CREATING VALUE TROUGH THE MINING LIFECYCLE
Mining is a long-term business and timescales can often run into decades. The period from initial exploration to the start of production can exceed ten years and, depending on the nature of the project and the market conditions, it may take more than five years of operation to recoup the initial investment.
Where possible, mines exploit higher-grade areas towards the start of the mine life in order to maximise returns. As a result, average ore grades may decline over time, with production volumes decreasing along with revenue.
The Group’s mining operations depend on a range of key inputs such as energy, water, labour and fuel.
The management of these inputs has a significant impact on operating costs and the sustainability of mining operations, so ensuring the long-term supply of key inputs is a vital part of the business.