Mining IQ

5 Ways to optimize your Operating Costs

Posted: 04/06/2015
It’s wonderful to have a run of growth when the sky is the limit. But if events of the past decade have taught us anything, it’s that what goes up must come down. In the mining industry, the last few years have been the wonder years.
High prices meant that everything was ok. In the quest for output, which has been the core of the recent ‘discovery trumps all’ model, absorbing inflation, supporting inordinately high wages in efforts to tempt talent to the table and paying for costly mistakes was easy.
This is not a trend that’s continuing, however. Prices will and have been falling; and with that comes a need to conserve and make smart decisions that will bring operational improvement and significant cost savings. In the long term this is what will keep your competitiveness intact.
The first question then is are you looking for quick fixes or long-term, sustainable solutions? The ideal answer would be a mix of the two. First fix the glaring issues, cut duplicates and outsource so you can bring in some talent and services as needed. Then evaluate changes to the way you do business: creating structure, refining processes and investing in technologies that pay dividends in the long run.
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Posted: 04/06/2015