This case study describes risk assessment activities to support a large capital project in the mining sector, first to assist in selecting a technology option and later as an input to the board’s decision on granting formal project sanction and Notice to Proceed.
Broadleaf offers risk assessment and consultancy services for mining and minerals companies worldwide.
Our services apply to mines, minerals processing plants, smelters, production facilities and supporting infrastructure across the mining industry.
Strategic decision support for mining applications
Broadleaf supports executive teams when they make strategic decisions.
Broadleaf Capital International
We help teams develop an understanding of the most important uncertainties in their businesses and projects, and how they might maximise the associated value.
Broadleaf works with clients in specific areas such as framing project development options, due diligence for mergers and acquisitions, and programme risk management. We also help to enhance water management, energy generation, project execution and organisational restructuring.
Risk assessments of mines and processing plants
Broadleaf helps conduct risk assessments of mine and process plant operations. This extends to related activities such as cogeneration projects, mini-mills, site infrastructure, utilities and transport.
We work with management teams, and independent review teams, to identify and set priorities for project and programme risks. This helps to develop options for addressing the most important risks, as well as preparing business and project improvement plans.
Collaborating closely with site and project teams helps them to develop and prepare their own risk management processes and capabilities, and embed them into existing business and project plans.
We also conduct maturity evaluations to enhance risk management processes. This often extends to framework development for managing risks across an organisation and within projects and programmes.
Quantitative model development in mining investments
Broadleaf builds quantitative models of uncertainty and its effect on the capital and operating costs, development schedule and overall value of large projects and investments.
We structure our approach to identify the most important sources of uncertainty and construct models that reflect the way projects will be undertaken. We also quantify uncertainties in a way that avoids biases and develop outputs to help project directors and project managers make justifiable decisions.
These decisions might be associated with stopping or proceeding with a project or investment, choosing a development option, evaluating and selecting tenderers, setting cost and schedule budgets and contingencies, determining cash flow and funding requirements, or allocating sustaining capital.
Quantitative cost and schedule risk analyses can also help project teams allocate their resources to focus on minimising uncertainties during project concept, pre-feasibility and feasibility studies, as part of their front-end loading activities. The discipline of quantitative analysis can expose unspoken assumptions and misunderstandings related to the success of a project.
Value improvement and technical studies
Broadleaf conducts value improvement and value management studies, hazard and safety studies, and technology risk assessments.
These include risks associated with different technology choices and the installation and operation of critical equipment.
Independent peer reviews for mining projects
Broadleaf participates in independent peer reviews for major investment projects, with a particular focus on uncertainty, risk management and quantitative risk analyses.
Our assistance with undertaking analyses and evaluating risk assessment quality contributes to the decision support material presented for stage-gate approvals and project sanction, helping study teams to enhance the quality of their advice and reports.
We have also worked closely with companies’ peer review teams to improve the effectiveness of their activities and resource allocation.
Tailored risk management training for mining personnel
Broadleaf prepares and delivers bespoke training in business and project risk management, quantitative analysis and related specialist topics.
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Broadleaf Capital International
PO Box 607