Modeling For Real-Time Performance Measurement: A Strategic Approach

As most mining companies are taking advantage of the high market prices for base metals such as steel, copper and zinc, numerous challenges still face them. While demand is strong from countries like China and the United States, demand is still mixed in Europe. This leads to the question of how long these high prices and overall high global demand will last. The tremendous market prices of most precious and base metals have enabled many companies to pay down a significant amount of debt accrued during acquisition and capital expenditure phases. Additionally, mining companies have been able to internally fund and engage in large projects to address future growth, (Less, 2006), thus maximizing the performance of the existing asset base, driving maintenance costs down, and improving and empowering the work-force (Mining Journal, 2006). Market prices and general efficiency gains have addressed these issues to some extent. However, critical issues still face operating managers in the mineral pro-cessing side of the industry. Energy prices, for example, continue to have a negative impact on cash costs for producing an ounce of gold or ton of a given base metal (Cummins, 2003).