MERCHANDISER
In South Africa, productivity in the mining sector had dropped to 50-year lows in February 2013. Chile’s productivity slumped on falling ore grades, energy
shortages and industrial disputes. Canada also experienced a sharp decline. In the mid-1980s, Canada’s productivity rate across all sectors was 91% of the US rate. That figure has since fallen to 80%. In the mining and oil and gas sectors in particular, productivity declined 37% over the past decade.
Productivity Improvement Focal Areas In light of these figures, productivity improvement has become the industry’s new mantra. To ensure a sustainable performance gain, companies should focus on four core areas: 1. Mine planning. As the workforce ages, many experienced mine planners are reaching retirement. Unfortunately, placing under-qualified staff into critical mine planning roles can result in operational under- performance. To avoid significant value erosion, mining companies must make an effort not only to retain experienced mine planners but also to attract and train a new generation of talent. The aim is to maintain the skills necessary to create effective mine plans and track daily adherence to production volumes, mining locations and mineral content. 2. Budgetary and risk management. Independent
project analysis in Australia shows that approximately 65% of mega-projects in excess of AU$500 million fail to deliver
targeted value. To improve project outcomes, mining organizations need a clear line of sight on actual expenditures, one that provides insight on costs per unit
of production. Engineering, procurement and
construction management (EPCM) operators, mine operators and manufacturers also need the ability to share this information throughout the project lifecycle to prevent cost overruns and mitigate risk. 3. Strategic workforce planning and training. During
the boom years, the mining industry lost a wealth of cost management talent. Now companies must rebuild that skillset. At the same time, they must foster workplace practices that restrain spending while keeping employees engaged through programs like flexible rosters, training and long-term career development. 4. Systems-enabled transformation.
Productivity
is about maximizing throughput per unit of time, per unit of quality and per unit of cost. As such, system transformation should begin by addressing core business drivers such as operating time and rate. Approached effectively, it can turn a disjointed reporting framework into a set of streamlined management dashboards that report on actual operational performance – improving both individual accountability and on-site decision- making. •
Tracking the trends 2014
www.deloitte.com
500+
industry delegates
7-9 April 2014, Santiago, Chile
World Copper Conference
Up to 20% discount on group bookings
Key speakers include:
- Thomas Keller, CEO, Codelco - Diego Hernández C., CEO, Antofagasta Minerals - Hennie Faul, CEO, Copper, Anglo American - Peter Beaven, President, Copper, BHP Billiton - Garry Jones, CEO, London Metal Exchange
- Abraham Chahuan, CEO, Compania Minera Antamina S.A
For more information and to book your place:
www.worldcopperconference.com Media Partner:
www.worldcopperconference.com
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