Project Development Risks

At each stage in the project development phase, there are potential risks and uncertainties that could materially affect the expected results (project economics). These factors include:

• Changes in the amount (tonnage), quality, metallurgical properties, and geotechnical conditions of the site to be mined which was not or has not been anticipated before;
  Realization of higher raw material and labor costs than previously estimated;
• Unexpected delays in obtaining the necessary permits, either related to environmental licensing and permits from the government;
• Poor security and mine safety performance;
• Changes to the applicable laws and regulations;
• Potential delays in handling social and community problems.

All of the above factors can result in an increase in project development costs, delay project implementation and result in not achieving the expected financial performance. This has the potential to create new risks.
Therefore, the preparation of an activity plan and monitoring of the progress of its status becomes a substantial activity to avoid the above risks. Each variant that occurs is subject to analysis by the Project Manager and proposed strategic improvements are reported to the Directors for approval. In addition, the implementation of government regulations on Mining Health and Safety is a focus which is carried out by individual units and is constantly reviewed by the Company’s internal auditors for Occupational Safety and Health.