Oz Minerals identifies another A$25m in savings
PERTH (miningweekly.com) – Copper miner Oz Minerals on Friday told shareholders that the company had identified a further A$25-million in cost savings, in addition to the A$20-million already achieved.
In late 2015, the South Australian copper miner launched a targeted programme to drive down costs by working with contract partners to reach a more competitive pricing regime, and to identify internal efficiencies.
The initial cost saving programme focused on supplier and corporate contract renegotiations, operational efficiencies and a salary freeze for all employees, including executives and board members.
“Our strategic partners are working collaboratively with us to substantially reduce our costs,” said COO Bob Fulker.
“By rebasing our cost structure now, we will improve our ability to meet or exceed guidance and take full advantage of the growing opportunities in this counter-cycle.”
MD and CEO Andrew Cole pointed out that the next stage of the cost savings programme would focus more on supplier contracts and internal productivity.
“An important part of our strategy is to be a lean business and operate in the bottom half of the cost curve. We are determined to drive costs down even further to set ourselves up for future growth,” Cole said.
In addition to the cost savings programme, another demobilisation of equipment and personnel at the Prominent Hill openpit mine was completed in March.
Cole noted that, in total, one excavator and 14 trucks were removed from the operations.
Since the review of the strategic plan and the Prominent Hill mine plan last year, the decision to bring forward the openpit mine plan would save an additional A$60-million over the life of the openpit.
Comments
Research Reports
Projects
Latest News
Showroom
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
