Protection Risk Management Copper and Uranium-Mining Scheme at the Olympic Dam - Research Paper Example

Name: Institution: Instructor: Subject: Date: RISK MANAGEMENT IN ENGINEERING Contents 1. Executive Summary The content of this report demonstrates the plan of risk management for the extension of copper and uranium mining project at the Olympic dam in Australia. The formulation of the risk management plan is considers AS/NZS ISO 31000:2009. Further, the report includes a clear context of the boundaries of the mining project extension with regard to the accepted standards. It presents the consideration of the available alternatives for the management of risks in the course of the project. The preparation of the risk management plan in this case employs the use of tolerability criteria as well as other appropriate techniques useful in evaluation. The mining operations in Australia usually deal with both external and internal influences and factors that present several uncertainties. The uncertainties involve when, weather, and the manner in which they attain or exceed their aims. The outcomes of these uncertainties in relation to the aims of the project involve the presence of foreseen risks (Cheremisin and Paul, 107). Mining projects and operations engage in the process of managing risks through anticipation, understanding of the risks involved. The steps that follow include the decisions as to whether such understandings require modification. The management team charged with the responsibility of preparing a risk management plan engages all the relevant stakeholders through appropriate communications and consultations. This takes place with the aim of reviewing the control of risk modification I the mining projects and operations. The AS/NZS ISO 31000:2009 requirement standard is a description of logical and systematic details as far as risk management is concerned. These standards depend upon the establishment of some of the principles that are important in the establishment of risk management principles (Tweeddale, 164). 2. Introduction 2.1 Project Background The copper and uranium mining project at the Olympic Dam in Australia takes place close to the Opal Mining Centre about 560 Km north of Adelaide. The project that is also close to Andamooka takes place the arid area of Australia. This particular area receives about 160 mm of rainfall in a year. The extensive deposits of the minerals are below the ground at about 360 meters below the ground level. This particular mining project in Australia happens to be the largest in the world with regard to uranium ore body. The discovery of these deposits happened in 1975 by a western-based mining corporation whose initial objective was to search for copper within the sedimentary rocks (Uranium, 77). Following the consideration of both geographical and physical data, the creation of Olympic Dam took place. This later led to the confirmation of close to 3000 million tonnes of ores containing both uranium and copper. Around mid-1990, the Olympic Dam Corporation launched a program that would increase the productivity per year by 100% to 3700 tonnes of uranium and 200,000 tonnes of copper. The acceleration of this particular expansion program resulted in increased capacity. This corporation was then taken over by BHP Billiton, but before the taking over, the Olympic Dam Corporation showed commitments to the enlargement of Olympic Dam size. As an underground mine, the Olympic Dam engages in the mining of about 10 million tonnes of ore every year (Frame, 143). 2.2 Project Scope The scope of the Olympic Dam mining project extension involves the assessment of all the existing potentials that would aid in increasing the size of the area covered by the dam in order to increase productivity. Further, this comprises the categorisation of resources of the ore body with the aim of demonstrating and preserving the viability of the expanded mining operation. The cost of capitals involved is estimated at A$6 billion. The other thing that formed part of the scope for this particular project is the study that concerns the viability of drilling activities. These activities are the ones taking place at the southern area of deposits and the assessment of the options in mining. The drilling extension options include the possibility of obtaining an extended open pit that is has the dimensions of 3km wide. The creation of this particular ore pit has the potential to double the productivity of the mining activities at the Olympic Dam (Tweeddale, 164). 2.3 Project purpose This extension project is purposely to boost production and sales through tapping into the existing potential resources that are not yet exploited. The extension suggestions envisage a wide-open ore pit. The other purpose of the project is also to cope with the previous damage to the dam. These include the damage of the mining system that is occupied at the Olympic dam, which led to a significant reduction in the productivity. The extension intends to make up for the lost mining production in the course of the previous damages. The other damage that befell the plant is the fire that broke out in 2001 at the solvent extraction section and which, also adversely affected the productivity of the plant. The recovery of uranium remains at between 60% and 70% since close to half of uranium found in the terms of brannerite. This is therefore the other plant improvement focus. 3. Risk management 3.1 Purpose of Risk management plan The expression of risk in most cases happens with regard to the consideration of the outcome of activities and events that are that influence the probability of the occurrence of the risks. The formulation of a risk management plan is a very significant process in any project. This is because the process plays a very important role in the reduction of potential risks. An appropriate risk management plan comprises sections such as project description, project evaluation and analysis as well as recommendation among others. The formulation of this particular risk management plan is on the basis of health, safety and occupational aspects associated with the project that extends the capacity of the mining operations. It also looks into the engineering and other technical aspects of the project that could pose potential risks(Taylor, Craig and Erik, 189). 3.2 Technique and approach used risk management The preparation of this particular risk management plan employs the use of approach that follow the Australian Standards AS/NZS ISO 31000:2009. In this technique, the application of risk management takes place across all the activities involved in a given project. This includes various levels as well as functions whose specific performances are in relation to the execution of the project. There has been the development and improvement of the risk management practice within various sectors and at different levels with the aim of addressing a diversity of needs and requirements. The adoption of consistency within an appropriate framework assists in the coherent, effective and efficient management of risks across the project. The generic technique whose description comes out as standard offers guidelines and principles for use in the systematic management of risks in credible and transparent manner. This happens within the relevant context and scope. The relationship that exists between the risk management principles and the framework of occurrence is described as illustrated in the figure below. Figure 1 – Risk management process 4 Consultations and Communication 4.1 Stakeholders The stakeholders in this particular case involving the extension of the Olympic Dam mining site in Australia comprises the organizations and people with the active involvement in Olympic Dam extension project. The people and organisations involved as stakeholders in this particular project are expected to have been affected either positive or negatively by the project. In this case, of the extension of uranium mining project, stakeholders fall into categories, which include external stakeholders as well as internal stakeholders. The stakeholders have to be involved in all mater pertaining to the business of the project. The necessary consultation and communications are important Australia's Uranium Mines aspects of engaging both the internal and external stakeholders (Alexander, 143). This is because in this particular project, the stakeholders are the ones whose views are significant when it comes to making impotent considerations and decisions that affect them in one way or another. The analysis of all the stakeholders involved in this project as part of the preparation of the risk management plan for the extension of the uranium and copper mining plan. The advancements in technology, which involve the analysis and evaluation of, both key and relevant stakeholders allows for ease in mapping their tasks, views and responsibility. The following table is an illustration of the stakeholders involved in the extension of the uranium and copper mining project at the Olympic Mining plant in Australia. Internal Stakeholders Responsibility The Olympic Dam Mining Corporation Have the responsibility to oversee the entire project including the budget and other requirements BHP Billiton Olympic Dam Corporation Responsible for delivering of all the equipment and devices to be used in the actual extension project and to ensure that all are in proper functioning condition. They are also issue instructions on the equipment installation and operation procedures. The government of Australia Have the responsibility of large scale development planning which include the support of the mining extension project through funding Queensland Engineering solution Offer structural, mechanical, electrical and other engineering services in the course of carrying out the project. External stakeholders Influence Local resident Their residential areas are exposed to the risks that may result from the mining extension project External consultant Advises on the requirements to be enforced before and during the installation of the mining extension project Australian Environmental Protection Authorities Have particular interest in the safety of the environment that surrounds the site of mining extension project Community and traditional land owners Part of their land is used in carrying out the project Table 1. Table of stakeholders 4.2 Stakeholder engagement The management committee with the responsibility of preparing the risk management plan undertakes a program that focuses on all the engagement relevant stakeholders. This involves the submissions sought from a wide range of industries, organizations, groups and individuals who are affected in one way or another by the extension at the uranium and copper mining plant. The submissions from the above stakeholders are received and reviewed by a consultant who is independent in his/her functions and activities. The main findings are harmonised with the report from the committee of representatives (Taylor, Craig and Erik, 158). The committee of representatives has to travel to the proposed extension site for the Olympic mining plant. Some other stakeholders to be engaged include the Australian government, other mining companies with septic interest in the mining of uranium and copper at the extended site of the plant. 4.3 Approach in consolation and communication The extension of the uranium and copper mining plant at the Olympic Dam in Australia is a very significant project both to the government as well as to the local people. Therefore, appropriate approaches in consolation and communication should be employed in engaging the local residents, the government as well as other key stakeholders involved. This would involve holding meetings with the relevant stakeholders regularly to discuss and agree on contentious issues. The meeting and communication patterns involving the key stakeholders should be periodic and organised in a manner that is understandable and helpful to ach party involved. It is also important for each stakeholder to be conversant with the process and activities involved in the mining extension project (Cheremisin and Paul, 143). In the event of emergency considerations, the internal and key stakeholders need to receive information immediately and if possible, emergency meetings can be organised to communicate or address the issues at hand. However, for the external stakeholders, they should be provided with the information that matters most to them such as the project progress and achievements. The external stakeholders such as the Environmental Authorities are served with all the necessary compliance documentations regarding the environmental safety regulation. This is because the extension of the uranium and copper mining plant at the Olympic Dam has got serious environmental implications. 5.0 Risk Management 5.1 The context of risk management process The context of risk management process with regard to the standard AS/NZS ISO 3100:2009 suggest that establishment of a risk management process for a given project has to offer an articulation of its goals and objectives. Further, there needs to be a provision for the definition of both internal and external parameters considered in the process of risk management. The scope and a clear criterion for the tolerability of risk employed are also important aspects of the risk management context (Frame, 105). 5.2 Risk Assessment The risk assessment of the extension of the uranium and copper mining plant at the Olympic Dam project in accordance with AS/NZS ISO 31000:2009 identified some fundamental requirements. This included the fact that process of risk assessment generally identifies risks before carrying out analysis and evaluation. There are four techniques needed in this particular risk assessment plan. The techniques include a detailed description of the activities and operations of the mining extension project at Olympic Dam site. Further, there is the consideration of risk evaluation and analysis based on FMEA (Failure Mode and Effects Analysis). The other techniques are operational based on international standard requirements AS/NZS ISO 31000:2009. Previous assessments and risk analysis processes at the uranium and copper mining sites of the Olympic Dam have indicated that the presence of both environmental safety risk as well as technical risks (Cameron, 223). 5.3 Risks description and impact Description Impact Nature of risks Environmental pollution May lead to a non-conducive environment for humans and plant as well as other living organisms Environmental risk Construction safety The nature of the mining activities may compromise on the safety of workers Technical risk Heath safety This may bring about health complications to both the workers as well as these residing in surrounding areas Health risk Mining equipment installation The nature of the mining equipment installation may compromise on the safety of workers Technical risk Mining waste The disposing of solid, liquid as well as gaseous waste materials from the mining process may have negative impacts on the environment Environmental risk Construction budget This particular mining extension project needs a large capital. Otherwise, the project may take a very long time duration or may fail to complete Financial risk Chemical leakage The surrounding sources of water for local usage may absorb toxic mining chemicals and products chemicals from the mining operations. Environmental risk Interferenceto sea animal Behaviour of the animals in the surrounding sea may be influenced by mining operations and activities. Environmental risk Construction waste Construction waste during the installation of the mining extension may pollute the environment. Technical risk Table 2. Table of risk identification 5.4 Techniques of Risk Assessment consideration alternatives Several techniques of the risk assessment process could be employed in dealing with the risks associated with the uranium mining extension project at the Olympic Dam. These include the Failure Mode and Effects Analysis (FMEA), the Fault Tree Analysis, the risk register as well as the risk matrix. All the above risk assessment and management techniques are in accordance with AS/NZS ISO 31000:200. The technique employed in risk assessment in this particular project of uranium mining extension is the use of Fault Tree Analysis that is aimed at finding out the kind or risks that are very significant to the project (Alexander, 172). Further, Failure Mode and Effects Analysis (FMEA) technique of risk assessment is used for further evaluation, analysis and treatment all technical and environmental risks. 5.4.1 Fault tree analysis This particular risk analysis technique begins with considering the risks involved with regard to specific failure event of the system. These system failure events are also known as top event in this Fault tree analysis technique. Just as the cause chain, the technique of fault tree analysis has the ability to offer an ideal criterion regarding the manner in which events of risk result in failure of the project (Cameron, 223). Figure 1. Fault Tree Analysis 5.4.2 Failure Mode and Effects Analysis (FMEA) Failure Mode and Effects Analysis (FMEA) is used in this particular project owing to its reliable design assurance approach usable in the identification and minimization of the effects of probable challenges in a project or process design. The FMEA analysis is taken into consideration with regard to three distinct parameters. These include detectability, severity and probability. The extent and nature of each parameter would be indicated in numerical ranking from the smallest to the largest (Alexander, 103). 6.0 Conclusion In conclusion, the extension of copper and uranium mining project at the Olympic dam in Australia is full of identifiable challenges. This is owing to the risks involved but at the same tie the benefits that are associated with the installation of the project. There is are also the issues that are concerned with handling and dealing with the stakeholders which proves to be very sensitive and requires special consideration. The other one is the identified large financial budget that also poses a risk of non-completion of the project or the delays. This risk management plan attempts as much as possible to cover and address all the possible potential risks that are associated with the project. The report therefore recommends for the continuation of the extension of copper and uranium-mining project at the Olympic dam. However, this should only proceed after proper and adequate consideration of all the risk involved including the availability of the financial funding, which is seemingly large. References Alexander, David E. Principles of Emergency Planning and Management. Oxford, [Angleterre: Oxford University Press, 2002. Cameron, I T. Process Systems Risk Management. San Diego, CA: Elsevier, 2005. Cheremisinoff, Nicholas P, and Paul N. Haber. Hazardous Materials and Waste Management: A Guide for the Professional Hazards Manager. Burlington: Elsevier Science, 1995. Frame, J D. Managing Risk in Organizations: A Guide for Managers. San Francisco: Jossey Bass, 2003. Publishing, OECD, and Nuclear E. Agency. Uranium 2009: Resources, Production and Demand. Paris: Organisation for Economic Co-operation and Development, 2010. Taylor, Craig E, and Erik Vanmarcke. Infrastructure Risk Management Processes: Natural, Accidental, and Deliberate Hazards. Reston, VA: American Society of Civil Engineers, 2006. Tweeddale, Mark. Managing Risk and Reliability of Process Plants. Boston: Gulf Professional Pub, 2003. Uranium 2009: Resources, Production and Demand : a Joint Report. Paris: OECD, 2010. Print. Wheeler, Evan. Security Risk Management: Building an Information Security Risk Management Program from the Ground Up. Waltham, MA: Syngress, 2011. Read More