Case study 6

Juan Pablo Herrera

Fernanda Garza

Discussion

Director 1: The exploitation risk

This is about the production of materials like copper, basalt, precious metals, etc., and it is low risk
because the production of this materials does not guarantee a good profit.

Director 2: The security risk

This is about a country that has been unstable for many years, and it is very high risk because
there have been civil disturbances, the mining companies have been attacked by gangs, and some
people have lost their life, so this is very violent.

Director 3: The health risk

This is about the health for the mining workers. It is high risk, because the area where they work is
no safe for them. They suffer from skin diseases, the water and the soil is contaminated, so this is
not a safe place.

Director 4: The economic risk

This is about the price of the metals that can increased or decreased, the people can´t know the
price, it is a very high risk because you can lose a lot of money if the price of the metal is low and
you bought at an expensive price. You can wait until the price of the metal increase but you don´t
know when will be increase again.

Director 5: The financial risk

This talk about an enterprise that wants to borrow money for invest in a new machinery to exploit
the site, but the transport in that country are not reliable so this is a medium risk because, if you
take the risk of buying the machinery but if this doesn´t work, you have to pay for the machinery
and this implicate loss of money. But if this really works you can earn a lot of money.
 Report

Summary

The mining groups are suffering some risks while working, such as the exploitation risk, the health
issues, the security risk, financial risks, and economic risks. This is something we should consider to
avoid.

Introduction

This report will look at:

 Exploitation risk
 Health risk
 Security risk
 Financial risk
 Economic risk
 Conclusion
 Recommendations

Findings

We have found that there are many risks in the mining area, such as the risk of not having enough
profit with the exploitation, the health risk with the water and soil problems, the very high risk of
the security and the persons who lost their life because of the attack, the financial risk, and the
medium risk of the economic issues.

Conclusion

There are many risk in the mining area, some of them are low risk, but some other are very high,
which in this case is very alarming and we need to try to fix it and low the risk.

Recommendations
As a recommendation to avoid some of this risks would be to add some safety rules to avoid the
health issues and the diseases, to add some security to the country and to try to fix the financial
issues.