English version of a paper by Cesar & Franco Oboni, Riskope International, published on China Mining Magazine in January 2008. The paper deals with Risk and Crisis Management in the mining industry.

1. FOCUS ON RISK MANAGEMENT
Planning ahead helps reduce the impact of accidents
Cesar & Franco Oboni, Oboni Riskope International
Mining is an ancient occupation,
long recognized as being difficult
and able to cause injury and disease.
More recently, the industry has been
exposed to environmental liabilities
and catastrophic accidents. Nowadays
it can be easily said that there is no
mine in the world that can escape
public and media scrutiny. Mergers
and acquisitions in foreign countries
only contribute to further increasing
the resulting exposures, especially
when cross cultural aspects complicate
communication and understanding
of various participants’ positions.
Accidents of all kinds remain a
significant problem and range from
the trivial to multiple fatalities or
large environmental contamination.
Common causes of fatal injury include
rock fall, fires, explosions, mobile
One of the authors participated in the risk assessment of this high
equipment accidents, falls from altitude Andean mine's tailings system before it was commissioned.
height, entrapment and electrocution. Then the slopes and the access road became the objects of in
Less common but recognized causes depth studies, regularly updated by the risk assessment team.
of fatal injury include flooding of
underground workings, wet-fill release
larger risks and their resulting is the object of what is generally
from collapsed bulkheads and air
crises with the related public image called risk management. As no risks
blast from block caving failure. Finally,
damage potentially generated by can be reduced to zero, the study
these are tailings dams failures such
natural or man-made hazards, are less of how to react to residual risks
as the ones in Marcopper in the
studied and still represent a source (meaning the risks still existing after
Philippines; Omai in Guyana; Los
of uncertainty in the sustainable mitigation to acceptable levels)
Frailes in Spain; Merrispruit in South
development of mining operations. is called crisis management.
Africa; and Baya Mare in Romania.
Figure 2 depicts the share value We have studied more than 40
These represent an important
evolution of Nova Gold after the operations worldwide using a template
class of well publicized failures often
announcement of the suspension that allows owners to compare their
bringing critical consequences
of Galore Creek Mine, their operations among each other and
to their operators. They also
flagship project. It was suspended even to compare operations against a
have an impact on the value of a
because of cost escalation and wolrdwide database. This allows owners
company's shares (see figure 1).
a decline in metal prices. to make better decisions giving them a
Studies have shown that
The study of what can go wrong competitive edge on other companies.
applications of health & safety
in an existing or future operation In many accidents and near
techniques and standard operating
and what can be done to preserve its misses, investigations of the
procedures can lead to substantial
operability and future development causes of the accident lie at
declines in injury rates. However
2 CHINA MINING Journal January 2008

2. Riskope's website or EduMine).
As stressed above, there is a strong
and increasing demand by the public
to know its level of exposure to risk,
and to also know about the efforts
being undertaken by the mining
company to mitigate those risks.
Advanced mining companies have
learned to be concerned about this
“new type” of risks: they understand
that public reactions may lead to crisis
and the consequences they generate
may have even bigger costs. Some of
these unforeseen costs are boycotts,
loss of share value, and even riots.
Fig. 1 Los Frailes Tailings Dam Failure Crisis Phases seen through the operator’s
share value price evolution over seven years Products that help companies cope
with these issues include evacuation
plans, catastrophe response plans and
crisis action plans. Having these plans in
place can help reduce stress, minimize
human error and avoid telecom stations
overloading. They have been tested
in the field during full scale tests.
To conclude, we will answer the
following question: What do risk and
crisis management do for a mining
company? In a general way they
will help address the proper areas
Fig. 2 Nova Gold’s share value evolution before, during and after the of concern in a specific operation,
announcement of the suspension of the Galore Creek Mine project.
determine where to spend money on
reducing unacceptable risks, identify
tactical level. Investigators look at good idea is a large asbestos mine
what could go wrong, and plan for what
workers’ insufficient awareness or dry tailings dump environmental
to do if something does go wrong.
information, or at the strategic level rehabilitation project that was
(such as the design of the mine, or designed following these concepts. It
Franco Cesar Oboni head Riskope,
the decision making process.) won an international bid because of
an international practice on risk and
To avoid these accidents the competitive advantages brought
crisis management. Experience includes
happening again, the company in by the transparent and justifiable
consulting for major mining companies
must enhance environmental or risk design and operating choices.
and industries, coaching and authoring
awareness of the workers through Training courses can be given
of over 30 papers, co-authoring
appropriate training, or use risk to various levels of personnel
of a book, e-campus courses on
management plans when preparing through appropriate workshops
EduMine, private and university based
operating procedures and designs. or web based learning or the so
seminars, and workshops worldwide.
An example of why this is a called blended education (see
January 2008 CHINA MINING Journal 2