So You are Investing in a Mining Project - What Usually Goes Wrong
PERFORMANCE ASSOCIATES INTERNATIONAL
The geology report, feasibility study, and mine plan look
great. Why do so many mining project start-ups fail to perform? Most mining
companies put a great deal of emphasis on the nature of the reserve, the mine
plan, the extraction process to be used, and the process plant design—obviously
all very important. Even when large, highly regarded engineering, procurement,
and construction firms develop the project, operating results are very often
disappointing. In this paper, we explore the role of Operations Readiness on
the financial impact of mining project start-ups. A relatively small investment
in operations readiness produces a huge financial return. Many investment
firms, as well as mining company senior executives, fail to consider this
important factor in operating success.