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We are a global management consultancy that delivers exceptional outcomes and sustainable change

Capital Project Planning

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Boost Mine Profitability with Early-Stage Capital Project Planning

September 9, 2024 | Strategy

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Companies with intentions to open new mines in Indonesia are now required to set up their own smelters and processing plants for the local processing of ore. Exports of unprocessed copper ore have now been banned (with the exception of a few companies finalising construction of their smelters).

Furthermore, navigating the evolving ESG requirements is a key to courting investors and securing permits from the government. Each stage of these interconnected processes must be managed holistically, with departments and stakeholders fully aligned.

Oftentimes, there is insufficient focus on how contractors and subcontractors are managed during capital project planning, the engineering designs needed, or optionality studies completed to detail “if, then” action plans, proactively.

A huge amount of upfront costs is spent on siloed jobs without fully mapping how they are interconnected to other parts of the operation. If these processes are not subjected to rigorous and routine examination, deviations have cascading negative effects on the investment as well as operational profit later.

As a project progresses and more funds are committed, there is increasing complexity in controlling those funds. Risks increase for every change made thereafter and a lack of capital project planning and effort early on can result in a negative ripple effect on a company’s operations and profitability down the line. Like preventative maintenance, the truth is that fixing something broken can be tenfold the cost and time shareholders expect.

Enhance Capital Project Planning

The MacLeamy Curve demonstrates how increased effort during early-stage planning can reduce the cost of design changes later in the project

Renoir Consulting will work with your teams to ensure operational readiness by ensuring alignment at every stage of your capital project.  Our comprehensive process and risk assessments are customised and managed with your teams to mitigate these issues – from early-stage planning, through design and commissioning, and in ongoing operations.

Achieve operational readiness for mines and mitigate early-stage risk.

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