Exploring Construction Cost Risks in Mining Projects: Insights from the FEED Stage

The mining sector has become a vital part of the nation's development that provides economic opportunities. The unique character of mining projects adds a degree of complexity that distinguishes it from other sectors in the construction industry. Completing a project within the financial limits specified in the original contract agreements is quite challenging. This study aims to identify the critical risk factors affecting the mining industry, specifically during the Front-End Engineering Design (FEED). The risk factors were found from previous studies and contextually modified unitizing semi structured interview and thematic analysis. Exploratory factor analysis (EFA) was further utilized to determine the measure's factor structure and assess its internal consistency. The EFA and thematic analysis findings confirmed the eight (8) construct into which the risk factors are divided, including, project planning (PP) with expansion of project scope being the most critical factor, Technical (T) with design changes as the most critical factor, Geological and Geotechnical (GG) main factors is poorly understood geological and geotechnical aspects, Management (M) having delays in right of way acquisition as it most severed factor. Identifying and grouping these critical risks into categories provides a comprehensive framework for improving planning and decision-making, ultimately supporting more efficient and sustainable project execution in the mining.