www.pwc.com.

au

Productivity in mining
Delivering quantifiable results

Mining productivity in Australia

has been in decline since 2002...
140

140

140

120

140

140

120

120

140

120

Labour productivity index

2012 = 100

120

Labour productivity index

2012 = 100

140

140

140
140

120

120

Labour productivity index

2012 = 100

Labour Labour
productivity
productivity
index index
2012 = 100
2012 = 100

Labour productivity index

2012 = 100

100
100
120
120 100
140
140
100
100
100
80
80
80
100
100
120
120
80
80
80
80
60
60
60
80
80
60
60
60
60
100
100
40
40
40
60
60
40
40
40
40
80
20
20
80 20
40
40
20
20
20
20
0
0
0
60
60
2002
2004
2006
2008
2010
2012
2002
2004
2006
2008
2010
2012
2002
2004
2006
2008
2010
2012
20
0
0
20
0
0
2002
2004
2008
2010
2012
2004
2010
2012 Capital
Miningproductivity
Miningproductivity
40 2006
2002 Labour2002
2004
2006
2008
2010
2002
2006
Labour
Mining
productivity
All 40 2006
Capital 2008
productivity
Labour
2012
Mining Mining
Labour 2004
productivity
All
productivity
All
0
0
Labour productivity Mining
Labour productivity
Labour
productivity All
Capital productivity
Mining Mining
Labour
productivity
All
Capital productivity Mining
All
All
productivity
All
202002
202002 Capital2004
2004
2006
2008
2010
2012
2006
2008
2010
2012
Source: ABS
Source: ABS
Labour
productivity Mining
Labour
productivity
All
0
Capital productivity All
0 Capital productivity Mining
ource: ABS
Source:
ABS
2002
2004
2006
2008
2010
2012
2002
2004
2006
2008
2010
2012
100

Source: ABSLabour productivity Mining

Source: ABS

Labour productivity All

Capital productivity Mining

Capital productivity All

Support services have ballooned since

2002, accounting for

56% 13%
The mining industry is generating

less output per hour of work employed

of hours accured to the mining industry,

up from 3% in 2002

We believe that operational excellence enables

productivity improvement
PwCs operational excellence capability
ensures you deliver by:
Developing a quantified picture of the improvements
you can achieve

Including processes that are linked to your strategy,

supported by PwCs proven methodology
Providing implementation support, securing ownership and
commitment to deliver continuous improvement.

Managing and guiding you to realise this potential

Providing you with confidence to achieve your goals
Delivered $70m
in cost savings
for a ramping up
goldoperation

Delivered $300m+ worth of

operational improvements for a
diamond operation
50% increase in BCMs
with half the CAPEX
requested, identified >70%
latentcapacity

We are close to the industry and its challenges,

enabling us to deliver quantifiable and real
dollar results...
We are pragmatic
and collaborative

We have an
experienced team
We have strong
implementation
capability

We have a proven
methodology
We deliver sustainable
improvements

We are committed
to our clients
success
We bridge operational
and financial outcomes

120
100
80
60
40
20

0
20

200C

Tailored productivity improvement focus...

Optimise Mineral
Inventory
Solutions for
Mine Assets in
Operation

Optimise Asset Base

Mineral Flow Optimisation

Optimise Unit Cost

Operational Performance Improvement

Mine Plan Optimisation

Cut-off Grade Optimisation

OEE and Throughput

Improvement

Cost Reduction

Process Improvement

Sourcing and Procurement

Redesign

Improve Asset Management

and Capital Employed
Benchmarking
Business Improvement Capability
Turn-Key Set Up of the Internal Business Improvement Function and Up-Skilling Existing Teams
Performance Tracking and Systems Design
Organisation Design, Structure and Workforce Optimisation
Capability Development and Behaviour Change: Lean,
Six Sigma, 5S, etc.
Solutions for
Development
Projects

Capital Productivity Improvement

Project Execution Support
Risk Management and Execution Support

Value of productivity
improvement
Solution

Focus Area

Capital
Productivity
Improvement

Cost to build

Cost Reduction
Review

Optimise processes

Underperforming startup needed

additional margin from across all
assets to support DFS estimates

$70m
savings delivered
in 4 months

Time to build
Cost to operate
Trade OPEX for CAPEX
De-layering: optimise number
of managers

Sourcing and
Procurement
Review

Operational
Effectiveness
Capital Productivity

Contractors
Labour Hire

Production
Process
Operational Effectiveness
Optimisation
18% below industry best practice,
equating to an equivalent of 7.6
trucks being ineffective,
35% of the site fleet

$21m

increased
effectiveness by 35%

Heavy equipment
Fuel
Processing equipment

Work Force
Optimisation

Right-size headcount
Optimise labour rates

Operational
Effectiveness
OEE
Improvement
Targeted review of major downtime
categories reduced equipment
downtime

47%

downtime reduction

Our team has expert multifunction capability

centred around deep mining experence...

Partner

Brisbane

Stephen Loadsman
Productivity Lead
m: +61 418 634 397
stephen.loadsman@au.pwc.com

Partner

Melbourne

Director
Brisbane

Franz Wentzel
Operational Excellence
and Asset Management
m: +61 418 126 217
franz.wentzel@au.pwc.com

Partner

Brad McBean

Change Management and

Organisation Transformation
m: +61 419 671 398
matt.guthridge@au.pwc.com

Procurement, Sourcing
and Supply Chain
m: +61 414 487 109
brad.mcbean@au.pwc.com

Perth

Perth

Mark Bosnich

Capital Projects Productivity

m: +61 419 252 246
darren.smith@au.pwc.com

Site Operations and KPI Design

m: +61 422 238 523
mark.bosnich@au.pwc.com

Perth

Aleksey Podkhyneychenko
Capital Productivity and Cost Reduction
m: +61 428 233 067
aleksey.podkhynechenko@au.pwc.com

A consistently rewarding
relationship that is especially
valuable in times of greater
need.

Principal

Darren Smith

Director

Weve had a valuable and

long-lasting relationship
with PwC, working together
fruitfully for a decade.

Sydney

Matt Guthridge

Partner

Client
Testimonials

Were impressed with your

understanding of our culture.
You grasp the complexity
we face. This shows insight
and commitment to the
relationship.

Senior Manager
Perth

Fritz Bezuidenhout
Operational Excellence
m: +61 411 553 822
fritz.bezuidenhout@au.pwc.com

PwC acts as a constructively

critical friend, providing useful
input. The spirit of partnership
is what we value most in the
relationship.

The Asset Partnership

The Asset Partnership (TAP), a PwC company, provides our clients
with a full service Enterprise Asset Management (EAM) consulting
service offering. TAP are a national provider of strategic, technical
and operational asset management services specialising in the
mining, utilities and defence industries.

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to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
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the better your service becomes.
You recognise the need to
change as our business evolves.