Mining Money

A Manufacturship Executive Briefing in association with Joe Clayton SubZero Group and Michael Minns HR

“How CEO’s of Mine, Rail and Port Operations can Rapidly Improve Return on Equity by examining and adapting Global Best Practices from Defence Sustainment and Automotive Manufacturing Industries.”

With Coal and Iron Ore prices continuing to fall from historical highs the imperative for CEOs of Mine, Rail and Port Operations is to Rapidly Improve Return on Equity [RoE] and restore plummeting shareholder value.

Historic high commodity prices in the early 2000s justified massive investment in iron ore and coal on the basis of feasibility studies delivering 15 to 20% RoE. However dramatic falls in commodity prices have impacted RoE falling to less than 5% and destroyed shareholder value.

BHP Coal president Mike Henry said in September 2015 “In BHP Billiton’s coal business we made a 3% return on capital in our Australian assets last year and that’s at the good end of the industry spectrum.” BHP Billiton has forecast a bleak outlook for global thermal coal demand over the next 15 years, with growth flat to slight uptick, followed by moderate decline. BHP Billiton had reduced its unit cost by half and achieved record production at most mines during the past three years, though more needs to be done to boost productivity.
Source: IHS Energy Australian Coal Report 23 September 2015

In the fiercely competitive global market only Global Best Practice companies will survive and thrive. Achievement of Global Best Practice requires a laser focus on Cost and Productivity.

Looking beyond the iron ore and coal industries, this executive briefing focuses on how operating executives can maximise availability and throughput performance of existing plant and equipment. Two capital equipment intensive industries that are under continual pressure to lift capability whilst simultaneously reduce costs are Defence Sustainment and the Automotive Manufacturing Industries. Both industries contain Global Best Practices in tackling these challenges which are outlined in sections 2, 3 and 4. Section 5 features a Mining Support Services Case Study and section 6 how to develop a truly high performance workplace culture.

1. Coal Industry Cost Reduction Strategies  – by Bede Boyle
Three Phases to achieve a Lower Structural Cost Base

2. Global Best Practice in Managing Complexity  – by Michael McLean
Lessons from RAAF and RAN sustainment of operational capability of complex systems to support the war-fighter

3. Lessons from the Automotive Industry – byJason Furness
Maximising uptime and throughput of capital intensive plant and equipment by fixing the Weakest Link

4. Operational Excellence Michael McLean
It’s not all about the Size of the Tonka Toys

5. Agility and Responsiveness in Mining Support Services Joe Clayton SubZero Group
How Mining Support Specialists adjust to a changing market

6. Key Characteristics of a High Performance Workplace Culture Michael Minns MMHR
How to develop a Transformational Workplace Culture

We hope these publication add value as you continue to build your business, and we encourage you to write or call us with your questions, observations, and suggestions.



Jason Furness

Chief Executive Officer


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