Industry News

Safe Work Australia has released its December Notified Fatalities Report, providing a national summary of work-related traumatic fatalities that were reported under Australian work health and safety jurisdictions.

Besides providing an estimate of the numbers of work-related deaths, the report also includes details of the types of incident involved; the industry of the workplace at which the fatalities occurred; and the industry of the decedent’s employer. Only the most recent report is presented — this will include any necessary revisions.

There were 14 work-related notified fatalities reported during December 2011 — 13 male workers and 1 male bystander. In comparison, there were 13 work-related notified fatalities in the previous month, November 2011, and 17 fatalities reported in December 2010.

The report can be found here

Queensland has announced it will expedite the development of three major projects with significant economic benefits for the state.

Deputy Premier and Minister for State Development Jeff Seeney announced that the Co-ordinator General Barry Broe had approved two projects to proceed and relased the environmental impact for a third.

The State Government’s move has seen Pacific National’s freight terminal in Townsville and a change to the rail rout to service BHP Billiton Mitsubishi Alliance’s Caval Ridge Coal Mine receive approval to proceed, while the EIS for Nathan Dam has been released for public comment.

Approval of the Townsville freight terminal expansion follows the signing of a 10 year contract between Pacific National, Xstrata Copper and Queensland Rail to transport magnetite concentrate from the Ernest Henry mine in Cloncurry to the Port of Townsville. 

The Queensland Government has opened the environmental impact statement (EIS) for the proposed multi-billion dollar Arrow liquefied natural gas (LNG) plant in Gladstone.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the release of the EIS was a major milestone for the proposed 300-hetare LNG project on Curtis Island, in the Port of Gladstone.

Coordinator-General Barry Broe said it was a large, complex project involving local, state and federal government approval processes and one which would potentially impact on a number of environmental values. 

“Consequently, in June 2009 the Coordinator-General declared it a ‘significant project’ for which an EIS is required,” Mr Broe said. 

The Curtis Island facility is expected to have a capacity of up to 18 million tonnes of LNG per annum, through a staged development. 

A nine kilometre-long feed gas pipeline would be needed from the Gladstone City Gate, traversing Port Curtis via a tunnel under the seabed. 

Dredging of the sea bed of Port Curtis and the riverbed at the mouth of the Calliope River is also required to provide access to marine facilities on Curtis Island, and the mainland. 

Coordinator-General Barry Broe said he encouraged members of the community to have their say on the EIS. 

The EIS will also be on public display (subject to local opening hours) between 16 April and 28 May 2012, at: 

• Agnes Water Library: 3 Captain Cook Drive, Agnes Water 
• Boyne Island Library: Cnr Wyndham and Hampton Drives, Boyne Island 
• Calliope Library : Don Cameron Drive, Calliope 
• Gladstone Regional Council, 101 Goondoon Street, Gladstone 
• Gladstone Regional Library: 39 Goondoon Street, Gladstone 
• Miriam Vale Library: 34 Roe Street, Miriam Vale 
• National Library: Parkes Place, Canberra 
• State Library of Queensland, Cultural Centre, Stanley Place, South Bank, Brisbane 

All public submissions must be in writing and received by the Coordinator-General via by 5pm on Monday 28 May, 2012. 

Post: The Coordinator-General 
c/o EIS Project Manager – Arrow LNG plant 
Significant Projects Coordination 
Department of State Development, Infrastructure and Planning 
PO Box 15009 
City East Qld 4002 

The Joint Authority for the Commonwealth-Western Australia Offshore Area has granted a variation to the conditions of the retention leases of the Woodside-operated Browse LNG Project to allow more time to complete necessary studies, approvals and project design.

The Browse Joint Venture is now required to be in a position to apply for a production licence and take a final investment decision during the first half of 2013, instead of mid-2012. The Joint Venture has not sought an extension of the overall term of the retention lease, which remains set to expire in December 2014.

“In granting the variation, Minister Moore and I recognise the complexities of the Browse LNG development and the need to ensure that the Browse Joint Venture has sufficient information to make a sound decision on the commercial viability of the project,” Federal Minister for Resources and Energy Martin Ferguson said.

“The Browse LNG Project will require a very large capital investment – for comparison, the recently announced Ichthys Project was valued by the proponents at US$34 billion, which is a significant investment by anyone’s standards.

“This decision enables the Joint Venture to address the barriers to commercialising the project while also ensuring the most efficient development of the Browse gas reserves.”

The retention leases cover the Torosa, Calliance and Brecknock gas fields in the Browse Basin, offshore of Western Australia. The fields are estimated to contain around 15.5 trillion cubic feet of gas and 417 million barrels of condensate.

Browse Joint Venture partners Woodside, BHP Billiton, BP, Chevron and Shell are progressing the regulatory approvals for a 12 million tonnes per annum LNG development to be located at the proposed Kimberley LNG Precinct at James Price Point, 60 kilometres north of Broome. 

Leading Australian transport and logistics provider, Toll Group, has heightened its reputation as an industry leader in environmental sustainability following a major acquisition of Isuzu CNG (Compressed Natural Gas)-powered medium duty trucks.

Toll IPEC's recent order of 42 Isuzu FSR 700 CNG models adds to the company's earlier CNG purchases and brings the total number of Isuzu CNG trucks in Toll's fleet to more than 70.

The latest acquisition is the largest single CNG fleet purchase since the launch of Isuzu's second generation CNG models in 2009.

CNG-powered vehicles show reductions of around 50 per cent of nitrogen dioxide (NOx), 98 per cent of volatile organic compounds (VOCs) and emit virtually zero PM (particulate matter) when compared to similarly sized conventional diesel trucks.

Toll IPEC General Manager, Rodney Johnston, said the CNG additions to the fleet would assist in helping reach environmental goals, while helping provide operational efficiencies.

"One of Toll Group's key objectives is to look at ways to manage the environmental impacts within our facilities and operations, and act to reduce our rates of emissions, energy and waste," Mr Johnston said.

Victoria has lashed out at the proposed Commonwealth OH&S harmonisation laws, saying that the legislation could cost the state more than $3.4 billion over the next five years.

Premier Ted Baillieu said the reform would compromise the state’s productivity and adversely affect its small business sector.

"The proposed laws do not deliver on the intent of the COAG reform agreed to in 2008 which aimed to reduce the cost of regulation and enhance productivity and workforce mobility," Mr Baillieu said.

"It is estimated that it will cost Victoria $812 million to transition to the new model and $587 million a year in the first five years in ongoing costs to businesses.”

Assistant Treasurer Gordon Rich-Phillips said any move to harmonise OH&S laws should decrease costs for business while still delivering a safe work environment.

The findings come from a report released by PricewaterhouseCoopers (PwC).

"The PwC assessment shows only three of 20 proposed changes would have a positive impact on Victorian businesses," Mr Rich-Phillips said.

The report can be found here 

The Northern Territory Government has announced it has rejected a national agreement that would see an increase truck and trailer charges that would take effect from 1 July.

Under the national agreement, transport ministers agreed to increase some registration changes by more than 30 per cent.

However, Northern Territory Minister for Lands and Planning, Gerry McCarthy, announced that the territory government had no intention on implementing the national registration charge increase.

Australian Trucking Association (ATA) chairman David Simon welcomed the announcement, saying he will urge other member associations to push other governments to follow the territory’s approach.

“Minister McCarthy has recognised that many trucking operators simply cannot afford to pay the extra fuel tax and increased registration charges. He has also recognised that reducing A-trailer charges will encourage operators to use modern, safer truck combinations like B-doubles and BAB-quads,” David said.

 
“The ATA has not given up on its efforts to convince ministers to change their minds about the increase. In the coming weeks, we will work with our member associations to urge ministers to bring every state and the Australian Government’s fuel tax into line with the Northern Territory decision.”

Melbourne-based Cardia Bioplastics has launched the world’s first food contact compliant and fully recyclable container, making shipping and transport of food easier for the logistics industry.

The Bio-Containers use fully recyclable resins and Cardia is implementing a marketing strategy to launch the Bio-Containers globally.

In the first step of this strategy, Cardia is currently working with both a US manufacturer of plastic containers and a major nutritional supplement company to launch the new Bio-Containers into the US market.  The containers are completely compliant with the US Food and Drug Administration (FDA) and EU regulatory requirements on materials and articles intended to come into contact with food.

Cardia's Bio-Containers have been independently tested and validated to comply with the stringent performance requirements of the nutritional supplement and cosmetics industries. The Bio-Containers are well-suited to store vitamins, medical tablets, food and nutritional supplements, and cosmetic products. Bio-Containers offer excellent physical properties and shelf life for the stored products. In addition to their excellent performance, Bio-Containers require less oil to produce and have a more favourable environmental profile and carbon footprint than conventional plastic containers.

Entries for the Safe Work Awards 2012 have now opened, which will acknowledge and reward the innovators and drivers of work place safety in South Australia.

South Australian Minister for Industrial Relations, Russell Wortley, has publically called for entries for the awards.

“The Safe Work Awards bring deserved attention to companies and individuals striving to help their workmates,” Mr Wortley said.

This year’s award categories are:

• Best workplace health and safety management system
• Best solution to an identified workplace health and safety issue
• Best workplace health and safety practice(s) in a small business
• Best individual contribution to workplace health and safety.

Winners in the four categories are automatically nominated for the National Safe Work Australia Awards.

Entries for the awards close at 5pm on Friday 13 July

Information about the Safe Work Awards and the online entry form can be found at www.safework.sa.gov.au/sw2012/awardentry

The Victorian Government has announced it has identified a western option for the proposed Kilmore-Wallan bypass route following extensive community consultation.

"We made a commitment to identify a western option and we are honouring that commitment," State Minister for Roads Terry Mulder said.

"The input from community members who attended shopfronts in Kilmore and Wallan was invaluable in helping to determine the location for this new option."

The option proposes a bypass located west of Kilmore, parallel to Paynes Road and Kings Lane.

"The option minimises impacts on existing and future residential areas, provides connections into the local road network and connects directly to the Northern Highway and Broadford-Kilmore Road, north of Kilmore," Mr Mulder said.

"This option will be fully investigated along with the four options to the east of Kilmore. Once the investigations have been completed, a comprehensive analysis can be made as to which alignment best meets the needs of Kilmore and Wallan."

Revised traffic modelling will be undertaken as part of the investigations, which will take into account the latest information on growth in the area, particularly to the south of Wallan.

The Australian Competition and Consumer Commission (ACCC) has announced it will work cooperatively with the wheat industry and port terminal operator Viterra to improve the proposed capacity allocation arrangements for port terminal services in South Australia for the bulk export of wheat.

The announcement comes after Viterra proposed an auction system to allocate port terminal capacity among competing exporters, as required by its access undertaking.

"The ACCC acknowledges the substantial work that Viterra has undertaken in preparing the proposed auction system and in consulting with industry," ACCC chairman Rod Sims said.

However, the lacklustre results of a similar auction scheme in Western Australia have sparked concerns, with the ACCC citing a number of problems, including large volumes of capacity not being allocated.

In issuing an auction objection notice, Mr Sims said "this is an industry-wide problem and more time is required to properly explore potential solutions."

"The ACCC acknowledges that Viterra has approached its obligations under its access undertaking in good faith and the concerns the ACCC has identified are largely industry issues, rather than a reflection on Viterra’s approach."

The ACCC will work with Viterra and the industry to ensure that the best possible auction system can be introduced in SA for the benefit of the bulk wheat exporting industry and the wheat industry more broadly.

WorkSafe Victoria has launched its inspector recruitment campaign, with roles available across Melbourne and regional Victoria.

WorkSafe’s Executive Director of Health and Safety, Ian Forsyth, said inspectors played a crucial role in ensuring Victorian workers returned home safe at the end of the day.

“Our main priority is to ensure the health and safety of Victorian workers is not compromised,” he said.

“We do this by checking in to see if employers are complying with the law, providing advice on how to make workplaces safer and undertaking enforcement action when necessary.”

“We’re looking for people with fantastic communication and problem solving skills and have the ability to work through difficult situations when they arise.”

Mr Forsyth said the WorkSafe inspectorate had an outstanding reputation with employers and health and safety representatives they deal with, which reflected their ability to develop and maintain strong relationships.

“We encourage those who are passionate about workplace health and safety and want to be part of a team that plays an important role in making Victorian workplaces the safest they’ve ever been to apply.”

WorkSafe inspector recruitment campaigns usually take place once a year and are advertised in major metropolitan and regional newspapers and online. Selection is extremely competitive.

The incidence of heavy fines and work place safety incidents shows that the construction sector should improve its safety record, according to WorkSafe Victoria. The call comes after two incidents in late March that could have resulted in an injury or fatality.

WorkSafe’s General Manager of Operations, Lisa Sturzenegger, said two of three recent construction industry prosecutions involved scaffolding at the site of a major collapse at Prahran in 2009.

Keilor company, SMS Scaffolding Pty Ltd, faced the Melbourne Magistrates court on Monday and was not held responsible for the collapse of the scaffold which injured three people and caused havoc in Commercial Road in February 2009.

“The opportunity for industry is for all employers and workers to look closely at how safety improvements can reduce the chance of injuries so the commercial and personal risk of legal action and the associated costs are doing arise.”

Ms Sturzenegger said while WorkSafe would continue to work closely with the industry to ensure constructive outcomes, individual employers and workers had well-established legal responsibilities.

“No matter what are the pressures, dealing with hazards before a serious incident is an investment in the project, the business or the lives of your workmates or yourself.  

WorkSafe Victoria has conducted a mock worksite setup on a busy Melbourne street in which two actors posing as workers asked passers by to hand over a live cable from one to the other.

The experiment saw one actor, playing the manager, asking a passer by to hand a live cable to an ‘apprentice’, despite the manager warning that the cable was live.

The experiment found 90 per cent of passers by obliged and handed the wire to the apprentice, who then feigned a fake shock and dropped the cable, wherein most passers by continued to try and hand the apprentice the wire again.

The experiment was conducted as part of WorkSafe’s supervisors’ campaign, to help demonstrate that people are willing to obey instructions, even if it means others may be harmed.

“Supervisors should not be asking workers to do something that is unsafe and dangerous as there is a high likelihood they will,” WorkSafe Operations General Manager Lisa Sturzenegger said.

“Supervisors need to be aware of this and ensure the people who are working for and with them are not put into a dangerous situation.”

The experiment was based on a series of psychological experiments conducted by Stanley Milgram in the 1960s, which highlighted people’s willingness to obey requests from authority figures, even if those requests were harmful to themselves or others.

“Victoria has Australia’s safest workplaces and its employers have, on average, the lowest premiums for workplace injury insurance, however this will only continue if high safety standards are maintained,” Ms Sturzenegger said.

The Business Advisory Forum (BAF) has agreed to reform that will expedite environmental approvals and assessments at its inaugural meeting.

“We know that red tape is a huge issue for business. For the small business owner who has to spend hours on paperwork or filling out forms, to the big business that has to wait months or even years for project approvals,” Prime Minister Julia Gillard said in a statement.

The BAF, which is made up of businesses leaders and state, territory and Federal leaders, outlined the following reform priorities:

• Environmental approvals and assessments;
• The Government has agreed to develop bilateral arrangements with the states to fast-track state assessments and approvals. This means states will be accredited to do certain Commonwealth assessments.
• Major projects;
• All levels of government agreed to work towards the creation of taskforces for major projects, so approvals are administered by a single state agency and unnecessary duplication is removed
• Ending duplication in carbon and energy schemes;
• Governments have undertaken to prioritise the completion of a review of policies and programs that are not complementary to the national carbon price and may be ineffective or inefficient.
• Energy pricing;
• Forum acknowledged the need to increase competition in energy markets. COAG will discuss bringing forward reviews of state and territory competition in retail electricity and natural gas markets and to ensure that energy regulation places greater weight on the outcomes for consumer.
• Improving development assessments processes;
• Best practice approach to risk based regulation.

BHP Billiton has announced that its Iron Ore President, Ian Ashby, will be lraving the company at the start of July after over 25 years with the company. Jimmy Wilson, currently BHP Billiton Energy Coal President, will succeed Mr Ashby.

 “Jimmy is a very experienced business leader who has more than 20 years’ experience with the Group. He will build on Ian’s successful leadership to continue to grow the Iron Ore business, while ensuring it continues to operate to world class standards. Jimmy’s background includes successful roles as President of the Energy Coal and Stainless Steel Materials business groups and he brings deep operating and project experience to his new role in Iron Ore. I know that he and his family are looking forward to returning to Perth,” BHP Billiton Group Executive and Chief Executive Ferrous and Coal, Marcus Randolph, said.

“I would also like to thank Ian for his tremendous contribution to BHP Billiton during his 25 years with the Group. Under his leadership Iron Ore has become our largest and most profitable business. Ian will leave Iron Ore in excellent shape and with a bright future. His wisdom and experience will be missed, and we wish him all the best.”

To allow a smooth transition, Mr Wilson will join the Iron Ore team immediately. Energy Coal CFO, Andre Liebenberg, will assume the role of Acting President, Energy Coal. A separate announcement around a final decision on the Energy Coal President role will be made in due course.

The BHP Billiton Mitsubishi Alliance (BMA) has announced it will cease production at the Norwich Park Mine indefinitely.

According BMA, the mine has been losing money for several months as a result of lower production and significant increases in costs and lower coal prices.

The decision to cease production follows a seven week review of the mine’s viability. The review could not establish any immediate remedies that would allow the operation to sustainably return to profitability.

BMA Asset President, Stephen Dumble said, “This decision was not made lightly. However, the impact of last year’s floods, combined with lower coal prices and high costs, has resulted in an operation that is not currently viable.

“While recent industrial action has had an impact on production, the mine has been unprofitable for some months. As a result, we have had to take urgent steps to both stop the losses and find the best way to secure the operation’s longer term future. Importantly, this decision on Norwich Park Mine is not reflective of the broader quality of our world class Queensland Coal operations.”

Mr Dumble said the Company would now focus on implementing measures that would enable Norwich Park to operate as a sustainably profitable, low cost mine.

“Until we find viable solutions for the future of the mine, we will not re-start operations. We understand that this decision will have a significant impact on our employees, their families and the Dysart community, and we are committed to supporting them during this period,” he said.

Mining giant Rio Tinto has announced it has become a member of the new China Beijing International Mining Exchange (CBMX). The CBMX is an electronic trading platform that will provide participating members with an additional iron ore trading channel in the China market.

The announcement comes after a signing ceremony was held in Singapore at the end of March.

Rio Tinto Iron Ore Asia president Alan Smith said "We welcome the development of CBMX as it gives us a new option for selling any available tonnes to China, over and above those already contracted. We look forward to the Exchange developing into a transparent, independent, efficient and sustainable iron ore trading platform supported by broad market participation."

Mirvac has announced that its Group Chief Financial Officer (CFO) Justin Mitchell has departed the group to pursue other opportunities.

Mr Mitchell will remain in his role until October to ensure a smooth transition.

Mirvac’s Managing Director, Nicholas Collishaw, acknowledged Mr Mitchell’s contribution to the Group, “Justin joined the James Fielding Group in 2002, prior to the merger with Mirvac at the end of 2004. He was appointed Group Chief Financial Officer in July 2007. During his tenure, Justin played a key role in re-establishing Mirvac’s balance sheet strength and will be leaving Mirvac in a strong financial position.”

An external search for Mr Mitchell’s successor will commence immediately.

Leighton Asia has announced it has won a seven-year, $420 million contract to provide mining services to PT Marunda Grahamineral in Central Kalimantan, Indonesia.

The contract will see the development of a a coal mining project, involving the extraction of over 2 million of high-quality thermal and coking coal per annum by traditional drill and blast and truck and shovel methods.

“Winning this contract is a testament to our solid track record and the experience accumulated over the past decade of working in Indonesia.  We are very proud to have won such a significant award, which is integral to our strategy of securing major, high quality coking coal mining projects in Central Kalimantan. This contract award from PT Marunda Grahamineral reaffirms our competitive position in Indonesia as a leading provider of total mining solutions for our clients,” said Justin Colling, President Director of PT Leighton Contractors Indonesia.

Under the contract, PT Leighton Contractors Indonesia will be responsible for providing project management, mine planning, surveying, supervision, site security, materials, heavy equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure.