Traditionally, mining companies have adopted a conventional approach to contracting, where they divide the project into several packages and award them to different contractors based on their expertise and experience. However, this approach has some drawbacks. To address these challenges, some mining companies have started exploring EPC contracts for their open-pit mining projects. EPC contracts assign the responsibility for engineering, procurement, and construction to a single contractor who delivers the project as a turnkey solution.
Therefore, choosing the right contract model for open-pit mining projects requires a robust due diligence process that can evaluate the trade-offs between conventional and EPC contracts. The due diligence process should consider the impact of each contract model on the project’s compliance with production, cost, timeline, and customer satisfaction objectives. The due diligence process should also take into account the specific requirements and expectations of each mining project.
Because of the lack of competition customers need to establish a strong relationship with their chosen EPC contractor based on trust, transparency, collaboration, and communication. By doing so, they can successfully transition from conventional to EPC contracts in open-pit mining and reap the benefits of this contractual model.
TacminMadini Australia understands the challenges and opportunities of open-pit mining projects. We offer innovative EPC solutions that are tailored to the specific needs of each client. Our EPC solutions can deliver value from the start by enhancing operational efficiency, safety, quality, and profitability. We can provide EPC solutions at any stage during the mining cycle or upon maturity of a contract.
