The worker was installing an 8m cable bolt with a hand-held bolter on the offside of a longwall belt.
He failed to notice that the bolt was not fully inserted into the hole and the nut had cracked and continued the rotation of the bolter.
The nut travelled the full distance of the thread and once at the end of the thread, the hand-held bolter started to rotate.
The worker's left hand came free of the handle, but he maintained grip with his right hand rotating towards the rib.
He let go of the bolter and raised his right arm to protect his face and in the process hyper extended his arm, dislocating his right shoulder and suffering an elbow laceration.
The NSW Resources Regulator said mine operators and contractors should ensure that risk controls associated with rotating hand-held bolters were documented and implemented by workers.
"This should include operating in restricted areas and where the operating height of the bolter may affect the worker's ability to control the bolter if it begins to rotate," it said.