Sustainable cost reduction
Cost reduction and operational efficiency are key issues for mining industry leaders, and have the potential to drive significant value for shareholders. We’ve noticed that for cost reduction and operational initiatives to be successful, a sustainable approach based on effective planning should be adopted. Are you confident that your cost-reduction approach is sustainable?
By identifying and implementing lasting reductions in your company’s cost structure, you can improve performance and bottom-line results. PwC can advise you on industry practices to achieve sustainable cost reduction in mining operations, such as:
- Designing and executing corporate and operational cost reduction programs
- Value/cost driver modeling and continuous improvement process design
- Supply chain review and improvement
- Establishing monthly cost review and cost reporting processes at both mine site and corporate levels
Enterprise Asset Management (EAM)
Most mining operations run at under 70 percent operating effectiveness largely because of equipment idling, breakdowns and recycling. For your company to continue to succeed, your physical assets need to perform like never before—that is, more asset reliability and longevity. This requires a dedicated approach to Enterprise Asset Management (EAM).
We work with mining companies to help develop and implement an integrated asset management strategy, so that you improve the return on your assets by reducing overall lifecycle costs.
In the mining industry, spending capital effectively is a critical lever for improving shareholder returns. However, as capital projects mature, the degree of influence that mining companies have over project costs reduces dramatically, particularly after construction starts.
PwC is well positioned to help mining companies find the right balance in capital projects management and focus on the key elements affecting program performance including:
- Building greater levels of flexibility into projects, such as building options and flexible contractual terms with suppliers, so programs can easily be slowed or accelerated depending on market developments
- Updating capital program governance frameworks, including reporting practices, to reflect new industry realities
- Managing the demand for capital, for instance, finding new sources of financing by increasing links with joint venture partners or customers.
Mining companies face ongoing regulatory compliance requirements and increasing public scrutiny to integrate sustainability into their overall strategies.
PwC’s Sustainable Business Solutions team works with mining companies across the Americas to align corporate governance and non-financial management, including operating systems and processes, performance reports and mechanisms, to meet the needs and expectations of stakeholders. Examples of our solutions include:
- Sustainability strategy development
- Stakeholder engagement
- Certification (ISO 14001, 9001)
- Environmental liability audits and due diligence engagements
- Non-financial report assurance.
With so many moving parts within mining operations, it’s important that risk management, internal controls and governance processes accomplish business objectives and meet stakeholder expectations.
We can help you develop internal audit and risk management plans and methodologies to increase the effectiveness of your internal audit processes. We also offer resource solutions depending on your needs—from full outsourcing to complementing in-house functions.
Finance function effectiveness
Today’s business environment is putting pressure on finance departments to deliver superior information and controls in line with increased governance and transparency. There is also a demand to reduce operational costs.
Mining companies face a number of issues that prevent them from meeting these requirements and becoming more effective. They include low value planning, budget and forecasting; limited insight into operating results, and time-consuming transaction processing.
PwC’s professionals can help you assess, design and implement changes to your financial processes. Our services include:
- Strategic planning for your finance function
- Business process standardization and simplification
- Improved consolidation process and management reporting
- Improved budgeting and forecasting processes.