Global

Details

  • Industry: Energy & Natural Resources
  • Type: Business and industry issue, Publication series
  • Date: 8/1/2013

Feasibility studies: digging deeper 

Feasibility studies
Today’s complex studies demand diverse skills, to address geological, financial, operational, legal, regulatory and logistical issues.

A traditional feasibility study determines the volume, nature and quality of the mineral, the best way to extract, and the appropriate equipment needed. With fierce competition for every type of resource, financiers now want to know how owners can attract and retain labor and talent, source and pay for equipment, access energy, water and transport.


In addition to using geologists, mining engineers, metallurgists and construction specialists, project leaders must also understand finance and debt structuring, commerce, logistics, laws, and the political environment. Regulatory approval is critical, and many high-profile projects stall due to delayed or denied permits, costing hundreds of millions of dollars in idle resources.


In tight financial times, infrastructure cannot be bought and discarded, so feasibility studies should consider post-construction uses, such as wider internal availability, sale and lease-back.


Thinking smarter not bigger

With ore grades declining worldwide, more resources are required to achieve the same output, pushing up the cost of crushing and transport. Techniques such as CRC ORE’s Grade Engineering™ can reduce capital costs, by combining sophisticated analysis, specialist blasting techniques and rigorous operations management, to improve the average grade of material mined.


Going head-to-head with the competition

With a multidisciplinary network of specialists, KPMG member firms have the breadth of skills to address demanding feasibility studies. Our teams can show clients how their study matches up to the competition, to increase the chances of obtaining funding, resources and approvals.

 

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