Abstract
Overview
Increasing complexity and timeline uncertainty in the permitting process, free, prior and informed consent (FPIC) obligations with Indigenous communities, and stringent environmental regulations have all resulted in increased risk in the development of resource projects.
This presentation will identify the financial drivers that establish the market value of a mining project and highlight real-world examples of permitting delays and their direct and indirect impacts on a project’s value. Key factors that result in increases in pre-production project and assessment costs, as well as schedule delays that result in deferred cash flow, will be examined.
A financial model will be shown that quantifies the potential impacts of these factors on a hypothetical project, with an accompanying sensitivity analysis of each of these factors. The individual and net impacts of issues will be quantified and discussed. Common permitting pitfalls will be identified along with how mitigating strategies can be developed to prevent permitting delays from derailing a resource development project.
Key Topics
Some of the key topics that will be discussed include:
- Financial drivers that determine project value, and the impact of the permitting process on these drivers
- Examples of mines in Canada and the US that have experienced significant cost escalation associated with permitting delays and the impact of those on project value
- Strategies for avoiding mine project permitting and environmental assessment delays
- Strategies for effective engagement and relationship building with Indigenous communities