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Results - Design NPV
optimisation – major coal mine/rail/port project
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Context / scope of project:
A new mining company wanted to build mine, port and rail
assets to develop extensive coal resources. The recent
feasibility study output came in at $13.8 billion which
is more than what they were hoping for. PIP was asked to
assist their team to identify significant NPV
improvements by focusing on direct capital cost ($9.8
billion) – targeting a range of $1-1.5 billion in capex
savings.
| Client achieved: |
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Capital focused improvements:
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Identified more than 200 capex reduction
ideas with the potential to reduce the capex by
$3.6 billion and increase the NPV by $5.2
billion
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$1.2 billion of capex reductions able to be
incorporated in the design within 6 weeks and
another $1.6 billion of further capex reductions
able to be incorporated in the design in the
next 6 months
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$0.9 billion of very hard ideas that require
more than 6 months of study
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Non-capital focused improvements:
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Identified more than 30 NPV improvement ideas
from levers other than capital reduction
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$1.2 billion in NPV improvement without any
additional capex and further $1.1 billion in
incremental NPV with ~$100 million in additional
capex. These ideas could be analysed and
approved within 6 weeks. Further $2.3 billion in
potential NPV with ~$700m in additional capex
which could be analysed and approved within 6
months
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Another $0.6 billion of NPV improvement to be
worked on post 6 months
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What we did:
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