Economic model of a fast-tracked mining project

‘Fast-tracking’ is achieved through the compression in time of, and overlapping of, various phases of a project. For any project, including a mining project, this is economically beneficial in that it brings revenue generation closer to the present, but it is a risky undertaking. The risks vary from scheduling and logistical problems to cost increases due to excessive compression of the duration of project phases. The risks could be better understood if a suitable model were available to determine the relative economic benefits of fast-track strategies in mining. A model for computing the net present value of a fast-tracked mining project has been developed and it is shown how it can be used to justify the decision to fast-track a project in terms of relative costs. Results from the model suggest that there are potential economic benefits in the use of modular mineral processing units that can be installed as the mine is being constructed, generate revenue and ultimately become part of the processing plant.