The Mining Programme Management Office

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The Mining Programme Management Office

• Roger Emmott
• Atkins

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Strong growth in demand for raw materials is
expected to continue
Example iron ore
1950 1975 5 CAGR
1975 - 1995 0.8 CAGR
Break up of USSR
1970s Oil shocks
Golden Age
Source IISI. BHP Billiton. Atkins analysis
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Junior mining companies have continuedto invest

• The number of mining companies listed on the AIM
  has risen by 49 CAGR over the period 2002 2007

• Junior companies often have significant technical
  expertise and experience
• Frequently they do not have the necessary
  capability and capacity to implement complex
  projects

Sources LSE, PwC. Top 50 companies representing
over 80 of the AIM mining sector by market
capitalisation
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New sources of supply are emerging to complement
growth of existing sources
103
73
276
57
165
319
275
major iron ore Producers 2006 (Mt)
Source Institute of Materials, Minerals and
Mining Adjusted so that Fe is equivalent to
other countries
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New sources are increasingly locatedin remote
areas with limited infrastructure
No road or rail infrastructure capable of
transporting 25Mtpa of iron ore to the coast
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Infrastructure can account for over half the
capital cost of a mining project
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The right early decisions and appropriate
management ensure success and limit failure

• Failing to test underlying assumptions during the
  planning phase can have a disastrous effect once
  the project reaches the design and construction
  phases

Scoping Study
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The PMO is a resource which provides expertsto
support the client in making decisions and
managing all aspects of their project
PMO (Project Management Office)
The PMO is

• The Mission Control a point of focus for
• Management of Information
• Assurance and Governance
• Standards and consistency of process
• Expertise and resource in Project Management

• Skills transfer continuous improvement
• A Critical Friend for project sponsors,
  directors managers

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A PMO can help make these projects a reality by
providing strong coordination
PMO
PMO Project Management Office
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The PMO brings structure and order to the tasks
at hand
Are we focussing management time on the key
Issues?
Do we have the right information to enable
effective and timely decision making?
Do we have visibility and control over the risks
and issues?
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A key aspect of the mining PMOs success is
multi-disciplinary working

• The PMO (Project Management Office) bridges the
  gap between Management Consultancy and
  Engineering Design and Construction Management

PMO (Project Management Office)
Management Consultancy
Engineering Design/ Construction management

• The PMO supports the client by
• Providing visibility and control - enabling
  effective decisions
• Doing the right things - prioritisation and
  contingency
• Doing things right - project discipline

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Case Studies 1 Listed junior iron ore miner

• Atkins ran a PMO supporting a USD2bn project to
  extract iron copper and gold from deposits

Pre-feasibility Study
Feasibility Study
Scoping Study
Design EPCM
Pre-feasibility Study
Feasibility Study
Design EPCM
Construction

• The client was a small exploration company
  without the resources to manage such a
  large-scale investment.
• PMO activities included
• Procurement of technical market studies
• Developing governance Project Management plan
• Conducting preliminary financial analysis
• Placing a planner onsite
• Providing key resources to represent the clients
  interests in technical areas

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Case Studies 2 Senegal

• Support was provided to a USD2bn investment in an
  iron ore mine and associated infrastructure in
  Senegal.

Pre-feasibility Study
Feasibility Study
Scoping Study
Design EPCM
Pre-feasibility Study
Design EPCM
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• If you are interested in the mining PMO then
  contact
• Roger Emmott roger.emmott_at_atkinsglobal.com
• Will Myles william.myles_at_atkinsglobal.com
• Mike Nevin mike.nevin_at_atkinsglobal.com
• Barry Patterson barry.patterson_at_atkinsglobal.com

Thank you! Questions