Challenges of a mining operation start-up
A large mining company in Chile required support to start the operations of a new copper mining site with an investment of USD +2,500 million.
We were contacted for the need to start with the management organization structure, responsible for providing and managing all the strategic services for the operation. We defined and implemented the management operational structure and managed the contracting of over 130 service contracts required for the pre-stripping (first stages of material removal to reach copper) for an amount of over USD 1,500 million during 4 months.
Due to the high operation costs, any delay in the copper production had a high negative impact on the benefits forecast by the owner. For this reason, all our effort was devoted to reducing that impact. We formed a work team together with the company. Thanks to great commitment and flexibility, we managed to achieve the expected results.
As the company was still in the contracting process, our team had considerable flexibility to respond to different kinds of challenges required to be covered before starting the operation. In such sense, the management team leadership was essential in the alignment of the effort and resources to meet the company’s commitments.
We provided the technical support to design and implement the operational structure and to define and implement governance. Besides, we led the contracting process of the services included in the start-up strategy. Additionally, we provided the methodology for the contracts administration, and the training of the people who were hired to deal with the strategic services supporting the operation.
Our achievements: - We implemented the organization structure. - We materialized, in time and manner, the contracting of the services of USD 1,500 million, which enabled to start with the pre-stripping phase. - We accompanied the hiring of the employees of different areas and then we gradually ceded their contracts’ administration. - We trained the contract administrators, transmitting the necessary knowledge to ensure to operational continuity in their tasks.
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