Initial feasibility and conceptual studies generally offer a cost accuracy of around +/- 30% to 40%. However, a well-funded and meticulously executed FEED can deliver a cost accuracy of +/- 10%. Despite the importance of FEED studies, they often lack the necessary attention, support, or funding.
Experience has shown that projects where the FEED stage was overlooked often require rescue within one year from startup. Furthermore, without a strategic plan and schedule critical to FEED, junior companies may end up over spending the budgeted project capital.
The absence of EPC models in open-pit mining means that processes applied during EPC for large process plants are often overlooked during mining. This is primarily due to a lack of expertise. As a result, the open-pit mining industry heavily depends on contractors for cost estimations and mine plans during the pre-mining stage. Business cases are frequently based on a high-level quotation of the contractors’ price and plan, with little consideration for benchmarking, alternative designs, or competitors.
At TacminMadini Australia, we are thorough in our approach to open-pit mining FEED contracts. We provide more than just a project cost estimate; our FEED includes a comprehensive project scope, trade-off valuations, complete project budget, total cost of ownership, implementation timeline, and initial risk assessment.
With our extensive experience in mining evaluation and operational improvement assignments, we have a proven track record of project value improvement. Our clients can expect to receive a detailed FEED study report outlining the project blueprint as part of TacminMadini Australia’s Front-end Engineering Design studies. Such a report significantly boosts investor confidence and often triggers the release of internal funding.
