As part of the London Mines and Money conference at Enthalpy’s UK launch Neil Cusworth presented “Why, for the last decade, did the international Mining sector deliver so many bad projects – and importantly how can we stop history repeating itself”.
This article explores project mistakes and how to prevent them.
Since the boom in commodity prices and the rush to develop and construct new mining projects to meet demands for products, many projects have been analysed and stated to be failures.
Enthalpy has been involved in delivering a range of mining projects or conducting reviews of studies and projects over the last 25 years. We have also been involved in conducting many post project reviews.
Most of the public dialogue and particularly “Management consultants” point to cost and schedule overruns as indicators of project mistakes. But is this dialogue correct?
And what are the causes of the project failures?
Can these failures be prevented or do investors have to learn to live with the reality of risks in the mining industry?
So if a project fails to be robust enough to withstand swings in commodity prices or cannot deliver the product tonnages forecast, or suffers exchange rate changes then capital costs overrunning and schedule delays will be just minor issues.
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