Mining Project Delivery: What Do You Need To Consider?

The context

Cost overruns and delays have become the norm on mining projects with 80 per cent of mining projects completed late and over budget by an average of 43% (McKinsey).

Anecdotal evidence suggests that overrun percentages have worsened considerably, particularly for critical minerals and metals projects, due to project execution risks not being fully considered and mitigated, and in part due to the continuing impacts that geopolitical instability has had on global supply chains.

A lack of capital available to junior mining companies has also constrained sponsors in the development of their assets, forcing sponsors to focus on driving down costs rather than on achieving a robust risk allocation with their supply chain.