Failure of Samarco Tailings Storage Facility: A Critical Analysis

Running Head: Report
Executive summary
The report discussed the various contributory aspects for the failure of a major asset and how
the asset lifecycle needs to be designed and monitored to reduce the chances of such incidents
taking place in future by analysing the case of the Samarco Tailings Storage Facility (TSF)
failure of 2015. The critical analysis of this case is conducted from the strategic asset
management perspective. A report structure is followed for presenting the information
beginning with the introduction of the topic, an outline of the case of Samarco TSF failure,
the explanation and justification of the research methodology followed for presenting the
report, critical analysis of the Samarco TSF failure of 2015 and the strategic asset
management plan. The asset management plan helps in bringing about transparency in the
decision-making process related to the assets and maximizes the performance resulting in
optimisation in resource allocation and consumption. The report presents a detailed plan for
strategic asset management of a tailings storage facility for the mining organisations. This
plan is prepared in the wake of the Samarco TSF failure of 2015 that resulted in 19 fatalities
and submerged the entire village of Bento Rodrigues.
1

Running Head: Report
Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Case outline................................................................................................................................4
Research methodology...............................................................................................................6
Critical analysis..........................................................................................................................7
Strategic asset management plan in an engineering context......................................................8
Levels of service.....................................................................................................................9
Future demand........................................................................................................................9
Risk management.................................................................................................................10
Life cycle management plan.................................................................................................10
Financial projections............................................................................................................11
Asset management practices and improvements..................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
2

Running Head: Report
Introduction
This report presents the case analysis of the Samarco Tailings Storage Facility (TSF) failure
of 2015 by conducting a critical analysis from the strategic asset management perspective.
The failure in any tailings storage facility can have disastrous consequences not just for the
mining organisation but also on the environment and the nearby communities. Disasters are
associated with very high financial and reputational costs for the companies. Tailings are the
waste accumulated as a result of mining operations which is stored in the form of a salary
with the help of masonry dams. These dams are also known as a tailing storage facility (TSF).
In the year 2015, the failure of the TSF at Samarco mine in Minas Gerais is considered to be
one of the worst disasters in the history of Brazil. There were 19 fatalities reported because of
the incident and owners BHP Billiton Brasil and Vale S.A. recognized their mistakes and
agreed for a US$ 2.4 billion provision for fulfilling all their potential obligations according to
the agreement. The owners also faced various legal and financial repercussions (Anthony &
Hastings, 2018). This report carried out a critical analysis of the case of the failure of
Samarco TSF that took place in the year 2015 by focusing on the strategic asset management
from the engineering context. This is followed by presenting an appropriate plan for strategic
asset management of a TSF by covering the entire asset lifecycle of this facility. A report
structure is followed for presenting the information beginning with the introduction of the
topic, an outline of the case of Samarco TSF failure, the explanation and justification of the
research methodology followed for presenting the report, critical analysis of the Samarco
TSF failure of 2015 and the strategic asset management plan (Wei, Yin, Wang, & Wan,
2013).
3