Improved Mine Throughput Ensures a Sustainable Return on Capital at Mount Isa Copper Operations

Optimal throughput is a key objective for the successful operation of any manufacturing or processing business. In the mining industry in particular, in order to obtain maximum return on the significant capital investment in the physical assets involved, ensuring continuous throughput is a major focus for the complete leadership team. Failure to meet throughput objectives becomes a major source of distraction for management which too often attempts to solve shortfalls by æforcingÆ and æenforcingÆ production targets. This focus on the short term and the lack of attention to addressing root causes frustrates operators who attempt to satisfy unattainable short-term targets and lose sight of the long-term goal. Mount Isa Copper Operations, Xstrata Copper, North Queensland, had ambitious plans to increase throughput volume by ten per cent within a four month period to allow budgets to be achieved within the financial year. To achieve this, the process had to overcome the interplay of a multi-node (æsiloedÆ) production system and its associated inventories, each node, of which on the face of it at least, had more than enough ænameplateÆ capacity to meet these plans. However, the actual volume achieved at the end point of the system was well below this nameplate capacity and the system operated with an extraordinarily high standard deviation. The key issues in terms of making or exceeding plan were: how to substantially reduce the variability of the system and managing the inventories between nodes, how to synchronise throughput between the production nodes, and how to improve the decision-making ability within the process. In this paper, the implementation team has shown that a revolutionary process view of the operation together with appropriate planning decisions allowed increased throughput to be achieved without further capital investment.