Nevertheless, the level of wages in the mining industry remains relatively high, though this reflects the relatively high capital-to-labour ratio in this industry (Graph 8). One plausible explanation for at least some of the cost overruns is logistical problems affecting a number of projects. It seems that the engineering challenges for some projects are even more complex than initially thought.
There are cases of projects taking longer to complete, and/or requiring more investment to bring them to fruition. In other cases, the scope of the project may have changed. All of these things can alter the profile for mining investment by affecting both the timing and the amount of expenditure.