plans and performance of incumbent Directors.
8.  Promote a corporate culture that is based on ethical values and behaviours

The board should embody and promote a corporate culture that is based on sound ethical values and behaviours and use it as an asset and a source of competitive advantage.

 

The policy set by the board should be visible in the actions and decisions of the chief executive and the rest of the management team.

 

Corporate values should guide the objectives and strategy of the company.

 

The culture should be visible in every aspect of the business, including recruitment, nominations, training and engagement. The performance and reward system should endorse the desired ethical behaviours across all levels of the company.

 

The corporate culture should be recognisable throughout the disclosures in the annual report, website and any other statements issued by the company.

Business conduct, ethics and corporate social responsibility are key factors for the Company and the Board.

 

In relation to the Extractive Industries Transparency Initiative (EITI), the Company’s Mongolian subsidiaries are cooperating with the Mongolian government and participates in the transparency report prepared by the Mongolian government.

 

Business integrity and ethics are upheld within the operations of the Company at all levels to demonstrate a zero-tolerance approach on bribery and corruption. In this respect the Company has adopted a stringent Anti-Bribery and Corruption Policy, including training of its staff

 

Corporate Social Responsibility (CSR) is an integral part of Petro Matad’s activities. The Company is committed to evaluating and minimizing the social and environmental impact of its operations, thereby ensuring its long-term sustainability.

 

More details can be found in our ESG Statement in the 2022 Annual Report and the ESG page on our website.
9. Maintain governance structures and processes that are fit for purpose and support good decision- making by the board

The company should maintain governance structures and processes in line with its corporate culture and appropriate to its:

  •  size and complexity; and
  •  capacity, appetite and tolerance for risk.

 

The governance structures should evolve over time in parallel with its objectives, strategy and business model to reflect the development of the company.

Our ESG Statement on pages 35 to 47 of our 2022 Annual Report details the Company’s governance structures and why they are appropriate and suitable for the Company. As the Company develops, the corporate governance structures may be reviewed and modified as appropriate.
Build Trust
QCA Code Principle Application (as set out by QCA) What We do and Why
10. Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders.

A healthy dialogue should exist between the board and all of its stakeholders, including shareholders, to enable all interested parties to come to informed decisions about the company.

 

In particular, appropriate communication and reporting structure should exist between the board and all constituent parts of its shareholder base. This will assist:

  • the communication of shareholders’ views to the board; and
  • the shareholders’ understanding of the unique circumstances and constraints faced by the company.

 

It should be clear where these communication practices are described (annual report or website).

The Company encourages two-way communication with both its institutional and private investors and responds quickly to all queries received. The CEO talks regularly with the Group’s major shareholders and ensures that their views are communicated fully to the Board.

 

The Board recognizes the AGM as an important opportunity to meet private shareholders. The Directors are available to listen to the views of shareholders informally immediately following the AGM.

 

The Company also engaged FTI Consulting in 2017 to enhance investor relations.

This information was last updated on 23 August 2023.

 

Health, Safety, Security and Environment (HSSE)

Petro Matad remains demonstrably committed to best practices in health and safety management for the benefit of its workers, contractors and all stakeholders.

 

Petro Matad’s assets are located in remote locations in Mongolia. In this operating environment, it is essential to have fit for purpose health and safety protocols in place to operate safely. The safety of our people, our communities and the environment is our priority for all our activities.

 

Petro Matad cultivates and implements a safety and environmental awareness culture not only within the company but with the contractors involved with our projects and activities.

 

HSSE Policies 

Petro Matad has established and maintains documented health and safety policies which are central in guiding all our activities. These policies are appropriate to the nature and scale of Petro Matad Group’s health, safety and security hazards.

 

Our policies include explicit commitments to operate in a way which is proactive in continual improvement in HSSE management performance particularly in the prevention of injury, maintaining good health of all people who may be affected by our activities. We are also committed to complying with applicable legal requirements and strive to implement relevant industry best practices in all our activities. Our policies provide the framework for setting and reviewing HSSE objectives and are actively communicated to all persons working under the control of the organization with the intent that they use the principles of the policies to guide all decision making.

 

It is thanks to the rigorous adherence to these standards that Petro Matad has had zero Lost Time Injuries (LTI) since 2017.

 

Health, Safety, Security and Environmental Policy

Petro Matad’s Health, Safety, Security and Environmental Policy requires that executive management and all employees are committed to the welfare of all, and it further requires that contractors conduct their services in line with the company’s Policies. The company understands that its people are its greatest asset and success can only be achieved by ensuring their welfare and wellbeing.

 

The specific objectives of Petro Matad’s HSSE Policy are to:

  • Achieve an accident-free workplace.
  • Make Health & Safety an integral part of every managerial and supervisory position.
  • Ensure Health & Safety are considered in all planning and work activities.
  • Include the company’s employees in the decision-making process though regular communication, consultation, and training.
  • Ensure a minimal environmental footprint in all activities.
  • Provide a continuous programme of education and development to ensure that the company’s employees work in the safest possible manner.
  • Identify, manage, and control all potential hazards in the workplace through hazard identification and risk analysis.
  • Ensure potential accidents and incidents are mitigated by proactive engagement, with prevention always being the objective.
  • Provide effective injury management; and
  • Comply with relevant occupational Health & Safety laws, regulations, guidelines, and project requirements.

 

The success of the company’s HSSE Management System is dependent on:

  • Proactive planning of all work activities with consideration given to implementing health and safety controls that are suitable to each given situation.
  • Understanding the total work process and associated health and safety risks.
  • Ensuring that employees and contractors are totally committed to achieving objectives.
  • Ensuring that open and honest communication exists between management and all employees.
  • Minimizing impact on the environment, conserving and protecting the environment in all areas of operations.

 

Health and Safety Record 

Petro Matad concluded 2022 with zero Lost Time Injuries (LTI) and a total of 44,190 manhours recorded. Petro Matad Group’s Total Recordable Incident Rate (TRIR), which is one of the company’s Key Performance Indicators (KPIs) was also maintained at zero. Leading and Lagging Indicators were documented throughout as part of the routine data gathering required by the company’s HSSE-MS and enabled Petro Matad and its contractors to analyze trends and anticipate potential problems so aiding in achieving the successful outcome for the year.

The commitment of the company’s management and staff and the continuous and rigorous application of safety systems, policies, and procedures, combined with ongoing training resulted in zero LTIs since 2017.

 

HSSE Management System

Petro Matad’s HSSE is molded by the company’s HSSE Management System (HSSE-MS). It enables real time and practical support in all the company’s activities and operations as well as ensuring structural compliance with international standards and Mongolian laws and regulations. To apply best in class practices in operating procedures as well as compliance with Mongolian legislation, the company adheres to guidelines set out in: International Association of Oil and Gas Producers (IOGP), ISO 14001 Environmental Management System Guidelines, ISO 45001 Occupational Health and Safety Management System Guidelines, International Association of Drilling Contractors (IADC), and International Association of Geophysical Contractors (IAGC).

 

To implement the commitments of our HSSE policies, Petro Matad has established and maintains a standards based HSSE-MS which is structured according to International Association of Oil and Gas Producers (IOGP) 510 Operating Management System Framework supported in the Supplement Report 511 Operational Management System. As revised policies and procedures are released by IOGP, the company’s HSSE-MS is updated to reflect changes accordingly.

 

The HSSE-MS is designed to provide practical and real time support for our operations by enabling quick and reliable access to industry standards. The HSSE-MS is explicitly aligned with ISO14001 Environmental Management System Guidelines, ISO 45001 Occupational Health and Safety Management System Guidelines, the International Association of Geophysical Contractors (IAGC), the International Association of Drilling Contractors (IADC) and American Petroleum Institute (API) guidance where appropriate.

 

For Petro Matad’s Environmental commitments see Environment page here.

 

Structure of Petro Matad’s HSSE Management System

Clear definition of standards, competence assurance, efficient and open communication and record keeping lies at the heart of our HSSE-MS. The HSSE-MS emphasize on quality assurance in communications, asset integrity and both generic task and project workplace specific competence in all activities. All risks are structured according to International Association of Oil and Gas Producers 510 Operating Management System Framework supported in the Supplement Report 511 Operational Management System Practice and ISO 45001 Occupational Health and Safety Management System Guidelines to ensure that risk management is both proactive and demonstrably effective to all stakeholders appropriate to their needs.

 

 

Operations

Petro Matad is committed to supporting the building of industry capacity for hydrocarbon exploration and exploitation in Mongolia. We are currently working with government on bolstering the legal mechanisms that are in place for future projects and developments in the country.

 

We manage our seismic, drilling and other field-based exploration and exploitation operations using IOGP 423 Contracting Model Guidelines and work with all successful contractors to ensure that our HSSE standards are maintained. Seismic programmes operate under the guidelines of IOGP 432 Managing HSE In A Geophysical Contract and drilling programmes to the IADC HSE Land Drilling Case. The final report and HSSE management review of all projects are seen as central to organizational learning and continual improvement.

 

We operate a proactive HSSE observation programme not only to identify unsafe acts and conditions but also to identify best practice in all our operations. Information from the observation programmes is actively combined with monitoring and learnings from incidents. The process ensures that effective and quick corrective actions are taken and that root cause preventative measures are identified. All incidents are investigated, recorded and classified according to IOGP guidelines and learnings are shared through the management review process.

 

Operational Activity 

The company considers current and future HSSE needs and requirements at all times.

 

Due to Covid-19 pandemic restrictions and impact on the oil industry, Petro Matad was unable to conduct restoration to Heron-1 and Gazelle-1 drilling leases after operations ended in 2019. With easing of restrictions, in 2022 technical restoration was completed on both drilling leases utilizing a specialist restoration contractor. Both drilling lease areas were inspected with the province’s Handover Committee signing off on the formal compliance acceptance acts.

 

Subsequent to the completion of drilling of Velociraptor-1 well in Block V, Petro Matad will restore the area impacted by the drilling operations to its original state as practicably possible and obtain formal compliance acceptance acts.

 

Risk Management 

Petro Matad recognises the significance of a proactive stance on HSSE risk management in its operations to provide measures that protect its employees, its contractors and the environment and communities within which the company operates. Prior to any operations, all risks and hazards are identified, and mitigating measures are implemented to reduce risks where possible to as low as is reasonably practical.

 

The nature of the company’s business involves exposure to potentially hazardous materials. Any loss of containment of hydrocarbons or other dangerous substances may have adverse effects on both the environment and the health of individuals. Through operational controls, integrity of asset protocols and environmental risk management, the company continues to aim to eliminate all environmental risks that may have an impact on the environment and stakeholders.

 

Engagement and Training 

Through an extensive engagement programme, employees, contractors and local hires are trained on Mongolian occupational, health and safety standards and regulations for all required operations and activities. The awareness and training programme includes topics such as Mongolian occupational safety and hygiene laws, investigating industrial accidents and prevention of occupational diseases, amongst others.