Project Description
- Transition of the Blackwater Mine from external mining contractor to BMA owner-operator
Project Details
Client: BMA, Alliance of BHP Billiton and Mitsubishi
Location: 4717
The Challenge
BMA conceived a proposition that improved shareholder value would be obtained by transitioning from the existing external contractor mining operation to self-performance and determined that this was to be proven by way of Definition Phase Study. The business case was to be fully developed in the preparation of the study, including:
- Selection of the appropriate assets for most efficient mining of the resource;
- Design and capital estimation of the infrastructure, including new MIA, for the selected assets;
- Scheduling and capital estimation of the entire transition including all operations readiness activities;
- Financial modelling of the NPV of the transitioned operation.
The Outcome
- The business case revealed that the appropriate equipment delivering the best improvement to NPV was at the leading edge of mine fleets, including largest commercially available face shovel and rear dump trucks.
- The study was completed on time and progressed through the independent peer review process with minor improvement suggestions which were quickly resolved before its submission for BHP Billiton’s capital projects assessment.