One of the main areas where Ken Talbot has been proactive for many years now is in the area of ensuring the companies he is associated with strive to become excellent corporate citizens. Macarthur Coal, the company which Ken created in 1995 has an excellent record in the area of Social Responsibility.

The Macarthur Coal Corporate Social Responsibility Statement section from their 2007 annual report provides an example
of Ken’s commitment. This is the basis of CSR undertaking for which Ken will be encouraging the corporations that the
Talbot Group invests in to strive to achieve.

Macarthur Coal has six main aspects to their program which are set out below for your information:

1. Ensuring that all our work practices are carried out ethically and responsibly
2. Respecting, supporting, encouraging and engaging our employees
3. Considering all aspects of the environment in the planning, development and operational phases of our activities and implementing environmentally responsible practices and procedures wherever possible
4. Building, maintaining and strengthening our relationships with the communities in which we operate
5. Communicating effectively with our broad range of stakeholders
6. Working to create wealth for our Macarthur Coal shareholders.

Ken has encouraged all his staff whether it be at Macarthur Coal, the Talbot Group, the Talbot Hotel Group – which he owned until December 2006, and the numerous other companies he has been involved in to be creative in their corporate social responsibility – don’t just follow what has been done previously.

It is important to take time to listen to the community. The Talbot Group is committed to meeting their needs as well as considering the impact of associated activities have on the environment.

He is a strong believer in ensuring that we are an employer of choice. To do this companies must provide an environment in which staff must take ownership of the company they work for.

As part of this process Ken ensures all senior staff continually visit all areas of their business, no matter how remote the location.

Ken works hard on ensuring that all the companies he is involved in strive to provide the safest possible workplace for our employees.

Aspects of the businesses that Ken has been directly involved and which he believes set the “Talbot Social Responsibility” philosophy apart from other corporations include:

1. Provision of mobile gyms in remote locations
2. Installing a state of the art 5DT virtual reality simulator at Coppabella Mine in a pilot study to determine effectiveness of simulator training.
3. Providing senior management the opportunity to have individual health assessments. This includes individual health assessments and advice regarding their ongoing health and fitness.
4. Free flu vaccinations
5. Skin checks for minesite employees
6. Financial support and study leave opportunities
7. Shares for school program – this program provides financial assistance to public and financial schools in Queensland as well as the opportunity for high school students to gain insight into and understanding of the business of a publicly listed company.
8. Donations to local communities – refer to philanthropy section of the website
9. Funding the Gorden Tallis Cup – a sponsorship of under 10 rugby league competition in North Queensland.
10. The introduction of the first carousel into a Queensland Tavern. This provides entertainment and hospitality facilities for three generations – a first in Queensland.
11. Providing staff with shares as Christmas bonuses.

The most contentious area where strong leadership is required is the environment. Here again Ken applauds the work of the staff at Macarthur Coal for continuing to be committed to the environments, in which they work, being part of the companies overall business approach.

The Talbot Group remains committed to ensuring that our Social Responsibility Statement and those of the companies that we invest in continue to evolve taking into account the local community and the environment.