The Safety Journey can lead to
Business Success
Speaker:
Jonathan Nitschke
General Manager
John Nitschke Drilling
JND the Company
John Nitschke Drilling has been providing the
Mining, Exploration and Water Well Industries
with a professional and comprehensive drilling
service since 1962.
John Nitschke Drilling is an privately owned and
operated Australian company. The company is
based at Hahndorf in the Adelaide Hills of South
Australia. John Nitschke started the business in
1962 and was a pioneer in the development of
rotary percussion drilling in Australia. Since then
the company has undergone planned and steady
growth, and currently operates one of the most
modern and technically advanced fleet of drilling
rigs in Australia.
JND has led the way in the development of
innovative drilling equipment with advanced safety
features. The company operates a large
engineering workshop, which enables research
and development to be carried out on an ongoing
basis. All rigs are build to meet and exceed the
safety requirements of our major clients which
include BHPB and Rio Tinto.
JND have the capacity and expertise to drill 6 to 24
inch diameter rotary to depths of 1500 metres, 5.5
inch diameter reverse circulation to depths of 1000
meters and NQ2 core to over 2000 meters. All
terrain all wheel drive vehicles can get our
equipment to the most difficult and remote sites to
carry out drilling projects.
JND carry out some of the most technically difficult
drilling projects in the industry today. We are
committed to continuous improvement and industry
best practice. Our prime objective is to provide a
high quality, diverse, innovative and reliable
contract drilling service to all sectors of industry.
The Board and myself have a vision and view that
we will strive to be the best at what we do. This is
achieved by having the right people, the right
equipment, the right processes and procedures
and the right jobs.
At JND Safety makes good business
sense

JND had been providing drilling services to
WMC at the Olympic Dam Mine since early
2000. We provided a very competent and
productive drilling service but only had
reasonable systems and an average safety
performance. We were in our comfort zone.

It wasn’t until BHP Billiton purchased the mine
in 2005 that a whole new focus was placed
on safety performance, management systems,
equipment compliance and the high standards
and expectations that BHPB expected from its
contractors. “Zero Harm, what was Zero Harm
we have never heard of that before”. It was
then that we realised that we had to do this
job properly and meet these new standards
and requirements or otherwise our contract at
Olympic Dam may soon be in jeopardy.
BHPB was ramping up for a huge expansion and they needed competent and professional drilling
contractors that were aligned with there goals and standards to undertake this work. JND was given
the opportunity to be a part of Olympic Dam Expansion (ODX) Project but as a company we had a lot
of work to do and a long path to travel to meet all there requirements.
The Journey

After some long discussion and strategic
planning it was decided that JND would
embrace BHPB rules and regulations and
use this as an ongoing improvement
process to ensure the success of our
business.

We considered the key business drivers are
having the “right people”, the “right
equipment”, the “right systems” and
developing good sound relationships with
our clients. We believed that if all these
thing were right everything else would fall
into place.

BHPB conducted an audit of our company and provided us with the results so we could use it as
a bench mark and a process to identify areas of improvement. The journey had begun we
identified our strength and weaknesses and put forward an improvement plan to move forward.
We are very good at providing drilling services but our safety and management systems could
definitely be improved.

We didn’t go around trying to reinvent the wheel but instead we researched and incorporated
BHPB systems and policies to further develop our own. Additional resources were also required
to meet our objectives. This included the addition of extra drilling supervisors and full time safety
and training professionals to support our operations. It is there job to continue to develop and
improve our “Zero Harm” safety management system or as we call it “JND Drill Safe”.
The Right People

JND all ready had a very experienced and professional management team and core crew but we
needed to grow the business and we wanted to ensure that the JND culture continued within the
company.

When employing people we look for people who have a “can do” approach who demonstrate there
is only one way to do things and that’s the right way. They must have similar core values to our
own and I believe these values are hard wired into a person. Once identified these people can be
trained and develop into safe and productive employees.

A comprehensive training and performance
management system has also been
developed to ensure an ongoing opportunity
for employees to increase there technical
proficiency and promotional prospects.
Safety is always a key focus.

We supply the best equipment with the best
back up and support to enable our crews to
do their jobs safely in the field.
The Right Equipment

JND have invested heavily in new state of the art drilling equipment. Further customized
engineering is then undertaken at our workshops to improve the safety and operational features of
the equipment. Using the hierarchy of controls we are able to redesign the equipment or work
process to eliminate potential hazards. This process gives JND the ability to put equipment into
the field that is safer and superior to our competitors.
Innovation & Automation
Air Operated Spanners
Automated Breakouts
Automated Rod Handling


Automated Drill Pipe Handling
Automated Pipe Cassette


Winch Overwind Protection
Hydraulic Rod Storage Sloops


Climate Controlled Driller Shacks
Submersible Pump Trailer

Roll Over Protection (ROPS) fitted Vehicles
The Right Systems

JND Mission Statement

In its chosen areas of business, John Nitschke Drilling Pty Ltd will be acknowledged as a leader,
and be the preferred drilling company with which to be associated – as a customer, employee or
business partner.

We will maintain this position by always:

Performing our work to standards agreed with our customers, and providing value-for-money
services

Providing competitive remuneration to staff, and a safe and satisfying work environment

Meeting our obligations to business partners, and working with them in a mutually-beneficial way
What do we want to Achieve







Aim for Industry Recognition
Create a safe workplace
Have a client focus
Improve quality
Engineer controls to improve outcomes
Value our people
Encourage excellence
How are we going to do it






Commitment from Management
Strategic Planning
Suitable Rules - JND027 Standard Work Procedures
Training-Communication- Resources
Monitoring Performance through inspection and audit framework & client reporting
Review
Risk Control
JND & Client Partnerships

JND continued to develop its systems with the help and guidance of BHPB ODX. This was a
constant process of planning, implementation and review.

The ability to be part of the BHPB group has been a very valuable learning experience for our
company. They all ready had all the systems and procedures in place and were committed to
achieving “Zero Harm”. It was up to us to make that commitment as well.

Over time JND develop a competent and robust Safety Management System and we started to
see positive results. It was a long and demanding journey but the rewards have been worth the
effort. JND has developed a safety driven culture that we will continue to nurture and grow.

We firmly believe that safety does not compromise production.
The Results
JND’s aim is to produce results and this graph shows that we continue to
exceed client production requirements.
2007 - 2008
30%
20%
10%
0%
1st quarter
-10%
-20%
-30%
2nd Quarter
3rd Quarter
4th Quarter
The Results Cont..
STAFFING v RISK
This graph represents a growth in hours worked with a focus on
safety, without interfering with production
2007 - 2008
30
25
20
Incidents
Hours = X 1000
15
Staff X 10
10
Injuries
5
0
0
0
0
0
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
 Production Target VS Actual Meters Drilled
Cumulative Target
Total Annual Drilling - 2007/2008
T
Cumulative Actual
78000
A
72000
A
C
66000
60000
R
T
54000
48000
42000
G
U
36000
30000
E
A
24000
18000
12000
T
L
6000
0
July
Aug
Sep
Oct
Nov
Dec
Month
Jan
Feb
Mar
Apr
May
Jun
Overall Safety Performance
JND Safety Statistics
2007-2008
Lost Time Injuries (LTI)
Restricted Work Injuries (RWI)
First Aid Cases
JND TRIFR - 3MTH
JND TRIFR - 12MTH
#REF!
12 Month Rolling Average AIFR Per Million Manhours
8
80
7
70
6
60
5
50
4
40
40
3
30
26
25
24
24
24
24
24
24
24
24
2
11.9
11.9
11.9
11.9
0 0
11.9
0 0
11.9
0 0
11.9
0 0
10
0
08
08
08
ay
M
rAp
ar
M
08
bFe
D
0 0
08
nJa
0 0
7
-0
ec
0 0
7
-0
ov
0 0
N
0 0
7
-0
ct
0
11.9
O
0
11.9
07
pSe
11.9
07
gAu
0
13
11.9
7
l-0
Ju
1
20
TRIFR Per Million Manhours
Number of Injuries
Medical Treatment Injuries (MTI)
 Insert
TRIFR graph
Safety Achievements - Awards

Industry Recognition

Staff Recognition
 718 Days without TRFIR
 1242 Days without LTI
In recognition of John Nitschkes remarkable advance and performance in the area of drilling,
safety, technology and productivity on the Olympic Dam Expansion Project.
Summary

JND is committed to Client relationships.

Evidence supports that Safety WILL NOT be compromised.

Our experience shows that we are results driven.

JND has the right people to follow the job through.

Success in safety leads to success in business.

JND are now working on long term contracts for;
BHPB Iron Ore in Northern WA
BHPB Cannington in NW QLD
BHPB Olympic Dam in SA
 JND Thanks you for the opportunity to present
 QUESTIONS PLEASE