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Helping a major precious metals miner optimize its operating model, leading to US$500 million value improvement

Helping a major precious metals miner optimize ...

Refining operations for volatile conditions.

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A global precious metals mining company faced challenging macro-economic conditions, an oversupplied market, cost inflation and a deteriorating competitive position. Management had declared a US$500 million cost reduction target and engaged a team of Global Strategy Group's (GSG) professionals to review their operating model across all direct production activities and indirect functions.

GSG helped identify and implement value opportunities, worth US$500 million, into a new operating model that promoted safe production, accountability and excellence, and enabled a simplified structure. These opportunities included:

  • Improved labor productivity through a reduction in blasting losses and optimized crew skill mix and contractor ratios
  • Integrated production planning to reduce production variability and improve production plan accuracy
  • Reduced consumption of mining materials through better monitoring, standardized materials/equipment, improved reclamation and salvage repair
  • Improved efficiency through a shared services model for indirect functions.

 

 

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