To be in the ground, you must be on the ground

Transcription

1 Epansion Eploration Evaluation Development Production Closure 00. INTRODUCTION To be in the ground, you must be on the ground As mining companies move throughout the mining asset life cycle, an organization encounters different challenges in order maintain growth and profitability. A number of new and potential projects have comple infrastructure, regulary & skills challenges that require a range of new intergovernmental, community and joint venture partnership approaches. Without on the ground epertise, mining houses potentially face delays in the timely commissioning of projects and impact future operations. KPMG Africa firms leverage capabilities, methods and knowledge across the world enable clients access deep industry content and subject matter eperts that understand the locality, geography and industry. KPMG global member firms mining specialists can assist clients throughout the mining asset life cycle. Our people are deeply eperienced in the industry and are knowledgeable of local laws, cusms and practices and aware of the challenges faced across the life cycle. To be on the ground, you must be...

2 Epansion Eploration Evaluation Development Production Closure 0. Geomapping Lever The Geomapping Lever is seen as a powerful and practical means of unlocking Africa s immense natural resource potential. African Geological Surveys should be a key source of contemporary, unbiased and reliable earth-science related research which can inform local and regional policy development, stimulate mineral eploration and mine epansion, and ultimately drive economic progress. Products generated by surveys will empower local players and provide entry in the highly competitive minerals eploration space. Up--date geological information is also an essential input for informed, responsible and sustainable development of Africa s mineral, energy and water resources, as well as the safe development and modernization of regional infrastructure. Investment in geological surveys has proven time and again be cost-effective and yields multiple product offshoots (e.g. ground water eploration). Geomapping Lever

3 Epansion Eploration Evaluation Development Production Closure 0. Assurance Government Single The cost commodity of function carbon risk eposure Pages Companies As While A number governments facing of are the unique looking ongoing continue features wards fiscal in their of crisis, the initiatives attempts mining within such secr the as business increase mining should be resource control re-engineering evaluated over portfolios, when natural and considering there cost resources, are optimization winners the this design in order becomes and of carbon losers. protect and pricing stems their mechanisms. from shareholder a concern value. that a region will work conserve it s resources, in addition During Manufacturing and production generally may have slowed demanding The natural turbulent constraints posed by shrinking ore deposits for down with knock-on a times, higher shareholders, effects on steel of the boards and copper, mining and C-level however, revenues. eecutives the commodities need such greater as gold confidence imply that in mining their strategic companies decisions now and gold markets have been bolstered by the finance communities have an increased go deeper assurance for the same against level business of output. threats Consequently, and regard There is for a gold slight as decline a safe of haven, invesr hence confidence the price with has remained companies a relative mechanism that do operate that places in these a blanket regions carbon and in price addition per governments unit of output increasing may not be their immediately share in mining relevant, profits; as companies this leads will need epend greater amounts of energy and hence carbon emissions achieve the same level of output. compliance relatively buoyant. For instance, copper can be regarded as a A benchmarking obligations. approach Thus, may an be enhanced more appropriate. assurance The function is thermometer product one of the first be impacted by and mining required industry aid is in generally such confidence. highly eposed international recover from recession, while other commodities respond trade, which implies that different levels of carbon pricing later difficulty in the economic accurately cycle. forecast production schedules, understand across regions long-term can lead risk profiles potentially or develop significant models guide decision competitiveness making over concerns time. for national industries. The design of national schemes therefore should account for these potential cross border concerns. Single Commodity Risk Eposure Cost of Carbon Government Assurance Function

4 Epansion Eploration Evaluation Development Production Closure 0. Asset Integrated Contract Power Trans-frontier management supply life-cycle productiuon corridor infrastructure & cost planning management development optimization Pages 5 Contract Integrated Mining A number operations Life-cycle of production new and are Management planning potential capital typically intensive energy (IPP) projects is becoming is intensive and have require increasingly significant approach and comple located infrastructure which daily important remote cash brings outflow, areas, for gether challenges resource sometimes with the requiring the companies mining majority with and road, of who capital processing limited rail and are ependiture grid port looking functions connectivity. infrastructure ensure for and mining creates timely development equipment higher project efficiency in delivery, either Reduced owned through countries or better risks outside leased. and planning, of better where administration, managed the mining costs. activity communication In takes many place. countries, electricity and eecution. supply has been under pressure Choosing Reviewing due under owner-based and investment optimizing mining the new asset infrastructure or portfolio contract and mining and operation backlogs can in becomes help maintenance. This brings with this a with critical This and it reduce a has area range resulted for costs. of mining new This power intergovernmental, reduction companies outages equipment as becoming they Maintenance time is reduced with equipment and vehicles focus costs increasingly community can on improving provide and common. joint a competitive venture ore Mining quantities partner houses edge. and challenges have In addition, grades resorted which at contracrs lower being frequently used and increased frequency of breakdown could production can increased help reduce reliance costs. costs on diesel and make generars significant which savings are very by and accidents. Mining and processing operations are not often closely aligned. With separate management teams, budgets, epensive operate at current oil price levels and are also providing considering specialized investing leasing base-load services power for mining plants of equipment. their own, This cost which delay leasing centers the may timely be out and owned from commissioning operational and original operated targets, of equipment projects by there the mining is and manufacturer relatively have company little impact (OEM) communication and/or on future third through operations. parties. a between service and them. supply KPMG contract uses data can help and analytics the miner review implement and optimise its strategy a mine s at a asset lower portfolio cost. and operation Asset management & cost optimization Trans-forntier corridor development Contract Lifecycle Management Integrated Production Planning Power supply infrastructure

5 Epansion Eploration Evaluation Development Production Closure 0. Skills development The mining industry is facing a shortage of skilled manpower with part of this challenge is workers, disinclination relocate remote regions. There is also an increase in costs due certain arrangements, such as the fly-in/fly-out (FIFO) arrangement currently used in Australia. The implications are clear and companies will need make higher investments for training of employees. Skills development