OPERATIONAL RISK MANAGEMENT IN THE MINING TRANSITION: A CASE STUDY OF PT FREEPORT INDONESIA’S GRASBERG BLOCK CAVE (GBC) IMPLEMENTATION
Keywords:
Operational Risk Management, Underground Mining, Block Caving, Grasberg Block Cave, ISO 31000.Abstract
The transition from the Grasberg open pit to the Grasberg Block Cave (GBC) underground mine has placed PT Freeport Indonesia in a phase of high operational risk, while its risk management assessment within the ISO 31000 framework remains limited. This study aims to identify the key operational risks associated with the transition and implementation of GBC, as well as to analyze the mitigation strategies applied and their alignment with ISO 31000 principles. A qualitative case study approach was employed through content analysis of PT Freeport Indonesia/Freeport-McMoRan’s sustainability and annual reports from 2019 to 2024, supported by relevant technical literature. The findings indicate that PT Freeport Indonesia has established a relatively comprehensive risk management cycle; however, the occurrence of fatalities and recurring incident rates suggests that non-geotechnical risks particularly those related to transportation, supporting activities, and the management of new workers and contractors have not yet been fully controlled.
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