Site risk is the collection of risks related to and arising from the project land. It extends to site suitability, issues that may arise in site acquisition, environmental liabilities arising from site features, requirements related to planning and other approvals, and Native Title issues. Environmental and planning risks, and Native Title issues all can have significant consequences for a project's viability, were they to arise.
Site risk is a significant issue at the inception of the project and during construction, but becomes less important in the operational phase. However, environmental risk may materialise during the operational phase if previously unidentified problems come to light or the project operation itself gives rise to pollution or to land or ground water contamination.
Site risk may be broadly grouped under five headings:
(i) land interests and acquisition
(ii) statutory approvals
(iii) environmental issues
(iv) indigenous issues
(v) suitability of the site and any existing infrastructure.
Each of these risks is discussed below.