Mining is a long-term and substantial investment, and turning a mine into a profitable business is a challenging, ongoing project. To be successful, mining operations need strategic and operational answers. Many experts in the industry claim that mining safety and productivity are connected and influence each other. So, in this whitepaper, we explore the question ‘How can we achieve mining targets in a safe, timely, and cost-effective manner?’ by looking at how risk management can be applied to the mining industry. We hope that by doing this, we can help mining operations reach their full potential.

RISK MANAGEMENT IN MINING

The mining industry has always been risky, with worker safety concerns representing only a portion of the challenges. Increasingly strict regulations, reliance on technology, inconsistent demand for raw materials and high commodity prices are matters of high importance for a mining company. Fortunately, most mining corporations can offset this with effective risk management programs.

A risk management program allows mining companies to ensure the success of their operations. The key lies in understanding all the risks before committing to any specific project. For example, one of the leading concerns is a skills shortage. A significant portion of miners are retiring, and there isn’t an influx of talented workers to substitute them, especially in remote regions. This can lead to project delays, higher labour costs and other production impacts such as reduced risk awareness.

Another key risk is ‘resource nationalism’. Countries are starting to acknowledge the value of the raw materials that originate from their land and, as such, are beginning to set higher taxes on foreign mining companies. This can increase the cost of operations significantly.

However, many industry executives are already ahead in effectively managing risks. They understand that significant gains often come with considerable risks, and well-designed programs enable them to pursue those opportunities safely. By understanding the risks involved in the mining business, companies can put themselves in a better position to succeed.

MINE RISK MANAGEMENT: SAFETY 

Mining is risky, but there are ways to mitigate and keep your workers safe. The most recommended approach is to take a 1-2-3 risk management approach, with the goal of eliminating hazards entirely whenever possible. If that’s not possible, substituting a safer hazard or implementing administrative controls to minimise exposure to a threat can help.

Following this approach, you can establish an efficient safety protocol that eliminates or minimises risks at all three stages. This might include close monitoring of hazardous areas, reporting the safe positions of workers at all times, and providing personal tags that indicate the current position and route to safety in an emergency:

  • Level 1 – Avoiding hazards at all: Close off areas and control site access, using, for example, electronic tags that act as keys to mines in general, but also to certain areas (e.g., explosives’ storage)
  • Level 2 – Safeguarding against hazards: Reporting the safe zone position of every worker underground or above ground in case of a scheduled blast.
  • Level 3 – Warning of hazards: Personal tags indicate the current positions and the route to safety in an emergency (“Miner Tracking“).

Taking these precautions allows you to keep your mine running smoothly and safely. For more, please download our latest whitepaper “Mine Risk Management“.