A method to assess the likelihood and ma

In the mining industry the initial capital expenditure budgeted in the feasibility study is being overrun structurally. These capital expenditure overruns have long been recognised, yet no method is available predicting the probability a mining project will experience an overrun. This thesis introduces a method to assess the likelihood and magnitude of an initial capital expenditure overrun occurring for future gold mining projects. A database is populated with 65 gold mining projects that have experienced an overrun. For each project, 19 variables are described in the database that define the projects. The variables are analysed using individual variable analysis and multivariate regression analysis to investigate whether a correlation can be found between the variables and the initial capital expenditure overrun. Using the results of the individual variable analysis, a tool is developed to semi-quantify the risk a future gold mining project is exposed to regarding an initial capital expenditure overrun. The tool can visualise the risk a project is exposed to in a 2D risk matrix displaying the likelihood and magnitude of a possible overrun. For 16 of the 19 variables a possible correlation is found. The variables are grouped together, representing root causes with regards to the initial capital expenditure overrun.