How a mining company boosts value chain through process improvement

Background 

Our client is a diversified natural resources company with significant mineral holdings in Asia. They are the largest copper producer in their home country and in the Asian region.   

Their copper mine is operated by a wholly owned subsidiary, which is a primary producer and exporter of copper concentrates in its home country.  

The subsidiary is looking to optimise its operations in line with the expansion of its beneficiation plant. This subsidiary is also exploring opportunities for the development and commercial distribution of marketable by-products from the processing of its copper concentrates, including molybdenum, magnetite, and pyrite.  

The Challenge 

Renoir was engaged to help reduce the subsidiary’s operating costs. The project covered all aspects with a projected minimum savings of US$5.16 million on an annualised basis.  

The project was divided into several work streams, with the following objectives:  

• To improve planning and productivity within the mining and milling operations.  
• To improve maintenance planning, productivity, and reliability, and to review current spares and procurement practices.  
• To optimise the organisational structure for greater efficiency.  

Project Approach 

A Management Action Team (MAT) was established for three work streams: Mine and Mill Operations, Maintenance and Procurement, and Organisational Design. Each workstream was led by:  

• Chief Operations Officer for Mine and Mill Operations 
• Mill Maintenance Division Head for Maintenance and Procurement 
• Assistant Vice President for Human Resources and Administration for Organisational Design 

These workstream arrangements enabled direct engagement with the relevant departments and stakeholders in the implementation of the required improvements, resulting in maximum impact and buy-in.  

Implementation 

The project kicked off with Renoir’s Focus Process®, a methodology developed from our experience with hundreds of successful engagements. To develop solutions for the workstreams, we analysed the existing processes, adapted and incorporated best practices throughout the project.  

The subsidiary’s team members went through a learning experience that fostered commitment and ownership of the solutions being implemented. All of this was rolled out simultaneously, ensuring that the solutions were aligned with the organisation’s goals and corporate identity.  

Our consultants worked with each MAT, to implement the new Management Control System (MCS). Employees were trained, coached, and supported in the implementation of the new MCS.  

Elements of the MCS outlined responsibilities and provided clear work processes for implementers. The management team conducted timely operational performance reviews to ensure better operational management, control, and communication within the teams.  

In addition, Renoir developed an organisational design manual to assess and validate the skills and knowledge of each team member. A new organisational structure was designed for each department associated with the workstreams.