There is a well established history of capital cost overruns in the mining industry stretching back at least 50 years, mining analyst Christopher Haubrich told the Prospectors and Developers Association of Canada (PDAC) conference in Toronto in early March.
In fact, since 1965, capital cost overruns in the sector have averaged between 20% and 60%.
Even so, there has been little investigation into the cause of the problem, said Haubrich.
“Retrospectively looking at capital cost overruns has obviously not helped at all,” Haubrich noted. “We still have a problem, we have for at least 50 years as I’ve mentioned, and all reports suggest that we will continue having a problem.”
Haubrich, however, came to the PDAC armed with some new insight into the cause of capital cost overruns …
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