Mining project decisions

Continuity between lifecycle project models and post-decision commercial control.

Case studies for mining companies

APPLICATION

CLIENT SPECIFIC REQUIREMENTS, ADDITIONAL REQUIREMENTS, DATA INPUTS AND RESULTS, DELIVERABLES, IMPLEMENTATION

This model was originally developed for one of the majors that employed contract mining methods on a mine in West Africa where the contract term was near complete and given the logistics and costs associated with re-establishment, it was decided to renegotiate the contract for the following five year term.

CLIENT SPECIFIC REQUIREMENTS


●  Shadow bid with zero profit margin cost breakdown and priced bill of quantities, using;

●  Existing equipment as well as new mining equipment


ADDITIONAL REQUIREMENTS


●  Capable production output using the contractors equipment employed at the time.

●  Using the Clients production schedule, determine the most suitable fleet required to carry out the mining operations.

●  Generate a new production schedule using the results of the model.

●  Assist with pricing the BOQ and drafting of the agreement for the new mining contract.

●  Assist with pit redesigns to optimise production.


DATA INPUTS AND RESULTS


●  Geological models, mine engineering and designs, production schedules, contract mining agreement and equipment employed by contractor.

●  Historical productions and KPI’s.

●  Results applied to renegotiate the mining contract.


DELIVERABLES


●  Priced BOQ with same structure as tender for ease of cost comparisons.

●  Unit rate price makeup / breakdown.

●  Cost breakdown split into capital (owning) and operating cost.

●  Unit rates resource makeup, resource analysis and utilisation.

●  Production (quantity forecasts).

●  Budget forecasts.


IMPLEMENTATION


●  Project lifecycle - 5 years

●  Tacmin assistance – first stage FEED and contract agreements

●  Implementation – by Client