Safety in Design The Mining Perspective

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Safety in Design The Mining Perspective

• Dr Jonathan Gilligan
• Deputy Director Mine Development
• BHP Billiton Olympic Dam Expansion Project

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DISCLAIMER
By reviewing/attending this presentation you
agree to be bound by the following
conditions. Neither BHP Billiton nor any of its
directors, officers, employees or advisers nor
any other person makes any representation or
warranty, express or implied, as to, and
accordingly no reliance should be placed on, the
fairness, accuracy or completeness of the
information contained in the presentation or of
the views given or implied. To the extent
permitted by law, neither BHP Billiton nor any of
its directors, officers, employees or advisers
nor any other person shall have any liability
whatsoever for any errors or omissions or any
loss howsoever arising, directly or indirectly,
from any use of this information or its contents
or otherwise arising in connection therewith.
This presentation is for information purposes
only and does not constitute or form part of any
offer for sale of any securities or an offer or
invitation to purchase any such securities This
presentation is directed only at persons who (i)
are persons falling within Article 49(2)(a) to
(d) (high net worth companies, unincorporated
associations etc.) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005
(as amended) (the Order) or (ii) have
professional experience in matters relating to
investments falling within Article 19(5) of the
Order or (iii) are outside the United Kingdom
(all such persons being referred to as relevant
persons). This presentation must not be acted
on or relied on by persons who are not relevant
persons. Certain statements in this presentation
are forward-looking statements (including
statements regarding contribution synergies,
future cost savings, the cost and timing of
development projects, future production volumes,
increases in production and infrastructure
capacity, the identification of additional
mineral Reserves and Resources and project lives
and, without limitation, other statements
typically containing words such as intends,
expects, anticipates, targets, plans,
estimates and words of similar import). These
statements are based on current expectations and
beliefs and numerous assumptions regarding BHP
Billiton's present and future business strategies
and the environments in which BHP Billiton will
operate in the future and such assumptions,
expectations and beliefs may or may not prove to
be correct and by their nature, are subject to a
number of known and unknown risks and
uncertainties that could cause actual results,
performance and achievements to differ
materially. Factors that could cause actual
results or performance to differ materially from
those expressed or implied in the forward-looking
statements include, but are not limited to, the
risk factors discussed in BHP Billiton's filings
with the U.S. Securities and Exchange Commission
(SEC) (including in Annual Reports on Form
20-F) which are available at the SEC's website
(http//www.sec.gov). Save as required by law or
the rules of the UK Listing Authority and the
London Stock Exchange, the UK Takeover Panel, or
the listing rules of ASX Limited, BHP Billiton
undertakes no duty to update any forward-looking
statements in this presentation.
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DISCLAIMER (Cont)

• Cautionary Note to US Investors The SEC
  generally permits mining companies in their
  filings with the SEC to disclose only those
  mineral deposits that the company can
  economically and legally extract. Certain terms
  in this presentation, including resource,
  measured resource, indicated resource,
  inferred resource and deposit, would not
  generally be permitted in an SEC filing. The
  material denoted by such terms is not proven or
  probable Reserves as such terms are used in the
  SEC's Industry Guide 7, and there can be no
  assurance that BHP Billiton will be able to
  convert such material to proven or probable
  Reserves or extract such material economically.
  BHP Billiton urges investors to refer to its
  Annual Report on Form 20-F for the fiscal year
  ended June 30, 2007, for its most recent
  statement of mineral Reserves calculated in
  accordance with Industry Guide 7.
• Competent Persons for Mineral Resources and Ore
  Reserves are named in the BHP Billiton Annual
  Report 2007, which can be viewed at
  www.bhpbilliton.com. Stuart Hayward, who is a
  member of AIG and a full time employee of BHP
  Billiton, and Shane O'Connell, who is a member of
  the AusIMM and a full time employee of BHP
  Billiton,  have the required qualifications and
  experience, are joint Competent Persons for the
  assessment of Mineral Resources at Olympic Dam,
  which has been reported in accordance with the
  Australasian Code for Reporting of Mineral
  Resources and Ore Reserves, December 2004 (the
  JORC Code).  Stuart Hayward and
• Shane O'Connell verify that the 2007 Mineral
  Resource data included in this document is based
  on and fairly reflects the information in the
  supporting documentation relating to Olympic Dam
  Mineral Resource.The Mineral Resource numbers
  prior to 2007 have been sourced from the publicly
  available Annual Reports for WMC and BHPBilliton.

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Olympic Dam Location
550km
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OLYMPIC DAM EXPANSION

• Australias largest underground to an open pit
  mine
• New ore processing plant
• New 90km rail line, Olympic Dam to Pimba
• New electricity transmission lines 270km
• New airport with 737 jet and night flying
  capacity
• New construction camp up to 8000 person capacity
• New accommodation and services a doubling of
  Roxby Downs
• New seawater desalination plant and 320km
  pipeline

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Mining Fatalities

• A diesel mechanic was fatally injured when he was
  crushed between the blade of an operating dozer
  and a service truck that he was standing beside
  in February 2007.

• A Truck Driver sustained fatal injuries as a
  result of a collision between two Caterpillar
  797B Haul Trucks in June 2007.

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Mining Significant Incidents

• An operator of a 793B haul truck fell from the
  platform of the cabin to the ground sustaining
  serious head and back injuries in January 2007.

• A D10T operator fell from the dozer while
  attempting to enter the cabin. As he attempted to
  open the door by pulling it towards him his hands
  slipped causing him to fall backwards
  approximately 2.5m on to the ground in September
  2006.

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Disturbing Facts Failing to Establish Safety
in Design?

• Taxonomy of fatalities and non-fatal permanent
  disabling incidents
• 44 Fatalities (1992 2006 Western Australia)
• 449 Non-Fatal Permanent Disabilities (1987 2006
  Western Australia)
• Source The Intersafe Group

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Fatal and Non-Fatal Permanent Injuries Energy
Source

• What is the most prevalent cause (damaging energy
  source) of Fatalities and Non-Fatal Permanent
  Injuries in the mining industry?

• Vehicular Energy
• Surface Mining, 23 Fatalities (1992 2006 WA
  Mining)
• 9 Heavy vehicle environment
• 5 Heavy vehicle struck person
• 4 Heavy vehicle to another vehicle
• 3 Vehicle component lowered / fell onto person
• 1 Light vehicle to environment
• 1 Light vehicle struck person

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Fatal and Non-Fatal Permanent Injuries Energy
Source

• Gravitational Events
• 7 Fatalities
• 5 - Free falling objects
• 4 Other than rock
• 1 Fall of rock
• 2 people falling from height

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Significant incidents by all FRCPs FY 07
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HSEC Design Principles

• No ODX contractor or employee will make decisions
  based solely on economic grounds.
• Project Teams are empowered to create initiatives
  to continuously improve HSEC performance.
• Designs will meet regulatory requirements and BHP
  Billiton Standards.
• The principles of ALARP apply in all designs.
• The Hierarchy of Control applies in all designs

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HSE IN DESIGN ACROSS THE PROJECT

• HSE is inculcated into all facets of engineering
  design.
• HSE in Design activities and supporting documents
  have been developed for use throughout the
  project lifecycle.
• HSE in Design is not exclusively about
  conformance with risk assessment processes (e.g.
  HAZOP). These processes are certainly necessary
  and important however, they serve only to ensure
  that HSE issues have been addressed earlier in
  the design process.

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HSE IN DESIGN ACROSS THE PROJECT

• The Project Team's approach to HSE in Design is
  consistent with the "National OHS Strategy 2002
  2012"
• One of five National Priorities set by the ASCC
  (formerly NOSHC) is "Eliminate hazards at the
  design stage".
• ODX activities relating to HSE in Design aim to
  influence the behaviours and actions of all
  persons involved with engineering design so they
  are committed to the
• Elimination of hazards
• Application of Leading Practice
• Application of FRCP requirements
• Application of design related key learning's from
  Significant Incidents

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HSE DESIGN CRITERIA

• The ODX HSE Design Criteria establishes a set of
  philosophies and criteria which apply to all
  design decisions on the ODX Project.
• The document provides guidance to designers on
  the fundamental principles of HSE in Design
  (based on the concept of Damaging Energy) and how
  to manage damaging energy types through design.
• Information is supplemented by photos of 'Leading
  Practice' as well as poor examples and design
  features to avoid.

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HSE Design Criteria

• Work teams are empowered to review significant
  incidents and hazards and develop solutions for
  eliminating these from the work place.
• Significant Incident Elimination Posters are
  developed.

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Hierarchy of Control
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Good Safety in Design Examples

• Safe access for regular haul truck maintenance
  and inspection.

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Good Safety in Design Examples

• Safe access for regular maintenance and
  inspection using mobile access systems
  significantly reduces the risk of an injury to
  due to a fall.

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HSE Design Eliminating Fatalities

• Truck Shovel Drill Automation
• Implementation of Autonomous Truck Haulage,
  Blasthole Drills and Remote Control Shovels.
• Separation of automated and non-automated
  components in a predictable cycle.
• Haul truck automation in project collaboration
  with Caterpillar underway

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HSE Design Eliminating Fatalities

• Fatigue Detection Systems
• Investigate fatigue monitoring technology such as
  Optalert to complement fatigue management
  programs eg
• Work - life balance
• Fatigue Management Plans.
• Integrate Optalert with equipment and FMS.
• Optalert is a new device that continuously
  measures alertness/drowsiness.

Caution, you are showing sins of drowsiness
Danger, you are now too drowsy to drive
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HSE Design Eliminating Fatalities

• Seatbelt Immobiliser
• Fatalities and injuries can occur if the driver
  is not wearing a seat belt in a rollover.
• Lock out on equipment that does not allow
  equipment operation to commence if seat belt is
  not being used as required.

• Drill Rig Carousel
• Serious manual handling crush Injuries occur
  when drill bits need changing on drill strings.
• Development of a drill bit carousel for automated
  change out of drill bits without manual handling

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ODX TRIFR June 2006 July 2008
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Safety in Design Initiatives
Over-Wind Protection System for Drill Rig Winch
Cable
Working at Heights Fall Protection
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Safety in Design Initiatives

• Mosslake Drilling 300D Drill Rig
• Automatic Rod Handler which takes away the need
  to manually handle rods.
• Eliminates hand and manual handling injuries

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Summary

• Our goal is Zero Harm to our employees and
  contractors.
• We will endeavour to eliminate hazards from our
  workplace by designing safe plant and equipment.
• Mature organisations have a positive reporting
  culture of incidents and near misses that are
  critical for developing solutions for eliminating
  hazards from the work place
• No decisions will be based solely on economic
  grounds.
• The Hierarchy of Control will always apply.