Outsourcing Mining Services In A Global Marketplace To Create A Competitive Advantage

One of the present trends in the mining industry is the increased use of mining contractors. In the past, many project owners have utilized mining contractors for topsoil stripping or overburden removal, usually on a short-term or periodic basis. In recent years, mining contractors have not only removed the overburden, but mined the product as well. Why is this change occurring? A prevalent trend in the mining industry appears to be the outsourcing of non-core and non-strategic functions, allowing producers to focus more on areas of technical expertise where higher incremental value is added—that is the processing, refining, and marketing of the product. As capital allocation becomes more critical, this trend is likely to continue.