Business consultancy Goldratt for Mining is assisting the mining industry to increase output by exploiting the production chain’s weakest link.

The average daily output of most mining operations is only between 50% and 60% of its highest historical output achieved, and few reach or exceed 70%, says Goldratt for Mining MD Henning du Preez.

The theory of constraint (TOC), developed by Dr Eliyahu Goldratt, has been translated for the mining environment – TOC Mining – to improve daily average output by about 40% or up to 85% of a mine’s highest historical output. This method can be implemented without incurring significant additional capital expenditure or operating costs and, in all cases, the cost per ton is reduced.

A mine has many sources of variations and interdependencies and the key to improved production is dealing with the weakest link by means of strategically placed and managed buffers to ensure that, should one link of the mining chain become inactive for any reason, it will not hold back the performance of the weakest link. When the flow is restored, standard production continues as usual. A buffer can be implemented for production, machine spare parts or equipment, besides others.

“TOC Mining is unlocking the mining wealth in the country and giving the South African mining industry a decisive competitive edge internationally. “Currently, continuous improvement efforts of mining companies are mainly focused on cost reduction, local efficiencies and monthly production targets,” he says.

TOC Mining will increase production using the mine’s current resources, people and equipment. The only extra expense will be true variable costs such as explosives, energy and fuel that are directly associated with the higher production.

Goldratt for Mining has started introducing and commercialising the programme for top multinational mining companies globally and has started to implement TOC successfully, says Goldratt for Mining chairperson Anthony Nathan.

“We have been awarded a number of contracts for the implementation of TOC for mining and several more enquiries from mining companies have been received. “We believe that once these companies show a marked increase in production, profit and market capitalisation, TOC for mining will gain in popularity,” he adds.

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