Mining Support Business Process

This presentation is made from many sources with some modifications. It is for internal learning purpose only. Please do not distribute without prior notice.
Business Integration
Identify

People

Review Plan
Strategy

Process
Technology

Execute
Typical Mining Business Model

External Business Drivers and Stakeholders

Strategic Management Process

Commodity Core Business Process

Segmentation:
Acquire and Develop Reserves Customers

Extract Ore Minerals

Precious metals Joint venture
(including ore)
Base metals Other mining Brokers
Speciality metals Process Ore companies
Concentrates
Iron ore Commodity
(including ore
Industrial Sell Product Contractors
and slimes) exchanges
minerals
Coal Mine Closure Engineers
Manufactured Manufacturers
Gemstone
products / fabricators
Uranium Suppliers
Support Business Process
Mine services Governments
By operation Trade
engineering
focus: Associations
Information (CRA, BHP) Refineries /
Health & Safety Procurement Technical Mining smelters
Exploration Management Governments
and
Fully integrated
Maintenance
Mine services Environment Maintenance Treasury Outsourced
Single - or - Suppliers
multi
Quality Asset Human
commodity
Management Management Resources
Business Process

✤ a collection of linked tasks which find their end in the

delivery of a service or product to a client.

✤ it is must involve clearly defined inputs and a single

output. These inputs are made up of all of the factors
which contribute (either directly or indirectly) to the
added value of a service or product.
SIPOC
SIPOC
Mining Business Processes

Strategy
Strategic Management Process

Core Business Process

Acquire and Develop Reserves
People Extract Ore
Process Ore

Process
Sell Product

Mine Closure

Support Business Process

Technology
Information
Health & Safety Procurement
Management

Environment Maintenance Treasury

Quality Asset Human

Management Management Resources
Workflow and Key Performance Indicator (KPI)

Strategic Management Process

Core Business Process

Support Business Process

Quality Manual

Work Instruction

Standard Operating
Procedures
Health & Safety
✤ The International Labor Organization C176 Safety and Health in Mines Convention sets
out the basic requirements for national practices for mine health and safety. http://
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:
12100:0::NO::P12100_ILO_CODE:C176

✤ OHSAS 1800:2007 Occupational Health and Safety Management Certification is an

international standard which provides a framework to identify, control and decrease the
risks associated with health and safety within the workplace. Implementing the standard
will send a clear signal to your stakeholders that you view employee’s health and safety
as a priority within your organisation.

✤ MSHA's Compendium Of Links to International Mining Law lists some of the laws that
pertain to health and safety in different countries. https://arlweb.msha.gov/
MINELINK/COMPEND/INTERMNG.htm#.Wf5EmhiZNE4
Environment

✤ Though mining industry provides an economical contribution to a nation, but it has its
own environmental problems. It has built concerns and debates on how mining
companies manage their operation and exploration activities. Therefore, in June 1992
the United Nations Conference on Environment and Development emphasised the need
for environmental guidelines for natural resources development. You can read the
article here: https://commdev.org/userfiles/files/
814_file_UNEP_UNDESA_EnvGuidelines.pdf
Quality Management

✤ Quality Management (QM) helps organisation to manage processes, procedures and responsibilities

to achieve quality objectives, maintain regulatory compliance and meet customer requirements. It has

four main components: Planning, Assurance, Control and Improvement.

✤ Interesting articles to read as due to QM: http://technology.infomine.com/Quality/ or https://

www.mineactionstandards.org/fileadmin/MAS/documents/imas-international-standards/english/

series-07/IMAS_07.12_DRAFT_Ed.1.pdf
Information Management

✤ According to Gartner Information Management is a method of using technology to

collect, process and condense information with a goal of efficient management. Most
large enterprises have a central IM function to facilitate this coordination. The primary
technologies needed are contained in a set of modelling tools that either have or interface
to a production-worthy repository where the information is stored and managed. The
repository and tools must be capable of receiving information in a “top-down,” “bottom-
up” or “middle-out” evolutionary manner.

✤ The aim is to supply decision makers with appropriate information on which to base their
decisions. It is tool and method for the mine community in order to ensure that mine
action actors are able to effectively leverage information towards more efficient strategic
and operational decision-making.
Maintenance

✤ Work side-by-side with the Finance & Control function, maintenance process needs to have a good
asset management. It considers and optimises the conflicting priorities of asset utilisation and asset
care, of short-term performance opportunities and long-term sustainability, and between capital
investments and subsequent operating costs, risks and performance. Along with ISO55000 (the
international asset management standard), there are a number of tools available for use to assist with
the implementation of an asset management system;

✤ Maintenance Process has to perform regular maintenance, in order to improve the reliability,
performance and output of the devices. Prevention is better than cure; by carrying out regular
inspections operators will ensure their device runs for a longer period of time with minimal
unscheduled downtime. “The most important aspect is to have a maintenance plan in place and
execute it.  Following a maintenance plan and carrying out daily inspections can yield increased
service life. This maintenance plan should adhere to the recommendations of the manufacturer,”
states Eric Jones, Global Service Director of Comminution Aftermarket for Weir Minerals.
Procurement

✤ The primary function of procurement is to acquire the parts and materials needed, in the
proper quantity and on time. Secondary considerations are maintaining minimum
inventory (just enough to avoid shortages) and keeping costs down. Procurement
professionals understand the relationship between cost and supplier quality, reliability
and performance, and constantly strive for the perfect balance among these factors.
Therefore collaboration between Procurement and Finance functions is to fully
contribute to all the company’s goals.
Finance & Control

✤ In most cases, Treasury and Asset management are also under the Finance & Control function. This
function handles end-to-end processes in Accounting & Financial. These are their common activities:
Recording of transactions on a daily basis for all balances in the financial statements.
Preparation of financial statements and reporting packages for internal and external
requirements with a focus on management, corporate and statutory requirements.
Reviewing and processing supplier and vendor invoices, financial and tax validation, recording
of payments in the systems, and maintaining A/P aging reports.
Processing of bill, credit, and debit notes based on the organisation’s management instructions,
recording these in the system, and maintaining collection reports.
Uploading payments in the system, generating payment reports, preparing checks/transfer
letters, and foreign exchange monetisation per the relevant statutory or central bank formats.
Fixed assets, inventory, cost accounting, budgeting, development of accounting practices and
procedures. International Financial Reporting Standards (IFRS) support implementing policies
defined by the organisation.
Human Resource

✤Human Resources Professionals are focused on activities related to the employees of an

organisation. This can include:
• Recruitment and selection
• Training and development
• Performance management
• Remuneration
• Employee relations including handling grievances, industrial relations including negotiating
agreements, career management and workforce planning

✤ Human resource professionals can work as generalists or specialise in specific areas of Human
Resources. A common misconception is that HR is the same across all industries and organisations.
Whilst best practices principles and legislative interpretation is transferable across industries, the
differential factors include the type of workforce and skills required, different work environments
and how this affects employees.

✤ In mining, Human Resource professionals can be based in a corporate office or site based, this
affects the structure and responsibilities of their position and creates various challenges.
This presentation is made from many sources with some
modifications.

It is for internal learning purpose only.

Please do not distribute without prior notice.