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12/16/15

Capex in mining, 2012 to 2015

Here's a chart I stuck together from data in the Ernst & Young PDF report I read this morning entitled "Opportunities to enhance capital productivity (Mining and metals megaprojects)" (ty reader R for the forward):


For the record, the sources for these data are 1) Ernst & Young analysis, 2) the Engineering and Mining Journal’s annual survey of mining investment, 3) the Deutsche Bank report “Riding the rising tide of global growth” of  February 2014.

And here are two other datapoints, as quoted from the report:
  • 69% of surveyed projects were facing cost overruns with an average cost overrun of 62% above initial estimate (where cost data was available).
  • 50% of projects were reporting schedule delays even after remedial acceleration initiatives had been applied.

Want more evidence that mining company management executives are among the most overrated in the world? Grist for your mill.