Context:

Our client, a remote North African open pit gold mine, faced rising operating costs and a falling gold price. A feasibility study to expand the production of the mine had been completed, but the decision to proceed was conditional on the site realising significant improvements in productivity and cost performance, and reaching the targets defined in the feasibility study. PIP was engaged to identify a pipeline of unit cost reduction opportunities across all departments, work with the client to implement these ideas, and develop internal (client-led) Continuous Improvement capabilities.

What we did:

Established performance management and continuous improvement disciplines by installing PIPware on site. Implemented 27 cost reduction and productivity ideas across mining, maintenance, processing and site services departments.

Established a cascaded priority focused performance management system by introducing weekly Results-Actions-Review (RAR) meetings from General Manager to Department Managers and Department Managers to Superintendents.

Client Achieved:

  • 32% reduction in production costs per ounce, the lowest since site commissioning.
  • $65m in cost reduction and productivity benefits ‘locked in’ prior to PIP’s departure, with a further $49m in annualised improvement in the pipeline.
  • 40% reduction in mining cost per tonne:
    • Haul truck fill factor increased by 8%
    • Loader productivity increased by 23%