JOHANNESBURG (miningweekly.com) – To attract investment, it has become necessary for organisations to complete projects under budget and well ahead of schedule, diversified engineering multinational DRA Global CEO Wray Carvelas says.

While investment appetite seems to be returning to the mining sector as investors look to unlock untapped potential across the global mining and minerals landscape, one of the biggest deterrents to investment is the inability of projects to deliver on investment promises.

“Empty promises are far more difficult to recover from in the long term. All too frequently, poor expectations are used to set project deadlines. These expectations are fuelled by inexperience,” Carvelas points out.

The inability to deliver on investment promises is often a result of a poorly defined project scope, a poorly understood mineral resource and the inability to deliver on project costs and schedule. With the overwhelming need to secure funding, many organisations make promises or assurances they simply cannot deliver on.

“Knowing which risks in mining projects are navigable and which are not determines the true feasibility of a project and having the aptitude to listen to expert partners can mean the difference between profit and loss,” he states.

It is about managing investor expectations, he emphasises. Understanding the project is as important as understanding the client and the expectations of a project developer also need to be managed.

“While exploring and elaborating on the idea of the project, excitement grows, as do often unrealistic expectations. The ability of the project leader to answer with an informed ‘no’ is arguably the most important skill within this team,” notes Carvelas.

DRA Global has worked with hundreds of teams and has learned that, by collaborating with other experts and organisations, a wealth of knowledge and the ability to formulate realistic project plans that deliver results are ensured.

“Having realistic expectations from the start and listening to honest feedback and advice is key to successful collaboration. This provides a strong foundation on which the project will be built, says Carvelas.

Agreeing on the end result allows project and client teams to build a realistic budget, timeline goals and drive collaboration from the onset. Leave the emotion behind, he advises.

A rational approach to new opportunities and challenges in execution will help to manage expectations from the onset. Expectations outlined and agreed on in the study phase can grow and diminish as projects move through implementation.

Meanwhile, the recent market pressures have highlighted the importance of potential efficiencies and digital technologies to accurately predict and optimise performance.
 
“We are seeing mining companies, worldwide, shift their strategies to adopt new business and operating models to include new technologies. This fundamental shift has the potential to transform safety outcomes, enhance performance and unlock new benefits in the sector.”

However, while technological advancements aid in determining and mitigating risk, hands-on experience remains crucial. The theory of navigating climates, leadership, equipment, systems and socioeconomic factors is very different to the practical application and there is no algorithm to guide these decisions.

“Each project needs to be judged on merit, evaluated by well-qualified and experienced people, and driven through collaboration,” concludes Carvelas.