Mine Risk Management for the Unexpected - Apache Explosion

Australia had been enjoying a market boom led by the mining sector and West Australian mines were leading the way to satisfy the massive demand for our natural resources, especially from China. However, the Apache gas explosion on Varanus Island, 97 km off the west coast, has clearly demonstrated how the unexpected can suddenly impact on profitability and investor confidence for the mining industry. Risk management with contingency planning can provide the most cost-effective solution to help ensure mining projects are successful. For this discussion we will focus primarily on contingency planning, CP for mining projects à and how to plan for the unexpected. The Apache gas explosion will be our example æUnexpected EventÆ. Insurance may provide financial compensation but it will not protect your reputation as a reliable supplier or prevent damage to investor confidence and future mine projects. However, contingency planning can provide real protection for mining projects à to survive the unexpected.