Know Your Cost Drivers & Levers

Extractive industries are, by the very nature, a set of defined and repeatable processes to meet the business objectives. Typically, within each process are Drivers eg. Labour Rosters, Geological and Geotechnical factors which impact negatively on business costs. Then there are the Levers eg. Physical factors, Process Cycle and Operating time and affecting rates and hence Productivity.

The key is recognising the drivers and levers in your processes and demonstrate the process value in the form of a Value Driver Tree (VDT). The VDT integrates all the factors in conjunction with baseline costs to deliver a ranged value for a given set of inputs.

MEC Mining have developed a VDT process that is customisable to your needs and provides a valuable insight into operational cost effectiveness of your key business processes.

Article by Senior Mining Consultant- Geoff Watson