Technical Due Diligence - What is it and Why do You Need It?

What is it and Why do You Need It?

Technical due diligence is a process that assesses the technical aspects of a company project. The goal is to identify any potential risks or issues that could impact the company's operations, value, or future. This process is usually conducted by an independent third-party who has experience with the type of business and industry the company belongs to. This person will review internal documents, interview employees, and inspect property. The goal is to identify any potential risks or issues that could impact the company's operations, value or future.

Technical due diligence can be used for many purposes including: -Underwriting loans for companies -Valuing companies -Determining whether a company has been hacked -Determining the adequacy of protection for intellectual property -Evaluating a potential acquisition-Underwriting loans for companies-Valuing companies-Determining whether a company has been hacked-Determining the adequacy of protection for intellectual property. Even if one does not plan to use it for any of these purposes, it can still be very helpful in conducting due diligence.

What are the Most Important Locations to Review for Environmental & Technical Concerns?

It is important to review a potential site for environmental and technical concerns before making a final decision. It is imperative for a project to be environmentally friendly, generate minimal waste and conserve energy. The most common environmental and technical concerns are soil contamination, water quality, groundwater, air quality, hazardous materials, and flooding.

The environmental impact of mining can be devastating to the local environment. Soil contamination is one of the most common environmental concerns at mines and quarries. Groundwater may become polluted with chemicals from mining wastes, as well as from acid mine drainage and coal fires. Air quality at or near mines is often degraded by dust, vehicle exhaust, coal combustion products, or other substances associated with mining. Hazardous materials can also be inadvertently released during transport, such as in the case of an oil spill in the construction site area.

The environmental impact of mining may also include contamination of soil, groundwater, and air due to destabilization or displacement of rocks. Minerals may be extracted through the use of cyanide or sulfide solutions which can create toxic leachates that pollute groundwater and seepage from mining sites can contaminate water supplies. One of the greatest polluters is the extraction of gold, which is an extremely heavy metal and often found with other metals such as platinum or silver which can cause a great deal of harm to the environment if not managed properly. It is important to take into account the location’s history of hazardous waste dumping or other pollution when reviewing for these concerns. If the site is property-owned, the owner is responsible for any cleanup and remediation.

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