Article

Mining capital projects

CapEx investment cycle

We are delighted to announce the launch our latest global mining report - Mining Capital Projects: Are you ready for the next CapEx investment cycle?

Over the past decade, there have been significant swings in the mining sector’s CapEx investment, from the highs of 2012 to the lows of 2016. During this period, project deliveries were characterized by a series of cost and schedule overruns, which as commodity prices fell, hit margins and investor confidence. As the industry prepares for the next uptick of the CapEx cycle, what can mining companies do to deliver projects with confidence?

In this report we identify five key levers that will support safe delivery of capital projects in budget and on time, enabling effective risk management, fact-based decision making, and transparent realization of project benefits.

Five levers for capital project delivery confidenc

1. Apply the right owner delivery model and capabilities at the right time
Strike the right balance between owners, partners, and suppliers through a leveraged scalable owner model, focusing on contractual models that drive innovation and project performance.

2. Utilize data and digital technologies to optimize project execution and operational readiness
Move to data-centric capital project delivery by employing digital innovation and analytics to drive efficiencies, codifying, and leveraging your data assets.

3. Implement highly effective project controls to deliver confident decisions
Establish appropriate governance, processes, and systems that are supported by transparent, timely, and visible project information and reporting, to inform project decisions.

4. Have a customer mindset and invest in your license to operate
Develop the required capabilities to manage commitments and obligations throughout the project lifecycle; aligning decisions with stated commitments, and proactively tracking and transparently reporting on progress.

5. Balance the portfolio of investments and partner to win
Make decisions at a portfolio level that properly assess macro and project risks. Identify and manage relationships with strategic partners to unlock new opportunities, technologies, and share delivery exposure.

Key questions this report addresses:

  • How has mining companies’ focus shifted from OpEx to CapEx? (Page 1)
  • In what way have mining companies adapted from the previous CapEx cycle to improve delivery performance? (Page 2)
  • What are the five most important levers to improve both project success and scalability? (Pages 4-15)
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