The Challenge. A mining company in the Democratic Republic of Congo was approaching completion of the pre-feasibility phase of its joint venture development project. They identified the need for increased analytical rigor concerning external economic inputs, especially considering more capital-intensive options. The options that were being considered included four potential power options:

  • Diesel
  • Solar
  • Natural gas
  • Power grid

A framework for coherent assessment of the risks associated with the project was required, and options that would improve the overall project feasibility and support of phased project approval were evaluated. The business also indicated the need for assistance with scoping the feasibility phase (i.e., identifying and testing opportunities to improve process flows and find the appropriate balance between capital expense and operational expense).

How we helped. adopted the following approach to help the client to achieve its objectives:

  • Identified vital risks and assumptions
  • Assessed the current business case
  • Developed a model
  • Modelled the expected returns based on assumption sets
  • Developed a risk-management plan and opportunity list
  • Evaluation of options

Value delivered. The enhanced pre-feasibility phase business case review was presented to the client and subsequently considered by executives. As a result, the client announced that it would be pushing ahead with the feasibility study after positive results from its pre-feasibility study. As a result, the approved project will produce 100 tonnes of mining yield over a 10-year mine life.