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Risk Management Strategies for a Mining Company

   

Added on  2019-11-19

21 Pages3792 Words165 Views
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1RISKMANAGEMENTPLAN(insertnameof Business)ThisplanisbaseduponAS/NZS4360–RiskManagement.Page 1 of 21
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Contents PageTable of Contents1.0Introduction and Context...................................................................................................3Busindess Name and Description...............................................................................................31.1 BackgroundScope.............................................................................................................3Background................................................................................................................................3DetailActivitiesof the Business.................................................................................................41.2OrganisationalDetails ( Company , Management Structure and Staffing......................52.0Definitions..........................................................................................................................6Risk.............................................................................................................................................6RiskAssessment.........................................................................................................................6RiskManagement......................................................................................................................7RiskReduction...........................................................................................................................7RiskTreatment...........................................................................................................................7RiskTransfer..............................................................................................................................7RiskAcceptance.........................................................................................................................73.0Stakeholders in Risk Management Plan.............................................................................8RISKS..............................................................................................................................................84.0Risk Identification...............................................................................................................85.0Assessing Potential Risk...................................................................................................10Page 2 of 21
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Table1:ConsequenceMatrix...........................................................................................10Table 2: Likelihood Matrix........................................................................................................11Table 3: Level of Risk................................................................................................................12Table 4 : Risk Register................................................................................................................9References:..................................................................................................................................16Page 3 of 21
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1.0Introduction and ContextBusindess Name and DescriptionFortescue Metal Groups Limited is one of Australia’s iron mining companies. The company is listed on theAustralian Securities Exchange and is financially very powerful(Fmgl.com.au. (2017).The context is developed to run a risk mnagament programme in a real life situation with Fotescue as itsbackground.(Asanexample...thecontextwithinwhichthisplanhasbeendevelopedis todevelopand run a successful ( Buisnbess ) ,ensuringatthesametimethe patrons,thepropertyand environmentareprotectedfromdamageandthebusinessprovidesapositive contributionto thecommunity.1.1 BackgroundScope(An overview of the business should be provided here...which creates an imageinthereadersmindandsetsthescenefortherestofthedocument. Thefollowingheadingsshouldbeusedasaguidetodescribeyourevent)BackgroundRisk is an inherent part of mining activities carried out by the mining companies likeFortescue. Fortescue is an Australian iron ore company, which has its headquarters in EastPerth with its main mining projects at Chichester Hub, Cloudbreak, Christmas Creek, SolomonCreek and BC Iron. Fortesue while carrying on mining activities comes under the influence ofseveral external factors like weather changes and landslides. The company often comes underthe government authorities due to accidents in its mines, which are responsible for injuriesand deaths(Li et al. 2014). Page 4 of 21
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DetailActivitiesof the BusinessFortescue is a mining company which engages in large scale iron mining in fivelocations Christmas Creek, Solomon Creek, Chichester Hub, Cloudbreak and BC Iron. Thecompnay is one of the largest iron mining companies in Australia and the world.Environment:Whatare thelocation/ and the layout of the ptremises?Fortescue carries out mining in Christmas Creek, which is located in Western Australia in theChichester Range. The Cloud Break Mine is also situated in the same region. The two ironmines have facilities of onsite processing of iron ore once mined. The area is also providedwith railway services owned by Forterscue, which allow the metallic commodities loadedupon ships. As far as the social environment is concerned, the creeks are holy places to thelocal people. The political environment of the area is disturbed by struggle over Land rights.Solomon Creek is the third mining facility owned by Fortescue at the mouth of theSusquehanna River and the terrain is experiencing formation of rocks. The mining activities ofFortescue in these creeks are impacted by acid drainage from the acid mines. The otherminerals present in the creek are manganese and aluminum.Activitiesrequiringpermits? (ABLIS Web Site at https://ablis.business.gov.au/pages/home.aspxFortescue is involved in mining activities which require usage of explosives, blasting rocks andother hazardous methods. Mining of iron ore results in use of surface water and pollution.Thus, mining activities require permits from government bodies like the Australian BusinessLicense and Information Services(Ablis.business.gov.au. 2017). The Environment Protectionand Biodiversity Conservation Act 1999 also requires all the activities like mining to obtainapproval from the ministry of environment, Government of Australia(Business.gov.au. 2017).Not acquiring permits for works can attract legal and financial actions against companiesfrom the government’s side.Page 5 of 21
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1.2OrganisationalDetails ( Company , Management Structure and StaffingFortescue Metal Group Limited is a public limited company listed on the Australian SecuritiesExchange. The organisational chart of the company shows that it is led by the chief ExecutiveOfficer, chairman of the board, lead director and the other directors. the operationsdepartment, sales and marketing department, external relationship, corporate services andlaw, business development, finance and secretary, corporate affairs and secretary and theCFO, all report to the CEO.As far staffing is concerned Fortescue employs both on role and outsource employees.Fortescue employs around twenty five thousand employees of various capacities likemechanics, engineers, labourers and miners.2.0DefinitionsRiskRisk refers to future uncertain or unexpected situation which may result in loss of capital, human resource ormaterial. Risks are usually caused by external environment factors and the companies normally have very littleor no control over the risk causing factors. Fortescue is involved in iron ore mining and requires using ofhazardous methods like blasting to get iron ore. This exposes the people at the sites around the mine tovarious risks, which have resulted in accidents, deaths and loss of productivity(Pandey, Agrawal and Singh2016).Page 6 of 21
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