:AACE CERTIFICATION 2009-2010:

Definition of Technical Risk Matrix Used for Mine Development Project

The revised the technical score risk matrix shows that the most of the risks distribute at moderate to high risk level as result of the uncertainty risk of changed on mine plan will affect the high score of risk probability. As the risk score matrix result, risk management plan will be applied in which risk has range between moderate to high risk level. The risk management plan shall accommodate special attention and close government monitoring can probably overcome the difficulties. Otherwise, low risk will be required an normal effort only. As the level of categorized risks have been defined and screened in which risks require to have high visibility, the risk management continue to develop the mitigate impact plan to eliminate the risk which is considered threat response strategy such avoid, transfer, mitigation or accept. As unexpected geological condition associated with changed on mining plan result uncertainty of the mine development project in the mine active area, which cause the uncertainty of risk will be kept to be existed in the project. However, the mitigation plan could address to eliminate the probability of risk by developing preventive plan and minimize the exposure of risk (severity). For that purpose, I develop customized Risk Template to summarize identification of the risk, outline of steps and considerations that have been found effective to prevent, anticipate or minimize the risk.

The most of mitigation plan are defined as preventive action plan to reduce the probability of risk such developing better planning control, optimize mine planning, quality control plan, effective work methodology, geotechnical assessment and traffic management plan. Detail topography survey is required to provide data more accurate to eliminate the severity risk level of volume material more than estimated. As the highest risk is potentially accident on fatality using local contractor small fleet surround PT Inco heavy equipments in the active mine pit area, traffic management will be inadequate to mitigate the risk become an acceptance risk. Therefore some options are defined to seek a possibility on using heavy equipments to construct the road in manner that the risk is mitigate into acceptance risk , i.e. :

• Contract out to national contractor. This option is unlikely due to it will be costly to mobilize heavy equipments from out site just for 6 months duration of contract. Also it will be raised social issues as the work is not given to the local contractor who has experience and capability in similar work on site.
• Direct award to the local contractor who has heavy equipment on site as there is a local contractor have own heavy equipments on site. This options will not provide competitive bids and potentially get expensive bidding by single contractor as well as raise social issue.
• Contract out to local contractor for activities have low risk such loading, dozing, compacting, base construction and allocate PT Inco heavy equipments for the hauling activities (dump trucks) as this only activity generate high score risk of fatality. Otherwise, there is estimated 75,000 BCM ore with stripping ratio overburden : ore = 3 : 1 where is located in the road section therefore allocate PT Inco heavy equipments for 3- 4 months duration to construct the road shall not affect on significant lost of mine production. I think this is preference option.

# posted by Andy @ 11/27/2009 08:46:00 PM