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Value optimisation facilitation for greenfields
bauxite mine and alumina refinery
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Context / Scope of project
Following the financial crisis of 2008-09, the pre-crash feasibility-level project economics of this major greenfields project were no longer attractive. The joint owners requested a facilitated high-level value review to determine if there were sufficient improvement opportunities to justify investing in a more detailed analysis and ultimately proceeding to the next phase of the project.
Client achieved:
- High-level confirmation of potential for 15-20% value savings achievable through 15 major idea areas – principally from construction compression and capex and design improvements, with additional savings from opex reduction
- Review, confirmation and prioritisation of existing value ideas that had not been actioned in over 9 months
- Review and removal of key restrictions on roles and responsibilities of contractors and EPCM, thereby improving execution/construction cost and time materially, and unlocking significant value
- Clear roadmap for team to conduct detailed analysis and “idea proving” over next 2 months, for ultimate review by Technical Committee
- Idea owners assigned,
- Key priorities, timelines and phasing agreed
- Closer collaboration and coordination within investor group and clarity of go-forward position for project team
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What we did:
- Reviewed feasibility study and estimates
- Challenged high potential areas of plans for robustness, confidence and scale of opportunities
- Facilitated information sharing and consensus building between disparate owners and project team
- Facilitated deep dives into 3 high impact areas and detailed the scope and source of opportunities
- Synthesized week’s review into priortised go-forward plan with buy-in on clear responsibilities, deliverables and follow-up review dates.
- Provided client with tools and templates to assist in its detailed analysis phase
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