Overarching or specific?

The number of competitors in the market has

increased, but there is a strong sense that the

market itself has also increased in size. The

interruption in the global project pipeline, as a

result of the GFC, has simply delayed mostprojects’ implementation, which is putting a

huge demand on resources now to make up

the backlog. There is also still a certain amount

of fragmentation in the market, with generalist

EPCM groups without a mining focus

struggling in some cases to remain customer

relevant. There is no doubt also that the

number of very large projects is increasing.

At the same time, in some regions, many of

the kick-started projects are only at scoping,

PFS or DFS stage and so to some extent in

certain areas there are still limited calls for

EPCM/EPC resources. There are also projects

not yet sanctioned to move forward to

implementation because of the lack of

available credit and funding.

There are still also different tiers of EPCM

companies. A source at Jacobs Engineering

commented: “There are a select number of

companies who are really capable now of

delivering the larger EPC/EPCM mining &

minerals processing projects. The imperative of

the prior year’s global financial crisis (GFC)

forced EPCM companies to focus on delivering

what they do best, to the highest possible

standard. Anyone who has participated in this

space previously faded somewhat as their

relevance diminished.”

Ian Cluroe, Global Director, Marketing at

Hatch states: “There really are only a handful

of companies that have the experience and

resources to deliver really big projects from

concept to completion. There are smaller

players who are focusing on specific

commodities, or in specific geographies, and

no doubt they are helping to deliver capacity in

a business that’s booming. But for big projects,

Hatch and a handful of other companies are

known as the go-to guys in the global mining

sector.”

In terms of the large projects and the use of

consortiums, Julien Denegre, Mining & Metals

- Business Development Manager at Technip,

comments: “The size and complexity of

projects often suggest that they must be split

into numerous construction packages

supported by many supply and service

packages. The potential risks associated with

construction and other uncertainties require

that the size of the contract packages be

severely limited in size to open the opportunity

for lump sum contracts where risks are carried

by the contractor. For large scale projects,

customers generally appoint a prime contractor

to manage the project on behalf of the

customer as its EPCM contractor. All authority

will remain with the customer, however, the

EPCM acts as agent in defining work scope,

negotiating contracts and administering the

work of other consultants, suppliers and

construction contractors.”

It is not just about size, but also ability to

deliver in all parts of the world. A Jacobs

spokesperson stated: “In the emerging new

global resources environment, the sheer

magnitude and complexity of major resource

developments means that EPCM companies

also require strong cultural, safety and

environmental awareness; an ability to work in

a ‘virtual’ environment; manage external

providers and sub-contractors; and first class

project management skills – in addition to the

world-class technical skills naturally demanded

by clients.”