Building a Strong Owner’s Team: The Key to Project Success in Mining

CIM Capital Projects Symposium 2024 Insights
By Varun Persaud

At the recent CIM Capital Projects Symposium in Toronto, industry professionals explored critical challenges in mining. One primary theme stood out: the importance of a firm Owner’s Team in driving project success. Panel discussions highlighted how a balanced team of internal experts, carefully selected consultants, and a comprehensive planning approach are vital to managing each project phase, from feasibility through execution. But what does that all mean in the real world?

Assembling the Right Mix of Expertise

A well-rounded Owner’s Team combines a blend of technical, operational, financial, and regulatory skills, setting up a strong foundation to manage the twists and turns of mining projects. Insights from the conference really drove home how essential this balance of expertise is to avoid setbacks and keep things on track.

The conference experts highlighted the power of deep technical and operational knowledge. These leaders are the team’s backbone, ensuring projects don’t just look good on paper but can adapt to real-world challenges as they arise. Olga Kovalik’s presentation emphasized that mining companies have a history of poor capital deployment and project delivery, underscoring the need for solid technical leadership to drive improvements in performance and investor credibility. Deshnee Naidoo added that our industry is at a generational moment, with extraordinary demand for the commodities we mine, creating an unprecedented opportunity to excel. With strong technical leads, projects are far more likely to stay on schedule and on budget, positioning companies to seize this opportunity.

Financial expertise was another key takeaway. With mining being such a capital-heavy industry, the right financial team can make a huge difference in controlling costs and managing the financial risks that come up. As shared in several real-world examples, having financial experts who understand the landscape can keep projects economically sound, even as market conditions shift.

The presenters also stressed the importance of regulatory specialists. Compliance issues can derail entire projects, but having people who know the rules inside and out—locally and internationally—can prevent many headaches and costs later. Joao Zonan highlighted Ero Copper’s strong growth trajectory in Brazil, including the successful construction of the Tucumã Project—a new copper mine and concentrator that will double Ero’s production by 2025. Zonan also reviewed key aspects related to developing a new 1.5 km shaft at Caraíba Operations and the early-stage Furnas IOCG Project, part of an earn-in agreement with Vale Base Metals. His discussion of best practices underscored how technical expertise and regulatory insight work hand in hand to ensure smooth, compliant project advancement.

And, of course, risk managers. Conference speakers stressed the value of having team members dedicated to spotting and addressing risks early. These professionals are the safety net, helping teams avoid surprises, from environmental challenges to equipment issues, through proactive risk planning and mitigation.

Comprehensive Planning: The Foundation of Project Success

Building a solid project foundation starts with careful planning, as highlighted by the conference speakers—it’s what keeps the Owner’s Team ready to handle any surprise that comes up with minimal hassle.

Setting clear milestones was a big talking point. When everyone knows the specific targets, they are accountable and help move the project forward. Conference examples showed how milestone-based planning gives the team structure while keeping things adaptable as the project unfolds.

Another valuable takeaway was the recommendation for integrated scheduling systems. With everything from engineering timelines to procurement activities under one system, it’s much easier to coordinate efforts and adjust when weather or equipment delays pop up.

Financial oversight and resource allocation also stood out as crucial. Experts emphasized the need for flexible budgeting that lets teams make real-time financial adjustments as project conditions change. This approach keeps the project financially stable, even with unexpected shifts.

Risk assessment was another key point. Conference insights reinforced the importance of ongoing risk evaluations and backup plans. This way, the Owner’s Team is better positioned to address challenges and minimize disruptions.

The strength of project planning and a close association with the Owner’s Team profoundly impact project ramp-up through commissioning. While mining company share performance is rarely influenced simply by a project being completed on time and on budget, significant swings—positive or negative—can occur depending on the speed and efficiency of ramp-up and the achievement of year-one production guidance.

JC Heslinga’s presentation on the Kamoa-Kakula Project underscored how a structured approach to Operational Readiness (OR) supports this critical transition. OR, more than just a preparatory phase, serves as a crucial bridge from construction to production, ensuring a smooth transition from engineering and design to steady-state operations. Heslinga highlighted how Specialized Work and Training (SWAT) teams, combining technical expertise with hands-on field experience, play a vital role in efficient project commissioning, helping to meet production targets and reinforce investor confidence.

Finally, proactive stakeholder engagement was repeatedly mentioned. Building trust through early, open communication with communities, regulatory agencies, and investors can smooth out the process and help avoid potential conflicts.

Achieving Balance in the Owner’s Team

A well-rounded Owner’s Team strikes the right balance across technical, financial, and operational skills, which is essential for project success. At the conference, speakers highlighted the importance of collaboration, shared goals, and fast decision-making. Mark Travers emphasized the need for strategic actions at the pre-FID stage to improve industry outcomes, while Ken Murray underscored the value of a holistic, competent team with experience across all aspects of project delivery. Murray noted that success hinges on a solid execution strategy, competent engineering, and effective engagement—not merely on minimizing costs, which should be viewed as an outcome rather than a goal. When each member’s expertise is fully leveraged, the team is better equipped to navigate mining’s unique challenges.

The CIM Capital Projects Symposium clarified that building a solid Owner’s Team is non-negotiable for any mining project. Regardless of your project size or if your company is a single-asset junior versus a serial project developer, each capital project delivered in the mining sector needs a broad set of skills and expertise to ensure that it is delivered on time and on budget.  By bringing together the right experts, engaging skilled consultants, and prioritizing comprehensive planning, mining companies can enhance outcomes and minimize risks.

If any of these topics resonate with your team’s challenges or goals, let’s connect to explore them further. From building a resilient Owner’s Team to leveraging data-driven insights, there’s a lot we can unpack together to drive successful project outcomes. Reach out to me directly, and let’s schedule a time to discuss how we can tackle these issues and capitalize on the latest industry insights. I look forward to connecting!