Technology and Innovation guidance note

Study definition guidance notes

Release 2

Centre Technology Centre

Effective date 17 July 2009 Status Draft

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Technology Centre Study definition guidance notes

Contents page
Executive summary........................................................................................................... 2
Introduction for project sponsors ................................................................................... 3
1 Document key characteristics................................................................................... 3
2 Project life cycle and development stage-gates ....................................................... 4
3 Links to other guidance notes and standards........................................................... 5
4 Study definition guidance notes document structure................................................ 6
5 Rio Tinto policies and standards............................................................................... 6
Study definition guidance level 1 .................................................................................... 7
1 Study work effort, duration and cost ......................................................................... 7
2 Key study activities ................................................................................................... 7
3 Deliverables .............................................................................................................. 7

Study definition guidance level 2 .................................................................................. 12

1 Strategy................................................................................................................... 13
2 Geology................................................................................................................... 15
3 Geotechnical ........................................................................................................... 24
4 Hydrology and hydrogeology .................................................................................. 27
5 Mining...................................................................................................................... 30
6 Process ................................................................................................................... 35
7 Infrastructure........................................................................................................... 40
8 Marketing ................................................................................................................ 47
9 Environment............................................................................................................ 49
10 Social and communities....................................................................................... 54
11 Permits and approvals......................................................................................... 59
12 Project execution planning .................................................................................. 62
13 Operational readiness ......................................................................................... 66
14 Cost estimation.................................................................................................... 71
15 Tax, legal, commercial......................................................................................... 75
16 Business analysis ................................................................................................ 78
17 Project risk........................................................................................................... 79

Glossary and acronyms ................................................................................................. 81

Index ................................................................................................................................. 83
Appendix 1 – References to key documents................................................................ 86

Appendix 2 – Milestone summary ................................................................................. 89

Revision history .............................................................................................................. 93

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Executive summary

The Rio Tinto Study definition guidance notes (SDG) are intended to provide project
sponsors, project study directors and managers and study teams with a set of guidance
notes covering the four Rio Tinto study stages, namely:

• Conceptual

• Order of magnitude (OoM)

• Prefeasibility (PFS)

• Feasibility (FS)

The objective of the document is to improve understanding of the differences between the
various study stages and to provide guidance on study contents, milestones and
deliverables.

The current document represents the first revision of the original 2002 Rio Tinto SDG and
in conjunction with other key documents, such as the Project evaluation guidance notes
(PEG) and the Guidance on Investment committee procedures, is used as a reference for
independent TEG/Business evaluation and development (BED) reviews of projects
submitted to the Rio Tinto Investment committee (IC).

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Introduction for project sponsors

The Rio Tinto SDG was originally produced in 2002. The September 2009 update
(Release 2), arose from the need to incorporate many aspects of Rio Tinto’s business
that were considered only as peripheral activities in 2002 but have now become
increasingly important, with the development of their own Rio Tinto standards. Release 2
also reflects changes in Rio Tinto’s business activities (such as the significantly increased
importance of smelting and refining activities since the Alcan acquisition) and the trend
towards increased scopes of work at the conceptual and OoM stages.

This update is based on comments received after extensive consultation with Rio Tinto
subject matter experts representing all of the key disciplines involved in project
development.

1 Document key characteristics

The Rio Tinto SDG notes are intended to:

• apply to all major Rio Tinto projects;

• provide a reference for IC submissions;

• collectively define the four Rio Tinto study stages;

• explain what should be considered at each study stage;

• show how studies progress through the different stages;

• require sensible interpretation for each particular study or project;

• be a high level summary document, but linked to other guidance notes, working
practices and standards; and

• describe the key study deliverables.

The SDG are not intended to be:

• a mandated set of requirements;

• a manual of how to run a study or project; or

• a study or project checklist.

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2 Project life cycle and development stage-gates

Rio Tinto has a prescribed set of project development stages which are broadly split into
the “evaluation” and “implementation” phases of work. The SDG deals with the four
evaluation stages, as shown in Figure 1.

Figure 1 Lifecycle for major projects

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3 Links to other guidance notes and standards

Major projects (those that exceed prescribed capital expenditure thresholds) must be
submitted to the Rio Tinto IC for approval, depending on the amount of capital involved,
at the end of the OoM, PFS and FS stages.

The Investment committee guidance note is the top-level document which describes the
IC process and the current referral limits, whereas the SDG is a key high level technical
document which sits above more detailed documents that describe area specific
standards and offer technical guidance. The relationship between the key documents
aimed at assisting study teams in developing IC proposals is shown in Figure 2. Links to
these key documents can be found in Appendix 1.

Projects that do not exceed the threshold for IC approval (‘minor projects’) are not
explicitly mentioned in the SDG but it is intended that the same principles of project
development apply to all Rio Tinto projects irrespective of scale.

Figure 2 Key Investment committee guidance documents for project evaluation

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4 Study definition guidance notes document structure

The SDG document is divided into two levels. Level 1 is a high level summary that
should be read by both project sponsors and project managers. Level 2 contains more
detail relevant to project managers and their team members, but project sponsors are
also encouraged to become familiar with the content.

Level 2 is divided into seventeen sections which are intended to group the major study
activities by “owner”. For example, the “process” section is “owned” by process
engineers and includes not only process engineering activities, but related topics, such as
“water efficiency”.

Many project activities are inter-related and this may be reflected in the document as
comments relevant to a particular discipline occurring in more than one section. Users
are encouraged to read all relevant comments irrespective of ownership and to use the
index provided to locate these comments.

5 Rio Tinto policies and standards

The SDG assumes that project proposals comply with all Rio Tinto corporate policies and
standards such as health, safety, environment, community and technical. Additionally,
individual business units may have specific requirements that projects need to ensure
that they comply with.

Health and safety has purposefully not been set out as a separate section in the SDG
because it is considered to be implicit in all activities and therefore can not be used to
distinguish study stages. Where specific health and safety issues exist for a particular
activity, reference may be made to reinforce the need for its consideration.

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Study definition guidance level 1

Level 1 of the SDG provides a quick reference of the major study activities, a summary of
what should be completed at the end of each study stage and a list of expected study
deliverables.

1 Study work effort, duration and cost

Most successful studies follow a similar development path; they start with an idea and
end with a robustly demonstrated business case. Although the development of a study
follows a logical sequence it is often difficult to know exactly when, what type and how
much work effort to expend throughout the various study stages.

The graphic in Table 1 has been developed to assist project sponsors, managers and
team members to understand the major work activities, their sequence, linkages and the
level of work effort required for each study stage. Although each study will be different,
the work effort summary can be used to understand where work effort may be greater or
less than the generic profile and to check that the effort is correct. Table 1 also depicts
the relative duration of each study stage. The absolute duration will vary from project to
project, according to its size and complexity, but increasing study duration and cost with
progression of the project from the conceptual through to the FS stage is a typical trend.
The stage-gating process should be used in a manner so that study costs are minimised
by clear study stage scope definition, exercising good study management practices and
only advancing those projects to through the next more costly stage if they are potentially
valuable and have an acceptable risk profile.

2 Key study activities

Key study activities listed in Table 2 describe what should be achieved during each study
stage. Although this summary is generic and will need to be adapted to individual
projects, the progression between study stages should be clear in all cases.

3 Deliverables
A list of key deliverables created by the end of each study stage is given in Table 3. This
list is intended to be a minimum set of deliverables and reflects what independent
reviewers will be looking for should the project be submitted to the IC.

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Table 1 Work effort summary for major study activities

Relative Duration

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Table 2 Key study objectives and activities

Conceptual Order of magnitude Prefeasibility Feasibility

Objectives • Determine if project • Determine if project warrants • Determine if project warrants • Determine if project should be
warrants further study further study and expenditure. further study and expenditure. implemented.
and expenditure.
Key study • Quick assessment of • Assessment of multiple • Assessment of a narrow range of • Detailed assessment of selected
activities project concept usually project options using options and selection of one project option.
with scant data on judgement and experience option. • Mine design, process flow sheet,
which to base financial usually with limited data from • Rigorous acquisition of key data. mass, energy and water balances
and engineering similar operating • Resource and reserve estimates finalised.
decisions. environments. completed and externally • Production schedules finalised.
• Identify strategic • Assess potential economic reportable. • Operating strategy and project
mine/production options for product volume, • Preferred mining, processing, execution plan finalised and
development sequence specification and prices. production, infrastructure and procedures developed.
and capacities. • Preliminary resource estimate capacity identified. • Approvals, permits and agreements
• Assess potential and characterisation. • Preliminary engineering designs in place, or nearing finalisation with
markets and distribution • Assess and evaluate range of developed indicating no known impediments.
channels. optimal mining, processing, infrastructure layouts, power and • Engineering design sufficiently
• Identify, evaluate and production, infrastructure water facilities. progressed to allow the scope to be
manage opportunities options and capacities. • Cost estimate for selected option frozen and signed-off by operations.
and fatal flaw threats • Preliminary assessment of developed from either single Project execution plan finalised.
relative to business environmental impacts, quotes, first principals or • Cost estimates finalised. Detailed
objectives. approval timelines, political, factoring. financial model available.
• Undertake legal due social and community • Detailed assessment of • Marketing analysis developed for
diligence as impacts. environmental and socio- strategy and sales forecasting.
appropriate. • Identify and manage high economic impacts and approvals • Detailed risk identification,
level risks. underway. evaluation and management.
• Identify and manage risks.

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Table 3 Deliverables

Conceptual Order of magnitude Prefeasibility Feasibility

Key study • Description of identified • Description of selected • Description of studied options • Description of selected project
findings project options. project options. and selected project option. option.
• Indicative cost and • Indicative cost of options. • Cost, capacity and • Cost, capacity and productivity
ranking of options. • Financial valuation of productivity benchmark benchmark comparisons to similar
• Financial valuation of options. comparisons to similar projects.
options. • Sensitivity analysis. projects. • Cost estimates to required
• Sensitivity analysis. • Risk analysis of options. • Cost estimates to required accuracy.
• Fatal flaw risk analysis. • Recommended actions. accuracy. • Market acceptability of product and
• Recommended actions. • Financial valuation of options. service and expected price.
• Sensitivity and scenario • Financial valuation of project.
analysis of options. • Sensitivity and scenario analysis.
• Risk analysis of options. • Project execution strategy including
• Recommended actions. contracting.
• Project risk analysis.
• Investment recommendation.
Next stage • Demonstrate pathway to • Demonstrate pathway to • Demonstrate pathway to • Demonstrate viability of project.
viable project. viable project. viable project. • Project implementation funding
• Study funding request • Study funding request • Study funding request request.
including detailed OoM, including detailed PFS, including detailed FS scope, • Identify quantifiable measures of
indicative PFS and FS indicative FS scope, schedule and budget. success.
scope, schedule, budget. schedule and budget.
Primary • Final conceptual study • Final OoM study report. • Final PFS study report. • Final FS study report.
documentation report.

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Conceptual Order of magnitude Prefeasibility Feasibility

Required • Financial model. • Financial model. • Financial model. • Financial model
Supporting • Risk assessment. • Preliminary execution • Preliminary project execution • Final project execution plan
documentation strategy. plan. • Detailed marketing strategy, sales
• IC proposal and/or funding • IC proposal and/or funding plans and expressions of interest
request. request. from customers
• Risk assessment. • Risk assessment. • Approved SEIA report
• IC proposal and/or funding request
• Preliminary closure plan
• Risk assessment
Approvals • Project sponsor. • Project sponsor. • Project sponsor. • Product group head
• Product group head. • Product group head. • Product group head • IC1
• IC 1. • IC1. • Rio Tinto Board
Reviews • Normally internal. • Internal. • Internal . • Internal.
• TEG/BED1. • TEG/BED1. • TEG/BED1.

1
Subject to Investment Committee referral thresholds

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Study definition guidance level 2

Study definition guidance level 2 provides more detailed guidance and is aimed at study
managers and study team members.

The level 2 guide is divided into seventeen sub-sections each covering a particular study
topic. A “milestone summary” is given as the first item in each sub-section and is
intended to provide a summary of those activities that are usually complete by the end of
each study stage.

The level 2 guide is purposefully generic and some sections may not be appropriate to a
particular project, or the suggested timing of activities or list of activities may not suit
particular conditions. Project managers and team members therefore need to interpret
the guidance notes and adapt them to their specific project. A useful means of doing this
is to construct a gap analysis of the project in question against the guidance notes.

A number of ‘themes’ are implicit in the SDG:

a) Even if it is not explicitly stated, it is assumed that the user is aware of and fully
complies with any Rio Tinto standards that apply in his or her area of responsibility.

b) While the guidance notes are split into discrete disciplinary areas, there are
considerable overlaps between disciplines when project studies are concerned (an
example would be the mutual interests of a geologist and geotechnical engineer and
hydrogeologist). Users should read beyond their own discipline to understand such
interactions.

c) The SDG are intended to provide support to users of the Project evaluation guidance
note (PEG). It is expected that users of these guidance notes will be familiar with and
will apply the concepts enshrined in PEG. For example, each assumption made in
the course of project evaluation should be a central estimate; neither overly optimistic
nor pessimistic.

d) The SDG are not a manual on how to perform studies. They should be read in
conjunction with other relevant guidance available from a number of Rio Tinto
sources (and particularly the “Major project development guidance note”). A brief list
of sources for additional guidance is contained in Appendix 1.

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1 Strategy
Conceptual Order of magnitude Prefeasibility Feasibility
1.1 Milestone summary Potential market(s), product(s) Mine/production development Optimal development sequence Confirm that development
and distribution channels are sequences are assessed and a and production capacity is sequence and production capacity
assessed. Possible narrow range of preferred identified. is optimal to achieve the business
mine/production development production options and capacities opportunity.
sequence and capacities are identified.
identified that provide a potential
business opportunity.
1.2 Strategic fit Preliminary assessment of the Detailed assessment of strategic Strategic fit confirmed with revised Where appropriate, provide details
strategic fit of the project with Rio fit. The underlying project value assumptions (eg value, scope, of future project stages and/or
Tinto and business unit objectives. drivers, threats and opportunities schedule, costs). An analysis spin-off projects.
Consider potential value, risk should be understood. Compare demonstrating key value drivers
profile, structure (eg JV partners), the project relative to other should be presented. Consider
options and synergies, size, type, investment opportunities (eg what optionality this project
complexity. value, capital, cash costs etc), presents and what further phases
potential synergies or competition (eg expansions) or spin-off
with internal (Rio Tinto Group) and projects should be initiated.
external projects, management
effort versus return.
1.3 Resources and Capability and capacity to Required internal and/or external Confirm that the required No significant work.
technology develop, implement and operate technologies and expertise resources can be secured to
the project is assessed. Consider assessed. Project implementation successfully implement and
familiarity with required and operational resources should operate the project. Consider
technologies and operational be identified. impacts on and synergies with
practices required versus existing operations or other
available expertise. projects under development (eg
impact of diverting technical
expertise).

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Conceptual Order of magnitude Prefeasibility Feasibility

1.4 Strategic Potential project development Project development sequences Development sequence defined. Strategic production planning
production sequences should be assessed should be assessed and a narrow Consider updated inputs at the option confirmed. Consider
with consideration of the mineral range of production end of the PFS (eg costs, reserve updated inputs at the end of the
planning deposit portfolio, capacity and options/capacities identified. estimates) and feedback into the FS (eg costs, reserve estimates)
logistics options and product Quantitative analysis should be strategic production planning and feedback into the strategic
volume and quality options. The optimised with respect to input analysis to confirm ranking of production planning analysis to
assessment should provide a constraints (eg mineral deposits, selected option. confirm ranking of selected option.
guide to the strategic direction and capacity and logistics, product Consider future development
development sequence, usually volume and quality). Resource options.
by ranking production options development sequences should
according to relative value. be identified and ranked (eg
Consider risks of each option. value, risk). Consider potential for
and impact of greenfield
exploration finds, brownfield
developments and acquisitions.
1.5 Marketing Review fit of proposed project Ensure alignment of project Ensure strategic alignment and Ensure project’s detailed
product and resource with global technical marketing strategy and optimisation of proposed project marketing strategy is in alignment
product and marketing strategies. product specifications with Group distribution networks with group with group level pricing, market
marketing, capabilities and level supply chain capabilities and development, customer and
strategic objectives and with initiatives. competitor objectives.
resource and reserve
optimisation.

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2 Geology
Conceptual Order of magnitude Prefeasibility Feasibility
2.1 Milestone summary Initial assessment of resource Preliminary resource estimate Resource estimates rigorously Confirmation, validation and
potential based on all data and identification of potential developed and usually reported refinement of resource models
sources including exploration and deposit extensions. Preliminary externally. Mineralised and waste and rock characterisation.
historical records; limited direct characterisation of mineralised rocks are fully characterised to
information. and waste rocks. support all other study activities.
2.2 Survey and Project location, site topography, Preliminary topographic data (eg Accurate topographic data Site topographical surveys
topography geological maps etc generally aerial survey or satellite DTM) acquired with full quality control developed to a level of detail to
derived from existing published captured and its accuracy checks on grid and other support engineering studies (eg
information and based on a assessed (eg spot GPS checks). significant features (eg check to allow precise estimates of cut
common grid. Lease boundary Known features of significance hole collars and DTM are and fill volumes for construction
markers established as required (such as heritage/ethnographic coincident). Critical local purposes).
by regulators. Disparate data sites or existing mining features and baselines surveyed
sources aligned to a common excavations) surveyed and to provide control for
grid system. Known significant permanently marked. engineering, water,
sites (eg heritage) and/or objects Preliminary topographic map environmental and social
(eg tenure pegs) be identified developed to control exploration surveys. Accurate topographic
and where necessary surveyed functions such as sample and map developed. Contour
and marked. drill collar locations. Mapping spacing should be determined
may be based on a local grid but with reference to the detail
this should be referenced to an required for mine planning.
international coordinate system.
2.3 Drill hole location Leading practice methods for Drill holes incorporated in The location of all holes (even if Accuracy of all models (geology,
and down hole hole collar survey and down hole preliminary geological and sites have been remediated) resource, geotechnical etc) relies
surveying should be established resource models accurately including underground accurately on accurate surface and sub
surveys from the start of drilling. located. Down hole surveys known. Down hole surveys surface surveys.
(usually of all holes initially) used provide reliable data for
to check for hole deviation and modelling. Underground holes
whether this needs to be may need to be plugged and
corrected. their location noted by mine
planning engineers.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.4 Geophysics Usually data from published Specific geophysical data for Geophysical data collection No data collection expected.
sources, government databases project area eg magnetics, extended where it is useful to Validate earlier results as drilling
etc (eg Landsat imagery, regional seismics, to aid in geological geological interpretation and database increase.
magnetics). May have directly interpretation. Airborne and/or mine design (eg down hole
acquired (exploration) data. ground techniques. measurements).
2.5 Sampling and data Little direct sampling. Usually Data acquisition procedures fully Major data acquisition phase. Data acquisition tailored to
quality inferred from other sources. developed and implemented. All Develop a consistent, auditable address outstanding issues from
Orebody knowledge based on data collected will be relevant, and representative database to PFS. Additional data may be
exploration, drilling, sampling and accurate and precise. Clear, fully support PFS and FS studies. acquired to target particular risks.
interpretation. Document, collate traceable and auditable Acquisition procedures and Add new data to database (eg
and assess the reliability of documentation processes systems well established, from sterilisation or infill drilling)
available data. For all new data, established. Sampling methods documented and refined before and continue QA/QC processes.
leading practice methods of refined with reference to commencement. Data Database structures and all data
acquisition, validation and observed complexity and project inconsistencies (eg different collected to date ready to be
storage should be applied from requirements. Practical and sampling generations) need to be transferred to operations in
the outset. theoretical aspects of orientating, resolved. An audit of the data preparation for pre-production
collecting and preparing samples acquisition procedures and data and production activities.
should be considered (eg RC integrity is desirable, including a
versus double/triple tube core statement regarding data
drilling, bulk sampling versus accuracy and precision. Bulk
large diameter core). QA/QC samples may be required to
processes implemented to support process design.
confirm data accuracy and
precision.
2.6 Assays and product Generally few data: where Sound assay quality control QA/QC procedures and results No significant data acquisition
quality possible, rely on information from procedures and data acquisition fully documented. All assays lie but further work may be needed
local sources in analogous and storage procedures within acceptable error limits. (eg batch sample assays for
situations. established. Protocols available Blanks, checks on rejects, pulps product quality including
for laboratory methods, chain of etc used as appropriate to customer trials).
custody of samples etc. Identify determine assay accuracy.
minor element analyses needed Specific assay programmes may
to fully characterise product (eg be needed to support process
by-product valuable minerals or design or product quality.
deleterious elements). Independent audit of assay
database recommended.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.7 Bulk density Assumed or book values Some density measurements Rigorous dry bulk density tests Data acquisition usually limited to
commonly used. may exist, either from direct completed. Moisture content model verification.
sampling or geophysical logging. assessed. Consider the
Assess importance and develop relationship of density with other
suitable programme for the next variables (eg lithology, grade) for
study phase. both mineralised and waste
rocks. Bulk density of stockpiles
and waste dumps should also be
assessed.
2.8 Mineralogy Minimal data available. Usually Based on published or direct Mineralogical studies completed Supplementary process data
inferred from other sources. exploration data (eg drill core). on ore and waste as required to acquisition may be required to
Exploration outcomes indicate Preliminary mineralogical studies support process design, address specific mineralogical
the mineralogy facies although to assist process selection and environmental impact studies, uncertainties.
the distribution of such may be provide early identification of health and safety, and product Review earlier results if plant
poorly defined. Geological potential issues (eg refractory characterisation. designs are modified to ensure
evidence only or based on materials, deleterious elements) Detailed mineralogical conclusions still apply. Feed any
published information, in both ‘ore’ and waste. examination and ore type updated information to
experience of similar ore types Suitable programme developed definition. Potential Marketing.
etc. to support studies for process contaminants/penalty elements
design, environmental and health identified (eg refractory materials,
management and product deleterious elements) and likely
characterisation. processing response assessed.
Ore types classified (physical or
chemical characteristics) to
assist in defining appropriate
processing routes. Iterate with
Marketing to ensure that product
specifications and penalty
information (if applicable) are
consistent with the Marketing
strategy.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.9 Geological mapping Generally based on regional Site base geological map Comprehensive local surface and Maps checked on acquisition of
maps or information derived from available. Surface (outcrop) underground (where relevant) new data but otherwise complete
initial exploration programme and mapping to validate regional geological maps using all as basis for the project design.
locally existing operations etc. maps. Use of geophysical available information; drill holes,
techniques and mineralogy to geophysics, structural and
define rock types. Surface hydrogeological. Specific work
structural mapping. Preliminary undertaken to map critical
3D interpretation from drill holes. structures in 3D.
Geological information aligned
with topographical surface and
grid.
2.10 Exploration General deposit characteristics Likely economic extent of the Geometry and geological Where appropriate complete
determined with reference and immediate mineralised target characteristics of economic testing of exploration targets
ranking relative to other deposits should be known. Potential mineralisation well defined. within the exploration lease,
eg mineralisation, scale, likely deposit extensions and Exclude possibility of significant using knowledge gained from the
controls etc using available data exploration targets should be orebody extensions that would proved-up resource.
(eg satellite imagery, regional identified, ranked and prioritised cause development plans to
geophysics and acquired drilling with proposals developed for change. Conduct sterilisation
data). further exploration work. drilling over proposed
infrastructure locations.
2.11 Geology and Regional geology, stratigraphic, Preliminary concepts of Detailed geological model Geological control interpretation
mineralisation structural and tectonic setting of mineralisation domains includes mineralisation controls validated as new data become
the mineralised target assessed. developed based on an (structure, lithology, alteration available eg drilling in the initial
controls Broad scale geological understanding of local geological etc) to support advanced mining area.
constraints on mineralisation are controls, including the likely resource estimation.
assumed from initial exploration presence and distribution of
in conjunction with experience in refractory mineralisation and
similar deposits or extrapolated deleterious minerals in both 'ore'
from limited data. and waste.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.13 Geological Simple models developed to External boundaries and External and internal boundaries Revise model if necessary in
interpretation define the likely geometry of the geological domains are identified and structures defined. The response to changes in mining
mineralised bodies. as far as the data allows. There interpretation and model should parameters and better
is scope for significant be consistent and error checked understanding of local variability
interpretation and model changes with no significant changes or local geological controls.
as further data become available expected in the next study stage.
in next study stage. Resolution and scale of
interpreted domains should be
consistent with data density and
proposed mining scale.
2.14 Geological model – Usually generalised surfaces Simple surface and/or solid Detailed surface model and/or Review model if new data
surface and and/or global volumes/solids models with (large) block/panel solid models, validated against become available.
extrapolated or inferred from definition, depending on the drilling information. Block/panel
volumetric limited information. amount of information available. volumetric model with sub
modelling blocking if required. Full
validation of model integrity (eg
gap/overlap tests) and
consistency with the geological
interpretation.
2.15 Waste Preliminary assessment from Preliminary assessment of any Waste characteristics for Waste rock models refined for
characterisation background geology. waste related risks eg ARD. disposal (eg sulphides, clays, preferred project option.
hazardous minerals) or impact on
other disciplines (eg run off water
quality) assessed in detail.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.16 Resource Conceptual global tonnage and Global estimate based on simple Local estimates rigorously No material changes to the
estimation grade estimates generated from geological models using developed to a scale consistent estimates expected. Where pre-
wide-spaced data or inferred preliminary assumptions. with data spacing and the scale production drilling or other
from other similar deposits. Importance of mining selectivity of mining. Data analysis (eg additional information becomes
assessed (eg global change of variography, trend identification, available, estimates should be
support studies). Preliminary correlations) appropriate to the confirmed and calibrated to the
local estimates (usually based on type of mineralisation carried out scale of mining, proposed
widely spaced samples) prior to estimation. Estimation stockpiling and processing
interpolated into large methods assessed and selected. methods.
block/panels, within each Mining selectivity assessed to
geological domain/zone. determine the optimum mine
Preliminary modelling configuration (resource recovery
assumptions (eg data outlier, versus operational practicalities).
grade continuity and geological If appropriate a local change of
boundaries treatment). support correction may be
Preliminary local change of applied.
support methods may be applied. Global tonnage and grade
estimates used to validate the
resource modelling (eg cross-
checking against sampling data
and local estimates).

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Conceptual Order of magnitude Prefeasibility Feasibility

2.17 Resource model Estimates of mineralisation likely Qualitative and quantitative Rigorous qualitative and Use new data as an opportunity
verification to be based on analogous verification. Resource models quantitative verification of data, to verify and validate the
situations: direct verification of should reflect interpretation of models and estimates is resource models.
assumptions usually not mineralisation controls and required. Data should be
possible. observed trends. Qualitative demonstrably unbiased and
checks should include visual resource estimates should not
comparisons to input data (eg differ significantly when different
drill hole assays versus local estimation methods are applied.
block estimates) with quantitative Checks carried out to ensure that
global statistical validation. the resource model is consistent
with all input data and geological
interpretations. Local estimates
visually validated against
sampling data in section and/or
plan with detailed spot checks on
individual estimates.
2.18 Audits and reviews None necessary. Internal review of data collection Independent internal review of Recommendations from internal
and processing QA/QC and the resource estimate and external reviews and audits
resource estimates advisable. recommended. An external applied where appropriate. In
ORSC review required for first independent audit of the some circumstances a full
release greenfields deposits. resource estimate may be independent audit may be
warranted if the estimate will be necessary or requested by
publicly released for the first time Rio Tinto.
or will be used at a significant
project approval point.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.19 Resource Mineralisation is not usually JORC Code requirements fully Resource estimates classified Resource classification criteria
classification classified as a resource at this applied when developing a appropriately. Relative re-examined with any changes to
stage. Descriptions may relate to resource classification scheme, uncertainty of the resource the engineering and economic
exploration targets or exploration including appointment of a CP, classes explained by qualitative assumptions arising from the FS.
results as defined in the JORC consideration of the quality, and, where possible, quantitative Pre-production in-fill drilling and
Code. precision and accuracy of the measures. JORC code applied sampling in the initial mining area
underlying data, geological when developing or refining an should provide a high degree of
interpretations, data spacing existing resource classification confidence in tonnage, grade and
relative to geological continuity, scheme. Cut-off grade defined product recoveries in the early
the robustness of the estimation on the basis of engineering and years of operation.
method and the uncertainty in the economic conclusions from PFS.
final recoverable estimates.
Reasonable engineering and
economic assumptions should be
used to support the selected cut-
off grade.
2.20 Resource Resources are not usually Resources usually reported for Resources expected to be Resources are reported internally
statements and reported at this stage. internal Rio Tinto business unit reported internally and externally and externally. Reporting
Information may be made public purposes. External reporting is following PFS. Resource requirements are the same as for
reporting as exploration results or usually restricted to brownfield statements should be generated earlier stages, with all
exploration targets following resources, although in some in accordance with Rio Tinto R1 requirements of the JORC Code
specific rules covered by the restricted cases greenfield (or Standard, signed by the CP and and internal Rio Tinto standards
JORC Code. Any public release first release) resources can be backed by a stand alone CP having been met. Resources
of information requires a reported where dispensation is report. The majority of resources within the initial mining area are
statement signed off by a CP and given by the ORSC. Majority of are typically classified as usually developed to a measured
approved by Rio Tinto’s ORSC. resources typically classified as Indicated (depending on the status, with sufficient indicated
Inferred. A documented project resource complexity some may resources to support an
development scenario using also be measured). economically viable project.
OoM inputs is required to support Inferred resources may occur in
any resource publication at this the peripheral deposit areas.
stage.

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Conceptual Order of magnitude Prefeasibility Feasibility

2.21 Mine geology and Not usually considered at this Preliminary assessment of Proposed mining method(s) Finalise ore control procedures
operational stage. mining options to determine assessed with respect to for the selected development
resolution required of geological assumed ore recoveries, dilution, option consistent with mine
readiness model (eg bulk versus selective and grade and geometallurgical planning assumptions and where
mining) and likely dilution and parameters at defined cut off relevant processing requirements
recovery factors for each option. grades or product specifications. (eg blending and hazardous
Ore control methods for each minerals). Finalise ore control
option identified consistent with cost estimates, production
mining plans (eg the number of reporting and reconciliation
working faces, size and capacity procedures. Plan for pre-
of broken stocks and stockpiles). production drilling if required.
Preliminary ore control protocols
developed including drilling and
sampling, manpower, laboratory,
hazardous minerals identification
and handling and costs.

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3 Geotechnical
Conceptual Order of magnitude Prefeasibility Feasibility
3.1 Milestone summary Initial geotechnical assessment Preliminary assessment and Detailed assessment and Confirmation, validation and
to assist with identification of modelling based on limited direct modelling of local conditions. refinement of models. Long-term
preferred mining options. information. Regional context is Hazards are assessed and monitoring equipment may be
understood. monitoring programme installed.
developed.
3.2 Data acquisition Site specific data not usually Limited quantity of geotechnical Focused geotechnical Supplementary geotechnical data
available. Geotechnical data; usually acquired from programme of work to acquire acquisition may be required to
conditions inferred from similar exploration drilling. Mapping data for preferred mine option. address specific risks and/or to
environments elsewhere. data may also be acquired. Data Data acquisition focussed on provide support for detailed
acquisition requirements, mine design, stockpile and waste design of site infrastructure (eg
procedures, systems and dump design and supporting underground development,
databases should become fully infrastructure. Drilling shaft/raise stability, waste
developed, in consultation with a programme usually integrated dump/stockpile foundation
competent geotechnical with the resource and assessment, infrastructure
engineer. Hole orientation may hydrogeological appraisal footings).
be required from initial drilling programme. Consideration
and subsequently as required. should be given to the use of
holes for future monitoring during
the operational phase.
3.3 Seismic risk Identify seismic potential of the Specific impacts that could affect Project specific seismic hazard Should be fully known with
region from published information the options under study are study available to underpin mitigation actions identified by
and assess potential impacts to identified and appropriate study engineering design. this stage.
the project. or engineering work defined for
PFS.
3.4 Rock mass strength Initial assumptions on intact rock Index strength testing on core Targeted sampling and specific Refine and validate assumptions
assessment strength, discontinuity conditions and discontinuity surface field and laboratory testing if additional data become
and rock mass strength based on descriptions from geotechnical programme to support a 3D available.
experience in analogous core logging of exploration holes. geotechnical model. Predictive
geological and mining settings. Simple laboratory testing (eg rock mass strength models
Uniaxial compression) may be developed for anticipated
conducted on major lithological induced stress conditions at
units to validate site index scales commensurate with the
strength testing. scales of mine excavation.

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Conceptual Order of magnitude Prefeasibility Feasibility

3.5 Stress assessment World and regional stress maps Estimates of the magnitude and Stress orientation data acquired Direct stress measurements to
considered if assumptions are to orientation of in situ stresses from down-hole logging. Utilise confirm stress orientations and
be made. based on local experience and available underground openings magnitudes for detailed mine
benchmarking studies from for direct measurements. design and predicting rock mass
regional mine sites. response to mining.
3.6 Structural Not usually considered at this Regional structures have been Site structural model consistent Where additional data exist,
assessment (major stage. identified and modelled, mainly with the regional context. assumptions should be
based on exploration drilling and Structural domains identified and reconfirmed and the model
structures and rock mapping, or published characterised within all refined.
mass fabric) interpretations. geotechnical domains.

3.7 Geotechnical Geotechnical model is usually A preliminary 3D geotechnical 3D models of key geotechnical Refine and validate the model if
modelling and generalised, inferred from an model may be constructed based parameters and rock mass additional data become available.
understanding of the geology and on the geological model and classification indices fully
characterisation experience in similar deposits. regional information, supported developed based on rigorous
with geotechnical data from geostatistical analysis of good
exploration drilling and mapping quality data. Domains linked to
program. expected geology, rock mass,
structure and groundwater
conditions.
3.8 Response to hazard Potential geotechnical hazards Geotechnical hazards identified Detailed assessment of Final mine design (including
assessments and likely impacts inferred from and technical control methods geological and geotechnical dump stability, where
experience of similar projects. costed based on broad hazards that may impact the appropriate) takes full account of
assumptions, experience and viability of mining (eg terrain geotechnical inputs. Control
comparison with analogous hazard, seismic hazard, slope methods confirmed, engineered
situations. failures, induced stresses, and costed.
inrushes). Technical control
methods and costs included in
mine design. Assesses and
address interaction between new
and existing excavations.

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Conceptual Order of magnitude Prefeasibility Feasibility

3.9 Monitoring Not considered at this stage. Not considered at this stage. Preliminary geotechnical Detailed geotechnical monitoring
programme monitoring plan developed and plan developed which includes
costed to address potential costs and a schedule that is
hazards identified and key areas integrated into both the project
of concern. The plan should construction and operational
include instrumentation, phases of mining.
supporting systems and
infrastructure requirements,
installation, commissioning,
operation and maintenance for
the life of the mine.
3.10 Geotechnical Engineering assumptions based Preliminary design developed for Design parameters to support Where additional data exist,
design on experience in similar pit slopes, underground mine planning and process plant design parameters which support
environments and/or mining openings, waste dumps, leach studies for preferred mining mine and process studies should
situations. pads, tailings dams, roads etc option are provided based on a be refined.
based on empirical data. detailed geotechnical Engineering design parameters
Sensitivity analyses undertaken investigation, analysis and of infrastructure should be
to identify the likely operating model. finalised.
range of key geotechnical and Engineering design parameters
hydrogeological inputs to assess for infrastructure (such as
robustness of each mining option stockpile footings or rail
to variability in geotechnical and alignment), usually yet to be
hydrogeological conditions. finalised.
Generalised engineering design
parameters are provided to
facilitate preliminary
infrastructure planning.

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4 Hydrology and hydrogeology

Conceptual Order of magnitude Prefeasibility Feasibility
4.1 Milestone summary Initial assessment of hydrological Preliminary assessment and Sufficiently detailed assessment Confirmation, validation and
and hydrogeological conditions. modelling based on limited direct and modelling of local conditions refinement of models. Long-term
information. Regional context is to support preferred option. monitoring equipment may be
understood. Monitoring programme is installed and dewatering may
established. commence.
4.2 Data acquisition Collate existing published Preliminary data acquisition (eg Major data acquisition stage, Continued acquisition of water
baseline data (eg rainfall, surface average monthly rainfall, considering project needs for monitoring data. Further data
water drainage records, historical evaporation, catchment mapping, climate, surface and ground may be acquired to target data
bore field records, aquifer groundwater levels, water flows, water. Database established to gaps or specific risks and provide
location and water quality data). water quality). Other uses and assess events, dewatering input to design decisions. This
users of surface and ground impacts on aquifers, aquitards, may include initial access to
water identified. slope stability, water supply underground workings,
potential and water quality. assessment of underground
Climate change risks considered. drainage potential, water impacts
on underground development (eg
faults, inrushes etc).
4.3 Surface water Surface water catchment area Catchment maps and major Detailed assessment of water Risk based and event design
management defined and major surface water drainage defined. Other uses threats and opportunities input. Monitoring to extend
bodies identified. and users of surface water communicated to other affected baseline and assess impacts
identified. Opportunities and disciplines (eg for slope stability, through life of project. Continued
risks identified (eg water acid rock drainage, water inputs to mine and infrastructure
resources, flooding, discharge discharge quality, impact on design. Finalise surface water
options etc). Install basic other users). Preliminary storm management plan including
monitoring for baseline water management plan storm water management.
characterisation of flow and developed. Regional and local
quality regimes. Understand impacts on surface flows
legal parameters and licensing understood to closure. Prepare
requirements. licences (eg for obtaining water
supplies or disposal).

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Conceptual Order of magnitude Prefeasibility Feasibility

4.4 Groundwater Determine the likely presence or Identify aquifers and approximate Comprehensive characterisation Design of groundwater
management absence of groundwater as a depth to ground water, regional and understanding of management installations.
local resource. Establish quality and other users. groundwater regime and Obtain all necessary approvals
existence of other large users Consider potential water impacts development of a conceptual for drilling, abstraction and
and high level regulatory on all discipline areas eg model. Formal monitoring discharge of groundwater.
environment. geotechnical, environment and networks established. Drilling Optimise designs, costs and
communities. Install basic and test pumping, dewatering sustainable development
monitoring in key areas. and water supply and quality outcomes. Ongoing monitoring
Understand regulatory framework investigations for some to extend baseline and assess
such as approvals, licensing etc. circumstances. Integrate with impacts through life of project.
engineering studies (eg slope Groundwater management plan
stability, tailings and waste rock finalised.
dumps). Local and regional
impacts of operation on
groundwater flow and quality
assessed. Regulators engaged
and approvals in principle
obtained. Establish groundwater
monitoring database.
4.5 Water supply and Initial estimate of site water Preliminary estimate of site water Flow ranges for all parts of the Water balance modelling used to
demand demand and potential supply balance, with consideration of site water balance calculated confirm and optimise design
options. effects of seasonal variations. from historical climatic records as parameters and integrate site
Basic site flow sheet and annual well as predictive scenarios water infrastructure design.
average water balance including climate extremes.
developed if there is a risk of Evaluate impact of solutes if any.
shortages occurring. Consider Evaluate design changes for
solutes if important. impacts on the site water
balance.

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Conceptual Order of magnitude Prefeasibility Feasibility

4.6 Pit slope stability Potential hazards and likely Local aquifers in mining area Hydrogeological information Pre-dewatering requirements
impacts usually inferred from should be known and preliminary gained from monitoring may defined and may be implemented
similar mines in the region. hydrogeological interpretation of include test well pumping, down depending on project timeline.
available drilling results should hole geophysics, hydraulic Modelling used to optimise
be completed for slope stability testing (packers, falling heads dewatering bore layout,
purposes. Groundwater levels etc), hydrochemistry and specifications and integrates
should be characterised (such as groundwater modelling. dewatering system design with
average, seasonal and spatial Hydrogeological domains to be total mine water management
variability) from basic monitoring defined and reconciled with system and water balance.
information. Ground water geotechnical domains. Approvals for life of mine
investigation to be integrated with Predictions of drawdown at a dewatering secured.
geotechnical investigation for variety of pumping rates to match
PFS. mining advance for preferred
option. Consideration of
discharge quantity, quality and
impacts.
4.7 Underground General understanding that Hydrogeological interpretation of Hydrogeological domains that Pumping system designed to
excavations groundwater may impact on exploration or development may impact development or sufficient detail to reflect risks,
development and operation. Use drilling results for inflow operations characterised and considering seasonal effects and
similar mines in the region as prediction and control. Regional potential areas of inflow risk or inherent uncertainty and
guidance. hydrogeological setting is geotechnical instability identified variability in predicted inflows.
understood and local conditions and monitored accordingly. Consideration of clean or dirty
assessed from basic monitoring Preliminary pumping design water pumping, and water
results indicating major aquifer developed based on inflow quality. Ensure sufficient energy
zones, pressures and water estimates (consider regional available for peak volumes and
quality. effects of groundwater storage lift. Contingency planning to
and through flow). Possible address major risks associated
control measures developed: with pumping system and layout.
pre-drainage, passive or active Approval to be secured for
interception, grouting etc. abstraction and discharge or use.

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5 Mining
Conceptual Order of magnitude Prefeasibility Feasibility
5.1 Milestone summary Initial mine design and Evaluation of a range of mining Identify the preferred mining Mine design finalised and
production schedule are options (eg sequence, method) method, sequence, capacity and production schedules optimised.
developed. with trade-off assessment (eg design from a range of possible Detailed (executable) production
open pit versus underground). options. Reserve estimates are schedules usually developed for
usually externally reported. the initial mining area.
5.2 Reserve generation Initial internal estimates of Preliminary internal "reserve" Resource to reserve conversion Proven and probable reserve
and reporting reserves based on adjustments estimates usually based on is supported by rigorous estimates finalised and publicly
to global resource estimate to Inferred resource estimates with engineering analysis. Proved reported. Parameters (such as
account for resource to reserve simplistic resource to reserve and probable reserve estimates cut-off grade, mining selectivity,
conversion (eg mining recovery conversion factors. Estimates do will in most cases be based on recovery and dilution) should be
and dilution. Estimates do not not qualify as reserves and are the outcome of PFS and publicly optimised through engineering
qualify as reserves and are not not publicly reported. reported for the first time. studies. Reserve estimates
publicly reported. audits are recommended.
5.3 Method selection Assumed mining method based Preliminary consideration of Range of mining methods and Finalisation of selected mining
on experience and knowledge of mining options and production options assessed. Preferred method(s), including any
comparable deposits. rates. Initial consideration of method (or combination of refinements to method.
trade-offs (eg bulk versus methods) and production rate Production rate optimised.
selective mining). identified and selected.
5.4 Design constraints Broad brush consideration of Constraints usually based on Constraints usually based on Constraints based on finalised
mining constraints (eg depth to preliminary estimates by other PFS estimates provided by other estimates from other disciplines.
ore, annual production, selective disciplines (eg pit slopes) or disciplines (eg marketing, social, Mine design and operating
or bulk mining, lease inferred from similar mining environmental or regulatory strategy consistent with internal
boundaries). operations (eg sinking, constraints) or are developed and external requirements (eg
development and production from engineered assessments. engineering, approval and
rates). community commitments).

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Conceptual Order of magnitude Prefeasibility Feasibility

5.5 Surface mine design Initial mine design based on Mine design usually based upon Ultimate mining limits determined Detailed pit designs, including
generalised assumptions based preliminary models or by economic ranking process (eg optimisation of bench heights
on knowledge of analogous assessments (eg geological, pit optimisation or margin and confirmation of economic
situations. engineering, environmental, ranking) of incremental pit shells. mining limits. Detailed phase
community). Mining parameters Preliminary practical designs for designs and pit progression
are preliminary assessments (eg individual pit cutbacks or phases plans for pre-production
pit limits determined by typically are developed, to account for development period on an annual
economic stripping ratios). access ramps, minimum mining basis for first five years. Analysis
Designs reflect preliminary data widths, nominal bench heights and confirmation of practical
status and are not usually and defined geotechnical design achievability of vertical and
practical, lacking engineering criteria. horizontal advance rates
detail (eg sumps, haul roads). (consider working room,
equipment productivities and
activity interactions).
5.6 Engineering design Generalised design and Preliminary mine and associated Design parameters based on the Refine design parameters if
basis engineering assumptions made. infrastructure (eg pit slopes, geotechnical model and detailed additional data are obtained.
underground openings, waste investigations and analyses are Finalise engineering designs for
dumps, leach pads, tailings developed to support mine and infrastructure.
dams, roads etc) developed process plant studies.
based on empirical data. Preliminary engineering design of
Sensitivity analyses undertaken infrastructure eg stockpile
to assess options. footings, rail alignment etc.

5.7 Mining cut-off and Assumed, based on similar Nominal with typical average cost Developed from first principles for Developed from detailed cost
specification deposits and currently saleable assumptions for mining activities each mining scenario. estimates and productivity
product specifications. under similar circumstances. Preliminary optimisation of cut off forecasts. Optimised variable
grade strategy. Product cut-off grade strategy if
specifications defined and appropriate.
incorporated (eg phosphorus
limits in iron ore).
5.8 Selectivity, recovery Assumed from experience and/or Assumed from experience and/or Mining selectivity optimised from Selectivity, recovery and dilution
and dilution typical industry comparisons. typical industry comparisons. trade-off analysis (production assumptions confirmed for
rate, cost, product quality). finalised mining method(s) and
Mining recovery and dilution operational practice.
directly estimated.

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Conceptual Order of magnitude Prefeasibility Feasibility

5.9 Waste dump design Not considered unless a Preliminary assessment of waste Waste dump locations selected Detailed waste dump designs
potentially significant problem is dump location, storage space and costed. Preliminary dump sequenced in at least annual
obvious. and significance of technical designs and sequencing increments. Haulage,
and/or operational risks. considered (removal/storage of construction and rehabilitation
topsoil, stability, prevention of costs optimised over mine life.
acid rock drainage etc). Dump Categorisation and selective
capacities confirmed. placement of any hazardous
material (eg ARD) accounted for
in designs. Access road designs,
materials requirements and
operating practices established.
5.10 Roads and ramps Not considered. Allow for ramps No specific design. Pit slopes Preliminary consideration of pit Detailed design incorporated in
in overall pit slope angle. and preliminary design adjusted access requirements. overall optimised mine design.
to account for likely ramp Dimensions related to equipment Consider safety, engineering and
location, dimensions and length. selection, production sequencing maintenance standards, source
and safety considerations. of construction materials. Costs
estimated.
5.11 Underground design Generalised assumptions (eg Preliminary assessment of Assessment of access options Detailed design including
shaft or decline) as means to access options considering range appropriate to optimal mining consideration of production
access assumed mining method. of methods, cost, production method. Preliminary shaft and/or optimisation, design standards,
rates, development time and decline design(s) considering, development rates, development
future mine development options. safety, size, duty, haulage and schedule, sequencing and
ventilation requirements. manning.
5.14 Power, water, Not specifically considered Not engineered but consideration Preliminary assessment of Detailed assessment of required
pumping systems unless a potentially significant given to equipment and system requirements for each mining equipment and systems over
problem is obvious. Lump sum requirements (practicalities, scenario. Initial equipment mine life. Infrastructure support
cost estimate. indicative cost). selection and sizing. systems designed and costed.
5.15 Ventilation, Not specifically considered No specific design but Preliminary design. General Detailed circuit diagrams with
including unless a potentially significant consideration given to ventilation layout drawings and allowance in development requirements
refrigeration problem is obvious. Lump sum requirements (practicalities, mine development plans. calculated and scheduled.
cost estimate. indicative cost). Calculation of required air
volumes for selected mining
methods.

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Conceptual Order of magnitude Prefeasibility Feasibility

5.16 Surface and Not specifically considered. Preliminary assessment of facility Detailed assessment of facility Finalise mine facilities layout and
underground Lump sum cost estimate. requirements usually including requirements. Preliminary services. Designs are consistent
facilities workshops, consumables storage drawings indicating layout of all with mining fleet size, assumed
facilities, change houses, items such as maintenance productivity, maintenance
messing and offices. Cost workshops, stores, fuel storage, strategy, procurement and supply
estimates usually based on offices, change house, mess, strategy, safety, environmental
comparable operations. waste disposal and and community commitments.
accommodation are developed.
5.17 Production strategy Not considered. Preliminary assessment of Production strategies assessed Production strategy is finalised,
obvious strategies (eg owner and selection supported by including principles of contractor
versus contract mining). engineering and risk analysis. agreements, where appropriate.
Consider non-economic impacts
(eg establishing or engaging
local contractors) and capabilities
of owner or contractor teams
particularly for specialised tasks.
5.18 Production Initial production schedules Preliminary schedules based on Production schedules are usually Detailed production schedule by
schedule usually based on nominal mine depleting tonnes and grades over developed at annual increments source and destination, year on
life, production rate, grade, strip the mine life at typical production over the life of mine. Schedules year with quarterly breakdown for
ratio or development rate rates from a broad-brush are consistent with constraints first two years. Schedules
assumptions. sequence. Various production and mining targets (eg product should be consistent with mining
rate and mining method options quality) and consider blending constraints and targets. Detailed
are usually assessed and and/or stockpiling strategies and pre-production schedule by
alternative schedules developed. pre-production development. month. Ore inventories,
stockpiling/blending strategies
assessed and incorporated into
production schedule.

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5.19 Value optimisation Broad-brush assessment of Preliminary assessment of value Detailed assessment of value Final optimisation of mine design
and sensitivity project value drivers. drivers, usually including analysis drivers (eg production rate, cut- and schedule. Reassess value
analysis of varying production rates, off grade, sequence, selective drivers to confirm or adjust mine
mining methods cut-off grades. mining unit) for multiple options. plan. Iterate with Marketing to
Analysis usually iterates through confirm commercial assumptions.
numerous sensitivities for each
mining option with incremental
change to key drivers (eg costs,
prices, grades). Confirm
commercial assumptions with
Marketing.
5.20 Mining equipment Not considered in detail. Lump Preliminary assessment of fleet Assessment of equipment Finalisation of equipment
sum cost allowance for assumed requirements based on alternatives for major fleet. selection through optimisation
fleet. comparable mines and/or Consideration given to analysis. Consider productivity
manufacturer’s data. Simple requirements of mining method, (usually estimated from first
lump sum allowances in cost selectivity, productivity and principles for specific mine
estimates from experience or equipment matching (eg dig and design and schedule), material
industry databases/supplier haul units). Preliminary characteristics, haul cycle
information. assessment of ancillary analysis and fleet matching.
equipment type and number. Fleet numbers, types, purchase
Indicative costs/quotes received and replacement schedule,
from suppliers. capital and operating costs
finalised and quotes obtained
from suppliers. Analysis of new
versus used, contractor versus
owner operated fleet etc where
appropriate.
5.21 Manpower Not considered in detailed. Preliminary assessment, based Assessment of manpower Detailed mining department
Single figure assumed in on comparable operations. requirements and organisation organogram. Assessment of
operating cost estimate. Identify any special needs. structure for selected mining wages/salary structure (site
alternatives. Average salary cost specific costs per category)
by skills ranges. training requirements, shift
rosters, sources of labour etc.

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6 Process
Conceptual Order of magnitude Prefeasibility Feasibility
6.1 Milestone summary Potential process route(s) are Preliminary evaluation of a range Identify the optimal process Finalise and freeze flow sheet
identified based on comparable of processing technologies, route, technology, capacity and including validated mass, energy
situations. options and capacities. Identify design from a range of possible and water balances. Design
data and test work needs. options. The selected process criteria, equipment specification
must be demonstrated as and raw material suppliers
technically and economically identified.
viable.
6.2 Data acquisition Minimal data available. Usually Preliminary process data usually Major data acquisition stage. Supplementary process data
inferred from other sources. collected at this stage. Data Acquire a representative suite of acquisition may be required to
acquisition procedures and samples to support PFS and FS address specific process
systems should become fully test work programme (consider uncertainties.
developed to obtain relevant and process flow sheet validation,
representative sampling data materials handling, tailings
aligned with the likely processing disposal and pilot plant testing
method(s). requirements).
6.3 Ore characterisation Processing characteristics Preliminary processing Critical parameters (eg grade Pilot plant test work limited to
assumed from comparable assumptions based upon recovery relationships, leach confirming final plant productivity,
operations. Initial consideration geological information and if residence times) have been recovery rates for selected ore
of laboratory and pilot testing appropriate some laboratory determined with reasonable types and/or blends, verification
requirements based on testing (eg diamond core). assurance, using bench scale of operating parameters and
knowledge of geological Appropriate scale laboratory tests on drill core samples. optimisation of unit operations for
environment. testing is supplemented with Depending on complexity of ore the selected process route.
modelling and industry research and process more detailed or
to support potential process larger scale pilot plant tests on
routes. Material handling, bulk samples may be required.
processing and tailings are Flow sheet is finalised based on
considered. results from laboratory and pilot
plant testing.
6.4 Product physical Initially assumed from Assumed from background Detailed tests, possibly on bulk Remaining test work to provide
characteristics background geology. geology and preliminary samples (work index etc) to further confirmation and
laboratory tests eg point load establish crushing and grinding verification.
testing of core. properties. Incorporate physical
test results into final plant design.

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6.5 Product chemical Initially assumed from Assumed from background Address issues of detailed Optimise treatment route and
characteristics background geology. geology. Identify any potentially mineralogy, metallurgy and finalise reagent types and
problematic mineral product specification to enable addition rates. Assess treatment
combinations. process design to overcome any schedule to ensure that
identified problems. Reagent variations in ore feed are
regime identified. Blending acceptable.
requirements addressed and
incorporated.
6.6 Process selection Assumed from comparable Broad scope identification of Base case process route Finalisation of process route and
operations in conjunction with possible treatment options. selected from potentially multiple incorporation into central
exploration data. Consider likely Could be numerous initial candidates. Determine estimate project schedule.
extent of processing (eg sell mining/processing options. available capacities and charges Negotiate third party toll fees if
concentrate or smelt). Consideration of on or off site if toll processing is to be used. required.
processing.
6.7 Technology General awareness of Compile information on Assess any new technologies for Process route selection finalised,
technological developments that potentially applicable reliability, robustness, extent of including technology supply
could apply. technologies. application and cost. Contact agreements, with detailed studies
suppliers for full details and any of any new technology to be
necessary test work. introduced.
6.8 Flow sheets and Conceptual block flow sheets Most unit operations are Base-case flow sheets defined The process route is optimised
specifications incorporating process flow identified and preliminary block with mass and energy balances and frozen, flow sheets are
diagrams to guide outline process diagrams developed for for each section of plant. finalised and mass, energy and
process design requirements. each option. A preliminary Preliminary P&IDs and general water balances are validated.
process model is run based on arrangement drawings, as well P&IDs complete for all process
similar existing facilities. as the process design criteria and service areas. Functional
and modelling are completed. specifications and process
controls should be finalised for
control equipment.

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6.9 Equipment selection The whole plant or sections of Major equipment should be Specifications for major Key plant parameters and
the plant are scaled from other defined from initial test work equipment and duty equipment specifications are
studies or operations. results. Key plant parameters specifications for minor finalised and all equipment
are now identified. equipment are available. should now be defined in detailed
Specific needs for particular lists. Preferred suppliers are
types of equipment and non- identified from technical
standard requirements should be specifications and quotes and
identified. Plant components are delivery schedules determined.
identified and sized by
comparison with similar
operations.
6.10 Production schedule Initial production schedules Preliminary schedules available. Production schedules are usually Detailed production schedule by
usually based on nominal project Various production rates and developed at annual increments source and product (including by-
life and production rate. product options are usually over the project life and consider products and waste streams)
Recoveries and quality (grade) assessed and alternative products, product quality, by- year on year with further
estimated from analogous schedules developed. products and waste streams. breakdown by month for first two
operations. years. Schedules should be
consistent with mining schedules
for a mine project. Stockpiling
and/or blending strategies should
be assessed and incorporated
into production schedule.
6.11 Design drawings No drawings required. Basic general arrangement General arrangements showing General arrangements approved
drawings of plant, infrastructure plant, infrastructure and tailings for all areas, major equipment
and waste facilities are disposal site completed. specified and first draft detail
developed. design drawings available.

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6.12 Process plant design Identify basic criteria based on Preliminary consideration of plant Preferred option plant design Plant design criteria finalised,
existing or analogous plant design criteria eg product quality criteria should now be available. addressing product quality
designs. specifications, plant throughput Product quality specifications; specifications, plant availability
and plant product. plant availability and capacity; and capacity, consumption rates
consumption rates of operating of operating and maintenance
and maintenance consumables; consumables, design life,
design life; blending and blending and stockpiling strategy,
stockpiling strategy; product product handling and dispatch.
handling; and dispatch
addressed.
6.13 Site layout Initial consideration of layout. Preliminary layouts consider site Plans developed for plant and A fixed and final plant and
conditions, location, supporting infrastructure for supporting infrastructure plan has
environmental and logistical preferred option, including site been developed including site
implications. grading, foundation plan and grading, foundation plan and
incorporating preliminary details incorporating final
geotechnical studies. geotechnical studies.
6.14 Waste and recycle Initial consideration of waste Preliminary assessment of waste Tailings, slag, residues, liquid Basic design finalised for tailings
streams evaluation characteristics and likely tailings and recycling streams including and gaseous effluents classified storage facilities, including water
or other effluent impacts. classification and quantification, and quantified. Treatment balances and close out plans. All
potential recycle streams, waste processes and key impacts and effluents classified and
sources and rates, treatment mitigations for each outlined. quantified. Any waste treatment
processes and storage options, Capacity, location, operating or recycling facilities should be
impacts and mitigations. method, water balance and specified.
close-out plan determined for any
tailings storage facilities.
6.15 Raw material and Identify any critical material The market for the supply of key The availability, pricing, timing Supply agreements for key raw
equipment supplies requirements eg acid for leach. raw material inputs and and transportation logistics for materials and equipment
equipment should be described key raw materials and equipment negotiated and inward logistics
and any high risk or long lead should be identified. finalised.
time items identified.
Consideration should be given to
transport logistics to site for
materials and equipment.

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6.16 Water resource Estimate water demand and Preliminary assessment of water Assessment of options to Agreements for access to
assurance quality for variety of production demand (quality and quantity) for quantify water sources, potential sufficient resources for the life of
scenarios and processes. all options being considered shortages, efficiency of use etc mine finalised. Design of major
Identify possible sources completed. Basic water balance should be complete. Develop storage structures and
regionally and locally including modelling should be completed contingency plans for seasonal integration with other site
reuse of treated wastewater. to identify possible additional shortages or climatic impacts. infrastructure elements. Final
resources or achievable water Confirm water quality water balance modelling to
efficiencies if a shortfall is requirements and possible confirm design parameters.
apparent. Understand regulatory treatment options. Predictive
environment and develop scenarios and climatic extremes
preliminary costs. for each option are incorporated
in the detailed water balance.
Develop costs (eg supply,
treatment) from construction to
closure. Water supply
negotiations and agreements
initiated.
6.17 Water efficiency and Not considered. Basic consideration. Understand the impacts of water Design developed to maximise
recycling management options considered efficiency and use water in a
on water efficiency and group sustainable manner.
water targets. Improvements in water use and
efficiency are evaluated using the
water balance.
6.18 Products Detailed specifications unknown, Broad composition only unless Test work to determine product Finalise production route and
saleability of major products non standard or strongly market specifications and confirm product specifications. Supply
assumed. May not be able to sensitive. Assess minor recoveries (volumes). further product samples to
quantify minor elements as elements as potential revenue Acceptability in market assessed customers if appropriate.
potential products or penalties. earning by-products or as (particularly non LME metals),
penalties. Single or multiple customers supplied with
product streams assessed. representative product sample.
Iterate with supply/demand
forecasting, marketing strategy
and product specification
development.

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7 Infrastructure
Conceptual Order of magnitude Prefeasibility Feasibility
7.1 Milestone summary Initial assessment of Preliminary assessment of Preliminary engineering designs Basic engineering designs
infrastructure requirements infrastructure requirements with indicating infrastructure layouts, signed-off by operations.
usually with minimal design and simple designs for the various transport routes, power and
engineering input. options being considered. water facilities.
7.2 Design and Minimal design and engineering Simple designs showing Preliminary site layouts with all Layouts with building designs for
engineering effort work. concepts, organisation of layouts major components to scale but major items (ie rail, roads,
(general overview) etc. Identify significant items with limited detail. Identify support facilities, pipelines,
which may involve complex transport routes (including power, ports etc).
technology, advanced design or rail/port etc). Designs developed
research. in response to processing plant
Identify constraints and designs, power and water
opportunities for cooperating with requirements, and transport
government and international routes.
organisation on transport, power
and water infrastructure.

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7.3 Health and safety Critical health and safety risks Significant health and safety risks Preliminary hazard based design Detailed hazard based design
design outlined and conceptual identified. High level strategies review completed for any critical review completed for any critical
considerations treatment strategies incorporated developed for engineering plant, processes or systems for plant, processes or systems and
into any design(s). solutions. consideration in detailed design. inclusion of findings and risk
The review may be undertaken control strategies into the
via a preliminary HAZOP/HAZID detailed design. The review
or another suitable technique. should be undertaken via
Quantitative risk analysis results HAZOP/HAZID or another
are incorporated in the project suitable technique.
design, for example Incorporate any quantitative risk
consideration in decisions for site analysis results in the project
layout or selection of transport design, for example
modes and routes. consideration in decisions for site
layout, fire safety or selection of
transport modes and routes.
Constructability review of the
project design completed.
Determine the appropriate SIL
where there is high reliance on
safety instrumented systems to
manage significant health and
safety risks.

7.4 Access roads Basic description of any existing Outline extent, in general terms, Preliminary designs required for Basic designs required for new
and required access roads. of the additional access roads new access roads and any access roads and any
required for the project. modifications to existing access modifications required to existing
roads (as per design criteria). roads (as per the finalised design
criteria).

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7.5 Water management Initial assessment of water Preliminary assessment of water Preliminary design developed for Basic integrated design
facilities management facilities likely to be supply, management and the water supply (including developed for the water
needed eg sedimentation and disposal infrastructure. Outline proposed source and management system. Design
disposal dams. proposed waste water treatment, availability), water treatment should meet site specific
storm water management, system (including discharge tolerances and compliance
storage, drainage, sedimentation standards) and water disposal criteria. Licensing applications
dam requirements. Consider facilities to meet all components submitted for approval.
links to site water balance, of the project. Design should
community and environment align with water balance
requirements. modelling, regulatory and other
known commitments.
7.6 Site transport Identify existing transport routes Outline the available options and Complete preliminary analysis Basic designs required for the
requirements and methods and give initial existing facilities associated with and designs for the transport selected routes and methods of
consideration to new facilities the major transport routes and options (eg roads, rail, pipelines, access to site for the execution
needs given project location etc. methods (eg land, air or sea port facilities, airstrips) based on and operational stages with
Include consideration of transport) to be used during the the design criteria for each option specific focus on the movement
temporary facilities to allow project (eg completing baseline under study. Identify the types of of materials and people and the
project studies to proceed. activities, construction and material to be transported (eg transport of ore, products, raw
operation considerations related fuel, explosives, product). materials, explosives etc, based
to workforce, supply etc). Consider mitigations to minimise on the finalised design criteria.
Identify transport routing issues or eliminate transport routing
which may impact communities. issues with communities.
7.7 Product transport Assumed on basis of conceptual Identify likely products and Preliminary transport studies (eg Finalise transport studies and
needs project parameters. options for removal from site, road, rail, pipeline) and test work commence commercial
considering the location, completed as necessary with negotiations with transport
topography etc. suppliers of technology and providers if required.
equipment. Assess any
handling, health and safety
issues. Select preferred
transport option.

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7.8 Waste disposal Basic description of requirements Identify any existing waste Updated requirements for use of Finalise selection of waste
facilities and existing facilities. disposal facilities (eg public existing facilities or need for new disposal facilities with detailed
and/or private landfills) and facilities. Layouts constructed designs, updated annualised
requirements for any additional with annual estimates of the estimate of expected volumes
facilities. various types of waste to be and types of waste to be
disposed of as required. disposed of.
7.9 Support Initial description of project Outline support infrastructure Preliminary description of all Finalise selection of all support
infrastructure support infrastructure (eg offices, facilities related to the various relevant project support infrastructure facilities required
warehousing, transport project areas (eg mine site, infrastructure eg warehouse, for the project and provide basic
maintenance). processing, administration etc). maintenance workshops, fire designs.
systems, security, power
substations, water supply and
storage etc.
7.10 Power and energy Basic power and energy (eg gas, Define indicative power and Preliminary power and energy Calculation of power/energy
demand diesel, and fuel oil) demand energy (eg gas, diesel and fuel demand modelling and design demand (peak, average and
requirements based on similar oil) demand based on project based on the project definition, total) finalised for all project
processes and operations. options under consideration and including construction, phases (execution,
outline supply requirements. commissioning and operational commissioning and operations).
Consider all project phases and phases. Undertake Energy Energy efficiency initiatives
obligations to other parties (such Innovation Workshop if energy analysed.
as local communities). costs >25% total costs or energy
is critical. For power intensive
projects (eg smelters) need to
ensure power availability, supply
and price discussions are well
progressed and preliminary
agreements with suppliers are in
place as required.

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7.11 Power and energy Basic assessment of potential Proposed power/energy supply Analyse options for proposed Selection of power/energy supply
supply and delivery power and energy sources (eg type and delivery options outlined power supply type (eg grid or on (coal, natural gas, hydro etc) and
options grid supply, on-site generation, in general terms. Provide a site generation) and details of the delivery option finalised. Where
diesel truck or rail). general description of the proposed delivery option (eg owner operated, include the
electrical grid and any owner operated, third party design criteria for the power
modifications required to provide operated, existing grid) identified. plant. Describe the electrical grid
power to the project. Where Develop understanding of the (size and sources, reliability etc)
power is critical to the project (eg electrical grid (size and sources, as well as the availability of other
aluminium smelting) advance this reliability etc), availability of other energy sources (natural gal,
work to the extent necessary to energy sources (natural gas, propane, fuel oil, hydro etc).
ensure supply and cost details propane, fuel oil, renewable/low Commercial agreements with
are known. Preliminary carbon generation options) and power suppliers should be in
assessment for renewable/low any potential electrical grid place. Environmental and
carbon energy generation. modification requirements. construction permitting
Preliminary assessment of power requirements are understood and
and energy related regulatory at an advance state of approval.
requirements.
7.12 Power and energy Basic assessment of power and Outline onsite/offsite energy Preliminary assessment Finalise selection for all support
infrastructure energy infrastructure support infrastructure facilities completed of site layout and infrastructure facilities required
requirements (eg sub-stations, (eg sub-stations, distribution design of all relevant by the project and provide
distribution network, fuel farms). network, fuel farms, gas onsite/offsite power and energy detailed designs, including
pipelines) for considered options. support infrastructure (eg sub- energy monitoring and
Consider how proposed systems stations, distribution, fuel storage measurement equipment.
will link to existing infrastructure and offsite infrastructure such as
(eg interconnection, generation gas pipeline, railway for coal
profile etc). delivery).
Describe procedures to measure
energy consumption at significant
points across the site.

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7.13 Rail infrastructure Basic description of any existing Outline in general terms any Preliminary designs required for Basic designs required for all
and facilities and required rail transport proposed rail transport all aspects of any rail transport aspects of any rail transport
facilities. requirements for the project facilities (eg track works, facilities. Finalise contracts with
including rolling stock and locomotives, wagons, any third party service providers
support facilities (eg maintenance facilities, signals (eg rail freight, maintenance).
maintenance). and communications).
Preliminary contract agreements
with third party service providers.
7.14 Port facilities Basic description of any existing Outline in general terms any Preliminary designs required for Basic designs required for all
and required port facilities. proposed port facilities required all aspects of any port facilities aspects of any port facilities.
for the project. (eg unloading, storage, bulking Finalise contracts with any third
areas, ship loading, berths and party service providers.
dredging, maintenance facilities,
communications). Preliminary
contract agreements with third
party service providers.
7.15 Communications Basic description of requirements Identify existing systems and any Provide preliminary designs Provide basic designs based on
and information and existing facilities. additional requirements for based on the project’s finalisation of the project’s
management options under consideration. communication strategy and communication strategy and the
systems Give preliminary consideration to proposed information information management system
an information management management systems. requirements.
system for the project.
7.16 Accommodation Basic description of requirements General outline of existing Provide preliminary housing Finalisation of accommodation
(camps and and existing facilities. Include conditions and any major impacts policy, based on the initial strategy based on the updated
housing) consideration of temporary that may affect the project. manpower assessments. manpower assessments.
facilities during study stages. Applies to both construction and Complete preliminary designs Detailed designs for all facilities
operational requirements (eg and layouts of new or modified that cover the construction and
camps, FIFO, housing etc). facilities (eg construction or operations camps (eg amenity
operational camps, housing etc). buildings, services, units,
recreation, medical/emergency
etc) and permanent housing as
necessary.

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7.17 Hospital, medical Basic description of requirements Identify existing facilities and any Preliminary designs for new or Finalise requirements and
facilities and other and existing facilities. Consider new or modified facilities required modified facilities in conjunction designs for new or amended
social infrastrure. facilities required during study by the project. Consider medical with local medical services facilities.
stages eg first aid and medical facilities, schools, day care suppliers, local government and
support staff. facilities, recreational venues, communities etc.
police and government offices
etc.
7.18 Off site facilities Identify any significant satellite Incorporate off site facilities in Key plant parameters and Finalise specifications and
sites (eg drying, filter plants). equipment inventories (main component identification for off delivery schedule for off site
items only). site equipment. equipment.

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8 Marketing
Conceptual Order of magnitude Prefeasibility Feasibility
8.1 Milestone summary Initial assessment of market Potential options for product Detailed assessment of product Finalise product volume,
implications for potential product volumes, specification and prices volume, specification, delivery specification, packaging and
volumes, quality and logistics assessed. Target end-use and service requirements. logistics requirements. Major
requirements. markets, and customers should Commercial options should be customers are identified,
be identified. evaluated. contracts or agency agreements
drafted.
8.2 Product Preliminary consideration of likely Product standards should be Product standards are specified The product standard to be
specification products, specifications and specified and the optimal product and the relationships between achieved is specified and
quality. type should be considered in the product quality, recovery, supported by metallurgical test
context of supply and demand throughput and revenue are work. Carry out required sample
forecasting and marketing broadly understood. test work for customers or supply
strategy. Iterate with process product samples to customers if
evaluation and design. appropriate.
8.3 Supply and demand Preliminary assessment of global Local, regional and global supply Supply and demand forecasts by Global supply and demand
forecasts supply and demand forecasts and demand forecasts are product specification and end forecasts provide detailed
from a broad Rio Tinto assessed at a product level to use segment complete. Upside analysis of short, medium and
perspective. influence the choice of optimal and downside impacts of industry longer term trends and scenarios
product. Industry trends and and market scenarios on by product and end use segment
impacts on supply and demand forecasts quantified. and are checked against
are outlined. authoritative external sources.
8.4 Marketing Not considered. Preliminary consideration of Marketing and supply chain Detailed evaluation of synergies
synergies marketing and supply chain synergies with other business completed including shared sales
synergies with other business units are identified and and marketing organisations,
units. incorporated in marketing freight synergies and marketing
strategy development. intelligence.
8.5 Marketing strategy Not considered. Develop overview of market and Typical product handling, Detailed marketing strategy is
industry, aligned with strategic packaging, delivery and other finalised based on market entry
production planning. service requirements that are where necessary.
offered by the market should be
identified. Market acceptability of
product specifications and
service offer should be assessed.

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8.6 Product price and Available price benchmarks Initial pricing strategy should be Investigate and consider Detailed pricing strategy
pricing strategy should be identified and factored investigated and considered. alternate pricing strategies with developed, based on marketing
into estimations. Iterate with Iterate with Commercial and reference to proposed product strategy and identified potential
Commercial and Financial. Financial. and service strategy. Iterate with customers. Final review of
Commercial and Financial. achievable prices, including by-
products, based on development
of a contract and spot sales
portfolio plus definition of any
trading activities. Iterate with
Commercial and Financial.
8.9 Customers and End-use markets should be Possible target global and end- Probable target global and end Major customers identified, with
contracts identified at a high level based on use markets and customers use markets and customers any special behaviour
likely product specifications. should be identified at a high should be identified based on characteristics investigated and
level based on demand trends improved market information and noted, particularly in revenue
and likely product specifications. more definitive product forecasts. Any contracts or
specifications. agency agreements proposed
should be documented and
written. Expressions of interest
from desired customers should
be obtained.
8.10 Revenue Gross and net revenues should Gross and net revenue forecasts Revenue forecasts reflect Authoritative sales and revenue
forecasting be forecast. refined on improved industry analysis of product and by- forecasts (gross and net)
information, price assumptions product specifications, including developed with base case and
and supply and demand potential variations and blending alternate scenarios,
forecasts. Include preliminary requirements with time and substantiated by detailed
assessment of product price/penalty considerations. marketing analysis. Define
specification variations (eg minor Iterate with value optimisation revenue ramp-up based on
element revenues, deleterious work conducted by mine planning customer volume off-take
element penalties) on revenue and with financial evaluation information. Quantify revenue
flows. Iterate with financial modelling. sensitivity to market scenarios
evaluation modelling. and conduct a risk assessment
on revenue forecasts. Iterate
with value optimisation modelling
conducted by mine planning and
finance.

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9 Environment
Conceptual Order of magnitude Prefeasibility Feasibility
9.1 Milestone summary Initial assessment of Preliminary assessment of key Detailed assessment of Finalise environmental
environmental impacts and environmental impacts, mitigation environmental impacts assessment and mitigation plans.
regulatory environment. measures and approval timelines commenced and approval Closure plan (excluding actual
for options being considered. timeline for selected option. operating data) is complete and
Preliminary closure plan has environmental management plan
been developed. advanced.
2.12 Data acquisition Collate existing baseline data. Preliminary baseline data may be Major data acquisition stage. Limited data collection expected
acquired to identify key Baseline surveys (eg flora, fauna, at this stage, except to fill in
environmental risks (eg rare dust and hazardous minerals) identified baseline information
fauna or flora) or to acquire data should be completed including gaps.
for key environmental design consideration of seasonal and
parameters (eg climate, medium to long term variations
rainfall/runoff, geographical (eg climate, rainfall).
features).
9.3 Regulatory context Initial basic outline of the Regulatory requirements that Permitting and approvals process Environmental impact
environmental regulations and apply to the project identified initiated. Land access assessment approved by
approval processes that may including approval processes, requirements fully understood regulators. Permits and
apply to the project. environmental impact and an acquisition plan approvals for construction and
assessment and permitting developed and scheduled. operations fully understood, and,
timescales. Cite any project Environmental regulators should along with construction
factors that could significantly be aware of the project (unless environmental management plan,
influence approvals, including project is confidential) and advanced to stage which meets
access to land and tenure. potential concerns discussed and construction and commissioning
manageable. Environmental timetable. Land access and
impact assessment timescales acquisition complete or in
and costs known and process progress to a defined and
well advanced. If appropriate, realistic schedule.
terms of reference agreed with
regulators.

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Conceptual Order of magnitude Prefeasibility Feasibility

9.4 Environmental Identify any likely limitations Outline key environmental design Preliminary environmental design Environmental design criteria
design criteria and/or restrictions for criteria and emission standards criteria provided for key finalised for key emissions, waste
environmental design. likely to be required to satisfy emissions (engineering controls streams, engineering controls
environmental protection, and management practices) and and management practices
regulatory, stakeholder, business key waste streams. Outline any needed to meet criteria.
or customer requirements. significant cost, time or technical
Identify key potential trade-offs. implications in meeting the
criteria. Any environmental
trade-offs should be clearly
described.
9.5 Environmental Basic outline of environmental Preliminary environmental Develop environmental Finalised environmental
management management system. management system available management system that will management system and site
system that will apply to any works apply to construction and disturbance procedure that will
undertaken during studies operations. Implement system to apply to construction and
(including approvals process for control site disturbance during operations. Maintain data
site disturbance). Identify data study phase. Establish and management system.
management processes. maintain data management
system.
9.6 Environmental Desktop review of existing Preliminary review of existing Baseline environmental surveys Any outstanding baseline
baseline studies information, no field studies. information (regional and project (eg flora, fauna, dust, hazardous environmental surveys completed
context) and commence base mineral) substantially completed, and results finalised (ie
line surveys. to the extent necessary to interpretations, modelling etc).
support work on option selection,
project layout, design criteria and
environmental impact
assessment studies. Regional
and project context fully
understood.

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Conceptual Order of magnitude Prefeasibility Feasibility

9.7 Environmental Broad potential environmental Significant risks and potential Provide a preliminary description Identify significant environmental
assessment impacts and potential mitigation “show stoppers” identified. of key environmental impacts and impacts, based on detailed
measures identified. Outline key environmental outline required mitigation assessment, with proposed
impacts and identify mitigation measures. Consider climate mitigation measures. Provide
measures likely to be required for change effects where relevant and assessment of cases where
each option considered. Preliminary modelling usually environmental impacts may lead
required to assist evaluation (eg to significant cost, time or
air dispersion, groundwater, technical implications during
noise) and should consider using construction or operation.
relevant Rio Tinto diagnostic
tools (eg water, mineral waste,
biodiversity). Ensure that
environmental assessment is
integrated into the SEIA.
9.8 Rio Tinto Identify applicable Rio Tinto Outline which Rio Tinto and Ensure the options chosen can Finalise the project performance
environmental strategies (eg biodiversity, water, business unit environmental achieve compliance with relevant in relation to the agreed Rio Tinto
targets and product stewardship). target parameters are relevant to Rio Tinto and business unit and business unit environmental
strategies the project and why. Adopt environmental target parameters target parameters and compare
relevant Rio Tinto strategies (eg greenhouse gas emissions, to contemporary and/or
based on level of risk. energy use, water use, analogous operations. Update
rehabilitation). Implementation implementation plans for any
plans for any adopted Rio Tinto adopted Rio Tinto strategies.
strategies (eg biodiversity, water,
product stewardship) developed.

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9.9 Stakeholder Identify key stakeholders and Desktop analysis of stakeholders Consultation with key Engagement with key
engagement their environmental issues. and their likely environmental stakeholders in progress to find stakeholders maintained,
issues completed. Potential out their views on environmental including throughout
partnership opportunities impacts, potential mitigation environmental impact
identified. measures, and potential assessment process.
environmental improvement Implementation plan for any
opportunities. Feedback used to identified partnership programme
support work on option selection, prepared and costed.
project layout, design criteria and
environmental impact
assessment studies. Assess
capacity of any potential
partnering organisations.
9.12 Water related Major risks identified. Major water related closure risks Preliminary water related closure Detailed water related closure
closure planning identified and basic mitigation risks relating to groundwater, issues documented in closure
management plans identified. surface water, pit voids and long management plan along with
term seepage and water quality mitigation strategies.
completed. Project decisions Stakeholders aware of long term
take account of closure water impacts on local and regional
risks and closure objectives. water resources and use.
9.13 Product Initial assessment of potential for Preliminary assessment of the Significant ‘licence to market' and Product specifications finalised.
stewardship hazardous wastes and by- threats presented by wastes and minor element threats addressed. Hazardous wastes and by-
products (eg asbestos, mercury). by-products eg handling of toxic Waste and by-product risks products identified with
materials, costs of safe disposal. identified together with mitigation management plans and costs.
Estimate associated liabilities. options and costs.

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Conceptual Order of magnitude Prefeasibility Feasibility

9.14 Climate change Initial assessment of climate Preliminary assessment of the Assess climate change impact Finalise emission intensity
change impact of project, greenhouse gas footprint for including quantification of estimates and develop climate
including that relevant to the onsite and purchased power emissions intensities. change action plan with regards
proposed product and relevant emissions for options being Assess vulnerability of major to Rio Tinto and project/site
government policy in the considered. supply inputs (including logistics) greenhouse gas targets.
jurisdiction. Identification, but not and operational processes to
quantification of all potential extreme weather events that may
emission sources especially be exacerbated by climate
process emissions (eg coal mine change.
methane or acid leach of
carbonates).
Understanding of the
jurisdiction’s climate change
policies and potential project
impact.

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10 Social and communities

Conceptual Order of magnitude Prefeasibility Feasibility
10.1 Milestone summary Initial assessment of social, Preliminary assessment of Work programmes are underway SEIA submitted with continued
economic and cultural heritage political, social and community (eg consultation campaigns; consultation and feedback on
impacts. impacts. Consultation, community engagement). findings. Workforce development
communication, and community Detailed assessments are and housing plans finalised.
relations strategies are complete.
developed.
10.2 Data acquisition Collate existing baseline data. Preliminary baseline data may be Major data acquisition stage with Limited data collection expected
Develop a data collection plan for acquired to identify key social participation of targeted at this stage, except to fill in
the remainder of the study cycle. risks and to develop an communities and representative identified information gaps.
understanding of time required to authorities.
resolve social, economic,
workforce and heritage issues.
10.3 Federal, state, Initial appraisal of government Complete preliminary Complete detailed country risk Government risks should largely
provincial and local views on potential project assessment of country, political analysis (including legal, be resolved and approvals in
government development. and regulatory risks. Consider regulatory and policy place. Some elements of the
local, regional and national frameworks, rule of law and work programme may be
government views towards political risks, local, region and ongoing (eg continued
project development, vulnerability national government and NGO government engagement,
to delay due to governance institutional capacities and communication plan).
problems, potential for civic attitudes towards foreign direct
dissent and human rights issues. investment and the mining
Develop strategic work and industry). Work programmes to
communication plan to address address risks are usually
identified risks. underway and reliable timeline
and cost estimates for these
activities developed.

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Conceptual Order of magnitude Prefeasibility Feasibility

10.4 Baseline studies Initial assessment of local and Preliminary community analysis Detailed community analysis. Continued analysis of community
regional community profiles. including an assessment of Demographic and cultural issues, concerns and
Consider potential social, relevant government plans which composition of affected development opportunities.
cultural, heritage, economic and relate to project area. Key communities (including internal
political sensitivities. Identify community groups, secondary and external socio-economic and
existing and planned government stakeholders (including NGOs) political relationships, dynamics,
and non-government should be identified and their their culture heritage, economies
programmes for local or regional potential sensitivities understood. and resources) should be
socio-economic development. Land acquisition and access understood and characterised.
issues identified and understood. Review baseline results with
Major areas of concern and communities and other vested
opportunities for engagement groups, including regulatory
and cooperation should be bodies. Identify drivers of social
identified. and economic change,
opportunities for ongoing
dialogue and collaboration.
Integrate findings with other
project areas (eg HR,
procurement, HSE, operations).
10.5 Socio-economic Initial assessment of significant Preliminary impact assessment Assess social and community Complete and (where required)
impact assessment social, economic and cultural and definition of scope of work impacts for each project option, submit SEIA for the selected
heritage impacts (positive and and schedule for formal SEIA identifying significant risks and project option (consider
negative). Consider the potential submission. Preliminary management measures. construction, operation and
project impact on local, regional assessment should develop Consider alignment of managed closure phases). Assessment
and national communities. mitigation plans for short-term risks with company policy, should include risk management
impacts of ongoing study (eg community commitments, plan, schedule and cost
drilling access, bulk sampling, international standards and legal estimates. Continue to monitor
land disturbance) including requirements. and implement actions for study
potential impacts to cultural phase activities. Finalise action
heritage sites. plans for construction, production
and closure stages (eg detailed
resettlement action plan; local
economic development and
training programmes), schedules
and costs.

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Conceptual Order of magnitude Prefeasibility Feasibility

10.6 Consultation Initial stakeholder mapping. Key Stakeholder analysis completed Completion of preliminary public First stage public consultation
audiences for a public and consultation strategy information campaign. over draft findings from SEIA and
information campaign should be developed. Consider interests Information should be verified analysis of concerns arising from
identified. Conceptual public and abilities of stakeholders to with key informants and any preferred option. Response to
information strategy to address influence project development. emerging issues or concerns public concerns arising from
interests and concerns of key Preliminary public information identified. Initiate intensive consultation should be worked
stakeholders should be programme explaining consultation on critical issues (eg into final engineering design and
developed. exploration and early project elements that have project plan (where practicable).
development activities usually significant impacts on local and Assess state of community
rolled out. regional communities) relating to attitudes and perceptions;
preferred technical option(s). misconceptions and information
gaps that remain to be
addressed are identified.
10.7 Media Initial assessment of media Preliminary media environment Assess views of local, regional Monitor effectiveness of
environment. analysis. Consider media and national media on the communications plan, ensuring
climate at regional and national proposed project. Update, linkages with consultation
level. Develop communications implement and monitor programmes and consistency in
plan for various media channels. effectiveness of communications messages being delivered to the
Align media communications with plan, ensuring linkages with community.
consultation programmes and consultation programmes and
ensure consistency of key consistency in messages being
messages. delivered to the community.
10.8 Non government Initial assessment of the civil Preliminary NGO assessment NGO assessment should be Continue to track NGO
organisations society environment in the host usually based on general completed. Develop and perspectives indirectly (eg
country. Consider NGO views on experience but may include in implement NGO engagement through media reports, press
the development of the project at depth analysis (eg local and programme as part of the wider releases). Monitor effectiveness
national, local and international national NGO perspectives on consultation with key of engagement programme and
level. mining and new project stakeholders. make adjustments, as necessary.
development). Potential gaps in
NGO capacity to engage in the
development of the project
should be identified. Develop
consultation strategy.

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10.9 Local service High level review of local service Preliminary service industry Detailed service industry Completion of a detailed plan to
industry industry capacity to supply assessment. Consider the assessment. Consider the enhance local economic
project. specific project requirements and particular goods and service development, mitigate adverse
assess the ability and potential needs for the selected project community impacts and provide
capacity of existing local service option and the opportunities to assured supply of goods and
industry providers. promote local business services to the project.
development. Identify technical
support and training that might
be required to enhance
opportunities for local sourcing of
goods and services and for
assuring quality and security of
supply. The potential impacts of
project demand for local services
on existing communities, such as
inflation of local prices, supply
shortages should be considered
as part of the SEIA and
appropriate mitigation actions
prepared.
10.10 Housing, Initial assessment of on and off- Preliminary assessment of Detailed evaluation of housing Detailed housing and
accommodation site housing and accommodation housing and accommodation and accommodation options. accommodation plans
and social requirements. Consider options and requirements. Consider implications such as developed. Consider strategies
infrastructure requirements during study phase Consider operational strategy (eg construction and permanent and implications for each project
(eg temporary camps, relocation FIFO, residential), alignment with workforce accommodation, phase: construction, operations
of communities). cultural and community recruitment strategy, costs. and closure (eg community
expectations, community impact, Assess potential effects on the sustainability beyond closure).
availability of land, housing and local housing market, public
services. Consider requirements services, social infrastructure,
and expectations for medical public health and environment
facilities, schools, government and on company-community
and police offices etc. Define relations. Key stakeholders
accommodation strategy for should be engaged as part of the
study phase and engage with wider consultation process.
stakeholders on key issues (eg
temporary community relocation).

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Conceptual Order of magnitude Prefeasibility Feasibility

10.11 Cultural heritage Initial cultural heritage and Preliminary surveys to identify Clearance surveys usually Complete clearance activities or
ethnographic site assessment. potential sites of significance. commenced. Mitigation plans preserve sites, as necessary.
Review historical surveys. Engage with land owners and (such as salvage activities)
site custodians; develop should be developed consistent
schedules to perform necessary with Indigenous land owner and
heritage clearances and custodial expectations and legal
permissions. requirements.

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11 Permits and approvals

Conceptual Order of magnitude Prefeasibility Feasibility
11.1 Milestone summary Initial assessment of political and Exploration, land access (for Some permitting and approval Surface, sub-surface, easement,
regulatory environment, exploration purposes) and applications should be submitted transportation rights and
ownership rights and land access mineral rights should be granted. and negotiations underway. No ownership resolved, applications
requirements. Permitting and approval process significant impediments to approved and agreements in
for project development should reaching agreements and place (subject to corporate and
be known and timeline estimated. obtaining approvals. government conditions). Where
agreements are yet to be
finalised, no significant
impediment should exist.
11.2 Tenure Right of ownership established (if Exploration rights, land access Construction and operating Subject to any overriding
an exploration project) or lease rights (for resource definition licence requirements known and corporate or government
acquisition process identified. purposes) and mineral rights preliminary applications conditions, surface, sub-surface,
Preliminary assessment of lease have been granted. A developed. There should be no easement and transportation
types and ownership in the target mechanism for acquiring, impediment to obtaining such rights and ownership issues
area. Identify any JV or maintaining and monitoring the licences when required. should be resolved and
partnership interests, native title status of other required leases, Processes and responsibilities necessary applications approved
interests, land use rights, licences and permits for have been defined and timelines and agreements are in place.
historical sites, conservation and exploration, development and developed to obtain these Construction licences obtained.
protected areas. operational activities should be in licences. A mechanism for monitoring and
place with a clear designation of responding to changes in licence
responsibility. and agreement conditions should
be in place with a clear
designation of responsibility.

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11.3 Permits and Assess broad requirements for Significant potential problems All permitting requirements All permits in place or agreed
approvals the type of business being with any of the options under addressed and outline terms with a high level of confidence.
contemplated. Generally assume consideration identified eg land negotiated with relevant No significant impediment to
all permits and approvals can be use issues, environmental, authorities. Discussions with project proceeding. Targeted
obtained. Identify and flag any ground disturbance, water etc community representatives and analysis of land titling or resource
potential timing issues. and develop plans to address local government officials on issues relative to project start-up,
these. Understand what permits common property land tenure, construction, implementation and
and consents are required, their property title and land claims. closure. Environmental and
sequence and likely time frame. Complete preliminary social impact study completed.
Commence early negotiations environmental and social impact Ensure all relevant agreements
and baseline work. List prepared studies. Provide increased detail eg JV, mining licences, heads of
of all agreements and permits on the list of agreements and agreement, land ownership etc
likely to be needed eg permits including firmed up time are in place the process for
confidentiality agreements, heads lines and key milestones/decision reaching agreement is
of agreement, environmental and points. understood and will not hamper
communities, mineral and mining project progress.
rights, land ownership and
access, government approvals,
potential partner agreements etc.
11.4 Regulatory Broad understanding of the Identify significant constraints, eg Address issues of regulatory Full compliance with all
environment regulatory and political and in labour rules, environmental, constraints and include cost regulations in consultation with
administrative environment as it mining, health and safety, and implications in evaluation. regulatory authorities. Licence
applies to the project location and market access. Establish a good Permitting requirements and conditions and market access
potential markets. understanding of the regulatory procedures fully understood. negotiated where appropriate
requirements that could apply to Environmental authorities aware and any constraints (eg
the project including factors that of the project and potential production rates or emissions)
could influence acceptability of concerns discussed. Regulatory accepted. Environmental impact
the project and product, requirements and procedures in assessment agreed and
procedures and permitting classifying and labelling and any accepted by authorities.
timescales and the marketing of subsequent constraints on Environmental management plan
the product. marketing evaluated. agreed and accepted by
authorities.

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Conceptual Order of magnitude Prefeasibility Feasibility

11.5 Land access Initial assessment of likely land Develop further details of land Land requirements defined and Finalise agreements on land
issues eg infrastructure use (eg agriculture, industrial preliminary negotiations started access and compensation,
requirements, claims to land title, developments, reserved land) on obtaining access. Carry out resettlement etc. Ground
overlapping land use, cultural and identify key stakeholders and any necessary associated field disturbance approval processes
sites and use of natural their contacts for establishing work (eg heritage clearance) established.
resources. dialogue. If resettlement is when required. Ground
needed, establish asset and disturbance process formulated.
eligibility baseline as well as Consider options for relocation of
options for relocation of people. people and moveable assets.
Determine costs of compensation
and re-establishment of
livelihoods and communities if
needed.
11.6 Indigenous land Evaluate range of indigenous Indigenous land owner Adjust agreement terms, Adjust agreement terms,
owner agreements land owner agreements (eg agreement and action plan depending on PFS outcomes. depending on FS outcomes.
royalty, equity share) that could developed. Consider flexibility of Monitor adherence to agreement Monitor adherence to agreement
apply. Consider strategy for agreement given project of all parties and take any of all parties and take any
developing an agreement. uncertainties. Agreement may necessary corrective actions. necessary corrective actions.
Including negotiation strategies be negotiated, agreed and
and Indigenous land owner implemented.
capacity to engage.

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12 Project execution planning

Conceptual Order of magnitude Prefeasibility Feasibility
12.1 Milestone summary OoM scope of work, schedule PFS scope of work, schedule, FS scope, schedule, budget, Project execution plan is
and budget developed. budget, organisation structure organisation structure and finalised.
and contract strategy (eg contract strategy (eg
engineering) developed. engineering) developed.
preliminary project execution
plan has been developed.
12.2 Scope and project Not explicity considered. Develop approaches for Preliminary outline at a strategic The physical scope of the project
approach execution that can be analysed level, describing approach from should be defined and referred to
(engineering and during PFS. Identify high level engineering and construction as a control baseline. The
construction) execution opportunities. perspective (ie design/build, project execution plan approach
engineer/procure/construct etc). is defined and the project
Identify major equipment procedures to be used should be
packages by area and outline identified.
how they will be procured.
12.3 Health and safety Conduct initial assessment of Significant health and safety risks Complete a preliminary hazard Complete a hazard based design
health and safety risks and to be identified and high level based design review for any review for any critical plant,
incorporate into project treatment strategies to be critical plant, processes or processes or systems and
management planning incorporated into the designs. systems for consideration in include findings and risk control
processes. Outline the key components of detailed design. Incorporate strategies in the detailed design,
the SMP that covers the owners health and safety risk analysis eg fire safety, office facilities etc.
and contracting options. outcomes in design Complete a constructability
considerations eg site layout, review of the project design.
transport methods and routes. The SMP should be finalised.
Complete a preliminary SMP that
should cover the selected owner
and contracting strategy.

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12.4 Work breakdown Not necessarily considered at An outline of the WBS for the Preliminary WBS for the project Finalised WBS for the project
structure this stage. project should be completed as used to produce an integrated used to produce an integrated
an aid in project control, control and reporting standard for control and reporting standard for
scheduling and reporting. the proposed project costs and the proposed project costs and
the project schedule. the project schedule. The project
PBS is established with
integration from engineering
through to hand over to
operations.
12.5 Cost management Not considered at this stage. Not considered at this stage. Cost management system Comprehensive outline of cost
established and functional for all management systems required
execution activities. Broadly for execution that cover all direct
outline the project controls and indirect costs.
philosophy and approach (cost,
schedule, quality, cash flow),
including responsibility and
management.
12.6 Planning and Considered major milestones. Develop summary level schedule Tasks scheduled at summary Detailed chart (Gantt chart)
scheduling showing durations of work level (Gantt chart) for the overall showing the overall project
phases and major milestones. project showing major milestones schedule required as part of
(eg approvals, procurement, project execution plan. Tasks
construction by facility, should be scheduled and linked
commissioning, ramp-up). Link at both summary and detailed
to WBS. levels, showing major milestones
required during implementation.
Resource levels should match
the cost estimate assumptions.
Link to WBS.

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Conceptual Order of magnitude Prefeasibility Feasibility

12.7 Engineering Not considered at this stage. Outline preliminary engineering Define the engineering Detailed outline required that
and technical requirements to requirements, including any shows parties responsible for
execute the following phases of specialist inputs, the application undertaking the engineering, the
work. of new technologies and the standards to be adopted, the
engineering resources required engineering role of the project
for the subsequent study and team, quality assurance,
execution phases. HAZOPs and constructability,
operability and maintenance
assessments.
12.8 EPCM selection for Not considered at this stage. Preliminary consideration of likely Consider form of contract Select EPCM contractor from
project execution engineering companies with the (EPCM, EPC etc) and extent of short list invited to tender
capacity to build the project. owners team involvement; if (subject to project approval).
appropriate commence selection EPCM contractors may also be
of EPCM contractor. involved in various stages of the
study but this is not the most
critical consideration in the final
selection.
12.9 Procurement and Not considered at this stage. Outline strategic approach for the Provide preliminary contracting Finalise the procurement and
contracts options to be considered. strategies that cover the scope contracting plans, with the
Identify potential materials and and timing for development of commercial terms, for each
equipment suppliers. specifications and contracts for package. The procurement and
major engineering, procurement contracting plan should be
and construction areas. prepared, approved and ready
for immediate implementation for
critical path activities, once
project funding is approved.
Contracting strategies for the
project developed and
responsibility for implementation
outlined.

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Conceptual Order of magnitude Prefeasibility Feasibility

12.10 Construction Not considered at this stage. Outline high level plan for project Preliminary execution plan With the project execution plan
delivery including options to be addresses, as a minimum, the the following should be finalised:
assessed. approach to construction construction procedures to be
activities and the HR, HS&E and adopted, the approach to
industrial relations IR policies to construction, safety policies and
be used. procedures, HR and IR policies
and procedures.
12.11 Commissioning Not considered at this stage. Outline commissioning issues Preliminary commissioning and Define the approach to be
that will be addressed during the start-up plan developed including adopted, responsibilities during
implementation phase of the general outline of process. This pre-commissioning and
project. should include consideration of commissioning, methodology and
key positions (timing), training, handover points.
hazard analysis and transition
plan.
12.12 Ramp-up and Not considered at this stage. High level profile to support the The preliminary execution plan Responsibility and basis of the
handover valuation. should define the responsibility project and operations groups
and basis of the project and during ramp-up and handover
operations groups during ramp- defined, including budget
up and handover, including allocations, schedules and
budget allocations, schedules milestone.
and milestone.
12.13 Project organisation Identify organisational Overview of potential options for Provide preliminary project Define the approach to the
requirements to develop the project organisation for next organisation and management assignment of personnel to the
project. phases and execution. including owner’s team and all project, procedures for
other major internal and external engagement, outline of roles for
resources that will be required. each project team member,
reference to any terms and
conditions of employment and
outline of mobilisation (recruiting
schedule) and accommodation
issues and any special staff
policies, which may impact the
costs.

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13 Operational readiness
Conceptual Order of magnitude Prefeasibility Feasibility
13.1 Milestone summary Not usually considered. Preliminary assessment of labour Assessment of labour skills, Workforce is identified,
requirements, operating training, operating philosophy, recruitment and training plans
philosophy, organisation and organisational structure and developed. Operating strategy
technologies. technology. Operating cycles and cycles finalised and aligned
and practices are outlined. with productivity assumptions.
Operational procedures are
developed.
13.2 Health and safety Provide an outline of the Preliminary assessment of the Develop operational health and Finalise health and safety
management operational health and safety operational health and safety safety management plan to management plan for the
management plan. management plan. sufficient detail to outline the key operations including defining key
performance indicators. performance indicators and
competencies.
13.3 Labour Initial assessment of Preliminary assessment of Commence assessment of Potential work force composition
demographics, demographics and local, regional demographics and labour demographics and labour and educational requirements
education and and national labour characteristics (eg education, characteristics. Compare fully considered. Training and
culture characteristics (eg education, skills and cultural profile) of local educational, skill and cultural further education programmes
skills and experience levels). and regional communities. profile of the available workforce developed or initiated according
Consider legal obligations and with the needs of the selected to circumstances. Full
community expectations. The project. The source(s) of labour consideration given to potential
availability and cost of qualified should be understood and issues arising from interacting
and non-qualified personnel educational and training local, regional and expatriate
should be understood and any requirements needs assessed. cultures. Measures for promoting
specific labour programme Consideration should be given to local workforce development,
identified (eg technical training). community and closure impacts. justification for expatriate
employment and localisation
plans should be considered.

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13.4 Operating Not usually considered. Preliminary assessment of the Commence detailed assessment Detail recommended operating
philosophy and proposed operating philosophy of operating models and select philosophy and develop
management (eg owner operated versus preferred option. Consider how operational plan. Plan should
contracted services). well the selected option aligns consider operations criteria and
with obligations (eg support of contracted service management,
local contractor services), risks production ramp-up schedule and
(eg contractor capability and detail people, processes and
capacity) and how the interface systems to achieve assumed
to contractors will be managed production rates.
(eg owners team representation).
13.5 Operating cycles Generalised operating cycle Preliminary consideration of Commence assessment of Finalise operating strategy and
assumptions. operating strategy and operating operating strategy and operating operating cycles. Estimated shift
cycles. Consider merits and cycles. Selected strategy should and leave cycles should be
disadvantages (eg FIFO, align with community, HR, included in other assessments
residential) existing work engineering and operational (such as productivity, work force
practices, cultural norms and assumptions. attraction and retention, lost time
community expectations. and costs) and consider
interfaces between different
workgroups.
13.6 Operations Initial broad-brush consideration Preliminary organisational Organisational structure Organisational structure close to
organisation of organisational structure. structure. May be based on developed sufficiently to consider finalisation. Interfaces with
Usually based on a generic existing or similar operations. relationships and structure with external providers and
model. Organisation charts available external providers and contractors are detailed (eg
outlining major functional areas contractors, labour ratios management of transport, mining
and management structure (supervisor and administration). and catering contracts).
developed. Organisation structure should Organisational development
detail roles and responsibilities programme should be considered
for major functional areas. (eg recruitment, induction,
Consider needs at training and commissioning
commissioning, production ramp- roles). Consider organisational
up and steady-state. transitions (eg brownfields
expansions, management of
structural change for open pit to
underground transition).

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13.7 Supply and logistics Not usually considered. Preliminary outline of supply Complete assessment of supply Supply contracts in place where
chains, logistics and issues and integration with PFS practical given timing.
transportation options. infrastructure and procurement Transportation and delivery
studies. Draft contracts requirements identified and
developed for initial supply where necessary contracted.
requirements (eg explosives, Supply contracts agreed subject
fuel). to project approval.
13.8 Recruitment and High level assessment of Preliminary assessment of Preliminary recruitment plan Final recruitment and training
training recruitment and training needs recruitment and training developed and aligned with plans developed including details
(eg local versus expatriate). requirements for range of policies, procedures, strategic of specific programmes with
potential workforce sources goals (eg local employment timelines for appointing staff.
(local, regional national and target), government and Recruitment and training
expatriate) including labour community expectations. programme should be linked to
supply characteristics, workforce Recruitment and training cost identified workforce issues,
development opportunities, estimates and high level workforce availability, skill levels
challenges and constraints. recruitment schedule developed. and training needs,
accommodation strategy and
sustainable development goals.
Socio-economic impacts of local
and expatriate personnel
recruitment thoroughly assessed.
Recruitment and training costs
developed. Key senior
operations team members may
be recruited.
13.9 Performance Generalised labour costs and Preliminary assessment of Detailed assessment of labour Finalise performance
management and conditions usually assumed from performance management and costs to each organisational management and compensation
compensation experience or similar operations. benefits strategy and labour level. assessment and align with
costs. Consider local, regional operational and communities
(and where applicable) strategies.
international compensation and
employment conditions. Labour
cost estimates may be
consolidated into high level
groupings (eg local skilled,
expatriate skilled etc).

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13.10 Statutory obligations Not assessed unless specific Preliminary investigation of Statutory obligations (eg HSE Confirm that proposed HR plans
statutory conditions are known. applicable labour laws and and worker’s compensation and policies align with statutory
statutory obligations. Include regulations and management) labour regulations, HSE, worker’s
findings in preliminary HR plans. should be investigated, compensation and other
understood and evaluated as requirements. Labour costs
part of the HR plans. should fully reflect the cost of
meeting statutory obligations.
13.11 Employee and Not considered unless specific Preliminary assessment of labour Detailed assessment of labour Finalise employee relations
labour relations conditions are known to exist. relations climate. Understand relations climate. Develop strategy and plan.
existing local, regional and employee relations strategy and
national conditions and level of preliminary implementation plan.
union activity.
13.12 Technology and Not considered unless specific Assess key technologies and Detailed assessment of Finalise technological and
expertise conditions exist (such as the expertise that are critical to the technologies and expertise expertise requirements. Plans
deployment of innovative project. Address threats and requirements. Preliminary plans detailing how key technologies
technologies). opportunities associated with developed to address issues will be implemented and
new technology and develop such as intellectual property, protected should be completed.
management plans. transfer of expertise, copyrights, Consideration should be given to
patents and confidentiality issues such as identification,
agreements. Pilot plant test work attraction and retention of key
for new or untested processes technical experts, transfer of
and/or technologies should be expertise, analysis of key
completed, scale-up risks technological risks (eg scale-up,
analysed and management new or novel technologies or
action plans developed. combinations of technologies)
Required technical expertise for and protection of intellectual
commissioning, ramp-up and property.
production stages should be
identified.

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13.13 Systems and Not considered unless specific Preliminary assessment of Detailed assessment of system Finalise system and process
business processes conditions exist. system and business process and business process requirements. Plans should
requirements. Consider any requirements. Preliminary detail which systems and
unique requirements (ie systems system and process plans should processes have been selected,
and/or process not deployed be developed and include items system integration, training and
elsewhere). such as technical system maintenance needs.
requirements (eg process
control, production monitoring
and reporting, reconciliation,
condition monitoring) and
business system requirements
(eg planning systems, cost
control, safety and environmental
monitoring).
13.14 Operating practice Not usually considered. Not usually considered. Preliminary assessment of Detailed assessment of operating
and procedures operating procedures. Consider procedures. Operating
specific requirements and procedures should be developed
conditions that may require consistent with business
attention (eg implementation of objectives (eg safety standards,
novel technologies, language production rates, costs,
and translation of operating productivity, product quality) and
manuals, unfamiliar working obligations (eg community
environment, cross-cultural commitments, environmental
education, cultural obligations). targets). Consider specific
threats and how these will be
managed (eg cyclones, supply
chain disruption, emergency
plans).

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14 Cost estimation
Conceptual Order of magnitude Prefeasibility Feasibility
14.1 Milestone summary Generally based on comparable Preliminary estimate for various Detailed estimate for selected Final estimate based on multiple
projects, suitably scaled and options. Major capital and option. Direct costs developed quotations and detailed
factored. operating cost elements are from first principles, other costs evaluation and costing for all
identified, benchmarked to may be factored. Benchmark elements.
similar projects. estimates to similar projects.
14.2 Estimate Capacity factored, parametric Preliminary equipment list, other Some quantification, single Detailed quantification, multiple
methodology models, scaled historical disciplines factored, quotations, site specific rates and quotations and detailed
(general) information. infrastructure assumed; infrastructure costing, some pricing/costs for all direct and
significant factoring. factoring that covers all direct (ie indirect components of the
construction labour, equipment, project
bulk materials, provisions,
allowances, tax, duty etc) and
indirect (ie EPCM, owners,
contingency, risk, escalation,
capitalised spares, study costs
etc) costs related to the project.
14.3 Level of engineering Minimal, generally based on Usually 0-5%, with general Usually 5-15%, with all general Usually 15-40% completed, with
design required to other operations. layouts produced. layouts completed and sufficient general layouts finalised and
produce estimate drawings completed to achieve detailed drawings/take off's of
design level estimation. appropriate equipment completed
Generally preliminary take off's for all packages (structural, civil,
for all disciplines. mechanical, electrical, piping and
instrumentation).

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14.4 Capital cost Uses comparisons with similar Based on similar operations plus Costs developed from first Major equipment and bulk
estimation basis (local where possible) site knowledge where available. principles (ie bulk materials costs material costs based on firm
operations. Major cost elements identified generally based on preliminary specifications and written
and aggregated from engineers quantities with unit rates quotations from several
in each discipline. Comparison calculated although some suppliers. Unit rates, applicable
to industry benchmarks and factoring is acceptable). Single specifically to the project, should
based on broad or general source quotations for major be established for materials,
concepts (production methods items. Process flow diagrams to labour (including productivity),
and flow sheets may be preliminary stage with sufficient freight, subcontract rates etc.
assumed). bench scale test work completed Where practical, contracts with
to determine process flow sheet major suppliers in place – subject
and approximate material to go ahead. Project
balance. management and construction
schedules available to illustrate
expenditure pattern ('S' curves).
Closure costs and any statutory
requirements should be allowed
for. Benchmark capital
intensities against comparative
projects.
14.5 Expected accuracy Not possible to accurately Typically -20 + 35%. All accuracy ranges should be All accuracy ranges should be
of capital estimates. quantify. Typically ± 50%. reported at 90% confidence level reported at 90% confidence level
for the central estimate. for the central estimate.
-15 + 25%. -10 + 15 %.

14.6 Operating cost Based on similar operations. Based on similar operations plus Costs developed from first Final operating costs estimated.
estimation basis site knowledge where available. principles based on production Fully detailed costs prepared
Major raw material costs schedule and required inputs (eg based on all operating inputs and
identified and estimated from mobile equipment, operating costs. Benchmarking to similar
known industry benchmarks. personnel, maintenance, operations to be presented.
consumables, raw materials,
G&A, transportation etc).
Benchmarking to similar
operations to be presented.

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14.7 Expected accuracy Not possible to accurately Typically + -20 to 30%. + -10 to 20%. + -5 to 10%.
of operating cost quantify. Typically ± 35%.
estimates
14.8 Owner’s cost As a percentage of total. Outline as a percentage of total. Preliminary calculation with some Detailed calculation with support
estimate components based on historical documentation summarising the
percentages of items whilst methodology and parameters
others are allowances based on used to prepare the estimate.
experience. Should cover the
following main areas; owners
costs during implementation, pre-
operational capital, recruitment
and training of the operating
workforce and all capital costs
excluded from EPCM contractor’s
scope.
14.9 Expected levels of Up to 50%. Usually up to 30% of total, and Usually 15-25% of total, and Usually 10-15% of total project
contingency generally calculated as a generally calculated as a estimated cost, and based on a
percentage of the project percentage of line components. rigorous detailed analysis of the
estimated cost. project capital.
14.10 Escalation Usually not considered – Usually not considered – Preliminary calculation, covering Detailed calculation following a
assumed included in the financial assumed included in the financial the expectation of cost three step approach of; project
modelling. modelling. movement brought about by cost breakdown, cash flow of
escalation through the FS and each cost element/category, and
implementation phases. application of escalation indices
and calculation of escalation.
Escalation factors are
judgemental and should be
based on market conditions,
country issues, statistics, and
experience.

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14.11 Other indirect, EPCM As a percentage of total. Outline of costs based on Preliminary calculation. This will Detailed calculation and agreed
etc costs percentage of total. Future study cover EPCM, first fills, spare rates based on the finalised
costs also to be included. parts, construction support costs, project scope. Indirect costs are
working capital and future study those that are not directly
costs. attributable to the supply and
delivery of construction
material/equipment included in
the direct cost section of the
estimate. This includes, but is
not limited to; any construction
support costs, EPCM costs,
capitalised spare parts and first
fills, and working capital.
14.12 Deferred, sustaining Based on similar operations, may Early evaluation of post start-up Preliminary calculation of capital Detailed calculation of all capital
and replacement be on a dollars per tonne basis. costs which are expected to be costs to be expended during to be expended during the
capital capitalised. May be on a dollars operations for replacement of operating life of the project.
per tonne basis. fixed and mobile plant, and also Covering, but not limited to,
for any planned expansion replacement of mobile equipment
activities. and fixed plant. This also covers
any expected expansion activities
or costs that are expected to be
capitalised.
14.13 Closure costs An assessed number, based on An assessed number, based on Closure estimates generally to Closure management plan and
experience or other operations. experience or other operations. OoM standard, developed with cost estimates to Rio Tinto
reference to the current site and requirements (generally to PFS
operations. level). To include all pre-closure
study work and post-closure
monitoring. This forms the basis
of the operation’s closure
management plan.

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15 Tax, legal, commercial

Conceptual Order of magnitude Prefeasibility Feasibility
15.1 Milestone summary Initial assessment based on Preliminary assessment of tax Detailed investigation of tax and Tax, fiduciary, duty and royalty
comparable country, industry and regime, royalty and duty. duty regime. Where appropriate implications thoroughly
product situation. Potential ownership structures royalty and equity participation understood and modelled. Legal
should be identified. negotiations are underway. agreements and major contracts
are finalised.
15.2 Economy Initial understanding of the Macro and socio - economic Evaluation of the country and Update country evaluation for
regional industries and basic conditions in the host country regional economies should be any changes during study if
economic structure of the host and region are understood. completed at this stage. Identify necessary.
country. Appreciation of specific national and regional
national/state/provincial/local budgetary and economic impacts
government jurisdiction over the of project.
project. Legal incentives should
be defined.
15.3 Taxes, duties and Taxes and duties assumed from Taxes and duties assumed from Investigate tax and duty regime, Finalise assessment of tax and
royalties comparable operations in the comparable operations but identify all payments required duty payments. Royalty and/or
host country. Royalties current tax regulations checked if and where possible obtain tax stabilisation agreement
considered only if known or possible. Significant tax/duty indication of level from completed.
significant. risks in regime identified. appropriate authority (eg tax
Preliminary view on likely royalty holidays, recoverable import duty
level established (if expected to or VAT). Fully account for
be paid). Identify mechanisms to tax/duties in cash flows. Initiate
mitigate tax risks (eg stabilisation royalty or tax stabilisation
rights, double taxation treaties negotiations if required.
and investment protection
treaties).
15.4 Title/state or local General understanding of forms Confirm validity of title and Where state/local participation Update in response to any
participation (if any) of title granted under the mining conjunctive title rights. High-level rights exist, consideration of changes during study stage.
code. Identification of formal or estimation of valuation impact of approaches for managing risks
informal requirements for state or state/local participation. and quantification of value
local participation in projects. impact.

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15.5 Equity purchase Estimation from potential Generally not applicable to equity Generally not applicable to equity Transaction valuation and
price (applicable in counterparty or public transactions such as M&A, JVs transactions such as M&A, JVs analysis is completed. Final
case of information. and farm-in and participation and farm-in and participation equity purchase agreement is
equity/participation agreements. agreements. agreed.
transaction) In the case of opportunities that In the case of opportunities that
provide Rio Tinto with staged provide Rio Tinto with staged
entry options into early-stage entry options into early-stage
development projects, and where development projects, and where
Rio Tinto is granted management Rio Tinto is granted management
rights consideration should be rights consideration should be
given on a case by case basis to given on a case by case basis to
the appropriate development the appropriate development
milestones that will need to be milestones that will need to be
satisfied as part of the approval satisfied as part of the approval
process for on-going capital process for on-going capital
appropriations. appropriations.

15.6 Commerical Develop a view of how the equity Generally not applicable in case Generally not applicable in case Ownership/participation
structure ownership/participation in the of equity transactions such as of equity transactions such as agreements negotiated and
business for the opportunity M&A, JV’s and farm-in and M&A, JV’s and farm-in and completed.
might be organised. Consider participation agreements. participation agreements.
business structure, ore deposit
(and associated rights and
royalties), land (including
indigenous ownership), products,
intellectual property and
technology (including
relationships with potential
partners). Note existing
interests, eg JV, government.

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15.7 Sales contracts, off No contracts. Commercial terms No contracts. Commercial terms Investigate typical industry terms Major customers should be
take agreements from Rio Tinto Evaluation from Rio Tinto Evaluation and contract structures and use identified and detailed off take
and/or treatment guidance notes or comparable guidance notes or comparable to inform valuation estimates. plans developed. Proposed
charges operations and local conditions operations and local conditions Review terms to ensure flexibility contracts or agency agreements
are used if known. are used if known. and best practice based on to market the product should be
business unit learnings globally. documented and written
expressions of interest from likely
customers developed in
conjunction with Sales and
Marketing. The likely impact of
terms/penalties on revenue
based on ore grade variation
should be analysed to choose
optimal terms. Flexibility and
best practice should be ensured
through iteration with marketing.
15.8 Freight terms/costs Initial estimate based on Preliminary estimate based on Detailed estimate based on Firm quotations to chosen
comparable operations. comparable operations and actual location and likely markets or estimates from Rio
advice from Rio Tinto Marine and customers using advice from Rio Tinto Marine and Rio Tinto
Rio Tinto Economics. Tinto Marine and Rio Tinto Economics should be obtained.
Economics. Any likely freight Ability to secure freight and port
synergies should be identified. capacity should be demonstrated
and any cross-business unit
freight synergies finalised.

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16 Business analysis
Conceptual Order of magnitude Prefeasibility Feasibility
16.1 Milestone summary First indication of potential value Valuation of a number of Comparative valuation of multiple Valuation of the selected option
and understanding of where the alternative options. options and selection of preferred that can serve as a basis for final
value is coming from. option. project approval.
16.2 Financial model High-level standalone project Flexible model aimed at Develop sufficiently detailed Detailed and internally reviewed
description valuation model. assessing NPV of multiple model for valuing multiple options model to fully assess project.
options. and reflecting all significant
elements of the project.
16.3 Model structure Simple structure which reflects Usually a simple design to allow Contains sufficient detail to Detailed model of selected
the usually high level inputs flexing of options and production model increased resolution of option. Inputs are usually broken
(such as notional production rates but should at least reflect a inputs and outputs (eg detailed down into their fundamental
schedules, indicative revenues split in variable and fixed unit production schedules, inventory drivers and costs so that they
and costs). Preferably able to costs for the major functional stockpiles), allowing detailed can be aggregated for analysis
differentiate between fixed and activities. analysis of value drivers. All purposes.
variable costs. costs in expended currency.
16.4 Sensitivity and Simple sensitivity analysis. Critical factors and drivers Sensitivity analysis for multiple Detailed sensitivity and scenario
scenario analysis Consider reverse economic affecting value should be options. Analysis usually analysis for selected option.
analysis to estimate required identified. Sensitivity and conducted for critical factors and Analysis should assess project
project scale and other scenario analysis for multiple drivers affecting value and may robustness to key value drivers
parameters (eg grade) to meet options. include engineered assessments and quantify upside and
financial hurdle. If resource publication is sought, rather than simple flexing of downside uncertainty. Sensitivity
an NPV positive base case financial modelling parameter (eg to exchange rate should be
scenario should be demonstrated engineered analysis of alternate tested if applicable.
and documented to support the production rates).
public position.

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17 Project risk
Conceptual Order of magnitude Prefeasibility Feasibility
17.1 Milestone summary Opportunities and fatal flaw High level risks are identified, Identification, evaluation and Detailed identification, evaluation
threats relative to business evaluated and where possible management of risks relative to and management of risks for
objectives are identified, managed, especially the full range of project and selected option, including
evaluated and where possible opportunities. Risk profiles for operational objectives. Risk execution activities and
managed. different options are developed. profiles for remaining options are operational readiness.
refined. Prioritisation of work and
development of robust
management strategies for key
risks.
17.2 Scope and context Focus on opportunities (including Scope broadened to include the Scope extended to consider risks Detailed identification, evaluation
looking outside of currently high level risks associated with relative to the full range of project and management of risks for
assumed scope) and fatal flaw undertaking the project especially and operational objectives, selected option, including
concept threats relative to opportunities. including Rio Tinto policies. execution activities, and ramp up
business objectives (especially Also consider risks associated Less focus on opportunities as to steady state operations.
with regard to moral and legal with the next study phase. they should already be included Brownfields projects should
licences to operate). Ensure all in the scope of this or other include interface risks on both the
Ensure different options are
concept options are considered studies, or have been discarded, project and operations.
considered in sufficient detail to
in broad terms. eg as not cost beneficial.
facilitate comparison of risk Include participation of the
Study team and representatives profiles. Ensure remaining options are appointed design engineers,
from relevant areas should considered in sufficient detail to construction contractors and
Expand participants to include
participate in the risk analysis. facilitate comparison of risk future operators.
specialists from sources external
to business unit. profiles. Quantification of risks may be
Draw participants from study appropriate at this stage.
team, the operation, other related
operations and disciplines in
Rio Tinto, T&I or Group staff, and
external specialists.

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17.3 Activities Risks are identified, evaluated Risks are identified, evaluated Risks are identified, evaluated Risks are identified, evaluated
and, where possible, managed and, where possible, managed and, where possible, managed and, where possible, managed
throughout the study. throughout the study. throughout the study. Regular throughout the study.
Significant risks identified Significant risks identified and documented updates of the Significant risks identified through
through other discipline specific through other discipline specific risk register are expected. other discipline specific risk
risk analysis and management risk analysis and management Significant risks identified analysis and management
processes should be reviewed processes should be reviewed through other discipline specific processes should be reviewed for
for inclusion in the project level for inclusion in the project level risk analysis and management inclusion in the project level risk
risk analysis where appropriate. risk analysis where appropriate, processes should be reviewed analysis where appropriate.
especially baseline social and for inclusion in the project level Regular and documented
environmental studies needed to risk analysis where appropriate. updates of the risk register are
support project approvals and Risk profiles to facilitate expected with evidence that
achievement of schedule comparison of remaining options mitigation strategies are being
objectives. are refined. applied and the risk profile is
Risk profiles to facilitate appropriate for the stage of the
comparison of different options project.
are developed.
17.4 Preparation for next Risk management strategies are Risk management strategies are Robust risk management Robust risk management plans
stage developed for significant risks developed for significant risks strategies are developed for are developed for significant risks
(Class III and IV) that remain at (Class III and IV) that remain at significant risks (Class III and IV) (Class III and IV) that remain at
the end of the study. the end of the study. that remain at the end of the the end of the study.
study.

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Glossary and acronyms

Term/acronym Meaning

3D Three dimensional

ARD Acid rock drainage

BED Business evaluation and development

Brownfield Describes a project location where a pre-existing operation exists or existed.

CP Competent Person (as defined in the JORC code)

DTM Digital terrain model

EPC Engineering, procurement, construction

EPCM Engineering, procurement, construction and management

Farm-in A commercial arrangement for a third-party to acquire an interest in a lease,

concession or operation

FIFO Fly-in/fly-out

FS Feasibility study

G&A General and administration

GPS Global positioning system

Greenfield Describes a “virgin territory” project location with no pre-existing operation.

HAZID Hazard identification study

HAZOP Hazard and operability study

HR Human resources

HSE Health, safety and environment

IC (Rio Tinto) Investment committee

IR Industrial relations

JORC Joint Ore Reserves Committee

JORC code The Australasian Code for reporting of Exploration Results, Mineral
Resources and Ore Reserves

JV Joint venture

LME London Metal Exchange

M&A Mergers and acquisitions

NGO Non Government organisation

NPV Net present value

OoM Order of magnitude (study)

ORSC (Rio Tinto) Ore reserves steering committee

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P&IDs Process and instrumentation diagrams

PEG Project evaluation guidance note

PFS Prefeasibility study

QA/QC Quality assurance/quality control

RC Reverse circulation (drilling)

SDG Study definition guidance notes

SEIA Socio-economic impact assessment

SIL Safety integrity level

SMP Safety management plan

T&I (Rio Tinto) Technology and Innovation

TEG Now TRE Evaluation but previously was the Technical Evaluation Group.
The TEG is the acronym that now refers to the review process

VAT Value added tax

WBS Work breakdown structure

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Index
B
Baseline studies
Communities............................................................................................................................55
Environmental..........................................................................................................................50

C
Climate & Energy
Climate change........................................................................................................................53
Environmental targets & stratetgies.........................................................................................51
Power and energy demand .....................................................................................................43
Power and energy infrastructure .............................................................................................44
Power and energy supply and delivery....................................................................................44
Closure
Costs........................................................................................................................................74
Environmental targets & stratetgies.........................................................................................51
Waste dump design .................................................................................................................32
Water related closure planning................................................................................................52

D
Data acquisition
Assays and product quality......................................................................................................16
Bulk density .............................................................................................................................17
Drill hole location and down hole surveys ...............................................................................15
Environment.............................................................................................................................49
Geological mapping .................................................................................................................18
Geophysics ..............................................................................................................................16
Geotechnical............................................................................................................................24
Hydrology and hydrogeology...................................................................................................27
Processing ...............................................................................................................................35
Sampling and data quality .......................................................................................................16
Social & communities ..............................................................................................................54
Survey and topography............................................................................................................15

E
Engineering
Access roads ...........................................................................................................................41
Accommodation .......................................................................................................................45
Communication systems..........................................................................................................45
Engineering resources.............................................................................................................64
EPCM selection .......................................................................................................................64
Execution planning ..................................................................................................................62
Geotechnical design parameters.............................................................................................26
Infrastructure general...............................................................................................................40

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Level of engineering design.....................................................................................................71

Mine design .............................................................................................................................31
Mine ventilation........................................................................................................................32
Off-site facilities .......................................................................................................................46
Plant design .............................................................................................................................38
Plant design drawings..............................................................................................................37
Ports.........................................................................................................................................45
Power and energy infrastucture...............................................................................................44
Rail...........................................................................................................................................45
Site layout ................................................................................................................................38
Social infrastructure .................................................................................................................46
Support infrastucture ...............................................................................................................43
Transport requirments .............................................................................................................42
Waste disposal facilities...........................................................................................................43
Water management facilities ...................................................................................................42

H
Health & safety
Infrastructure design ................................................................................................................41
Operational readiness..............................................................................................................66
Product stewardship ................................................................................................................52
Project execution planning ......................................................................................................62

M
Mineralogy
Geology & mineralisation controls ...........................................................................................18
Mineralogical assessment .......................................................................................................17
Ore characterisation ................................................................................................................35
Product stewardship ................................................................................................................52
Waste rock characterisation ....................................................................................................19

P
People
Employee and labour relations ................................................................................................69
Labour demographics, education and culture .........................................................................66
Mining manpower requirements ..............................................................................................34
Operating cycles ......................................................................................................................67
Operating philosophy and management..................................................................................67
Organisation ............................................................................................................................67
Performance management and training ..................................................................................68
Recruitment and training..........................................................................................................68
Strategic capability and capacity .............................................................................................13
Product
Chemical characterisation .......................................................................................................36
Freight costs & terms...............................................................................................................77
Marketing strategy ...................................................................................................................14
Marketing technical specification.............................................................................................47

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Mine geology ...........................................................................................................................23

Mineral resource reporting.......................................................................................................22
Ore reserves reporting.............................................................................................................30
Physical characterisation .........................................................................................................35
Price and pricing strategy ........................................................................................................48
Process specification ...............................................................................................................39
Stewardship .............................................................................................................................52
Strategic production planning ..................................................................................................14
Supply & demand forecasting..................................................................................................47
Transportation..........................................................................................................................42
Production
Commissioning ........................................................................................................................65
Mining schedule.......................................................................................................................33
Operating costs........................................................................................................................72
Operating practices and procedures .......................................................................................70
Permitting.................................................................................................................................60
Processing schedule................................................................................................................37
Ramp-up and handover ...........................................................................................................65
Strategic production planning ..................................................................................................14

S
Sustainable Development
Communities............................................................................................................................54
Environmental impact ..............................................................................................................49
Management processes and systems .....................................................................................66
People.......................................................................................................................See People
Value chain ..............................................................................................................................47

W
Water
Environmental targets & stratetgies.........................................................................................51
Groundwater management......................................................................................................28
Pit slope stability ......................................................................................................................29
Power, water, pumping systems..............................................................................................32
Supply & demand ....................................................................................................................28
Surface water management ....................................................................................................27
Underground excavations........................................................................................................29
Water balance..........................................................................................................................38
Water efficiency and recycling.................................................................................................39
Water management facitilies ...................................................................................................42
Water resource assurance.......................................................................................................39

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Appendix 1 – References to key documents

A1.1 Policies

Document Name Location

The way we work [Link]
Risk policy and standard [Link]
The way we buy [Link]
Communities policy [Link]
Antitrust policy and guidance [Link]

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A1.2 Guidance

Guidance Topic Location

Business evaluation
IC guidance [Link]
PEG [Link]
Business modelling [Link]
Technical evaluation
Study definition [Link] →quick links
Guidelines for project development [Link] →quick links
Capital cost estimation working practice [Link] →quick links
Operating cost estimation working practice [Link] →quick links
Guideline for preparation of a PEP [Link] →quick links
Project Risk
Risk electronic guidance information system [Link]
Risk analysis and management [Link]
Sustainable development [Link]
[Link].sust_dev
Energy and climate change [Link]
Energy and climate change guidance [Link]
Closure [Link]
set
Marketing evaluation guidance notes [Link]
es/Marketing%20Evaluation%20Guidance%20Notes%[Link]

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A1.3 Standards

Document Name Location

Corporate governance standards [Link]
Communities standard [Link]
Closure standard guidance [Link]
Corporate health standards [Link]
Corporate safety standards [Link]
Corporate environment standards [Link]
Resource and reserve standards [Link] →mining/standards

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Appendix 2 – Milestone summary

Conceptual Order of magnitude Pre-feasibility Feasibility

1. Strategy Potential market(s), product(s) Mine/production development Optimal development sequence Confirm that development
and distribution channels are sequences are assessed and a and production capacity is sequence and production
assessed. Possible narrow range of preferred identified. capacity is optimal to achieve the
mine/production development production options and capacities business opportunity.
sequence and capacities are identified.
identified that provide a potential
business opportunity.
2. Geology Initial assessment of resource Preliminary resource estimate Resource estimates rigorously Confirmation, validation and
potential based on all data and identification of potential developed and usually reported refinement of resource models
sources including exploration and deposit extensions. Preliminary externally. Mineralised and waste and rock characterisation.
historical records; limited direct characterisation of mineralised rocks are fully characterised to
information. and waste rocks. support all other study activities.
3. Geotechnical Initial geotechnical assessment Preliminary assessment and Detailed assessment and Confirmation, validation and
to assist with identification of modelling based on limited direct modelling of local conditions. refinement of models. Long-term
preferred mining options. information. Regional context is Hazards are assessed and monitoring equipment may be
understood. monitoring programme installed.
developed.
4. Hydrology and Initial assessment of hydrological Preliminary assessment and Sufficiently detailed assessment Confirmation, validation and
hydrogeology and hydrogeological conditions. modelling based on limited direct and modelling of local conditions refinement of models. Long-term
information. Regional context is to support preferred option. monitoring equipment may be
understood. Monitoring programme is installed and dewatering may
established. commence.
5. Mining Initial mine design and production Evaluation of a range of mining Identify the preferred mining Mine design finalised and
schedule are developed. options (eg sequence, method) method, sequence, capacity and production schedules optimised.
with trade-off assessment (eg design from a range of possible Detailed (executable) production
open pit versus underground). options. Reserve estimates are schedules usually developed for
usually externally reported. the initial mining area.

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Conceptual Order of magnitude Pre-feasibility Feasibility

6. Process Potential process route(s) are Preliminary evaluation of a range Identify the optimal process Finalise and freeze flow sheet
identified based on comparable of processing technologies, route, technology, capacity and including validated mass, energy
situations. options and capacities. Identify design from a range of possible and water balances. Design
data and test work needs. options. The selected process criteria, equipment specification
must be demonstrated as and raw material suppliers
technically and economically identified.
viable.
7. Infrastructure Initial assessment of Preliminary assessment of Preliminary engineering designs Basic engineering designs
infrastructure requirements infrastructure requirements with indicating infrastructure layouts, signed-off by operations.
usually with minimal design and simple designs for the various transport routes, power and
engineering input. options being considered. water facilities.

8. Marketing Initial assessment of market Potential options for product Detailed assessment of product Finalise product volume,
implications for potential product volumes, specification and prices volume, specification, delivery specification, packaging and
volumes, quality and logistics assessed. Target end-use and service requirements. logistics requirements. Major
requirements. markets, and customers should Commercial options should be customers are identified,
be identified. evaluated. contracts or agency agreements
drafted.
9. Environmental Initial assessment of Preliminary assessment of key Detailed assessment of Finalise environmental
environmental impacts and environmental impacts, mitigation environmental impacts assessment and mitigation plans.
regulatory environment. measures and approval timelines commenced and approval Closure plan (excluding actual
for options being considered. timeline for selected option. operating data) is complete and
Preliminary closure plan has environmental management plan
been developed. advanced.
10. Social and Initial assessment of social, Preliminary assessment of Work programmes are underway SEIA submitted with continued
communities economic and cultural heritage political, social and community (eg consultation campaigns; consultation and feedback on
impacts. impacts. Consultation, community engagement). findings. Workforce development
communication, and community Detailed assessments are and housing plans finalised.
relations strategies are complete.
developed.

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Conceptual Order of magnitude Pre-feasibility Feasibility

11. Permits and Initial assessment of political and Exploration, land access (for Some permitting and approval Surface, sub-surface, easement,
approvals regulatory environment, exploration purposes) and applications should be submitted transportation rights and
ownership rights and land access mineral rights should be granted. and negotiations underway. No ownership resolved, applications
requirements. Permitting and approval process significant impediments to approved and agreements in
for project development should reaching agreements and place (subject to corporate and
be known and timeline estimated. obtaining approvals. government conditions). Where
agreements are yet to be
finalised, no significant
impediment should exist.
12. Project OoM scope of work, schedule PFS scope of work, schedule, FS scope, schedule, budget, Project execution plan is
execution and budget developed. budget, organisation structure organisation structure and finalised.
planning and contract strategy (eg contract strategy (eg
engineering) developed. engineering) developed.
preliminary project execution plan
has been developed.
13. Operational Not usually considered. Preliminary assessment of labour Assessment of labour skills, Workforce is identified,
readiness requirements, operating training, operating philosophy, recruitment and training plans
philosophy, organisation and organisational structure and developed. Operating strategy
technologies. technology. Operating cycles and cycles finalised and aligned
and practices are outlined. with productivity assumptions.
Operational procedures are
developed.
14. Cost Generally based on comparable Preliminary estimate for various Detailed estimate for selected Final estimate based on multiple
estimation projects, suitably scaled and options. Major capital and option. Direct costs developed quotations and detailed
factored. operating cost elements are from first principles, other costs evaluation and costing for all
identified, benchmarked to similar may be factored. Benchmark elements.
projects. estimates to similar projects.
15. Tax, legal, Initial assessment based on Preliminary assessment of tax Detailed investigation of tax and Tax, fiduciary, duty and royalty
commercial comparable country, industry and regime, royalty and duty. duty regime. Where appropriate implications thoroughly
product situation. Potential ownership structures royalty and equity participation understood and modelled. Legal
should be identified. negotiations are underway. agreements and major contracts
are finalised.

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Conceptual Order of magnitude Pre-feasibility Feasibility

16. Business First indication of potential value Valuation of a number of Comparative valuation of multiple Valuation of the selected option
analysis and understanding of where the alternative options. options and selection of preferred that can serve as a basis for final
value is coming from. option. project approval.

17. Project risk Opportunities and fatal flaw High level risks are identified, Identification, evaluation and Detailed identification, evaluation
threats relative to business evaluated and managed, management of risks relative to and management of risks for
objectives are identified, especially opportunities. Risk the full range of project and selected option, including
evaluated and managed. profiles for different options are operational objectives. Risk execution activities and
developed. profiles for remaining options are operational readiness.
refined. Prioritisation of work and
development of robust
management strategies for key
risks.

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Revision history

First Issue Effective date Prepared by Approved by

1.0

Revision Revision date Revised b y Approved by Reason for change

Number

(Document owners will be prompted annually to update content, but no changes may result).

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