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Industrial magistrate Ron Muirhead told the contractor, Robert Danger, that he exposed himself and other workers to an unacceptable level of risk, according to the Daily Mercury.
In the incident, Danger reportedly gave an LHD operator a key to override the shutdown system of the LHD after it shut down because of a methane reading of 1.25%.
The LHD continued to operate for around 30 minutes afterwards, according to the newspaper.
Another contractor who was working as a deputy, Kevin James Casey, was also reportedly fined $1500 for failing to report the incident.
Both contractors were dismissed from working at North Goonyella after the incident became known, but they have reportedly found new jobs in the mining industry since.
It is believed that employees of North Goonyella informed site management of the incident.
The reasons why Danger overrode the methane sensor on the LHD were not covered in the newspaper report.
The report incorrectly stated that Danger was a site supervisor at North Goonyella, according to information received by ILN.