The study phases are structured to evaluate a proposed mining project to determine whether the project is economically viable. Typically, there are three types of feasibility study in mining namely, scoping, preliminary feasibility and detailed feasibility studies. Of these, the feasibility study provides the definitive technical, environmental, and commercial document for making an investment decision. The process of moving from one study level to the next is usually determined by a process known as stage-gating which typically requires executive sign-off.
A mining project will be more successful when guided by targeting the highest standards in technical, safety, environmental issues, and by taking corporate social responsibility. By sharing these core values with the communities of interest, the possibility of these associated risks to the project is usually avoided. Generally the pre-implementation phase evaluations of the study stages of a mining project are essential to risk reduction and project optimization.
Major components of project evaluation that will be covered include but are not limited to the determination of the mineral resource and a mine reserve, establishment of a mining method based on measured and indicated reserves, confirmation of a suitable mineral processing flow diagram, performance of a market analysis and determination of infrastructure needs and utilities' support requirements.
Finally, the program will include quantification of the environmental and social impacts and potential mitigation measures, environmental and permitting requirements, health, safety and training aspects. These are best achieved by an assessment of sustainability and social acceptance programs, operations plan, transport and logistics, project schedule and execution plan, estimation of the cost of delivery of the project.
The Feasibility Study includes revenue forecasting, risk assessment and opportunities, marketing assessment, and economic analysis to determine if the project meets the Owner's objectives. Other components include valued engineering trade-off studies, aspects of procurement including EPCM and site specific risks. These include country, permitting, social, environmental, labour availability, weather, competition, geotechnical, geological, transportation, market, infrastructure availability, capital costs, operating costs and currency exchange rate risks.
At the end of the programme, participants will be able to:-
- Identify what is required for a feasibility study in terms of respective inputs and outputs
- Understand how projects are evaluated
- Evaluate and interpret various feasibility studies for sound decision making
- Identify factors that lead into cost, schedule overruns and factors that work against producing a reliable study
- Understand estimates versus reality
- Demonstrate reliability of cost estimates, cash flow valuation methods applicable to each stage of the mining life cycle
- Analyze case studies with feasibility aspects
The course is designed for mining engineers, project managers, qualified persons (QPs) regulators, auditors, geologists, and consultants, financial analysts, and environmental engineers, consulting firms, investment bankers, institutional investors and government officials.