Cost Overruns in the Mining Industry: Causes, Cases & How Better Cost Estimating Prevents Them

Описание: Cost overruns remain a persistent challenge in the mining industry, often driven by predictable factors rather than unexpected surprises. In this presentation, Costmine’s Director of Costing and Engineering, Gordon Sobering, PE and QP, examines the causes of overruns through real-world case studies and offers practical solutions for avoiding them.

From early-stage scope definition and missing data to unrealistic assumptions about labor and equipment productivity, the presentation highlights how upstream decisions impact downstream costs. Case studies from projects in East Asia, South America, and the United States illustrate how issues such as unstable ground conditions, long lead times, and workforce turnover affect both budgets and schedules.

Gordon also discusses best practices in cost estimation, including the use of benchmarking, first-principle modeling, and ongoing forecast validation. The presentation emphasizes the importance of independent review, flexible planning, and aligning engineering effort with project complexity.

For anyone involved in mine planning, project evaluation, or cost estimation, this talk offers clear insights into how cost overruns happen and what can be done to prevent them.