The NZ Department of Labour does not attribute the tragic explosion in the mine in November 2010 to the drill rig but it does not discount it.

DoL’s summary of facts states: “It is not known if the drill rig was operating at the time of the explosion, nor if the power supply to the drill rig was in place.”

Of the 29 workers who died, two were VLI employees.

A third person who died was on the site for orientation purposes and was about to start work as a contractor for VLI.

On top of the cost of lives lost – which is incalculable – VLI can be fined a maximum of $NZ750,000 for the three charges, which is a good incentive for any supplier or contractor to ensure its client adheres to the statutory maintenance regime of equipment.

VLI’s initial contract with Pike was for an exploratory inseam directional drilling program at the Pike River mine.

Under the terms of the contract Pike was to provide the statutory electrical inspections of, and assistance with, any electrical problems with the drill rig.

VLI relied on Pike River Coal to carry out electrical inspections and calibrations of the methane sensor on the drill rig, according to the DoL fact sheet.

“From 29 June 2010 to the date of the explosion, none of the work orders generated by PRCL for its weekly inspection of the drill rig had been completed,” the DoL fact sheet states.

“The activity required the establishment of a robust system to ensure that the drill rig would only operate where there was evidence [of] PRCL’s electrical inspections having been carried out.”

PRCL was to conduct regular inspections of the VLI drill rig as part of its mine safety management responsibilities, according to VLI.

“This is the standard arrangement with mines in which it provides specialist drilling services, including in Queensland,” it said.

VLI said it now regretted its reliance on PRC’s processes alone.

DoL summarised the practicable steps VLI failed to take which were:

• To have ensured that the LMC75 directional drill was not operated when any of the methane sensors were faulty and/or not National Association of Testing Authorities-calibrated and/or fully functional
• To have implemented a procedure to ensure that the LMC75 directional drill rig was not operated whilst the methane sensors were not fully functional and NATA calibrated
• To have implemented a procedure to ensure that the LMC75 directional drill rig was not operated when PRCL weekly electrical inspections had not been carried out.

The market for mine contracting is becoming increasingly competitive, with cost and manning pressures making it difficult for contractors and miners to preserve margins.

However, the Pike River case seems to indicate it is a false economy for mine contractors not to insist that maintenance of their equipment is kept up to required safe and statutory standards, regardless of the cost.