Communicating the business case for closure

Our recent networking event in Perth was a great success, with David Mitchell (PPM), Kirsty Beckett (Fortescue) and Stephanie Raiseborough (Mineral Resources) sharing their insights and experiences on communicating the business case for closure.

Discussions ranged from securing funds from senior managers for progressive closure execution, to setting the right KPIs in operations, and the role Artificial Intelligence (AI) could have in changing our approach to optimising mine plans and closure. There was lively conversation across the room including how to plan for net zero carbon closure and using conveyors powered by renewable energy to backfill pits.  

On the subject of KPIs, panellists and participants alike highlighted the potential for well-intentioned KPIs to result in worse closure outcomes. The panel’s advice was to monitor KPIs to identify those that are leading to perverse outcomes and understand what can lead to quality outcomes (not just quantity). Tracking that material goes where you want it to go for closure was identified as one of the most useful KPIs.

We asked attendees what they saw as the key takeaways from the session and here are their responses:

“People are everything - do your homework”.   In developing a business case, speak to each group affected by a decision to execute progressive closure.  For example, mine planning, business planning, treasury and operations groups.  Find out what their concerns and KPIs are, and make sure the business case addresses these.  Make decision-makers aware of the consequences of not taking action. 

“Align the business case to the closure and life of asset plans” . The panel cited their experiences in receiving business cases that had not considered life of asset or closure plans.  For example, a proposal for progressively rehabilitating a creek line while mining was still occurring on either side of the creek and vehicles were regularly crossing the creek bed.  

“Don’t present the business case as a fait accompli”.  In other words, present the options and the consequences of those options to the senior decision-makers so that they can take an informed decision, rather than making the decision on their behalf.  As one panel member put it, “don’t make decisions above your pay grade!”

“Get progressive closure in the budget and optimise the use of surplus equipment”  If it’s not in the budget, it won’t get done.  To facilitate this process, ensure that the provision adequately reflects the cost of closure and appropriate time horizons for progressive closure have been recognised.  Where there is surplus equipment on site, work with tactical mine planners to utilise this equipment for progressive closure.  Make sure that they know what you want, and that what you are asking for aligns with the capabilities of on-site operations.

“The potential use of AI was thought provoking” commented one participant.  “There is a big disconnect between the way we work now and AI technology.  We will need to build data literacy and digital tool dexterity to enable us to understand what AI is and how we use it.” 

Thank you to our panellists and to WSP for hosting the event.