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Proudfoot Quarterly Mining E-Bulletin, June 2006
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Safety is Job #1 Over the past year, mining and mine safety have risen to the top of the North American political and media agenda as the industry experienced record commodity price increases and unfortunately, numerous high-profile accidents and fatalities. While recent legislation passed by the US Congress and Senate focused on tangible changes for accident mitigation – safety equipment and rescue resources – many mining organizations are reviewing safety and loss control policies, procedures and potential investments in new and innovative behaviour techniques geared toward accident prevention and loss control.
Proudfoot has the privilege of working with many of the largest mining organizations in the world, and with them, we have participated in numerous forward-thinking safety enhancement programs. In a recent project at an Australian coal mine, we worked with maintenance leaders creating performance interactions, similar to safety interactions, to enable a greater awareness of performance-related indicators. Establishing this same mechanism that reinforces safety to heighten the awareness of performance led to reductions in lost time.
We've noticed many mining companies looking to new and innovative techniques to create improvements in safety and loss control, for example a mine in South America is examining the use of psychological testing tools to determine workers' propensity toward injury and accident (through carelessness or distraction), allowing management to take corrective action in advance. Others are sharing safety-related information (causes of incidents) with competitor mines in the area, conducting joint safety awareness activities and making safety part of daily employee tasks.
Behaviour change is difficult to achieve, however many companies are starting to approach safety as a human engineering issue rather than one solved by the simple installation of safety systems. Approaching safety as a behavioural change (and a component of the mine culture) instead of mere training and procedures requires an examination of the actual behaviours, cues and prompts in the field.
While safety equipment is easily procured and legislated, the most important aspect of safety – human behaviour – is more challenging. It takes a behavioural-change approach, extensive training, and active supervision to save lives, day in and day out.
Our next edition will contain case studies and helpful hints on this all-important topic!
Struggling to improve safety? Click here for a free,
no-obligation consultation.
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Proudfoot's Jon Wylie in his PPE.
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Proudfoot's Ken Honsberger
NOTABLE QUOTE
"The fact that companies are having such a hard time to find projects to invest in from their exploration and development activities ... that's a force that naturally leads to consolidation."
– Richard Adkerson, CEO, Freeport-McMoRan Copper & Gold |
Managing Merger Mania
Merger fever is running high, fuelled by a shortage of assets and an excess of cash in mining organizations around the globe. So far this year, the value of announced deals in the global mining, metal and steel sectors was $133.7 billion – that's up 237% from $39.7 billion at this time last year, according to market research firm Dealogic.
Mergers provide the opportunity to generate tremendous synergies and shareholder value, but they can also create painful culture clashes and expense overrun. Most large, complex organizations benefit from third-party operational guidance during M&A transitions to ensure organizational alignment.
Before, during, and after a merger or acquisition, it's particularly critical to assess a company's operational performance.
Click to view Ken Honsberger's full article from Mergers & Acquisitions Journal
Our next edition will contain an analysis of the outcome of last year's acquisitions – how has output, labour size and profitability been affected?
Merger or acquisition in your future? Click here for a free,
no-obligation consultation. |
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Top 10 Tire Preservation Tips
Tires are a challenge to procure, with an ever growing price tag. Here are a few tips to make sure your tires go the distance:
- Keep your roads in good shape. Grading, level areas and rock clean up all lead to longer tire life.
- Inflate your tires to the correct levels. Make sure inflation criteria are part of your regular maintenance check.
- Ensure your load size is within limits. Overloading the truck creates extra strain on the tires as well as the truck itself.
- Design your roads with tire life in mind, such as grade and angle of turn. A tight turning radius and excessive breaking will increase tire wear.
- Improve driver skills. Improved skills in truck handling, turning, loading and backing in will extend tire life. Many tires are damaged because the driver backs their vehicle in by feel, rather than by skill.
- Keep the dump, shovel face and crusher areas clean. Reductions in clutter and debris will reduce side wall problems.
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Explore tire options. Experiment with different tire solutions, width of rear tires, non-bias tires, etc.
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Minimize truck movement through dispatch effectiveness. Re-routing of trucks and excessive wait times means trucks are moving too much.
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Supervise truck movement. Active and diligent oversight of drivers and their habits will reduce inefficiencies and waste.
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Train drivers to be more proactive. Drivers can spot problems before they start and help their colleagues and the mine in its success.
Need help with maximizing tire life? Click here for a free,
no-obligation consultation.
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NOTABLE QUOTE
"The unplanned extreme demand upturn in areas like China, the Iraq war and increasing military usage of heavy-vehicle tires, construction and related industry growth . . . overloaded the raw materials input requirements and existing tire manufacturing capacity . . . These supply and demand pressures are anticipated to potentially continue into 2007/8."
– Ben Ludik, strategic sourcing, Gold Fields |
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Feedback & Contribute
Proudfoot's E-Bulletin editors would greatly appreciate your feedback, contributions and ideas. Are we right on the money, or off the mark? Don't be shy, send us an e-mail and share your thoughts! We want to provide you with operational thought leadership that will impress and intrigue you every quarter.
Proudfoot Consulting is an international firm with 60 years of experience in helping clients achieve sustainable financial and operational improvements.
Proudfoot's mining experience was developed over more than 150 mining projects on five continents.
Some of Proudfoot's most prominent clients include:
Anglo Coal, BHP Billiton, Centennial Coal, Inco, Inmet Mining, Newmont Mining, Placer Dome (now Barrick Gold Corporation), RAG Coal International, Rio Tinto and more.
For more information or to speak with a member of the Proudfoot Mining Practice Team, please call +1-561-624-4377 or e-mail
mining@proudfootconsulting.com
Proudfoot E-Bulletin Editor: Channing Rollo.
Editorial Board: Joe Farrell, Marius Ellis, Cay Mims, Damian Walsh, Alan Steelman, Carol Bresnicky,
Jon Wylie, Mark Bagster and Jonathan Clegg.
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