Cost Containment through Effective Project Management
Historically, the mining industry has been highly focused on cost containment associated with the production and operations of ongoing mining activities. Today, as opportunities abound, proper attention is also required to manage costs and delivery time on the significant investment associated with capital projects. However, the cost to capture these assets has increased dramatically. According to Bloomberg, mining companies will invest $244 billion on capital project expansion from now through 2015. The successful execution of these expansion projects is critical to the survival and profitability of the Owner/Operating companies involved. With the current decline in commodity prices and the significant increase in cost of production, companies are recognizing the importance of efficiently executing projects and eliminating unnecessary spending.
These challenges have put a strain on the capabilities and talents of the Owner company’s internal groups responsible for planning, executing and managing the capital project portfolio. To successfully accomplish this challenge, Owner organizations must continue to improve their capital project delivery and decision processes. The application of Project Management “Best Practices” is an integral aspect of this improvement initiative.
This paper/presentation will demonstrate many of the proven Project Management tools and techniques that, when applied appropriately, have driven the proper venture decisions and addressed the runaway cost issues plaguing the mining capital project execution environment.