Overview And Findings: Recent Study On The Productivity Of The Chilean Mining Industry - Energy and Natural Resources - Mondaq Chile - Mondaq Business Briefing - Books and Journals - VLEX 691539041

Overview And Findings: Recent Study On The Productivity Of The Chilean Mining Industry

Profession:Harris Gomez Group

Productivity in Chile´s mining industry has lagged that of other developed mining jurisdictions for some time. In response to these concerns, the government conducted a study through Comisión Nacional de Productividad (CNP). The study consisted of the following:

Collaborative report between CNP, Mining Ministry, Cochilco, Mining Council, Fundación Chile, Matrix Consulting and many others. Benchmark analysis comparing 12 Chilean operations from large scale copper mining with best practice operations from Australia, Canada, United States, Peru and Sweden (sample is 30% of world production) Over 500 interviews in 12 Chilean mines, 7 international best practice mines (1 Australian), suppliers, contractors, institutions, and experts.

Alfie Ulloa detailed last April, at Cesco Copper week, that the data collected show important productivity gaps, both within Chile and with respect to international operations.

"Regarding the efficiency in the use of equipment, there is an important heterogeneity (or difference) of productivity between the Chilean mining sites considered in the sample with the average of the international sample: For example, in transport, the most efficient deposit in Chile used trucks 80% of calendar time, while the least efficient 47%. The national (international) average is 64% (71%)", he stated.

The following are recommendations from the report on Mining Productivity. They are grouped into three large groups: private, sectoral and public. The first (private) is manageable by companies themselves, the second case (sectorial) require coordination between the sector's agents, for example, mining companies with their suppliers and/or contractors (among others). The third case is manageable by the public side.

Private – Managed by Companies

Reduce the rotation of senior executives. Reduce the layers of hierarchy. Change the "controlist" management culture, which reduces initiative (cuts off the wings of those below), dilutes responsibility and raises costs. Greater emphasis on empowerment and accountability. Too much oversight is dedicated to administrative tasks (filling out paperwork and documenting work) at the expense of better planning and organization of work. Improve adherence and compliance with plans. Consider using fleets of single model equipment to improve maintenance and reduces parts inventory. Increase automation and greater real time data management. Establish a meritocratic culture increasing internal...

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