South African mining has been at the forefront of the industry for many years. Our local mineable resource reserves are being depleted. As a result, South African mining companies are expanding rapidly into Africa and other parts of the world, and are facing stiff international competition for finite resources. Many mining companies are optimising their resource asset portfolios in an attempt to focus on areas that best suit their expertise and experience.
Whilst mining provides a substantial number of job opportunities in Africa, and as such is a key contributor to the socio-economic development of the continent, the industry is being plagued with labour-related issues that disrupt the productive performance of mining companies. This adds further pressure to rising operational and capital costs of mining activity, at a time when the economics of mine projects are starting to look less attractive in the face of declining commodity prices. This is forcing miners to put a much greater focus on project returns rather than production volumes. Coupled with lower resource grades, costs are affecting decisions pertaining to continued production, expansions and new projects. Unless mining companies improve operational efficiency, proactively control maintenance costs and invest in cost reducing technologies, this trend is likely to continue.
EON provides services to the mining industry, specifically focusing on critical issues facing the industry today. These include:
By understanding the cost drivers, we enable client organisations to reduce costs at an enterprise and functional level. In this regard we help our clients to streamline their operating models by capitalising on the synergies between the core functions of the business, be it for existing operations or during post-acquisition integration. With the appropriate investment and change management efforts our clients can expect to realise sustainable cost benefits of 10%-30%.
Given today’s volatile market conditions, mining companies face ever changing degrees of demand uncertainty. We enable our clients to make informed strategic decisions by integrating financial metrics and intangible factors into a decision support model that facilitates scenario development for intelligent capital allocation and demand off-take decisions.
Many mining projects are being put on hold, waiting for commodity prices to improve, or legislative intentions to become clearer. We enable our clients to prioritise their investment portfolios to increase returns on invested capital from a holistic perspective. In so doing we assist our clients to identify those projects that will yield the most optimal returns for sustainable shareholder value.
Despite the challenges facing mining companies, they must still manage their full spectrum of projects and operations to yield optimised returns and profitability. In this regard we enable our clients to gain control over their entire portfolio, including demand management, projects in various stages of development, and operations. By integrating these initiatives into one single system, we provide critical reporting transparency and prioritisation information.