The mining industry is uniquely characterized by its reliance on finite natural resources, long project life cycles, and significant environmental impact. KPIs in this context are particularly valuable for tracking the progress of exploration activities, the efficiency of resource extraction, and the management of environmental and social governance (ESG) criteria. They are instrumental in making data-driven decisions that can lead to reduced operational costs, extended mine life, and improved stakeholder relations. By focusing on KPIs, mining companies can enhance their strategic planning and operational performance while ensuring responsible stewardship of natural resources.
KPI |
Definition
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Business Insights [?]
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Measurement Approach
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Standard Formula
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Asset Utilization More Details |
The percentage of time production equipment is used effectively, indicating the efficiency of asset management and maintenance practices.
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Assess equipment efficiency and identify potential downtimes or maintenance needs.
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Percentage of available working time that mining equipment is operational.
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Actual Operating Time / Total Available Time * 100
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- Increasing asset utilization may indicate improved maintenance practices or increased demand for production.
- Decreasing asset utilization could signal equipment breakdowns, inefficiencies in production processes, or reduced demand for products.
- What are the primary reasons for equipment downtime or underutilization?
- How does asset utilization compare with industry benchmarks or historical performance?
- Implement preventive maintenance schedules to minimize equipment downtime.
- Invest in training programs for equipment operators to ensure optimal usage.
- Regularly review and optimize production schedules to maximize equipment utilization.
Visualization Suggestions [?]
- Line charts showing asset utilization trends over time.
- Pareto charts to identify the most significant contributors to underutilization.
- Low asset utilization can lead to increased maintenance costs and reduced overall productivity.
- High asset utilization without proper maintenance can result in unexpected breakdowns and production delays.
- Asset management software for tracking equipment usage and maintenance schedules.
- IoT sensors and predictive maintenance technology to proactively identify potential equipment issues.
- Integrate asset utilization data with maintenance management systems to optimize maintenance schedules.
- Link asset utilization with production planning systems to align equipment usage with demand forecasts.
- Improving asset utilization can lead to cost savings and increased production capacity.
- However, overutilization without proper maintenance can lead to quality issues and increased risk of equipment failure.
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Blasting Efficiency More Details |
The effectiveness of blasting operations in fragmenting rock to the desired size and minimizing ore dilution and misfires.
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Evaluates the effectiveness of blasting techniques and determines potential cost savings in explosives.
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Measures the volume of rock broken per unit of explosive used and the quality of the fragmentation.
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Volume of Rock Broken / Quantity of Explosives Used
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- Increasing blasting efficiency may indicate improvements in drilling and blasting techniques or better rock fragmentation.
- A decreasing efficiency could signal issues with equipment maintenance, suboptimal blasting patterns, or inadequate fragmentation.
- Are there specific types of rock or geological conditions that consistently impact blasting efficiency?
- How do our blasting efficiency metrics compare with industry benchmarks or best practices?
- Invest in advanced drilling and blasting technologies to optimize fragmentation and reduce ore dilution.
- Regularly assess and adjust blasting patterns based on rock characteristics and operational feedback.
- Implement real-time monitoring and feedback systems to quickly address misfires and adjust blasting parameters.
Visualization Suggestions [?]
- Line charts showing the trend of blasting efficiency over time.
- Scatter plots correlating blasting efficiency with factors like rock hardness or drilling depth.
- Low blasting efficiency can lead to increased operational costs and reduced ore recovery.
- Consistently high misfire rates may pose safety risks to personnel and equipment.
- Drill and blast management software like iRing or BlastIQ for real-time data analysis and optimization.
- Geotechnical mapping and modeling tools to better understand rock characteristics and optimize blasting designs.
- Integrate blasting efficiency data with production planning systems to align drilling and blasting with downstream processing capabilities.
- Link with maintenance management systems to ensure timely equipment maintenance and minimize downtime.
- Improving blasting efficiency can reduce overall mining costs and increase ore recovery, but may require initial investment in technology and training.
- Conversely, a decline in blasting efficiency can lead to increased operational costs and reduced profitability.
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Carbon Emissions per Ton More Details |
The amount of carbon dioxide emitted per ton of ore processed, representing the environmental impact of mining activities.
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Identifies environmental impact and helps target reductions in greenhouse gas emissions.
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Calculates the amount of carbon dioxide emissions released per ton of material produced.
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Total CO2 Emissions / Total Material Produced
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- Carbon emissions per ton may show a decreasing trend due to the implementation of more sustainable mining practices.
- An increasing trend could indicate higher energy consumption or inefficient processing methods.
- What are the primary sources of carbon emissions in our mining operations?
- How do our carbon emissions per ton compare with industry benchmarks or best practices?
- Invest in renewable energy sources to power mining operations.
- Implement more efficient processing technologies to reduce energy consumption and emissions.
- Explore carbon capture and storage (CCS) technologies to mitigate emissions from mining activities.
Visualization Suggestions [?]
- Line charts to track changes in carbon emissions per ton over time.
- Comparative bar charts to show emissions levels across different mining sites or processing methods.
- High carbon emissions per ton can lead to regulatory fines and penalties.
- Increased environmental scrutiny and negative public perception can impact the social license to operate.
- Environmental management software to track and report carbon emissions data.
- Energy management systems to optimize energy usage and reduce emissions.
- Integrate carbon emissions data with sustainability reporting and corporate social responsibility initiatives.
- Link with supply chain management systems to assess the environmental impact of suppliers and transportation.
- Reducing carbon emissions per ton can enhance the company's reputation and attractiveness to environmentally conscious investors.
- However, implementing emission reduction measures may require significant capital investment and operational changes.
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CORE BENEFITS
- 30 KPIs under Mining
- 15,468 total KPIs (and growing)
- 328 total KPI groups
- 75 industry-specific KPI groups
- 12 attributes per KPI
- Full access (no viewing limits or restrictions)
FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.
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Community Engagement Index More Details |
A measure of the effectiveness of a mining company's engagement activities with local communities, including communication, conflict resolution, and community development initiatives.
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Reflects the company's social responsibility performance and relations with the local community.
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Considers factors such as community meetings, CSR initiatives, and local employment rates.
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Sum of Community Engagement Activities Score / Total Number of Activities
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- Increasing community engagement index may indicate improved communication and conflict resolution with local communities.
- A decreasing index could signal a decline in community development initiatives or unresolved conflicts.
- Are there specific communities where our engagement activities are less effective?
- How do our community engagement efforts compare with industry standards or best practices?
- Invest in community needs assessments to better tailor development initiatives.
- Establish regular communication channels with local community leaders to address concerns and conflicts proactively.
- Provide training for staff on cultural sensitivity and effective community engagement strategies.
Visualization Suggestions [?]
- Line charts showing the trend of the community engagement index over time.
- Geospatial maps to visualize the distribution of engagement activities across different communities.
- Low community engagement index may lead to protests, legal challenges, or project delays.
- Inadequate engagement can harm the company's reputation and social license to operate.
- Community relationship management software to track and analyze engagement activities and feedback.
- Social impact assessment tools to measure the effectiveness of community development initiatives.
- Integrate community engagement data with project management systems to ensure that community concerns are addressed in project planning and execution.
- Link engagement metrics with corporate social responsibility reporting for comprehensive sustainability performance management.
- Improving the community engagement index can enhance the company's social license to operate and foster positive relationships with local stakeholders.
- Conversely, a declining index may lead to increased regulatory scrutiny and reputational damage.
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Cost per Ton More Details |
The total mining cost divided by the total amount of ore or mineral produced, indicating the cost-efficiency of mining operations.
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Provides a measure of production efficiency and helps in cost management.
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Total operational costs divided by the total tons of material produced.
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Total Operational Costs / Total Tons of Material Produced
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- Increasing cost per ton may indicate rising production costs or declining ore quality.
- Decreasing cost per ton could signal improved operational efficiency or cost-saving measures.
- What are the primary cost drivers contributing to the total mining cost?
- How does the cost per ton compare to industry benchmarks or historical performance?
- Implement advanced technologies for ore processing to improve extraction efficiency.
- Optimize equipment maintenance schedules to reduce downtime and maintenance costs.
- Explore alternative energy sources to reduce fuel and energy expenses.
Visualization Suggestions [?]
- Line charts showing the trend of cost per ton over time.
- Pareto charts to identify the most significant cost drivers contributing to the total mining cost.
- High cost per ton can lead to reduced profitability and competitiveness in the market.
- Fluctuating cost per ton may indicate volatility in input costs or operational inefficiencies.
- Enterprise resource planning (ERP) systems to track and analyze various cost components.
- Cost management software to monitor and control expenses related to mining operations.
- Integrate cost per ton analysis with production planning systems to align mining activities with cost targets.
- Link cost per ton data with financial reporting systems for comprehensive performance analysis.
- Reducing cost per ton may lead to increased profitability but could require initial investment in process improvements.
- Conversely, a high cost per ton can affect the overall financial health of the mining operation and impact investment decisions.
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Drilling Penetration Rate More Details |
The speed at which drilling is conducted, usually measured in meters per hour, indicating the efficiency and effectiveness of drilling operations.
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Indicates drilling efficiency and guides machinery and process improvements.
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Measures the rate at which drill bits penetrate rock.
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Total Meters Drilled / Total Drilling Hours
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- Increasing drilling penetration rate may indicate improved technology or more efficient drilling techniques.
- Decreasing rate could signal equipment malfunctions or inefficiencies in the drilling process.
- Are there specific drilling methods or locations that consistently yield higher penetration rates?
- How does our drilling penetration rate compare with industry benchmarks or with different types of drilling equipment?
- Invest in advanced drilling equipment and technology to improve penetration rates.
- Regularly maintain and calibrate drilling machinery to ensure optimal performance.
- Train and educate drilling operators on best practices for maximizing penetration rates.
Visualization Suggestions [?]
- Line charts showing the trend of drilling penetration rates over time.
- Comparative bar graphs displaying penetration rates across different drilling locations or methods.
- Low penetration rates can lead to increased drilling time and costs.
- Consistently high penetration rates may indicate aggressive drilling practices that could compromise safety or equipment integrity.
- Drilling performance monitoring software to track and analyze penetration rates in real-time.
- Geological mapping and surveying tools to identify optimal drilling locations for higher penetration rates.
- Integrate drilling penetration rate data with maintenance schedules to ensure equipment is always in optimal condition for efficient drilling.
- Link penetration rate analysis with cost tracking systems to understand the financial impact of drilling efficiency.
- Improving drilling penetration rates can lead to cost savings and faster project completion.
- However, overly aggressive improvements may compromise safety and environmental standards.
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In selecting the most appropriate Mining KPIs from our KPI Library for your organizational situation, keep in mind the following guiding principles:
It is also important to remember that the only constant is change—strategies evolve, markets experience disruptions, and organizational environments also change over time. Thus, in an ever-evolving business landscape, what was relevant yesterday may not be today, and this principle applies directly to KPIs. We should follow these guiding principles to ensure our KPIs are maintained properly:
By systematically reviewing and adjusting our Mining KPIs, we can ensure that your organization's decision-making is always supported by the most relevant and actionable data, keeping the organization agile and aligned with its evolving strategic objectives.