Application of the Event Chain Project Management Methodology to a Mining Stope

"Although South Africa possesses more than 80% of the world’s platinum reserves, its reputation for reliability in supplying platinum to global markets is under threat. This is due to the 49% decrease in output per worker (1999–2014), while the domestic costs have risen by more than 10% annually for the past 5 years. In addition, the continued decline in the commodity price by 38.3% (2012–2016) has resulted in a significant portion of the sector producing at a loss in 2015. The Chamber of Mines (now the Minerals Councilof South Africa) has suggested that solutions to improve productivity and reduce cost pressures are required. This research aims to provide operational excellence through the application of event chain project management (ECPM) to improve productivity and reduce operational costs. A case study was used to carry out research in platinum mines, with data collected using a motion-time study to measure the current efficiency of operations in each mining stope through actual activity durations. The results indicate that through the application of the event chain project management methodology, risks affecting the mining stope schedule can be managed, the efficiency of operations was improved by reducing the time spent on each activity, productivity was increased by shortening the project duration, and operational costs were reduced in the process. IntroductionSouth Africa’s total mining industry production was 4.9% lower in 2016 than in 2015; it decreased by 1.9% year-on-year in December 2016, with the main contributor to this negative trend being the platinum group metals (PGMs) with a drop of 15.1% and contributing -3.8% percentage points (Statistics South Africa, 2016). Although South Africa possesses more than 80% of the world’s platinum reserves, the 8% drop in production output since 2008 has put the platinum mining industry under the threat of being seen as an unreliable supplier to global markets. This decline in production is caused by the 49% decrease in output per worker between 1999 and 2014. In addition, the continued decline in the commodity price by 38.3% from 2012 to 2016 and an increase in operational costs during the same period resulted in a significant portion of the sector producing at a loss in 2015. A turnaround strategy is required to overcome these challenges. The Chamber of Mines has suggested, among others, the need for solutions to improve productivity and reduce cost pressures. The implementation of these solutions will ensure that the PGM industry thrives and reaches its potential of growing production to more than 322 t by 2020 (Baxter, 2016)."