 |
 |
| Latin American iron ore producer
|
Context / Scope of project
A Latin American iron ore producer was completing Basic Engineering for a greenfield iron ore mine. They asked PIP to assist them to improve the NPV of their project using PIP's ROCX methodology which had been successful with other Latin American mine projects.
Client achieved:
- 80% increase in NPV, a 49% increase in NPV / ton, and an 11% reduction in Capital Intensity
- A $734 million improvement in NPV from right-sizing the operation and collapsing a two-phase rollout into a single phase
- A $209 million gain in NPV from reducing the development timeline to advance first production by 4 months
- A $156 million gain in NPV from six CAPEX and OPEX reducing ideas that were generated, reviewed and prioritised for implementation
- Shifting focus onto NPV from pure CAPEX reduction and balancing of CAPEX, OPEX and time-to-market trade-offs
- Visibility of the critical path for the project
|
Summary of identified NPV improvements
|
|
|
|
|
|
What we did:
- Ran structured Idea Generating Sessions with the client and their engineering firm to create a list of 35 potential ideas for CAPEX, OPEX, timeline reduction and right sizing
- Partnered with Area Managers to analyse NPV benefits and risks of most attractive ideas after initial Value-Ease filtering; completed documentation and risk assessment to prepare for ROCX reviews
- Prioritised, valued and verified all ideas to a sufficient level of completion for presentation to the Steering Committee for a go / no-go decision
• Developed metric-based implementation timeline to identify critical path and perform critical path reduction exercise.
|
|
|
|
