Our client’s objective was to identify and analyse the factors contributing to high costs within the organisation. Our focus was to clearly understand these cost factors and outline key transformation levers to support ongoing business optimisation initiatives that delivered both short-term benefits and long-term operational stability.

CLIENT

A listed coal mining client with multiple sites in Australia.

ISSUES

This diagnostic required combining multiple site data and factoring in the significant integration and transition processes the business was experiencing as part of group consolidation. Our client required support to put in place the following:

• Data management
• Data accuracy and reliability
• Desktop review – no site visit
• Rising operational costs
• Aligning production output to market demand
• Ensuring recommendations supported overall business strategy
• Project delivered to weekly Steering Committees

OUR SOLUTION

Our team reviewed operational data and performance metrics across sites and gave interim feedback to critical stakeholders for verification. A first pass of opportunities focused on prioritisation and impact, and provided a high-level roadmap of both short and long-term initiatives.

The opportunities were categorised into 5 key areas:

• Operational Efficiency Enhancements in line with Company Strategy
• Cost Savings Initiatives by functional category
• Operational Excellence
• Standardisation and Reporting of site
• Data Management and Resourcing

The assessed workflows included Mine Planning, Production, Asset Management, Processing, and Supply. One presentation per workstream was delivered to a steering committee, where the findings were discussed.

THE RESULT

Our diagnostic identified several critical areas for operational improvements, leading to significant potential cost savings and productivity enhancements. The road map comprised over 100 short and long-term initiatives, divided into 49 “projects”, including planning, production, asset management, and processing.

The high-level findings projected opportunities were:

• Increased production by 12% for all sites.
• Direct overall cost savings of 7% per annum.
• Combined reduction on cost per tonne of 15% across the sites.