Economic Impact Of Startup Experiences Of Smelters

Do large-scale projects in mining and smelting start up and achieve expected capacity on schedule? In most cases not. Regardless of worldwide location, company know-how, or financial backing, unforeseen delays occur. A comprehensive CRA study for the World Bank shows that delays are the rule, not the exception, in most mining and smelting projects. When delays are not factored into analysis and planning, financial projections are, literally, not to be believed. Returns on investment will seldom achieve their targeted level because of startup delays. This paper reviews the results of our analysis of startup of new mines, mills, and smelters; provides a detailed discussion of why delays occur in the smelters and refineries; presents the cash flow implications of startup delays; and discusses preventive measures that should be taken to avoid financial shortfalls,