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By W. P. Blacutt

A financial-economic model incorporating physical, market, and policy variables is developed for mining investment in Bolivia. Additional risk criteria emanating from political instability. new mining legislation, recent environmental regulations, and a new minerals taxation system are accounted for and are integrated into the investment decision model. Results of the model indicate that geologic and market variables have the dominant effect on the investment-worth function. Among policy variables, exchange rate and taxation policies have the most significant influence. Depreciation allowance for infrastructure development has negligible weight in the investment-worth function. The business structure of the firm considering investing in the Bolivian Polymetallic Project is found to be an instrumental factor in the investment-worth outcome. Specifically, undiversified mining companies whose operations exclude zinc production as the primary source of revenue would benefit most from adoption of this project.

Jan 1, 1993

By Carlos Álvarez, Sergio Sánchez, Michael Mains, Giuseppe Gaspari

Extensive record of tunnels excavated with SEM (sequential excavation method) in swelling grounds exists in literature: global experiences include successful tunnelling both through clayey and rock masses with time dependant deformation. However, TBM (tunnel boring machine) use in swelling conditions with high water pressures (EPB, earth pressure balance, machines or slurry shields) is much less documented, considering the lower expected impact due to the limited stress relief and operations under saturated conditions. This paper summarizes a number of studies conducted as part of the risk assessment and detailed design of a large diameter TBM tunnel in variable and challenging geological conditions. The tunnel alignment is driven through mixed face conditions including swelling soils and clayey soft rocks, prone to intense time-dependent deformations. The paper also describes the approach adopted for the design of pre-cast segmental lining subject to both swelling actions and high seismic loads, due to the regional active tectonic faults. The design of this lining included a detailed parametric study performed to handle the existing uncertainties related with ground characterization, potential deconnement and complex geological congurations.

Jun 23, 2024

By F. Calizaya

A booster fan is an underground ventilation device installed in the main airstream to handle the total quantity of air circulated to one or more working districts. It is installed in a permanent stopping and equipped with airlock doors, a monitoring system and interlocking devices between the main fan and the booster fan. When adequately installed, a booster fan can be used to reduce the main fan pressure, reduce leakage and decrease the power consumption. However, an inadequate installation can increase the likelihood of mine fies and recirculation of air contaminants. This study identifies hazards associated with the operation and maintenance of booster fans. It analyzes the accompanying risks and recommends control measures to reduce those risks to acceptable levels. The ventilation network of an existing coal mine was updated to include a booster fan. The hazards associated with the operation of this fan were identified, the risks analyzed and the esponse to each failure mode established.

Mar 1, 2014

By Riley S. J

Ranger Uranium Mine is located within the Alligator Rivers Region of the Northern Territory of Australia and surrounded by the World Heritage listed Kakadu National Park (Figure 1). The mining operation is currently producing about 1500 tonnes of uranium oxide annually, as well as considerable volumes of waste rock, low grade ore and tailings. The rehabilitation of the project should ensure that the radioactive mill tailings and other contaminants remain contained for at least 200 years, as required by the existing guidelines (Commonwealth of Australia, 1987). The present uranium mining operation is regulated by the Northern Territory Department of Mines and Energy who must refer to the Environmental Requirements when considering regulatory options. These Environmental Requirements were agreed by the

Jan 1, 1994

By L. Mohammadi

Outline ?Background on the accident at the Sullivan Mine No.1 Waste Dump ?Holistic approach to understand the reason for accidents (Atmospheric) ?Specific hazards at reclamation sites ?Regular atmospheric risk assessment at reclamation sites ?Fuzzy risk assessment ?Managing risk at legacy sites

May 1, 2010

By O. D. Staman

The risk assessment project examines the likelihood of inorganic contaminants from copper dump-leaching operations to contaminate domestic water supplies. The project examines contaminant transport by modeling contaminant movement from the base of a leach pile through the unsaturated zone and into the saturated zone. The modeling effort is unique in that it models infiltration, contaminant transport in the unsaturated and saturated zone combined with geochemical modeling of the unsaturated zone. The project incorporates probability theory to reflect the uncertainty of hydrogeologic parameters.

Jan 1, 1994

By W Patton

Investment decisions in the mineral resources sector are made on the basis of an assessment of the economic potential for a mineral deposit. Given the supporting information for the location, scale, and quantity of the commodity of interest, miners and investors aim to make risk-informed decisions when considering further investment. The objective of resource classification is the synthesis of various types and quantities of geologic information used in resource model construction to assign confidence categories to the estimated mineral resources, which can then be used to support informed economic decisions. In this paper a risk-based classification scheme for iron ore mineral resources using conditional simulations is presented. The method involves categorisation of each block according to a confidence level, considering expected recoveries from a kriging model over mining production volumes. The realisations of the simulated model are used to assign risk-based confidence categories to zones of the ore deposit. One motivation for this work is to assess the sensitivity of the scheme to geologic uncertainties. Specifically, that which uncertainty in the layout of mineralising alterations and weathering overprints influence variabilities of associated rock properties and the likelihood of obtaining expected ore recoveries. It is shown these risks have material implications for a project’s economic potential. How the scheme can be extended to the grade control context and the value subsequent grade control activities is also quantified.

May 24, 2023

By P. J. Foster

A common theme running through recently introduced mining health and safety legislation in many parts of the world is risk assessment. Most recently, risk assessment legislation has been introduced across the mining industry of South Africa and the view that the introduction of risk assessment based legislation provides an ideal opportunity to improve on past health and safety performance is presented. Risk assessment techniques range from highly complex safety system techniques that are used in high technology process industries, to subjective techniques based on simple judgements that are finding use in many other industries. The objective of this paper is to shed some light on risk assessment, not by detailing the risk assessment process but by identifying the crucial elements that need to be considered if risk assessments are to be successful in changing health and safety performance. A case study is presented illustrating the introduction of risk assessment into the Ingwe Coal Corporation, one of South Africa?s largest mining houses, to indicate how the system was developed and how it is being used.

Jan 1, 1998

By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By Edward Holloway

The basis for the selection of the ultimate pit for an open-pit mining operation is generally opaque. Some form of value-based analysis will generally guide the final decision; however, the value will often gradually plateau while the ultimate pit size continues to increase. There is no established framework to guide specialists in the selection of the ultimate pit, with such decisions regularly made on a somewhat arbitrary basis. The key component that is missing from the analyses typically used to select the size of the ultimate pit is risk. Once risk is quantified within the analysis framework, the decision-mak-ing range is significantly reduced and the process for select-ing the ultimate pit becomes more consistent, replicable and defensible. The technique outlined in this paper provides an approach to including risk in the process used to select the ultimate pit.

Jun 1, 2024

By Tsuyoshi Adachi

Photovoltaic (PV) system is especially taken notice as one of important renewable energy resources, because PV has potential to provide a certain amount of energy supply as well as without greenhouse gases emission. Considering recent rapid increasing demand for PV system, more expansion of PV system is expected in the future. However, some precious metals and minor metals such as silver, indium and others are used as component materials of solar cell in PV system. Even if energy supply would become renewable, strict limitation of these metals still remain because amount of natural resources and recycling of metals has restrictions intrinsically. The aim of this study is to reveal the possibility of materials supply restrictions for Photovoltaic system quantitatively and to propose several measurements to assess supply risks for materials. Especially, silver supply potential which is used as wire line in PV system as well as PV demand forecast to estimate material use in the future are focused on. We divide underlying supply risk into 5 measurements and analyze them by time series, i.e. price volatility, resource potential, recycling ratio, production type and supply concentration are investigated. Comparing these factors of silver with other metals, the potential of silver supply for PV is presented. In addition to it, we propose another method to quantify country risk applied an insurance pricing model in finance pricing theory and combine it with the supply concentration measurement. As a result, supply risk of silver will increase gradually in the near future because of its resource constraints and supply-demand balances although silver market is sufficiency competitive one. From the country risk analysis, Peru is not only a significant supply country but also has the highest country risk. Some higher risk countries will increase the level of supply risk even if the concentration ratio of supply indicates moderate level.

Aug 1, 2013

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 Sandy Worden

Coal mining companies in Australia are managing the high-consequence risks across their operations more effectively by using an interactive online risk management system known as Riskgate Developed by the Minerals Industry Safety and Health Centre (MISHC) at the University of Queensland, Australia, Riskgate contains detailed information about 11 high-consequence risk areas (called topics in the system) for opencut and underground coal mines (Table 1). The existing topics are: fires; strata control for underground mining; ground control for opencut mining; tires; isolation; collisions; explosions and explosives; manual tasks; and trips, slips and falls. Every Riskgate topic is focused on coal industry activities (mining, processing, transport and storage). The scope includes mine sites, lease areas and mine infrastructure (mobile, fixed plant, field equipment, buildings, road and rail transport), and all aspects of the mine life cycle from design through to decommissioning. The topics uniformly recognize that a loss of control can result in injury or fatality, equipment damage, production loss, reputation loss and environmental damage. However, the priority focus for Riskgate is the safety of mine personnel.

Jul 1, 2013

By T Atkinson, A Cobb, R AJIington

Risk management is concerned with the whole spectrum of financial, geological, engineering, legal, governmental, social and occasionally ethnic issues, concerned with mining projects. The inherent risks in mining operations are well publicised, but new issues and hazards arrive on the scene and lake precedence, but the older risks still remain, while insurance cover may not he ‘full cover’ in the future. It has long been recognised that quantitative approaches to risk analysis can play a major role, but although these methods are capable of considerable theoretical precision, the lack of sound risk input data and experienced personnel limits the usefulness of theoretical analysis. It can, however, greatly assist in comparing cases, in identifying areas of risk and help in the investment decision process. Its major contribution to a mining project is that it imposes an investigative discipline that also assists in improving the quantitative approach to risk analysis and hence risk management. Risk analysis and risk management also requires sound common sense and major inputs from experienced geologists, mining, mechanical, electrical and mineral processing engineers. The Engineering Council, in 1992, issued a ten point code of professional practice entitled ‘Engineers and Risk Issues’ (The Engineering Council. 1992), covering our professional responsibilities, the law, our conduct, the need for a systematic approach to risk issues, the use of professional judgement, communications, risk management, evaluation of risk, our professional development in this field and the encouragement of public awareness of risk issues. This is a specific area of training perhaps long neglected by our industry and academic institutions (Atkinson. 1983).

Jan 5, 1996

By Andy Thompson, Frank Perrone

"As part of the Metropolitan Transportation Authority’s $10.5bn East Side Access Project in New York, 3,200 m of tunnel had to be constructed in rock, mix face and soft ground conditions beneath one of the largest passenger railroad junctions in North America, handling over 780 trains per day. The use of risk based decision making tools was essential in developing the bespoke contract framework that was adopted as well as making informed decisions once excavation commenced. This paper will outline the risk management process adopted, discuss the risks and mitigation strategies adopted and comment on the impacts of this approach on the as built Project cost and schedule. In particular, the paper will outline the unique approach used to establish the baseline against which the Contractors performance would be measured as the selection of a Slurry TBM to excavate the tunnels was considered to compromise the effective use of a Geotechnical Baseline Report. BACKGROUND AND CHALLENGES Contract CQ031, Queens bored Tunnels and Structures was awarded in September 2009 to a joint venture of Granite Northeast/Traylor Brothers/Frontier Kemper (GTF JV) for $717.6m following a negotiated procurement process. A robust approach was taken with regard to the management and payment for risks associated with the construction of these tunnels. Risk assessments were carried out during the design phase and a risk register was developed prior to procurement. During the procurement phase close attention was paid to ensuring that the allocation and pricing of known risks, together with mechanisms for managing future risks were clearly defined between the MTA and GTF JV.In comparison to the excavation work in Manhattan, which was performed in competent hard Manhattan schist, the tunnels in Queens were excavated predominantly through soft ground with a high water table and complex environmental conditions. Not only did this require the use of pressurized face TBM technology, a first in New York, but also a re-evaluation of the contractual mechanisms used to manage the hard rock excavation contracts for their appropriateness to the soft ground tunnel work."

Jan 1, 2016

By Emily Rose

The concept of risk management is applied to multiple aspects of the mining lifecycle including safety, mine design, business plan—anything that affects getting the ore to the mill for production. However, risk management is not a topic that can readily be taught in universities. Many situations require knowledge gained from experience to know how this impacts current and future operations. Recent graduates, who must develop and apply decisions based on geotechnical monitoring, likely have not developed “operational experience” and may not be aware of options and typical applications. Thorough resources that explain different monitoring systems, and when and how to implement them, are available for geotechnical professionals. Accessibility to this information can often cause information overload, leaving one unsure of where to start, without knowing where to start. This paper is intended to serve as a high-level overview of development practices, levels of risk, and risk tolerance for entry-level geotechnical and mining professionals who do not come from a geotechnical background. Summarized detail on typical monitoring practices, types of instrumentation, and how to communicate what the data indicates to key stakeholders are provided.

Feb 22, 2026

The mining industry has indeed gone global. International minerals producers are spending big money to move into countries that were off limits a few years ago. Due mostly to political reasons, these countries' huge mineral deposits - worth billions of dollars - were locked up and mining companies could only sit on the side and wonder "what if." Now much of the world is going the free market route. Once closed countries and developing nations are rewriting their mining and tax laws hoping to attract foreign investment to develop their natural resources. And big businesses - mining companies included - are lining up to get their share. But with new opportunities come new risks. While emerging nations are slowly accepting the free market concept and the privatization that goes along with it, many remain plagued with political instability and violence. Even developed nations carry their unique risks. Some of these include inadequate or contradictory legal and regulatory infrastructures, political patronage and outright corruption. So companies hoping to expand into new regions of the world must do more than examine the market. They must study the political stability and structure of a country, as well as its tax and environmental laws. And they must guarantee the safety of their employees. Control Risks Group is an international management consulting company that assists companies preparing to move into a new country. It employs about 225 people in 14 offices throughout the world. Control Risks personnel include lawyers, bankers and former law enforcement officers and intelligence people. The company held a one-day seminar in Washington, DC to update some of its clients on the state of affairs in various regions of the world. The seminar also covered extortion, corruption and product diversion. About 175 people attended the seminar. Speakers included Control Risks' operators, analysts and investigators. Here is a summary of what some of those people had to say.

Jan 1, 1998

By Wayne W. Murdy

Since 1993, Newmont has been actively growing through the development of three major foreign mining operations with a fourth under construction. The first project, Yanacocha in Peru began operating in October 1993 at a time when political and business risk in that country was considered high. In 1995, Newmont began operating the Muruntau Joint Venture in Uzbekistan, the first of its kind in the CIS. In early 1996, Newmont started operating the Minahasa mine in Indonesia. Now, in early 1997, Newmont is undertaking the construction of a $1.9 billion project in Indonesia and is completing a feasibility study with our partner for the development of a gold operation in Mexico. All of these projects have been considered "risky" by most standards, and Newmont has been very successful in all of them through risk mitigation programs including utilizing strong and successful in-country partners, concentrating on developing a strong national workforce with minimal expatriate employees, utilizing World Bank, EBRD and IFC financing and building and maintaining strong ties with host governments. This paper describes in more detail, some of the risk mitigation programs that Newmont has used to successfully grow the company through development of major foreign mining operations.

Jan 1, 1997

By Salam Moubarak, Thomas Camus

"INTRODUCTION Since the introduction, several decades ago, of the first concepts of tunnel boring machines (TBMs), the unremitting increase of mechanized and automated tasks and the reduction of manual tasks carried out by human operators have gone hand in hand with the continuous improvement of these machines. In the present state of TBMs, the replacement of worn cutting tools is a critical, tedious, and dangerous manual operation especially for earth pressure balanced (EPB) and slurry TBMs. For such pressurized TBMs, hyperbaric interventions are used. They consist in replacing the pressurized soil/mud inside the chamber with compressed air that balances the face pressure. The operators can then ""dive"" into the chamber; however, because the human body cannot naturally undergo pressure changes, they have to follow strict procedures that have been developed for subsea divers, based on decompression stops. Indeed such interventions are actually quite often performed by professional deep-sea divers. The pressurized TBMS are consequently equipped with a manlock that allows for the required compression and decompression cycles. Hyperbaric interventions increase risk to the operators and require long decompression procedures that increase the TBM idle time and reduce its efficiency. At higher pressures, over 3.5 bar (ITA Report No 10, 2011), specific equipment and special gas mixes and/or saturation techniques are recommended (Lamont, 2012). Such procedures are even more expensive and time consuming although the duration of work in the pressurized area can be very limited for health and safety reasons. Contractors are therefore increasingly interested in automating these operations to reduce the risks to human workers and improve the TBMs performance. Moreover, the demand for new, ambitious and challenging tunneling projects (very deep, high pressure boring) is ever increasing, but the supply of suitable TBMs is limited and the risk from working in the hyperbaric environments becomes increasingly unacceptable. Impact of hyperbaric interventions The UK Health & Safety Executive has analyzed the consequences of working in intermediate pressure compressed air. The retrospective study of decompression illness (DCI) indicated that at certain pressures its incidence was around 2% of all exposures. More worryingly it showed that over 20% of the exposures commonly undertaken by shift workers in tunneling (those over 1 bar pressure for 4 hours or more) resulted in DCI. It was concluded that on some contracts up to 50% of shift production workers experienced DCI at some time during the contract, a situation which was considered to be wholly unacceptable (Lamont, 2006)."

Jan 1, 2016

By Samuel Frimpong

Green house gases have become a major concern within the international community over the last two decades due to their potential link to global warming. Carbon dioxide (CO2) is the principal greenhouse gas. In the Kyoto Agreement, Canada has committed to reduce emissions by 6 % below 1990 levels by 2012. This presents a serious economic challenge to Canada and Alberta. Over the next decade, oil sands production expansion, population and industry growth and energy demand will increase CO2 emissions. Current and future CO2 emissions and their economic implications in Alberta will be critical in formulating a comprehensive and balanced policy for dealing with concerns in this area. Disposal of carbon dioxide (CO2) in land aquifers is a potentially viable option for Alberta in dealing with long-term CO2 emissions. Studies have confirmed the existence of appropriate aquifers in the Alberta Basin for CO2 storage over a long geological period. Carbon dioxide is an ideal candidate for aquifer disposal because of its high density and solubility in water at relatively high pressures. In this study, the authors develop a computer simulation model of a scaled aquifer disposal system. The scaled model consists of an injector well, aquifer environment with dominant Ca++ and Mg++ cations. Liquefied CO2 is injected at an appropriate pressure and concentration through an injector well model. The injected CO2 migrates from the point of contact between the injector well and the aquifer domain to the main regime of the latter. The rate of migration is a function of porosity, permeability, cations, aquifer fluid flow regime and CO2 injected pressure. These models are validated using flue gas data from the 546 MW Wabamum Power Plant in Alberta. The total energy requirements for aquifer CO2 disposal system are distributed between a minimum of 105 MW and a maximum of 172 MW, with a mean of 132 MW and a coefficient of variation of 10%. The results show that there is significant variability in all the energy requirements for the CO2 disposal system. The total energy requirements for the disposal system as a fraction of the total power generated by the Wabamum plant of 546 MW could be between 0.19 and 0.32. This is a very significant energy requirement and thorough analysis must be carried out to reduce this variability and energy requirements.

May 1, 2001