When you research, remember to view real World data against a...

When you research, remember to view real World data against a DFS.

Why feasibility studies fail

There is no international agreement on the terminology for each stage of feasibility study and there is no agreed standard for quality or accuracy.

Surveys of many studies reported by RL Bullock in 2011 reveal that accuracy ranges are:

• Scoping -50% to +30%
• Prefeasibility -27% to +30%
• Feasibility -20% to +27%
• Detailed engineering -12% to +20%

These ranges are wider than generally understood but are constrained by what is practical. For example, many people expect a feasibility study accuracy to be +/- 10% but this is rarely achievable otherthan within the constrained boundary of the processing plant. Estimates for mining andinfrastructure are much less reliable. It takes twice as much effort (and cost) to reach +/- 10% as it does to reach +/- 15%. Bullock also reported that the average capital overrun (over the last 50 years) was 26%, with no evidence that estimation accuracy has improved over that period despite the use of computers. The average overrun has been worse in recent years due to rapid cost escalation. There have been many studies over the years that reveal the generally poor performance of feasibility studies.

https://amcconsultants.com/experience/why-feasibility-studies-fail/