A considerable number of large mining capital projects were placed on hold as commodity prices lowered beyond breakeven points in late 2015 and early 2016. Now that commodity prices are recovering from notable lows, mining organizations are beginning to re-energize much needed capital investments.
With the large number of capital projects expected to impact the market near the same time, owners are carefully considering the appropriate project delivery and pricing strategies to increase the likelihood of success for developing new mine assets.
The large-scale, multi-party involvement and compressed project timelines associated with these projects increase their complexity and need for a well-designed contract strategy and integrated risk management.
Mining executives strive to develop and deliver project portfolios with cost and schedule certainty while achieving excellence in safety and quality. To successfully and effectively achieve this vision, we believe mining companies should consider the following steps: