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By T Ireland, S Eratne, W Newns, P Spies

The approach to risk management during the procurement of major projects often has a significant outcome on the ultimate delivery of a project. The NZ$1.4 B Waterview Connection project is the largest and most complex project yet undertaken by the New Zealand Transport Agency (NZTA) and the procurement process for an alliance contract was refined to provide compliance with the International Tunnel Insurance Group (ITIG) Code of Practice for Risk Management of Tunnel Works (TCoP). The principle of shared risk within an alliance incentivises a common understanding of project risks prior to finalising the alliance agreement and therefore enables superior risk management through design, construction and beyond. Risk management practices need to be instigated well in advance of commercial phases, so that commercial competition does not lead to a significant elevation of project risk. In particular the practice of gaining commercial advantage by taking on a potentially unmanageable level of risk is one of the outcomes to be avoided by the TCoP.During the procurement phase the NZTA placed high value on design and construction mitigation measures proposed in order to address ground risks, as is appropriate for a major tunnel project. In order to achieve alignment on the level of geotechnical risks an Alliance Geotechnical Baseline Report (AGBR) process was developed.This paper describes the measures taken during the procurement process to achieve certainty with respect to outcomes and minimise project risks whilst also achieving value for money. Refinements to the procurement process to ensure compliance with the TCoP prepared by the International Tunnel Insurance Group (ITIG) are described along with the AGBR process applied as part of a suite of measures to achieve a successful procurement outcome.CITATION:Ireland, T, Spies, P, Eratne, S and Newns, W, 2014. Risk management and use of a geotechnical baseline report for a competitive alliance procurement?process, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 553–562 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By R J. Everett

The mining industry is beginning to adopt quality systems based on the requirements of International Standards for quality assurance, such as the ISO 9000 series. Indications from similar industries are that considerable benefits are to be had from their adoption. This paper describes the use of the International Standard ISO 9001 for quality assurance within BUKA Minerals Limited. This provided guidance for the development of a clear statement providing agreement on the processes to be followed and the outputs required when dealing with outside service providers. Discussion focuses on the interaction with BUKAÆs consultants and contractors during the specification stage, resulting from the application of quality assurance techniques. Risk analysis was used to identify and manage the risks associated with the companyÆs contract for geotechnical and mine design services and the tender for a mine development program of work during the feasibility stage of the project. Setting acceptance controls for the deliverables from such contracts is traditionally fraught with difficulty. BUKA used Failure Mode and Effect Analysis for exposing underlying risks that were not effectively being countered. The briefs were reviewed and additional controls were developed to manage the risk. These controls have provided clearer instructions to the consultants and contractors, indicated audit points for the company and defined the deliverables. There exists within the company, and among its outside service providers, a clearer understanding of what is to be achieved and how it will be measured. The process has imparted considerable confidence to both parties on how the work will proceed and what outputs are to be provided. Some discussion is provided on how quality principles are being applied throughout industry and commerce, generally, and how they may apply to the mining industry. The paper argues that, far from being an appendix to the tendering process, Risk Management should be a mandatory step integrated into the definitions of the work.

Jan 1, 1998

By A Querzoli, B Williams

In late 2014 the Flinders Power Management Team was executing business improvement plans to ensure continued electricity generation until 2028 and beyond. Six months later, in June 2015, the Board announced the closure of the Flinders Power South Australian business, including the Leigh Creek Coal Mine, the Northern and Playford Power Stations located at Port Augusta and the 250km railway line. The announcement was preceded by a brief period of internal planning. A date was soon set for ceasing coal mining operations, being November 2015. The mine is unique in many ways. Located approximately 550km north of Adelaide the site has over 100 years of history and was formerly operated by the South Australian Government. Privatisation in 2000 saw the mine continue operation under Perpetual Leases from the South Australian Government. The leases included exemptions from multiple sections of the Mining Act 1971, obliging primary regulation under the Mines and Works Inspection Act 1920. The coal, being a low rank sub-bituminous brown coal, is prone to self-heating and spontaneous combustion. The mine and company town Leigh Creek were the economic and cultural heartbeat of the community. Facilities at the mine were shared by the community and vice versa. While many mines across Australia and the world enter periods of care and maintenance, few have been actively closed to the point of relinquishment (Bennett and Lacy, 2016). A swift decision to close, followed by a short mining operations shutdown period, presented significant technical and regulatory challenges for both the mine operator and for Regulators. The subsequent joint risk mapping process employed by Flinders Power and South Australian Mining Regulators was a unique real-world example of collaborative mine closure planning and execution. Lessons learnt are valuable for all mines, production facilities and for Regulators, even for those who may wrongly assume that closure is many years away. CITATION:Williams, B and Querzoli, A, 2018. Risk management for minesite closure planning and execution – start now! Lessons from the closure of the Leigh Creek Coalfield, South Australia, in Proceedings Life-of-Mine 2018, pp 68–72 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

The nature of the specialty glass and ceramic business magnifies the dependency of the ultimate product on the unique properties of their raw materials used to make them. This dependency has implications in the management of risk in the supply process which requires a special procurement organization and program commitment to be successful. The Coming system of managing critical materials and factors in development of alternate new suppliers and products is discussed.

Jan 1, 1989

The proponents of new mining projects always run the risk that their project is deemed to be not in the public interest. Nothing to be done here except to try and pick it earlyùit is, after all, the approvals process that is supposed to screen such projects out. But there is a second risk, about which much can be done: that inadequate or untimely information confuses the formal assessment of a project and the political context within which the decision is ultimately made. This is environmental impact assessment (EIA) process risk and it has become steadily greater in a changing world, where: miners have lost clout; public trust in institutions has declined; governments follow, as authority pyramids give way to spheres of influence; NGOs are asking the questions people want answered; and stakeholders have become the reference point. This new world deals harshly with yesterdayÆs methods. But it needs to be understood if principles and methods for managing EIA Process Risk are to be advanced.

Jan 1, 2003

Mining is a high risk industry where miners seek to secure certainty in all of their dealings. The introduction of native title to the Australian legal system with the High CourtÆs 1992 Mabo decision and subsequent Native Title Act 1993 has added to the risks associated with implementation and the ongoing operation of exploration and mining projects. The High CourtÆs Ward case in August 2002 confirmed Crown ownership of minerals and petroleum. But the Court also found that a mining lease that allowed an exclusive possession for mining purposes did not extinguish all native title rights and interests. Although the Court was specifically considering WA mining tenements, the WA mining lease is very similar to the mining leases and licences that exist across Australia, meaning that these tenements are unlikely to fully extinguish native title. The Ward case means that native title remains squarely on the table now and into the future for those involved in developing exploration and mining projects. However, certainty and workability is capable of being secured and this paper discusses some means by which this may be achieved. The paper starts by considering two of the many 1998 amendments to the æfuture actsÆ regime under the Native Title Act, Indigenous Land Use Agreements (ILUAs) and the application of ægood faithÆ negotiation to all negotiating parties. It then looks at native title agreements, other issues affecting negotiations and tips for negotiation technique.

Jan 1, 2003

One of the biggest drawbacks of deciding upon a heap leach method of treating gold ore is the risk associated with the full-scale production heaps not performing as predicted by the testwork. This paper examines the key decisions that are taken in the design of a heap leach project, and suggests ways in which exposure to these risks can be minimised. It also looks at monitoring techniques to give early warning of problems and possible remedial actions.

Jan 1, 1994

Solid Energy New Zealand Limited (æSolid EnergyÆ) is a state-owned coal mining company, producing 4.0 Mtpa from a number of opencast and underground mines in the Huntly, West Coast and Southland regions in New Zealand. The company currently exports 2.1 Mtpa of coking coal. Exports are expected to grow strongly over the next five year as the company expands production into new semi-soft and thermal coal reserves. Domestic coal demand is also expected to grow strongly, particularly in the North Island, as the Maui gas field reserves diminish, and thermal coal becomes more important for electricity generation and meeting the energy needs of forest processing and other industries. Solid Energy is expanding and developing its risk management practices across all areas of the business: strategic planning û extensive use of scenario analysis and probabilistic modelling over a 20 year period; investment decisions û development and application of a rigorous six stage æProject Assessment GuidelineÆ process for all new mine developments; geological and geotechnical risk assessment techniques û use of best practice techniques including seismic surveys; financial risk management û a dynamic approach to hedging based on effects based analysis of Cash Flow at Risk analysis against preset risk tolerances; risk financing û the use of a captive insurance subsidiary, and the experiences of a small coal company seeking to obtain insurance cover on a æhardÆ international insurance market; and integrated risk management û the challenges of trying to implement a broad integrated risk management approach across the company, that supports implementation of strategic objectives as well as meeting æcompliance or legislative basedÆ risk management requirements.

Jan 1, 2003

A formalised approach to risk management has been regulated in the United Kingdom (UK) since the Construction (Design and Management) Regulations 1994 (CDM) came into force in 1995. These regulations have recently been revised in 2007. In response to a series of significant claims around the world the UK insurance industry published a code of practice for risk management of tunnels in 2003, and that was followed by an international version in 2006. Probably one of the main contributions of this new approach is the recognition that health and safety risks can best be addressed early in the process, initially by the owner and then by the designers. One of the aims is to achieve elimination of risks by good design. The advantage of a risk-based approach to tunnel design is that all risks are considered explicitly, and any residual risks in the design are communicated clearly to the construction team. This paper looks at the implementation of this formalised approach to risk management with reference to the A3 Hindhead Project. The design has been undertaken in accordance with the requirements of the CDM regulations, and also in compliance with the Joint Code of Practice for Risk Management of Tunnel Works in the UK. An outline of the risk-based design process used is provided, including examples.

Jan 1, 2008

By M Bezzina

In 1995 Standards Australia International Limited æSAIÆ published a risk management standard titled AS/NZS 4360 Risk Management. It was the first such standard published by a recognised formal standards body anywhere in the world and it put Australia at the leading edge of the risk management discipline. Many Australian and international organisations have utilised the risk management standard and it is one of SAIÆs most important and popular standards. Since its publication in 1995, the risk management standard has gone through a major revision in 1999 and is currently undergoing another such review, which is due for completion in 2004. This paper will chart the application of the standard within certain key organisations since its inception in 1995. A brief overview of the methodology behind AS/NZS 4360 will be presented as well as an overview of supporting and related standards. It is prudent to base risk management and other management system issues on existing and tested standards rather than creating new proprietary approaches. Examples of areas in which the risk management standard might be applied in the mining industry are given, subject to the specific operations of each company: technical, commercial, environmental, informational, and safety and regulatory.

Jan 1, 2003

By W Mackinnon

Coal mining operations require the expenditure of appreciable start up and working capital in order to produce saleable coal for domestic or export markets. The competitive nature of the coal business restricts margins, and so it is imperative that downside risks, in terms of production outcomes, are minimised. The major risks identified for a coal mining operation, aside from sales volumes and coal price, are generally thought to be confined to the geology of the deposit and the mining process. However, the impact of product quality and yield can be very significant. If product coal is inferior to projections, then it will need to be sold at a discounted price and this can dramatically impact on margins. Equally, if yield is five to ten per cent less than planned, then this will have a huge effect on profitability. This paper will look at issues relating to in situ moisture and density, resource quality evaluation, modelling of washability and dilution, and simulation techniques, and how best practice approaches can be incorporated into mine planning and feasibility studies. Risks are best modelled and understood by adopting a detailed approach that is fully documented and auditable. This is particularly needed for multi-seam and multi-product operations. Once a well defined systematic approach is established the potential risks can be evaluated by testing different scenarios, carrying out sensitivity analyses, variability modelling and examining extreme operating conditions. These have been discussed in the paper, along with some related issues such as the cost of quick fixes and the value of spending a little more in the coal preparation area.

Jan 1, 2003

By Coskun B

The classification of selective mining units (SMU's) and the assignment of grades to those classified SMU's are very important in open pit mining, especially for precious metal mining. During ore control planning, the classification of mineral

Jan 1, 1998

The current insurance market has been brought about by a number of pressures, including: collapsing investment returns; growing losses, both normal and catastrophic; and reserve strengthening. This is impacting most classes of insurance coverage, with the traditional characteristics of higher pricing and greater levels of retention, however it is now translating into a lack of capacity and reduced coverage. This presentation will explain how the market has arrived at this situation and will challenge whether this is the traditional insurance cycle or a structural correction. It will also address the anticipated time of correction.

Jan 1, 2003

Geotechnical practice combines the site engineering geological model with engineering design and operations to control risk. The responsibility of the geotechnical professional is to present relevant engineering geological information to an engineer to effectively impact an outcome. Return is enhanced by understanding expected operating and capital cost due to ground conditions.   Risk is effectively communicated by a successful geotechnical practitioner. In a mining environment the need is to assess ground conditions accurately and quickly, and to effectively communicate expected ground response due to mining. A good engineering geological model includes a description of geotechnical engineering parameters to design assuming reasonable expected soil, rock and water conditions. Pit slopes are steepened, stope spans widened and waste foundations and land forms are constructed all under geotechnical control.   The responsibility of the geotechnical professional is to collect, assess and disseminate relative engineering geological information. The geotechnical professional is a person advising on ground related engineering, and generally operates within geology and engineering end members.   Return is better assessed on an understanding of ground cost. In operations the goal is to meet production at lower cost. In evaluation, regional and exploration geology, mine design and expected operational factors influence expected cost and project return. Return allows companies to meet shareholder expectations, attract equity to develop and add value to the community.   This paper presents a discussion with some examples to present an approach and design philosophy for geotechnical practice in the mining industry.

Jan 1, 2004

By M Barker, H Li

The total number of tailings accidents has reduced from over 50/decade in the 1960s-1980s to less than 30/decade in the 2000s to 2010s. However, the rate of significant tailings dam failures has not been reduced. The significant tailings dam failures the mining industry experienced in the recent history include: Merriespruit, South Africa, 1994; Los Frails, Spain, 1998; Kolontár, Hungry, 2010; Mount Polley, Canada, 2014; and Samarco, Brazil, 2015. The conventional Factor of Safety approach itself may not be enough to further reduce the rate of significant tailings failures due to its limitations such as uncertainty. For example, the same factor of safety could have a vast range of annual probability of failure for different tailings dams, and insufficient consideration of failure consequence. This paper presents a risk based approach for design with the objective being to minimise tailings dam failures, especially those significant tailings failures with high consequence and low probability. This approach includes risk based design and risk management using bowtie tools. In the risk based design, quantitative analysis will be used to estimate the annual probability of failure and the tolerable failure criteria is linked to the consequence category. Bowtie analyses will be used to understand hazards and risks and identify and select independent controls that are effective in preventing and mitigating catastrophic failures. In this paper, examples of risk based design and bowtie analyses are presented and discussed. CITATION:Li, H and Barker, M, 2018. Risk-based approach for minimising tailings dam failures, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 397–414 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By J E. Everett, F Grobler

This study considers realistic data for a planned open pit iron ore mine, but is applicable to any open pit situation. By interpolating drill hole data, grades are generated for a rectangular block model. Each blockÆs grade designation vector has components for each analyte (chemical element or compound) influencing ore value. Interpolation by means of geostatistical kriging leads to each block being assigned its expected value, and thus underestimates the overall grade variability. Alternatively, interpolation by means of conditional simulation is a method that implements random sampling from an infinite population of solutions. Each conditional simulation has appropriate overall grade variability, but estimating any blockÆs mean and variance requires sampling from multiple conditional simulations. For a block model, an ore/waste selection criterion maximises the expected tonnage at a target grade. This criterion is a linear composite of the grade components, with positive coefficients for the beneficial analyte (iron) and negative coefficients for the deleterious analytes (such as silica, alumina and phosphorus).Although conditional simulation gives the same expected grade as kriging for each block, the expected maximum tonnage of ore selectable at a target grade may differ from that obtainable from the kriged solution. We apply the linear composite selection criterion to each of 25 conditional simulations, as well as to the kriged block model. The resulting distribution of product tonnage is confirmed to have an expected tonnage that is over 20 per cent greater than that of the kriged model. The method also enables a selection probability to be computed for each block, and thus a probabilistic pit boundary distribution to be identified and used in mine planning. Proposed extensions will consider risk-based scheduling of the multiple selection solutions through minimisation of a derived æstress factorÆ and treating the mining process as an iterative system with actual or artificial ædepletionsÆ modelled in line with the mine plan, using the updated state (with new information) to re-evaluate the mine plan for subsequent periods.CITATION:Everett, J E and Grobler, F, 2013. Risk-based ore selection from conditionally simulated block models, in Proceedings Iron Ore 2013 , pp 149-156 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By J J. Robinson, B N. Noller, D M. Franks, G McIlveen, D R. Mulligan, A T. Soro

Fiji is a developing nation that relies on economic opportunities and recently experienced increased interest in mining and mineral exploration that could potentially benefit the country. In order to understand the lack of, or failure of, past rehabilitation activity, this study applied risk-based approaches to identify the significance of activities or actions applicable to rehabilitation of post-mined land in Fiji. This involved the use of qualitative, semi-quantitative and quantitative risk methodologies, which allow assessment and evaluation of mechanisms of mining administration and practices, as well as rehabilitation methods and approaches that have been applied successfully to post-mined land in other countries with similar environmental and climatic conditions and social and regulatory environments to Fiji. The semi-quantitative risk-based technique followed an earlier approach applied for mine closure by Laurence (2006) and provided a systematic way to assess and evaluate rehabilitation issues that were identified on-site by assessors, who were able to estimate through expert judgement the likelihood and consequences based on conditions, situations observed and circumstances on-site. It demonstrated that experienced professionals could reproducibly score likelihood and consequence of selected items relevant to mine site rehabilitation, despite the wide-ranging issues identified during post mined land rehabilitation. The quantitative risk-based approach was adopted as a method to determine environmental bonds for mining projects using the assessment of consequences and likelihood results from the semi-quantitative approach, then incorporating unit cost of materials or activities for local conditions required to fully rehabilitate each issue at net present value. Application to both an abandoned mine site and a newly opened mine site in Fiji showed that this approach could provide a risk-based estimate for rehabilitation cost and demonstrated potential applicable in the Fijian context.CITATION:Soro, A T, Mulligan, D R, McIlveen, G, Franks, D M, Robinson, J J and Noller, B N, ?2014. Risk-based Rehabilitation Strategies for Post-mined Land in Fiji, in Proceedings Life-of-Mine 2014 , pp 165–180 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J Joy, A Bye, G V. Kizil

This paper presents an application of the newly developed risk-cost-benefit (RCB) framework to support risk management decisions for the selection of wall monitoring technologies at an open cut mine site. The RCB framework quantitatively assessed the risk of unstable slope-induced wall failure and its impact on both loss of life and coal recovery. The RCB framework was utilised in the selection of an optimum group of risk-controls to effectively manage the risk of wall failure to ensure safety and optimal production occurred. The RCB framework incorporates mathematical modules that integrated RCB calculations and risk-control effectiveness assessments to determine the risk reduction and financial impact of the examined safety initiatives.This paper provides an overview of the five-staged RCB framework, incorporating the RCB decision support tools, RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control Effectiveness Method), and demonstrates its application to slope stability risk management at the case study site. The RCB charts are designed to display a balance between risk, cost and benefit for easy interpretation by decision makers to support the objective selection of an optimum suite of risk-controls. The RCB analysis revealed that a combination of ævisual inspections, automatic extensometers and radarÆ for fast- and slow-wall failures with structure were sufficient to reduce the probability of loss of life (PLoL) to the æModerateÆ zone as defined by the Australian Geomechanics Society (AGS, 2007) for the case study site. The new framework presented in this paper provides a method to effectively determine the suitability of risk-controls and supports industry efforts to reduce risk to as low as reasonably practicable (ALARP).CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Risk-cost-benefit analysis of early warning technologies impact for wall failure risk management in surface mines, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 55-64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

By J Harris, J Li, M Shi, P A. Kirsch, D Sprott

Australia has an enviable global reputation as a leader in health and safety outcomes in the hazardous industry of mining, in part due to an increased application of risk management regarding operational planning and mining practice. In 2010, the Australian Coal Association Research Program (ACARP) initiated a major project, RISKGATE, to build, capture and deliver a national body of knowledge to assist companies with the management of risk in coal mining. The online system contains information for tyres, collisions, fires, isolation, strata underground, ground control open cut, explosions, explosives underground, explosives open cut, manual tasks, slips/trips/falls, outbursts, coal bumps and bursts, human–machine interface, tailings dams, occupational hygiene and inrush. In 2014, RISKGATE is developing content for fitness for work (fatigue, drugs, alcohol, physical well-being, psychosocial well-being).This paper analyses underground mining fatalities in Australia and the United States since 2002 and introduces RISKGATE with a focus on the knowledge base for management of hazards in underground operations. Through capturing coal industry expert operational knowledge, RISKGATE provides a cumulative corporate memory at a time of high personnel turnover within the mining industry. This coal-based body of knowledge is a platform that can be evaluated and implemented for other mining domains and high-risk industries within the energy supply chain.CITATION:Kirsch, P A, Shi, M, Harris, J, Li, J and Sprott, D, 2014. RISKGATE and underground operations, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 11–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By P Bergin, J M. Galvin, J Harris, J Li, P Kirsch, M Shi, B Hebblewhite, B Whittaker, R Mitra, D Sprott

Controlling unwanted ground movement is critical in mining as well as many other highly hazardous environments, such as construction and tunnelling. Sharing knowledge about effective hazard management is paramount to improving health and safety and operational outcomes across industries, and some industry sectors have embraced this openness as part of the way that they do business. In 2010, the Australian Coal Association Research Program funded the RISKGATE project to build a body of knowledge for managing a broad range of hazards across mine sites, lease areas and mine infrastructure within a mine-life or product life cycle perspective (eg from exploration through to decommissioning, or design through to operation). The RISKGATE body of knowledge was assembled from Australian coal industry experts through a semi-structured bowtie analysis-based action research workshop cycle. By capturing operational knowledge from industry experts, RISKGATE serves to provide a cumulative corporate memory at a time of high personnel turnover in the coal industry.This paper presents an overview of RISKGATE topics within the geological and geotechnical domain (strata underground, ground control open cut, outburst, coal bumps and bursts, tailings dams and inrush) with a summary of individual topic structures, as well as showing the contrasts and inter-relationships between these ground management topics. The online user can access information about the causes, controls and consequences related to a priority unwanted event (ie the point at which control of energy is lost) and use this information as a prompt for the development of risk assessments, incident investigation, audits of practice/plans/procedures and for training and development.The paper concludes with a discussion of how RISKGATE can be adapted to other mining domains (eg coal outside of Australia, hard rock mining worldwide, construction, tunnelling) and the opportunity for application of this body of knowledge and the RISKGATE action research process for knowledge management in other highly hazardous environments.CITATION:Kirsch, P, Hebblewhite, B, Sprott, D, Harris, J, Li, J, Shi, M, Whittaker, B, Galvin, J M, Bergin, P, Mitra R and Williams, D, 2014. RISKGATE – shared coal mining knowledge for managing risks across ground management, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 247–254 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014