Connecting...

Blog Img

Contracts in a Mining Sustaining Capital Environment

Back to Blogs

Mining doesn’t stop once a project is constructed; it’s just the beginning of the next stage of the lifecycle, and that in turn creates more mining jobs. One job discipline is contract management.

To keep mine operations running safely and efficiently, owners invest in sustaining capital projects - that is ongoing work to maintain, optimise and extend the life of a mine. These projects include equipment replacements, infrastructure upgrades, plant improvements, tailings expansions and environmental compliance works. Successfully delivering these projects relies heavily on contracts management.

What is Sustaining Capital?

To understand whether working in sustaining capital is right for you, it’s essential to know what a sustaining capital project is in a mining environment. Sustaining capital is a recurring investment to maintain safe operations and production. Unlike major expansions, these projects are smaller, shorter and run alongside ongoing operations. Some examples of sustaining capital projects include:

  • Replacing crushers, conveyors or pipelines

  • Upgrading processing plants to improve recovery

  • Expanding tailings storage

  • Updating camps, roads and power systems

Precision and efficiency are critical since these projects must fit within operational budgets without disrupting production.

The Role of Contracts Management

Contracts management jobs are vital as these professionals create the framework for delivering sustaining capital projects, defining responsibilities, costs, risks and performance standards between owners and contractors. These job functions consider:

1. Fit-for-Purpose Contract Models

Choosing the right contract model balances speed, cost and risk and can vary for different scopes:

  • Minor works contracts - small, discrete scopes

  • Schedule of rates contracts - variable quantities like earthworks

  • Lump sum contracts - fixed scopes with minimal risk

  • Panel or master service agreements - for recurring works with pre-qualified contractors

2. Speed and Flexibility

Sustaining capital projects often arise from operational needs. Contracts management must allow for quick mobilisation and streamlined procurement.

3. Risk Allocation

Contracts management clearly defines who is responsible for safety, schedule delays and site access. Mine owners provide explicit scopes, while contractors follow strict safety and compliance standards.

4. Stakeholder Integration

Project controls must coordinate closely with operations, considering production schedules, shutdowns and site access.

5. Governance and Compliance

Even small projects require strong governance, covering procurement rules, environmental regulations, local content and community engagement. Good contract management ensures visibility across multiple projects.

So, what does all this mean? While individual sustaining capital projects may be smaller than major expansions, their cumulative impact on mine performance and longevity is enormous and that’s where contracts management professionals are equally important for the sustaining capital phase.

For more information on sustaining capital jobs, get in touch with our team or search current jobs.

Latest News &
Industry Insights.

​Exclusive to our client edition of the Titan Insight newsletter.