Mining tenements are the most fundamental asset of a mining firm, yet they are frequently assigned a low-risk priority, with little focus on risk identification. A mining company must carry out a proper risk assessment of its tenure to ensure the security of its mining tenements and continuous operation.
Risk Identification And Security Of Mining Tenements
Risk identification and security of mining tenements require the following:
- Appropriate management, expertise, and planning capabilities in your organisation to satisfy expenditure commitment.
- Proving that you’ve done everything necessary to meet your legal and regulatory obligations.
- Ensuring the protection of sensitive tenure information and geological knowledge, technology, legal contracts, and the environment.
- Adequate personnel and succession planning.
- Sufficient tenure funding and not reducing finances without considering the increased risk.
Causes Of Risk In Mining Tenements
- Tenement manager mistakes and delayed reports to upper management.
- Errors caused by software.
- Failure of data and data management as well as ineffective audits.
- Failure to follow official recommendations and understand relevant laws.
- Not keeping tenement information confidential.
Reducing Tenure Risk With Modern Tenement Management Software
One of the most significant hidden dangers associated with tenement management is the software. Tenements are currently being handled using software that is either out of date or not suitable for the job at hand. For example, tenements are currently being managed using Excel spreadsheets, Word documents, and Outlook Calendars.
This kind of software raises risks by requiring manual data entry. It also fails to comply with changes in regulatory requirements due to either an inability to be modified or a lack of awareness that a change is required. This introduces inefficiencies into operations.
The use of functioning, modern innovative tenement management software such as 1slate tenement management software will substantially reduce risk and increase security of mining tenements. It allows the company’s employees to implement risk management strategies such as:
- Preventing errors by establishing procedures that are recorded and embedded in the company’s processes.
- Getting rid of outdated programmes that don’t comply with new regulations.
- Automating audits of the tenement database.
- Automating reports of errors and issues to management.
- Automating data updates, including compliance dates against government databases.
Conclusion
Regulatory responsibilities imposed on mining tenements are becoming increasingly stringent, and failure to meet them may result in fines, penalties, or even loss of tenements. An organisation needs adequate risk assessment strategies to guarantee the security of its tenement.
Contact the Flout Team today to learn more about risk identification and security of mining tenements and how 1slate can help you.
