Open Pit Gold Mine

Overview:
The company is mainly focused on gold projects but has a significant by-product in copper which holds a significant place in the clients commodity portfolio.

Scope of Project:
Reduce the operating cost by removing heavy mobile and ancillary equipment using Lean techniques.

Application:
This 11 month project was completed with all objectives being met. Three 794 Caterpillar tipper trucks were removed from the open pit operation and have been transferred to a sister mine in the group bringing substantial cost savings. Other ancillary equipment such as graders and feeders were reduced by 13%.

The project started with a Value stream Map of the operation in its entirety; from drill and blast, through to gold shipment. Whilst logistics planning played a major part in meeting project target, the stability tools helped achieve high fleet availability. TPM initiatives on truck maintenance, QCO on shift handovers, One Piece Flow application on drill and blast, all helped to secure a more efficient operation.

To underpin the results so far, the mine has run its first Lean Immersion course to educate senior managers in Lean.

Results:
The company has achieved the target of reducing the mobile fleet for the Open Pit operation by 20%. This, along with other savings has provided a 14:1 return on investment with LMR, and the desired reduction in unit cost.

Future Plans:
Increase the uptime in the mill by reducing plant shutdowns using Lean techniques by 30%.