AFRICAN OPEN CUT IRON ORE MINE
From 600,000 to 1 million tonnes a month in year one; 11.6 Mt in year two
The Challenge
A new mine had to reach its design rate of 9 Mt a year (750,000 t a month) with a largely local workforce new to mining, which was essential for community integration. Output had stalled at about 600,000 t a month, and blast sequencing was being driven by urgent delivery pressure.
LOCATION
Africa
MINE TYPE
Open Cut Iron Ore
SALES INCREASE
+$244 million p.a. by year two
What changed
From June of the first year, the mine moved to flow-based operation with a daily Flow Room, and staff were trained in Theory of Constraints applied to mining. The Flow Room was set up for 50 people and often drew up to 70.
Results
Monthly output rose to about 1 million tonnes by year-end, giving 8.5 Mt for year one. In year two the mine produced 11.6 Mt, about 29% above its original design capacity. The added output was worth about $244 million in revenue in year two. Other operations visited the mine to learn from it.