The sheer scale of many mining projects means that any problems or delays have an enormous financial impact. Owners need to oversee a complex program of interdependent projects, including process plants, transport infrastructure, port construction and direct, mine-related infrastructure. Mines are often in distant, inaccessible places, so transport infrastructure should be ready in advance, which may require environmental licenses.
With commodity prices falling, cost control is a high priority, calling for close monitoring of progress. Changes are inevitable, so it’s vital to quickly identify the impact on schedules and costs. Risks – such as delays in equipment, or currency fluctuations – should be continually monitored, to enable pre-prepared contingency plans, with budgetary provisions.
Fraud, bribery and corruption are a major concern in some regions, and all staff, contractors, agents and suppliers need to fully understand and adhere to appropriate standards.
Knowledge is power
Effective controls and tracking will give project managers, Boards and audit committees an “early warning” of significant issues such as project delays or budget overspend. Strong project reporting systems depend upon good communications and reliable, up-to-date data.
KPMG’s program and project management and assurance professionals have learned what works – and what does not – and can scrutinize clients’ internal processes and controls, and help create a culture of monitoring and reporting. Our clients gain a better understanding of project risks, to minimize delays and keep within budget.