As the new year lies ahead of us, the mining industry has set its sights on the challenges and opportunities that this year holds.
Per professional services firm, EY, mining and metals companies will face 10 business risks in this new year. We will review 6 of these risks in this two-part article. To see part one, where we discuss the first three risks, se the article on 6 business risks facing mines in the new year – part 1. Here are the next three risks:
Access to energy
Energy consumption can be anywhere from 15% to 40% of the operating budget of a mine and as such it is essential to effectively asses the costs when selecting an appropriate energy source. Best practice for most mines today is to use a mix of energy sources, this may help to minimise uncertainty of availability and cost of energy over the entire mine life. With operating margins
being so dependent on both commodity prices and energy prices, increased focus on renewable energy and smarter energy solutions by the mining and metals community is likely to continue.
While there is a great upside to joint ventures (JVs), the risks to non-operators is significant given their lack of inclusion in operational decisions which can have large knock-on effects. The report suggests that non-operating JV partners need to consider what mitigation strategies should be put in
place to protect their investments, such as conducting non-operator audits or embedding non operator management to provide increased visibility.
xMMP (exploration, Mining & Minerals Processing) is a mining “ERP” solution that covers the Total Life of Mine (‘LOM’). Managing mineral rights (tenements) claims, exploration, drilling, EPCM for the development phase, actual mining, stockpiles, plant, shipping and dispatching all the way to mine rehabilitation.
Companies surveyed in EY’s annual Global Information Security Survey still do not have an IT security strategy. According to the convergence of Information Technology (IT) and Operational Technology (OT) platforms, protocols and techniques, which traditionally have been separated, will create the biggest threat to mining and metals companies. Companies must focus their efforts to complicate attacks, detect malicious activities, respond to threats and educate the workforce to be security conscious.
Lookout for part two of our post where we look at three more risks facing mines in the new year.
Now more than ever mines need to have greater control over their operations and an enterprise resource planning solution that covers the total life of mine can help them do this.
Resolve Immix’ xMMP solution is exactly that, an addition to handling everything from managing mineral rights to shipping and dispatching and everything in between it. It provides mine operations with the tools and real-time data needed to improve asset performance, impress compliance and increase production from the mine to final product.
Resources: Top 10 Business risks facing mining and metals 2016-2017