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Member, Beacon International Group, Ltd.
PORT KEMBLA, Australia -- Australia's largest mining and resources company, The Broken Hill Proprietary Co. Ltd., will not incur any business interruption losses from a fire at its Port Kembla steel plant.
A spokesman for BHP Integrated Steel Group, said the company suffered damage to a slab caster, used to mold steel, and to cabling at the plant.
BHP is expecting workers compensation claims from minor injuries, but no business interruption claim because the plant returned to normal operations the next day. Product flow to customers had not been disrupted as a result of the fire, the spokesman said.
George Edgar, general manager and chief executive officer of BHP Integrated Steel Group, said emergency procedures were implemented quickly and effectively, avoiding major injury to employees and minimizing damage to the plant and equipment.
BHP expects to have an initial estimate of property damage losses this week. Larry Parkes, BHP chief engineer of technology, was investigating the damage last week.
The fire occurred Nov. 24, when a transformer or high-voltage power switch failed at the flat products division of BHP subsidiary BHP Steel (AIS) Pty. Ltd. The spokesman said cabling caught fire, shutting down the power supply to the plant.
Two people suffered minor injuries, but no workers comp claims had been filed by last week, he said.
Any property claims that exceed BHP's retention levels would trigger coverage written by the company's Melbourne, Australia-based captive, BHP Marine & General Pty. Ltd.