OFR-206-84 Analysis Of Economic Impact Of Fatal/Nonfatal Accidents In Surface Coal And Metal/Nonmetal Mines

A computer based accident cost indicator model (ACIM) for estimating tangible costs of occupational injuries, illnesses, and fatalities in the U.S. mining industry is described. Studies performed to expand the scope of the ACIM to all mining sectors are presented. Validation of ACIM cost element estimation algorithms with actual costs of mining-related injuries and illnesses are presented. A study of the effect of a fatal accident on production in surface coal and metal/nonmetal mines is presented. The study is based on a sample of 15 fatalities in underground and surface mines. Evidence of significant long- term decline in postfatality production at 6 of 8 underground samples is presented. The average loss is shown to be 1.8% of annual mine production. A study of accident costs in U.S. mining from 1975 through 1981 using the ACIM is presented. The study shows that total annual costs increased from $180,000,000 in 1975 to $379,000,000 in 1981, a 15% annual increase after adjusting for inflation, with mining companies bearing 45% of the total and expected wage losses to mining families accounting for 42%. The study shows total costs of $12,400 per accident and $674,000 per fatal accident for 1981.