A risk-based approach to practical scope definition and management at PT Freeport Indonesia

Abstract

PT Freeport Indonesia's (PTFI) Grasberg mining complex consists of some of the largest and deepest mines in the world, set within a complex geological, hydrogeological, and geotechnical setting. A risk-based approach to scope definition is implemented practically to manage hazards at underground operations. The approach focuses on identifying hazards, managing those hazards, and communicating risk from planning through operational stages. Risk management is centred around an online platform that enables users to reference hazards and determine initial, current, and residual risk ratings. PTFI's approach to risk assessment enables management to understand the divisional risk across multiple technical disciplines and focus their efforts on scope definition, manpower and budget allocation to promote safety and achieve stated production targets. This paper provides details of PTFI's approach to risk management, highlights challenges and realised benefits, and outlines the path forward for continued risk-based scope definition and hazard management.

Risk, lessons and opportunities: a unified knowledge management approach for mass mining

“…PTFI has leveraged experience and momentum gained from an in-house risk management platform (Llewelyn et al 2022) to develop a joint lessons learned and opportunities registry. In constructing the platform, PTFI representatives interviewed staff and industry peers to gain insight into what would make such an effort most effective.…”

“…PTFI's risk management process has been effective partly because all major project scopes are tied back to corresponding risk(s). Refer to Llewelyn et al (2022) for a full description of PTFI's risk management process.…”