Providing insights and expertise in a cost-constrained and volatile marketplace.

Market context

Depressed commodity prices, low levels of demand and high inventories continue to characterise the mining industry. With a significant amount of cost reduction over the previous trading year, miners are now looking to drive operational improvements further up the value chain to help them to position for eventual market recovery.

The miners that come out the fittest and able to drive future growth will be those that are able to maintain capability and institutional knowledge, embed innovation so as to manage projects against demanding hurdle rates and continue to apply strong discipline to both capital and operating cost.

Miners have and will continue to carefully assess how best to source and apply capital or alternatively defer spend.

Meeting the challenges

In addition to its support for owner’s teams, Turner & Townsend’s mining team offers innovative services that meet the changing industry conditions. 

Programme set up

We support mining houses in setting upfront strategies, sizing and structuring owner’s teams, establishing the right procurement strategy and selecting the right contract and commercial models. Our expertise supports the applications of the appropriate tools and our benchmarking database enables lean costing from mine concept to out-turn.

Supply chain optimisation

The industry is engaged with its supply chain in collaborative efforts to reduce cost. We have significantly contributed to the debate around the most suitable models between owner and engineering houses in our series of webinars and articles.

With tough trading conditions the industry has nevertheless seen a surge in the number of contract and commercial disputes. How miners handle a dispute with a contractor in the current economy is critical – in order for both to get the best commercial outcome and to maintain the relationship for the future. We support these disputes with objective and factually based commercial advice.

As programmes near completion, we support effective commercial close out of contracts and once in operation, sustaining capital projects require the same controls support in the disciplines of cost, schedule and risk to drive out operational improvement.

Information technology

Tools and data will drive predictability in programme schedule and cost and access to asset design and build data will drive reductions in operating costs.

The recent adoption of building information modelling (BIM), a technological advancement by the infrastructure and real estate construction sectors, will have the same effect in mining and the miners that implement this technology will be the fastest to generate value.

Our services

Mining and metals contacts