Mining company strategies depend heavily on the current state of the market. When the market booms, companies develop marginal high-cost, low-productivity mineral deposits, supported by high commodity prices. But when the market is down, companies respond by slashing costs – a natural response to a shifting market cycle.
It is practically impossible to control the vicissitudes of the world’s economy that lead to shifts in currencies and prices of commodities. But, miners can control the way they operate. Companies are now focusing on reducing their costs and will have to move away from reactive cost cutting methods and create sustainable programs for cost management. Here are some strategies to consider.
Manage budgets and risks better
An independent project analysis conducted in Australia showed that almost 65% of large projects (the ones that cost more than AUD 500 million) are unable to deliver the value targeted. In order to improve outcomes, you company could:
Better planning of mines
Before a company can start excavating, it is imperative to have a plan in place that will ensure maximum productivity in the least amount of time. In order to improve productivity, you can:
Use technology to improve efficiency
When you improve productivity, you increase output for every unit of time, every unit of quality, and every unit of cost. While humans are up to the task of doing the best they can to optimize productivity, the use of technology can do away with a lot of human errors and do a lot more.
To get the most out of the people who work for them, companies need to know what to exactly expect from the workforce and use the existing talent pool to make the most of what is available. To optimize the current workforce, companies can:
Bringing down costs is not very difficult. However, its sustainability is a different challenge altogether. To bring down costs so that they stay down, companies can try the following: