Damien Hawcroft October 2012
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1 UNSW MINING ENGINEERING FACULTY PRESENTATION MINING INDUSTRY BLINDNESS TO CATASTROPHIC RISK PEOPLE SAFETY Vs SYSTEMS SAFETY Damien Hawcroft October 2012
2 WELCOME TO COUNTRY MY STORY
3 LAST 20 YEARS Carrying out Critical Risk Reviews since 1992 Critical Risk Reviews focused on property damage & business interruption Company reviews over 170 mining, processing and port operations around the world, annually Sites include Australia / China / Canada / Europe / Indonesia / Mongolia / Namibia / South Africa / South America / USA / Other All reviewers have extensive mining operational experience
4 MY STORY S S FINDINGS The word boredom should not be part of any vocabulary Focus on the good bits of life If you want to feel good, do good Seeking advice enables you to see things more clearly & rationally Hope for positive outcomes and actively work towards them Show compassion to workers at the coal face Humility is a strength Ego is a weakness
5 RECENT MINING INCIDENTS AUSTRALIA - Queensland mine floods > $2 B AUSTRALIA - Olympic Dam shaft failure > $200 M AUSTRALIA - Curragh dragline boom failure - $25 M 2009 USA - Massey washery fire - $75 M 2010 USA - Upper Big Branch 29 Fatalities 2010 NZ - Pike River 29 Fatalities AUSTRALIA - Queensland mine floods > $ 2 B (+) 2011 AUSTRALIA - Ulan mine water inrush ~ $68 M HAWCROFT CONSULTING INTERNATIONAL
6 RECENT MINING INCIDENTS 2011 AUSTRALIA - South Blakefield fire - $300 M (?) 2011 AUSTRALIA - Loy Yang conveyor / drive fire - $27 M 2011 AUSTRALIA - derailment damage to 4km of rail. Cost 6 to 9 days at $30M / day, i.e. ~ $200M AUSTRALIA - Moranbah North Roof Fall interruption of approx. 12 weeks AUSTRALIA Yallourn Brown Coal Mine in Victoria Mine flood??? HAWCROFT CONSULTING INTERNATIONAL
7 INCIDENT SUMMARY NEVER SAY NEVER IT WILL HAPPEN! HAWCROFT CONSULTING INTERNATIONAL
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53 BLINDNESS TO RISK IF YOU ONLY HEAR GOOD NEWS START TO WORRY! NEVER JUDGE A BOOK BY ITS COVER! 53 Hawcroft Consulting International
54 Mine X Findings People Safety Vs Systems 54 Hawcroft Consulting International
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56 Majority of accidents are related to Slip & Fall, Material Handling and Majority of accidents takes place during day shift on Tuesdays 50% Of accidents are sprains / strains due to the slips and falls. Suggestion: Focus Tuesdays on housekeeping and access to and from work areas this will ensure at least 40% reduction in accidents. 56
57 Hydraulic coal shovel operator s cab = poor housekeeping Hawcroft Consulting International 57
58 Hydraulic coal shovel poor housekeeping Hawcroft Consulting International 58
59 Hydraulic coal shovel s undercarriage oil / diesel / coal / dust build up Hawcroft Consulting International 59
60 Dragline s LV Room Poor Housekeeping Hawcroft Consulting International 60
61 Dragline swing shafts excessive oil leaks Hawcroft Consulting International 61
62 Highwall toe distance to pipes, park bay and foam fire suppression trailer Hawcroft Consulting International 62
63 1 st July - Monday pit - poor mine design and conditions Hawcroft Consulting International 63
64 3 rd July Wednesday pit stopped due to poor mining standards Hawcroft Consulting International 64
65 Reclaim tunnel poor housekeeping Hawcroft Consulting International 65
66 Reclaim tunnel poor housekeeping Hawcroft Consulting International 66
67 Reclaim tunnel poor housekeeping failed idler Hawcroft Consulting International 67
68 Reclaim tunnel poor housekeeping failed idler Hawcroft Consulting International 68
69 Conveyor - gravity tower poor housekeeping Hawcroft Consulting International 69
70 Tail poor housekeeping Hawcroft Consulting International 70
71 Tail poor housekeeping Hawcroft Consulting International 71
72 Conveyor tail / transfer - spillage Hawcroft Consulting International 72
73 Conveyor poor housekeeping, fire risk & structural overload risk Hawcroft Consulting International 73
74 Conveyor poor housekeeping and structural overload risk Hawcroft Consulting International 74
75 Train Load Out Silo power pack room poor housekeeping Hawcroft Consulting International 75
76 Missing hose no water supply Hawcroft Consulting International 76
77 BLINDNESS TO RISK CATASTROPHIC EVENT FINDINGS 77 Hawcroft Consulting International
78 TEXAS CITY REFINERY DISASTER On March 23, 2005, afireandexplosion occurred at BP's Texas City Refinery in Texas City, Texas, killing 15 workers and injuring more than 170 others. HAWCROFT CONSULTING INTERNATIONAL
79 TEXAS CITY REFINERY DISASTER THE PRINCIPAL FINDING : Was that BP Management had not distinguished between occupational safety (i.e. slips-trips-and-falls, driving safety, etc.) Vs process / systems safety (i.e. design for safety, hazard analysis, material verification, equipment maintenance, process upset reporting, etc.). HAWCROFT CONSULTING INTERNATIONAL
80 DEEPWATER HORIZON DISASTER The Deepwater Horizon drilling rig explosion occurred on April 20, 2010 in the Gulf of Mexico. The explosion killed 11 workers and injured 17 others and resulted in one of the USA s worst environmental disasters. HAWCROFT CONSULTING INTERNATIONAL
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84 DEEPWATER HORIZON DISASTER BP boss Tony Hayward said: Safety is a core value of the oil and natural gas industry. We have a strong safety performance record, and we continue to improve upon it. According to data from the Mineral Management Service (MMS), the overall safety and environmental performance on the U.S. Outer Continental Shelf (OCS) has shown steady improvement over the past decade....recordable lost workday incident rates fell from 3.39 percent in 1996 to 0.64 percent in 2008 a reduction of more than 80 percent. Westall noted in her letter that "all eight BP-operated Gulf of Mexico production facilities" received safety awards from MMS in 2009." HAWCROFT CONSULTING INTERNATIONAL
85 DEEPWATER HORIZON DISASTER Fortune's investigation shows Perhaps the most crucial culprit: an emphasis on personal safety (such as reducing slips and falls) rather than process / systems safety (avoiding a deadly explosion). Consider this: BP had strict t guidelines barring employees from carrying a cup of coffee without a lid -- but no standard procedure for how to conduct a "negative-pressure test" HAWCROFT CONSULTING INTERNATIONAL
86 MASSEY UPPER BIG BRANCH The Upper Big Branch Mine disaster occurred on April 5, 2010 about 1,000 feet (300 m) underground d at Massey Energy's Upper Big Branch longwall operation at Montcoal in Raleigh County West Virginia. Twentynine out of thirty-one miners at the site were killed. HAWCROFT CONSULTING INTERNATIONAL
87 MASSEY UPPER BIG BRANCH Massey CEO stated Safety has always been of paramount timportance at tm Massey and cited various statistics the amount of time lost to accidents at Massey has bested the industry average for 17 of the last 19 years. Massey s non fatal days lost record has shown consistent t improvement and was better than the industry average. HAWCROFT CONSULTING INTERNATIONAL
88 MASSEY UPPER BIG BRANCH Governor s Independent Investigation Panel Upper Big Branch Mine Disaster 19 May 2011 Conclusion : The April explosion was not something that happened out of the blue, an event that could have been anticipated or prevented. It was, to the contrary, a completely predictable result for a company that ignored basic safety standards and put too much faith in its own mythology HAWCROFT CONSULTING INTERNATIONAL
89 BLINDNESS TO RISK The presence of an effective personal safety management system does not ensure the presence of an effective safety management system Source : The Report of the BP U.S. Refineries Independent Safety Review Panel. Jan 2007 of the Texas City Refinery Disaster HAWCROFT CONSULTING INTERNATIONAL
90 BLINDNESS TO RISK - REASON MINES ACT RISK MANAGEMENT OHSA 1970 to 2010 (+) MINING INDUSTRY ENVIRONMENT LITIGATION CORPORATE GOVERNANCE FATAL RISK STANDARDS Hawcroft Consulting International 90
91 BLINDNESS TO RISK - REASON Systems Safety People Safety FUTURE MINING INDUSTRY 91 Hawcroft Consulting International
92 BLINDNESS TO RISK - REASON Systems Safety People Safety SUSTAINABLE FUTURE MINING INDUSTRY 92 Hawcroft Consulting International
93 BLINDNESS TO RISK - REASON 93 Hawcroft Consulting International
94 BLINDNESS TO RISK - REASON 94 Hawcroft Consulting International
95 LESSONS TO LEARN Employ Systems Safety Officers Define Critical Risks and complement these Risks with Principal Hazard Management Plans / Trigger Action Response Plans Train employees thoroughly in these Plans and give Challenge Tests More education in Change Management Carry out practical Response Exercises / Training Register / track / review monthly - Reportable Incidents / investigation reports Actions (Prioritise / By / When)
96 REFERENCES BP Texas City Refinery Disaster - Andrew Hopkins CCH Press BP Texas City Refinery Disaster - Investigation Governor s Independent Investigation Panel Upper Big Branch Mine Disaster 19 May 2011 Fire in the Night The Piper Alpha Disaster Stephen McGinty - Pan Disastrous Decisions The Human and Organisational Causes of the Gulf of Mexico Blowout - Andrew Hopkins CCH Press
97 THANK YOU
Covers. Now with 75 1/4" [1910] Grade Level Box BULK mm 74.08in BODY DESIGN BODY SPECIFICATIONS FEATURES TESTING CRITERIA
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