Amy Sexton, Senior Advisor, Sustainability East Asia LLC

1. RISK SEMINAR:
Environmental and Social Risks in
MiningMining
Amy Sexton
Sustainability East Asia
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2. Risks in Mining
• Risk identification, assessment and
management in:
– Environment
– Community
• Risk management is integral to good
business management, through continuous
improvement in decision-making
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3. Environmental Risks
• Identifying, assessing, reducing and managing
potential risks to environmental systems:
– Water
– Air– Air
– Land
• Maximising opportunities for environmental
improvements
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4. Australian Standard AS4360-1999
Risk Assessment
• Can be applied
– at all stages in the life of a project
– across a whole project or on a specific activity or
functionfunction
– across all risk categories (environmental, safety,
production, financial)
– to identify opportunities as well as minimise losses
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5. Definitions
• Consequence: an outcome of an event (may be
described qualitatively or quantitatively)
• Likelihood: qualitative description of
probability or frequency of an event occurringprobability or frequency of an event occurring
• Risk: the likelihood of an event occurring and
resulting in a specified consequence
RISK = LIKELIHOOD X CONSEQUENCE
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6. Methodology
(Figure 3.1 of
AS4360-1999)
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7. Evaluating Risks: Risk
rating
Step 4: Evaluate the risks (risk matrix):
Likelihood
Consequence
1 2 3 4 5
Level Descriptor Insignifica
nt
Minor Moderate Major Catastrophi
c
A Expected to
Low Moderate High Very High Very High
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A Expected to
occur Low Moderate High Very High Very High
B Likely to
occur Low Moderate High Very High Very High
C Possible
Low Moderate Moderate High Very High
D Unlikely to
occur Low Low Moderate Moderate High
E Very
unlikely Low Low Low Moderate High

8. Ok Tedi, PNG
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9. Community Risks
• Identifying, assessing, reducing and managing
potential risks to:
–Communities
• Neighbours• Neighbours
• Stakeholders
• Government
• Businesses
• Maximising opportunities
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10. Community Risks
• Community health
• Migration (in and out)
• Public Infrastructure
•• Cultural Heritage
• Conservation Values
• Livelihoods
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11. Risk = Likelihood x Consequence
And
Risk = Hazard x Outrage
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12. Headlines
“Toxic Time Bomb” awaits Ok Tedi
ABC Australia, 5 September 2008
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13. Risk Communication
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14. Risk Communication
• Resolving disputes requires a dedicated process
• Risk is complex and inherently uncertain
• Effective communication must be a two-way
process
• Effective communication is necessary but not• Effective communication is necessary but not
sufficient
• Trust and credibility are both essential
• Credibility is based on more than scientific and
technical competence
• Do not promise more than you can deliver
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15. Thank you
Sustainability East Asia
Telephone: +976 7011 4921
Email: mongolia@sustainability.net.au
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