Will your Mining Company thrive beyond the upswing in the mining cycle?
PWC's 16th annual review of the global trends in the mining industry confirms an upswing in the mining cycle, which they attribute to rising global economic growth and a recovery in commodity prices.
The (2008) downturn in the mineral industry forced mining companies to focus on cost saving strategies and improving their operational efficiencies. Three of our major customers' COO's recently confirmed to us that 90% of their efforts are centered on compliance to the short term plan, fighting not to lose a shift's production.
Now, before the upturns sweep us away in its gathering momentum, is the time to reflect on the wise, words penned by Winston Churchill as the theme of his final volume on the history of WWII:
How the great democracies triumphed, and so were able to resume the follies which had so nearly cost them their life
In 2015 the Top 40 Mining companies had impairments of $53 Billion and by 2016 had written off the equivalent of 32% of Capex spent since 2010. (Mine 2016 - PWC )
As mining companies seek to implement their growth strategies they have to ensure that they chose a Digital Ecosystem of Partners and have a Digital Strategy that lead them to a solution that gives them insight and transparency into the allocation of capital, whilst continuously improving on the operational efficiency achieved during the downturn. At our own peril we ignore Hegel's axiom:
“We learn from history that we do not learn from history.”
For this reason, MineRP and our ecosystem partners Deloitte, GE and SAP collaborated to conceive a blueprint for the Digital Mine that will enable mining companies to launch into this upturn and thereafter navigate the global economic cycles. Drawing on valuable client input, cumulative experience, domain expertise, proven integration platforms and expert systems the Blueprinted Solution will:
Run and analyze multiple economic and mining scenarios, informing wise capital allocation
Track capital spend
Allocate and report in real time on true amortization and actual production costs to material being mined
Enable an effective Short Interval Control Process
Respond rapidly across all planning horizons to unexpected changes in economic or mining conditions
Our joint solution enables mining companies to institutionalize efficiency gains achieved during the downturn into their business processes, make capital spend transparent and manage compliance to plan - thereby preventing history from repeating itself and positioning mining companies for long term sustainability and growth.
For more information on how the MineRP Ecosystem and our Solutions will enable your company to thrive beyond the upturn visit our Website