Our client, one of the major platinum producers in Africa, been using a contractor mining model since its inception, which not only included mining and engineering activities but also administrative and technical services functions. To remove the ‘contractor margin’ and to gain better control of improvement opportunities, the client was considering moving to an owner operate model.

Partners in Performance was asked to evaluate the existing model and, through a detailed transition plan, costing and risk assessment, determine the viability of making such a move. We were subsequently engaged to facilitate the implementation.

Key deliverables

• Gained complete control of all aspects of the operation whilst not only maintaining levels of production but increasing them during the transition period, with a 15% increase in the first three months.
• Sustained increased levels of production and cost reduction more than two years after the transition ‑ 30% increase in tonnes, 28% increase in ounces and 23% decrease in cash cost.