Minerals and Metals Project Performance and Improvement Opportunities

High commodity prices have produced a boom in project expansions and growth projects. Unfortunately, some of the early results have been poor, with some projects suffering considerable cost growth, project delays and start-up problems. The cost growth experienced in some projects is well beyond just escalation, but suggests weaknesses in the development of feasibility studies. Independent project analysis (IPA) has developed a large database containing information on project outcomes in the minerals and metals sector, and has identified, through its front-end loading (FEL) index and team development index (TDI), some key leading indicators of project success and project problems. This paper highlights key areas of weakness in feasibility studies that have driven poor project results, and the best practices that have driven improved project results.