From export facility arrangements to customer contracts, commercial teams hold the key to extracting profits from mining operations.
A mining company’s commercial team is critical to the profitability of the operation. From port operations, freight handling, and export logistics to final customer contracts, commercial operations bring the production side of the company to market. The challenge for producers is to know how to make the best use of the value levers they have available.
Companies achieve better returns for their production investment when they find new ways to create additional value from marketing and sales, strike the right balance between value and risk in the sales book, and adjust commercial models in response to evolving market conditions.
Despite fluctuations in commodity prices, mining companies can add value by applying a structured and strategic approach to their commercial operations. While a disciplined approach to marketing and sales is the first step, companies can add additional value by taking an integrated perspective on their supply chain and applying more sophisticated commercial levers geared towards exploiting market imperfections.