The District Court found a mining company guilty of a Category 1 offence under s 31 WHS Act 2011 on the basis that operating a photometric plant with an unguarded conveyor chute, defective emergency stop controls, a non-compliant lanyard, accumulated loose material creating fall hazards, and a safety management system that was out-of-date and not implemented, constituted conduct engaged in with gross negligence exposing a worker to a risk of death or serious injury. The Court held that the managing director, as sole officer, failed to exercise due diligence under s 27 by failing to adequately fund and supervise implementation of the safety management system, failing to ensure the SMS and associated plans were kept up-to-date, and retaining control over expenditure and projects while denying the quarry manager resources for safety compliance. The Court also reasoned that s 31 'conduct' must constitute a breach of the underlying health and safety duty for coherence with the statutory scheme, and that the s 27 officer duty requires a minimum standard of behaviour involving a system ensuring PCBU compliance and adequate supervision that the system is carried out — though the Court acknowledged the scope of s 27 has not been authoritatively determined.
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