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AUGMENT · DECIDE · LAND
HOW TO SAVE A BILLION BUCKS · STORY ONE · MINING

Ten Centimetres and a Billion Bucks

"We can take about one billion out of this business's cost and add about two billion in additional value."

Madeleine Joubert · from the journals of a thirty-five-year consulting career · read the full story →
THE WAY IT WAS
100 cm blasted rock the seam blasted rock

A metre of advance, a metre of roof support, a metre of blasted rock — to recover a seam a fraction of that size. Because a metre is what a person needs to get in and drill.

THE NINETY-CENTIMETRE IDEA
90 cm less waste the seam less waste

Tighten the drill pattern. Lighter, cheaper explosive. Ninety centimetres of advance needs ninety centimetres of roof support — and a cleaner blast sends cleaner ore to the plant.

ONE CHANGE, FELT ALONG THE WHOLE LINE
Tighter drill pattern
Lighter explosive
90 cm advance
90 cm roof support
Cleaner sweep, cleaner ore
WHAT CAME OUT OF IT
£1bn
of cost out of the blast — explosives, timber, sweeping, across every site
£2bn
of value out of the plant — cleaner ore, better processing, higher yield
−10%
sweeping — less waste rock moved after every blast
+~10%
ore quality — the surprise, and where the bigger number was hiding
THE SUPPLIERS WON TOO

Timber suppliers had been cutting logs to a metre. Cut them to ninety centimetres and the offcuts add up to whole extra pieces. Their cost came down, their margin went up — and nobody's price was squeezed.

PROVED SAFE FIRST

Suppliers, buyers, quality engineers and mining engineers had to agree, test it, and prove it viable and safe before a single blast changed. The roof bolts were reviewed — and left alone. The evidence said they were fine.

The savings are not negotiated. They are designed.

Procurement is not chasing paper and negotiating contracts. It is seeing how a contract sits inside a process, then asking whether the process itself is right — one integrated cost line across every category in the sector, not a set of silos.