Operational efficiency, improved productivity the goal

Improving productivity and
reducing cost will remain a
priority for mining houses
despite the rise in commodity
prices, said Bold Bataar,
Rio Tinto chief executive for
energy and
metals.
While 2016
was not as bad
a year as many
had predicted,
Bataar said
mining was
still far from
the boom years
when China
was seeing
double-digit
growth figures
and the demand and price of
commodities was high.
“Maximising value will
remain the priority,” he said.
“Mining more tons for the
same cost or even maintaining
current production at lower
costs will continue to be the
focus.”
He said concerns
around market volatility,
sustainability and risk
management remained for the
mining sector.
“We have prioritised our
portfolio,
performance,
people and
partners as we
move into this
new market
environment,”
said Bataar.
“Portfolio is
about low-cost
expandable
assets that
sit at the
bottom end
of the curve. These assets
must thrive in any price
environment. At the heart of
our strategy for the future is
performance. Operational
efficiency resulting in
improved productivity while
we continue to drive down
cost is still the goal.”
Bataar said this was
crucial for success in the
African landscape while
mining companies would
increasingly need to learn
from other industries how
to adopt technology and
innovation to be more
competitive.
“In Africa early adoption
of mobile technology
generated massive economic
returns for companies
willing to take the risk in
the early years. This
African experience
shows there is value
in challenging the
norm. Mining
houses that show
commitment
to challenging
the norm from
mine to market
will in many
ways define the
mining industry
in the future.”
Bataar said
innovation across the African
mining landscape was set
to increase in the coming
years as was the adoption of
technology.
INSERT
The African
experience shows
there is value in
challenging the norm.
– Bold Bataar