• Case Studies

    Value Improvement Through Cost Optimisation

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A value improvement program was completed at one of Australia’s largest integrated mining projects, optimising cost and performance, whilst setting up a decision-ready review process

The Background

  • The organisation was looking at improving the overall net present value of its mining and related infrastructure project portfolio in Australia, in order to enhance its competitive position in a challenging environment
  • In addition, a review of the EPC procurement process was undertaken in order to facilitate cost savings whilst mitigating the overall risk profile for the projects

How the Siecap team helped

  • Overall design, co-ordination and facilitation of the value improvement program from an owner’s team perspective
  • Developed a comprehensive decision-ready review process through a risk management framework
  • Use of an extensive network of subject-matter experts in support of the identification and subsequent realisation of cost and performance optimisation opportunities

Results

  • Capital expenditure reduced by 17% across the project’s functional packages
  • Average life of mine operating costs reduced by 10% on a FOB basis
  • Facilitated the extraction of bulks from packages and ‘options and extras’ from mobile equipment
  • Improved the design of the project controls system under a comprehensive risk management framework

Case Studies