How Mining Operations Drive Cost Savings and Overcome Challenges
SGS Maine Pointe authors explore the root causes of mining industry project failures and identify solutions
Plymouth, Mass., September 6, 2023 -- The mining and energy sectors are confronting a confluence of obstacles, from resource limitations and accountability issues to escalating operational expenses. This juncture of challenges necessitates innovative solutions. Two new mining industry reports, released by global supply chain and operations implementation consulting firm, SGS Maine Pointe, a member of the SGS Group, explore the root causes of these pervasive problems and present comprehensive solutions designed to effectively take mining projects to the finish line, while reducing operating costs.
In the report, “Propel complex mining and energy industry projects to the finish line,” the authors explore how Total Value Optimization (TVO)™ addresses the root causes of the most complex problems facing mining projects. The report highlights common problems that include lack of accountability and resources, poor communications, and lack of planning, and shows precisely how to mitigate those issues to make the project succeed and make the company stronger.
“Every part of the supply chain has a role in the solution,” said Collin Ziemerink, co-author of the report and Head of Industrial Manufacturing & Services at SGS Maine Pointe. “Leveraging the principles of TVO, planning, procurement, operations, logistics, and communications are fully aligned. As even the most complex projects reach the finish line, the changes made are then sustained throughout the company, delivering a successful project and a stronger company for future engagements.”
The second report, “Five approaches to reduce mining operating costs,” explores the reality that mining industry costs have risen almost every year in the past decade. According to the report, mining costs in 2022 alone saw increases of 88% for fuel and power, and 47% for maintenance and repairs. Alongside more stringent carbon reduction standards and a talent shortage, reducing operating costs has become a major challenge. In this report, the authors show precisely how to remove impediments and reduce costs by taking a full mining value approach, while also increasing profits and freeing up working capital.
“Reducing costs and freeing up working capital are essential if a mining company is going to survive,” said Ziemerink. “The solution, as laid out in this paper, lies in considering the entire supply chain, from mine to port and beyond. New ways to reduce operating costs may include leveraging data-based planning, strategic sourcing, sustainability solutions, operations excellence, and mineral services, which can ensure that even in volatile times, the mining industry can meet demands, reduce costs, and preserve profits.”
About SGS Maine Pointe
SGS Maine Pointe is a global supply chain and operations consulting firm that drives compelling economic returns for clients. Our Total Value Optimization (TVO)™ strategy improves EBITDA, cash, growth, and resilience across planning, procurement, logistics, operations, and data analytics.
Working with executives and their teams, we break through functional silos and rapidly transform the plan-buy-make-move supply chain, with an average ROI of 6:1.
Our unique 100% guarantee of engagement fees is based on annualized savings.
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 98,000 employees operate a network of 2,650 offices and laboratories, working together to enable a better, safer and more interconnected world. SGS has been delivering ESG and sustainability solutions and services to clients for the past 25 years and has been a carbon neutral company for the past seven years.