Mining Risk Review 2025
Not investing in ground control can increase short-term cashflow and profitability, but at the risk of a later failure which can create longtail financial exposures, or even mine closures.
The cost of poor ground support far outweighs the financial outlay of getting it right first time.
The scope of geotechnical engineering adds value across the lifecycle of a mine, from exploration and feasibility studies through operations and closure. Designing underground workings, accessways, shafts, walls, slopes, waste dumps, tailings storage facilities (TSFs), stockpiles and backfill placements in underground operations all fall within a geotechnical engineers’ purview.
But critically, geotechnical engineers are a valuable asset to risk managers beyond designing safe pits and mine workings —to identify ways to build efficiencies, control costs and expand revenue margins.
As demand for the majority of minerals accelerates due to population growth and the energy transition, the mining and metals sector is going further and digging deeper. Risk profiles are changing.
Susceptibility to extreme weather and regional tectonics are key vulnerability points that can cause major bottlenecks in critical mineral delivery.
Depending on location, geohazards impacting geotechnics can encompass:
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Many valuable deposits are found along or near fault zones, with high concentrations in countries such as Chile at high risk of large magnitude ‘megathrust’ earthquakes. These fault zones can act as conduits for mineral-rich fluids, leading to a higher concentration of ore deposits in these areas. In these stressed areas, mining operations promote local stress changes, compounding the risk of a seismic event.
“Unfortunately, geology is fixed. The only way to mitigate seismic risks is through rigorous geotechnical design at all levels of operation. Best practice will always invite independent third-party review and ongoing assessments as part of normal operations.” Joe Carr, Mining Risk Engineering Leader, Willis Natural Resources
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Mass movements are usually considered to be ‘secondary’ hazards, triggered by another event such as weather events. Although TSFs present less risk in seismically stable and flat areas such as those found in Australia and South Africa, areas of central Asia and the southern Caucuses are more at risk: TSFs are located on or close to active faults and above population centers. The upstream raising method – already having been banned in Chile after strong earthquakes between 1960 - 1965 which caused failure of El Cobre dam – was also banned in Brazil in 2019 following the Fundao and Dam B1 failures.
Failures are a reminder of how poor geotechnical design and data may lead to unsuitable foundation and drainage channel design, putting facilities and finances on shaky ground.
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In addition to triggering landslides, extreme rainfall can also lead to subsurface mine flooding if geotechnical design and surface water management aren’t able to withstand these events. An example of this was seen in the Capricorn Copper mine in Queensland, Australia in March 2023 where 370mm of rainfall fell in seven days. This rainfall led to pooling in surface depressions created due to mining activities, ingress through resultant cracks, with the subsequent flooding leading to a loss of mine access and multi-million dollar insured losses. While previously, geotechnical design would have considered a 1:1,000-year event as suitable, a 1:10,000-year model is emerging as a new minimum standard weather-related volatility.
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The geochemistry of the rockmass is often overlooked.
The interaction between rock, its minerals and the ground control systems can have huge consequences should the perfect storm of conditions be met. For example, an acid forming rockmass may degrade rockbolts faster than anticipated. In these conditions, the rockbolt reacts with the rockmass via an electrolyte, creating an electrical potential, and the rockbolt essentially becomes an anode and corrodes at an accelerated rate. This rate is far beyond design expectations and because the bolt is hidden within the rock, the corrosion is often undetected.
By better assessing these geological and geotechnical risks from the prospecting and planning stages through the mine’s lifespan, owners and operators can add value for stakeholders and reduce the potential for losses and downtime.
Extracting value from geotechnical engineering
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There is no global standard on geotechnical design, but there are shining examples of best practice standards which are widely used when there is no local standard to follow. Good examples include the Western Australian mining standards, Canadian standards and the Finnish/Swedish standards.
Mines should also consider the development of a ground control management plan (GCMP) which a good example of how a regulatory framework can be applied to show what a robust approach can look like, even if the mine is out of this jurisdiction.
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Geological surveys and geotechnical mapping should coexist. Examining the site and surrounding area for regional tectonics, host rock characteristics, groundwater and surface water drainage, creates a robust and detailed view of key hazards. These hazards must be constantly monitored during the lifecycle of a mine and cannot cease when it is decommissioned.
Some structures such as TSFs require a more technical input from third parties such as engineers of record (EoR) as well as independent review boards (ITRB).
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Scenario-based modelling can be used to predict changes in hazard susceptibility due to the presence of engineered infrastructure such as mine workings and TSFs, as well as accounting for potential climate change effects to weather intensification and the frequency of extremes over the course of a mine’s lifespan.
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For risks where the insurance markets have limited appetite, demonstrating a robust risk engineering protocol can make all the difference. Showcasing that geotechnical exposures have been identified, risk controls have been implemented, and monitoring protocols are active, will enable underwriters to fully understand the risks and the proactive measures taken to make informed decisions about coverage and pricing.
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Download the full article to understand more about geotechnical engineering.
| Title | File Type | File Size |
|---|---|---|
| Before rock bottom: Why geotechnical engineering is an asset in mining risk managers’ toolkits | 3 MB |
