CAN WE IMPROVE CAPITAL COST OVERRUNS IN THE MINING INDUSTRY?
The mining industry has a poor record of capital cost overruns in comparison to other industries. The topic of capital cost overruns in the mining industry has been examined for over 50 years from the mid-1960’s to now. Recent studies have shown average capital cost overruns between 25% and 60%. What is the path forward?
Samuel Engineering (SE) presented its findings, “And the Saga Continues for Capital Cost Overruns in the Mining Industry,” in Q4 of 2019 for the Mining & Metallurgical Society of America (MMSA) in Denver, Colorado. In this presentation for capital cost overruns, we summarize the results for historic and recent studies, the contributing factors by cost elements, survey of mining industry personnel, present a recent case study, and summary/conclusions for the path forward.
The objective of this presentation is to identify the contributing factors to overruns and to quantify the relevance of each factor.
ABOUT MMSA
The Mining and Metallurgical Society of America (MMSA) is a professional organization dedicated to increasing public awareness and understanding about mining and why mined materials are essential to modern society and human well being. MMSA delivers this message to two different public sectors:
- Public policy makers, including elected officials and regulatory agencies
- All levels of the educational system
Since its inception in 1908, MMSA has provided valuable information and guidance to federal, state and local governments on a number of important public policy issues dealing with mining. MMSA has also made substantial contributions to educational programs that help teachers inform students about mining and how minerals are used. In the ninety years since then, MMSA has played an important role in a series of actions benefiting the industry.
Samuel Engineering Mining SERVICES
Samuel Engineering, Inc. (SE) is a multi-discipline engineering, procurement and construction management (EPCM) company. SE delivers projects for Mining & Minerals clients in all regions of the world. Our staff is an effective, efficient, well-equipped team that provides total solutions for our Clients in all project phases.
Our project delivery services include:
- Project Management
- Preliminary Economic Analysis Studies
- Prefeasibility and Feasibility Studies
- NI 43-101 Technical Reports
- Engineering
- Detailed Design
- Project Controls
- Estimating and Scheduling
- Procurement and Contracts Management
- Logistics and Expediting
- Construction Management
- Startup and Commissioning
Learn more about our Mining & Minerals Services.
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