Case study | Partners in Performance | Global Management Consultancy

Case Study

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Business challenge

Our client needed to remove redundancy, expand capacity and ensure an optimal contracting strategy to provide the lowest capital option.

Context

A major iron ore producer was expanding production at a brownfields operation from 10 to 20 mtpa.

They were concerned about the high capital cost of the expansion project, and also interested in determining the most effective contracting strategy (in a buyer's market) while still appropriately managing risk.

$0m

reduction in capital costs from $800m to $740m

$0m

additional potential capital cost savings available by adopting a minimum technical solution

Solution
  • Conduct a value improvement review of the entire project and reduce scope to achieve only core requirements
  • Evaluate the current contracting strategy and market conditions to recommend an optimal contract strategy
  • Identify opportunities to further reduce cost through the exploration of gain sharing and penalty assessment
  • Focus on contract terms to drive project performance management and ensure transparency regardless of contractual approach
LeftMining and MetalsLeftCapital Projects
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