Company offers ethical and innovative solutions
Recovering commodity prices, renewed optimism in the mining sector and diversified ownership of Tier 1 mining companies are opening up opportunities for emerging and junior miners to enter the industry, says WorleyParsons RSA CEO, Denver Dreyer.
He says the biggest challenge that junior miners face is access to funding.
“Mining is emerging from a recession into a cautiously optimistic incline. Against this backdrop, investors are more likely to back reputable companies and projects in known orebodies.
“As the market starts turning on the back of Tier 1 projects and investors, Tier 2 and 3 miners will benefit from the upswing as market confidence returns. These companies will require solid feasibility studies to make sure their projects are bankable and attract the right level of investment.”
He says it’s all about getting the concept, pre-feasibility and feasibility studies right up front, backed by a reputable, experienced company. WorleyParsons RSA will partner with Tier 2 and 3 clients along the project journey, laying solid foundations at the start of the project to gain investor confidence and ensure success across the life of the project.
“If the work at study phase is not done correctly, the cost of changing at execution phase is high and could have serious consequences further along the life of the project,” says Dreyer.
“WorleyParsons RSA offers a range of solutions for junior miners. Tier 2 and 3 companies do not require the same solutions as Tier 1 companies.
“Together with our strategic advisory arm Advisian, we can offer junior miners fit-forpurpose, cost-effective solutions and tools to help them build a strong case to obtain investor funding.
Adds Dreyer: “Engineering is facing an onslaught of unstoppable trends, from artificial intelligence that automates many of the standard design processes, which in turn reduces the cost of design, to integrated digital modelling processes such as building information modelling that have also been proven to greatly reduce design costs.
“WorleyParsons is at the forefront of innovation in the engineering sector and has a range of tools that can help Tier 2 and 3 clients build a strong business case, from modelling tools to enable potential investors to visualise the projects, to tools such as the StepWise process that evaluates the viability of a project, identifies risks and optimisations in a low-cost, quick and effective way.
“Along with the challenge of access to funds at the start of the project, junior miners need their projects to release value and put runs on the board quickly. Our mine planners are experienced in sequencing and designing a mine to first access the parts of the orebody which can be quickly beneficiated to get cash on board, while simultaneously starting on mining the more complex parts for longer-term returns.”
There is a growing environmental consciousness among investors. These investors are increasingly aligning their portfolios with projects which reduce greenhouse gas emissions across their value chains.
“As a company that provides solutions to complex energy and resources problems, WorleyParsons is at the forefront of ‘clean’ technologies such as fluidised gas desulphurisation in power plants and other processes that reduce or eliminate certain types of emissions.
“Global investors are steering clear of projects that will damage the environment. WorleyParsons can help Tier 2 and 3 companies meet this challenge and create a more sustainable future by helping them adopt the right technologies to create cleaner power. We can partner with them to offer ethical, sustainable and clean solutions that will align with investors’ objectives so that they can get their projects off the ground.”
INVESTORS ARE MORE LIKELY TO BACK REPUTABLE COMPANIES AND PROJECTS IN KNOWN OREBODIES