Avoiding cost blow-outs on mining capital projects through effective project stage gating
Delivering major capital projects on schedule and to budget is an increasingly difficult challenge for many mining companies.
In 2005, PwC's global review of major capital projects in the mining industry found that only 2.5 percent of projects could be defined as successful when assessed across the four critical dimensions of: scope, cost, schedule and business benefits.
However, several of Australia's coal mining companies have robust capital project management processes in place and some of these organisations have moved further to the forefront of world's best practice over the past few years as they look to manage larger project portfolios in a time of volatile market conditions.
This paper highlights Australian coal mining industry best practice in the following areas of major capital project management:
In 2005, PwC's global review of major capital projects in the mining industry found that only 2.5 percent of projects could be defined as successful when assessed across the four critical dimensions of: scope, cost, schedule and business benefits.
However, several of Australia's coal mining companies have robust capital project management processes in place and some of these organisations have moved further to the forefront of world's best practice over the past few years as they look to manage larger project portfolios in a time of volatile market conditions.
This paper highlights Australian coal mining industry best practice in the following areas of major capital project management:
- Phased project planning
- Project portfolio management
- Front end loading
- Contracting strategy and management
- Incorporating lessons learnt
Please contact
- Jock O'Callaghan
- EU&M Industry Leader
- Tel: +61 3 8603 6137
- Brian Gillespie
- Partner, Brisbane
- Tel: +61 7 3257 5656
