Mining firm shores up risk management

21 July 2011

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21 July 2011 | Adam Leach

A diamond mining company in Botswana is strengthening its risk management processes following disruptions to its steel supplies.

Lucara Diamond Corp’s AK6 mine, which is currently under construction, was affected by interruptions to its steel supplies caused by industrial action in South Africa.

William Lamb, president and CEO, and Tony George, VP mine development at the Botswana operation, told SM that risks for the construction period have been identified and potential mitigation measures put in place. For steel delivery, alternative suppliers have been considered and decisions made in the context of the company’s risk appetite, as well as other considerations. Lucara is assessing the impact of the disruption and will issue an update once things are clear.

“Our engineering, procurement and construction management partners have been working closely with the suppliers, and now that the strike is over they are reviewing and updating the project schedule,” said Lamb. “On-site tasks are being re-prioritised to utilise the labour available and to improve transition between contractors.”

He said the company will use experiences garnered from the disruptions to boost its risk management process for when the mine is opened. It is scheduled to be finished by the end of this year.

“As we are not an operating entity [the mine is still being constructed], the management of the effects of industrial action will form part of the ongoing risk management processes that will be adopted when the AK6 mine is in operation.”

Last month, the mine was confirmed to be on schedule finish by the end of 2011, with procurement 81 per cent complete.

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