HCP-8000-PL-Z-3303 P3 S03 Change Management Rev 0

HAIL CREEKCOAL PROJECT

~~APPROVED G Morgan Construction Manager ~ /1.. , ."""-

REV

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DATE REVISION DESCRIPTION BY

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10/12/01 I Issued for Review

14/01/02 I Issued for Use~

HAIL CREEK COAL PROJECT Hail Creek Coal Project

Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page: i of I HCP-8000-PL-Z-3303

Table of Contents

1 PURPOSE & SCOPE 1

2 DEFINITIONS 1

2.1 CHANGE 1

2.2 NEW CONSTRUCTION OR MODIFICATION 1

2.3 COMPETENT PERSON 1

2.4 INITIATOR OF CHANGE 2

3 ROLES AND RESPONSIBILITIES 2

3.1 SITE SENIOR EXECUTIVE (SSE) 2

3.2 PROJECT CONSTRUCTION MANAGER 2

3.3 PROJECT SAFETY MANAGER 2

3.4 PERSON WITH AUTHORITY TO APPROVE CHANGE 2

4 PROCEDURES 3

4.1 IDENTIFYING CHANGE 3

4.2 FLOWCHART FOR CONTROL OF CHANGE 4

4.3 CHANGE CONTROL 5

4.4 APPROVAL PROCESS 7 4.4.1 SPECIFY THE CHANGE 7 4.4.2 ASSESSMENT OF THE CHANGE 7 4.4.3 APPROVAL 7

4.5 IMPLEMENTATION OF CHANGE 7

4.6 FILLING OUT THE CHANGE APPROVAL FORM 8

5 REFERENCES 10

ANNEXURE 1: CAPITAL EXPENDITURE/DISPOSAL APPLICATION 1

ANNEXURE 2: CHANGE APPROVAL FORM 1

ANNEXURE 3: ACCEPTANCE CHECK & IMPLEMENTATION REVIEW 1

ANNEXURE 4: CHANGE OF ROLE APPROVAL FORM 2


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page: 1 of 13 HCP-8000-PL-Z-3303

1 PURPOSE & SCOPE This procedure sets out the required processes for control of change in the work place to ensure that proposed changes do not give rise to unacceptable risk to our health, safety, asset and the environment. Change management will be controlled in two parts: a. Specific activities for which change control processes are mandatory b. Activities resulting in change where there is a moderate or higher risk of:

- Seriously affecting the health and safety of persons to the extent that medical treatment will be required;

- Severely damaging equipment or the environment; - Interrupting production for more than one day, or significantly affecting quality.

The change management controls will apply having regard to the fact that change may be: a. Planned; b. Sudden or gradual change. This procedure applies to all personnel and activities within the Hail Creek Coal Project. 2 DEFINITIONS

2.1 CHANGE § Is a modification made to an existing unit of plant, system or entity from its current

design or state. Change encompasses Document or Procedural Change Control including records, approvals, revisions and control of information. It excludes normal repairs or other activities to restore functionality.

2.2 NEW CONSTRUCTION OR MODIFICATION Results in a change to the function of plant, equipment or infrastructure. Constructions or modifications require drawings, calculations, and construction instructions that fully define the installation or modification. This includes any civil, structural, hydraulic, pneumatic and electrical design, and commissioning details where appropriate.

2.3 COMPETENT PERSON Is a person who has the demonstrated skill and knowledge to work within the limits defined by their skills and to assess the risk and follow procedures and design instructions associated with the proposed change.


2.4 INITIATOR OF CHANGE Is a person who assesses, classifies and initiates any change consistent with the Change Management System. Initiator may not always be the assessor as change can be initiated by any Project Team Member. 3 ROLES AND RESPONSIBILITIES

3.1 SITE SENIOR EXECUTIVE (SSE) The SSE will: § Ensure effective implementation of this standard.

3.2 PROJECT CONSTRUCTION MANAGER The Project Construction Manager will: § Ensure the change management procedures and document controls are established

and implemented; § Designate and then ensure any person responsible for the authorization of change

is competent; § Ensure all persons, understand the change authorization protocols; § Communicate change outcomes to relevant persons. In case change has not been

approved, this must be communicated as well; § Initiate formal review of implemented changes after an appropriate period.

3.3 PROJECT SAFETY MANAGER The Project Safety Manager will: § Ensure the system is regularly audited against the standard; § Arrange required training and education to identify change and the need to

understand it.

3.4 PERSON WITH AUTHORITY TO APPROVE CHANGE The person with authority to approve change will: § Assess and authorise change consistent with this change management standard

and processes; § Ensure that any person making the change is authorized and competent to do so; § Ensure revision of drawings, operating procedures maintenance requirements and

/or emergency procedures are updated and referenced in the appropriate area;


§ Sign off to approve the implementation review or reject, in case of rejection specify deficiencies.

4 PROCEDURES

4.1 IDENTIFYING CHANGE The Project Construction Manager will develop a training program for all employees and contractors to be competent to identify what constitutes a change and how to initiate the change management approval process outlined in this standard.


4.2 FLOWCHART FOR CONTROL OF CHANGE

Review the change after implementation

Identify and document residual Risk resulting from

the change

Use annexure 3

Yes

Low or Very Low

Moderate, High or Very High Risk

Initiate change approval form

Is mandatory change

control required?

Assess the Risk

No

Detail the changes required and explain the benef its

Is a hazard study or expert

assessment required?

Approve / Reject / Trial the change

Register the change in First

Priority

Yes

No

• For physical or procedural change, use annexure 2,

• For Organisation change, use annexure 4

Use risk calculator

Project Construction Manager to appoint a person to authorise the change

Competent persons

Initiator

Authority to Approve

Competent Persons

Assess the changes • Organisation • Production • Maintenance • Engineering • Safety • Environment

As appropriate

Implement the change

(Capital approval may also be required)

Use annexure 1



4.3 CHANGE CONTROL Table 4.3 (a) Approval for Change

Area Technical

Assessment Construction Assessment

Projects Procurement Area Manager Project Manager

Client Representative

General Manager

CHPP CHPP Design S Newland G Morgan G Carvell G Flynn P Hicks B Jones R Herringe R Hannigan CHP Construct S Newland/

Sedgmen G Morgan G Carvell G Flynn P Hicks B Jones R Herringe R Hannigan

Stacker Construct S Newland G Morgan G Carvell G Flynn P Hicks B Jones R Herringe R Hannigan R Hannigan Dragline Dragline Supply & Erect

S.Newland G Morgan G Carvell R Wise P Hicks B Jones D Lamb R Hannigan

Transportable S.Newland G Morgan G Carvell R Wise P Hicks B Jones D Lamb R Hannigan Substation S.Newland G Morgan G Carvell R Wise P Hicks B Jones D Lamb R Hannigan Trailing Cables S.Newland G Morgan G Carvell R Wise P Hicks B Jones D Lamb R Hannigan Buckets S.Newland G Morgan G Carvell R Wise P Hicks B Jones D Lamb R Hannigan Infrastructure Mine Access Road S Newland/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan Water Pipeline S Newland/GHD G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan Temporary Substation S Newland/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan 66 kv Transmission Line

S Newland/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan

Bulk Earthworks S Newland/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan Industrial Buildings D Lynch/

NBRS&P G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan

Nebo Houses D Lynch/ NBRS&P

G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan

Run off Management S Newland/TBA G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan



Infrastructure Services S Newland/TBA G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan Mine Pit Power J Ball/TBA G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan Temporary Communications

J Ball/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan

Permanent Communications

J Ball/SKM G Morgan G Carvell G Flynn D Lynch B Jones J Datson R Hannigan

Rail Line Early Works D Lynch/GHD G Morgan G Carvell G Flynn D Lynch B Jones R Herringe R Hannigan Rail Line D Lynch/GHD G Morgan G Carvell G Flynn D Lynch B Jones R Herringe R Hannigan Camp/Village S Newland/TBA G Morgan G Carvell G Flynn D Lynch B Jones R Herringe R Hannigan Mine Pit Development S Newland/TBA G Morgan G Carvell G Flynn D Lynch B Jones R Herringe R Hannigan Mackay Office S Newland/TBA G Morgan G Carvell G Flynn D Lynch B Jones P. Davies R Hannigan Health & Safety J Eddy G Morgan N/A G Flynn P Hicks/D Lynch B Jones P Davies R Hannigan Environment A Longbon G Morgan N/A G Flynn P Hicks/D Lynch B Jones P Davies R Hannigan Change Management based on Risk There will be proposed changes, not specified in table 4.3 (a), which may pose an unacceptable risk. These proposed changes would require a preliminary risk assessment, based on the risk matrix, as part of the approval process before proceeding with the change.



4.4 APPROVAL PROCESS 4.4.1 SPECIFY THE CHANGE All proposals for change must be on the required form (Annexure 2) and will clearly identify: a. The current position; b. What initiated the change; c. The purpose of the change; d. The expected outcome from the change; and, e. The system to be used to test results of the change. 4.4.2 ASSESSMENT OF THE CHANGE The assessment will be carried out by the initiator or by persons nominated in table 4.3(a). The assessment must, where applicable, identify: a. All hazards associated with the proposed change; b. Control mechanisms to eliminate or minimise the risks; c. Standards to be used; d. Controls to be required; e. Further studies to be carried out, e.g. hazard studies; f. Regulatory requirements which must be met; and, g. If a change is subject to trial the duration and measures for the trial. 4.4.3 APPROVAL Approval for the change will be by persons authorised as set out in table 4.3 (a) or designated by the Project Construction Manager. Where the change requires capital approval the Capital Approval form, Annexure 1, must also be authorised.

4.5 IMPLEMENTATION OF CHANGE Only persons competent to effect the required change must carry out the implementation of approved changes. Prior to handing over a physical change for normal use, an acceptance check shall be carried out to ensure:



§ The changes have been carried out in accordance with the authorised change proposal;

§ All actions from the review process, including any studies called for have been satisfactorily completed and all outcomes included; and,

§ The physical change has not introduced any unforeseen risks. Appropriate information on the change will be released and training provided related to the change to all those affected by the change. The revision of drawings, operating procedures, maintenance requirements and emergency procedures shall be carried out. A formal review will be carried out for all changes, except organisation changes, using the form in Annexure 3, in order to assess the actual impact of the change against the intended impact and the reasons for any deviation.

4.6 FILLING OUT THE CHANGE APPROVAL FORM (a) Initial detail 1. Select the type of change being proposed and tick the appropriate box. 2. Write the name of the initiator who came up with the proposal to make the change.

This allows the Line Manager to contact the initiator and get more information or provide feedback.

3. Fill out the equipment details such as; - Equipment Type; - Equipment number; - Location.

(b) Specify the proposed Change Describe the change you want. Be specific and where possible attach diagrams, sketches, drawings, and MSDS sheets, SOP etc. also briefly describe why the change is necessary. Indicate how the proposed change came about. This will provide some context for the change. (c) Perform Risk Assessment Identify the main hazards that could be presented by the proposed change then use the risk calculator provided in the Project Risk Management Plan HCP-8000-PL-Z-001 to assess the risk presented by the proposed change.



If the risk is Moderate, High or Very High then further assessment is required to determine course of action, formal approval is to be obtained and the remainder of the form needs to be completed. (d) Detail the proposed change requirements § Current position – describe the position that exists at present or the position we

want to move away from. This section could reference an existing procedure, drawing or MSDS.

§ Purpose of the change – what is the prime reason to make this change and any consequences of not doing the modification.

§ Expected outcome from the change - detail the benefits that this change will make to the project. Where possible the benefits should be expressed in dollar savings however, the benefits can be expressed in terms of: - Safety/Environment - describe the benefits in terms of hazard management

by elimination, control, substitution or separation of the hazard; or,

- Maintenance - describe the benefits in terms of increased reliability, reduced repair time or increased component life; or,

- Production - describe the benefit in terms of increased production, reduced delays or reduced process time.

(e) Estimated Cost of Modification § Design Costs; § Labour; § Material; § Other Costs; § Total Cost. (f) Safety review and assessment Wherever possible a hazard study should be completed and attached. The safety review and assessment is offered as a checklist to prompt for hazards and impacts on key elements of our health, safety and environment management systems. Review each item and write yes against any item that presents a new hazard or is affected by the change. Then consider the impact on the affected items or any new hazards presented and then describe the most likely incident that could result from the change. (g) Review and authorisation Refer to table 4.3a Also if there is any change proposed to mobile equipment or plant that will involve design or engineering changes, they must be assessed by the appropriate Mechanical or Electrical Engineer. This is to prevent any modifications, which may increase component or structural stress, reduce fatigue life, or overload elements of the equipment.



The appropriate Engineer will obtain clearance from the relevant Supplier or equipment Manufacturer. Authorisation The authorisation will be by the person nominated in the mandatory change table or the person designated by the Project Construction Manager. The authorised person will review the recommendations and: § Accept the change to proceed; or, § Reject the change to proceed; or, § Require a trial period for the change. 5 REFERENCES § Rio Tinto Safety Standard A2, Change Management. § Tarong Coal – Change Management System. § Coal Mining Safety and Health Act, 1999.


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management HCP-8000-PL-Z-3303

Annexure 1 Capital Expenditure/Disposal Application


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page: 1 of 1 HCP-8000-PL-Z-3303 Annexure 1: Capital Expenditure/Disposal Application

Annexure 1: Capital Expenditure/Disposal Application

CAPITAL EXPENDITURE / DISPOSAL APPLICATION Hail Creek Coal Project

Site Department

Asset Description

Justification

Location Cost Centre for Depreciation

Completion date Asset Life G E

N E

R A

L

Functional Location New/Replacement

Summary Note Original Amount

Cost Original Amended Uncommitted to date

Purchase Expenditure type (tick box applicable)

Materials Strip ratio increase

Contractors Replacement / improving

Site Labour Health Safety & Environment

E X

P E

N D

I T U

R E

Total

Product Expansion

Asset No. Functional Location Year of Purchase

Asset Description

D I S

P O

S A

L

Disposal Method JV Approval Est. Proceeds

Position Name (Please Print)

Signature Date Post Comp. Audit Y/N

Project Construction Manager

Safety risks assessed and minimised

Environmental risks assessed & minimised

Project Manager A P

P R

O V

A L

General Manager



Annexure 2 Change Approval Form


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page 1 of 2 HCP-8000-PL-Z-3303 Annexure 2, Change Approval Form

Annexure 2: Change Approval Form Initiator: Date: Indicate type of change (tick) Equipment Equipment Type: Equipment Number: Location: Procedure SOP: Hazardous Substance Production Process Other SPECIFY THE PROPOSED CHANGE What? Why? Initiated from: Incident ¨ improvement idea ¨ safety observation ¨ hazard study ̈ risk assessment ¨ Is this a Mandatory Change control item? YES ¨ NO ¨ Risk Assessment: Using the Risk calculator, assess the overall risk if this change is implemented? Overall Risk assessment (Very High, High, Moderate) If this is a Mandatory Change control item or if the risk assessment is Very High, High or Moderate, complete the form, and forward to your Line Manager for further assessment and entry to the modification register. DETAIL PROPOSED CHANGE REQUIREMENTS

Current Position Purpose of the change Expected outcome of the change (list any benefits in term of safety / environment / production / maintenance)


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page 2 of 2 HCP-8000-PL-Z-3303 Annexure 2, Change Approval Form

Estimated Cost of Modification

Cost ($) Comment Design Costs Labour Costs Contract Labour Material Costs Other Costs Total Cost Production Loss and Equipment Downtime

Tonnes /hours Comment Down time required for change Production lost due to change Safety Review and Assessment Is a hazard analysis required Yes ¨No ̈ *If yes, please attach the hazard analysis. Go to next section. What new hazards are created by the proposed change? Considering the hazards and impacts from the proposed changes what is the most likely incident that could result from the modification: Impact of the proposed modification (Please circle Yes, No or NA (Not Applicable)): Does the modification affect warranty or maintenance agreements? Yes ¨ No ¨ NA ¨ If so, what is the affect? Does the modification affect the maintenance work specs? Yes ¨ No ¨ NA ¨ If so, which work specs? Does the modification require drawing updates? Yes ¨ No ¨ NA ¨ If so, which drawings? Does the modification eliminate any stock items? Yes ¨ No ¨ NA ¨ If so, which stock items? Does the modification require stocking new parts? Yes ¨ No ¨ NA ¨ If so, which stock items? Does the proposal introduce a new chemical? Yes ¨ No ¨ NA ¨ If so, attach the MSDS for If change is rejected comments must be made Review and Authorisation

Name Signature Date Engineering assessment Accept ¨ Reject ¨ Reviewed by Construction Accept ¨ Reject ¨ Reviewed by Operations & Maintenance

Accept ¨ Reject ¨

Safety Assessment Accept ¨ Reject ¨ Authorised by Accept ¨ Reject ¨ Trial ¨ Trial period from to Person accountable for trial



Annexure 3 Acceptance Check & Implementation Review


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page 1 of 1 HCP-8000-PL-Z-3303 Annexure 3, Acceptance Check & Implementation Review

Annexure 3: Acceptance Check & Implementation Review BRIEFLY STATE THE CHANGE IMPLEMENTED: Implementation review Implemented by: Date: Change ref No.: Has the change been implemented as per the approved proposal? Yes ¨ No ¨ If not, state differences Does the modification present any unforeseen hazards? Yes ¨ No ¨ Risk Assessment: Using the risk calculator, assess the risk exposure from this change Overall risk assessment (Very High, High, Moderate)

Change records Has the change been recorded in the change register? Yes ¨ No ¨ Have the maintenance work specs been updated? Yes ¨ No ¨ NA ¨ § If so, which Work specs?

Have the required drawings been updated? Yes ¨ No ¨ NA ¨ § If so, which drawings?

Have the required spare parts been updated? Yes ¨ No ¨ NA ¨ § If so, which stock items?

Have all involved work crews been informed of the change? Yes ¨ No ¨ If change is rejected comments must be provided Reviewer Date



Annexure 4 Change of Role Approval Form


Safety Management Systems Manual Rev 0 Part 3, Section 3, Change Management Page 1 of 1 HCP-8000-PL-Z-3303 Annexure 4, Change of Role Approval Form

Annexure 4: Change of Role Approval Form

New Role or Change of Role - Approval form

Employee Name Start Date or Transfer date:

Personnel No.

New Role Permanent Transfer Temporary Transfer (Return Date:) Prior leave approval: from ________________ to ______________ Leave Type:

CURRENT POSITION NEW POSITION

Position Title

Work Group

Cost Centre

Supervisor

Phone Extension No Change New Number

Mobile phone Yes/No New number/ transfer

Email Distribution Groups No Change New Group

Safety assessment Date of last medical Does a medical need to be done as per the required standard? Yes ¨ No ¨ If yes, when? Role description complete? Yes ¨ No ¨ If No, to be written by whom: Safety accountabilities for leadership position to be explained by Date required:

Documents

HCP-8000-PL-Z-3303 P3 S03 Change Management Rev 0