Tag Archives: Mining

Effective risk management, strategic planning, and operational excellence are crucial for minimizing NPV losses and maximizing project value.

Recent studies and industry reports suggest that a significant portion of mining projects may face challenges that impact net present value (NPV) negatively. Estimates range from 20% to 60% or more, highlighting the inherent risks and complexities involved in the mining industry. These challenges may include cost overruns, schedule delays, geological uncertainties, regulatory changes, and market fluctuations, among others.

In fact, in other reports, McKinsey says as many as 4 out of 5 mining projects come in late and over budget by an average of 43%. EY found that 64% ran over budget or schedule with the average cost overrun sitting at 39%, after studying 192 global mining and metals projects worth more than $1 billion.

How can mining projects improve project execution when it comes to budgets and timelines? Mining companies must grapple with many pain points – cost overruns, schedule delays, operational risks, supply chain disruptions, and geopolitical uncertainty.

One of the most critical areas involves owner-contractor relationships and creating a “culture by design” right from the beginning. Many owners outsource their projects to EPCMs that have historically operated in mining and are typically very engineering focused on getting the design as accurate as possible to maximize outcomes and benefits. While important, it only represents 35% or 40% of the total cost of a typical project and that’s not where we tend to see issues. The other 60%-65% of the scope is construction.

Organizational culture can significantly impact projects in several ways:

1. Risk Management: prioritizing safety, compliance, and responsible resource management can lead to better risk identification and mitigation strategies, reducing the likelihood of costly incidents and delays.
2. Employee Engagement: creating a positive and supportive culture to foster employee engagement, morale, and retention, leading to higher productivity, better teamwork, and lower turnover rates, which are critical for project success.
3. Decision-Making Processes: promoting transparency, collaboration, and innovation can lead to more efficient decision-making processes, enabling quicker responses to project challenges and opportunities – maintaining “single source of the truth”.
4. Adaptability: encouraging flexibility, learning, and continuous improvement enables organizations to navigate changing market conditions, regulatory requirements, and technological advancements more effectively.
5. Stakeholder Relations: valuing relationships with stakeholders, including local communities, governments, and investors, can enhance trust, collaboration, and support for mining projects, reducing the risk of opposition or regulatory challenges.

In summary, positive mining capital project performance, characterized by effective organizational culture, cost management, revenue generation, risk mitigation, and optimal capital expenditure allocation, can enhance NPV by increasing cash flows and reducing project risk.

USC partners with your organization and coaches your people to significantly impact performance outcomes and get your capital projects over the line on-time and within budget.

USC works with Owner Teams to execute capital projects and prepare for operational readiness during the early stages of the capital project development process, typically prior to the start of the construction phase. Operational readiness activities should be integrated into project planning and execution to ensure early adoption of the desired project culture while building buy-in from the various project stakeholders. There are three key elements to successful projects and capturing NPV.

Culture: Corporate culture is the shared values, attitudes, and practices that define the owner’s project, operation and interactions with its employees and various stakeholders. Culture clashes often occur when people from different backgrounds are assembled.

In capital projects, this often occurs when stakeholders are not aligned around a common set of goals and priorities, potentially resulting in the creation of an unsafe environment and/or low productivity and poor-quality execution. The imperative in this situation is to align stakeholders and define a “culture by design” at the top and instill the culture from the bottom up – deliberately starting at the work activity level.

USC works with successful owner teams to begin this journey from the outset of the project, and usually with a high sense of urgency.

Governance: While most recognize the need for establishing a robust governance framework, with a measurable set of metrics, many fail to execute. Typically, governance frameworks include everything from policies, regulations, functions, processes, procedures, and responsibilities, as well as how project progress and execution performance are tracked and reported.

It is not uncommon for EPCs and sub-contractors to use their own processes and systems to track performance – leading to various versions of the truth on the project. Inconsistent and inaccurate information results in inaccurate project execution planning, ineffective execution, and inaccurate status reporting which in turn results in schedule slippage and costly overruns.

USC works with project stakeholders to ensure governance goes beyond the decision-making of a single project, by developing a “Truth Center” where priorities are set, planning is done, performance is integrated, measured and communicated. By creating a single source of the truth and defining detailed work activities, including who is responsible for what and when, stakeholders can avoid the typical project execution pitfalls. By providing consistency, certainty and coordination, owner teams add to the stability of the project.

Readiness: How many projects are delayed due to poorly defined feasibility studies, engineering delays, late recruitment of key personnel and/or procurement delays? These early delays are difficult to overcome during the project and have a severe impact on NPV.

Many organizations are unclear when to start working on operational readiness – long ramp up times and slow operational start-ups are NPV killers, even for well executed capital projects. Key operations personnel should join the project early in the engineering phase to ensure the operability and maintainability of engineering designs. Additionally, they should play a role in defining and designing the culture for the project. Initiating the design of the operational processes and defining operational system requirements no later than the beginning of the construction phase and completed before starting the commissioning phase.

USC brings 55+ years of experience in shaping organizations and designing and implementing management operating systems and processes to assist owner teams in mitigating start-up risks and unlocking hidden-value to accelerate ramp-up success.

USC Helps You Tackle Key Challenges

• Aligning key stakeholders to a common goal and set of project priorities while defining a common culture
• Ingrain a safety-first approach into a planning and execution excellence culture
• Improving your NPV by developing management process and systems that enable in-shift execution optimization
• Ensuring project execution readiness prior to project startup and operational readiness prior to operational ramp-up

Do you want to understand how prepared your company is to manage project risks while accelerating work execution and operational ramp-up and what the key focus areas that will contribute to improved net present value?

Want to find out more about how USC can help you uncover the hidden-value lurking in your capital project?

For more information, let’s talk it through with a no obligation meeting with one of our executive team members. Email info@usccg.com to arrange a call.

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Mining and metals companies are implementing a range of strategies to enhance asset management and equipment reliability.

In today’s market, many senior executives leading natural resource companies hesitate in making additional capital investment and instead focus on what can be done to squeeze higher performance out of current assets. Consequently, companies are increasingly looking for ways to improve performance and returns with existing infrastructure.

The key approach to this challenge lies in upgrading and improving asset management capabilities. Many organizations have failed to deploy optimal asset management practices. This is surprising given that asset spend frequently represents 30% to 50% of the overall operating expenses. Shifting to a best-in-class asset management program will consistently deliver improved plant or equipment performance, lower operating costs, extend asset life, and generate a higher return on capital. Most recently, companies have sought to implement a range of strategies such as:

1. Implementing Asset Management Systems: Utilizing robust asset management systems to track equipment performance, maintenance history, and lifecycle costs, allowing for better decision-making regarding repairs, replacements, and upgrades. Digital technologies like IoT sensors, AI-driven analytics, and automation further optimize asset management.
2. Enhancing Maintenance Practices: Implementing proactive maintenance strategies like conditioned-based monitoring and reliability-centered maintenance to address issues before they cause failures. Utilizing data-driven insights, mining companies can optimize “time on tools” by identifying patterns and trends in equipment usage, maintenance needs, and performance. This allows for more precise scheduling of maintenance tasks, reducing downtime and maximizing the time equipment is operational.
3. Investing in Training: Providing comprehensive training programs for front-line management, maintenance and operations personnel to ensure equipment is used and serviced properly, reducing the likelihood of breakdowns due to human error and that access to equipment is available. Training personnel to utilize data-driven insights enables management to make informed decisions impacting “time on tools” and leading to improved equipment utilization and overall operational performance.
4. Improving Supply Chain Management: Ensuring timely access to quality spare parts and materials to minimize downtime caused by equipment breakdowns and repairs. Some are adopting blockchain for transparent supply chain management and better tracking of assets throughout their lifecycle.

The level of performance improvement companies can realize by implementing key strategies such as enhancing proactive maintenance practices, investing in training to improve skills and capabilities, improving supply chain management, and leveraging digital technologies and data-driven insights varies depending upon factors like current operational efficiency, the scale of implementation, and industry conditions. However, many can expect significant improvements in:

1. Safety: Proper training programs and proactive maintenance strategies contribute to a safe work environment by reducing risk of accidents and equipment failures.
2. Productivity: Proactive maintenance and digital technologies can reduce downtime, increase equipment availability, and optimize process execution, leading to higher productivity levels.
3. Cost Reduction: Efficient equipment usage and maintenance practices can lower operational costs by minimizing unplanned downtime, reducing repair and replacement expenses, and optimizing resource utilization.
4. Quality: Improving the essential management skills and work place practices result improve the quality of maintenance execution.

Overall, these strategies can result in substantial performance improvements, enhancing competitiveness and profitability for mining and metals companies.

USC Consulting Group partners with your organization and coaches your people to significantly impact performance outcomes and accelerate Asset Management and Reliability Excellence.

USC’s experience helping clients to shift asset performance by transforming and optimizing asset management capabilities and processes has repeatedly demonstrated the need to focus on the key levers and enablers to asset management and reliability excellence. Our asset management framework is designed to be pragmatic rather than conceptual, thereby leading to accurate, practical decisions about a client’s assets and aspirational outcomes.

The primary goal of USC’s asset management framework is to help our clients to implement and execute of a robust set of integrated processes and tools to manage and maintain their operational assets at the targeted service levels while optimizing life-cycle costs and asset life. This is accomplished by recognizing the needs to:

• Improve safe execution of work
• Increase asset life and reliability
• Improve productivity and cost performance
• Improve operational predictability
• Control material asset risks
• Develop competitive advantage

Our asset management and reliability framework helps clients identify an organization’s asset management maturity level and the areas and gaps that need to be addressed, by evaluating their strategic, tactical and operational levers and the enablers that comprise each.

Strategic (Lifecycle Management): A tailored maintenance program for each piece of equipment translates overall strategic objectives into executable plans for equipment upkeep. Our framework helps to structure and prioritize critical assets while defining a baseline operational ‘plan of action’ by determining strategies for maintaining equipment based on analysis of equipment capabilities, required performance levels, failure frequencies, and cost objectives. Optimal maintenance strategies are frequently a blend of preventative, predictive, operator-maintained, and run-to-fail options.

Tactical (Business Processes): Business processes bridge the gaps between the initial, ideal plan and the reality of ‘day-to-day’ operations, so the maintenance and reliability organization can make adjustments. Historically, many maintenance organizations have been poor utilizers of labor resources that result in low “time on tools” and excessive delays in repairing down or poor performing equipment.

Operational (Enablers): Enablers help to identify needed support to manage assets throughout their lifecycle in alignment with organizational aspirations. Leading asset management teams have also made changes in their organization structures and management practices to foster more action-oriented leadership that focuses on operational excellence, which usually requires a culture shift that must be relentlessly supported by the leadership team over the long-term. A heavy emphasis on management behaviors and company culture can help organizations make this difficult transition.

USC Helps You Tackle Key Challenges

• Optimize maintenance strategies and increase equipment availability operational output
• Predict asset integrity and reliability needs and improve time on tools
• Mitigate risks through stronger stakeholder partnerships, while removing redundancies in the supply chain
• Overcoming cultural and communication issues with contractors, while ensuring quality expectations

Do you want to understand how prepared your company is to drive needed asset performance and reliability improvements and what the key focus areas that will contribute to lower operating costs?

Want to find out more about how USC can help you uncover the hidden value lurking in asset portfolio?

For more information, let’s talk it through with a no obligation video conference call or a meeting with one of our executive team. Email info@usccg.com to arrange a call.

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Mining companies know all too well how expensive and dangerous the industry can be, and the demand for safer and more efficient training and procedures is increasing year on year.

The good news is that technology is keeping up with this demand and mining companies are starting to welcome and integrate innovative tech into their procedures.

From virtual reality training sessions to 3D mapping and printing, mining technology is helping streamline complex processes and tasks while reducing safety risks and costs.

In this article, we’re going to look at 7 mining technology innovations that are driving the mining industry forward and the benefits they bring.

1. Mining Drones

Drones have been around for the best part of a decade now and have become popular pieces of mining technology to access hard-to-reach areas and sites.

Drones are transforming the way operators map and survey mining sites. Surveying and mapping sites on foot are often expensive and time-consuming, but drones can relay geophysical imagery and data to surveyors quickly and efficiently without putting anyone’s safety at risk.

Another obvious benefit of drones is the time saved surveying sites and carrying out inspections. Operators are able to use drones to conduct visual inspections of sites and equipment as well as provide surveying and mapping data.

Companies like Exyn Technologies use drones to map out a 3-dimensional landscape of underground mines without compromising employee safety. These drones deliver hyper-accurate, survey-grade 3D maps in real-time. Plus, they’re able to navigate mines with little to no light with ease.

To learn more about Exyn technology and how it compares to more traditional methods, check out our study of Mining’s Top Innovations.

2. Virtual Reality

One of the best implementations of VR in the mining industry is how it’s being used to train employees. Mining companies can now use VR to provide immersive and realistic training simulations to allow employees to practice and navigate complex tasks in a safe and controlled environment.

VR also allows miners to virtually explore mining sites without needing to physically be there. Again, this negates the safety issues concerning visiting dangerous mining sites, but also saves money on travel expenses and transporting cumbersome equipment around the world.

Employees can practice using hyper-realistic machinery through VR, allowing them to experience operating heavy and often complex machinery off-site. This means trainees can learn and make mistakes on the job without severe consequences.

3. 3D Printing

3D printing looks to have a bright future in the mining industry. The ability to print and replicate complex and often expensive mining equipment can save companies a small fortune.

For example, if a piece of equipment becomes damaged during use, companies can use 3D printing to replace this equipment quickly and with incredible accuracy. Sourcing mining equipment is often costly and can take time to deliver specific equipment to mining sites. With 3D printing, both of these issues are negated.

While 3D printing is seeing a steady introduction to the mining industry, the potential it brings could be game-changing. Being able to instantly find, print and install specific tools or parts onsite to damaged machinery can reduce lead times and negate the need to transport expensive equipment to remote sites.

Plus, you don’t need a warehouse to store these parts – as every part can be stored digitally!

4. 3D Mapping

3D mapping is a form of mining technology that provides extremely accurate and detailed digital representations of mining sites.

For example, 3D mapping tools can highlight and pinpoint important areas for excavation, without wasting time and valuable resources. Additionally, it isn’t limited to just mining sites – 3D mapping can also be used to map quarries, waste deposits and transportation routes.

According to the statistics, the global 3D market is expected to grow from $3.8 billion in 2020 to $7.6 billion by 2025.

5. Artificial Intelligence

It would be an understatement to say that AI dominated the technology headlines of 2023. The introduction of ChatGPT, Midjourney and BingChat had (and continues to have) a massive impact on operational processes in almost every industry.

In the mining industry, AI is leveraging smart data and machine learning. Not only does this mean safer training and better mining processes, but it cuts the time to perform these tasks in half. This enables onsite engineers to make decisions faster and with more accuracy.

For example, AI is helping mining companies locate and extract valuable minerals with precision. Additionally, through advanced algorithms and data analysis, AI systems can identify optimal mining sites, predict potential resource deposits, and even guide exploration efforts with exceptional efficiency.

We’re already seeing how AI mining technology is aiding autonomous equipment like self-driving vehicles for tunneling excursions and optimizing drilling systems, and we’ll likely see more processes utilizing AI going into the future.

6. Automation

Automation is becoming increasingly popular in the mining world. Truckless conveyor-belt ore transport systems, subterranean electric vehicles and drones are some of the core automation shifts we’re seeing.

One of the biggest benefits of automation is that it allows mining companies to work around the clock without having to be physically present. By automating processes like ore delivery and transport, site monitoring and drilling and ventilation systems, miners do not have to jeopardize their health and safety by venturing into mines and handling hazardous materials and minerals.

Instead, miners can be trained on how to operate heavy machinery remotely from a control center above ground, providing a safer and more comfortable working environment.

Yes, time and resources will need to be invested in training miners on how to use this mining technology. However, the benefits far outweigh the cons. Miners face fewer health and safety risks, speed and efficiency will likely increase and in the long term the industry will experience significant cost savings.

7. Digital Twinning

Digital twinning allows mining companies to create a digital replica of their entire mining ecosystem. This includes mining equipment, geological formations and other relevant objects or assets.

By integrating data from sensors, IoT devices, and other sources, digital twinning provides a dynamic and detailed simulation that mirrors the physical reality of the mining site.

The main aim of digital twinning in the mining industry is to improve decision-making and operational efficiency. Digital twinning also allows miners to simulate various conditions and assess the impact of different variables on operations. This approach means fewer safety risks for employees.

Digital twinning is changing how mining companies do things. It lets them make a digital copy of their entire mining setup, including their equipment, geology, and processes, in an instance.

In essence, digital twinning is making mining operations more efficient, sustainable, and competitive.

Conclusion

The mining industry has been calling out for more innovative and efficient ways to streamline their processes and improve the safety conditions of their employees.

The mining technology at their disposal today is revolutionizing traditional mining processes and more companies will inevitably invest in this new technology.

Improved productivity, enhanced safety and substantial cost savings are just a few of the benefits technology brings to the mining industry. In the next few years, mining companies will need to adopt this technology into their processes to stay competitive and meet the growing demands for sustainability and efficiency.

Embracing these technological advancements is not just a choice; it’s a necessity for the mining industry to thrive in the evolving landscape.

*This article is written by Sophie Bishop. Sophie is an experienced freelance writer with a passion for sharing insights and her experience within the health and safety sector. Sophie aims to spread awareness through her writing around issues to do with healthcare, wellbeing and sustainability within the industry and is looking to connect with an engaged audience. Contact Sophie via her website: https://sophiebishop.uk/.

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Challenges are not new to the mining industry and 2024 is shaping up to hold several, from ESG pressure to labor shortages. But by focusing on challenges as opportunities to optimize, this resilient industry will no doubt weather these headwinds.

Here are the top issues, challenges and trends we’re seeing on the road ahead.

ESG (Environmental, Social, Governance)

According to 2024 research at EY, mining executives are looking at ESG as the biggest risk to their business — the third consecutive year ESG has received that dubious ranking. Why? It’s because of increasing scrutiny from investors and other stakeholders, and the likelihood of more strict regulations in the area of environmental protection and governance practices. All of which could lead to higher capital costs for mining companies that have to play catch-up in terms of ESG measures and compliance, like investment in new technologies and efforts toward carbon capture and storage. However, there’s a silver lining here for companies that take the lead in these efforts. It can put them on top in terms of attracting the best talent and capital investments, both of which are poised to be problematic this coming year.

Another thing about the environment …

In addition to mounting governmental pressure and stricter regulations in terms of ESG, there are other factors (and fallout) related to the environment as well. Shifting demand could mean changes in operations and production. For some companies, it may mean less demand for the materials they’re mining. For others, especially those that are focusing on nickel and lithium used in EV batteries, it means a boom.

Capital investments

That EY survey of mining executives cites capital as the second most pressing issue for the industry, behind (and hand-in-hand with) ESG. It’s shaping up to be a race for investments to facilitate the exploration for and extraction of minerals like nickel, copper and lithium, all crucial to the energy and environmental initiatives coming down the pike.

Delivering on growth projects

Linking to capital investments is the ability to develop new assets. Bringing new assets on-line faster, more responsibly and safer is more important than ever, especially in stable regions. Excelling in development projects is no longer a competitive advantage, it is an expectation from all stakeholders. Local communities and authorities expect a faster and larger return while shareholders expect a faster return on their investments. Executing growth projects on time, within budget and responsibly will define the exceptional from the pack.

Geopolitical instability

Ukraine, Israel, Gaza, and that’s just what’s making the headlines. Barring a holiday miracle, geopolitical instability isn’t going away anytime soon. In addition to the human toll, it means continued supply chain disruption, price volatility and more for the mining industry. It might mean trade tensions, embargoes, tariffs and other measures that impact the mineral trade, including “resource nationalism.”

Labor shortage

It seems like every year, we’re talking about a labor shortage in terms of recruitment and retention, and this year is no different for the mining industry. It’s particularly pressing because it’s a problem on two fronts. The labor shortage is impacting productivity today when you don’t have enough people to get the job done now. But it’s also the lack of a skilled workforce pipeline, people coming up and getting the skills they need to replace older, experienced workers who are retiring or leaving the workforce for other reasons. Workforce training, like we provide at USC Consulting, is the key to getting everyone on the same page, doing the same job the same way. It boosts productivity, which is an absolute necessity when you are feeling a labor crunch.

Technology

Technology and innovation will be big in 2024 for mining, as it will for most industries on the planet. Investments in automation will improve efficiency and safety, and it might help with the labor shortage as well. But technology advancements in mining aren’t really about the bots taking over people’s jobs. They can create new jobs and new opportunities for skilled workers which, in turn, will ratchet up productivity and process improvements mine-wide. Investments in new technologies will also help in areas of exploration, discovery and mineral extraction, again boosting productivity.

Cybersecurity

As data becomes king in all industries, not just mining, increasing digitalization heightens the risk of cyberattacks. Mining companies are considered high-value targets and are vulnerable to disruption, financial losses and more. Employee training, having a response plan in place and digital security measures are all important areas of focus for the coming year.

Remaining competitive through economic cycles or shocks

Many natural resource companies struggle to remain competitive through economic cycles or market and commodity shocks. The best possible operating efficiencies, productivity and lowest possible unit costs are the best insurance against these cyclical and adverse events. Companies design and develop good systems, but it is at the point of execution or operator level where the best distinguish itself from the others.

At USC Consulting Group, we understand what it takes to weather the headwinds for the Mining industry in 2024. We focus on optimizing processes and procedures, creating operational excellence and improving production to ultimately boost your bottom line and shore you up against whatever the coming year can dish out. Call us today to find out more.

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In September of 2022, autonomous aerial robot systems pioneer Exyn Technologies engaged USC Consulting Group to perform an independent evaluation of the AL4 Autonomy being utilized in the ExynAero underground drone.

The detailed study focused around one main objective; to gain practical exposure to the use of this technology by the survey team, while surveying active headings.

The ExynAero uses a LIDAR unit mounted to the drone in order to perform cavity mapping surveys inside of open stopes.

Over the course of a two-day visit USCCG was able to observe surveyors mapping live stopes utilizing the new drone technology on the ExynAero in comparison to the traditional boom and scanner CMS method. The observations yielded immensely positive results including:

• 45% faster surveying times underground
• 24% more volume realized in the same cavities as compared to traditional CMS
• Added safety by increasing distance between working area and the brow from 1-3ft to 50+ feet
• Reduced physical strain in set-up / take-down of equipment

As a follow-up to the evaluation of mining’s top innovations, USC Consulting Group worked with both Northern Star Resources Limited’s Pogo Mine and Exyn Technologies to prepare a white paper detailing these findings. This free white paper is available for download below:

Mining Benefits

There were many benefits that were observed during the study, which included improved safety, survey quality, and time savings.

“It (ExynAero) is infinitely safer to use… we’re nowhere near the brow now, doing jobs around the corner in some cases. The safety aspect is definitely one of the driving factors to why we purchased the gear.” – Chief Mine Surveyor, Pogo Mine

Working at or around the brow is widely regarded as one of the most hazardous places in any mine. The National Institute of Safety and Health (NIOSH) still lists it as one of the top five major causes of lost time injuries in underground mining, accounting for almost 10% of reported injuries.

Read the full report of benefits in our white paper: ExynAero vs Traditional CMS: A Study of Mining’s Top Innovations

If you want to learn more about this study or you’re interested in speaking with one of our Mining experts, please contact us.

*Photo credit: Richard Bishop

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USC Consulting Group is a world-class operations management firm that for the past 50 years has helped mining companies around the globe improve their business performance by increasing throughput, reducing costs, eliminating waste, increasing productivity, improving quality and leveraging existing assets.

Discovery

Your process improvement experience starts with USC digging in to begin to learn what truly makes your mining operations tick. We conduct detailed diagnostics, at the point of execution, whether underground, in the pit, surface, processing plants and support services to gain an understanding of impediments to increased performance. We’ll handpick a team uniquely qualified to address your specific challenges. We’ll observe how you do things around the clock, shift to shift, engaging directly with the people on the front lines – production, maintenance, engineering, and all support departments. Then we’ll collaborate with you to turn our findings into a detailed, workable plan, complete with tools from our well-rounded toolkit.

Implementation

This is the point when most consultants leave you with a binder and walk out the door. Instead, we’re developing a project plan, organizing work breakdown structure, developing performance goals, determining measurement metrics and making sure our jointly developed strategies get the desired results. Managing data and information in the mining environment is vital for continuous improvement efforts. As part of our implementation process, we will help you enhance how your organization makes use of key data and information. Knowing where the right data and information lives and putting it to value added purposes is essential to managing a successful business. Leveraging enabling technology such as Microsoft Power BI helps to achieve, and then sustain the desired outcomes. Our LINCS® Lean Information Control System will enhance your existing Management Operating System (MOS) by smoothing the change process, providing timely feedback on KPI’s to process owners and actionable business intelligence to key decision makers. We openly share the results of our collaboration to increase and maintain operating excellence, and provide the extra horsepower needed to put ideas (both yours and ours) into action. We help deliver on your goals by empowering your performance. In fact, we’ll help you audit, verify, and sustain results for years to come.

USCCG’s Mining team uses the best of tried-and-proven, and emerging, methodologies to bring about enterprise-wide Lean Transformation, resulting in significant operating and financial gains, all at a very attractive ROI.

Discover more about our work in the Mining industry and contact us today to start your process improvement experience.

Of the more than 62,000 employees working in American mines, over half staff maintenance departments, according to data from the National Institute for Occupational Safety and Health. This operational distribution has developed because of the ascendance of automated mining technologies, which have reduced the need for production personnel but increased maintenance demands significantly.

Despite the intensified focus on maintenance activities, firms in the sector continue to struggle in this area. Many are leaving efficiency gains and cost savings on the table. As research from EY revealed, many also depend on deficient communication strategies that separate maintenance and operations teams.

These less-than-ideal mining maintenance tendencies carry serious consequences – especially for mining companies with expansive open-pit operations where cost-effectiveness and operational efficiency reign supreme. Stakeholders at these sites can, of course, avoid financial fallout linked to declines in productivity by bolstering maintenance strategies. But before embarking on improvement efforts, open-pit leaders should pose some key questions to better understand their baseline needs.

Here are a few queries that might help mining maintenance leaders gather the data they need to move forward:

How are work orders processed?
Work orders constitute the backbone of maintenance operations. These documents and the internal mechanisms by which they move throughout the organization are critical in the age of automated mining technology. Yet maintenance departments within many firms do not have such formalized workflows in place to keep mission-critical assets up and running and instead rely on hastily delivered spoken reminders among technicians. This often leads to costly downtime and production pauses.

Ideally, mining companies should maintain digitized work order processes that allow operational staff to configure detailed service requests with all the information technicians need to make repairs in a timely manner. Open-pit maintenance leaders managing looser processes centered on in-person exchanges should embrace this methodology to make headway.

Is the right technology in place?
Mining technology continues to move forward at breakneck speed, catalyzing transformation in the industry along the way. Advanced tools such as automated drills and driverless trucks allow firms to mine continuously and reach new operational heights, according to the MIT Technology Review. Sadly, many of the back-end maintenance systems that support such cutting-edge assets are not as advanced and rely on nontechnical processes. Again, this creates risk.

To keep up with innovations unfolding in mines, open-pit maintenance leaders should adopt digital tools such as enterprise resource planning and computerized maintenance management software.

What is the ratio of planned to reactive maintenance?
Reactive maintenance strategies were common decades back. Now, with the rise of asset sensors and sophisticated data collection and analysis tools, organizations across all industrial sectors must maintain predictive methodologies to keep costs down and stay competitive.

Reactive maintenance is often four to five times more expensive than planned work, which is why firms should develop and sustain 80-20 maintenance ratios, wherein technicians devote 80 percent of their time to scheduled asset management activities and 20 percent to repairs. Open-pit mining operations failing to maintain such balances must work toward implementing proactive maintenance strategies designed to improve efficiency and reduce costs.

Mining maintenance leaders supporting open-pit facilities would be wise to kickoff improvement activities by answering these critical questions. Those in need of additional guidance should consider reaching out to USC Consulting Group. With nearly 50 years of experience, we can help open-pit maintenance stakeholders improve their processes and boost productivity. Connect with us today to learn more about our services and work in the mining space.

Truly innovative asset management covers all aspects of monitoring, analyzing, and maintaining capital equipment. Does your business have all its bases covered?

Now recovering from economic instability over the last decade, companies in asset-intensive industries have begun to invest in new and recommissioned equipment. In turn, these decisions ignite a fervent interest in improving uptime quality through optimized workflows, reliability-centered maintenance, and proactive decision-making.

Download our latest e-book “Asset Management: The Rise of Reliability” to discover asset management best practices from our team of experienced operational experts. Here are the seven points examined and discussed therein.

1. Work management
A work order is more than just a slip of paper. Its life cycle extends further than most businesses realize and should include information valuable to future successes in asset management.

2. Downtime tracking
If you fail to understand the nuance of downtime tracking, you will fail to sustainably decrease it.

3. Preventive and predictive maintenance
Reward awaits those facilities that understand what these two cutting-edge maintenance methodologies entail and how to execute on them properly to achieve new heights.

4. Asset criticality review
Are you allocating your resources to the machinery that matters most to your business? Align your goals with your actual asset management processes with a comprehensive ACR.

5. Equipment history capture and analysis
Those who ignore history are doomed to repeat it. Do you know what sorts of data you should capture about your assets today in order to make informed decisions tomorrow?

6. Root cause failure analysis
Assets fail for any number of reasons, but they boil down to three basic types of failure. Learn these as well as tips for digging below the surface when failures strike.

7. Operator equipment care
Line operators can work wonders for an innovative asset management program – if only their leaders know how best to utilize them.