PERTH (miningweekly.com) – An integration gap between the mine and production plant and between the maintenance and supply chain is causing productivity loss of more than 20% in the mining sector, a new report by consultancy group EY states.

Global mining and metals advisory leader Paul Mitchell said on Wednesday that in order to achieve the next level of productivity gains, mining and metals companies would have to adopt an end-to-end process model approach to the business, as well as digital strategies to reduce variability in the organisation, enhance an end-to-end approach and improve decision-making.

“Solving the integration gap requires miners to adopt a manufacturing mindset. We recognise that factors like geographic diversity, ore body knowledge and, at times, even weather, mean that it is difficult for miners to control variability and adopt practices developed by manufacturing companies.

“But we believe that this variability can be managed through adopting an integrated process model approach to the business, aligning digital investments to productivity outcomes and embedding a zero loss culture in the organisation supported by strong leadership and employee engagement.”

In its new report, ‘How Do You Prepare for Tomorrow’s Mine Today’, EY outlines the need for an integrated market-to-mine process model approach to help ensure that each element of the business, from the resource in the ground to the product being delivered to customers, is optimised as a business system.

Senior mine managers and executives interviewed for the report agreed this approach would help to reduce complexity.

To date, a process approach has been implemented for back office processes, but not service functions, such as asset management or marketing, or core functions, such as mine production or mineral processing.

Mitchell said that process models allowed companies to be more agile, and with this, to better manage variability from market-to-mine.

“That’s especially important in today’s market where miners face the difficult task of responding quickly and effectively to volatile market conditions.”