Industry Challenges
Companies in the mining industry are facing a volatile business environment that is forcing them to rethink their strategies and the way they operate. The current crisis requires a sharp focus on operations and project development and, at the same time, a systematic method of capturing opportunities and preparing for the next up cycle. In this environment, mining companies face several key strategic questions:
Should we grow organically or look for acquisition opportunities? How will growth create value in the current environment?
How can we innovate in our business model to create value in a rapidly changing global landscape?
How do we plan our business along different timescales, given the uncertainty of possible scenarios?
How can we move our culture from a focus on production in the up cycle to a balance between production, quality, and cost in the current business environment?
BCG Competencies
BCG has a long history of working with companies in the mining industry on their most difficult problems. Our clients include some of the world’s top producers of nickel, aluminum, copper, iron ore, and coal.
In addition to our deep experience in functions such as strategy, corporate development, organization, corporate finance, and human resources, we also work extensively with companies on projects that touch the key pieces of the mining and nonferrous value chain:
Exploration—Growth strategy, geographic strategy, and major-junior alliances
Project Development—Investment project appraisal and approval, project execution improvement, and the building of flexibility into project design and execution
Mine Planning and Mine-Plant Operations—Optimization, elimination of bottlenecks, cost reduction, asset utilization, contracting strategy, sourcing, labor strategy, and synergies between different sites
Maintenance—Asset strategy, maintenance optimization, and outsourcing strategy
Sales, Trading, and Marketing—Downstream strategies, customer discovery, pricing strategy, and logistics and distribution strategy
Our project experience includes developing long-term strategies, producing detailed market assessments, and leading organizational restructuring. We also have a rich history of working with mining conglomerates on postmerger integrations and other issues specific to large organizations.