Research of the Injury Rate in Selected Mining Sectors and the Economic Benefit of Mine Safety Improvements

"INTRODUCTION Mining activities must be safe and profitable. These two requirements influence each other. The purchase and implementation of safety improvements costs money. Injuries and illnesses at mines stop or delay production and may result in additional costs or a loss of profit. Other effects of injuries and illnesses include the negative influence on employee morale, corporate reputation and conflicts with contract partners. Based on this researchers asked the question: are mines with lower rates of injuries and illnesses more profitable than mines with a higher frequencies? One aspect of this research is the evaluation of the safety situation and the measurement of benefits of safety improvements in the German mining industry. In the following paper, this part of the research will be examined. The main aim is the evaluation of injury rates in different German mining sectors and regions in Germany. SELECTION OF GERMAN MINING OPERATIONS The research team decided to focus the study on the salt and potash and the aggregate and industrial minerals mining industries in Germany. These two mining industries are different in the number and size of operators, structure of the industry, pricing and markets. The selection of two different industries adds to the clarity of the evaluation. Salt and potash mining industry The German salt and potash industry is primarily located central Germany. All salt and potash mines in Germany are underground operations. In 2015, the German potash industry employed 8,100 employees and generated a total revenue of 2 billion Euros. German potash reserves include magnesium compounds like kieserite (MgSO4·H2O), in addition to sylvite (KCl) and carnallite (KMgCl3·6(H2O)). The German salt industry employed 2,300 people in 2015 and generated revenue of 800 million Euros (Krueger, 2015) There are seven mining companies with salt and potash operations: esco-european salt company GmbH & Co. KG, K + S Kali GmbH, Saline Luisenhall GmbH, GSES Glückauf Sondershausen Entwicklungs- und Sicherungs-gesellschaft GmbH, Südwestdeutsche Salzwerke AG, Wacker Chemie AG and Südsalz GmbH. In this way, esco – european salt company GmbH & Co. KG is an affiliated company. Esco was founded as a joint venture of K + S and Solvay in 2002, since 2004 K + S is the sole holder (esco - european salt company GmbH & Co. KG, 2016). Likewise, the Südwestdeutsche Salzwerke AG has a controlling interest in Südsalz GmbH (Südsalz GmbH, 2016). Aggregate and industrial minerals mining industry The aggregate mining industry in Germany is comprised of many small mining operations and relevant companies. According to the German Department of Economics (BMWi, 2015), the following industrial materials are classified as aggregates: fluorite, barite, kaolin, quartz and quartz sand, quartzite, silica, loamy and foundry sand, pegmatite sand, shale, clay, bentonite, schistose, limestone and dolomite, gypsum and anhydrite, basaltic lava and lava sand, gravel and split, pebble and silicic sand and peat."