KPMG’s 9
th
Annual Mining Executive Forum 39
Asset life cycle
Level of activity
Time
Evaluate country
risks and market
opportunities
Search for
commercially
exploitable
resources
Removal of overburden
and waste, and plant
commissioning
Permit and license
applications
Commercial
exploitation begins
Expansion of
mine and plant
Commercial
exploitation ends
Closure of
mine and plant
Ongoing
rehabilitation
Bankable feasibility
study (BFS)
Prospecting rights
application
Pre-feasibility study
Competent
persons report
Preliminary
Economic
Assessment (PEA)
Construction of
infrastructure
and plant
Note: (1) Estimated duration of stage in the mining asset life cycle
(2) Reflects key activities only at each stage of the mining asset life cycle
Design and
implement
market
strategy
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
Source: KPMG International, 2012.
Asset life cycle
Level of activity
Time
Evaluate country
risks and market
opportunities
Search for
commercially
exploitable
resources
Removal of overburden
and waste, and plant
commissioning
Permit and license
applications
Commercial
exploitation begins
Expansion of
mine and plant
Commercial
exploitation ends
Closure of
mine and plant
Ongoing
rehabilitation
Bankable feasibility
study (BFS)
Prospecting rights
application
Pre-feasibility study
Competent
persons report
Preliminary
Economic
Assessment (PEA)
Construction of
infrastructure
and plant
Note: (1) Estimated duration of stage in the mining asset life cycle
(2) Reflects key activities only at each stage of the mining asset life cycle
Design and
implement
market
strategy
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
Source: KPMG International, 2012.
Asset life cycle
Level of activity
Time
Evaluate country
risks and market
opportunities
Search for
commercially
exploitable
resources
Removal of overburden
and waste, and plant
commissioning
Permit and license
applications
Commercial
exploitation begins
Expansion of
mine and plant
Commercial
exploitation ends
Closure of
mine and plant
Ongoing
rehabilitation
Bankable feasibility
study (BFS)
Prospecting rights
application
Pre-feasibility study
Competent
persons report
Preliminary
Economic
Assessment (PEA)
Construction of
infrastructure
and plant
Note: (1) Estimated duration of stage in the mining asset life cycle
(2) Reflects key activities only at each stage of the mining asset life cycle
Design and
implement
market
strategy
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
Source: KPMG International, 2012.
Asset life cycle
Level of activity
Time
Evaluate country
risks and market
opportunities
Search for
commercially
exploitable
resources
Removal of overburden
and waste, and plant
commissioning
Permit and license
applications
Commercial
exploitation begins
Expansion of
mine and plant
Commercial
exploitation ends
Closure of
mine and plant
Ongoing
rehabilitation
Bankable feasibility
study (BFS)
Prospecting rights
application
Pre-feasibility study
Competent
persons report
Preliminary
Economic
Assessment (PEA)
Construction of
infrastructure
and plant
Note: (1) Estimated duration of stage in the mining asset life cycle
(2) Reflects key activities only at each stage of the mining asset life cycle
Design and
implement
market
strategy
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
Source: KPMG International, 2012.
Mining asset life cycle – your challenges
Sustainability
Business
resilience
Community
investment
Energy, water
and carbon
Material
stewardship
Mine
Rehabilitation
Reporting
and tax
transparency
Compliance
Risk and
compliance
Statutory
audit
Enterprise
risk management
Internal assurance
Forensic
investigations
Tax compliance
Performance
Operations
excellence
Operating model
development
Cost and
tax optimization
Supply chain
transformation
Business
intelligence
Business
transformation
Projects
Project
development
Feasibilities
Financing
Tax
structuring
Project
execution
Transactions
Market
entry
Financing
and M&A
Tax
structuring
Due
diligence
Integration
Growth
Strategy
Strategic and
scenario planning
Portfolio
management
Scenario
planning
Strategy
development
People and
change
Tax strategy
and policy
Your mining asset life cycle – How KPMG can help
Asset life cycle
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
Sustainability
Business
resilience
Community
investment
Energy, water
and carbon
Material
stewardship
Mine
Rehabilitation
Reporting
and tax
transparency
Compliance
Risk and
compliance
Statutory
audit
Enterprise
risk management
Internal assurance
Forensic
investigations
Tax compliance
Performance
Operations
excellence
Operating model
development
Cost and
tax optimization
Supply chain
transformation
Business
intelligence
Business
transformation
Projects
Project
development
Feasibilities
Financing
Tax
structuring
Project
execution
Transactions
Market
entry
Financing
and M&A
Tax
structuring
Due
diligence
Integration
Growth
Strategy
Strategic and
scenario planning
Portfolio
management
Scenario
planning
Strategy
development
People and
change
Tax strategy
and policy
Your mining asset life cycle – How KPMG can help
Asset life cycle
Expansion
1-2 years
1
Exploration
2-10 years
1
Evaluation
3-6 years
1
Development
1-3 years
1
Production
10-50 years
1
Closure
1-10 years
1
KPMG’s mining growth solutions: How KPMG can help you
Mining Thought
Leadership