Page 6 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

Mining is required to extract minerals that are not Example: Hazard - Working on heavy machinery, using
grown through agricultural methods, or feasible to chemicals, Poor work environment etc.
create it artificially in a laboratory or factory.
Risk - Increased stress level, injury or burns etc.

What is Management?
It is the task that involves directing, controlling,
planning, organizing an organization or one of the
units. It is the technique where the goal is reached by
working with and through people with the resources
of the organization. It also involves effective utilisation
of manpower and financial resources.

Who are insured?
Insurance in the mining sector is a specialised form of
insurance. Insurance are generally plans for the
Figure 1 - Source: Corporate Finance Institute. individual and the company who when faced with
adversity can get some recovery.
Before we move ahead with the actual subject matter,
we need to know few terms related to the industry: Few of the insurance cover can be as follows:
Y Ore: Rock which contains metal and is economic
Y Emergency evacuation
to mine.
Y Disability Income Plans
Y Grade: Amount of metal contained per unit ore.
Y Accident Insurance
Y Recovery: Amount of metal that can be recovered
Y Travel Insurance
from the ore after the process of extraction.
Y Medical Plans
Y Production: Metal that is produced and is
calculate per year. Y Group plans etc.
Y Cash Costs: Amount that is required to operate
It is very necessary to insure all the stakeholders
mines, mills, labour, energy, consumables. It is involved knowing the risks involved in such a high risk
calculated in cost per ton of material.
occupation. Even Insurance companies are very keen
to give insurance coverage to the sector which is a
What is Risk? major contributor to the economy. A slight change in
It is any uncontrolled loss resulting from some foreseen this sector will have impact on many ancillary
and unforeseen events due to given action or inaction. industries leading to slowdown in the economy of the
It can be in the form of Physical, Emotional, Social or nation. Hence, it becomes very important to mitigate
Financial. the risks through proper planning and management
with the help of experts.
Are Risk and Hazard Same?
Lot of time where we are considering potentially Which regions are important?
difficult situations, we use the terms 'Hazards' and In India, most of the mineral resources are
'Risks'. Both are sometimes used interchangeably but concentrated in the areas of Odisha, Andhra Pradesh,
are not same when it comes to the safety. Hazard is Chhattisgarh, Jharkhand, Madhya Pradesh, and
likely to cause harm, while risk is the possibility of Karnataka.
harm when exposed to the hazard.
There are regions which are dominant in particular
Hazard can actually cause harm to the stakeholders minerals. For example: Iron ore is found in Odisha,
Chhattisgarh, and Jharkhand etc. Manganese is found
involved. Whereas, Risk has a chance to cause harm
but it's not definite. in Maharashtra, Madhya Pradesh, and Andhra Pradesh
etc.

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