Ann: Corporate and Abra Operations Update, page-3

DeJa'Vu!

Didn't this exact same event happen 12 months ago??? Pretty pathetic having to conserve LNG. What happened to the basic risk assessment that 99.9% of other operations conduct??? Obviously it is not 100% as I believed because G1A appears to not have done one. Site risk assessments are driven from board & GM level and the problems discussed in this update also identifies a failing by the Commercial Manager. The board, GM and Commercial manager should be sacked!

It's not rocket science to do a site risk assessment to identify a known event (Flooding) and look at mitigation to keep the plant running. A basic mitigation task would be to identify that additional stock levels for LPG, fuel, reagents, ground support etc are needed to keep the site working for up to a month in the event of a flooding. Hell, if you don't have the money for the new tanks, Shell, BP etc would construct the additional facility and charge a few extra cents a litre to you to pay off the costs over a number of years. If you're worried about the cost of storing the additional LPG, Fuel, reagents, ground support etc, you have the goods on consignment and pay for what you use at the end of the month. Looks to me that this site is run by RANK amateurs.

The only thing a known event (flooding) should effect is food, labour and stores.

1. Labour - upgrade the runway to all weather (yes money)
2. Food - Fly in fresh food (requires item 1) and for dry goods hold one months supply at any given time (written in catering contract)
3. Stores - most costly if roads closed. Can air freight small items but the only way around large items is to increase stock levels. One thing I noticed in my times in the mines is that a lot of supervisors couldn't organise a piss up at a brewery. Their planning incompetence was kept hidden by having the stores dept get spares etc to site ASAP. Such lack of planning went unnoticed by management until such time the roads are closed. Then you have the finger pointing for who stuffed up.