Mining project decisions

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

Mining project decision analysis

The art of decision making is pivotal to effective mining project management. During every stage of the project lifecycle, project managers face a huge array of choices. Furthermore, elements of decision analysis such as analysis of potential alternatives and assessment of project risk are critical during each stage of the project lifecycle.

Currently, there are no standard procedures that would sufficiently cover all the multiple-criteria requirements along with a breakdown into the preliminary and main assessment. However, at Tacmin the entire foundation required was created, such as definitions of requirements to an assessment method, selection and accurate description of the various assessment criteria and classification of the target system for typical mining project decision-making problems.

Based on the aforesaid studies, cost-utility analysis and the analytical-hierarchy process carried out on every mining assignment by Tacmin since 1996, were selected from a multiple attribute decision-making procedures and examined in detail. Merging these methods or connecting them with single-criteria decision-making methods (like the net present value method) may turn out to be reasonable and constitute an appropriate assessment.

Attributed to decades of experience gained by our multi-disciplinary expertise in all aspects of mining with the aid of Mining Project Management Software has enabled us to develop a well-established decision analysis process integrated into the overall project management process, vital for improving project performance. Aforesaid process has assisted numerous mining executives and boards from junior and major listed mining companies to take informed decision for their mines in Africa.

Mine project lifecycle modelling

Our project decision analysis can be provided at any stage of the project development and cover the needs for the right and effective implementation of the project up to completion and its delivery. However, our deep experience in running mining projects shows that decisions taken in the early stages of a project exert a significant influence over a project’s outcome. In the initial phase, before the project execution, we develop a thorough understanding of the project, outline a strategy, and assemble a strong team to ensure that every aspect of your project is planned out. Your project will meet all your objectives with regards to scope, quality, performance and safety, while adhering to your time and budget requirements.

Resource data base of complete range of mining equipment.

Mining cost estimation from first principals – owner or contract mining

Planning & scheduling powerful critical path network system.

Forecast quantities, values and resources linked to estimate & schedules

Cash Flow draws information from both the estimate & plan.

Continuity between estimating and post-tender commercial control

Over two decades our resource database has grown to include comprehensive operating cost breakdowns inclusive of owner or MARC maintenance of the complete range from smallest to top-end mining equipment (crucial for benchmarking)  

Whole of mine cost breakdowns in accordance with OEM lifecycle equipment operating costs, maintenance (owner or MARC) and capital cost, unit cost makeup or breakdowns, manpower, drill and blast, crushing and screening, load and haul, support

All plans and schedules are directly linked to the Client’s production schedules, followed by a detailed resource analysis we optimise equipment usage whereupon mining equipment is allocated to the plan to test the mineability of the plan.

During a process of comparing various production schedules and since forecast quantities, values and resources are linked to estimate & schedules, first principal benchmark mine cost comparisons, enables quick selection of the most compatible production schedules.

Lead times of mining equipment, whole of mine construction costs, comparisons, case studies, all built into one model from where cash flows, NPV’s and financials can be drawn for real-time decision making with a considerable breakdown in costs.   

Upon selection of the best or optimal project case, lifecycle models can be taken to construction and implementation with all the functionality required for project management – certifications, project controls, resource requirements, tracking, etc.


Well-established decision analysis process

For more than twenty-one years we performed real time decision making, risk assessments, valuations and comparisons during mining industry related trade-off studies, benchmarking, mine optimisation, operations improvement, equipment performance, mineability studies, capital and operating cost studies with the aid of Mining Project Management Software.

Case studies for mining companies

This model was originally developed for one of the majors with numerous mines across Africa that employed contract mining methods to test the viability of owner operator mining.

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.

This model was originally developed for one of the majors that employed contract mining methods on a mine in East Africa during a process of replacing contract mining with owner mining methods.

This model was originally developed for one of the majors in Australia that employed owner operator mining methods during a process of investigating the requirements, mining cost benefits, savings and improvements associated with autonomous mining methods.

This model was originally developed for one of the junior mining companies in South Africa who employed contract mining methods during an operations improvement assignment. This model is standard to all Tacmin operations improvement assignments and has been executed on numerous mining projects in a wide variety of commodities.

This model was originally developed for one of the major mining companies in East Africa on a brownfields project during expansions and increase in mine production.

This model was originally developed for one of the majors during owner vs contract mining trade-off studies.

This model is standard to Tacmin’s procurement process.

This model is standard to our open-pit contractor management assignments.

This model is standard to our operations improvement assignments for contract mining applications.

This model was originally developed for one of the majors in Africa that employed owner operator mining methods during a mining cost trade-off investigation between trucking of ore versus crushing, screening and conveying from multiple pits to the processing plant.

This model was originally developed for one of the majors during a capital recommendation study which compared Electric rope shovels with Hydraulic excavators in open-pit coal mining operations.