Our client, a global mining and metals company with three copper operations in Africa was under immense pressure to reduce costs to remain competitive and ensure sustainability for all stakeholders. The copper price had dropped by 32% and input costs risen, contributing to an 80% drop in the company’s share price.

PIP was engaged to help reduce procured spend across the operations, capture synergies and ensure competitive costs in major spend areas.

Client achieved

  • $19.5m in annualised savings through:
    • Rapid Vendor Sourcing
      • 7% reduction in addressable baseline spend
      • Engaged a total of 134 incumbent suppliers
    • Rapid Category Sourcing
      • 57% reduction in laboratory services contract
      • 41% reduction in telephony services
      • 23% reduction in grade control drilling contract
      • 18% reduction in cost of personal protective equipment supplied
      • 15% reduction in reagent spend
      • 13% reduction in earth moving equipment maintenance and repair
  • Improved strategic sourcing tracking and negotiation skills within the operations

The Results