Mining Publication: Economic Consequences of Mining Injuries
Original creation date: February 2004
Direct costs such as medical, legal, administrative, and worker's compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.