Our client, a global gold mining company operating an open-pit and underground mine in West Africa, was producing gold at close to break-even point when gold prices were high. However, when the gold price dropped suddenly by 30% it resulted in a loss-making business. From the client’s perspective, uncertainty of future gold prices, significant supplier price increases, and ongoing operational inefficiencies were putting the viability of the operation at risk. PIP conducted a diagnostic which identified a range of opportunities to materially reduce the operating cost of the mine. Establishing a dedicated team responsible for implementing improvement ideas on a continuous basis was a key deliverable of this engagement.
What we did:
- 18% reduction in All In Sustaining Costs per ounce.
- 14% improvement in mill throughput, by stabilising mill input parameters, and increasing mill and crusher availability.
- 7% reduction in addressable spend.
- Establish a full-time and competent CI team, consisting of two members per department, with a dedicated CI Manager.
- Installed PIPware to ensure ongoing sustainability of the CI process and team.