269 3.3. The Sustainable Value Enablers in MINSUR´s Investment Project Development Model Minsur is committed to a sustainable operation, integrating principles of circular economy, energy efficiency and operational excellence. Emphasis is placed on understanding the project drivers and risks in every development phase, a constant alignment between the business strategy and the project scope, including the sustainability and technological roadmaps, and getting the best talent to develop the project and deliver the benefits and value proposed to the shareholders. 3.3.1. Understanding the project value drivers The success of a mining project is not measured solely by the achievement of the project objectives; but how does it meet its value proposition for the business, once executed and put into operation. The creation of sustainable value in a mining project is driven by several variables that will be considered during the development phases. The value drivers indicated below are important to consider in the construction of the value proposal to ensure the robustness of the business case: • Metal price: the price of metals in a commodity market is not controlled by the company; however, it is necessary to have an adequate projection of these costs in the life horizon of the projects to manage uncertainty and assess investment risk. • Minable mineral resources: the proven existence of mineral resources and the feasibility of extracting them is key to justifying the investment and the financial success of the project. The exploration strategy for the conversion of resources to reserves and the search for new resources must be focused on gaining certainty throughout the project study phases, based on reliable standards. The mine's production plan is based on the geological model that defines the reserves and resources, and its reliability is essential to achieve benefits during the operation phase, reducing uncertainty and mitigating investment risk. • Metallurgical recovery: a robust model to predict the geometallurgy of the ore body based on robust research and testing plans must be carried out as necessary to provide reliability to the selected process flowsheet and production plans supporting the business case. Acceptable certainty and risk assessment for metallurgical recovery, contaminants, product grades and environmental impacts shall be performed. • Capital investment: an adequate estimate of the capital costs of the project is very important to assess the benefit of the investment opportunities. The capital costs estimate have a level of precision that improves as the project advances through the different development phases and gains greater definition. Engineering definition and project configuration are key to refining the estimate of the initial investment of a project. This must also consider an adequate contingency reserve and the necessary provisions to manage uncertainties, and internal and external risks to the project.
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