enthalpy news

by Nicole Belbin Nicole Belbin No Comments

A Capital Investment System – the support and assurance needed to back the right decisions

Investment decisions to develop new capital assets or acquire existing ones should be made on information via a phased evaluation process. The technical and other project information changes over time and in essence is never final. Due to this uncertainty, investment decisions and mining projects are never absolutely accurate and complete in forecasting the economic outcomes.

However, using systematic processes and achieving study standards ensures the investment evaluations achieve known content, quality, and accuracy levels.

There are many examples of mining investment decisions which did not deliver the forecast values. Enthalpy considers that either or both of two fundamental aspects underlie such unfavourable outcomes:

  1. The investment decisions were made on flawed, inadequate, or inaccurate evaluations.
  2. The new project developments or project acquisitions were not able to be delivered to the evaluations made.

A disciplined and rigorous approach using a capital investment process to the evaluation of mining capital investments addresses the first aspect.

The second aspect – the ability to reliably deliver the investment decision, via project implementation or business acquisition – is dependent on diligent project management, supported by a focus on planning and controls.

There are three primary management mechanisms that underpin the consistent delivery of new assets and projects:

  1. Minimum Standards of content, quality and accuracy
  2. Study and Project Planning and Control Standards
  3. Independent Peer Review Processes.

While project owners may use these three management processes to varying extents, many companies don’t define the Minimum Standards to be achieved for the content, quality and accuracy of studies. Instead, they adopt general guidelines or use generic checklists.

This can lead to a major failure because decision makers don’t define the quality to be achieved as a prerequisite for their investment decisions.

Enthalpy’s Capital Investment System addresses these key aspects in one system.

The importance of thorough planning is to bring together the right people, processes and platforms to ensure the best projects are selected for investment and implementation, and then well planned and executed effectively.

Learn more about Enthalpy’s Capital Investment System.

by Nicole Belbin Nicole Belbin No Comments

Media release – Enthalpy Capital Investment System now available on Concerto Analytics Digital Platform

Enthalpy and Concerto Analytics have partnered to make the Enthalpy Capital Investment System available on the Concerto business platform, to enhance visualisation and optimise project management and delivery for mining studies and projects.

The Enthalpy Capital Investment System is a robust methodology developed over three decades and 800+ projects and used by mining companies to improve strategic decision making to build and implement their investment strategies.

“The Enthalpy Capital Investment System is a proven, rigorous process already being used by global resource and infrastructure companies, with financial institution recognition,” said Paul Harper. “We are excited to be partnering with Concerto so the Capital Investment System can now also be made available on an advanced digital platform,” Paul added.

Concerto’s business platform, powered by Google Cloud, was launched into the market in 2019 offering a powerful and intuitive tool that helps companies’ model, visualise, simulate and optimise their business strategy.

“Concerto has partnered with Enthalpy because we see mutual benefit in making the Enthalpy Capital Investment System available on our business platform, which provides real time data, scenario modelling and a single source of information,” said Stephen Williams, Chairman of Concerto Analytics. “Enthalpy has a long, impressive track record of optimising capital-intensive projects across the mining, resources, energy and infrastructure sectors. By partnering with Enthalpy and making the Capital Investment System available on our platform, we are helping companies increased visibility, transparency, and time to value for their mining projects.”

 

About Enthalpy

Enthalpy is a leading independent provider of advisory services, implementation support and business products dedicated to optimising capital-intensive projects across the mining, resources, energy and infrastructure sectors. Over three decades and 800+ projects, Enthalpy’s thorough planning in bringing together the right people, processes and platforms has ensured the right projects are selected for investment and executed successfully, with minimal risk and optimal returns.

More at https://enthalpy.com.au/

Learn more about the Enthalpy Capital Investment System

About Concerto

Concerto Analytics is a leader in prescriptive analytics software and business improvement consulting. The Concerto Prescriptive Analytics platform and Industry Content Marketplace provide customers and partners with an advanced analytics capability for boosting continuous improvement and driving cost out of the value chain. Together Concerto works with a global network of industry partners across sectors to help customers improve the performance of their operations.

More at https://concertoanalytics.com

Learn more about the Enthalpy Capital Investment System Powered by Concerto

by Nicole Belbin Nicole Belbin No Comments

Before developing a mining project, make sure you’re developing the right one

It’s a characteristic feature of the resource industry that no two orebodies are the same and consequently no two projects are the same. The development of resource projects requires the investigation of a vast range of issues across a variety of engineering and geoscience disciplines, as well as factors such as environmental, social and governance (ESG), marketing, legal and commercial.  But the principal purpose of mining studies is to determine whether development opportunities make good business sense, not just whether they are technically and economically feasible, and that they can be constructed and operated in a sustainable manner.

For Boards to approve shareholder funds, the value proposition of an investment opportunity must be fully understood by the decision makers and presented with full transparency. A sustainable project strategy and risk-to-reward profile must meet corporate criteria so that an informed decision can be made with respect to progressing the project to the next phase of study.  The project evaluation has to be based on the level of risk and the accuracy of the forecast of outcomes. The project must also be aligned with the company’s business strategy.

The more shareholder funds are made available to evaluate an investment, the greater the level of accuracy and confidence to decide to advance the project. The question then becomes how much to invest, and how to achieve a well-defined framework to assist in this decision-making process. The right decisions start with right questions and having the best data available at the right time. It’s critical to be sure you’ve got the right project before you develop it.

Experience has shown best practice is adopting a phased, step-by-step approach to the evaluation of potential options to expend shareholder funds effectively and efficiently. With any potential investment there is a need to identify flaws, key risks and knowledge gaps to determine if the investment should advance or whether different options should be developed and restudied.

To minimise the chance of delivering anything short of a successful project, a mining study needs to ask the following questions:

  • What could it be? – explore a range of potential options for investment
  • What should it be? – investigate and evaluate different processes, capacities, locations and configurations to determine the best business case to meet business goals, and then recommend if further evaluation is warranted
  • What will it be? – consider whether the final project that achieves adequate return on investment is a sustainable value proposition that makes whole-of-business sense.

The right decisions start with the right questions and the right data at the right time. A disciplined and rigorous approach to the evaluation of capital investments can help achieve successful project delivery.

Learn more about Enthalpy’s Capital Investment System.

 

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

Improved Reporting of Mining Feasibility Study Results

Enthalpy’s CEO, Paul Harper, presented on the topic Improved Reporting of Mining Feasibility Study Results at the 2019 Mineral Systems of the Pacific Rim Congress in Auckland.

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Why improve?

Mining companies and the share market have recognised that greater transparency disclosure is required in the promotion of mining projects to attract a larger proportion of investment funds available in the equity market.

Enthalpy proposes to improve process for greater transparency around disclosure and use of Feasibility Studies (FS) to enhance and attract investment confidence in the resources industry.

Why are so many projects failing?

• Fail to establish core technical aspects of geology, mining, metallurgy at study phases
• Ignoring the sustainability and license to operate aspects
• Prefeasibility studies failing to rigorously find the best investment case
• Thinking bigger will be better – chasing economics by only upsizing the project
• Assuming optimistic commodity prices for the life of mine
• Producing flawed feasibility studies in the rush to get into production
• Not integrating studies at technical, project and business levels
• Inadequate project implementation planning
• Assuming project management should not be difficult
• Not conducting good quality reviews during the study and implementation phases
• Failure in project controls leading to surprises for company directors
• Believing that things go smoothly with a project.

 

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

The role of benchmarking and independent reviews

At the AusIMM Project Evaluation 2016 conference in Adelaide Neil Cusworth and Jane Miller presented industry leading thoughts on Independent Peer Review and the use of Benchmarking in capital projects.

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In the last 10 years the world mining industry has been through a boom-bust-boom-bust building cycle driven by commodity prices and demand.

The sheer scale of development has caused rapid and huge fluctuations in the availability and cost of materials, equipment, construction resources and services for mine development and operation.

The rate of changes has challenged the governance processes of both Benchmarking and Independent Peer Reviews.

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

The use and abuse of feasibility studies – has anything changed?

At the AusIMM Project Evaluation Conference 2016 in Adelaide, Neil Cusworth presented an update of his Use and Abuse of Feasibility Studies 2003 paper.

‘The use and abuse of feasibility studies – has anything changed?’ won best conference presentation.

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The presentation discusses the paper on this topic.

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Projects whose expectations have been set after comprehensive, detailed and integrated feasibility studies and that are then delivered by experienced, integrated teams encompassing all relevant areas of project expertise are able to deliver predictable project outcomes regardless of the inherent project factors or external macroeconomic circumstances.

The impact of the uncontrollable changes in external macroeconomic circumstances will be lessened if all other aspects of a project’s planning and execution are well controlled.

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

Enthalpy establishes Western Australian presence

Enthalpy is delighted to introduce Gavin Nunes as Enthalpy’s Principal Consultant based in Western Australia. Gavin has extensive world-wide experience in the mining and resources sector and brings his expertise in project management, engineering and contracting to the Enthalpy team.

Gavin establishes a permanent Enthalpy presence in Western Australia providing services and advice to resource companies backed-up by the broad project management knowledge and experience that Enthalpy has become renowned for over the last three decades.

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

Best Presentation at AUSIMM Project Evaluation Conference

Best Presentation: The Use and Abuse of Feasibility Studies

As part of the AusIMM conference at in Adelaide Neil Cusworth presented an update to the Use and Abuse of Feasibility Studies Paper.

Projects whose expectations have been set after comprehensive, detailed and integrated feasibility studies and that are then delivered by experienced, integrated teams encompassing all relevant areas of project expertise are able to deliver predictable project outcomes regardless of the inherent project factors or external macroeconomic circumstances.

The impact of the uncontrollable changes in external macroeconomic circumstances will be lessened if all other aspects of a project’s planning and execution are well controlled.

Click on the link below to download a copy

AusIMM Presentation – Uses and Abuses – 2016 Update

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

AusIMM Branch and Society Service Award (2015)

Paul Harper FAusIMM(CP) (Mining Society), in recognition of his contribution to the Mining Society Committee and his conspicuous contribution to the Institute. The aim of the Mining Society is to establish and maintain a mechanism for representing the interests of mining professionals within the Institute. Paul was Chairman from 2009 to 2011 and during this time he introduced face to face meetings to develop comprehensive and meaningful strategic plans for the society and its members. The society developed an identity and promoted its relevance to its members and is now a very active contributor to members and the Institute. Some notable achievements include: Mine Manager’s Handbook; Guidelines for Technical Economic Evaluation of Minerals Industry Projects; Contributions to the AusIMM/IOM3 Transactions, Monograph publications and Newsletter Program recognition for university courses; Encouraging and facilitating mentoring arrangements for mining engineering students and young professionals; Advising the AusIMM and CP Boards on various matters. Paul has also been a leader, mentor and supporter of several Institute activities and has worked towards increased collaboration among the Institute societies and committees and their members.

by Enthalpy_Admin_2018 Enthalpy_Admin_2018 No Comments

Luke Epstein Appointed Associate Partner

Over the past 10 years, Luke has worked as a Regional Project Manager and Engineer on numerous multibillion dollar offshore and onshore infrastructure projects around the world, across the Oil & Gas, Rail and Infrastructure industries. In these roles, he was able to develop his analytical, problem solving, operational improvement, strategic and leadership skills to successfully complete projects in complex operational environments, and to demanding delivery schedules.

He enjoys working with the full spectrum of stakeholders (including executive general management in the office, to multiple teams of operators onsite and offshore) to solve a variety of performance and operational problems. His Clients have included Rio Tinto, Inpex, Chevron and Fortress Group over multiple projects around the world.

Many of these projects Luke has completed were on an intensive Fly-In-Fly-Out basis. His project work has taken him to different parts of Australia, the United States, Singapore and Malaysia and Luke appreciates the intricacies required when working with different cultures to solve problems with clients, influence change, and gain the best results.
Outside of the office, Luke has undertaken multiple leadership, volunteer and entrepreneurial roles with Young Engineers Australia, The Ronald McDonald House and personal start-up ventures respectively.

Having recently completed an MBA from Melbourne Business School and exchange program at ESADE Business & Law School in Spain, Luke is keen to combine his technical engineering, project management and leadership skills, with the additional problem solving and business skills acquired.

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