7th Moscow MINEX Mining Club meeting
«Operational efficiency in mining sector»
"Operational efficiency in the mining sector” became the key theme of the 7th meeting of the MINEX Moscow
Mining Club which took place on 9th February 2012. The meeting was hosted by the PwC international audit firm.
Meeting proceedings will be published by Club’s media partners: “Mineral Resources of Russia. Economics and
Management Journal”, “Subsoil use – XXI Century” Journal and the Russian Mining internet - portal www.miningexpo.ru.
Over 50 representatives from 47 Russian and international companies took part in the meeting representing OJSC
"Atomredmetzoloto", JSC "Severstal-Resurs", Alrosa, Inc., "Tin Ore Company", JSC "Raspadskaya Coal Company,"
IC Arlan, Inc. " Russian coal ", SUEK, IMC Montan, KPMG and others.
Distinguished guests at the meeting were Yuri Podturkin, the Head of Russian Reserves and Resources – GKZ and
Alexander Yezhov, Director of the “NAEN" - the Russian Society of Experts on Mineral Resources (NAEN). Directors
of the MINEX Russia mining forum and management of NAEN agreed on organising in 2012 several joint projects
such as holding the first national amateur Photo Contest "Russia Mining" and the “Russian Regional Mining”
sessions which will be held at the 8th MINEX Russia forum on 2-4 October in Moscow.
The meeting began with the introduction to the current mining operational practices by Kevin Russe, Operational
Efficiency Advisor at Competitive Capabilities International and by Agnes Ritter, Production Director at Severstal
Resources.
Kevin Russell illustrated the main factors which affect competitiveness and profitability of the mining and
processing companies and highlighted the fundamental benefits of cost effective management. Mr. Russell
presented examples of cost reduction offering high level overview of the Op-Ex cost reduction process.
Agnes Ritter focused on improving operating efficiency through active personnel involvement. Ms. Ritter
presented case study of workplace organisation that have substantially improved the efficiency and manageability
of the operating area, increased productivity and improved corporate culture at the JSC "Severstal-Resurs" mining
plants.
After the coffee break participants had the opportunity to get acquainted with the practical approach to the
optimization of mining operations by modeling the cost factor in the environment of Archimedes FACX. Ilya
Golubinsky from PwC spoke about the benefits of using the Archimedes FACX tool to effectively build and manage
a model of cost factors.
David Pearce, CEO of SRK Consulting Russia analyzed the possibilities and practical constraints in the optimization
process of mining enterprise. According to Mr. Pierce, optimization is a process that involves three basic steps:
diagnosis \ analysis \ planning, implementation and maintenance. A key factor in the success of the optimization
process plays the quality of the information obtained during the assessment of production, and an understanding
of how it affects the performance and costs.
At the end of the meeting, Alexei Smirnov, Partner, Tax & Legal Services | Energy, Utilities and Mining, PwC, who
acted as moderator of the meeting, summarized the meeting and the key points raised by the speakers. The meeting
participants expressed considerable interest in the issues proposed for discussion and took active part in the debate,
which continued after formal presentations over Australian wine tasting organized by PwC.
Proceedings of the 7th meeting of the MINEX
http://www.minexforum.com/ru/club/club-archives/
Mining
Club
are
available
at
the
Club: