‘BIGGER is not necessarily better … being the BEST is’

Defining a Mining Operation’s Best Value Option.

The operating principles followed by established mining operations are often linked back to historical expectations, relationships and tolerances. With a view that ‘bigger is better’ so operations have strived for more; more hoist, more loads, more capacity and more output. The dynamics of the commodity markets robustly question this approach. 

‘BIGGER is not necessarily better … being the BEST is’

As expectations change so the operating, planning and design principles must change. 

By spending time to understand the complex relationships between the technical and the financial, from the pick-point to the port, operations can develop an understanding of the forces that will shape their future at least as well as those that have shaped what they are today. These discovery processes place the intellectual power back in the hands of decision makers

From a base of knowledge identifying the correct course of action is to define the ‘Best Value Option’ 

We have spent time with operations to unbundle these dilemmas and then reason as to why operations, that while still profitable, become unable to provide the basis of a stable future in a changing world. 

Case study: Southern African Mining Complex.

What: Large underground mining complex producing 13.5Mt saleable thermal coal product. 

Problem: Weighty overheads and a falling annual turnover. 

Approach: Detailed the design and delivery of a revised operating strategy that took the mining business that while still profitable was struggling to provide stable performance to become one focused on its core business, maximising value and performing at industry best. 

Outcome: Defined and delivered a strategy with a significantly reduced yet stabilised production forecast and set to deliver a $300m improvement in the business’s NPV over the following five years.

Case Study: UK Deep Underground Mine

What: A large mining operation with deep community relationships presenting a high degree of uncertainty for its long-term future. 

Approach: High intensity options review of mining, processing and product choices.

Reorganisation of the business and challenged the historic status quo - from ‘Pick Point’ to ‘Point of Sale’. Actions included a staff engagement and reduction program – including a restructuring of the Senior Leadership Team.

Designed and delivered an enhancement to all operating and business governance reporting structures to form a more integrated and operationally focused management team – including a restructured reward scheme – including pension, allowances and bonuses. 

Supporting activities: Establishment of a Lean Six Sigma leadership, learning and competency program to deliver a site culture of continuous improvement. This provoked a culture of transparency, diversity and fairness to enable staff to challenge, innovate and embrace change, diversity and inclusion.

Outcome 1: $70m turnaround from a three-year loss-making position to profitability and agility to match market demands and variability.

Outcome 2: Transformed site safety culture from one with a history of unwanted events to a site proud of its success in both personal safety and major hazard management. 

Outcome 3: Award of a complex planning application for a major development within a National Park. Achieved consent of operations for a further 25 years.