Integrated Planning and Forecasting for Mining Companies

Mining companies have little control over the demand for, supply of, and pricing of their product. Even more so over the last few years, the level of uncertainty has increased significantly, and there is always a degree of risk due to constant changes in global mining policies. Because of this, there is clear opportunity for mining companies to add value to their businesses by having the ability to react quickly to market changes. Even in situations with a robust underlying demand, having the ability to improve productivity, efficiency and profit margin can be the difference between attracting and not attracting capital, not only for newcomers but also for those well established in the mining industry.

There are many challenges facing mining companies today

Mining companies need to make strategic decisions that involve the allocation of significant amounts of capital at all stages in the mining process from exploration through to production. All along the way, they must also make operational decisions designed to maximize return on their investments on an ongoing basis. Small improvements in efficiency in the production line can have a fairly large impact on the bottom line. But to truly achieve operational efficiency, information and data must be shared across the operation, between departments, and between management levels.

Often complex and large in terms of both organisational and budget requirements, projects in the mining industry are often in remote locations. Because of this, the ability to track operations closely and quickly is a key to success. ASX listed mining companies also contend with providing accurate, forward-looking financial guidance to the capital markets, where results are highly scrutinised and “missed quarters” can have a negative impact on stock price. This is yet another reason why having accurate and timely data is critical for mining companies.

Move from siloed data sources to Integrated Planning in mining

A cloud-based connected planning platform unifies data, people, and plans within a single system. From an operational and tactical perspective, the Chief Operating Officer, together with regional and mine management teams, need specific and accurate financial and operational information to assess each situation and make the right decisions regarding different mining sites.

Changes in commodity prices, or currency fluctuations coupled with changes in production costs (i.e. fuel increases), can impact the overall mining plan as well as the financial plan. Having the ability to quickly, easily, and accurately assess the necessary data to alter assumptions used to plan and forecast and to keep key stakeholders aware of any changes is critical to business success. When you can confidently and transparently keep track of all the resources going into various capital projects, it makes it easier for the entire organisation to plan its allocation of resources and communicate progress to investors and key stakeholders.

Empowering mining companies to make better more timely decisions.

A Connected Planning approach for mining companies means that all relevant data is modelled in a single, centralised platform. In addition to traditional financial planning, a connected planning platform can be used to plan for, and link together plans from every functional area of the business, including production, Supply chain,  HSEC, Workforce planning etc..

This empowers businesses to make quicker and better-informed decisions, creating a competitive advantage. Models can be built quickly and without dependence on IT or advanced coding skills to connect different time horizons. This allows users to predict monthly and quarterly production figures on the fly, based on actual daily production.

Because all relevant data is stored within the same system and shared collaboratively, it improves the natural downstream flow of information in the production process and stockpile management.

Bi5 Solutions has built a reputation based on many years of experience working with mining companies in Australia to improve the enterprise performance management processes.

We’ve partnered with mining and mining services companies on improving the following: strategic and long-range planning, financial close and consolidation, detailed mine site planning, reporting and analysis of various aspects of mining operations (both financial and operational), and detailed business intelligence (BI) projects at mine-site level.

Contact us at bi5.com.au to find out more.