Scoping Operational Readiness and Investigating Its Financial Impact in Capital Projects: A Study of the South African Platinum Mining Sector

Operational Readiness (OR) is a critical enabler of successful capital project delivery in the mining industry, ensuring that assets are capable of achieving steady-state operations that meet production, safety, and regulatory objectives. Originating in the United States nuclear sector, the concept has since evolved into a multi-disciplinary framework integrating safety, design, governance, and operational efficiency across various industries. Within the mining context, OR aims to align systems, equipment, processes, and personnel to minimise start-up delays, reduce rework, and mitigate risk, thereby enhancing profitability and accelerating value realisation. This study explores the financial impact of OR on South Africa’s platinum mining sector, where project-to-operation transitions often experience inefficiencies, cost escalation, and schedule overrun. A scoping literature review (SLR) was conducted to define and contextualise OR, identify its scope and core components, and assess its relationship with project handover performance and financial outcomes. The SLR findings were validated through ten semi-structured interviews with subject-matter experts and applied within a case study of a large-scale platinum mining project. The research employed a pragmatic, qualitative methodology consistent with an Action Design Research (ADR) approach, allowing iterative development and testing of a financial evaluation Model for OR. Results reveal that the inadequate and fragmented integration of OR across the project life cycle remains a primary cause of reduced ramp-up efficiency and delayed revenue generation. The study demonstrates that when OR is planned and executed as an early, structured process, it delivers measurable financial value. Quantitative evidence from the case study indicates schedule acceleration of four to six months, resulting in an improvement in Net Present Value (NPV) and an uplift in Return on Investment (ROI). Furthermore, OR contributes to the prevention of potential revenue leakage by reducing rework, safety incidents, and production variance during commissioning and start-up. The findings underscore the importance of institutionalising OR within capital project governance frameworks and adopting quantifiable readiness indices that link OR maturity to financial performance. The research concludes that OR should no longer be treated as a late-stage activity but as a continuous, lifecycle process that integrates design, operational systems, and human factors from concept through to handover. The study advances both academic and practical understanding by proposing a structured method for quantifying OR’s value contribution, thereby reinforcing its inclusion as a critical component of capital project planning and execution in South Africa’s platinum mining industry.

Grantor dc:publisher

Stellenbosch : Stellenbosch University

Year dc:date.issued

2026

Author dc:creator

• Du Toit, Lena Louise

Advisors dc:contributor.advisor

• Schutte, Corne
• Uys, Dirk Cornelius

Language dc:language.iso

en

Repository record dc:identifier.uri

https://scholar.sun.ac.za/handle/10019.1/135778

OAI identifier oai:identifier

oai:scholar.sun.ac.za:10019.1/135778