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By J T. Patterson

The mining, quarrying and construction industries are often blamed for causing damage to residential-type structures when explosives are used. The claim experience for blasting vibration damage has been poor. This coverage is excluded from the Comprehensive General Liability (CGL) policy. To obtain this coverage, the policyholder must meet additional criteria and an additional premium must be paid. The risk management process offers the explosives user a technique for minimizing the risk of complaints and vibration damage claims on his insurance program and his cash flow. Case histories indicate that the vibration damage claims expense may be a lower risk than the risk of interference with production and cash flow. An annotated bibliography on risk management and defense of vibration damage claims is provided.

Jan 1, 1978

By Iain G. Bruce

The need to improve supply reliability while improving our environmental record during the past half decade of low metal prices has required the mining industry to prioritise expenditures. Quantitative Risk Assessments using third party reviewers and specialist risk management teams have assisted in identifying hazards that can both disrupt supply and impact the receiving environment. Graphical displays using risk ellipses can simplify the presentation of the results in a Probability-Consequence (PC) graph. Development of risk acceptability envelopes using readily available financial data superimposed onto the same PC space assists management to prioritise their risks and focus on risk reduction measures. Development of this system and examples of the successful implementation of the system from several recent projects are described.

May 1, 2003

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 A. Moergeli

The Swiss are building the world’s longest tunnel, the 57-Kilometer (35-mile) long Gotthard Base Tunnel. Lot 252, Tunnel Amsteg: Two Hard Rock Tunnel Boring Machines (TBM) crossed hydro-thermally decomposed granite. While the East TBM advanced slowly but steadily, the West one got stuck for five months and had to be recovered by special means and methods. Both TBMs have finished their more than 11-Kilometer (7 miles) long drives successfully. Lot 360, Tunnel Sedrun: For the first time in tunneling, roadway support machines are used through most challenging, squeezing geology. They constantly advance in full face mode for about one Tunnelmeter/24 hours.

Jan 1, 2007

By A. Moergeli

The Swiss are currently building the world’s longest tunnel, the 35-mile long Gotthard Base Tunnel. At Sedrun, for the first time in tunneling, four Roadway Support Machines will drive through most difficult ground, supporting variable diameters of up to 13 m. The machines are prepared for their first deployment. At Amsteg, two Hard Rock TBMs have successfully crossed a known fault zone by applying full circle steel arches and shotcrete immediately behind the cutter head. Comparisons between Drill& Blast and Hard Rock TBM are shown.

Jan 1, 2005

By Ralph E. Burnham, Jeff Taylor, Jonson Montgomery, J. Kelly Ratliff, Rennie Montgomery, Martin Brashear

Top priorities for all blasting companies and individual blasters are risk management, safety of company personnel and the general public, regulatory compliance, and liability protection. On a daily basis, hundreds of shots are detonated by well-trained, skilled, and experienced blasters without incident. Unfortunately, accidents inevitably occur, which is why blasting is considered an “ultra hazardous” or “inherently dangerous” activity from a legal perspective. Despite countless regulations, recent advances in technology, improved training, ongoing research, and improved communication in the industry, mistakes and the resulting incidents continue to occur during blasting operations. These result in dangerous or deadly flyrock, site security lapses, increased complaints, blast damage claims, and lawsuits, which lead to increased insurance costs and other financial tolls for blasting companies. In life, lessons learned the hard way are rarely forgotten. The same is true in blasting operations. Blasting missteps and the resulting events are often the best catalysts for improving risk management and thereby reducing accidents, liability, and financial tolls. This paper provides a summary of two incidents, one safety and the other liability related, and the errors that resulted in a fatality in one case and a multi property lawsuit in the other. The two incidents provide examples that serve as a case study for lessons learned the hard way in blasting operations and offer guidance for the considerations that blasters and blasting companies should incorporate into daily operating procedures.

Jan 1, 2018

Risk management has taken on renewed vigor since the economic crisis of the late 2000s. The resources of governments, individuals, and corporations are being stretched to a point where only the most promising projects move forward. Risk management is a crucial part of the decision making process, yet it remains a broad term that includes disciplines from engineering to finance. A collaborative effort will be necessary to ensure that the most auspicious and appropriate projects are the ones moving forward. Risk management can be quantified to an extent by comparing the likelihood of an instance with the result of consequence of the instance occurring. In this manner it is possible to assign risk factors to instances and ultimately, begin to associate monetary value to the instance. Carbon sequestration is an emerging field that has a number of unique challenges. Risk management and mitigation must be an integral part of the overall picture. This begins with the planning and design phase, continues through implementation and production, site closure, and does not cease until termination of liability. The ability of carbon sequestration projects to successfully assess, mitigate, and recover from leaks will be a decisive characteristic of overall success. The costs of mitigation and failure will need to be analyzed on a test level, but will still need to be reliable enough to extrapolate to a commercial level operation. This paper will build a risk management profile based on case studies and field tests in Tennessee and Virginia. These tests are scheduled to commence in late 2013 and consist of small-scale injection tests in unconventional storage reservoirs with an emphasis on enhanced coalbed methane (ECBM) recovery and enhanced gas recovery. The ultimate goal will be to provide a clear and concise direction to move carbon sequestration from the test phase to commercial scale. While it is necessary from a risk management perspective to analyze all risk points, the scope of this paper will focus on pre-injection risk assessment for carbon dioxide (CO2) leakage potential. Despite the differences between the two tests, CBM compared to shale among other differences, a framework for analysis and mitigation can be developed pertaining to leakage risk. The probability of each type of failure will be assessed and analyzed, and plans to mitigate or reduce these risks will be reviewed.

Aug 1, 2013

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

By John M. Rogers

Risk management has rapidly developed to become an integrated, holistic approach that now encompasses the main risk elements such as product quality control, occupational health and safety, security, environmental liability, social issues and related management information systems. Given the obvious economic benefits, a seamless blend of risk management components has become essential to allowing organisations to sustain a competitive advantage, and is also looked upon as an important attribute in organisational growth. Juxtaposed with this management philosophy is the global trend towards outsourcing, which has seen the emergence of independent, and specialist risk management organisations. The New Millennium will undoubtedly see a shift away from "in-house" risk management practices, and consequently, the selection of a suitable risk management partner - a major vehicle for improving shareholder value - will become an important strategic management decision.

Jan 1, 1999

By Moreno Pescara, Luca Soldo, Piergiorgio Grasso

"Risk management in tunneling is more important today than it was a few years ago, considering increasing demands for safety and environmental and socio-economic sustainability, which are now required by citizens, owners, lenders, and insurers. Moreover, our current risk management philosophy should not only address risk avoidance and mitigation, but should also be used as a means of value creation, benefiting the overall project. Given the strategic implications of risk management, the authors intend to present, in this paper, a comprehensive overview of references and experiences from current practice—e.g., what is missing or weak, as well as possible or necessary developments that can have a key role in implementing effective risk management, particularly for a project’s design and construction phases. Therefore, as God has set some things in broad daylight; as he has given us some certain knowledge, though limited to a few things so, in the greatest part of our concernments, he has afforded us only the twilight, as I may so say, of probability (John Locke) PREFACE Many large-scale engineering and construction projects suffer millions of dollars in cost overruns, delays in design and construction, and operability troubles once finally completed (Edward W. Merrow, 2011). The undesired effects of these problems can become disastrous for large-scale megaprojects (those that typically cost US$1 billion or more), particularly considering that these are increasingly used as the preferred delivery model for infrastructure (Bent Flyvbjerg, 2014), often in public-private partnerships (PPPs). McKinsey G.I. (2015) has estimated that bridges and tunnels average 35% in cost overruns, and roads 20%. Some of the values published by Flyvbjerg (ibidem, 2014) for projects with relevant underground elements are the highest, with cost overruns from 60% to 300%. The analysis of 32 other case histories (from 1994 to 2010) given by Hartmut, R. (2011, IMIA Annual Conference, Amsterdam) indicates an average increase of costs around $55 million, with a 20-month average delay."

Jan 1, 2016

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

By Yves Boissonnas, Marco Bettelini

"INTRODUCTION AND OBJECTIVES The operational safety of long and very long rail tunnels represents a key issue in all development stages, including design, construction, commissioning and operation. The spectrum of potential threats is very broad and challenging. These issues can only be mastered by means of a proper combination of a number of safety measures at various levels. This paper focuses on the specific safety issues and the extremely challenging conditions characterizing very long and deep tunnels. They include a significantly increased risk during operation that the incident train cannot exit the tunnel by its own means, long self-rescue and rescue distances, the presence of a number of trains, possibly mixed traffic as well as significant thermal issues. Amberg Engineering is strongly involved in the design and construction of most long and very long rail tunnels in Europe, including in particular the Gotthard Base Tunnel (GBT), Lyon-Turin Base Tunnel (LTF) and the Brenner Base Tunnel (BBT). The combined experience arising from these tunnels forms an invaluable body of expertise, which is summarized in this paper. The focus is on shared issues with practical relevant examples and project-specific solutions. Special attention will be devoted to the 57 km long Gotthard Base Tunnel, which will be operational by mid-2016 and will be the longest infrastructure tunnel worldwide. VERY LONG TUNNELS IN EUROPE Overview From the point of view of safety, tunnels in excess of about 20 km exhibit a significantly increased risk that incident trains could stop within the tunnel. This is related to the European Technical Specifications for Interoperability (TSI) on rolling stock, to be discussed in the chapter on rescue stations. This paper will specifically focus on the following longest tunnels in construction or operation, listed in Table 1."

Jan 1, 2016

By Brendan Henry

The Canada Line is a 19km long automated light rapid transit system with 16 stations in Vancouver, BC, Canada. The Concession was awarded to InTransitBC to design, build, partially finance, operate, and maintain the system for 35 years. The project must be complete by November 2009 to be ready for the 2010 Winter Olympics to be held in Vancouver and Whistler, BC. The bored tunnel section consists of 2.45 km of twin bored tunnel and 3 stations. The station work is limited to the excavations and temporary support necessary to facilitate the bored tunnel works. A joint venture between SNC-Lavalin Constructors Pacific and SELI (SSJV) has recently completed the design and construction of this section. Work for the bored tunnel commenced in November 2005 with shoring and excavation works for the tunnelling operations pit that will become Olympic Village Station and will be completed in the spring of 2008. The tunnels were driven with a 6m diameter Earth Pressure Balance Tunnel Boring Machine (EPBM) and lined with 250mm thick, 5.3m diameter precast concrete segments. Seven hundred and fifty meters of each tunnel were driven through glacial and interglacial deposits of sand, silt, and clay with granitic boulders. The paper discusses the challenges faced in negotiating these soils which contained unforeseen geological conditions. These conditions were overcome by developing a systematic approach to Risk Management that included thorough risk assessments, regular risk management meetings with the participation of two of the world?s leading EPBM experts, Professor Eisenstein and Professor Kovári, and by the ability of the construction team to effectively analyze and mitigate problems.

Jan 1, 2008

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

By Steven W. DeCou, Marcus R. Jensen, Stephen Navin

The Lake Mead Intake No. 2 is a project constructed for the Southern Nevada Water Authority which includes a 12-foot diameter lake tap and intake shaft constructed in over 225 feet of water; 1650 feet of 16x14-foot horseshoe-shaped tunnel leading to a forebay that is 165 feet long, 35 feet tall, and 30 feet wide; twenty-two 4-foot diameter steel lined well shafts extending 325 feet from the ground surface to the forebay; 3500 feet of 12-foot diameter pipeline crossing a bay in Lake Mead that has water depths of up to 80 feet; and 2700 feet of 9-footdiameter steel-pipe-lined tunnel. Major site grading for a future pumping station in the area above the forebay is also included as part of the project. The project is on the schedule’s critical path for completing the first phase of a $2 billion water supply program for the Las Vegas Valley. In this paper, the owner, the designer and the construction manager present a discussion of the risk management strategies that were used to control costs, minimize project delays, and facilitate problem resolution. The discussion includes an assessment of the effectiveness of the risk management strategies in meeting these objectives. This paper will be of interest to owners and engineers planning underground projects, especially those projects that present unique risks during the construction phase.

Jan 1, 1999

By Jaime V. Ongpin

"The author will give a capsule history of Benguet Corporation and attempt to identify its operating environment and underlying ""strategy"" until 1974, when the company's management assumed office. The company's operating environment and ""interim strategy"" from 1975 to 1980 will be described. The discussion will cover an environmental forecast and define the company's"" strategy for survival"" for the balance of this century.IntroductionIn December last year, I was asked to deliver a pa per for the management lecture series a t the Asian Institute of Management in Manila. The paper was entitled "" The 1970's: A Decade of Disaster For New Mining Projects"" . In that paper, it was my task to review the results of new mining projects in the Philippines during the previous decade. The task was not a happy one, for the results themselves were not only unhappy, but disastrous on a scale unprecedented in Philippine history. Out of a total of 17 major mining project s involving an aggregate capital investment in excess o f US $2 billion during the 1970s, only three project s have been profitable, and all the rest have either gone "" belly up"" or are teetering on the very edge of financial disaster.It is in the context of this shocking record of widespread financial dislocation in the Philippine mining industry, (which in varying degrees appears to have been paralleled in virtually every other country in the world where mining is an important sector of the economy) that I address myself tonight to the theme of this symposium. My paper is entitled ""Risk Management Strategy in Mining"" and it is sub titled ""Can Benguet Corporation Survive to Celebrate its Centennial in 2003?"". I have inserted the word ""Strategy"" and added the subtitle, because I wish to make it clear first, that my presentation to you tonight will be focused exclusively on the strategic aspect s of risk management, and second that I will limit myself to Benguet's own ""in-house"" experience and perspectives on this subject. I would caution you therefore, to consider my views within this restricted framework, and in light of the particular and sometimes peculiar circumstances within which Benguet Corporation operates."

Jan 1, 1983

By Kevin Cunningham

"Litigation resulting from neighboring structures with settlement and/or lateral movement or improper pile design and faulty soils engineering analysis, are a multi-faceted opportunity for law firms. These types of claim scenarios are an attorney’s dream, and can obliterate a Deep Foundation Contractors profit and more importantly, can be avoided with a progressive approach to risk management in design and project management.The following (4) case studies will be examined and dissected to discern certain lessons learned for risk management solutions to avoid these deep foundation related challenges in the future.1) Pipe Flotation – Soil Conditions Not Anticipated in Specifications or Contract2) Easement Encroachment – Easement Dimensions Not Recognized Until Completion of Project3) Subjacent Lateral Support – Neighboring Structure Wooden Pile Unprotected Causing Structure to Settle4) Improper Pile Placement - Construction & Design Caused Retail Store to SettleSpecific Deep Foundation project challenges involving: buoyancy calculations regarding subsurface soil characteristics, design factors taking existing subsurface sewer line easements into account, structural instability as result of excavation causing exposure/heavy rainfall to existing wooden piles supporting adjoining building and improper pile location resulting from faulty pile design will be described with risk management recommendations to avoid these challenges in the future.From the very start of construction on any project deep foundation and excavating work poses numerous engineering and technical challenges for developers, contractors and engineers. Dealing with changing or hidden conditions is one of the most difficult challenges facing any contractor or engineer on a project. Relying on incomplete or inaccurate engineering reports is another common problem. Other challenges include dealing with technical errors or oversights that are deeply embedded in the project specifications or bid process.No matter what is the origin of the problem or how it manifests, deep foundation contractors, design professionals and engineers should be ever-mindful of good risk management practices that can prevent serious disputes that can result in costly litigation."

Jan 1, 2015

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