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Company-wide Business Transformation

Our Role

The outsourced MARC contracts comprised of maintenance work planning through to execution, supply of spare parts and the overhaul of components for off-road trucks, shovels, drills and front loaders at three of the client’s mine sites. At the time, the client’s total annual MARCs expenditure was estimated at US$500 million.

As part of the scope of works, SMEC conducted a historical cost analysis, future baseline construction, improvement opportunities identification and savings estimate calculations.

This was followed by an assessment of potential opportunities and converting these prospects into cost savings. A road map was then developed for each mine site to migrate and support the required changes.

To date, the shovel maintenance contract for one site has seen a significant reduction of 12% or US$5.5 million per annum. These cost saving results were delivered through client collaboration, improved efficiencies, reduction of unnecessary expenditure, and the alignment of costs to current market conditions.

Project Overview

One of the world’s largest mining operators undertook a Company-wide Business Transformation to establish common, efficient core processes across more than 100 operating assets.

This initiative included a copper mine in northern Chile, one of the world’s largest producers of copper concentrate and cathodes.

SMEC was engaged to complete an assessment of several maintenance contracts, and identified improvements to deliver savings of more than two hundred million dollars over a period of eight years.

The assessment involved the review of 15 Maintenance and Repair Contracts (MARCs) for the maintenance services and spares of key mobile equipment to detect opportunities and reduce cost.

Technical Area:
Resources & Industry

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