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The return of the mega project?

Belt tightening in the mining sector over the past half-decade has meant that bigger has ceased to be better. Ultra-large projects with decades of life and multi-million-tonne annual production rates come with high risks and upfront costs that rise to prohibitive levels. And the certainty of the long-term production is matched by an uncertainty of long-term input costs; at one point, oil was in the triple digits and rising, after all.

The return of the mega project? The return of the mega project? The return of the mega project? The return of the mega project? The return of the mega project?

BMO: “In our view, we are exiting a hiatus in mega project development”

 

Instead, the recent orthodoxy - notably embraced by former large-project champion Barrick Gold (US:ABX) - has been a preference for lower-cost, smaller projects that prioritize margins over