Case study: Creating business value of $390M for a tier one miner

A global miner, and long-term client, was optimising asset purchasing decisions based on cost without regard to productivity impacts. This drove a procurement-lead process that failed to appropriately consider the business value of alternate technologies, and also enabled individual bias to influence outcomes.

Aurecon was engaged to develop an approach to drive consistency through major asset decisions focusing on key value levers for the business.

How we did it

We applied optimised decision-making theory to our client’s capital processes to develop a robust, repeatable and fit-for-purpose approach to drive value from asset decisions. Aurecon then worked as a delivery partner to implement this process on high value capital requests (ie >$5M). Key tasks included:

Aligning stakeholders through functional requirement sessions
Transforming data and benchmarks using the Quartile One Database
Application of bespoke analytical frameworks addressing cost, risk and performance
Delivering findings to meet internal standards and processes

Combining a structured approach with sophisticated data analytics and deep stakeholder engagement were key success factors in this engagement.

What we delivered

$390M value case over 11 capital decisions
A consistent approach in three different countries through a combination of in-person and remote engagement
Supporting digital toolsets to improve efficiency
An accelerated capital process for critical decisions

Case study: Delivering a 23 percent increase in production and 85 per cent share price uplift for this South African gold miner

Our client, an African underground gold mine, was experiencing year on year losses due to a decline in productivity, performance, and organisational leadership. Following several failed turnaround attempts and a significant company restructure morale was low. The deep, underground mining environment was also technically challenging.

Aurecon was engaged to support the business improvement effort and help return the site to stability and profitability.

How we did it

Our team used the Quartile One Database to rapidly identify and size potential opportunities. We then developed a bespoke business improvement program which focused on stabilising performance. This included:

planning and scheduling process to uplift and stabilise production
reliability and maintenance strategies
sustaining capital spend optimisation
planned shutdown management
parts provisioning, warehouse inventory and working capital

The Aurecon team of mining leadership professionals collaborated with the site leaders to empower them to drive and own the change.

What we delivered

Site cash flow positive for two consecutive quarters Q2/3 2019
Share price increased by 85 per cent (1^st Jan 2019 – 23^rd Jan 2020)
Site KPI’s improved dramatically

50% – 300% increase in MTBF for different mining fleets
23% increase in production and reduction in AIC
26% increase in TMM

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