Putting the Service-Profit Chain to Work

ID

Type

Name

Cause

Effect

Owner

Likelihood

Financial Impact

Schedule Impact

Current Rating

Current Controls / Treatment Plan Overview

Response ID

Response Title

Response Status

Response Owner

Response Due Date

Response Comments

13000

Risk

Development of 511C LV Contract

Suitable time frame for Construction

Unable to accomplish Commissioning dates;

Bill Cravens

Likely

Serious

Critical

Extreme: 24

Ensure a proper coordination between the parties involved for key work areas

13245

Ensure contractor to increase manning levels;

In Progress

Gustavo Cerna

15-02-14

13246

Introduce nighshift for 511C

In Progress

Gustavo Cerna

28-02-14

12981

Risk

Late delivery of pipework, platework and spools by FIMA

FIMAs fabrication ratio not aligned to Project requirements; Materials can not be found in Peru;

Impact on 501 SMP Schedule and Mechanical Completion date;

Bill Cravens

Almost Certain

Moderate

Major

Extreme: 23

13247

Discuss with Cosapi SMP and FIMA new delivery dates required as per schedule

In Progress

Bill Cravens

31-01-14

31-Jan-14 On going

12360

Risk

Camp capacity not aligned to Project ramp up

Camp expansion not sufficient to hold new contract packages manpower (e.g. 533, 511C, 509)

Inability to mobilise personnel impacting schedule;

Jonathan Gunnel

Likely

Serious

Major

High: 21

Daily coordination meeting to prioritise camp allocation; Weekly meeting for camp issues between Hudbay, Ausenco and Stracon;

13241

Complete Camp Expansion 3

In Progress

Jonathan Gunnell

15-03-14

26-Jan-14 Ausenco completing Camp expansion 3 design. Camp will hold 576 workers and will be ready mid March.

10790

Develop Camp Projection Manpower

In Progress

Jonathan Gunnell

31-01-14

14-Jan-14 Currently under development by JG.

10667

Discuss with Contractors to ensure the prioritisation of workers prior mobilisation

In Progress

Jonathan Gunnell

31-01-14

18-Dec-13 On going. Beds are assigned in conjunction with Hudbay if necessary

12189

Risk

Storage explosive buildings not ready when required

Late changes to contract strategies; Late commencement of civil, assembly and electrical works; Late delivery of final design and structures;

Delay issuing permits for explosives; Impact on schedule (pre-striping activities)

Bill Cravens

Likely

Serious

Major

High: 21

Follow up with TMI

13191

Complete Magazine Construction Schedule and discuss with Hudbay

In Progress

Simon Beddow

30-01-14

31-Jan-14 On going

13271

Develop an schedule for the assembly and electrical works;

In Progress

Roy David

28-02-14

10910

Engage contractor for assembly and electrical works

In Progress

Simon Beddow

15-01-14

26-Nov-13 Building have shipped and on the way to site. Erection drawings are not completed. Schedule is not finalised. For permitting, Electrical drawings are required. Fire suppression system not defined.

13236

Expedite Procurement and arrival of Fire Water Pumps

In Progress

Nicola James

31-01-14

31-Jan-14 On going

11834

Risk

Delay to Commissioning due to Power Transmission Line is not ready

Delay in starting works on Bay5 in Tintaya substation; Delays completing negotiations with Chilloroya Community;

Impact to Commissioning Schedule; Major cost impact;

Ron Cook

Almost Certain

Major

Major

High: 20

Monitor Abengoa contractor progress; Abengoa weekly reports

11012

Evaluate Progress of Socabaya Titnaya line and Tintata to Constancia Powerline

In Progress

Ron Cook

15-01-14

26-Jan-14 Discussion last week with Tesure they completed there last 4 Right of Ways. It was guaranteed that the Tintaya substation would be energized by April 1 2014.

9830

Pursue negotiations with land owners for right of ways (ABENGOA)

In Progress

Ron Cook

30-07-13

26-Jan-14 Currently negotiating with Chilloroya Community for the right of ways. It is the last community to negotiate with.

12982

Risk

Late arrival of E-rooms to site

E-rooms fabrication schedule not aligned with Construction schedule; Priorities not well defined

Impact on Commissioning schedule

Eugene Kanciar

Almost Certain

Moderate

Serious

High: 20

Ausenco supervisor dedicated to review and expedite progress fabrication

13256

Review if E-rooms arrival dates are aligned to Commissioning schedule

In Progress

Barry Howell

10-02-14

13260

Siemens to present recovery plan for electrical rooms 300,500,600,700

In Progress

Rafael Fonseca

10-02-14

12801

Risk

Permanent Laboratory not ready for completing Pre-stripping analysis

Late development of Laboratory facilities; Late award of Laboratory contractor;

Unable to properly identify NAG, PAG and verify ore content; Cost impact sending samples outside of the mine for testing;

Bill Cravens

Almost Certain

Moderate

Serious

High: 20

11180

Engage contractor responsible to complete civil works and installation of structures

In Progress

Simon Beddow

31-01-14

13-Jan-14 Civil works engaged with Cosapi Civil to commence 09 Feb and finish 12 Mar.

11181

Expedite award of Laboratory Contractor

In Progress

Javier Toro

28-02-14

13-Jan-14 Not priority due to the delay of the assembly of Permanent Laboratory

11179

Expedite delivery of structures to site for Laboratory construction

In Progress

Pierre Boulangger

31-01-14

26-Jan-14 All structures to be delivered to site by Jan 26th.

13194

Implement Temporary Laboratory Plan

In Progress

Javier Toro

07-03-14

12377

Risk

Unable to Operate Permanent Fuel Facility on schedule

Construction delays in Permanent Fuel Facility; Delays signing contract with Primax; Delays completing Bench and Access roads prior Primax contract commencement; Permitting process taking from 6 months

Project is restricted to using only Temporary fuel Facility to supply equipment; Unable to meet equipment peak load;

Eric Moser

Almost Certain

Serious

Serious

High: 20

13192

Complete Expansion of Temporary Fuel Station

In Progress

Steven Ngatai

15-02-14

26-Jan-14 Expansion of temporary griffo underway - completion date 10/02/14

10993

Define fuel capacity required during Ops

In Progress

Graeme Walsh

31-12-13

07-Dec-13 To confirm final number. To be validated.

10741

Expedite Primax contract approval

In Progress

Andres Silva

31-01-14

26-Jan-14 The contract was divided in to two areas: Engineering and Construction. The Engineering component was signed and issued on November 2013.
The construction component had been discussed and agreed. Will be issued for signatures before Jan 31st.

11171

Submission, follow up and approval of Permit

In Progress

Fernando Montero

01-02-14

27-Jan-14 In order to start permitting, engineering needs to be completed.

11206

Risk

Delay to obtain Operation license for plant (Beneficiation Concession)

Major observations during MINEM Inspection due to significant changes to design and as built; Delay in Construction Schedule; Water Licenses not approved on time; Design submitted at BC does not match as built construction

Delay in Operations, Start up and Loss of Revenue

Terry Linde

Unlikely

Critical

Critical

High: 19

Monitor construction progress; Monitor that Surface & Underground Water Licenses ares obtained as scheduled;

9751

Define date to request BC Authorization and Inspection by the MINEM

In Progress

Fernando Montero

06-12-13

21-Jan-14 No observations have been posed by the evaluator up to this date regarding this matter.

10987

Risk

Unable to meet required Tailings and Water Capacity according to ramp up at required dates

Delay in Stracon execution of the TMF East and Water Collection Structures; Aggressive Schedule; Delay of Cunahuiri Reservoir;

Impact to Production Schedule; Project is required to stop after completing Wet Commissioning;

Graeme Walsh

Unlikely

Critical

Critical

High: 19

Complete construction of structures according to Water Collection Strategy; Continue collecting water at MSP through culvert 5;

13250

Capture NC4 water and diver to TMF Sed Pond 1

In Progress

Steven Ngatai

15-02-14

26-Jan-14 Stracon is setting up a system to capture water from the NC4 to pump water to the TMF sed pond # 1 and then transfer to TMF. 509 contract will handle all other water transfers.

13162

Purchase and install piping system to capture and transfer water from Bog Dam to TMF East

In Progress

Steven Ngatai

30-04-14

26-Jan-14 Collecting only localized run off at BOG Dam.

10334

Risk

Inconsistency between Crisis Management Plans on site

Multiple plans from contractors and client

Late response to crisis events

Eric Caba

Possible

NIL

NIL

High: 18

11167

Define fuel buffer

In Progress

Eric Caba

31-12-13

7450

Develop a unique Site Crisis Management Plan

In Progress

Eric Caba

31-03-14

19-Nov-13 Central Crisis Response Plan is being finalized. One crisis simulation has been done with a portion of the management team using the process. A second simulation and the completion of the tier II action plans is scheduled for the second week of January 2014. The EPCM has been included in the current revision and a draft has been delivered to Konrad Litfin for review.

11166

Meeting to define acceptable Project risk

In Progress

Eric Caba

31-12-13

12803

Risk

Unable to access Constancia Mine Pre-stripping area

Late development of HR03 construction

Delays to commence Pre-stripping stage

Javier Toro

Possible

Moderate

Major

High: 18

11185

Develop and finalise HR03

In Progress

Steven Ngatai

07-03-14

26-Jan-14 Haul Rd 3 currently on schedule.

12807

Risk

Unable to access NAG Loading Areas

CR1 in front of NAG Dump delayed

Delays completing pre-stripping

Javier Toro

Possible

Moderate

Major

High: 18

11191

Complete CR1 section in front of NAG Dump by February 2014

In Progress

Steven Ngatai

28-02-14

26-Jan-14 CR1 currently on target for NAG dumping

11613

Risk

Unable to complete WRF Containment Pond to collect water during Wet Season 13-14

Wet season causing delays and reworks during clay placement;

Unable to collect sufficient water for Start-up;

Graeme Walsh

Possible

Major

Major

High: 18

10223

Complete Construction of NC4 to divert water and allow WRF containment pond construction

In Progress

Steven Ngatai

31-12-13

06-Dec-13 Expedite procurement of valves for CC1 & CC5

13209

Expedite clay works to raise embankment above ground level

In Progress

Steven Ngatai

31-01-14

11170

Expedite procurement of valves for CC1 & CC5

In Progress

Scott Beattie

31-12-13

30-Jan-14 Valves procured and have pre-delivery inspection.

12389

Risk

Unable to place PAG at Waste Rock area

Restricted access to PAG Areas for development; Community Relocation delays

Late development of Mine Prestrip; Late Ore Commissioning

Graeme Walsh

Possible

Major

Major

High: 18

13238

Complete new design for PAG Storage due to remaining houses in the area

In Progress

Scott Beattie

31-01-14

30-Jan-14 Stage 1 of PAG facility agreed, no community land issues.

10897

Complete relocation to Quimsachata area

In Progress

Nino Coppero

31-12-13

31-Jan-14 On going

8829

Risk

Accidents involving project related traffic and community

Increased traffic; Narrow roads; Weather conditions; Road conditions

Accidents on the road to the project; Injuries; Personnel in the community are negatively impacted by project activity

Jonathan Gunnel

Likely

Moderate

Serious

High: 17

Monitor the compliance of Project Code of conduct and Grievance Procedure; Monitoring Compliance with the provisions of RITRA; Monitor Road Condition from Espinar to Site; Weekly Traffic Safety Committee Meetings;

10803

Implement a maintenance Program of Road from Espinar to Site after wet season

In Progress

Ron Cook

31-03-14

26-Jan-14 Jim Gannon Construction Manager at site is evaluating the road conditions and when possible will initiate road repairs.

11195

Risk

Insufficient lightning protection on site for workforce

Weather Conditions

Major Injuries; Work stoppages

Daniel Carey

Likely

Serious

Serious

High: 17

Ensure Workforce remains close the workfront at refugees

13249

Implementation of Lightning Shelters

In Progress

Daniel Carey

15-02-14

26-Jan-14 Further 20 foot and small lightning shelters are being built.

12806

Risk

Late development of Coya Pampa Quarry Area according to WRF Loading plan

Relocation delays;

Impact to Loading Plan; TMF zone A core construction; Estability issues during Operations;

Javier Toro

Likely

Moderate

Serious

High: 17

11189

Deliver status of resettlement to Operations

In Progress

Nino Coppero

31-12-13

8863

Risk

Managing and meeting community expectations related to equipment supplied by the community to the Project

Currently Project not renting light & heavy vehicles from Communities as agreed; Not following local procurement Procedure

Community workers complains; Strikes; Work stoppage;

Guillermo Reyes

Likely

Minor

Minor

High: 17

Continue to execute contracts with local suppliers assuming all documentation is in place. Enforce cancellation clauses when encounter unresponsive supplier; Giant at Chilloroya delivering Servicing to community Equipment

10960

Prioritize renting community owned vehicles than subleased vehicles

In Progress

Maria Elena Vinatea

31-12-13

12414

Risk

Package 509 system not ready when required by schedule

Scope change; Delay in award, contract approval by client

Late package completion; Impacts on water harvesting

Michael Wright

Likely

Moderate

Serious

High: 17

10867

Facilitate client involvement in process;

In Progress

Michael Wright

30-11-13

26-Jan-14 Options being reviewed with client for possible additional harvest system from NC4 to TMF East.

11050

Risk

Unable to meet with required clay production in order to meet with Construction requirements

Clay humidity content greater than design specs; Late finalisation of relocation program of community personnel; Lack of sufficient resources; Wet season;

Delays of TMF East and WRF Containment Pond embankment Construction; Late commencement of Water collection on TMF East;

Graeme Walsh

Likely

Serious

Serious

High: 17

Direct placement of Core Material (Clay) source, using grizzly screens.

8762

Hudbay to expedite finalisation of agreements and relocation program

In Progress

Nino Coppero

31-05-13

25-Nov-13 A total of 7 agreements are pending. Hudbay will deliver the land to the Community after Quimsachata works are completed and also to the families to be relocated.

10819

Planning for installation of Trommel in Coya Pampa (PAD III)

In Progress

Scott Beattie

15-12-13

26-Jan-14 Trommel is on site. Final components for trommel are due on site by end of Jan

12355

Risk

EPCM personnel turn-over

Other projects starting up in the area. Current staffing is being targeted in Arequipa with more appealing packages being offered

Loose of EPCM personnel; Time and cost for recruitment;

Bill Cravens

Almost Certain

Moderate

Moderate

High: 16

Continue improving Camp, food, laundry and general site conditions;

11178

To develop retention Plan

In Progress

Bill Cravens

15-12-13

31-Jan-14 On going

8851

Issue

Project site personnel turn-over (alliance skilled labour)

Other projects starting up in the area. Current staffing is being targeted in Arequipa with more appealing packages being offered

Loose of skilled personnel; Productivity HSE risks due to turn over. Skilled Labour attracted to competing projects

Graeme Walsh

Almost Certain

Moderate

Moderate

High: 16

Change of recruitment strategy, recruiting personnel from Cusco, Lima, Cajamarca and other cities; Stracon pulling operators from other projects where they have operations; Stracon improving camp conditions and accommodation;

11174

Review and communicate staffing Plan

In Progress

Steven Ngatai

15-01-14

10336

Risk

Catastrophic failure of the dam (TMF) during Construction

Dam Failure; Unseasonal Rain; Foce Majure event

Major Project delay;

Graeme Walsh

Rare

Critical

Critical

Medium: 15

Ensure proper Quality Control during the Construction; Follow TMF Design criteria;

10713

Risk

Impact of heavy haulage to communities

Communities unaware of large shipments through their communities; Lack of proper communication with the communities;

Community protests; Community dissatisfaction;

Jonathan Gunnel

Unlikely

Moderate

NIL

Medium: 14

Work closely with Acoinsa and Hudbay Community Relations on the transport of overdimension equipment; Procedure in place for Communication of Heavy Haulage to Hudbay and Communities; Following Protocols for shipping; Weekly logistics meetings with Hudbay;

12802

Risk

Lack of space for placing Top soil from Pit and WRF

Crusher in Top soil deposit area

Delays to commence Top soil removal from Pit and WRF areas

Javier Toro

Unlikely

NIL

Major

Medium: 14

11183

Define capacities required for TOP Soil from Pit and WRF

In Progress

Steven Ngatai

28-02-14

26-Jan-14 Crusher has been relocated and topsoil embankment construction well advanced

12303

Risk

Owner FOREX risk

Fluctuation of rate soles per dollar;

Impact to Project Contingency

David Madsen

Unlikely

Major

NIL

Medium: 14

Owner purchased S/. to hedge FOREX risk to cover future CF.
In addition, fina/account transactions follow Peruvian statutory law using daily x-rates.

8842

Risk

Protests by local communities interrupting site work program and/or causing injuries or damage to equipment

Failure to deliver on commitments; Miss-information or misconceptions within the community; Contractors not aligning with project commitments;

Deterioration of project reputation; Stop of construction activities; Impact to Productivity

Guillermo Reyes

Unlikely

Major

Serious

Medium: 14

Deliver on community commitments; Monthly grievance meetings established with communities.; Monitor contractor compliance with Project Social Policies.

12361

Risk

Ability of existing catering to meet with ramp up requirements

STP limitations, potable water and camp catering included

Retention issues due to poor performance of camp catering; Schedule delay

Karina Soraluz

Possible

Serious

Moderate

Medium: 13

10815

Expand Construction Camp Dining Room

In Progress

Jonathan Gunnell

30-11-13

18-Dec-13 Proposal being submitted to client on 18-12-13 - already agreed in principle

11619

Risk

Collapse or failure of structures such as dumps, walls (excluding TMF)

Not following Design criteria; Temporary structures are not designed and placed without geotechnical supervision; Use of incorrect materials; Heavy wet season

Re-works; Potential safety issue for personnel; Damage to equipment; Environment impact; Delayed schedule and production;

Graeme Walsh

Possible

Moderate

Moderate

Medium: 13

Ensure all structures are built following design signed off under QAQC;

10711

Identify all unsuitable areas that require additional works to avoid collapse or failure

In Progress

Steven Ngatai

31-03-14

26-Jan-14 Constructing in close consultation with KP design Engineers

11175

Monitoring Plan during wet season

In Progress

Steven Ngatai

31-03-14

26-Jan-14 Supervisors monitoring and reporting on daily basis

8828

Risk

Contractors interacting with Communities could create social distress

Workforce entering local communities seeking recreational services, or creating short term non sustainable businesses/impacts.

Project falls into the focus of NGO and other welfare parties; Project disruption; Community distress

Nino Coppero

Possible

Serious

Serious

Medium: 13

Drive contractor compliance with the Hudbay code of conduct; Support communities; Continuously monitoring compliance of project protocols.

10787

Distribution of Project Code of Conduct to Companies based in Communities (i.e. Chilloroya, Ucchucarco, Velille)

In Progress

Guillermo Reyes

30-11-13

8876

Risk

Customs clearance delays

Delay due to sequential clearance of Vigencia; Additional requirements by Custom Agents;

Delay delivery of equipment to site; Demurrage charges; Delay of critical path equipment to site; Acceleration cost

Hayley Mori

Possible

Moderate

Serious

Medium: 13

Liaise with vendor to ensure all technical information has been provided; Monitor on daily basis customs broker and customs clearance process, arrange meeting between supplier; Customs broker to ensure all technical information is accurate and available and forwarded to Customs to accomplish timely customs clearance; Timely documents review to identify cargo special conditions; Evaluate tools available to avoid payment of duties. Plan ahead if the equipment is subject to duties, or is 0 rated. Vigencia is suitable for large capital items;

11053

Risk

Delays due to lack of Filter/Blanket Drainage material

Geotechnical conditions; Crusher failures;

Delays in Construction of TMF east; Schedule delay; Cost Increase

Graeme Walsh

Possible

Serious

Moderate

Medium: 13

10987

Crusher 1 to produce filter drainage

In Progress

Scott Beattie

31-01-14

30-Jan-14 Importing sand material. Corporaque to blend with non-conforming filter

10782

Exploring options in conjunction with KP about material supply and specs

In Progress

Steven Ngatai

30-11-13

25-Nov-13 Currently project can’t meet with filter drainage KP specs.

12200

Risk

Late completion of Civil Works for Process Plant Substations

Lack of Siemens civil subcontractor; Lack of a contingency plan; Unreliable subcontractor; Siemens not closing negotiations with Cosapi Civil to continue with concrete civil works at Substations;

Impact on commissioning schedule; Interface between civil and electrical subcontractors;

Gustavo Cerna

Possible

Moderate

Serious

Medium: 13

Change civil subcontractor

10965

Develop and send recovery plan for civil works

In Progress

Marco Romero

31-01-14

06-Dec-13 On going

12391

Risk

Uncontrolled discharge to the environment from Plant Construction Ponds (Process, Contact and Tailings Ponds)

Late arrival of equipment and instruments to regulate discharge; Late construction and installation of equipment and instruments;

Discharge to the environment; Fines by regulator;

Angel Cuba

Possible

Serious

NIL

Medium: 13

13171

Complete installation and skimmers and piping before end of Jan

In Progress

Adriana Ferreyra

31-01-14

31-Jan-14 On going

10827

Expedite arrival of skimmers and hoses to site

In Progress

Adriana Ferreyra

27-01-14

20-Nov-13 ETA site end of December

6273

Risk

Uncontrolled storm water run-off during Construction

Rain and/or saturated material close to a river course

Fines; Environmental impact; Reputational impact

Edwin Ruiz

Possible

Serious

NIL

Medium: 13

BMPs have been installed; Contractors to monitor discharges and direct water to approved sediment ponds; Diversion channels around TMF construction area are being upgraded; Contractor to identify any recent uncontrolled discharges as an ongoing task;

10990

Implement Storm Water Management Plan for EPCM areas and structures

In Progress

Adriana Ferreyra

31-01-14

31-Jan-14 On going

10898

Stracon working with KP and Hudbay to implement control measures

In Progress

Steven Ngatai

15-12-13

26-Jan-1 On going improvement to surface runoff managemnet

12282

Risk

Failure to deliver structural steel according to schedule

Fabrication delays by TMI; Vendor not supplying documentation correctly; Lack of management support from Ausenco and TMI;

SMP Contractor (ECI) burning hours on site without materials to start construction

Enrique Vasquez

Likely

Moderate

Moderate

Medium: 12

Site to continuously review and change priority for fabrication; TMI rep on site; Task force and daily monitoring;

10684

Maintain record of man hours delayed due to lack of structural steel

In Progress

Adriana Seccombe

31-12-13

31-Jan-14 On going

12808

Risk

Increased quantities of Barge platforms and accesses

Lack of design;

Cost increase; Schedule impact;

Michael Wright

Likely

Moderate

NIL

Medium: 12

11193

Change Notice to be submitted

In Progress

Michael Wright

31-12-13

26-Jan-14 No currrent change

11192

Finalise design

In Progress

Michael Wright

31-12-13

26-Jan-14 Design is finalised from Ausenco and quantities considered. Contractor to provide proposals in 3 areas once mobilized.

12386

Risk

Unforeseen Engineering issues (EPCM)

Design completed in multiple areas; Overlapping of systems engineering completed is multiple cities;

Design re-works; Delays to T&M Contractors;

Yuri Gallo

Likely

Moderate

Moderate

Medium: 12

10806

Identify all interfaces and interferences (including above ground piping)

In Progress

Yuri Gallo

30-11-13

31-Jan-14 On going

10808

Implement new Field engineering modifications (Procesfor SI)

In Progress

Yuri Gallo

30-11-13

31-Jan-14 On going

10807

Increase Site Engineering Team

In Progress

Yuri Gallo

30-11-13

31-Jan-14 On going

11204

Risk

Major injury or fatality(ies) on site during Construction

Breach of Safety Standards; New Personnel to Mining activities; Rotation of personnel

Stop of Construction activities due to Investigation; Fines to the Project

Eric Moser

Rare

Serious

Moderate

Medium: 10

Following HSEC procedures; Monthly audits to contractors; Vigilance and keeping high level on safety; Permanent field reinforcement;

10893

Implement a one standard HSE system across the project to reduce any disparities in standards

In Progress

Daniel Carey

31-03-14

26-Jan-14 Hudbay are developing site wide procedures, but Ausenco will have input into the procedures

11835

Risk

Completion of C2 (Wet Comissioning) without Water License in place

Water License is not yet approved and wet Commissioning is required to commence to let Contractors demobilise from site; Chamaca district communities applied for prior consultation

Ministry requests to stop operations until Water License is granted

Fernando Montero

Unlikely

Serious

Serious

Medium: 9

12332

Risk

Contractors workforce demands resulting in strikes and/or delays to the construction schedule

Better working conditions/additional compensations requested by Contractors workforce

Strikes; Delays to the construction schedule; Extra costs due to T&M contract

Roger Tremblay

Unlikely

Serious

Serious

Medium: 9

Continue improving Camp, food, laundry and general site conditions

10805

Define list of additional amenities for workers over the weekend

In Progress

Jonathan Gunnell

30-11-13

18-Dec-13 Recreation improvement facility proposal to client on 18-12-13.

12809

Risk

Impact on transportation to site by development on Xstrata Road demonstrations

Demonstration in area of Corporaque; Road blockages

Late delivery of equipment and materials to site; Community issues;

Ron Cook

Unlikely

Serious

Serious

Medium: 9

Social monitoring in the area through Espinar Stakeholders

12359

Risk

Lack of adequate management of T&M Contracts

Ausenco Team not having adequate resources to manage T&M Contractors (SMP - E&I)

Cost and Schedule Impact;

Bill Cravens

Unlikely

Serious

NIL

Medium: 9

10775

Identify what positions are not yet fulfilled according to current Orgchart

In Progress

Angel Cuba

31-12-13

31-Jan-14 On going

12805

Risk

Late development of NAG Facility Construction

Stracon construction delays; Focusing on other critical areas

Delays completing Pre-stripping

Javier Toro

Unlikely

Serious

Serious

Medium: 9

11187

Ensure Proper Water Management structures are constructed

In Progress

Steven Ngatai

31-01-14

26-Jan-14 NAG embankment construction and underdrains progressing, no delay invisaged

12121

Risk

Lower than planned plant availability due to lack of spare parts

Critical, commissioning and operations spares not on site when required

Impact to Commissioning / Production Schedule

Eric Moser

Unlikely

Serious

Serious

Medium: 9

10217

Define if Failure mode and effect analysis should be undertaken in order to identify which spares should be purchased from vendor recommendations

In Progress

Eric Moser

31-12-13

11182

Review spare parts list with Hudbay (Commissioning)

In Progress

Marcus Gee

31-12-13

17-Dec-13 Current matrix under development for review of all Commissioning and operational spares ordered.

11836

Risk

Non-compliance with approved Discharge Permit (Control Points, Quality of discharge, Discharge flow)

Modification of a control point for discharge; Discharge Points not meeting Quality parameters; Modification of Treatment System (additional ponds)

Environmental fines; Reputational impact;

Edwin Ruiz

Unlikely

Serious

NIL

Medium: 9

Contractors continue developing Environmental audits and monitoring discharges

12981

Assess if Permit needs to be modified

In Progress

Fernando Montero

20-12-13

21-Jan-14 Hudbay will coordinate with Ausenco the amendment to the discharge permits of the treatment plants

10123

Discussion with authority about control points

In Progress

Fernando Montero

05-12-13

21-Jan-14 These discussions will be postpone because there are other permits under evaluation

10899

Ensure all Stracon discharges are completed from TMF Sed Pond 1

In Progress

Scott Beattie

05-12-13

30-Jan-14 TMF Sed Pond 1 is operational without instrumentation

11176

Ensure all Stracon discharges are completed from TMF Sed Pond 2

In Progress

Scott Beattie

31-12-13

30-Jan-14 TMF Sed Pond 2 will be operational without instrumentation at end of Feb

12982

Installation of Flowmeters at authorised discharge points

In Progress

Adriana Ferreyra

15-02-14

12983

Installation of Flowmeters at authorised discharge points

In Progress

Scott Beattie

31-12-13

30-Jan-14 Environmental team looking at materials to procure as the client requires

11629

Risk

Discharge of acidic water to the environment

Presence of acidic water at north contact pond, ROM Pad and DM3; Underdrainage developed under Process Plant area;

Environmental fines; Additional construction PAG Pond is required

Julio Roncal

Possible

Moderate

NIL

Medium: 8

Complete monitoring to identify any PAG water; DMs water management

9840

Complete Construction of Sub drainage system

In Progress

Adriana Ferreyra

30-01-14

02-Jan-13 Pending decision by Hdbay

9839

Complete design of sub drainage system

In Progress

Yuri Gallo

28-02-14

25-Nov-13 Design to be completed at site. Resources to be allocated.

10822

Purchase and installation of pumps to pump water back to the North Pond

In Progress

Yuri Gallo

15-12-13

31-Jan-14 On going

11205

Risk

Overall Project Site Security breaches

Unauthorised access to site by third parties

Theft or damage to equipment; Injuries to personnel

Eric Moser

Possible

Moderate

NIL

Medium: 8

Security company on site responsible for site security.

10816

Allocate additional security officers at Camp Construction

In Progress

Eric Moser

30-11-13

8883

Risk

Environmental incidents associated with management of waste during construction phase

Inadequate management of domestic and construction waste materials; Ladfill not yet constructed;

Fines; Reputation impact; Community protests

Julio Roncal

Rare

Moderate

NIL

Low: 6

Waste management planning; Monitoring compliance with the Plans and waste management procedures

8846

Risk

HudBay blamed for environmental impacts caused by illegal mining activities

Illegal miners increasing mercury level in the water.

OEFA focusing its attention to Constancia Project

Luis Zapata

Rare

Minor

NIL

Low: 6

Follow Environmental Monitoring Plan and Water Monitoring Program;
Monitor & control activities from artisanal miners;
Follow up on Katanga artisanal mining activities

8100

Initiate Data Analysis of water quality

In Progress

Julio Roncal

30-06-13

09-Nov-13 The baseline is on going since 2008, monitoring network has been improved

8101

Review study results and confirm potential responsibilities

In Progress

Julio Roncal

30-07-13

09-Nov-13 Final Golder report during next month

8848

Risk

Loss of long lead critical path equipment in transport

Road transport damage;

Major schedule impact due to need to reproduce multiple pieces of equipment.

Hayley Mori

Rare

Serious

Minor

Low: 6

Provide logistics contractor with clear instructions; Hold Kick Off Meeting prior to each Operation to ensure risks are identified; Use shipping companies of short transit

12358

Risk

EPCM staff personnel turn-over

Other projects starting up in the area. Current staffing is being targeted in Arequipa with more appealing packages being offered

Loose of Staff; Time and cost for recruitment;

Bill Cravens

Unlikely

Moderate

NIL

Low: 5

Improve Site Conditions

8873

Risk

Political interference impacting project development

Regional elections in 2014 - build up in 2013.

Protest action, negative focus on project - Project falls into focus of NGO

Carlos Castro

Unlikely

Moderate

Moderate

Low: 5

Monitor political developments; Community engagement and communication

5595

Establish agreed means and protocols for monitoring political situation and maintain regular monitoring

In Progress

Carlos Castro

31-12-13

25-Oct-13 No high risk alert has been triggered so far

12080

Risk

Unable to properly manage Warehousing and Lay down areas on site

Lack of storage planification; Bertling doesnt have enough equipments for storage proccess in multiple areas;

Loss of equipments and tools; Delays on constructions; Interfaces between contractors; Demurrage costs from trucks;

Philip Flanagan

Unlikely

Moderate

Moderate

Low: 5

12118

Risk

Dewatering wells not meeting water requirements for startup due to uncertain amount of water to be found on wells

Previous study design not accurate; Field conditions different from initial design assumptions of pumps; Uncertain amount of water on wells

Water from Dewatering wells can not be considered as a Contingency Plan in case there is not enough water accumulated in other ponds; Reworks; Cost increase; Impact on schedule

Michael Wright

Possible

Minor

Minor

Low: 4

Currently only following Hudbay Memo and Golder design; Ausenco is considering a contingency budget for extra works required in case not finding sufficient water

10422

Complete drilling to determine amount of water available

In Progress

Michael Wright

28-02-14

26-Jan-14 Drilling ongoing. Water quantities unknown until wells installed.

8853

Risk

Late issue of the detailed design drawings for construction

Late finalisation of design

Pressure on procurement, Logistic and Construction management teams; Fast track decision making; Impact in cost and schedule

Mark Dodds

Rare

Moderate

Moderate

Low: 3

Remove holds from drawings in advance of the design drawings being required for fabrication and construction.

5566

Confirm final design delivery date

In Progress

Mark Dodds

30-07-13

26-Sep-13 Ausenco´s engineering is being transferred from Brisbane to Lima. KP engineering is at 99%

11838

Risk

Landfill to be costructed on a different location than the one specified in original EIA while EIA Amendment 2 is not yet approved (End of 2014)

Landfill has changed location and will be constructed by a different subcontractor and on a different timeframe than specified in approved EIA

Regulator stops work and imposes penalties; Partially delay in construction;

Jason Orr

Rare

Minor

NIL

Low: 1

12804

Opportunity

Delay in Construction of a portion of CR1

Use of mining fleet

Cost reduction

Eric Moser

Almost Certain

Minor

NIL

Medium Opportunity: -11

11186

Stracon completing survey and determining cost savings

In Progress

Steven Ngatai

31-12-13

26-Jan-14 Not seen as an opportunity in CR1 as needs to be complete for NAG dumping