Metals and Mining
PCG has expertise in assisting large and small organisations in mining, steel and aluminium to make critical decisions about overall operational performance, corporate strategy and mergers and acquisition.
Our senior consultants have worked on significant large projects across the value chain, from mining through to production and distribution, and supported our clients to navigate and deliver immediate and sustainable results.
- Business unit growth and corporate strategy
- Post merger integration
- Profit improvement
- Pricing strategy
- Supply chain modelling
- Zero based labour models
- Value driver models
- Project stage gating
Major iron ore miner needs rapid cost reduction
When the iron ore price dropped dramatically, a large iron ore miner set an ambitious target of reducing C1 costs by $4 to $6 per tonne. This equated to a cost reduction of $1.1bn.
The miner had to reduce C1 costs by $1bn in order to remain a viable business. The miner had already identified the bulk of initiatives across procurement, contracts and mining that would deliver the $1bn and had a tracking and monitoring system in place.
PCG identified that the tracking and monitoring system was not driving the business to the desired result. There was not enough urgency within the organisation given the huge cost reduction target and tight timelines.
PCG changed the focus of the tracking and monitoring program to bring focus to value captured, specifically the run rate of savings at a date which coincided with market reporting. PCG embedded project resources with the client to act as an external challenge on project assumptions.
PCG also built a zero based labour model from the mine plan, considering assets in field and evaluating the staffing required at different shift patterns. This was used to evaluate the proposed new staffing levels submitted by operations.
With PCG's assistance the miner achieved the aggressive cost out targets.
Benefits tracking showing value growth over time.