BHP Suspends WA State Iron Ore Ops After Fatalities
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Friday, September 05, 2008
Miner BHP Billiton Ltd. (BHP) Friday said it has suspended its iron ore operations in Western Australia state following two deaths in recent weeks
Thursday's fatality occurred when a light vehicle collided with a haulage truck, a BHP spokeswoman said. Last week, a worker was killed at the Yandi iron ore mine in Western Australia, and BHP shut the mine temporarily.
It's unclear when iron ore operations will restart, the spokeswoman said, adding that the company will issue an update later Friday.
"We have shut operations in Western Australia because we wanted to emphasize that safety comes before production. The concern is that such an incident is very upsetting for the organization. It can distract workers from their task and put them at risk," the spokeswoman said.
A Melbourne-based analyst said the two separate deaths don't appear to be a sign that BHP is neglecting safety standards in favor of raising output.
"Corporations do take safety seriously, and cannot afford to contribute to such fatalities," the analyst said.
BHP produces the vast majority of its iron ore in the Pilbara - totaling more than 111 million metric tons in the year ended June 30 - and plans to produce 137 million tons in the current financial year.
Iron ore miners are in a rush to expand output to meet demand from China, with iron ore contract prices nearly doubling on the year for 2008.