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The company had been charged with neglecting its duty of care obligations under Queensland's Coal Mining Safety and Health Act 1999 over an incident at Goonyella Riverside mine west of Mackay on July 28, 2004. Maximum fines under the Act were $300,000.

The charges arose after two workers were injured by a large quantity of falling mud while trying to clear a build-up of mud from under the body of a large excavator.

One man suffered a fracture to the lower lumbar area of his spine and a fractured right ankle while the other suffered a split spleen that had to be removed.

Under the settlement terms from the January 30 case, the department will use the $300,000 solely for safety and health research, and for safety and health projects that will benefit the Queensland coal mining industry.

The department has total discretion in identifying the appropriate research projects.

Goonyella Riverside minesite senior executive Ben Zietsman will meet with the department's Safety and Health Division to explain improvements made in operating procedures at the mine and any additional improvements which were identified in the Mines Inspectorate's safety investigation report.

Zietsman will meet with the executive director of the department's Safety and Health unit, Stewart Bell, and chief inspector of coal mines, Gavin Taylor, to explain improvements made, or to be made, in operating procedures at the mine.

"These improvements are essential to prevent any recurrence of such an incident at any mine. The payment is significant and signals the Queensland Government's strong commitment to use the full force of the Coal Mining Safety and Health Act to improve safety for all workers in our mining industry," Taylor said in an update today.