The importance of productivity and a high-performing culture has never been so important to mining industry executives.
The mining boom has reached a peak and ‘volume frenzy’ has disappeared.
Added to fluctuating commodity prices and an increasing cost base, the industry has been experiencing reduced profits and asset values have been challenged.
This has led to a strong emphasis on productivity in all areas including lead times for achieving capital investment, the diminishing supply of easily accessible ore is, and how infrastructure and supply chain issues are dealt with.
There is no better example than BHP CEO Andrew Mackenzie, who is prioritising productivity with the cost of BHPs next iron ore expansion falling by up to $US1 billion ($AU1.09bn).
In Western Australia, BHP iron ore chief Jimmy Wilson now says he can deliver an additional 50 million tonnes of annual iron ore production at $US100 a tonne or less.
This is down from recent briefings where analysts were told an expansion of the West Australian iron ore operations from capacity of 220 million tonnes a year to 270 million tonnes would cost between $US100 and $US120 a tonne of annual capacity.
Furthermore, the mining industry is generating 56% less output per hour of work employed compared with 2002 and support services have ballooned since 2002 accounting for 13% of hours accrued, up from 3% in 2002.
Productivity is the key to moving forward: simply put, the industry needs to focus on process improvements, de-bottlenecking and new technology to increase their efficiency and bottom line.
The Mining Productivity & Technology Forum will be the first event for Australian Mining on this topic.
The event is specifically designed for top C-level executives and senior managers, heads of operations, mining managers and business improvement departments who will hear insights from industry leaders and participate in discussions on how to improve processes to ensure future success.
Topics will include: removing business silos, understanding and managing the mining value chain, automation, cost optimisation, power usage, management and efficiency.
To view the agenda, see who will be speaking or find out more about the event, please visit:
Don’t miss out as space is limited. Register your interest to attend today by emailing: firstname.lastname@example.org