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04<br />

05<br />

SUSTAIN<br />

<strong>Leighton</strong> Contractors’ <strong>Mining</strong> <strong>Operations</strong><br />

<strong>Safety</strong>, <strong>Health</strong>, Environment and Community Report 2004/05


SUSTAIN<br />

04/05<br />

SCOPE OF<br />

THIS REPORT<br />

This sustainability report<br />

documents the safety, health,<br />

environment and community<br />

performance of <strong>Leighton</strong><br />

Contractors Pty Limited<br />

(ABN 098 000 893 667) in its<br />

contract mining projects for the<br />

financial year 2004-2005.<br />

<strong>Leighton</strong> Contractors is one of the leading construction and contract<br />

mining organisations in Australia and New Zealand, and it also has<br />

significant interests in process engineering, telecommunications and<br />

related industries.<br />

<strong>Leighton</strong> Contractors, an operating division of the publicly listed<br />

<strong>Leighton</strong> Holdings Limited, was established more than 50 years ago<br />

and, over many years, has developed a strong reputation for the quality<br />

and value of its work, and as a good corporate citizen.<br />

<strong>Leighton</strong> Contractors has previously<br />

released reports on its environmental<br />

performance in its mining activities.<br />

Sustain 2004-2005 is the first report<br />

documenting <strong>Leighton</strong> Contractors’<br />

activities across the broader disciplines<br />

of safety, health, environment and<br />

community performance in the mining<br />

sector during a financial year.<br />

The Construction and <strong>Mining</strong> Division<br />

operates large-scale contracts for clients<br />

at five principal open-cut locations in<br />

Australia – Moorvale and Peak Downs<br />

in Queensland (both of them being coal<br />

mines) and St Ives (two gold mining<br />

sites) and Yarrie-Nimingarra (iron ore)<br />

in Western Australia.<br />

CONTENTS<br />

Page<br />

Policy 04<br />

Integrated management system 04<br />

Compliance 05<br />

Our people 06<br />

<strong>Safety</strong> and health 10<br />

The environment 16<br />

The community<br />

0<br />

Portrait of a mining contract<br />

<br />

<strong>Leighton</strong> Contractors


Every year, the term ‘sustainable development’ seems<br />

to have broader and increasing numbers of definitions.<br />

In 1987, it was defined by the United Nation’s World<br />

Commission on Environment and Development (the<br />

Brundtland Commission) as “development that meets the<br />

needs of the present without compromising the ability of<br />

future generations to meet their own needs”.<br />

That definition is clear and direct, and forms the basis of<br />

<strong>Leighton</strong> Contractors’ approach to sustainable development.<br />

As one of Australia’s leading contract mining<br />

organisations and a member of the Minerals Council<br />

of Australia, <strong>Leighton</strong> Contractors also subscribes<br />

to the Council's definition that “investments in<br />

minerals should be:<br />

• financially profitable;<br />

• technically appropriate;<br />

• environmentally sound; and<br />

• socially responsible”.<br />

The Minerals Council adds that, at the foundation<br />

of the minerals industry’s commitment to<br />

sustainable development is the concept of<br />

a “social licence to operate”.<br />

As an organisation and as individuals, we at<br />

<strong>Leighton</strong> Contractors fully support these definitions<br />

and concepts.<br />

While benefiting from our activities today, it is<br />

our absolute duty to ensure that we hand on to<br />

future generations a world we have played our part<br />

improving, rather than one that has constantly<br />

been degraded.<br />

<strong>Mining</strong> is a vital sector of the economy. It is one of<br />

the platforms on which the prosperity of Australia<br />

is founded – one on which we will continue to rely<br />

for a great many years to come. Despite its critical<br />

importance to the nation, we must be mindful of<br />

the effect that it has on each region in which we<br />

conduct mining operations and on the people who<br />

live and work there now, and in the years ahead.<br />

A strong<br />

performance<br />

By Peter McMorrow,<br />

Managing Director, <strong>Leighton</strong> Contractors<br />

This, the first <strong>Leighton</strong> Contractors’ <strong>Safety</strong>, <strong>Health</strong>,<br />

Environment and Community Report, shows that<br />

we are conscious of the influences we have on<br />

people and places. As part of our commitment to<br />

sustainable development, we are measuring many<br />

of the parameters which indicate our performance<br />

in safety and health, our impact on the environment<br />

and on the community.<br />

As can be seen in this report, achievements at all<br />

levels have been quite substantial, both in safety<br />

and health where there have been no Class 1<br />

incidents (situations which permanently alter a<br />

person’s future) and in environment, where there<br />

have been no Level 1 incidents (which permanently<br />

alter the environment).<br />

Because of the way that <strong>Leighton</strong> Contractors has<br />

historically maintained its indicators – generally on<br />

a site-by-site basis and in modes conforming with<br />

various State or individual client requirements –<br />

at this time, it is not possible to provide consistent<br />

sets of figures across the nation for all activities.<br />

However, we have taken steps to rectify the<br />

situation and intend to provide a far more complete<br />

statistical picture in the future.<br />

Sustainability


POLICY<br />

In carrying out its safety, health,<br />

environment and community<br />

responsibilities, <strong>Leighton</strong><br />

Contractors subscribes to and fully<br />

supports the following principles<br />

of the International Council on<br />

<strong>Mining</strong> and Minerals (ICMM):<br />

Integrated<br />

Management<br />

System<br />

Divisional<br />

Objectives and<br />

Targets<br />

Performance Criteria<br />

• Policies<br />

• Manuals<br />

• Procedures<br />

• Instructions<br />

• Mandatory forms<br />

• Template project<br />

plans<br />

• Guidance notes<br />

Principle 1<br />

Implement and maintain ethical<br />

business practices and sound<br />

systems of corporate governance.<br />

Principle 2<br />

Integrate sustainable development<br />

considerations within the corporate<br />

decision-making process.<br />

Principle 3<br />

Uphold fundamental human rights<br />

and respect cultures, customs and<br />

values in dealings with employees<br />

and others who are affected by<br />

our activities.<br />

Principle 4<br />

Implement risk management<br />

strategies based on valid data and<br />

sound science.<br />

Performance Criteria<br />

• Objectives<br />

• Targets<br />

• Key performance<br />

indicators<br />

Performance Evaluation<br />

• Monitoring<br />

• Audit<br />

• Incident reporting<br />

Project<br />

Business<br />

Plan<br />

Project<br />

Management<br />

Service<br />

Management<br />

Review<br />

Risk Management<br />

• Contractual<br />

requirements<br />

• Legislative<br />

requirements<br />

• Community<br />

requirements<br />

• Risk analysis<br />

• Risk response<br />

Strategies and Controls<br />

• Project specific<br />

documentation<br />

• Training<br />

Principle 5<br />

Seek continual improvement of our<br />

health and safety performance.<br />

Principle 6<br />

Seek continual improvement of our<br />

environmental performance.<br />

Principle 7<br />

Contribute to the conservation<br />

of biodiversity and integrated<br />

approaches to land use planning.<br />

Principle 8<br />

Facilitate and encourage<br />

responsible product design, use,<br />

re-use, recycling and disposal of<br />

our products.<br />

Principle 9<br />

Contribute to the social, economic<br />

and institutional development of<br />

the communities in which<br />

we operate.<br />

Principle 10<br />

Implement effective and<br />

transparent engagement,<br />

communication and independently<br />

verified reporting arrangements<br />

with our stakeholders.<br />

AN INTEGRATED<br />

MANAGEMENT SYSTEM<br />

An integrated management<br />

system, combining safety, health,<br />

environment and community,<br />

operates throughout <strong>Leighton</strong><br />

Contractors’ operations.<br />

Based around risk management principles,<br />

project risks are identified, assessed and<br />

then treated through mitigation and/or<br />

controls. This ensures that we:<br />

• deliver what we are contracted to<br />

undertake; and<br />

• comply with legislation, regulations<br />

and site-specific licence requirements<br />

and conditions.<br />

Under the integrated management system,<br />

projects must undertake a variety of<br />

management tasks, including:<br />

• documented systems, operational activities<br />

and controls;<br />

• plan internal audits;<br />

• conduct internal audits;<br />

• provide representation at audit by clients<br />

or regulatory authorities;<br />

• undertake inspections, tests and<br />

monitoring activities;<br />

• manage relationships between all project<br />

stakeholders;<br />

• communicate with all project stakeholders;<br />

• compile internal and external reports<br />

relating to project performance including<br />

financial, program, safety, environmental,<br />

compliance, quality and personnel;<br />

• manage resources including personnel,<br />

mobile and fixed plant, installation<br />

of infrastructure including fuel farms,<br />

workshops, haul roads, crushing and train<br />

load-out facilities; and<br />

• monitor production rates and product<br />

quality.<br />

<strong>Leighton</strong> Contractors


COMPLIANCE<br />

Management Reporting<br />

<strong>Leighton</strong> Contractors has a thorough management reporting program in place which requires<br />

the Construction and <strong>Mining</strong> Division to report on the safety, health and environmental<br />

performance every quarter. The reports are presented to both <strong>Leighton</strong> Contractors’ Board<br />

of Management and <strong>Leighton</strong> Holdings’ Ethics and Compliance Committee.<br />

<strong>Safety</strong>, <strong>Health</strong> and Environmental Auditing<br />

<strong>Leighton</strong> Contractors is certified to:<br />

• ISO 9001 – Quality Management Systems;<br />

• ISO 14001 – Environmental Management Systems;<br />

• AS/NZS 4801 – Occupational <strong>Health</strong> and <strong>Safety</strong> Management Systems.<br />

The organisation’s rigorous auditing program includes internal, client and third-party<br />

certification audits. These audits, which are conducted at regular intervals, cover safety,<br />

health, environment and quality.<br />

A total of 36 integrated audits were completed during 2004-05. No ‘Non Conformance<br />

Reports’ were raised during this period.<br />

Legal Compliance Review<br />

In June 2005, external risk management consultants commenced a review of compliance with<br />

safety and health legislation throughout <strong>Leighton</strong> Contractors. All of the mining projects reviewed<br />

were substantially compliant with jurisdictional Occupational <strong>Health</strong> and <strong>Safety</strong> legislation.<br />

Action plans have been developed to address any areas of non-compliance which were<br />

discovered, and they are scheduled to be closed out by June 2006.<br />

Water trucks are used to keep dust<br />

levels to a minimum.<br />

<strong>Safety</strong> is a high priority on all mine sites.<br />

Sustainability


<strong>Leighton</strong> Contractors


OUR PEOPLE<br />

Employee Engagement<br />

One of the major sustainability<br />

challenges facing <strong>Leighton</strong><br />

Contractors’ mining operations<br />

is the shortage of skilled<br />

people. Retaining them presents<br />

another challenge.<br />

Younger people who may have thought of the<br />

resources industry as a career a decade or<br />

so ago, now tend to seek more ‘glamorous’<br />

careers with easier hours and less distant<br />

locations. Remote locations and an<br />

increasingly competitive employment market<br />

exacerbates this problem.<br />

In Queensland, <strong>Leighton</strong> Contractors<br />

has a structured program to address the<br />

problem. Supported by the dramatic<br />

changes that have taken place in mine<br />

working conditions and attitudes in recent<br />

years, <strong>Leighton</strong> Contractors in Queensland<br />

markets its training and apprenticeship<br />

opportunities to young people in the<br />

communities near to its mines.<br />

Presenting itself as an employer of choice,<br />

the organisation is developing a set of<br />

initiatives designed to attract young people<br />

into the industry – and retain them.<br />

Nationally, <strong>Leighton</strong> Contractors has the<br />

advantage of having a very strong brand and<br />

a good reputation in terms of safety and<br />

environmental management.<br />

• has a graduate engineer program and<br />

is considering creating a graduate<br />

OH&S program and a graduate mine<br />

surveyor program;<br />

• is now training civil engineers in mining<br />

operations to overcome the current<br />

shortage of mining engineers;<br />

• over a long period of time, has<br />

implemented nationally-recognised training<br />

programs for drivers, operators and plant<br />

maintenance personnel to minimise the<br />

impact of any skill shortage within the<br />

mining industry; and<br />

• is undertaking a review of its skills strategy<br />

and looking to significantly increase<br />

the number of apprentices it has in its<br />

mining business.<br />

Other formal training and development<br />

programs will lift the skills of personnel<br />

already employed by <strong>Leighton</strong> Contractors.<br />

Apart from plant training programs, there<br />

is training to improve the qualifications<br />

of personnel who show potential to<br />

become mine supervisors, superintendents<br />

and project managers. This is regarded as an<br />

essential investment for <strong>Leighton</strong> Contractors’<br />

growth and future ongoing success.<br />

To achieve its aims in the mining industry,<br />

<strong>Leighton</strong> Contractors:<br />

• recognises that it has to inspire people<br />

and build confidence in them that they<br />

can build an exciting and rewarding<br />

career with the organisation. Certainly,<br />

within <strong>Leighton</strong> Contractors, they will<br />

receive excellent training and be suited<br />

for employment anywhere in the mining<br />

industry worldwide;<br />

Sustainability


Anti-discrimination and<br />

Equal Opportunity<br />

Equal Opportunity and Antidiscrimination<br />

in the Workplace<br />

policies are an integral part of<br />

<strong>Leighton</strong> Contractors’ culture and<br />

management. Its Code of Ethics<br />

states that “... we will treat all<br />

persons with dignity and not<br />

discriminate on the basis of age,<br />

sex, race, religion, political opinion<br />

or other personal characteristics”.<br />

• For the year 2004/2005, <strong>Leighton</strong><br />

Contractors was declared to be compliant<br />

with the Equal Opportunity for Women in<br />

the Workplace Act 1999.<br />

On 29 June 2005, <strong>Leighton</strong> Contractors<br />

was commended by the Equal Opportunity<br />

for Women in the Workplace Agency<br />

(EOWA) “... for its high level of workplace<br />

analysis and the actions taken in the areas<br />

of flexible working hours, RTO supported<br />

training, work/life balance, EEO awareness,<br />

especially concerning anti-discrimination<br />

and sex-based harassment”.<br />

• There is no discrimination when it comes<br />

to employment and to promotion. Both<br />

depend on a person’s ability and suitability<br />

to undertake the work envisaged.<br />

During 2004-2005, no grievances over<br />

discrimination of any type were lodged by<br />

any employee or subcontractor in Australia.<br />

If any grievance were to have been made at<br />

a mine site, the complaint would initially<br />

be dealt with by the project’s management.<br />

If unresolved, it would then immediately be<br />

passed for resolution to the highest level of<br />

HR management in the relevant State.<br />

Policies are published on the <strong>Leighton</strong><br />

Contractors’ intranet to assist and guide<br />

employees on sexual harassment or<br />

discrimination issues. There were no<br />

formal complaints relating to gender-based<br />

harassment or discrimination during the<br />

recently completed EOWA reporting period.<br />

Indigenous employment<br />

<strong>Leighton</strong> Contractors has a<br />

Memorandum of Understanding<br />

with the Department of<br />

Employment and Workplace<br />

Relations for the advancement of<br />

indigenous personnel within the<br />

company. This operates Australiawide.<br />

Indigenous people are<br />

trained and employed on <strong>Leighton</strong><br />

Contractors’ mining projects,<br />

wherever possible.<br />

<strong>Leighton</strong> Contractors is committed to the<br />

employment of indigenous Australians and,<br />

where possible, develops and implements<br />

programs in conjunction with local<br />

indigenous groups to enhance employment<br />

opportunities.<br />

A good example of this is the association<br />

that <strong>Leighton</strong> Contractors has with the<br />

Bloodwood Association (named after a local<br />

tree) to provide the Yarrie-Nimingarra mining<br />

project with indigenous labour. Bloodwood,<br />

a Port Hedland-based community group,<br />

is assisting <strong>Leighton</strong> Contractors with<br />

its employment processes. The level of<br />

employment of indigenous personnel at this<br />

site is a Key Performance Indicator (KPI)<br />

in <strong>Leighton</strong> Contractors’ agreement with its<br />

client and subject to monthly reporting.<br />

<strong>Leighton</strong> Contractors


EMPLOYEE ASSISTANCE<br />

program<br />

It is acknowledged that the remoteness and<br />

the periods of separation of mining personnel<br />

from their families may place additional<br />

strains on people in the mining industry.<br />

<strong>Leighton</strong> Contractors provides a free, confidential and<br />

voluntary counselling service for all of its employees and<br />

their immediate families; using an external professional<br />

counselling service. This service provides short-term<br />

counselling aimed at resolving personal and work-related<br />

issues which may affect employees’ work performance or<br />

their quality of life.<br />

Sustainability


SAFETY AND HEALTH<br />

<strong>Safety</strong> and health are interrelated in the mining industry. Creating and maintaining a safe working environment is<br />

a cornerstone of <strong>Leighton</strong> Contractors’ operations throughout Australia. The organisation’s safety and health policy<br />

makes a commitment to eliminating workplace injuries and illness, and to providing a safe and healthy working<br />

environment for employees, contractors and the public.<br />

<strong>Leighton</strong> <strong>Contractors'</strong> vision for safety and health is 'injury-free workplaces drive our business'.<br />

To achieve this vision, <strong>Leighton</strong> Contractors’<br />

objectives are to:<br />

• have a supportive safety and health culture<br />

where visible and accountable leadership<br />

is paramount;<br />

• ensure that every person goes home from<br />

work as healthy as they arrived;<br />

• ensure that our approach to all safety and<br />

health matters across the business<br />

is consistent;<br />

• ensure that contractor safety and<br />

health is made as important as that<br />

of our employees;<br />

• promote a culture where personal<br />

responsibility for safety and health<br />

behaviour is required;<br />

• establish annual safety and health targets<br />

and objectives to support the achievement<br />

of zero injury and illness;<br />

• develop leaders’ capabilities to positively<br />

impact the safety and health behaviours of<br />

employees and subcontractors;<br />

• promote a culture of safety and<br />

health excellence through improved<br />

communication, consultation, continuous<br />

improvement, openness and ownership;<br />

• implement a simple safety and health<br />

risk management system that enables<br />

knowledge, legal compliance, third<br />

party certification requirements and the<br />

identification of incident trends and root<br />

causes; and<br />

• provide rehabilitation support services to<br />

employees in the event of a work-related<br />

incident or illness.<br />

<strong>Leighton</strong> Contractors’ Workers Compensation<br />

premiums, which are well below industry<br />

averages, directly reflect its exceptionally<br />

strong employee safety record. This is<br />

enhanced by the organisation’s integrated<br />

management system which focuses on the<br />

training of personnel, ensuring personnel are<br />

competent and encouraging consultation at<br />

all levels in the workplace.<br />

10 <strong>Leighton</strong> Contractors


Objectives and targets<br />

Incident Classifications<br />

Class 1: Injury, which permanently<br />

alters a person’s future (eg.<br />

fatality, quadriplegia, paraplegia,<br />

amputation, severe back injuries,<br />

disfigurement, psychological<br />

disturbance).<br />

Class 2: Injury, which temporarily<br />

alters a person’s future<br />

(eg. lost time injury).<br />

Class 3: Injury, which temporarily<br />

inconveniences a person<br />

(eg. first aid, medical<br />

treatment).<br />

<strong>Safety</strong> and health Key Objectives<br />

actual results<br />

Zero fatalities or Class 1 incidents<br />

Zero fatalities or Class 1 incidents<br />

20% reduction in lost time Injuries Zero lost time injuries<br />

Average lost time rate < 5<br />

Maintain Certification to AS/NZ 4801<br />

Zero average lost time rate<br />

Certification maintained<br />

Sustainability 11


12 <strong>Leighton</strong> Contractors


<strong>Health</strong> Surveillance<br />

There are different statutory requirements<br />

in each of the States in which <strong>Leighton</strong><br />

Contractors operates.<br />

Every <strong>Leighton</strong> Contractors’ employee<br />

and subcontractors’ employee in Western<br />

Australia must undergo a health assessment<br />

before commencing work on a <strong>Leighton</strong><br />

Contractors’ worksite.<br />

In Queensland, an employee must undergo<br />

a Queensland Coal Industry medical and<br />

hold a current five-year certificate issued<br />

by a doctor who has been authorised to<br />

do so. However, although the certificate<br />

has a currency of five years, if they deem<br />

necessary, the project’s management can<br />

order a new medical examination to be<br />

undertaken at any time.<br />

These certificates both ensure the initial<br />

fitness of the employee to work in the<br />

demanding environment of a mine and<br />

also acts as a benchmark for any potential<br />

medical problems that may arise during or<br />

following the employment period.<br />

Induction<br />

For their own safety and for the safety<br />

of others, all employees (including<br />

subcontractors’ employees) and visitors<br />

to a <strong>Leighton</strong> <strong>Contractors'</strong> mine site must<br />

undergo induction to the extent required for<br />

their work or their presence at the site. The<br />

form and the duration of these inductions<br />

depend on the various State regulations, on<br />

client requirements and on the policies and<br />

procedures of <strong>Leighton</strong> Contractors.<br />

Generally an employee induction program<br />

lasts close to one week. For Queensland coal<br />

mines it comprises;<br />

• a generic coal industry induction lasting<br />

two days. No one is allowed to work on a<br />

coal mine in the State unless they have<br />

been through this induction;<br />

• the client’s own induction requirements.<br />

For BMA Coal, it lasts one full day; and<br />

• <strong>Leighton</strong> Contractors’ on-site induction.<br />

For personnel who are new to a mine<br />

site, this lasts one day. For experienced<br />

personnel, the induction lasts about<br />

six hours.<br />

Employees engaged to operate any type of<br />

machinery at a coalfield must have or must<br />

obtain a Certificate of Proficiency. This<br />

certificate is issued after the employee has<br />

completed the relevant and required training<br />

and assessment packages. Experienced<br />

operators may produce a current certificate<br />

for the specific equipment to be operated<br />

but they are then given a ‘challenge test’ (a<br />

static test of knowledge) to verify the claimed<br />

competency. A competency test is even given<br />

to experienced employees moving from one<br />

<strong>Leighton</strong> Contractors’ coal mining site to<br />

another; because the individual’s competency<br />

must be established for each client and to<br />

comply with the relevant legislation.<br />

A similar situation exists in Western<br />

Australia where, under State mining<br />

regulations, new operators on <strong>Leighton</strong><br />

Contractors’ mining contracts in the State<br />

must prove their competency on the<br />

machines they will use. Trainee operators are<br />

under tuition for a period of two weeks, then<br />

they operate under constant assessment by<br />

competent staff for a further period of three<br />

months. Every operator who moves from one<br />

type of equipment to another is retrained<br />

and then re-assessed for competency.<br />

safety awareness<br />

Before the start of every shift, all operators<br />

working on that shift gather for a prestart<br />

meeting at which supervisors discuss<br />

with them previous incidents, safety and<br />

environmental matters and operational<br />

procedures. On a fortnightly basis, toolbox<br />

talks are held with the operators at which<br />

safety, environmental and operational issues<br />

are discussed. Additionally, to make the<br />

workforce even more aware of safety issues,<br />

there is continual training on safety topics.<br />

<strong>Safety</strong> and health committees (comprising<br />

employees from all levels of the business) are<br />

established to assist in promoting site safety.<br />

DRUGS AND ALCOHOL<br />

Because of its concern for the safety of all<br />

employees, <strong>Leighton</strong> Contractors has a firm<br />

policy on alcohol, illicit drugs and smoking.<br />

As a condition of employment, employees<br />

acknowledge that they may be required to<br />

undergo tests to determine alcohol or<br />

drug abuse at any time during their terms<br />

of employment.<br />

Copies of the policy are handed to all<br />

employees on engagement and must be<br />

signed by them at that time. The policy is<br />

also clearly communicated to all employees<br />

during their site induction programs.<br />

There is ‘zero tolerance’ for alcohol and<br />

illicit drugs at all <strong>Leighton</strong> Contractors<br />

mining workplaces.<br />

Employees who suffer from illicit drug or<br />

alcohol dependency or who abuse such<br />

substances can, where appropriate, obtain<br />

assistance through the organisation.<br />

All mining crew members attend briefings<br />

before the start of every shift.<br />

Sustainability 13


INJURY MANAGEMENT<br />

The key objectives of <strong>Leighton</strong><br />

Contractors’ <strong>Safety</strong> and <strong>Health</strong><br />

Policy are to create a safe and<br />

healthy working environment,<br />

and to strive towards eliminating<br />

personal injury. However, if<br />

personal injury occurs, the<br />

organisation concentrates on<br />

managing the injury and the<br />

rehabilitation process.<br />

<strong>Leighton</strong> Contractors has developed and<br />

implemented an injury management policy<br />

which states that successful outcomes would<br />

be demonstrated by:<br />

• proper reporting, recording and treatment<br />

of all personal injury;<br />

• prompt commencement of the<br />

rehabilitation process, where appropriate;<br />

• progressive reduction in the time lost due<br />

to personal injury; and<br />

• compliance with the States’ legislation<br />

and regulations.<br />

Each State has developed its own<br />

specific personal injury management and<br />

rehabilitation policy in order to properly<br />

address the State legislation applicable to<br />

their areas of operation.<br />

The policy on injury management is to return<br />

the injured employee back to work as soon<br />

as possible. Every person who suffers an<br />

injury is assessed by a doctor for fitness to<br />

undertake duties in the future – either in his<br />

or her normal employment or in an alternate<br />

role. Alternate duties are defined for every<br />

mining position.<br />

14 <strong>Leighton</strong> Contractors


THE 'LEIGHTON SAFE' PROGRAM<br />

Furthering its policy of creating<br />

and maintaining a safe and healthy<br />

working environment, during<br />

2004-2005 <strong>Leighton</strong> Contractors<br />

launched ‘leighton safe’; a totallynew<br />

company-wide program.<br />

One initiative of this ongoing program,<br />

the ‘leighton safe’ Awards, was launched<br />

in June. These awards acknowledge the<br />

achievements of teams, projects and<br />

individuals within <strong>Leighton</strong> Contractors<br />

who, through their own initiatives, have<br />

made a significant contribution to safety,<br />

health and the environment. The Awards are<br />

also open to participation by the <strong>Leighton</strong><br />

Contractors’ subcontractors.<br />

Another initiative is the ‘leighton safe’<br />

Essentials program; launched nationally in<br />

June. This multi-faceted program targets<br />

activities that present the greatest risk of<br />

injury to employees at work, namely:<br />

• eye injuries;<br />

• falls;<br />

• mobile plant and equipment;<br />

• electrical hazards; and<br />

• manual handling.<br />

Introducing the eye safety awareness<br />

program, managing director Peter McMorrow<br />

said that eye injuries could be eliminated<br />

from all sites through proper workplace<br />

design, effective engineering controls,<br />

documented safe work methods and the use<br />

of suitable eye protection.<br />

As a result, wearing eye protection<br />

complying with AS/NZS 1337 and AS/NZS<br />

1336 is now compulsory on all <strong>Leighton</strong><br />

Contractors’ worksites – although the mining<br />

worksites have had mandatory eyewear<br />

policies for well over a decade.<br />

Additionally, in order to achieve the<br />

objectives of the eye protection policy,<br />

leaders in consultation with the workforce<br />

were instructed to “…strive to:<br />

• proactively identify hazards in the<br />

workplace with the potential to cause eye<br />

injury or damage;<br />

• progressively eliminate recognised eye<br />

injury hazards at their source;<br />

• develop effective controls to reduce the<br />

risk of eye injuries occurring;<br />

• provide all employees and visitors to site<br />

with appropriate safety eye wear;<br />

• ensure all employees and visitors are aware<br />

of the company’s mandatory eye protection<br />

requirements;<br />

• provide specific eye safety awareness<br />

training as appropriate;<br />

• enforce the site mandatory safety eye wear<br />

requirements; and<br />

• follow the policy guideline for mandatory<br />

eye wear.<br />

Programs to combat each of the other<br />

four key risk areas are being launched at<br />

quarterly intervals.<br />

Above right: A totally new form of<br />

communication has been developed to<br />

create awareness and inform employees<br />

about the Awards program.<br />

Right: <strong>Leighton</strong> <strong>Contractors'</strong> employees and<br />

their families are featured on posters which<br />

spread the safety messages.<br />

Sustainability 15


OUR ENVIRONMENT<br />

ENVIRONMENT POLICY<br />

Employees who join the<br />

organisation at any level are made<br />

aware of <strong>Leighton</strong> Contractors’<br />

environment policy and are required<br />

to work actively towards achieving<br />

its objectives in their specific areas<br />

of responsibility.<br />

<strong>Leighton</strong> Contractors’ key objective is to<br />

“... balance economic, environmental and<br />

social responsibilities to minimise the<br />

environmental impact of our activities both<br />

on the projects where we work and on the<br />

surrounding communities”.<br />

<strong>Leighton</strong> Contractors is also focused on<br />

reducing waste, preventing pollution and<br />

minimising its use of natural resources<br />

and energy.<br />

To assist in achieving these environmental<br />

objectives, it “undertakes to:<br />

• strive to continually improve our<br />

environmental performance and implement<br />

formal environmental management systems<br />

which conform to recognised standards<br />

including ISO 14001;<br />

• comply with all relevant statutory<br />

obligations and codes of practice to which<br />

we subscribe;<br />

• assess project environmental risks and<br />

implement a risk management program;<br />

• report quarterly on our environmental<br />

performance and take remedial action<br />

where performance does not meet<br />

expectation;<br />

• communicate this policy to all personnel<br />

within the company and make this<br />

policy available to all interested parties<br />

upon request;<br />

• provide appropriate induction, education<br />

and training for all personnel relevant to<br />

their environmental responsibilities and<br />

statutory obligations;<br />

• encourage our suppliers and other<br />

interested parties to work with us to<br />

achieve the objectives of this policy;<br />

• encourage ethical environmental<br />

practice and behaviour both within the<br />

company and with those with whom we<br />

work, including respect for cultural and<br />

community values; and<br />

• periodically review this policy to ensure<br />

that it is both adequate and effective.”<br />

Emissions and energy programs<br />

During 2005/2006, <strong>Leighton</strong> Contractors’<br />

Construction and <strong>Mining</strong> Division is joining<br />

the Australian Government’s Greenhouse<br />

Challenge Plus program, which will mandate<br />

certain emissions management procedures<br />

for large energy and resource projects. This<br />

program is expected to reduce Australia’s<br />

greenhouse gas emissions by more than<br />

15-million tonnes a year during the target<br />

period 2008-2012.<br />

<strong>Leighton</strong> Contractors will collect information<br />

on its greenhouse gas emissions and<br />

establish action plans and cost effective<br />

abatement strategies. Reporting against the<br />

scheme will commence in 2005/06.<br />

<strong>Leighton</strong> Contractors will also take part in<br />

the Australian Government’s new Energy<br />

Efficiencies Opportunities program, under<br />

which organisations will identify energy<br />

usage and improve energy efficiency. The<br />

regulations underpinning this program are<br />

expected to be enacted early in 2006.<br />

16 <strong>Leighton</strong> Contractors


OBJECTIVES AND TARGETS<br />

As adopted in the <strong>Leighton</strong> Contractors’ Business Plan for 2004/05, the overall key objectives are no Level 1<br />

incidents with Levels 2 and 3 systematically reduced. Compliance with legislative requirements, maintenance<br />

of certifications and reduction of environmental impacts, as follows:<br />

Environmental Key Objectives<br />

No Level 1 incidents<br />

Compliance with Legislation, Regulations, Licences and/or Permits<br />

Maintain ISO 14001 Certification in all Branches<br />

Risk assessment implemented on all projects, including mitigation,<br />

strategies and impacts<br />

Maintain complaints register on all projects<br />

Project inductions to include awareness of environmental issues,<br />

risks and procedures<br />

Audits to be conducted on all sites<br />

All mining projects to implement the AMI Code 2000 for<br />

Environmental Management.<br />

related Targets<br />

1. All incidents recorded<br />

2. EIFR


ENVIRONMENTAL SNAPSHOT: ENVIRONMENTAL REPORTING – MOORVALE, QUEENSLAND<br />

Month Oil recycled Fuel used Scrap metal Fuel delivered Batteries Oil filters Containers oily<br />

(Litres) (Litres) recycled (Litres) recycled disposed rags disposed<br />

(Tonnes) off site off site<br />

Jun 04 3,900 445,985 0 418,593 0 0 0<br />

Jul 04 0 558,985 0 559,002 33 3m 3 0<br />

Aug 04 13,400 562,590 14.58 572,002 0 1m 3 1m 3<br />

Sep 04 0 551,845 0 572,001 0 0 0<br />

Oct 04 8,300 720,944 0 624,002 0 2m 3 0<br />

Nov 04 11,000 718,863 0 780,001 0 0 0<br />

Dec 04 8,000 689,451 0 676,002 0 2m 3 1m 3<br />

Jan 05 8,000 722,829 0 624,000 25 2m 3 0<br />

Feb 05 0 727,554 0 797,357 0 0 0<br />

Mar 05 17,000 770,595 0 832,000 0 1m 3 1m 3<br />

Apr 05 9,100 958,079 0 884,002 0 1m 3 0<br />

May 05 12,000 780,001 0 754,277 0 2m 3 1m 3<br />

June 05 7,000 736,365 0 936,885 0 0 0<br />

Wash-down water is collected and then the oil,<br />

water and solids are separated. Wherever possible,<br />

the water is recycled for use on site.<br />

18 <strong>Leighton</strong> Contractors


Rags used in maintenance are properly<br />

stored until removed for recycling by<br />

licensed subcontractors.<br />

A rigorous tyre management program<br />

has been implemented to ensure that<br />

plant tyres are used to their fullest<br />

extent without compromising safety.<br />

On occasions, serviceable and safe<br />

tyres are re-used as delivery tyres on<br />

new earthmoving equipment. Uses for<br />

unserviceable tyres include minesite<br />

signage, traffic management and a<br />

variety of other applications.<br />

Used oils are stored on site in tank farms<br />

until collected by licensed subcontractors<br />

for recycling or proper disposal.<br />

Sustainability 19


THE COMMUNITY<br />

<strong>Leighton</strong> Contractors has a strong<br />

commitment to the communities<br />

in which it operates.<br />

Wherever possible, <strong>Leighton</strong> Contractors<br />

attempts to confer whatever benefits are<br />

possible on these communities. It generally<br />

brings significant numbers of new residents<br />

into the towns nearest the mines. Often, the<br />

projects employ locally based consultants,<br />

office staff, plant operators, etc. Frequently,<br />

a percentage of the supplies required to<br />

sustain the team are sourced from the<br />

region. <strong>Leighton</strong> Contractors employees<br />

are often to be found as members of<br />

local sporting teams, community groups,<br />

fundraising committees and similar bodies.<br />

For example, employees working at the St<br />

Ives gold mine in Western Australia play<br />

a major role in the life of the community<br />

at Kambalda, the closest town. <strong>Leighton</strong><br />

Contractors has a preference to employ<br />

residents of the town. This policy has<br />

provided a major boost to its economy,<br />

which needed strengthening prior to<br />

<strong>Leighton</strong> Contractors’ arrival in the region.<br />

To provide further support to the local<br />

economy, <strong>Leighton</strong> Contractors pays<br />

relocation allowances or ‘living away from<br />

home’ allowances to encourage its mine<br />

employees to live in Kambalda – rather than<br />

employ them on a ‘fly-in, fly-out’ basis, as<br />

it must at more remote locations.<br />

In contrast, the Yarrie-Nimingarra mining<br />

project in Western Australia is so remote that<br />

virtually no communities exist in the region.<br />

The mine site is some 2.5 hours by road<br />

from the nearest population centre, Port<br />

Hedland, and the majority of the employees<br />

operate on a ‘fly-in, fly-out’ basis from<br />

homes in Perth.<br />

20 <strong>Leighton</strong> Contractors


CASE HISTORY: ST IVES GOLD MINE<br />

COMMUNITY PROJECTS<br />

In 2001, <strong>Leighton</strong> Contractors was involved<br />

in the $200 million development program<br />

for the West Angeles project, located in the<br />

remote northwest of Western Australia. SKM<br />

was the main ECPM contractor. As part of<br />

the development phase, it was decided to<br />

‘put something back into the community’<br />

by initiating a program titled LivingWorks in<br />

the Pilbara.<br />

The program aimed to raise $200,000<br />

within two years to support community<br />

based training for the identification and<br />

intervention of people who might be at risk<br />

of suicide. This program is part of Lifeline’s<br />

suicide prevention activities. Suicide has<br />

long been a significant factor among people<br />

living remote from their families on mining<br />

projects, yet it receives very little publicity.<br />

In 2002, <strong>Leighton</strong> Contractors was<br />

contracted by Gold Fields Limited to<br />

operate the St Ives Mine near Kambalda.<br />

Because the incidence of suicide was also a<br />

significant problem in that community, the<br />

program was extended to this region.<br />

The targeted $175,000 over three years<br />

was raised through corporate dinners,<br />

sporting events, other community functions<br />

and the efforts of the local Boulder Rotary<br />

Club. The program also has the direct<br />

support of <strong>Leighton</strong> Contractors’ client,<br />

Gold Fields Limited.<br />

The money is now being directed specifically<br />

at training a large number of people in<br />

the community to identify those at risk of<br />

committing suicide, to intervene and then to<br />

assist them to obtain professional help.<br />

This program is now working very effectively<br />

– and saving lives.<br />

Sustainability 21


Portrait<br />

of a mining<br />

contract:<br />

Moorvale<br />

Under a $240-million contract,<br />

<strong>Leighton</strong> Contractors provides<br />

Macarthur Coal with a complete<br />

mining service at its Moorvale<br />

coal mine in Queensland’s Bowen<br />

Basin, some 150 kilometres west<br />

of Mackay.<br />

22 <strong>Leighton</strong> Contractors


Before moving onto the Moorvale site,<br />

<strong>Leighton</strong> Contractors established a<br />

good relationship with Macarthur Coal,<br />

undertaking a major contract mining project<br />

at that company’s Coppabella Mine, located<br />

about 10 kilometres away.<br />

<strong>Leighton</strong> Contractors’ mining team moved<br />

its infrastructure and equipment to Moorvale<br />

when the Coppabella contract came to<br />

an end and, before initiating the mining<br />

operations, it established Moorvale’s<br />

workshop and administration facilities.<br />

The work under the contract includes<br />

planning and scheduling, clearing, subsoil<br />

removal, drilling and blasting, overburden<br />

removal, coal mining and delivery; also<br />

forming the waste dumps.<br />

<strong>Leighton</strong> Contractors is responsible for<br />

ensuring that its own environmental<br />

management plans comply with those of<br />

its client and those of the relevant State<br />

Government authorities. In effect, <strong>Leighton</strong><br />

Contractors provides a totally autonomous<br />

operation to Macarthur Coal.<br />

Statistics on production, safety, health and<br />

other performance indicators are provided to<br />

the client on a monthly basis, to <strong>Leighton</strong><br />

Contractors’ management and to all relevant<br />

government bodies.<br />

Emphasis on <strong>Safety</strong><br />

The mining conditions at Moorvale present<br />

a particular challenge. The dip of the coal<br />

deposits is steep, currently up to 8º and<br />

potentially increasing to 12º in the future.<br />

However, dump trucks cannot operate on<br />

gradients of more than 6º. So, for safety and<br />

practical mining reasons, great care must be<br />

taken in planning the mining methodology.<br />

Also, although selecting highly skilled and<br />

qualified employees for the project, the<br />

workforce still requires site-specific training.<br />

For example, the mine conditions demand<br />

the use of a unique ‘dozer-push’ technique<br />

which requires induction and coaching from<br />

a supervisor.<br />

Apart from this, there are three principal<br />

hazards common to all mining sites:<br />

· the interaction of heavy and light<br />

vehicles (the former often weighing up<br />

to 350 tonnes including their loads and<br />

generally travelling at speeds between<br />

15 and 50 km/h);<br />

· blasting operations; and<br />

· the management of geotechnical risk<br />

– mainly ensuring wall and waste<br />

dump stability.<br />

Under the <strong>Leighton</strong> Contractors’ health and<br />

safety management plan, alcohol and illicit<br />

drugs are totally banned. All employees<br />

are aware that random testing of the entire<br />

workforce (including office personnel)<br />

takes place regularly. Testing also takes<br />

place after any incident on site or even ‘on<br />

suspicion’. <strong>Leighton</strong> Contractors’ policy is<br />

‘zero tolerance’.<br />

Respect for the Environment<br />

At Moorvale, <strong>Leighton</strong> Contractors uses many<br />

environmental management procedures,<br />

which are common to all of its mine sites.<br />

They consist primarily of ensuring that:<br />

· all types of waste are properly disposed<br />

off site;<br />

· there is adequate protection against<br />

environmental incidents (such as oil<br />

spills); and<br />

· effective clean-up procedures are in place.<br />

Some requirements, such as those<br />

associated with the ultimate land<br />

rehabilitation by Macarthur Coal, are site<br />

specific. For efficiency and to speed site<br />

rehabilitation, under its mine planning<br />

strategy and concurrently with the mine<br />

development, <strong>Leighton</strong> Contractors<br />

places the mine waste to create the<br />

landforms required by the conditions of<br />

the Environmental Management Overview<br />

Strategy (EMOS). For example, if the land<br />

eventually will be used for cattle grazing, the<br />

dumps may require grading to a 8º gradient.<br />

The task of spreading the topsoil, mulching,<br />

reseeding and, subsequently, ensuring the<br />

reseeding is successful is the responsibility<br />

of Macarthur Coal.<br />

Being located in Central Queensland, in a<br />

region where rainfall is very low, water is<br />

an extremely valuable resource. Most of<br />

the water used at Moorvale is provided by<br />

Macarthur Coal along a specially constructed<br />

pipeline, and must be carefully conserved.<br />

A Role in the Community<br />

<strong>Leighton</strong> Contractors’ team at Moorvale<br />

certainly contributes to the life and<br />

the economy of the region. Coppabella<br />

and Nebo, where most of the <strong>Leighton</strong><br />

Contractors employees live, have populations<br />

of about 300 and 900 respectively. The<br />

Moorvale project employs a management,<br />

operational and maintenance team of<br />

more than 90 people; most of who live<br />

at externally supplied camps at both<br />

Coppabella and Nebo.<br />

The nearest significant town is Moranbah,<br />

which has a population of about 6000.<br />

<strong>Leighton</strong> Contractors sponsors the local<br />

school’s swimming club, its motocross<br />

clubs, junior Rugby League teams and<br />

other activities. Many <strong>Leighton</strong> Contractors’<br />

employees are on local committees, while<br />

they and their families shop at Moranbah<br />

and use local tradespeople. In turn, they<br />

benefit from the town’s facilities.<br />

Sustainability 23


<strong>Leighton</strong> Contractors<br />

Corporate Services<br />

Level 4<br />

472 Pacific Highway<br />

St Leonards NSW 2065<br />

T 02 9925 6666<br />

F 02 9925 6004<br />

For all information on this report,<br />

please contact Martin Smith –<br />

martin.smith@leicon.com.au<br />

Printed on Harvest.<br />

• 70% Bagasse pulp, the residue from<br />

sugar cane crushing, which previously<br />

was burnt or put into landfill. By<br />

converting the residue into paper, there<br />

is increased value from each sugar cane<br />

crop, reduced air pollution and less<br />

pressure placed on land and forests.<br />

• 30% softwood pulp, which is Elemental<br />

Chlorine Free and sourced from<br />

sustainable plantation forests.

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