The management of the Anglo Platinum (AP) mining technical systems (MTS) embarked upon a process of defining the strategy for the MTS department. The newly established department forms part of the greater Group Information Technology (IT). The strategic process took place within an environment that had witnessed a dramatic proliferation of IT implementations across the group within the last three years. The IT department has been structured in terms of the classical plan, build and run functions with the applications and integration streams running perpendicular across these three functions. The application stream is divided into commercial and mining technical systems with business systems integration the third stream. The mining technical systems department supports mine management to effectively gather, analyse and disseminate data relating to the ore reserve by integrating a number of strategically selected IT applications to ensure that the safety, legal and operational requirements are met. This service to business is rendered by management of a strategic outsource partner via tightly controlled service level agreements (SLAs). The framework used for creating a mining technical systems department that is empowered to add value to business was formulated using the AP value chain as both the starting point and guiding process to ensure alignment to the greater internal strategy of the business. Keywords: Platinum, Mine planning, Mining technical systems, Value chain.
"SynopsisOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Often mine owners will choose the contractor option without fully understanding the consequences of undertaking this option. Traditionally, contract mining has come at a cost premium of about 15% to 20% compared to an owner mining scenario. However, due to the large number of junior mining companies entering the mining arena in South Africa contract mining rates have increased, with cost premiums as high as 50% being reported. This paper looks at the merits of owner mining versus contract mining and describes under what conditions it may be favourable to select the one option over the other. In addition, the methodology of entering into contract negotiations with the objective of establishing a fair and sustainable relationship is discussed.IntroductionOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Surface mining, for example, may use contractors to conduct drilling and blasting operations or load and haul operations. Underground mining may contract out work such as shaft sinking, mining, support, construction work, cover drilling, sweeping and vampings. Common surface operations such as mineral beneficiation, waste disposal, security, and product transport may also be outsourced to contractors.Many companies have a business model that utilizes contractors for the entire mining cycle, maintaining a small head office to provide direction and control. The difficulty with this option is that often mining companies will choose the contractor option without fully understanding the implications."
Value chain based strategy formulation for mining technical systems