MINE SAFETY A CEO’s PERSPECTIVE
Queensland Mining Industry
Health & Safety Conference
AUGUST 2000
Robert D. Humphris
MISSION STATEMENT
Peabody Resources Limited produces coal:
Safety,
Productively, in an
Environmentally responsible &
Cost-competitive manner
while participating in the development of related opportunities that reflect its core strengths & build its future returns.
VISION STATEMENT
Peabody Resources Limited will strive
“To be the most successful coal based company.”
PEABODY OVERVIEW
World’s largest coal company– No. 1 in the U.S., top 5 in Australia
– 176 million tons sold in fiscal year 1999
– Leader in innovative coal & emissions allowance trading & coal contract restructuring
Large customer base– Serves more than 180 North American generating plants
– Fuels more than 9% of U.S. electricity
– Fuels 2.5% of world electricity
Top 10 U.S. power marketer– Leader in power contract restructuring
– Provider of risk management services
US Operations
Diverse Portfolio of Operations
North Antelope/Rochelle
Big Sky
North Antelope/Rochelle
Seneca
KayentaBlack Mesa
Lee Ranch
Camp No. 1 & 11Patriot & Freedom
Martwick
Lynnville
Hawthorn
Federal No. 2
Big Mountain No. 16Lightfoot No. 2Robin Hood No. 9Harris No. 1Rocklick
MarissaPeabody HQ
Dominion Terminals 30%
Gibraltar P&L
Black Beauty Mines (82%)Air Quality (IN)Columbia (IN)Enterprise (IN)Farmersburg (IN)Francisco (IN)Miller Creek (IN)Somerville North (IN)Viking (IN)Westfork (IN)Big Ridge (Arclar) (IL)Wildcat Hills (IL)Eagle Valley (IL)Riola No. 1 (IL)Riola No. 2 (IL)
Caballo
AUSTRALIAN OPERATIONS
Queensland
NSW
NorthernTerritory
Western
AustraliaSouthAustralia
Victoria
BengallaRavensworth
Narama
Warkworth
Export
Newcastle
Brisbane
Sydney
Peabody’s Production BaseTonnes 2000*
(millions)
Total Peabody’s Tonnes ShareRavensworth/Narama Mine 6.0 5.0Warkworth Mine 6.1 2.7Bengalla 4.0 1.6Moura 5.5 3.0 Total 21.6 12.3
6 million tonne/year Bengalla Mine opened April 1999
Serves Taiwan, Japan, Korea, China & India
Serves Macquarie Generation in NSW
Acquired 5.5 million tonne/year Moura Mine in August 1999*Tonnage represent PRL’s shares of joint ventures
(50% Namara, 43.75% Warkworth, 40% Bengalla, 55% Moura)
MouraGladstone
Export
PRL Corporate Structure
PEABODY RESOURCES LIMITED
Coal
Trading
Domestic
Mines
Export
Mines
ContractingUndeveloped
Deposits
Ravensworth WestPRL 100%
85Mt reservelow sulphur domestic
Ravensworth
PRL 100%
4.0Mtpa
until 2000
Warkworth
PRL 43.75%
6.1Mtpa to
7.5Mtpa by 2005
Mining ServicesPRL 100%
Contract Mining /Tunnelling andHighwall Mining
Coal Trade
Coal Trading
Commencing
in 2000
Bengalla
PRL 40%
4.0Mtpa
7.2Mtpa by 2004
Moura
PRL 55%
Acquired Aug 1999
5.0Mtpa
5.5 Mtpa by 2002
Seam Gas
Narama
PRL 50%
2.0Mtpa
until 2012
Ravensworth East
PRL 100%
1.7Mtpa
2001 - 2003
SAFETY VISION STATEMENT
Peabody Resources Limited has a continuing corporate commitment to be a leader in health and safety.
We will achieve this by:
leadership in the areas of health and safety management empowering people within the business units to own and action health and safety issues recognising individual and team achievements encouraging teamwork to achieve continuous improvement undertaking an annual corporate review of our progress
PERSONAL VIEWPOINT
GOOD SAFETY = MORAL OBLIGATION + GOOD BUSINESS
MORAL OBLIGATION
“At Peabody we would like all our employees and their families to truly believe that they are entitled to return home to their families in the same good health that they went to work”
GOOD BUSINESS
- Lower Workers Comp
- Reduced Overtime
- Business Opportunities
- Community Perceptions
Peabody Resources Limited a holding company
Business Units are totally autonomous businesses with separate boards (in most areas)
THE THREE C’s
Coach Counsel Count / Control the Money !
PRL’s CORPORATE ROLE
1. Safety to be top of the Agenda at any reporting session
2. Safety Statistics to be prepared in a common format
3. All business units to use a management system and audit
4. Ensure appropriately structured incentive schemes
5. Annual Corporate Review through PRL Safety Summit
6. Common Safety reporting system
WARKWORTH MINING LIMITEDSAFETY STATISTICS - JULY 2000
Current Business PriorMonth Year to Business
Date Year
Average Number of Employees 386 385 387 Total Hours Worked 74,822 303,840 902,640 Injury/Damage/Potential Accident Reports 60 224 437 First Aid Treatments 28 130 332 Medical Treatments 3 6 24 Medical Treatments - Contractors 0 0 1 Medical Treatment Frequency Rate 40 20 27 Lost Time Injuries 1 2 10 Lost Time Injury Frequency Rate 13 7 11 Lost Time Injury Severity Rate 53 36 675 Lost Time Injury Duration Rate 4 6 61
Safety StatisticsSafety Statistics4 week period ending 29/07/004 week period ending 29/07/00
Industry Standard Basis Total Site
CurrentMonth
BusinessYear To
Date
PriorYear
*
CurrentMonth
BusinessYear To
Date
PriorYear
Average No. of Employees 123 124 107 170 192 204
Total Hours Worked 22,140 96,210 254,295 29,868 143,471 445,961
Injury / Damage/ Potential Hazard Reports 16 61 180 16 64 200
First Aid Treatments 0 4 14 0 6 23
Medical Treatments 0 0 2 0 0 4
Medical Treatment Frequency Rate (MTFR) 0 0 7.9 0 0 9.0
Lost time Injuries (LTI’s) 0 0 0 0 0 0
LTI Frequency rate (LTIFR) 0 0 0 0 0 0
LTI Severity Rate 0 0 0 0 0 0
LTI Duration Rate 0 0 0 0 0 0
PRL’s CORPORATE ROLE
1. Safety to be top of the Agenda at any reporting session
2. Safety Statistics to be prepared in a common format
3. All business units to use a management system and audit
4. Ensure appropriately structured incentive schemes
5. Annual Corporate Review through PRL Safety Summit
6. Common Safety reporting system
MANAGEMENT SYSTEMS & AUDIT
RAVENSWORTH - NSCA 5 STAR
Audit - Self
- Risk Management Solutions
WARKWORTH - NSCA 5 STAR + Audit
BENGALLA - NOSA + Audit
MOURA - Developing Management Systems
- Evaluating NOSA and NSCA
MINING SERVICES - ICSRS - International Contractors Safety Rating System (US)
- Audit - DNV
PRL’s CORPORATE ROLE
1. Safety to be top of the Agenda at any reporting session
2. Safety Statistics to be prepared in a common format
3. All business units to use a management system and audit
4. Ensure appropriately structured incentive schemes
5. Annual Corporate Review through PRL Safety Summit
6. Common Safety reporting system
PRL SAFETY SUMMIT 1998
Opening Address
Bob Humphris: Peabody Safety Performance - An Overview of the last 12 months. The Need for Change, Why is it Important ?
Guest Speaker
The Hon. Bob Martin, Minister for Mineral Resources
Presentations
The Bengalla Approach to Risk AssessmentDevelopment of Alcohol & Other Drugs ProceduresP.A.S.S. ImplementationOur New Accident/Incident Reporting System New OH&S Performance Indicators, What are we Changing to & Why ?Healthy Lifestyle - Personal Accountability vs Why Should I Worry, the Company is
Accountable
Summary & Close - Bob Humphris
PRL SAFETY SUMMIT 1999
Emergency Procedures - John Kay
- Opening AddressBob Humphris
- Guest SpeakerBill Bippus - Safety & Training Manager, Black Mesa & Kayenta Mines
- Introduction to the Workshops
WorkshopsChairman - Afternoon Session - John Wasik
Workshops Feedback
Summary & Close
Bob Humphris, John Wasik, Ian Craig, Allan Rossiter, Paul Davis, Roland Lee & Bill Bippus
PRL SAFETY SUMMIT 1999continued
WORKSHOP OBJECTIVES:
• To share information• To challenge some ideas• To promote fresh thinking• To involve summit participants
QUESTIONS TO BE ANSWERED:
1. What have we learned from the guest speakers presentation?What are they doing in the US that has had an impact on health & safety?
2. From this list is their anything which we should consider for implementation on our site?Is there anything we believe we can do better?Is there anything we believe we should start doing?Is there anything we believe we should stop doing?
OPTIONAL QUESTIONS
3. Is there anything we are doing on our site that we want to share with the summit?4. What are we going to do to share the learnings from this workshop with others on our site?5. How can we make this summit better next year?
PRL’s CORPORATE ROLE
1. Safety to be top of the Agenda at any reporting session
2. Safety Statistics to be prepared in a common format
3. All business units to use a management system and audit
4. Ensure appropriately structured incentive schemes
5. Annual Corporate Review through PRL Safety Summit
6. Common Safety reporting system
SAFETY REPORTING SYSTEM
Lotus Notes Accident Data Base
Across all business units
All injury/damage/potential hazards
Reports compiled by operators/technicians/team leaders
Feedback - various
CURRENT ISSUES
Aging Workforce
General Health - blood pressure
- cholesterol
- flexibility
- body fat
- skin cancers
Slips & Trips
Lower Back Problems
Analysis of LTI - By Type
TYPE OF INJURY - 1998
TYPE OF INJURY - 1999
Back31%
Shoulder16%
Other32%
Broken Bones
8%Knee13%
Back39%
Broken Bones11%
Knee25%
Other17%
Shoulder8%
36 29
Analysis of LTI - By Duration
DURATION OF INJURY - 1999
Less Than 1 Week35%
2 Weeks to 1
Month19%
Over 1 Month38%
1 to 2 Weeks
8%
DURATION OF INJURY - 1998
Less Than 1 Week
Over 1 Month
2 Weeks to 1
Month
1 to 2 Weeks
16.7%
50.0%
2.7%
30.6%
SOME OF OUR ACHIEVEMENTS
Drug and Alcohol Policies
Innovations - quieter machines
- dragline bucket manipulator
- truck access (pull-down ladders)
- conveyor roller changeout (award recognition)
- hydraulic truck seats (award recognition)
Safety Activity Days/Healthy Lifestyle Presentation
MINEX Process
Awards - Open Cut Mines Rescue
- Sentinels of Safety
Bengalla 761 days LTI free and culture