ENGINEERS Australia is holding a talk on 9 June 2009 about factors involved in success or failure of resource transformation plants in Australia.
According to the organisers, 53 resource transformation plants, costing more than $100m, were built in Australia between 1993 and 2006. $32b was invested in projects to transform minerals and energy. Plants turned natural gas into Liquefied Natural Gas, various ores to concentrates or metals, and mineral sands into intermediate or market products.
However, delays in commissioning, inability to reach nameplate capacity, and problems in keeping the plant operating meant $12b of that investment was lost. Plants which used innovative processes, promised large added value, or had significant government involvement failed most often and most disastrously.
On the other hand, plants that used refinements of century-old technology and increased unit value more modestly almost always succeeded.
The speaker Alan Tomlinson will use public domain information to examine the factors involved in the success or failure of the plants, and look at the most significant success factor: the core competence of the management team.
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