Category: mining

OHS model law remains divisive

An article in the Australian Financial Review (not available on line) on 16 October 2009 provided some additional legal opinions on the implementation and aims of Australia’s draft Safe Work Bill.

Other than Michael Tooma’s well established thoughts on the draft law, Liberty Sanger of Maurice Blackburn, a law firm with strong trade union links, is said to support the capacity for jurisdictional variations in the harmonisation process. She is quoted as saying there

“need to be regional difference in a country as vast as ours and with such a different industry composition as ours…”

This position is supported by a call from the CFMEU’s General Secretary, Andrew Vickers.  In a media statement released on  15 October 2009, Vickers uses the aftermath of the Gretley mining disaster of  1996 as an indication of the need for OHS laws specific to the mining industry.  He says

“Under the Federal Government’s National OH&S Harmonisation Review, there is a growing view among lawyers and bureaucrats that industry specific safety laws – laws that protect coal and metalliferous miners for example – ought to be scrapped.

The trouble is miners and their families and their union have been left in the dark. We still do not know if the new laws will be tailored to meet the safety needs of our industry. Despite this, the Federal Government is pressing on with its changes.

Yet the reality remains that the safety of miners and their families and the future of our mining communities are too important to ignore. And we have fought too long and too hard for tough safety standards in our industry to give them up now.”

The AFR article also quotes Miles Bastick of Freehills.  The article says Bastick believes that the jurisdictional changes that have so alarmed some are likely to relate to only peripheral issues.  The article says that although Bastick generally supports to the Safe Work Bill

“….he said, that in practical terms, OHS laws were likely to be enforced differently across Australia, even if laws were nationally consistent because of the different prosecution policies of OHS authorities and the approaches of different courts and tribunals that would hear prosecutions.”

SafetyAtWorkBlog would argue that the variations Bastick identifies provide very strong reasons for the Government to take the big step forward of one national OHS law supported by a nationally consistent enforcement policy through a single national safety authority and a coordinated court system.  This may be a fantasy but it remains an option for the Federal government.  Some lawyers believe the Government has not dismissed the  application of the Corporations Act in the OHS field as it has already unified the IR system through a similar process.

Such a national system would achieve many of the aims of the government by

  • reducing red tape across States, businesses and Courts,
  • reducing the number of OHS regulatory authorities saving considerable expenditure from many areas of duplication from administrative staff to publications and advertising,
  • providing a single focus to business for clarity and consistency of information; and
  • still allowing for industry-specific variations that can be coordinated consistently with the general OHS principles.

If Australia is looking for an OHS regulatory system that it expects to last as long as the previous system, all stakeholders may need to look in a slightly longer term and broader perspective than they are currently.

Kevin Jones

Another mining death in Western Australia

Rarely have workplace fatalities gained as much political attention as the current spate of deaths in Western Australia.  Most have related to the iron ore operations of BHP Billiton but, according to one media report, on 8 August 2009

“New Zealander Daniel Williams, 26, died … at the Kanowna Belle mine site near Kalgoorlie, operated by Barrick Gold, after falling from an iron ore path into a hole.”

The media report clearly indicates that there are wider issues in the enforcement of OHS in that State other than just the operations of Barrick Gold.

Not surprisingly the unions are calling for a broader inquiry into safety of the industry.

SafetyAtWorkBlog has heard that Daniel Williams fell over 30 metres while checking a blockage in an ore pass grizzly shortly after midnight.  Perhaps, this should be considered an example of a fall from height moreso than a mining death.

Barrick Gold has been contacted for any additional information

Kevin Jones

BHP Billiton’s safety record is again in the Australian media

BHP Billiton’s production report has generated some OHS-related interest in the Australian business media on 23 July 2009, but not all.  [SafetyAtWorkBlog has written several pieces about BHP Billiton‘s safety record]

The company’s iron ore production has fallen short of its May 2009 guidance.  Iron ore is the only division where production has dropped.  The Age newspaper reports that the five deaths “forced a production slowdown” and noted the Western Australian government’s review of BHP’s safety management.

Malcolm Maiden’s commentary in the same newspaper mentions the BHP production results but describes the five workplace fatalities as “production glitches”.   He writes

“Production glitches for both companies [BHP Billiton & Rio Tinto] might have been handled better if their iron ore operations were merged, as is now proposed.”

Safety management may have been improved.  Rio Tinto’s OHS performance is considerably better but the description of the fatalities as “production glitches” is cold.

This contrasts considerably with the coverage provided to the BHP results by the Australian Financial Review (AFR) which listed the issue on the  front page  with the headline “Poor safety record hits BHP output” (full article not available online without a subscription).  AFR says

“the safety issues overshadowed better than expected results from BHP’s petroleum and  metallurgical coal units….”

There was no overshadowing according to the writers in The Age.

The AFR article identifies a raft of safety matters that illustrates well the OHS status of BHP Billiton and emphasises just how serious the workplace fatalities are.

  • “Tensions with the WA government [over a variety of issues, including safety] have escalated…”
  • Seven BHP workers died in Australia and South Africa in 2008/09.
  • “Eleven BHP staff… died while on the job in 2008.”
  • On 22 July 2009 WA Minister for Mines & Petroleum, Norman Moore, praised BHP’s efforts to improve safety but said “It is very difficult to understand sometimes why fatalities occur within the safety frameworks that operate in most major mining companies…” said on 22 July 2009

Warren Edney, an analyst with the Royal Bank of Scotland and occasional media commentator, spoke in relation to the safety record of BHP’s Pilbara operations, where five workers died.  He said in the AFR article:

“It’s better than Chinese underground coalmining but that’s not a big tick, is it?… In part you’d say that we’ve undergone this mining boom in WA so you’ve got workers who haven’t had the safety brainwashing that other parts of the workforce may have had over the last 10 years.  Part of it reflects that and part of it may be that people get pressed to do things quicker.” [my emphasis]

It seems odd to compare the safety performance of an open-cut Australian iron ore mine with “Chinese underground coalmining”.  Similarly describing safety education and training as “safety brainwashing” is unusual.  SafetyAtWorkBlog has contacted the Royal Bank of Scotland for clarification of Warren Edney’s comments.

The AFR has almost been leading the Australian media pack on reporting of safety management in 2009,  partly due to the OHS harmonisation regulatory program and its impact on business costs.  This may also be due to some of the concerns about increased union activity on worksites under the new industrial relations legislation.  The AFR should be congratulated for discussing the OHS context of BHP’s iron ore production figures and providing a front page prominence.

Kevin Jones

Latest guidance on working alone

Western Australia’s WorkSafe has just released its latest guidance on working alone and it is the most practical look at the hazard from any OHS regulator in Australia.Working_alone cover

Importantly, it differentiates between “alone” and “remote”.  In 1995, when the Victorian First Aid Code of Practice raised the issue of isolation, there was considerable confusion.  How can someone in the metropolitan area be isolated or remote?

  • Undertaking an assessment of first aid needs of a multi-storey building which has cleaners or nightshift working at 2am.
  • Working alone in a petrol station in an outer suburb.
  • (Sadly) showing a potential client a new property in a new real estate development on the fringes of the city.
  • Security guard walking the perimeter of an industrial site
  • Delivering pizzas at 3am
  • Home visits from medical specialists

The WA definition of “alone” is very useful and needs to be kept front-of-mind in OHS policy and procedure production.  It could be used in the review process of existing policies and prores to ensure their applicability.

“A person is alone at work when they are on their own, when they cannot be seen or heard by another person, and when they cannot expect a visit from another worker or member of the public for some time.”

The working alone guidance identifies four industry types that require special support for working alone:

  • Agriculture
  • Pastoral
  • Forestry
  • Mining

Although SafetyAtWorkBlog advocates low-tech control options as much as possible (usually because of increased reliability) thankfully this guidance discusses mobile phones, satellite communications, GPS locators and other communications devices.

Kevin Jones

The real business cost of safety

In February 2009, BHP Billiton forecast a full-year production target of 130 million tonnes of iron ore.  On 6 May 2009, the BHP president, Ian Ashby, has admitted that the company will be a “few million tonnes short”.  The reason?  Workplace deaths.

Ian Ashby was talking at a conference yesterday and pledged to improve safety however BHP, as has been pointed out in previous SafetyAtWorkBlog postings, has professed to place a high value on safety and its staff for some years.  This is not a new issue for the company and that is what makes the statements of the president potentially hollow.

It is useful to look at the areas that Ashby has identified for additional attention for the implication is that this is where the OHS management system has been deficient.  The measures to be adopted, according to media reports, include

  • restricting access,
  • improving traffic management, and 
  • suspending non-essential night-shift work.

In 2008 the spot price for iron ore had reached $US190 per tonne.  In late 2008, the price fell to $US77 per tonne.  BHP is currently negotiating prices for its iron ore so no accurate figure of value is available.  But let’s allocate a conservative figure of 3 million tonnes to the Ashby quote above and perform a rough calculation for the cost of poorly managed OHS in BHP.

      3 million x $US77 = $US231 million; or 

      3 million x $US190 = $US570 million

Following the economic crisis of 2008-09, shareholders are going to be less forgiving on corporate performance.  This has already been seen on the issue of executive salaries but the BHP experience should have shareholders asking why the management activity has not kept up with the safety rhetoric and the corporate values.  Because soon the poor safety practices in the outback mines of Australia will be hitting the shareholders’ pockets and they are justified in expecting answers form the executives.

The trap for shareholders is to forget the deaths of the workers and only hear the commitments of the executives for the future.  Should one believe the future promises when the corporate values of safety have not been upheld in the recent past?

Note: an independent government review was undertaken and a report was handed to the government in early May.  The report has yet to be released and may not be.

Kevin Jones

UPDATE: 8 May 2009

A spokesperson for the West Australian Dept of Mines & Petroleum has advised SafetyAtWorkBlog that the report into BHP was undertaken under Section 45 of the Act and therefore cannot be released unless in the course of a prosecution.  However, just as has occurred with the Melick Report into the Beaconsfield Mine collapse, there is always hope.

Many workplace deaths for BHP Billiton

The Australian Workers Union are justifiably angry at the latest workplace death associated with BHP Billiton.   According to the company’s media statement on 19 march 2009

“We regret to inform that we have been advised by Mines and Port Development (a Joint Venture of Fluor and SKM), who manage our major construction activities, that there has been a fatal accident involving a John Holland employee at the construction site in Newman.”

The company’s own website provides the background to the union’s concern.

25 February 2009

It is with regret that BHP Billiton Iron Ore advises that an employee, Bob Blake, a track machine operator, aged 56, was fatally injured in a rail accident approximately 74km south of Port Hedland at 3.30am on Tuesday 24 February.

25 February 2009

It is with sadness that BHP Billiton Mitsubishi Alliance (BMA) advises that John Barker, an employee of Nixon Communications working at Blackwater Mine, was fatally injured in a motor vehicle accident at the mine late this morning.   

4 September 2008

We regret to advise that a fatality has occurred at BHP Billiton’s Yandi mining operations involving a HWE Mining employee.

26 August 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred during the night at its Yandi mine site, which resulted in the death of an HWE Mining employee.

29 July 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred at approximately 11.00am today at its Nelson Point operations in Port Hedland, which has resulted in the death of an employee.

17 January 2008

It is with deep regret that BHP Billiton reports that a fatality has occurred today at the Cannington silver, lead and zinc operation in north-west Queensland.

In the “Chairman’s Review” for 2008,  Don Argus wrote about the growth in demand for its products from the Asian region:

Our response has been to streamline our business to enable us to produce as much product as fast as possible within the non-negotiable framework of the highest safety and environmental standards.

The CEO, Marius Kloppers, states that even though the company has achieved its seventh consecutive year of “record attributable profit”

While we can report financial success, I regret to report we have not performed well on safety. In FY2008, 11 of our employees died at work. Many more lives will have been impacted, some forever, by these tragic and avoidable events. We have reflected deeply on what more we must do to reach our goal of Zero Harm. In FY2009, we are making even greater efforts to improve our safety performance.

As shown above, the FY2009 performance statistics are not looking too good.

In the 2008 Corporate Governance Summary, the Directors are lauded.

The non-executive Directors contribute international and operational experience; understanding of the sectors in which we operate; knowledge of world capital markets; and an understanding of the health, safety, environmental and community challenges that we face.

In its 2008 Annual Report under Risk Factors, safety is listed within assets.  It reads like an acceptance that contractors are not living up to their OHS obligations or BHP Billiton standards.  This rings hollow as contractor management should be an area that a company of such size, resources, longevity and experience, manages in an exemplary fashion.

Some of our assets are controlled and managed by joint venture partners or by other companies. Some joint venture partners may have divergent business objectives which may impact business and financial results. Management of our non-controlled assets may not comply with our management and operating standards, controls and procedures (including health, safety, environment). Failure to adopt equivalent standards, controls and procedures at these assets could lead to higher costs and reduced production and adversely impact our results and reputation.

Later in the Risk Factor chapter:

Despite our best efforts and best intentions, there remains a risk that health, safety and/or environmental incidents or accidents may occur that may negatively impact our reputation or licence to operate.

The company is active though.  It has a Code of Conduct that applies to everyone, including contractors.  In it there is a quick test:

If you are in doubt about what to do or whether to speak up, it may help to do the Business Conduct Quick Test by asking yourself some simple questions:

  • The values test: Does it fit with the values in our Charter?
  • The safety test: Could it directly or indirectly endanger someone or cause them injury?
  • The law test: Is it legal and in line with our policies and standards?
  • The conscience test: Does it fit with my personal values?
  • The newspaper test: If the story appeared in the paper, would I feel comfortable with the decision?
  • The family test: What would I tell my partner, parent or child to do?
  • The ‘feel test’: What’s my intuition or ‘gut feel’? If it ‘feels’ bad, then it probably is bad!

Failing any of the above ‘tests’ indicates that you need to talk with someone about the concern you have.

It’s not that BHP Billiton seems to have fallen into a heap in the last couple of years.  Following a major explosion in 2004 at its remote Boodarie Hot Briquette Iron (HBI) plant in Western Australia, it was fined $200,000 plus costs for “failing to provide and maintain a working environment in which employees were not exposed to hazards.”   The explosion killed one worker and injured several others.

The court case revolved around the May 2004 explosion at the Port Hedland Boodarie HBI plant where one man died, and others received severe burns.

The prosecution case was that BHP Billiton undertook two activities, with the potential to cause an explosion, together without a proper risk assessment. This was considered to be a serious and substantial breach of the obligation to provide and maintain a safe working environment.

There is much more OHS performance information available at the BHP Billiton website but it is worth ending this post with the OHS statement included in the Code of Conduct:

BHP Billiton is committed to achieving leading industry practice in health and safety.

In all cases, we will aim to meet or exceed applicable legal and other requirements, as we believe that all accidents and occupational illnesses and injuries are preventable.

Our priority is to ensure that all our people – regardless of where they work or what they do – return home safely.

Kevin Jones

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