At our Paracatu mine in Brazil, the comprehensive, cost savings PTU 950 program has achieved improvements and efficiencies throughout the mine, including in its supply chain processes.
The team worked with end users in the operation to reduce Total Cost of Ownership (TCO). This includes enhancing systems to find new and more cost-effective suppliers and contractors, closely reviewing demand to ensure the goods and services procured are a proper match, and challenging current processes. The team also restructured supply chain processes to introduce category management to leverage a more data driven approach to identify opportunities and collaboration with the business to speed value delivery.
The goal of the project is consistent with our supply chain function’s two priorities of governance and sourcing, and the enhanced Supply Chain Function initiative we announced in May.
PTU 950 focused on realizing savings in strategic contracts, streamlining processes and reducing transactional costs, while optimizing the new organizational structure and our team’s skills and tools.
As a result, the team created a structured process to receive the best contracts that has resulted in lower costs for the mine.
An example of these improvements included purchasing Flotation reagents that reduced costs by $1.40/oz with the development of a new formula that will reduce the volume of reagents needed for production by 30%.
“The Paracatu 950 project is an excellent example of corporate and regional teams coming together and using their expertise to achieve great results,” said Gilberto Azevedo, Vice-President and General Manager, Paracatu. “We are proud of the hard work from our team in Paracatu and look forward to finding more improvements and efficiencies to achieve our goals in years to come.”