Product Overview

When the global recession of 2008-09 hit, Rio Tinto was forced to reexamine its spending priorities. Knowing that the availability of investment capital along with commodity prices would eventually rebound and that project delays could have a negative impact on net present value, David Salisbury and his team were faced with the additional challenge of prioritizing the various aspects of the RCM project. These fell into several categories: (1) reclamation of the Magma Mine site, (2) research and development of the new mine, and (3) skill-development programs to secure a high-tech work force.

Learning Objectives

Analysis of which areas would provide the largest impact to spending reduction without inhibiting project progress and completion. How to negotiate when political factors are involved. Analysis of short-term savings versus higher costs in the future