Planning for the closure or transformation of a large asset that is reaching its end of life is not a core business strength of most large asset owners such as mines, power stations and factories.
At Zutari, we recognise this. It’s why we designed the Zutari-Asset-to-Asset-Approach (ZA2AA) through which we guide clients to sustainable asset transformation.
The ZA2AA is a structured methodology through which we simplify the complex process of asset transformation in a way that will ensure the original asset owner’s financial sustainability, the communities living around the asset’s socio-economic sustainability, and environmental sustainability.
Our approach resonates well with the challenge Madiba issued to all of us in the ‘Make Poverty History’ campaign:
“Sometimes it falls upon a generation to be great. You can be that great generation… Of course the task will not be easy. But not to do this would be a crime against humanity…”.
Through ZA2AA we apply our aspiration to engineer a positive impact. We are able to do so well, since we have all the different disciplines required for integrated asset transformation in-house. By utilising our deep technical skill, we get to engineer the future of this continent. A future of jobs. A future of health. A future of self-realisation. A future long overdue. We aim to play our part in creating the great generation Madiba spoke about.
No sector or asset is the same – there are differences in the spatial, legislative, socio-economic and political construct between. Every mine, power station, manufacturing facility and petrochemical facility, requires a flexible and adoptable approach. This is what variable ZA2AA allows us to do.
The typical skills sets forming part of the ZA2AA are:
- Best practise programme management aligned with project management body of knowledge (PMBoK) to ensure that the cost, schedule, risk, quality and scope are effectively managed
- Our award-winning contextual risk tools that ensures the project is executed with an embedded critical success factor focus that enables value-adding risk management
- Systematic innovation that is entrenched in the way we work through our customised integration of the best design to innovate and systems thinking toolsets
- Asset digitisation focusing on the reality capture of assets and the creation of 3D models to inform our asset approach
- Navigating the complexity of national, provincial and municipal legislation to ensure that the original asset owner can effectively reduce or remove its liabilities without the risk of a legislative breach
- Market-leading stakeholder engagement and communication strategies to enable stakeholder buy-in and support
- Infrastructure optimisation and repurposing to reduce both the original asset owner’s closure costs and the new asset owner’s input cost
- Supplier development and small medium and micro enterprise (SMME) identification and development through the asset-based community development (ABCD) toolset
- Labour force reskilling through future-ready portable skills programs to ensure that workers losing their jobs through the closure of the original asset can find alternative employment through the new assets that will have been created or in their labour sending areas
- Environmental rehabilitation to reduce or eliminate the original asset owner’s financial and legal liabilities associated with closure
- Unlocking funding and financing to reduce the financial burden on the original asset owner
- This approach enables the original asset owner to continue to focus their money and time on their core business and places the financial responsibility for the long-term socio-economic sustainability of the area on funders and financiers that has socio-economic upliftment as their core business
- Best practice decommissioning, demolition and disposal planning to ensure all infrastructure that can’t be repurposed is decommissioned, demolished and disposed of in a cost-effective, health and safety (H&S) conscious and legislatively compliant manner
- Cost-effective asset management focussing on the optimisation of operating costs whilst the original asset is winding down to its end of life
- Addressing contaminated natural resources to reduce liabilities. Almost without fail it is possible to create a circular economy that can transform the original asset owner’s contaminated natural resources into viable businesses for SMME’s or in some instances catalytic industries around which the economy of the area can be rebuilt
The ZA2AA is typically a nine-step approach customised per project:
Step 1: Conduct a design to innovate workshop, integrated with our award-winning contextual risk tools to ensure the client’s aspiration, critical success factors (CSFs) and the main risks that need to be mitigated throughout the project are identified.
Step 2: Do a full status quo investigation to understand the progress that has already been made. Based on the client’s aspiration and identified CSFs (developed in step 1) the gaps between where the client wants to be and where they are presently, are identified and agreed.
Step 3: Develop an integrated roadmap that visually explains all the main work streams and activities required to get to external investment readiness.
Step 4: All the identified and agreed gaps must generally first be closed before the integrated development concept can be developed. In some instances, it is possible for steps 4 and 5 to run concurrently.
Step 5: Based on the supporting infrastructure inputs (water, power, transport, logistics and buildings), the social inputs (skills, assets, networks and municipal capacity), the environmental and land inputs (critical bio-diversity areas, geotechnical considerations, agricultural potential, ownership and licencing), the legal inputs and the market analysis (what are the global, national and regional markets that can be exploited) an integrated development is developed. This concept maps the catalytic projects that can be developed as well as their circular economic supporting SMMEs.
Step 6: Complete feasibility studies for all the identified catalytic ventures and their supporting SMMEs.
Step 7: Source funding and financing for the various catalytic and SMME projects to reduce the capital expenditure of the original asset owner. The intent is that the original asset owner will have limited financial responsibility post step 7.
Step 8: Execute the various catalytic and SMME projects.
Step 9: Provide post-implementation support to the various SMMEs to ensure the long-term sustainability of their businesses.
Besides the technical know-how, Zutari has all the tools and mechanisms to help clients steer through the governance, programme feasibility, set-up, milestone measurements, assurance and reporting requirements, to ensure their boards, executive committees, stakeholders and managers are aligned to facilitate successful asset transformation.