MINING EPCM
Master builders
There is no simple one-size-fits-all approach that works in the mining EPCM space , according to Dan Gleeson
Shepherding a mining project from prefeasibility through feasibility and detailed engineering into construction is a complex , multi-year undertaking , with the way mining companies approach this process depending on several factors , according to WSP ’ s Ryan Dutrisac and Adrian Chapman .
The top factor influencing the study-toexecution pathway is internal company procedure , according to Dutrisac , Vice President , Major Projects – Canada , and Chapman , Director of Capital Projects – Australia .
“ Major mining companies often have a very well-structured approach to progressing projects ,” Chapman told IM . “ Each step is laid out , detailing the deliverables required to advance the project through investment committee approval at each stage . At the mid-tier and junior level , however , there is often more flexibility , which is where other factors come into play .”
One of these is the type of commodity , which can significantly impact the speed at which a company can reach commercial production .
Dutrisac offered mid-tier gold mining as an example , noting that project timing is often crucial in this area of the mining industry . Companies might , therefore , consider skipping or “ blending together ” some of the traditional study phases if they already have a strong sense of the project ’ s capital cost and reserve estimates . “ They know the market will not wait years for them to finalise every stage ,” Dutrisac concluded , so they “ move quickly to construction to take advantage of commodity prices ”.
This is possible in gold mining and other established commodities because the available mining and processing options are typically already well defined .
Mining and processing options are much less standardised for minerals like lithium and rare earths , requiring a more detailed level of study to progress through the various implementation stages to construction . This is the case for the scoping study WSP recently undertook at Rare Earths Norway ’ s Fen project , which covered a wide range of inputs from mineral resource estimate and conceptual mine design to mine waste disposal , environmental and social impacts , and risk and financial analysis .
On this latter point , project financing is another factor that can influence implementation . While companies able to self-finance projects have potentially greater control over their project development pathway , companies reliant on external investors must meet structured and defined reporting standards at each stage , such as NI 43-101 standards in Canada or JORC standards in Australia . Governments also impose stringent conditions on all mining projects ,
Tools like Nexus Flow , an integrated mine closure planning and management application developed by Stantec ’ s Digital Solutions team , in consultation with its mining experts , is making developing and managing mine closure plans more collaborative and efficient than in the past , according to Stantec ( photo is of the past-producing Holden Mine )
particularly around environmental and social impact and mine closure planning .
“ These should be integrated early into the study phase because the way you approach approvals and permitting can significantly impact engineering ,” Chapman said .
Early involvement is a developing trend within mining project implementation pathways , with early contractor involvement a notable example . “ Involving contractors and going through more detailed engineering work during the prefeasibility and feasibility stages can be hugely beneficial for ensuring constructability , providing firmer cost estimates and delivering a robust execution schedule ,” Chapman said .
Contractors may also bring local knowledge that might not otherwise be available to an international project team , noted Dutrisac , who recently worked on a project in the US where the contractors provided critical insight into local labour laws and practices that affected scheduling and costs .
“ Some companies hesitate to involve
40 International Mining | NOVEMBER / DECEMBER 2024