Investors and shareholders are overly aware of the risks associated with early-stage mining, yet solutions in the mining sector to ensure uninterrupted early payback are few and far between. More often than not, mining startups run into unexpected capital overruns giving cause to additional lending requirements.
Often we notice that first-time open-pit miners tend to put their cards on contract miners, only to later become very dissapointed in the results, regardless of the contractor's track record. Contract miners are not known for taking geology, mine design and planning risk, and unless the aforesaid was very well defined, and the contractor has a detailed design and plan, you may as well park up the trucks.
From many years of experience gained working as both contract miner and mining industry consultants, ultimately it comes down to responsibility, and with the startup of a new mine, there are simply too many unknowns for both contractor and owner.
At TacminMadini our expertise has for more than two decades solved challenges in open-pit mines and bulk earthwork infrastructure projects and time-and-again we have succeeded in delivering the objectives set out for the assignment. The lesson learned from every operational improvement assignment is that in nine-out-of ten instances, the project started incorrectly.
Investors and shareholders of start-up mining companies ought to be much more aware of the risks associated with startups and not necessarily accept that signing on a contractor has addressed the risks. Those miners that have ultimately conquered this painful experience, will confirm that it was a very expensive fee to pay.
If you are planning to start and or have just commenced the construction of a new open-pit mine and are concerned that the start-up is not going according to plan, do not hesitate to contact us.
Click here for more information on our EPC solutions for open-pit mines.
