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 Results - Underground Coal Mine (1)

Context / scope of project: Mature mine with end of underground life in 2.5 years. Buy-ins and alternative sources of coal were key to overall economics due to insufficient feed from underground to plant. New, competent yet incomplete management team. Becoming increasingly difficult to hire and retain talented staff. Key management objectives were to sustain positive EBIT and morale, and retain staff.

PIP and client achieved:

Highest average daily production rate in past 27 months

Highest consistent plant throughput levels (2 year record of 7 months consistently over 1m tonnes pm through plant), while not compromising quality
20% reduction in misplaced material (ie less quality coal sent to dump)
Increased daily mini-pit production by an average of 50% within one month of PIP project start
Introduced to plant 60,000 tonnes/month of duff (dumped material of adequate quality to process)
Raised stacker-reclaimer utilization to a consistent 95%+ from 25% on arrival, ensuring more consistent feed and quality to the plant
Considered best managed mine in the group from being rated worst managed in the prior year
Operational profitability sustained and staff turnover very low









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What we did:

Created Value Driver Tree of Integrated business – paretos for micro level improvements and macro level restructure
Implemented disciplined Results Action Review (RAR) process, strongly driven by GM and operations manager.
Created clear feedback loop between mine captains and teams
Focused on performance variances and disciplined prioritisation
Unlocked major new source of revenues in mini-pits
Coached operators, miners and overseers on cutting sequence and cutting cycle standards

Conducted root cause analyses (RCA) on
• belt downtimes
(underground and overland)
• plant downtime
• costs in staff transport,
telecoms, third party logistics

Increased module capacity by reconfiguring to match feed mix
Developed HR tracking process to aid communication, prioritisation and acceleration of recruiting process
Introduced formal periodic reviews with key suppliers and contractors


 
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