Scoping Studies for Industrial Minerals
PEC Consulting provides scoping studies to assist clients in identifying optimal project development pathways. These studies are a series of evaluations designed to assess the technical and economic feasibility of potential industrial mineral or mining projects. Each stage assesses technical and economic factors, and the results determine whether to proceed to the next level of development.
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A successful mineral project begins with a solid foundation. PEC's comprehensive scoping studies provide the critical insights needed to assess feasibility, identify potential challenges, and develop a clear roadmap for your venture.
Determining Project Feasibility: A Phased Approach
To effectively assess the viability of a project, it’s often beneficial to break down the feasibility process into distinct phases: scoping studies, pre-feasibility studies, and feasibility studies. Each phase builds upon the previous one, providing increasing levels of detail and confidence in the project’s potential.
Scoping Study
As the name proposes, it is predominantly conceptual, and it takes into consideration various details regarding the geological exploration, potential viability of the mineral resource, and costs. The generation of accurate CapEx and OpEx values necessitates the development of conceptual-level technical documents. These documents serve as the foundation for cost estimation and encompass a variety of crucial elements, including the project Design Criteria, process flow diagrams, mechanical flow diagrams, related equipment lists with motor power requirements, plot plan, and elevations of the process areas.
Additionally, to accurately estimate the initial mine development costs, equipment needs, and operational expenses, a preliminary mining plan must be established. This plan leverages data obtained from geological and hydrological studies. A Market Analysis is necessary to determine a realistic production capacity. It will determine the size of the production plant within the area of influence, considering logistics and competition.
Market studies must be done by professionals with significant experience in the regional markets where the product is destined. In the case of industrial minerals, the cost of logistics is critical, thus a market study needs to consider logistic costs. A Conceptual Study for a Mining Project is generally recommended to find out the justification of the deposit, such as life-of-mine sustaining capital, mine life, and cash flow. Conceptual Studies determine whether to move forward to a more advanced level of study, thus the Pre-Feasibility Study.
Pre-Feasibility Study
The Preliminary Feasibility Study is a more comprehensive study that determines the technical and economic viability of a mineral development project. This phase refines the Geological Exploration Program, the laboratory testing will be carried out as specified in the Conceptual Study Deliverables which will determine probable reserves of raw materials, the site location and plant layouts are finalized, the technical aspects are refined, the CapEx is developed from budgetary vendor information; operating costs are developed from refined location and the plant’s design criteria; an economic and financial analysis is performed, environmental and social regulatory compliance systems are developed (draft applications for environmental permits are filed).
The Pre-Feasibility Study Report indicates if the project looks promising and has an attractive payback. The quarry and plant sites are now known, located in an area convenient in relation to the raw materials source and good logistics to the market. The Pre-Feasibility Study will point out areas that need to be further refined.
Feasibility Study
A Feasibility Study is a meticulous examination of a mining project that delves deep into its technical, economic, and environmental aspects. It serves as a comprehensive blueprint, providing essential details about the quantity and quality of mineral reserves, the infrastructure necessary to extract and process the ore, and the most efficient methods for doing so. This critical document is instrumental in attracting investors and securing the financial backing required to bring the project to fruition.
By the time the Feasibility Study is complete, a clear and robust picture of the project’s viability and potential profitability emerges. This in-depth analysis instills confidence in investors by demonstrating a thorough understanding of the project’s risks and rewards. Ultimately, the Feasibility Study significantly reduces uncertainty and positions the project for successful development.
Need help with your scoping study?
Contact PEC for expert guidance. Our team will collaborate with you to define project objectives, identify key stakeholders, and develop a clear roadmap to success.
PEC Consulting is your partner in successfully navigating the crucial scoping phase of your project. Our team of highly experienced managing consultants brings extensive experience in crafting in-depth project development studies. These experts are backed by a robust network of specialized senior consultants who collectively possess a deep understanding of every aspect of project development.
By combining the strengths of our dedicated team, we deliver scoping studies that leverage a wealth of knowledge and practical experience. This collaborative approach ensures that your project benefits from a comprehensive and insightful analysis at this critical juncture.
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