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By B Taylor

Although the underground mining environment is arguably safer now than at any time in history, as underground mining operations across the globe increase in-depth, magnitude, and complexity, protecting workers from harm becomes increasingly challenging. In deep, stressed, seismic mines the development face is one of the most hazardous work areas. The active face is usually the furthest extent of the underground workings, so ventilation can be difficult to maintain, exposing workers to high temperature and humidity while working on foot and doing manual labour. While mechanisation has made many tasks easier in modern times, the reality of underground mining is that development charge-up workers still spend long periods directly exposed hazards at the face. In 2019, Orica and Epiroc partnered to co-develop the world’s first fully mechanised development charging unit using fully wireless initiation, called Avatel™. Built on Epiroc’s M2 Boomer carrier platform, the system is designed to allow one person to charge a development face from the safety of a fully enclosed cabin, thereby reducing exposure to hazards at the face. The system was prototyped in Europe before entering commercial introduction in 2022. This paper reviews earlier attempts to mechanise underground charge-up and describes the development journey and engineering challenges of building a mechanised development charging machine.

Mar 29, 2023

By H Indirawati, R Ayres, A Nur Kasnanto, S Konopa

As a project moves through the mine life cycle, the quantity of data available increases and the understanding of the orebody matures. Incorporating new information quickly and efficiently in current 3D models, is essential for adding value across the life-of-mine value chain. At the Martabe Gold Mine, the resource development group manages 14 drill rigs on six resource projects, including three operating mines. The Martabe deposits are geologically complex and the volume of new information that becomes available each day is substantial. It is imperative that new geological and assay information is integrated into the 3D models as soon as possible, so that drill planning and targeting can be modified accordingly. Martabe uses Leapfrog<sup>®</sup> 3D software to update and interrogate the 3D models on a dynamic basis as data becomes available. This results in faster and more effective changes to drill planning and schedules. The impact of this is better drill productivity and cost savings due to optimal drill targeting, and availability of up-to-date models incorporating the most current data. CITATION: Konopa, S, Ayres, R, Nur Kasnanto, A and Indirawati, H, 2018. Optimised drill targeting using dynamic 3D modelling, Martabe Gold Mine, Indonesia, in Proceedings Complex Orebodies Conference 2018, pp 99–101 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By M Angus, S Konopa, A Virisheff, S Crispin

A positive mill reconciliation at a mine is a double-edged-sword. Much back slapping happens. The bank and the board can’t get enough until the downside becomes apparent. Over a prolonged period, there becomes an issue with market perception and the potential for shareholders to be misinformed regarding the potential value of the project. In addition, there are impacts on mine scheduling, waste allocation (or lack thereof), government expectations, and the potential for misguided external assumptions regarding the ‘unexpected’ results. The PT Agincourt Resources Martabe Gold Mine has shown a significant under-call, in the order of 20% total gold metal, between the Mineral Resource (MR) estimates and Grade Control (GC) estimates since production commenced in 2012. Recently, the under-call has been reduced by incorporating the use of grade control drilling in the MR grade estimates. Despite recent improvements in reconciliation, drilling in 2017 at both Purnama and Barani open pits shows that infill reverse circulation (RC) drill holes often produce significantly higher grades than those predicted in the MR block model. CITATION: Angus, M, Virisheff, A, Konopa, S and Crispin, S, 2018. Martabe Gold Mine, Indonesia: a positive solution for positive reconciliation, in Proceedings Complex Orebodies Conference 2018, pp 76–78 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By J Pearce, B Miles, V de San Miguel

Incorporating industry best practice waste rock management methods can be a relatively straight forward task when preparing management documentation, such as an acid and metalliferous drainage management plan (AMDMP). However, a key difficulty is the incorporation of industry best practice methods that are practical and non-compromising on their purpose from a scientific standpoint. The second key difficulty is the implementation of these practical methods as various operational groups/departments are typically relied upon to execute and take ownership of different tasks or procedures.One approach to overcoming these difficulties is to develop an AMD Operations Manual (AMDOM) that:•Incorporates, where practicable and without compromising scientific merit, existing processes that those groups/departments ultimately responsible for the execution of the management action are familiar with; and•Provides standalone, simplistic, and easy to follow procedures for site personnel. The purpose of the standalone operations manual is to ensure site personnel who are responsible for undertaking specific procedures, have clear, step-by-step instructions for an individual procedure, without requiring interpretation and understanding of the more comprehensive AMDMP.In adopting a best practice approach to waste rock management for their iron ore mine in Western Australia’s Pilbara region, Roy Hill developed an AMD Management System that is comprised of both an AMDMP and an AMDOM that are connected through adaptive management processes. The Roy Hill iron ore mine, which has a mine life of 18 years, will require the management of more than three billion tonnes of waste rock.CITATION:de San Miguel, V, Miles, B and Pearce, J, 2018. Practical waste rock management at the Roy Hill iron ore mine, Western Australia, in Proceedings Life-of-Mine 2018, pp 80–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

After a short presentation of the Division of Mining at the Royal Insti- tute of Technology, Stockholm, Sweden, the author presents some of-the fill research carried out at the Division. Literature surveys and testing methods and equipment are described. The use of flocculants' in hydraulic filling has been tested both in laboratory and in mines and the results are very promi- sing. Finally compressibility investi- gations and some finite element calcu- lations are presented.

Jan 1, 1973

The theme of my address to your Institute, indeed its name, is "The Mineral Industry - What Next?" Knowing that I was required to make four appearances, and not wanting to be too repetitious, I wrote a rather long speech of which I will deliver various sections at different places, with a common introduction. Specific areas I have addressed are "Exploration", "New sources of minerals and energy", and "Mining and metallurgy of the future".

Jan 1, 1984

By E R. Ramanaidou

The value of Raman spectroscopy to undertake mineral and chemical characterisation of iron ores was assessed by applying the technique to representative samples of banded iron-formations (BIF) and a BIF-derived, martite-goethite ore. The common iron oxides haematite, magnetite and goethite as well as gangue minerals such as quartz and carbonates all show distinct Raman spectra that enables these phases to be easily detected and mapped in situ for either samples prepared as polished blocks or unprepared material. Raman spectroscopy also offers the potential of in situ chemical characterisation. Shifts in the excitation bands of carbonate detected in BIF were related to the Mg content of Fe-carbonate and confirmed the first world-wide occurrence of a high Mg-bearing siderite (pistomesite) in BIF.The discriminatory power of Raman spectroscopy coupled with the potential of the technique to offer large-scale (volumetric) characterisation of iron ore will be of great value not only to the existing BID and CID ore types, but also to the newly emerging magnetite iron deposits (MID).

Jul 11, 2011

By C Pope, M Tannock

Mining exploration and development projects in Australia are being negatively affected by the highly complex regulatory and bureaucratic processes at all levels of government. These processes affect mining companies operating in Australia by impacting on timelines and the cost of developing a mining project. It is not uncommon for the granting of project approvals to take in excess of five years, meaning that mining companies struggle with productivity, efficiency, time frame and cost issues in respect to their projects in Australia. As the mining boom in Australia is moving from the investment to the production phase, it is now more important than ever to maintain a regulatory landscape that facilitates rather than discourages new investment.While one of our key arguments is that there is too much burdensome regulation and red tape in Australia, we are also strongly believe that regulatory intervention is necessary to ensure that appropriate checks and balances are in place to serve the public interest and manage environmental, health and safety, social and other development-related impacts that may arise from a mining project. However, the regulatory intervention in Australia has come to a point where it is excessive and starting to discourage valuable investment in mining projects for nominal return to the public. Excessive regulation or ‘red tape’ impedes productivity and competitiveness, deters investment and innovation and costs jobs, all of which ultimately impact on the growth of Australia and the standard of living of all Australians.This paper aims to examine and compare the federal, state and local regulations that govern mining projects in Australia. It will highlight how these regulations are unnecessarily complex, lengthy and duplicated and how they can be streamlined to reduce red tape. In doing so, the paper will evaluate the recommendations proposed by the Productivity Commission Report on Major Project Assessments released in 2013, which include the recommendation to move to a ‘one project, one assessment, one decision’ regulatory model.CITATION:Pope, C and Tannock, M, 2015. Project development and regulation red tape – a comparative analysis: does it need to be so complex?, in Proceedings Iron Ore 2015, pp 621–630 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By X Hu, Z Pokrajcic, R Embry, P C. Stewart, J Carpenter, E Jones

Whilst the value of Pit to Plant and Mine to Mill optimisation has been proven since the 1990s, sustaining the productivity and efficiency gains typically requires ongoing test work, blast trials, plant surveys, and model calibration services. In contrast, the input to digital twin Pit to Plant or Mine to Mill optimisation is tens to hundreds of millions of tonnes of standard mine operating data. This paper presents a series of digital twin case studies from across the mine value chain, including machine learning testing methodology, model accuracy statistics and the application of Shapley Additive Explanations (SHAP) for model interpretation. These case studies demonstrate how machine learning and data fusion ore tracking connects hundreds of millions of tonnes of downstream performance data to produce digital twin models (operating models that are continuously updated and integrated into the wider Mine to Mill/Pit to Plant ore tracking system). Digital twin modelling software has been used to add block model variables for dig-rate, crusher and mill throughput, recovery (tailings grade), lump yield, product grade and product quality, fines yield and fines in lump. Block-by-block predictions are added to the geological resource and grade control block models as new block model variables. These new block model variables are used across all mine planning time horizons from life-of-mine planning to daily schedules. In addition to the materials handling and geometallurgical prediction case studies, the paper also presents digital twin case studies for drill and blast simulation and plant set point optimisation. The case studies show how digital twin simulation enables drill and blast engineers to simulate the effect of different blast designs in different blast domains using the mines operating data. Plant set point optimisation applies mathematical optimisation algorithms to the machine learning model to provide live operational decision support to metallurgists and plant operators. The digital twin machine learning case studies demonstrate a digital and sustainable paradigm for Mine to Mill and Pit to Plant optimisation.

Jun 22, 2022

By S Mitra, T Singh, D O’Dea, T Honeyands

Permeability and air flow rate in the bed during iron ore sintering is crucial to controlling the sinter quality and productivity of a sinter plant due to its influence on the flame front speed. In the present work, the permeability of the bed during sintering was analysed by means of measured pressure drop and temperature at multiple points in the bed during sintering. Three different zones were categorised, ie humidified (green) bed, region of maximum resistance (high temperature zone) based on temperature, and sintered bed. Previous work has shown that the maximum pressure drop during sintering was due to several concurrent physico-chemical processes including dehumidification, calcination of fluxes, dehydroxylation of goethite, combustion of coke and melting of granules (>1200°C). To quantify the effect of the different process, sintering experiments were conducted in a milli-pot (diameter 53 mm, height 400 mm) with pressure and temperature measured at same location in bed. The milli-pot was fitted with four equidistant (80 mm apart) taps. Overall, five sections in the milli-pot were analysed for pressure drop at different times during sintering. It was found that in region of maximum resistance, coke combustion and flux calcination were highest contributors with ~35 per cent of the pressure drop when compared to other processes like de-humidification and goethite dehydroxylation which contributed to ~20 per cent and 25 per cent each respectively. The pressure drop contribution of the coke combustion region increased with increasing coke addition rate.

Nov 8, 2021

By S Munn

Today, it can be said that the majority of mines utilise communications equipment in one form or another. Either for communications between staff making their day-to-day operations more efficient, or for emergency communications, as well as linking computer based mine management systems, and providing remote control over complex mobile and fixed machinery. With the advances in technology now available, we are moving into the next generation of mine communications equipment, using digital communications in the underground mine environment. It is a proven fact that an efficient underground mine communications system can help maximise production, by providing major gains in areas such as equipment and manpower utilisation, staff and vehicle tracking, reaction times to break downs and emergencies. In this paper we will describe some of the facilities that are currently available, as well as what will soon be available to mining and tunnelling companies around the world.

Jan 1, 1999

By R J. Romañach

The theory of sampling (TOS) is now followed in the development of near infrared (NIR) spectroscopic methods for the pharmaceutical industry. TOS has been the guiding light for a two-step approach for spectroscopic composite sampling available for the development of real-time analytical methods for particulate-based industrial processes. The two-step spectroscopic sample composite has been used in the development of process analytical technology (PAT), an important regulatory initiative to improve the quality of pharmaceutical products. The two-step sample composite approach overcomes the low sample volume analysed by PAT methods; one of the key limitations to PAT implementation in the industrial production of particulate-based materials.PAT methods need to be validated demonstrating their accuracy, precision, specificity and robustness. TOS provides a deeper understanding of these validation studies which involve discrete particulate material. The validation of PAT methods is now being performed considering both sampling and analytical errors, while practically all previous method validations only addressed the total analytical error (TAE) of these methods. This has been a crucial impediment for the field of chemometrics as well.PAT is a key element of continuous manufacturing (CM) processes, which are considered an emerging technology capable of increasing the flexibility, agility and robustness of pharmaceutical processes while reducing their costs. The outflow of the continuous process is a 1D lot, and variographic analysis has been shown to discern process variation from sampling and analytical errors in pharmaceutical CM processes. Thus, variographic analysis is a process improvement tool with significant potential for improving CM processes. The possibilities for improving pharmaceutical manufacturing are enormous.CITATION:Romañach, R J, 2017. Theory of Sampling – from missing link to key enabler for process analytical technology, in Proceedings Eighth World Conference on Sampling and Blending , pp 63–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By B N. Noller, J C. Ng, S L. Bruce

Mining activities can result in the transfer of harmful elements, including arsenic and lead, into the environment. In Australia, one of the potential future uses of rehabilitated mine land is to stock grazing animals. Elemental uptake is dependent on bioavailable fraction for adsorption upon exposure. Bioavailability data are generally lacking in order to provide realistic health risk assessments relating to harmful elements from mine tailings in Australian conditions. Another key component of risk assessment is the ability to estimate a realistic exposure, or dose rate, of the tailings to the grazing cattle over a set period of time. Hence, we aimed to conduct grazing trials directly on rehabilitated tailings facilities in order to provide valuable in situ information on heavy metal dose rates and associated accumulation. For the laboratory-based evaluation of comparative bioavailability, groups of cattle were fed five days a week on a normal diet spiked with mine tailings or soluble pure salts of target elements (eg sodium arsenate, sodium arsenite and lead acetate) for about eight months. For the field validation, cattle were allowed to graze directly on rehabilitated tailings facilities over a similar length of time. Blood and a biopsy of the muscle and liver were periodically collected to monitor arsenic accumulation. At necropsy, blood, muscle, liver, kidney and other saleable tissues were measured for arsenic concentrations. Although this study was focused on arsenic, lead and other metals were also measured. Predictive models for arsenic and other metals have been established to calculate the maximum grazing duration without the risk of exceeding specific food safety guidelines. The outcome of this study is a predictive model for maximum beneficial use of certain rehabilitated tailings for cattle grazing where grazing activities do not impact on the integrity of the tailings dams.CITATION:Ng, J C, Noller, B N and Bruce, S L, 2014. A predictive model for beneficial use of rehabilitated mine tailings for grazing cattle after mine closure, in Proceedings Life-of-Mine 2014 , pp 563–572 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J Leem, S Mehrishal, J Kim, A Fereshtenejad, J Song

Rock mass discontinuity mapping plays a crucial role in developing a reliable Discrete Fracture Network (DFN), providing insights into the distribution of geometrical and mechanical properties of discontinuities. This enables an accurate assessment of geotechnical infrastructure and mining excavations. Data obtained through conventional mapping approaches are substantially limited by factors such as accessibility and subjectivity. Moreover, these conventional methods may pose inherent risks due to manual techniques, exposing practitioners to potential dangers. Recent digital developments in remote surveying techniques offer opportunities for safer and more reliable rock mass discontinuity surveys. These technologies allow extensive three-dimensional surveying and the production of high-resolution 3D surface models, applicable at any time. This paper presents a workflow for digital discontinuity mapping employing drone technology and photogrammetry. Additionally, the capabilities and challenges of applying artificial intelligence (AI) algorithms in the rock mass discontinuity characterisation process are discussed.

Sep 1, 2024

By J Herrmann, J Richards, B Hutchison

An extensive trial of laser-based survey and monitoring systems at Hillgrove Resources Kanmantoo Copper Mine in the Adelaide Hills, South Australia, has proved the capabilities of the system in monitoring rock movements on open pit walls. Initially, the trial involved deploying a Maptek I-Site 8820 laser scanner and the proof-of-concept Maptek Sentry software in the Nugent Pit to monitor ductile rock movements located up to 260 m away. The system was proven to be capable of monitoring various rock movements from 1.5 tonne rockfalls up to a 40 m high toppling wall failure. Data collected from smaller rockfalls was used to help build a database for Hillgrove’s rockfall management program. As part of the trial, the laser scanner was deployed to monitor a ramp movement event, as well as the toppling failure, adjacent to an IBIS slope stability radar. Both devices monitored the slump and the slowly developing toppling movements, with similar results. Although the radar was used as the successful ‘critical alarm’ device for the toppling failure, post-failure analysis showed the laser-based system to be capable of performing a similar role in the ductile rock regime; albeit over much shorter distances than the radar capability. A second laser scanner was deployed to monitor Kanmantoo’s Emily Pit in early December 2014, where it successfully provided critical alarm warnings for a block topple event. Sentry software, which takes advantage of Maptek I-Site 3D spatial imaging technology, was first released in November 2014 to meet industry demand for a cost effective, flexible system to detect movement. Sentry has now been re-launched as a fully transportable monitoring system. Deployed in a custom trailer, the system offers a power and communications module, cellular and Wi-Fi networking and a stable bollard for the I-Site laser scanner and Sentry software. This paper will present rock wall movement data from the Sentry trial and a subsequent two years of monitoring of the open pit walls at the Kanmantoo Copper Mine, at distances out to 750m. In addition, examples of remote geological mapping and small rockfall detection, using the laser scans, will be described. The Sentry system has proven to be beneficial for the continual improvement of slope monitoring and risk management at hard rock mines. CITATION:Hutchison, B, Richards, J, Richards, J and Herrmann, J, 2018. Mine rockfall and rock wall failures – proven digital laser-based approach for monitoring slopes at the Kanmantoo Copper Mine, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 463–472 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By B McCarthy

Mining has been typified of late as a boom and bust, cyclical industry operating against a steady decline in the size and quality of mineral deposits. Decreasing deposit grades and increasing costs of traditional mining techniques, all in the face of another commodity downturn, are forcing mining companies more than ever before to seek out new and innovative ways to operate. New technologies are emerging to model, control and track resources through the mining value chain, to move material about mines more efficiently, and to identify and separate ore from gangue early in the extraction process.Discovering such technologies however is only the first challenge for mining companies. Actually implementing technological change successfully has proved to be an even bigger challenge. Like for many industries, fulfilling the promised benefits for the expense and timing envisioned, has not been easy when innovative technologies are introduced.Citing the author’s insights and experiences in a number of emerging technologies, this paper explores barriers to implementing technological change in the mining context. Key elements of a change management framework, first developed for implementing mine management systems, are described to give mining executives insight into how they and their organisations can succeed through technology-driven change.CITATION:McCarthy, B, 2016. Successfully implementing technology-driven change in the mining environment, in Proceedings International Mine Management Conference, pp 89-104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By A Boucher, M Baudin, P Androszczuk, I Minniakhmetov, A Rigby, P Machado, M Wright, B Van Dijken

IGO Ltd’s (IGO’s) Nova Operation (Nova), which is 160 km east-north-east of the town of Norseman in Western Australia (WA), mines and processes nickel-copper-cobalt (Ni-Cu-Co) sulfide ore from the magmatic Nova-Bollinger Deposit (Nova-Bollinger), which is hosted by the Mesoproterozoic age high-grade metamorphic rocks of the Albany Fraser Orogen. Over its 56-month life-of-mine (LOM) operations to 31 December 2020, Nova has processed 5.63 Mt of ore grading 2.04 per cent Ni, 0.86 per cent Cu and 0.07 per cent Co from its underground mine. At the end of 2020, both the Nova-Bollinger JORC Code reportable Mineral Resource estimate (MRE) and Ore Reserve estimate (ORE) were >90 per cent classified in the highest JORC Code confidence categories of Measured Mineral Resource and Proved Ore Reserve respectively. The high JORC Code classification confidences assigned to the Nova-Bollinger MRE and ORE results from the 386 km of surface and underground diamond drill testing of the deposit to a nominal 12.5 by 12.5 m pierce point spacing in mineralisation. The close spaced high-quality drilling and bulk mining method employed at Nova has effectively removed the need for any grade control modelling outside of the MRE process. Importantly, having only the one fully drilled out deposit being mined and only the one process plant, Nova’s reconciliation process is in the fortunate situation of not being confounded by issues such as external ore sources and constant updates as new grade control information becomes available. IGO’s Nova reconciliation processes are focused on reconciliation ratios that quantify operational period differences between the MRE and ORE head grade and tonnage forecasts and the process plant head actuals. These metrics have been used to identify key reconciliation issues and have initiated several studies into the causes for specific reconciliation results, which are discussed in the paper. In late 2020, a period of sustained poor reconciliation results led to the recognition that increasing the understanding of risk between the MRE and ORE should be investigated. To assist with modelling stope level risk within the mine plan and subsequent reconciliation, an attempt was made to develop a formula to quantify ‘stope risk’ from MRE metrics such as sample spacing, kriging efficiency and so on

Mar 22, 2022

By M de Freitas Silva

One of the main steps during the decision-making process of long-term mine planning is the definition of the optimal sequence of extraction, which usually is synonymous with maximising the discounted cash flow of the project subjected to several constraints arising from aspects of technical, physical, and economic limits.Open pit mine production scheduling (OPMPS) comprises several intricacies related to its size and uncertainty of input parameters. Due to its complexity and prohibitive size, traditional mine planning usually relies on heuristic or metaheuristic methodologies which are able to provide good solutions in a reasonable amount of time. However, most of the uncertainty that surrounds the mining complex is ignored leading to non-realistic results.In this paper, a new heuristic approach is explored in order to solve a stochastic version of the OPMPS problem accounting for geological uncertainty in terms of metal content, multiple processing streams, and stockpiling option. The methodology involves generating an initial solution by solving a series of subproblems and this initial solution is improved using a network flow based algorithm.The algorithm was applied to a relatively large gold deposit with more than 119 thousands blocks. Results have shown that the methodology is promising to deal with large-size mine instances in reasonable time.CITATION:de Freitas Silva, M, 2014. Solving a large stochastic integer programming model for production scheduling at a gold mine with multiple processing streams and uncertain geology, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 389–396 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By G Hill, D Grant, M Tyler

Located approximately 570km NNW of Adelaide in South Australia, the Olympic Dam mine (OD) is the world’s fourth largest remaining copper and gold resource and the largest uranium resource. Discovered in 1975 and going into production in 1988, the operation consists of a fully vertically integrated underground mine, mineral processing plant, copper smelter and refinery, as well as associated infrastructure. BHP achieved production of 203,000 tonnes of copper cathode plus associated by-products in financial year 2016. The immense size and high-grades of the Olympic Dam resource offer a range of growth pathways, making closure timing estimation and planning a challenge. Current estimates put the OD resource at approximately 79 million tonnes of copper. Major factors influencing the closure timing estimation, as a result of the large resource and grade tonnage profile, include the mining method that may be used and the downstream processing method, ultimately influencing such things as the total disturbance area and the extent of infrastructure to be demolished at the end of mine life. In addition, factors such as the mining and processing method and production rate have a direct impact on larger rehabilitation items such as the total number of tailings cells required.CITATION:Grant, D, Tyler, M and Hill, G, 2018. Olympic Dam mine closure planning process, in Proceedings Life-of-Mine 2018, pp 43–45 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016