Melbourne Mining Club
-
Upload
anglo-american -
Category
Presentations & Public Speaking
-
view
665 -
download
0
description
Transcript of Melbourne Mining Club
“FIRST THE ASHES… AND NOW THE RESOURCES” Melbourne Mining Club – 5th June 2014
2
ESTABLISHING MY CREDENTIALS I am also a mining engineer…
…that has traded his Baggy Green Cap for a Hard Hat.
3
ESTABLISHING MY CREDENTIALS I come from Wollongong…the intellectual capital of Australia…
…where we like to dress up…and wear colourful hats.
4
ESTABLISHING MY CREDENTIALS A more accurate photo taken with a “special movie star” lens…
….
5
ESTABLISHING MY CREDENTIALS A more accurate photo taken with a “special movie star” lens…
….
6
TRANSFORMATION STARTS WITH LEADERSHIP What changed…a loss in 2013…to a 5 nil whitewash 6 months later…
…but can they take it forward and create a new dynasty?
What changed?
• Home ground advantage? • Darren Lehman? • The colour of their underwear?
Is winning sustainable?
• Leadership & Talent…do they have the
leadership and talent to take success forward…possibly but not yet convinced?
• Systems and processes…are they technically superior…batting looks brittle.
• Innovation…still lagging the India T20 transformation!
Learning from the past?
• A dynasty requires all three…
7
THE AUSTRALIAN CRICKET STORY A chronology of events helps to paint a picture…
…the “Invincibles” set the standard…but a rapid decline follows.
1948 – The “Invincibles”…62% Don Bradman & a great side Brilliance on all technical elements × The tradition continues…
1950s – A Good Team…….42% Richie Benaud & a good side × A strong technical side, but not brilliant × The tradition continues…
1960s – The Slide …………36%
× Bill Lawry takes boredom to a new level × A solid team…but… × The tradition continues…
8
THE AUSTRALIAN CRICKET STORY A rebirth begins with a brash new captain…
…and the seeds of “disruptive innovation” are sown.
1971 – The New Era………..50% Ian Chappell captains his first test Technically competent…DK Lillee et al × The tradition continues…
1976 – The Montreal Olympics • Australia wins 1 silver medal • Malcolm Fraser announces Royal
Commission into “decline of sport” • Australia demands a new vision
1977 – The Packer Circus
• Chappell leads team into WSC • Shakes the core of the establishment • Australia becomes “professional”
9
THE AUSTRALIAN CRICKET STORY A brave captain rebuilds from the ruins of unguided disruption…
…leadership meets “disruptive innovation”.
1980s – Border Years…….32% Rebuilds the foundations • 1987 CRICKET ACADEMY established • Australia rebuilds – wins World Cup and
starts to believe in possibilities
1994 – Mark Taylor………..52% Intelligent leadership Talent emerges and is nurtured • Innovation starting to impact
1999 – Steve Waugh………72%
The science of leadership…with talent A new standard in technical application The end product of disruptive innovation
10
THE AUSTRALIAN CRICKET STORY A leadership forged in a new world…a “dynasty” emerges…
…and dominates the sport for more than 15 years.
Leadership The power of symbols… Understanding structure and processes… Setting new expectations on delivery
Structure and Processes Building on science…technical focus Strengthening the weakest links Every session had to be won
Disruptive Innovation
The Packer changes…winning is the game
Institute of Sport – science meets cricket Organisation and deliberate leadership
strategies become a winning edge
11
MINING: PATHWAY TO VALUE The lessons we can learn are universal…
…and our performance is only constrained by our imagination.
Leadership What is possible… The power of symbols… Capable people doing the right work…
Structure and Processes Resources define potential… Mining strategies focus on potential… Managing processes delivers potential…
Disruptive Innovation
People approaches drive productivity… Technologies step-change costs… Market demand can be created…
12
LEADERSHIP…
ORGANIZATION • Strategy defined to rebuild value………………………...“Driving Value” • Business groupings reflect strategy elements……..global market mix • Focus on rebuilding “core skills”...........................mining and markets
TALENT POOL • Levels of work…………………………………......managing complexity • Top 3 levels
• At start, 50% capable…………………………………now at +70% • 141 now down to 99…….............................clear accountabilities
SYMBOLS • Selling the jet and other “corporate conveniences”……..value focus • Focus on delivering……….......................................11% now at 48% • Asset reviews identify the 5 key issues.…………………...what to fix
An “Organization Model” is more than job descriptions…
…and the organisation is the STARTING POINT for driving change.
13
1 2 3 5 4
9%2%
71%
15%
4%
LEADERSHIP...
Sishen Kolomela Capcoal Los Bronces Mogalakwena
Collahuasi Jwaneng Orapa
(1) Total of 52 assets at Q1 2014 versus 55 assets at Q1 2013. Excludes both Khomanani and Khuseleka (no longer in production) and Union North and Union South are now reported as Union mine
Moranbah Cerrejón Snap Lake
Bathopele
40%
8%
48%
0%4%
Collahuasi Jwaneng Orapa
Sishen Kolomela Moranbah Capcoal Los Bronces Mogalakwena
Cerrejón
Kimberley Bathopele
1 2 3 5 4
4 Quarters to Q1 2013
Q1 2014 Only Failure to deliver can become a habit…it can become the culture…
Q1 2014
…where delivery must be an expectation.
2012/2013 Performance Delivery
• 19% of operations under budget with no plan for recovery
• 71% of operations under budget with a plan to recover
• 9% on budget
2014 Performance Delivery
• 4% of operations under budget with no recovery plan
• 48% of operations under budget with a validated recovery plan
• 48% of operations on budget. …and delivering a $1.2bn EBIT run rate improvement per Driving Value.
14
“THE CRITICAL PROCESSES”
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
15
PATHWAY TO VALUE: “THE CRITICAL PROCESSES”
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
1 2
3
16
RESOURCE POTENTIAL: MOGALAKWENA
Recognising resource potential is the starting point… Daily tonnes mined 2013 – 2014 YTD (including contractors)
New shovel
…pushing from 300kozs to 360kozs…to 420kozs…to ???.
+50%
17
PATHWAY TO VALUE: “THE CRITICAL PROCESSES”
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
1 2
3
18
Original cut back sequence
New cut back sequence
Method and design changes Mined out
Future cut
Current waste cut 30Mt (1Year)
New waste cut 30Mt (1Year)
Future cut
Mined out
PLAN
PLAN
SECTION
SECTION
Waste mined in 1 year does not expose the ore
Waste mined in 1 year exposes the
ore in the New Plan
MINING METHODS: MOGALAKWENA
19
0
100000
200000
300000
400000
500000
600000
700000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Eq. r
efin
ed P
t oz
BP14 (L1) Step 1
MINING METHODS: MOGALAKWENA
1. MSC = Mogalakwena South Concentrator; 2. MNC = Mogalakwena North Concentrator; 3. MCC = Mogalakwena Central Concentrator
Total Tonnes Mined
Platinum Ounces
-
50
100
150
200
250
14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100
Tota
l ton
nes
min
ed [M
t]
BP14 Step 1
Step 1
Step 1
20
0
100000
200000
300000
400000
500000
600000
700000
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
Eq. r
efin
ed P
t oz
BP14 (L1) Step 1 Step 2
MINING METHODS: MOGALAKWENA
1. MSC = Mogalakwena South Concentrator; 2. MNC = Mogalakwena North Concentrator; 3. MCC = Mogalakwena Central Concentrator
Total Tonnes Mined
Platinum Ounces
-
50
100
150
200
250
14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100
Tota
l ton
nes
min
ed [M
t]
Step 1 Step 2
Step 2
Step 2
21
0
100000
200000
300000
400000
500000
600000
700000
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
Eq. r
efin
ed P
t oz
BP14 (L1) Step 1 Step 2 Step 3
MINING METHODS: MOGALAKWENA
1. MSC = Mogalakwena South Concentrator; 2. MNC = Mogalakwena North Concentrator; 3. MCC = Mogalakwena Central Concentrator
Total Tonnes Mined
Platinum Ounces
-
50
100
150
200
250
14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100
Tota
l ton
nes
min
ed [M
t]
Step 1 Step 2 Step 3
Step 3
Step 3
22
PATHWAY TO VALUE: “THE CRITICAL PROCESSES”
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
1 2
3
23
DRIVING VALUE…IMPROVING THE PROCESS So what does an F1 car have in common with a box?
24
DRIVING VALUE…IMPROVING THE PROCESS So what does an F1 car have in common with a box?
…it is about people…and the desire to achieve a better outcome.
25
DRIVING VALUE…IMPROVING THE PROCESS So what does an F1 car have in common with a box?
…it is about people…and the desire to achieve a better outcome.
Six Sigma
Lean Manufacturing
Integrated Asset Planning
26
Strong productivity increases…100%... at Moranbah…
020406080
100120
Jan 12
Jan 14
Jul 13
Jan 13
Jul 12
Moranbah
0
50
100
Jul-12
Jan-13
Jan-12
Jul-13
Jan-14
Grasstree
Longwall move
Longwall move
Longwall move/Drift collapse
Longwall move
Longwall move
Longwall move
LW hours
LW hours
…Grasstree starting to show…+30%...encouraging performance.
IMPROVING THE PROCESS…MORANBAH
27
PATHWAY TO VALUE: THE MORANBAH JOURNEY
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
MET. COAL
MN- 2014 MN- 2013
MN- 2012
3.5mtpa 5.5mtpa
7.0mtpa
28
Focus on operating strategy and consistency and control…
…delivers a 30% production improvement and 20% cost reduction.
IMPROVING THE PROCESS…BARRO ALTO
29-05-201408-04-201418-02-201429-12-201310-11-201326-09-201312-08-201328-06-201314-05-201301-04-2013
7000
6000
5000
4000
3000
2000
1000
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
1
1
22222
1
1
1
2
2
2
1
11
11
111
1
22
2
22
2
2
22
2
22
2
1
1111
1
1
22
22
2
222
11
22
222
2
2
3
3
2
2
2
1
2
1
1
1
11
1
11111
11
1
1
1
2
222
1
1
2
2
2
111
2
2
22
22
2
2
2
11
1
111
11111222
2
222
2
2
1
2
2
22
1
1
11
2
22
Control Charter Q2-13 to Q2-14 Throughput (tms)_ X = 4520
UCL = 6805
_ X = 5151
_ X = 5392
_ X = 4956
UCL = 7062 UCL = 6573 UCL = 6474
LCL = 2566
LCL = 5018
UCL = 7162
_ X = 6090
BARRO ALTO CONTROL CHART – YTD MAY
Strategy Intervention
29
PATHWAY TO VALUE…KEY ASSETS
Note: Assets mapped to curve based on largest impact for improvement
Valu
e cr
eatio
n
Pathway to Value
Ore body Capability
Methods & Design
Operating Parameters
Planning & Scheduling
Continuous Improvement
Best Practices
Resource-to-market
Resource Potential
Understand Operating Options and
Value Configuration
Driving Performance
Endowment
MET. COAL IRON ORE
PLATINUM COPPER
NICKEL THERM. COAL
M PH
T S L BA
K O
COL
LB
J
MN GT N C
DIAMONDS Nb&P
30
DISRUPTIVE INNOVATION The face of mining is radically changing…because it has to…
…and those that get it right will lead the industry in returns.
Technologies New mining methods Open technology platforms Application of material sciences
People Managerial leadership Engagement drives practices Learning from the “restless innovators”
Projects and construction
Digital design and construction Modular configuration Communities and the MOTF
31
WHAT’S IN A HAT? Leadership is a journey…and every step is into the unknown…
…its not the outcome we debate…it’s the pathway to get there.
32
ANGLO AMERICAN
REAL MINING. REAL PEOPLE. REAL DIFFERENCE.
THANK YOU