The Project Lifecycle and the Requirements for Successful Implementation in Mining and Beneficiation Stuart Hattingh, Pr.Eng Section Head : Refining and Hydrometallurgy TWP Projects, South Africa THE BASIL READ GROUP Projects
TWP Projects Global operator in projects execution Mining, Minerals and Energy industries, Utilities and Infrastructure 30 Years experience
TWP Mining Division GEOLOGY RESOURCE EST MINING ENG MINE DESIGN & SIM GEOTECH & ROCK ENG MINE ECON & VAL Mining Engineering Geology Resource Estimation Mine Design and 3D Modeling Geotech and Rock Engineering Mine Economics and Valuation
TWP Process Division Complex Hydrometallurgical Processing Mineral Processing Plants Chemical Process Plants Utilities and Infrastructure Water Purification
Introduction The greatest waste in business is doing the wrong thing well - Henry Ford
Objectives Investor Expectations in Mining Projects Clarify Project Lifecycle Reporting codes explained
Mining Project Risks Mineral Reserves Grade Variability Accessibility Mining Licences and Concessions Amenability to Processing and Recovery Technology risk Country risk/ Political Economic Climate 7
Mining Project Risks Currency Risk Commodity Price Risk Operational risk Infrastructure availability and condition Transport & Logistics Power Water 8
Investors Requirements High Risk Capital Exploration Information must : Satisfy good governance requirements, Mitigate risk; and Comply with recognised accounting practices Globalisation offers increased financing options Require internationally accepted reporting standards 9
Investors Questions What s your Plan and is it robust? Is there anything there? Can you get it out of the ground? Can you process it? Can you move it? Can you sell it?
Investors Questions Can you do all this: Optimally? Economically? Legally? Continuously? Consistently? Safely, Responsibly and Sustainably? Can you show an attractive ROI? 11
Project Definition Standards Many Guidelines Common Purpose & Project Language Defining projects from Concept to Implementation with respect to Project Maturity and Quality
Mining Project Stages CONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION
Mining Project Stages Phase CONCEPT PRE-FEASIBILITY FEASIBILITY Objective ELIMINATE SELECT REFINE Accuracy ±50% ±25% ±10% Engineering Effort ±5% ±15% ±40%
Cost and Ability to Change Ref: AAC
Mineral Results Reporting codes Provide Minimum standard, Recommendations Guidelines Based on principals of: Transparency (clear and unambiguous) Materiality (relevant and reasonable) Competence (qualified professional)
Mineral Results Reporting codes JORC (Australia) SAMREC (South Africa) SME (USA) NI 43-101(Canada) US SEC Industry Guide 7 (USA)
Mineral Resources vs Mineral Reserves Source: SAMCODE 2009
Competent Persons Report Only person who can decide on level of ore body estimation Also called Qualified Person e.g. Canada Decision depends on jurisdiction
Competent Person Requirements Broad requirements (vary between codes): 5 Years Experience Engineer or Geoscientist Competence Can seek Advice Can be Team effort
Recommended Process Phase CONCEPT PRE-FEASIBILITY FEASIBILITY Resource Status INDICATED AND INFERRED MEASURED, INDICATED & INFERRED INDICATED AND MEASURED Reserve Status CANNOT BE CLASSIFIED PROVEN AND PROBABLE PROVEN AND PROBABLE
Risk of getting it wrong Decisions made on inappropriate basis Investment made with no returns Process Plant Design Under-designed Inappropriate
Conclusion Successful Process Plant Design depends on: Clear design criteria supported by clear Resource/Reserve Definition Many examples in industry of failures There are guidelines should be used effectively TWP can offer the full Value Chain in the lifecycle.
Conclusion All geologists are optimists, all metallurgists are pessimists - John Raulerson Jnr
Conclusion
References and Further reading All relevant Codes, most are available on the web Vaughan & Felderhof, International Mineral Resource and Mineral Reserve Classification and Reporting Systems, 2002; Pincock, Allen and Holt, Minimum Engineering Study Requirements Update,, Issue 95 Mar 2009