Macarthur Coal Ltd WHS Audit: Health and Safety Compliance

This report presents a comprehensive WHS audit of Macarthur Coal Ltd, a major coal mining company in Queensland. It begins with an introduction to the company, its operations, and the industry's safety statistics, highlighting the inherent risks associated with mining, such as musculoskeletal disorders, slips, and machinery-related incidents. The report then delves into the health and safety duties as defined by the Work Health and Safety Act 2011 and related regulations, emphasizing the duty of care owed by employers and employees. The audit's focus is on assessing the working environment, potential hazards like toxic gases, and the control measures implemented. It includes industry research, social factors affecting the workplace, and inspection results, covering duties, hazards, risks, and control measures. The report also provides detailed tables in the appendix, including duties, risk management systems, consultation processes, hazard and risk identification registers, risk assessments, and legislative requirements for controlling risks. The audit concludes by assessing the company's compliance with WHS regulations.

Running Head: MACARTHUR COAL LTD WHS AUDIT 1
Macarthur Coal Ltd WHS Audit
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Contents
Introduction......................................................................................................................................4
Industry statistics.............................................................................................................................4
Risks associated with the mining industry.......................................................................................5
Health and safety duties...................................................................................................................5
Duty of care.................................................................................................................................6
Acceptable risk............................................................................................................................8
The focus of the audit..................................................................................................................9
Industry research..........................................................................................................................9
Social factors.................................................................................................................................11
Workplace..................................................................................................................................11
Competition...............................................................................................................................11
Formal HRM and H&S Departments........................................................................................11
Unionized...................................................................................................................................12
Culture and employment type....................................................................................................12
Gender and risk..........................................................................................................................12
Customers..................................................................................................................................13
Pace of work..............................................................................................................................13
Main job tasks and the support..................................................................................................14
Inspection Results - Summary of Duties and Overall Compliance & Consultative Arrangements
.......................................................................................................................................................15
Summary....................................................................................................................................15
Duties.........................................................................................................................................15
The primary duty of care...........................................................................................................15
Consultative arrangements.........................................................................................................16
Inspection results – Hazards, Risks and Control...........................................................................17
Hazards......................................................................................................................................17
Risks..........................................................................................................................................17
Calculations of the risk..............................................................................................................17
Controls......................................................................................................................................18

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References......................................................................................................................................19
Appendix........................................................................................................................................20
Table 1: Duties.......................................................................................................................20
Table 2: System of Risk Management...................................................................................21
Table 3: Consultation.............................................................................................................22
Table 4: Hazard Identification Register.................................................................................23
Table 5: Risk Identification Register.....................................................................................23
Table 6: Risk Assessment (see appended risk calculators for details)..................................24
Table 7: Controlling Risk - Legislative requirements...........................................................24

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Introduction
Queensland is rich in coal and other common resources. Macarthur Coal Ltd is one of the biggest
companies that engage in intensive coal mining in Queensland’ Bowen Basin. The company
produces a low volatile pulverized injection coal (LC PCI) which is primarily used for
manufacturing steel. It is, in addition, the leading steel producer and coal exporter around the
world. The company was incorporated in October 1995, and Ken Talbot owns it. It employs
more than 400 locals from Queensland. The workers are active in the mines to extract the coals
from the mining sites. The workers are employed as miners, blast, and operation of mining
machinery and equally perform similar responsibilities for coal and ore extraction in
underground mines. The work also involves constructions of tunnels, passageways, and mining
shafts to enable mining works. The company also employs shaft sinking and tunnelling
specialists in the underground mines.
Industry statistics
Over the previous decades, the industry has made a notable health and safety improvement
which has resulted in a reduction in incidences of acute injuries and fatalities. Nevertheless, in
Australia, mining contributes to the most considerable numbers of fatalities and injury than any
other industry.
The fatalities' rate in 12 years to 2015, in the mining industry decreased by 65% wherein every
100,000 workers there were 12.4 workers in 2003, to 4.4 in 2005. In the mining industry, nine
workers die every year, making it the third highest fatality rate of any industry.

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Risks associated with the mining industry
The workers in the mining industries are faced by a number of inherent risks ranging from body
stress, and disorders of the muscle and bones. The workers also risk slipping and falling inside
the mines and being hit by machinery and moving objects. The study has found that 39% of
employees experience muscular stress due to the handling of heavy objects, 25% reported falls,
trips and slips, and 18% represented those who were hit by machinery and other moving objects.
The study was conducted from 2001 to 2015(the Conversation, 2017).
Health and safety duties
Under this section, it is significant to recognize the distinguishing aspects linking an Act,
Regulation, and Code of practices in perspective to the Macarthur Coal Ltd. Also, important to
understand represent the relationships between the three principles in controlling work health and
safety. An act is a parliament legislation targeting regulates a specific official policy in the
governance of a country. On the other hand, regulations and codes of practice represent the
guiding principles for the application of the act (Comcare, 2016).
While auditing Macarthur, I will be guided by the Work Health and Safety Act 2011 and the
Work Health and Safety regulation 2011. On the other hand, Hazardous Manual Task Codes of
Practice 2011 is the applicable code of practice in this audit. Therefore, all the company
stakeholders have specific duty to play in the fulfilment of the Act and the Regulation. The
duties of care are un-transferable under the WHS Act S. 14. However, those belonging to various
groups in the company, include other duties, for instance, a customer who is as well as a
supplier. The company uses the Act to recognize the responsibility of every stakeholder and also
make sure each one of them plays their part in ensuring safety in the workplace.

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The sole purpose of this WHS assessment is to ascertain whether MacArthur Coal Ltd complies
with the act and the regulations and the level of conformity. The assessment will try to identify
the potential hazards likely to affect the workers and how the company has put mechanisms to
address the risks and ensure the safety of its workers. In the company, I will assess how the
underground mines, tunnels, and shafts are safe for the workers and any emissions in the
workplace. Other hazards to the employees include slipping, run over by machines, noise, hit by
moving machinery, tripping, and suffocation. All these pose risks to the health of the worker and
the company need to protect them in accordance with the act and the regulations.
Duty of care
Under the transition to modern WHS legislation, regulators have largely removed explicit or
prescriptive regulation and require companies and workers to exercise a ‘Duty of Care’, which
means that:
 Employers are required to provide and maintain a working environment where, as far as
is practicable, employees are not exposed to hazards.
 All employees have a general duty of care to ensure their safety and health at work. They
also have a general duty of care towards others, to ensure that their actions or inaction do
not put others’ safety or health at risk.
 Self-employed people must ensure, so far as is practicable, that no-one will be adversely
affected by any of the work done at the mine, or hazards that may arise from it (DMP
2011)
Duty-of-care provisions of Acts and Regulations are built up under precedent, which has
developed over time as a result of decisions taken in courts of law. Prescriptive regulations are

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built up under statute law.
The duty of care is shared between the employer and employee. However, primary responsibility
rests with the employer, as they largely have control over the working conditions. The duty owed
by the employer may be higher to an employee who is more inexperienced than to one who has
experience, reflecting this level of control. Similarly, a high duty of care exists in hazardous
environments.
The employer has a duty of care to employees and others to provide:
 reasonably competent staff
 sufficient workers to carry out work safely
 safe places of work
 proper equipment
 safe systems of work.
The duty of care encourages the management of WHS rather than compliance with regulations.
The differences between common law and statute law are as follows:
 Under statute law, each element of noncompliance must be proven beyond reasonable
doubt.
 Under common law, each element of failing the duty of care is assessed on the balance of
probabilities.
 Under statute law, the burden of proof lies with the prosecution.
 Under common law, the burden of innocence lies with the plaintiff.

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Acceptable risk
The second key principle is the management of WHS to an acceptable level of risk. The
Queensland Coal Mining Safety and Health Act 2011 states:
How is an acceptable level of risk achieved?
1. To achieve an acceptable level of risk, this Act requires that management and operating
systems must be put in place for each coal mine.
2. This Act provides that the systems must incorporate risk management elements and
practices appropriate for each coal mine too—
a. identify, analyze, and assess risk; and
b. avoid or remove unacceptable risk; and
c. monitor levels of risk and the adverse consequences of retained residual risk; and
d. investigate and analyze the causes of serious accidents and high potential
incidents to preventing their recurrence; and
e. review the effectiveness of risk control measures, and take appropriate corrective
and preventive action; and
f. mitigate the potential adverse effects arising from residual risk.
3. Also, the way an acceptable level of risk of injury or illness may be achieved may be
prescribed under a regulation.
Similar definitions are used in legislation covering other jurisdictions. There is no absolute
definition of ‘acceptable’ risk. It is something that must be decided for each site and activity.

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After the audit of health and safety compliance at Macarthur Coal Ltd, the findings are that the
company exercise their duties and obligations and primary care and has complied with the Work
Health and Safety Act 2011 and the Work Health and Safety Regulation 2011
The focus of the audit
The objective of this inspection was to expose out the environment the workers of Macarthur
Coal Ltd work in and the risks that they are likely to encounter in their undertakings.
Specifically, the audit investigated the exposer of workers to toxic gases while in the
underground mines, and how the control measures that have been put in place by the
management to guide the employees safely.
It was found the company is able to observe the work health and safety measures as stipulated in
the Queensland mining WHS legislation. Workers have been provided with gas masks to protect
underground workers from exposer to poisonous. The company has also installed fresh air
reservoir pipes which supply underground workers with enough oxygen and lower temperatures.
Industry research
Coal is the largest export from in Australia totalling $43.1 billion in the years 2010-11. The
industry provides over 100000 employment opportunities, contributes to 55% of Australia’s
energy requirements and spends approximately $16 billion on goods and services.
However, this prolific industry has its undoing. The coal mining is associated with various health
risks to the workers, which include the following:
1. Coal dust
2. Noise

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3. Body vibrations
4. Exposure to UV
5. Musculoskeletal disorders
6. Thermal stress
Safe Work Australia Surveys for the health risks and fatalities in Australia. The data provide the
number of deaths and injuries per year due to work-related activity in coal mines. The research
shows that, from 2003 to 2016, there are more than 3,300 deaths relating to injuries in the coal
mines. The year 2016 recorded lowest death rate at 1.5 fatalities per 100,000 employees which
represent 182 workers, compared to series beginning in 2003.
According to Queensland mines and quarries safety performance and health report (2016–2017),
the fatality rate was 0.02 per a million hours worked. The findings have shown a downward
trending since 2007-12 period. The report shows the deaths, and injuries were caused by the
failure of preventative or critical controls. The common fatal hazards in coal mining are trips and
slips. The rates of serious fatalities remained relatively stable in 2016-17.
There was terrible safety, and health data reports to the Queensland Mines Inspectorate, which
includes causative information, limits data analysis, and management strategies. The company
lacked proper records of the fatalities in the mines which limited the auditing of the work health
and safety.

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Social factors
Workplace
As earlier indicated, Macarthur Coal Ltd is one of the largest coal mining and steel companies in
Australia located at Queensland’ Bowen Basin. The company produces one of the best coal and
ore for steel making which contributes significantly to the amount of Australia’s coal exports.
Competition
Coal mining and production industry are faced with fierce competitions because of a vast amount
of coal and a considerable number of mining companies. Although coal provides more than 55%
of Australia’s energy, much is also exported. Macarthur is up against direct competition from
Qcoal Group, Caledon Coal Pty Ltd, Sjits Coal mining, Peabody Energy Australia Pty Ltd
among others. In the international market, the company also works through competition from
other oversea coal mining businesses. The company demonstrates a competitive advantage over
the other similar firms because it is one of the largest coal producers in Australia making.
Therefore, it has a competitive advantage over other producers be able to produce at a lower cost
per unit.
Formal HRM and H&S Departments
Macarthur Coal Ltd is a mature company with well-established management structure. The
company has employed more than 400 workers in the field and mines. Therefore, there was a
need for formal human resource department to oversee hiring, management of employees, and
welfare. The company also has established a formal Health and Safety department which
together with human resource department liaise to fulfil the employee health and safety.

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Unionized
Workers unions are meant for workers protection and representation in case of dispute or
infringement of fundamental rights by the employer. Workers are free to join the worker's unions
as long as the terms of their work allows. In Queensland, workers join The Construction,
Forestry, Maritime, Mining and Energy Union (CFMMEU) what is mandated to protect the
interest of the members who are workers. The company has union representatives who report
regularly to the union on the work progress or report work-related issues. They also consult with
the management and the workers to see the better and improved work environment.
Culture and employment type
The whole organization culture is shaped by the terms of employment and employment
demography and the relationship that exist between the management and workers. The
Macarthur Coal Ltd mainly employs mature aged males particularly for casual mining jobs in the
mines. Generally, there were 500 employees out of whom 50% were casual workers in the mines
and other manual jobs in the mining site. The full-time workers are employed on a contractual
basis and permanent. Most workers came from the local community at Bowen Basin. The
closeness of majority of workers makes health and safety of critical importance in Macarthur
(Quinlan, Bohle & Rawlings-Way, 2015).
Gender and risk
Due to the intensive manual works that are involved in the mining industry, Macarthur mainly
attracts male employees at an older age of 30 years and above. The ratio of male to female is ten
is to 1, which was a clear indication of men job at Macarthur Coal Ltd. The other reasons for
many males in the company are because of the nature of the jobs and the risks associated with it