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| Capital optimisation - Longwall underground coal mine expansion |
Context / Scope of project
A longwall coal mining expansion project nearing completion of the detailed design phase received a revised estimate of $580m, more than 20% above the previous estimate. The owners asked PIP to help with identifying opportunities to reduce the cost while delivering the designed capacity.
In two weeks the client achieved:
- $46 million of prioritised savings opportunities around design and scope
- $48 million of additional opportunities requiring further analysis and discussion with operations personnel ideas
- A series of opportunities to be incorporated into the execution strategy that will deliver significant time and cost benefits (estimated to be in excess of $20m)
- Improved pipeline to manage and action improvement opportunities identified
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What we did:
- Analysed the spend breakdown to identify areas of priority for review
- Interviewed 15 key design personnel across the EPCM and owners team
- Ran a series of focused, structured idea generation workshops on specific areas of value
- Documented and prioritised 90 value improvement ideas
- Undertook a benchmarking exercise on EPCM costs to provide comparative data for the owners
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