17.5% capital cost reduction through scope and commercial adjustments for a brownfields iron ore mine

A major iron ore producer was expanding production at a brownfields operation from 10 to 20 mtpa.

They were concerned about the high capital cost of the expansion project, and also interested in determining the most effective contracting strategy (in a buyer's market) while still appropriately managing risk.

• Conduct a value improvement review of the entire project and reduce scope to achieve only core requirements
• Evaluate the current contracting strategy and market conditions to recommend an optimal contract strategy
• Identify opportunities to further reduce cost through the exploration of gain sharing and penalty assessment
• Focus on contract terms to drive project performance management and ensure transparency regardless of contractual approach