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Home / New Zealand

Waikato mining company fined after 7 tonne rockfall seriously injures worker

By Belinda Feek
Reporter·NZ Herald·
31 Aug, 2020 06:37 AM4 mins to read

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Kenneth John Campbell (middle) leaves the Hamilton District Court with lawyer Stephen Bonnar QC after his company, Puke Coal Ltd, was fined. Photo / Belinda Feek

Kenneth John Campbell (middle) leaves the Hamilton District Court with lawyer Stephen Bonnar QC after his company, Puke Coal Ltd, was fined. Photo / Belinda Feek

A Waikato mining company sentenced after a worker was injured in a rockfall, has had its sentence heavily slashed due to the "dire" state of its finances.

Meanwhile, the Puke Coal Mine Ltd staff member injured after his digger was struck by the 7 tonne slip continues to suffer from head injuries sustained in the incident three years ago.

The actual state of the company's finances was suppressed by Judge Glen Marshall after a request by the company's lawyer at the end of its sentencing today after it pleaded guilty to a charge under the Health and Safety Act of failing to ensure the safety of its workers while at work in an open-cast mine, thereby exposing staff, including the victim, to risk of serious injury.

The court heard the company, represented in court by sole director and shareholder Kenneth John Campbell, should have regularly obtained geotechnical information about the stability of the site as extraction progressed over the years.

Up until the accident, Its most recent report was from 2016 in which an expert had noted instability at the site.

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However, Judge Marshall noted that it had been agreed by both parties that the company's actions, or lack thereof, were not causative of the rockfall incident after an expert's report after the accident failed to determine the cause.

Puke Coal Ltd had been in operation for about 20 years, more recently as an open-cast mine.

It was set up on the same site as another coal mine which had closed in 1967, and had caused the mine's instability issues.

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"That was a relevant factor in terms of ground, or strata, stability and it's accepted that ground or strata instability was an ongoing hazard or issue at the site," Judge Marshall said.

The company operated a fleet of machinery and also operated as a coal crushing plant about 11km southwest of Huntly.

On August 17. 2017, the company had 25 employees including the victim. He had worked there for about eight weeks and been using the excavator - or digger - for about four or five days prior to the accident.

An inspection of the site had been carried out about 7am that day before the victim and his colleagues, including Campbell, set about their work.

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About 1.50pm a large slip occurred about 50m from where the victim was working.

A portion of the rubble, including a large boulder, struck the victim's digger, trapping him inside with serious head injuries.

A colleague ran to his aid and turned the machine off and waited with him until emergency services arrived. He was then airlifted to Waikato Hospital suffering a broken neck, fractured skull and a frontal lobe injury.

He continues to suffer the effects of those injuries, the judge said.

In an attempt to identify the possible cause of the rockfall, Worksafe commissioned an independent expert report. However, the expert was unable to determine a cause.

The company's most recent geotechnical report siting hazards was commissioned in 2016.

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"The defendant company was required to ensure that a principal hazard management plan existed for ground, or strata, instability," the judge told the court today.

"Worksafe inquiries disclosed a departure from industry standards ... that no up-to-date geotechnical assessment of the specific area had been carried out.

"The defendant company failed to ensure that the geotechnical information was consolidated with information by its geotechnical model."

The company had therefore failed in its primary duty of care of its workers and thereby exposed them to the risk of death or serious injury.

Stephen Banner QC submitted that either a nominal or no fine be imposed due to his client's inability to realistically pay it.

In settling on a fine, Judge Marshall accepted the company's position, describing its financial situation as "dire".

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Although the relationship between the victim and the company had since soured, the company had initially been proactive in offering voluntary contributions which included $6500 in ACC top-ups, $1000 lump sum payment and free accommodation, totalling $6000 until January 2019.

Judge Marshall found the failure by the company, which according to the companies office is in liquidation, to be "mid level" arriving at $350,000 fine before issuing discounts of 40 per cent.

Despite that bringing the fine down to $210,000, Judge Marshall further slashed that down to an end fine of $21,000.

He ordered costs of a further $5000 also be paid.

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