Survival strategy: every bit counts

"The Iron Ore Company of Canada (IOC) operations in Labrador and Quebec, in Canada, is among the largest openpit mining complexes on a world wide basis. Since the 1981-82 recession, IOC has embarked on a comprehensive cost reduction and productivity improvement program in order to survive in the world iron ore market.This paper will outline the approach used in prioritizing the cost reduction items.IntroductionMuch of the mining industry in North America is in a crisis state. Most producers are operating at production levels well below capacity, some have been merged or sold, while others have been mothballed or closed permanently. For many of us still operating, the future is uncertain. Despite the many cutbacks and closures, there is still an abundant supply of minerals in the world market and there is almost no hope for any relief on price pressures on most mineral commodities in the near future. The Iron Ore Company of Canada (IOC) operates an iron ore mine, a concentrator and a pellet plant known as the Carol Project located in Labrador City, Newfoundland. This concentrator and the pellet plant have the annual capacity to produce 20 million and 10 million tons respectively. A company owned and operated railway links this operation with the dock terminal facilities in Sept-Iles, Quebec.In the past decade the Iron Ore Company of Canada has been one of the largest producers of iron ore products in the world. Its pellets and concentrates as well as natural ores were sold in North America, Europe and the Far East. In 1981-82, sales, particularly in North America, went into a serious decline. For almost 30 years, the gospel IOC preached to employees was ""production, production!"" There were many innovations, and millions of dollars were spent on the biggest and best equipment, on research and development, on training and developing employees."