Modern Mining May 2025

• Clear permitting pathways • Appropriate risk management structures The increased scrutiny from financial institutions means junior miners must produce more comprehensive feasibility studies, and at a faster rate than ever before. These studies must withstand rigorous scrutiny and due diligence processes that thoroughly assess technical, financial, social, and environmental aspects of projects. Buildability: from PowerPoint into reality Perhaps the most overlooked component is buildability—the owner’s team and a project’s ability to transition from technical studies to actual construction and operation. The mining landscape is littered with projects that appeared feasible on paper but proved challenging to build due to unforeseen complications. Buildability encompasses: • Construction logistics and timeline realism • Labour and contractor availability • True integrated design philosophies not only on the functional design, but how the design elements are integrated and interacts with other disciplines and functions • Infrastructure requirements particularly energy independence and water security • Operating complexity and operational readiness Recent industry analyses indicate that nearly 70% of major mining projects experience significant schedule delays and cost overruns, often due to buildability challenges that were not adequately addressed during feasibility studies and operational readiness planning. The integration challenge For junior mining companies, success increasingly depends on addressing all three elements simultaneously rather than sequentially. Projects must be designed from the outset with fundability, bankability, and buildability in mind. The most successful junior miners are those that integrate these three dimensions into their project planning from day one. They understand that optimisation decisions made during early studies will directly impact their ability to fund, finance, and ultimately build their projects. This integrated approach represents a significant shift from historical practices, where technical considerations often dominated early project development, with financial and construction considerations addressed later. Strategic implications for junior miners Forward-thinking junior mining companies are adopting several strategies to enhance their projects’ fundability, bankability, and buildability: • Engaging geology, mining, plant and processing

The success of mining projects hinges on three interconnected factors: fundability, bankability, and buildability.

Bankability takes fundability to the next level.

development life cycle. • Incorporating construction expertise into feasibility study teams where appropriate. • Developing more robust risk management frameworks. • Focusing on modular, phased development approaches that reduce initial capital requirements. • Building stronger relationships with potential strategic partners and financiers throughout the development process. Industry observers note that projects demonstrating strength across all three dimensions are increasingly commanding premium valuations in today’s capital markets. Conclusion As geopolitical uncertainty, resource nationalism, ESG requirements, and technical complexity continue to reshape the mining landscape, junior mining companies need to elevate their strategies and execution approach to project development. The ability to demonstrate fundability, bankability, and buildability has become the new standard for separating promising projects from those likely to stall in the development pipeline. For investors, lenders, and strategic partners, this triad provides a valuable framework for assessing project viability beyond traditional metrics like grade, size, and location. Junior miners that master the integration of these three elements will be best positioned to transform geological discoveries into operating mines in our increasingly competitive mining sector. n

engineers, permitting specialists as well as financial specialists earlier in the project

MAY 2025 | www.modernminingmagazine.co.za  MODERN MINING  7