Action pending on North Goonyella fire

The Queensland Mines Inspectorate is currently considering 'potential compliance activity' in relation to a fire in an underground mine in the northern Bowen Basin two years ago. The Peabody owned North Goonyella mine was hit by an underground fire during a longwall move in September 2018, which led to the site’s closure. The company announced in February that it has the mine on the market. Preliminary findings from the incident were released last month with the regulator saying that 'further information about the investigation would be published once the compliance process was finalised'. The preliminary findings are below: On 1 September 2018, all coal mine workers were withdrawn from the underground workings at North Goonyella coal mine as a precautionary measure in response to rising methane levels at the longwall. In the hours that followed, the mine’s spontaneous combustion triggers were reached, escalating the level of risk. The inspectorate started gathering relevant information in November 2018 and formally commenced its investigation in January 2019, after the site was stabilised. The scope of the investigation is to analyse events leading up to this high potential incident, which resulted in the withdrawal of workers. The first 3 months of the investigation involved gathering mine documents and requesting further data where gaps were identified. To date, the mines inspectorate has reviewed over 11,370 files, including ventilation records, gas data and the mine’s safety and health management system, including relevant trigger action response plans (TARPs). A TARP is a tool which sets minimum actions required by mines to respond to defined “triggers” – events which cause deviation from normal mine conditions. Failure to adhere to TARPs can lead to escalation of the level of risk without adequate controls being implemented. At this time, persons of interest have exercised their right under the Coal Mining Safety and Health Act 1999 not to be interviewed by the inspectorate unless compelled by law to do so. As such, no interviews have been conducted yet. The mines inspectorate investigation is ongoing. However, the following preliminary observations may be relevant to the nature and cause of the incident: Review of the mine’s records suggest that gas trends were not given sufficient consideration. This may have impacted the way in which TARPs were applied and actioned. Some key reports relating to the mine’s ventilation plan, gas alarm system and explosion risk zone controls do not appear to have been reviewed or countersigned by key personnel, as required under the mine’s safety and health management system. There is evidence that some boreholes located deep within the 9N goaf region were insufficiently sealed, allowing ingress of oxygen into active goaves, with the potential to escalate conditions for spontaneous combustion. There is evidence to suggest that the gas drainage system was being operated to focus on management of methane instead of the potential spontaneous heating event that was occurring underground. There is evidence to suggest the mine did not follow its own procedures relating to major ventilation changes. These are preliminary observations and not conclusive findings. As the mines inspectorate’s investigation continues, we will review these, and other matters arising, in finalising the investigation. In addition to North Goonyella, Peabody’s Queensland operations include Coppabella, Middlemount, Millennium (closing) and Moorvale mines. Peabody reported full-year 2019 revenues of $US4.62 billion compared to $5.58 billion in the prior year on an 11 per cent decline in volumes and lower pricing. Full-year 2019 loss from continuing operations, net of income taxes totaled $188.3 million, while Adjusted EBITDA totaled $837.1 million.

Action pending on North Goonyella fire

Industry Queensland

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