How to Build a Culture of Operational Excellence in Mining
Mining companies are embracing operational excellence to remain competitive, profitable, and sustainable in a challenging and rapidly evolving industry.
Operational Excellence is the cultural and process foundation that enables mining companies to unlock real value. Companies that operate without a strong Operational Excellence mindset often struggle with performance improvement, change adoption and sustainability.
Largely driven by efforts to improve safety, increase operational efficiency, reduce downtime, improve cost performance, meet sustainability goals, and manage operational risks, many companies already have or are deploying an Operational Excellence framework of practices, tools, and behaviors. It combines process discipline with people engagement and data-driven decision-making.
The benefits of Operational Excellence
Mining companies that embrace Operational Excellence are realizing a range of measurable, quantifiable benefits across safety, cost, productivity, and ESG metrics. These gains often begin within months and scale significantly with sustained execution and digital integration.
There are many real-world examples of how mining companies are applying Operational Excellence in their operations and linking with the use of today’s developing technologies:
- When addressing equipment reliability issues, BHP deployed predictive analytics across its mobile equipment fleet, and reduced unplanned maintenance by up to 25%, thus improving asset availability, and saving millions in downtime.
- Rio Tinto leveraged bottle-neck analysis, short interval controls and Lean Six Sigma practices to address process optimization issues and used digital twins at its processing plants to optimize throughput and reduce energy use, while boosting recovery rates by 2–5%.
- After analyzing fleet performance and dispatch efficiency issues with continuous improvement kaizens and visual management/KPI dashboards, Newmont leveraged an integrated Operational Excellence dispatch system using AI that improved truck utilization and increased daily production by 7–10% at certain sites.
- An asset of Teck Resources used Operations Excellence processes and tools to better understand energy use through waste identification, energy audits and cross-functional teams to deploy AI-driven energy optimization, cut energy consumption by 9%, which contributed to both cost savings and ESG targets.
As with any performance change, organizations will vary focus as they mature. Early-stage Operations Excellence organizations focus on fixing the basics — stabilizing performance and embedding a management rhythm; while mature Operations Excellence organizations deliver strategic advantage — agile, data-driven, low-cost, and high-performing operations.
The bottom-line, Operational Excellence is the cultural and process foundation that enables mining companies to unlock real value. Companies that digitize without a strong Operational Excellence mindset often struggle with adoption and sustainability.
How to accelerate Operational Excellence maturity
USC Consulting Group is an operations management consulting firm that partners with organizations and coaches your people to significantly impact performance outcomes and accelerate Operational Excellence maturity.
USC brings a tailored, structured, and disciplined methodology, along with a range of tools and techniques we apply collaboratively with our client’s personnel. We work with our clients to find full operating potential and unlock the hidden value through Operational Excellence.
We identify waste, redundancies, and ineffective processes, and then rapidly recover the prioritized opportunities, and convert them to improvements in performance and operating profit. Further, our people embed with client teams to develop, enhance, prototype, validate and implement operational excellence strategies to drive, sustain and perpetuate improvements in mining operations, while changing how plans, schedules, and work is executed.
In short, USC implements measurable, sustainable changes that drive operational performance and financial improvements.
USC clients experience measurable operational and financial results that significantly improve both the efficiency and profitability of their operations such as:
- Enhanced Safety Performance (10–40% reduction in injury rates)
- Increased Production Throughput (5–15% increase in ore mined or tonnes processed per day, reductions in production losses, downtime, delays, and rework)
- Higher Recovery and Yield (2–5% increase in mineral recovery through process optimization)
- Improved Equipment Reliability & Availability (10–25% reduction in unplanned downtime; 5–15% increase in OEE)
- Lower Operating Costs (8–20% reduction in cost per tonne; reductions in overtime, fuel usage, maintenance, and material waste)
- Reduced Variability (Up to 50% reduction in cycle time variance in drilling, hauling, and milling)
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USC Helps You Tackle Key Challenges
- Optimize production strategies and increase mine throughput and mill recovery
- Predict asset integrity and reliability needs and improve time on tools and equipment availability
- Improve integrated mine planning across all time horizons to strategically & tactically impact performance
- Mitigate risks through stronger stakeholder partnerships, while removing redundancies in the supply chain
- Overcome cultural and organizational communication issues, while ensuring quality expectations
Do you want to understand how prepared your company is to build a performance focused culture that drives sustainable results based on an Operational Excellence foundation?
Want to find out more about how USC can help you unlock the hidden value lurking in your mining operations? Contact us today.
