Mill Operations - Lean and Keen

"Milling is the weak link in the process chain of many mineral operations. While this activity accounts for only a relatively small proportion of the direct costs of most mineral processing complexes, there are intangible and indirect costs associated with milling which are extremely large. For example, significant opportunity costs are associated with the relatively low yields which characterize this stage of the process.There are changes abroad in the world which I believe are going to cause us to reformulate the whole concept of milling. Increased competition in mineral markets are going to force managers to look anew at the high mineral values reporting to tailings which are a high opportunity cost for many operations. Tailings recovery plants are not the ultimate solution to this problem. Greater environmental concerns are going to increase the costs associated with tailings disposal and force the mining industry to look for other ways to dispose of waste products. Technology changes currently underway in manufacturing and other process industries, such as the automated 'lights-out' plant are going to be brought into this industry, and the changes will be dramatic.These are major long term changes which probably seem rather remote to many managers and professionals in existing operations which are faced with much more mundane challenges arising from day-to-day operations. However, I believe that milling is increasingly a 'lean and keen' operation involving fewer and fewer people, but who are increasingly skilled and professional. Traditional cost management approaches are no longer adequate and the industry has to take a new look at the nature of cost reduction in this core activity. This stage in the mineral process provides opportunities for value creation leading to a significant unit cost advantage for the corporations willing to adopt a total cost approach."