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|Bateman, like other engineering contractors, carries out or participates in many studies of potential projects in the Minerals Industry. This paper aims to explain the contracting approach to feasibility studies as practiced by Bateman, particularly where this differs from a traditional mining company approach. A brief description is provided of the usual phases of a project and the types of estimate needed to proceed from one phase to the next. Possible organizational structures involving different forms of association between owner, contractor and consultants are then outlined. The bulk of the paper then demonstrates that the cost estimates prepared stem directly from the mining plan, metallurgical process design and engineering design philosophy. The steps to be followed in order to prepare a credible estimate which accurately reflects the design constraints are described. The importance and the methodology of carrying out value engineering and of preparing contingency estimates based on a thorough risk analysis exercise are then discussed. Financial modelling techniques are described briefly. The paper concludes with short summary case studies of two recent investigations of potential projects in Africa.|