ICL Boulby Potash Mine

Margot James Excerpts

Monday 27th February 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I congratulate the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) on securing this debate on such an important matter and on his work, which I read as part of my preparation for this debate, over several years to draw attention to some of the issues that he has raised tonight, notably the worrying health and safety record of the Boulby mine over recent years. I will return to health and safety later on.

The Government recognise the importance of the potash industry to the hon. Gentleman’s constituency and to the wider region. It is inextricably woven in the industrial fabric of the north-east but, as he said, the Boulby mine has faced difficult market conditions in recent years. Revenues and profits in the industry have been hit by low global potash prices, mostly as a result of greater competition in the global market, but some of that competition has not been what we would call free and fair. According to analysis by the market experts, IBISWorld, exports currently form more than a quarter of the industry’s revenue, so UK miners are exposed to global price volatility. The situation has been exacerbated by over-supply, which is unlikely to go away in the short term.

The job losses at the mine since 2014 have clearly come as a major blow to the employees concerned, their families and the communities in which they live. The rapid response service has delivered a number of redundancy briefing sessions to Boulby employees to help get workers back into employment as quickly as possible. In addition, the National Careers Service delivered support with CV writing, digital job searching, interviewing skills, and one-to-one appointments for rapid response funding applications.

However, with the production of polyhalite emerging as a key product of the UK industry, output from the UK is expected to expand in the next five years. I am pleased that ICL, which operates the Boulby mine, is now planning over the next five years and beyond to expand its output of polyhalite—a naturally occurring and highly sought after form of potash seen as a superior fertiliser. I understand that Boulby and the areas to the south have a near monopoly on this mineral resource, and I hope that that will be a great advantage for the area in the coming years. In fact, polyhalite is expected to overtake potash as the key product of the industry after 2018, and I hope ICL’s long-term commitment will result in a brighter long-term future for the mine and its employees.

[Tom Blenkinsop]

The Minister is correct that the industry is looking at polyhalite overtaking potash as the main product to sell to the market. Polyhalite is an incredibly hard material and is much more difficult than potash to mine. Extra help to market the product is therefore needed as the industry adapts to it. Has the Minister taken on board my comments about how polyhalite can be incorporated into the industrial strategy and marketed as an industrial product to the world’s agricultural producers?

[Margot James]

I certainly have taken that point on board. I appreciate that polyhalite is mined only from a layer of rock more than 1,000 metres below the North sea, below the potash seam at the Boulby mine, making it very much more difficult to access. I would welcome the industry’s contribution to discussions on how the industrial strategy that we are developing with the north-east in mind could benefit this emerging sector. It is a challenger sector and very much deserving of our attention as we roll out the industrial strategy.

I have quite a lot of information, so I will be selective. I was shocked by what I read about the health and safety concerns. I have spoken to the Health and Safety Executive, and we have a representative among the officials in the Box this evening who has travelled down from Bootle for this debate.

The Government take health and safety at work very seriously and fully support the HSE’s efforts to ensure that Great Britain remains one of the safest places to work in the world. There have been six significant incidents at the mine in the last two years—although, as the hon. Gentleman says, there is a longer record of safety concerns—resulting in the fatality he mentioned, three serious injuries and 14 workers being placed in potentially life-threatening situations. The HSE has found inadequate risk assessments, poor procedures and a failure to implement procedures designed to tackle the root causes of the problems.

I take this opportunity to express my heartfelt condolences to the family of Mr John Anderson, who was tragically killed while working at the mine on 17 June 2016, and to the other workers who have been injured or distressed as a result of accidents or incidents at the mine in recent years. All the incidents have been, and some are still being, thoroughly investigated by the HSE’s mines inspectors, whom I know the hon. Gentleman has met, and the HSE has called on additional specialist input, such as on human factors, where necessary. I assure the miners that the appropriate action either has been taken or will be taken. Should the HSE’s current investigations provide evidence of the management’s actions falling short of legally required standards, the HSE will not hesitate to prosecute ICL. Indeed, I believe that the HSE is preparing to launch prosecutions relating to the trapping incidents in April 2015—that is one example.

The HSE and the industry will continue to work together to improve safety performance. The hon. Gentleman mentioned the role of trade unions, which I understand have been very constructive and very dedicated to improving safety standards, and they will be a vital partner in that process.

[Tom Blenkinsop]

We cannot go into detail on the cases because they need to be taken through the official legal channels before we can speak about them in any way. My main concern is that, due to the pending legal action, the sick pay period ran out for the miners involved in these cases and they felt forced to go back to work in order to have an income. My worry is that some of those miners may have been in a state of post-traumatic stress, placing other workers in potential jeopardy, but had to go back to work because they are the breadwinner for their family. Will the Government review the legislation to ensure that, pending the legal action, workers in such workplaces can seek sick pay for an elongated period?

[Margot James]

The hon. Gentleman makes a reasonable request. I cannot give him a direct answer from the Dispatch Box, but I am certainly prepared to take that request back to the Department and ask officials to review the matter. I shall write to inform him of any progress I am able to make on that issue. He describes a bad situation being made worse, potentially putting others at risk; that seems to be something we ought to review.

The health and safety law that covers underground mining was brought up to date by the Mines Regulations 2014. All the previous relevant law, some of it 60 years old and drawing from even earlier requirements, was modernised and replaced without reducing any necessary protections. That was no small task, and would not have happened without the co-operation of the industry and, as I just mentioned, the unions representing Boulby’s workers. The law is now more straightforward and, together with the associated guidance, which was also modernised, duty holders should be aware of and understand what is expected of them when it comes to operating a safe mine.

The new law places clear duties on mine operators to ensure that sufficient and effective systems for the management and control of risks are in place and being followed. We now have a single set of regulations to cover the major hazards associated with underground mining, including ground control, shafts, winding equipment and operations, inrushes, and fire and explosion, as well as effective arrangements for escape and rescue if controls fail. Those hazards are far from new, and they are well understood by the underground mining industry. As such, it is unacceptable that some standards have not been applied consistently in the management of the Boulby mine. The Government and the HSE will work together to ensure that duty holders recognise the potential for those hazards causing major harm and that they control the associated risks.

The hon. Gentleman mentioned the underground fire. I understand that improvement notices were served on Cleveland Potash Ltd, after which improvements to underground safe havens and improved communications facilities and water availability have now been put in place.

The HSE has an intervention plan for every underground mine in Great Britain, and each reflects the specific inherent hazards and the mine’s previous health and safety performance. The Boulby plans for 2016-17 and 2017-18 reflect the outcomes of the investigations into the recent incidents. HSE inspectors will base their regulatory interventions and their oversight of the mine’s health and safety performance on those plans, which I know that the hon. Gentleman has discussed with the HSE.

I have probably said all that I can about the health and safety aspects of running this mine. As I have told the hon. Gentleman, I have talked to the HSE about the issues that he has raised, and also about my concerns when I read the individual case notes of some of the people who have had terrible injuries and who have been in fear of their lives. It was clear to me from reading those notes that several of the incidents could have been avoided, and certainly could have been reduced in their effect had proper and robust safety procedures been observed and implemented at all times.

I was encouraged by the response that I received from the HSE with regard to new management at the mine as it has a far more robust outlook and is well informed by the HSE, the trade unions and the hon. Gentleman himself. I think that we can be optimistic that the future of Boulby mine, both economically and, even more importantly, from a safety perspective, will be brighter. We must get everything right for the even more risky accessing of the new mineral source, which has so much to offer his constituents and the mining community that is so important to his part of the world.

Question put and agreed to.