By Minopex

Today, most mining companies manage their own operations and maintenance. “However, when contemplating how to de-risk a project, outsourcing operations is often a consideration. With an outsourced approach, companies can focus on their core business while a trusted provider operates and maintains their mines, process plants and laboratories on their behalf,” believes Renira Reddy, Director Business Development at Minopex SA.

Minopex’s operational teams have delivered reliable, outsourced operations services to clients across Africa and the Middle East for the last 25 years.

Why Implement De-Risking Strategies?

De-risking a project ensures greater investor confidence. Reddy advises that a low-risk project attracts more investors, driving greater success rates. She confirms that de-risked projects typically:

• Boost investor confidence
• Improve viability of the overall project
• Give the project the best opportunity for success
• Delivers optimal production outcomes for clients

Outsourced Operations Feed De-Risking Strategies

There are very specific areas where outsourcing is a possible strategy. “These include when opening a mine in a new region, or when mining a mineral that the internal team has not previously worked with. The deciding factor is experience; can an outsourced team bring greater experience and knowledge to the project?” adds Reddy.

Outsourcing would be greatly beneficial when:

Expanding into new Regions

For example, if a South African mining client were to expand into Africa, they may outsource operations to Minopex as its team has operated successfully in the region.

Working with New Commodities, Minerals, or Technologies

If a coal client or one with experience in gold diversifies into platinum, for example, their internal teams may not have the necessary platinum experience to ensure return on investment. However, by outsourcing platinum operations to a company with the required expertise (like Minopex) these opportunities can be leveraged, and success achieved in the platinum space.

Helping Mid-Tier and Junior Miners Gain Experience

Outsourcing operations gives mid-tier or junior miners the incentive to enter the market; with a chance at success. Operational support, systems, procedures, and policies are available to establish operations with a bankable foundation.

Joint Ventures

In many instances, a central processing facility can either support two separate clients’ mines, or a single mine with multiple owners. Under these conditions, outsourcing operations ensures that an independent operator protects the interests of all parties involved. Minopex is currently successfully delivering operations and maintenance services to a client within this scope.

Projects Requiring Quick Project Ramp-Up and Ongoing Optimisation

Minopex’s outsourced operations services and operational readiness capability offer customers access to proven, pre-developed systems, policies, and procedures. Very little needs to be developed from scratch, which significantly speeds up the process of establishing new sites.

Clients Prefer the Outsourced Model

This gives clients the opportunity to keep the core company small, without compromising on its ability to deliver its business objectives. This strategic approach helps juniors and mid tiers stay nimble, while moving the risk of operations out of the core function.

Clients Are Seeking Cost Effective Solutions

Independent analyses have shown that outsourced operators like Minopex are able to provide cost savings for the project. Savings are mostly generated through bulk supply agreements and clever operational structures, having a positive effect on the client’s bottom line.  More specifically, project value is attained early, maintained, and continuously improved throughout the operations period.

Requiring Technical Expertise and Capabilities

Having successfully managed the operations of almost 50 processing plants across various sectors, the Minopex team has the technical expertise and capabilities required to drive project success for its clients.

Sustainable Relationships for Operational Longevity

“The most successful business relationships are those that develop as partners. As a solutions partner, the Minopex team seamlessly integrates into the client’s operations team. Now one operational unit, the team strives for one objective; delivering the best for the project, long term,” concludes Reddy.

For more information about Minopex’s Operations Services, please contact Renira Reddy at renira.reddy@minopex.com.