Mining Projects: Six Pitfalls that Threaten Delivery
Although it’s equally true of other industries, it seems that the mining industry doesn’t have a great record of on schedule and on-budget project delivery. Moreover, it also seems that it’s not very good at learning from experience either, and a cynical observer might be excused for thinking that the same old mistakes are being repeated time and again.
What are the factors that contribute to sub-optimal project delivery? These tend to include:
- Poorly understood geological and geotechnical aspects of a deposit, leading to inappropriate mine and process flowsheet designs
- Inadequate metallurgical test work
- Funding availability during the investigation and engineering phases
- Overly optimistic development schedules
- Human factors, including over-optimistic expectations that are spurred on by the need to promote project attractiveness to prospective investors
- Insufficient preparation for construction and operations during the Feasibility Study (FS) phase
- Insufficient engagement with local communities, stakeholders, regulators, government agencies and NGOs
Find further analysis in Willis Towers Watson's report attached below.