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

Operating Strategy & Cost – Success Story 2

Refining operations for volatile conditions.

Conveyor belt

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 $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.

  • 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.

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:

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