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1 Sean Cross Manager Health & Safety Tuesday 8th August 2006 ENSHAM RESOURCES PTY LTD “Good Safety Performance” How much is luck? Presentation Outline Introduction to Ensham Resources What is Luck? Health & Safety Performance How do we make Luck? Introduction to Ensham Resources

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1

Sean CrossManager Health & Safety

Tuesday 8th August 2006

ENSHAM RESOURCES PTY LTD

“Good Safety Performance”

How much is luck?

Presentation Outline

Introduction to Ensham Resources

What is Luck?

Health & Safety Performance

How do we make Luck?

Introduction to EnshamResources

2

Idemitsu Kosan* Muswellbrook Coal* Ebeneezer Mine* Ensham Resources

* Boggabri

J-Power LG Industrial

Who are we?Ensham Resources Joint Venture

Where we are?

0 2 4 6

A

B

C

D

DE

E

8 10

K i l o m e t r e s

Train Loadout

Gordonstone MinesTo Gregory &

km

)

(352

stone

of

Port

To

Glad

Rail Spu

r

(12.

6 km

)ML7460

TROPIC OF CAPRICORN

Ensham

Pro

perty

COMETTo ROCKHAMPTON(240km)

(30km

)

To Y

ongala

Pit

To EMERALD (30km)

CENTRAL QUEENSLAND RAILWAY

CAPRICORN HIGHWAYEMERALD AIRPORT

EMERALDTo ANAKIE

GREG

ORY H

IGH

WAY

Ensh

am

Synclin

al

Axis

370mDuckponds

ML7459

66kV

Lin

e

ML70049

YongalaPit

66kV Line from

Lilyvale Sub-station

280m

40m

Measu

res

Coal

Rangal

Subcrop

(1684 ha)

(798 ha)

(6108 ha)

MDL 218MDL 217

Mine Layout

0 2 4 6

A

B

C

D

DE

E

8 10

K i l o m e t r e s

Train Loadout

Gordonstone MinesTo Gregory &

km

)

(352

stone

of

Port

To

Glad

Rail Spu

r

(12.

6 km

)ML7460

TROPIC OF CAPRICORN

Ensham

Pro

perty

COMETTo ROCKHAMPTON(240km)

(30km

)

To Y

ongala

Pit

To EMERALD (30km)

CENTRAL QUEENSLAND RAILWAY

CAPRICORN HIGHWAYEMERALD AIRPORT

EMERALDTo ANAKIE

GREG

ORY H

IGH

WAY

Ensh

am

Synclin

al

Axis

370mDuckponds

ML7459

66kV

Lin

e

ML70049

YongalaPit

66kV Line from

Lilyvale Sub-station

280m

40m

Measu

res

Coal

Rangal

Subcrop

U/G North

U/G Central

Yongala

U/G South

U/G North

U/G Central

Yongala

U/G South

Proposed Mine Layout

3

Coal Production Levels 1994 to 2011

0

2

4

6

8

10

12

14

16

18

20

22

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011

Year

Mt

2006 reduced volume due toQRI and GPA throughputconstraints.

2006 Production

• 9.0M Tonnes Mined

• 120Mbcm Overburden Removed

BLAST PRIME OVERBURDEN

• 9 Mbcm

DOZER PRIME OVERBURDEN

• 7 Mbcm

4

TRUCK & EXCAVATOR OVERBURDEN

• 55 Mbcm total Handled

• 8 Fleets – PC5500 to EX2500/PC3000

DRAGLINE OVERBURDEN• 45 Mbcm Total Handled

• BE8050

• P&H9020

• BE1260

• Dragline 4 - BE 8750-63

• 28Mbcm per annum capacity

What is Luck?

5

Luck is: The chance happening offortunate or adverse events.

So What is Luck? • ‘Lucky it only took the top of his finger off’

• ‘Lucky it hit him in the head’

• ‘Bad Luck follows that bloke – that’s the second finger

• ‘It’s just bad luck’

• ‘I knew that was going to happen’

• ‘Gee, you wouldn’t want to stand beside that bloke’

People Accept Bad Luck?

Bad Luck??

Contributing Factors:

• Procedural Failure

• Human Factor

• Organisation Failure

• Lack of Defences

Bad Luck?? Contributing Factors:

• Procedural Failure – Drive to Conditions

• Human Factor

• Lack of Defences

6

• One second

• One millimetre

• One change of position

• One person with knowledge

Lag Indicators can be corrupted byLuck:

ERPL Health & SafetyPerformance

Lag Indicators – Lack of Luck??

• LTI & LTIFR

• RI & RIFR

• HPI Reports

• First Aid Injury

• Damage

• Interruption to Business Process

Incident Frequency Graph

LTI

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Jul-03

Sep-03

Nov-03

Jan-04

Mar-04

May-04

Jul-04

Sep-04

Nov-04

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Mth / Yr

To

tal

No

.

Incidents Frequency

7

Total Recordable Injuries

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Jul-03

Sep-03

Nov-03

Jan-04

Mar-04

May-04

Jul-04

Sep-04

Nov-04

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

mnth / yr

Nu

mb

er

Incidents

Frequency

Lead Indicators – Making your own Luck

• Risk Management e.g. SLAMS WRAC

• Hazard & Housekeeping Inspections

• Task Observations

• Corrective Actions Close Out

• Incident Analysis and Review

• Explore hard Engineering control options

• Track / record accountabilities & timeframes

Getting Lucky in aWorkplace?

Developing a Safe Workplace

• Understanding and knowing your workplace

• Ensuring you have a good skill set for your

people

• Developing a systematic approach that is workable

• Buy in or ownership of the whole process byyour people

8

• Absolute Management Commitment to the

wellbeing of your people

• Implementing what you have developed

• Measure to manage - audits

Developing a Safe Workplace

Thank You