A SUBSIDIARY of Glencore has to pay a contract worker $1.1 million after an incident at Ravensworth underground coal mine in 2014.
Contract worker Shane Anderson was seriously injured after an incident at the mine, 25 kilometres north of Singleton, in November, 2014, two months after the Glencore company Resource Pacific Pty Ltd suspended operations at the mine site.
He was working to remove equipment from the mine.
Mr Anderson was injured a year after the death of Ravensworth open-cut mine worker Ingrid Forshaw at another part of the mine, when a 400-tonne dump truck crushed her four-wheel drive vehicle.
In the NSW Supreme Court this week Justice David Davies confirmed a settlement requiring the Glencore company to pay $1.1 million compensation to Mr Anderson, and his former employer, LD Contractors of Singleton, to pay $250,000.
But the court was told LD Contractors ceased all trading activities in March, 2016 and had no assets and no income. LD Contractors did not appear at the hearing and a company representative advised the court it was not able to pay for ongoing legal representation.
In December Resource Pacific sought damages from LD Contractors for breach of contract after claiming a contract between the companies required LD Contractors to indemnify the Glencore company against "all damage or liability of any nature" from any negligent act by LD Contractors.
Under the contract LD Contractors was required to maintain a $20 million insurance policy covering legal liability for worker injuries. But the court was told Resource Pacific's claim for coverage under the policy was denied because it was not named as an insured entity. An exclusion blocked Resource Pacific coverage.
Glencore managed the Ravensworth underground mine from February, 2008 until September, 2014 under a joint venture arrangement between Resource Pacific and Korean steel manufacturer Posco.
The mine produced semi-soft coking coal for use with hard coking coal in steel production until September, 2014 when production was suspended. Glencore said the suspension decision was made because of lower prices, high production costs at the mine, a strong Australian dollar and "geological constraints in future mining areas".
Glencore was contacted for comment.