THE IMPROVEMENT OF SMELTER OPERATIONAL RISK BY USING RISK MANAGEMENT SYSTEM CASE: PT SILO

• Main Author: Salim, Themy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35785
• Institution: Institut Teknologi Bandung

Indonesia mineral and coal mining activities are regulated by the Law on Mineral and Coal Mining No. 4 of 2009. One of the important points in new Mining Law is the increasing mineral value added through domestic processing & refining activities. PT Silo is an iron ore mining company that transformed itself into smelter entity by building processing and refining facility. Smelter activities can be considered to have higher complexity than mining due to involving more type of main equipment, type of main process, involving high temperature, more type of material to be handle, and deals with more environment aspects. The complexity causes more and new risks to be managed in the smelter plant compared with mining, especially the operational risks which classified into operation, safety, and environment category in PT Silo. The objectives of this final project are to conduct operational risks assessment and develop risk treatment plan for PT Silo smelter plant. Risk management process reference is taken from ISO 31000 and constructed using qualitative method. Data collection is divided into primary data from interview method with 8 respondents from PT Silo and secondary data from relevant supporting documents. External context is developed from PESTEL framework and Five Forces model, meanwhile internal context is build using Resource-Based framework and Value Chain Analysis. SWOT matrix and strategy analysis then constructed with the input from external and internal context. Risk analysis is conducted by setting and formulate the consequences, likelihood, and detection rating on each risk event. Risk evaluation is determined based on the rating score into extreme, high, medium, and low risks. There are total 121 risks in PT Silo smelter operational that had been identified, analyzed, and evaluated. Those risks consist of 65 risks in operation category, 45 risks in safety category, and 11 risks in environment category. Risk treatment list is developed to address risks with extreme and high rating score. There are 1 extreme risk and 7 high risks in operation category, 1 extreme risk and 6 high risks in safety category, and 5 high risks in environment category. Risk treatment in terms of mitigation plan is constructed for each category; and classified within the risk control hierarchy of elimination, substitution, engineering control, administrative control, and personal protective equipment. There are total 11 action plans developed for risk mitigation in operation category, 9 action plans for safety category, and 4 action plans for environment category; with 5 months schedule from December 2018 to April 2019. The final project results are expected to give contribution to PT Silo to manage its operational risks in smelter plant; hence the company can overcome the complexity of smelter operation and generate products as targeted specification in safe manner and environment friendly condition.