The current volatility of markets has increased Australian mining technology services company Runge's desire to promote standardised mine business planning systems.

This is especially the case with larger mining companies, as they seek global standardised business planning systems, which provide them with tools to manage their corporate governance requirements, while improving their ability to assess the impact of rapidly changing commodity prices and volumes on their operations, says Runge's operations manager Kevin Holm.

When using previous versions of Runge's mine management and planning software, a miner would need to customise the software package to reflect the specifics of a particular operation, which requires a fair amount of skill and experience.

"The challenge that a company faces in this situation, is that the company is dependent on one person's skills in developing the model. This means, that there might be some constraint in how well the software is developed for that particular operation," says Holm.

The impact of the global financial crisis is variable for mining consultants, depending on which commodity and in which country they operate, he says. "For example, coal companies are currently cutting costs, whereas the gold industry continues to be buoyant. The challenges, opportunities and responses needed in these markets therefore differ for Runge and its customers."

He adds that mine operators and investors need to have a very strong handle on what impact different commodity prices, production levels, stockpile levels and manning levels will have on their business in both the short and longer term.

These challenges continue to be magnified by a still tight supply of operationally experienced mining professionals.

"Although exploration geologists and design engineers are encountering numerous retrenchments, resource calculation geologists and mining engineers with a strong combination of operational experience and technical skills are still in high demand," he says.

Runge's integrated mine planning and mine financial planning services to the African mining industry, as well as specialised software solutions and relevant training, are intended to circumvent these challenges.

"All three diverse functions complement one another," says Holm, as the company typically uses its software to conduct mine engineering studies and deliver the mine plan to a client. "Once the client then becomes aware of the software, it normally leads to a sale of the software, which then necessitates software and technical training."

The impact of the current economic climate on mining consulting companies, such as Runge, depends on their spread of clients, geographical and commodity exposure, variety of services and products they provide, size of the work force, and the ability to differentiate their services.

Holm believes that Runge's ability to offer a diverse, yet complementary suite of services, is the company's competitive advantage, as most competitors only offer one of the three services.

Runge operates in South Africa under the company name of MRM Mining Services, from two locations in Midrand and in Witbank.

Runge provides technology products, consulting services and training courses to the global mining industry across a range of commodities. With expertise across a range of mining disciplines, its approach to the business of mining is strongly grounded in sound economic principles and in delivering mine planning solutions that are tightly coupled with technological support and training.

Through these solutions, mining professionals gain access to technology and knowledge that allows them to improve their business planning process. Runge provides expertise from corporate advisory and strategic planning, through to due diligence and related financial services, to resource and reserves management.

Runge's mine planning services cover all aspects of mine planning, from data acquisition through to detailed mine design, to the production of operating and cost schedules, and financial analysis for both operating mines and proposed mining projects. The use of well-established and systematic mine planning procedures enables more detailed studies to be undertaken in the same, or less time, and at a lower cost than alternative more labour-intensive, less systematic methods.

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