South African Business 2024

FOCUS
Mind the Gap
The uncertainty gap between organisational objectives and operational
targets can be reduced, according to leading African-based specialist mining
service provider, Ukwazi.
When examining the general downward
trend of commodity prices over recent
years, uranium yellowcake has been
a notable exception, with a recent
upward trend. Gold has remained relatively stable,
but platinum group metals (PGMs) and copper have
seen a substantial decline from the highs achieved in
early 2021. Bulks such as manganese ore, bauxite and
specifically coal, are materially down from the peaks
reached late in the Covid-19 pandemic, while chrome
has not regained its pre-2017 commodity-crisis levels.
Many operations, particularly across Southern Africa,
are currently facing significant challenges. These stem
from Transnet’s logistical obstacles, amplified post-
Covid-19 production cost escalation and declining
commodity prices. Mines are now prioritising cost
control and aligning production with sales projections,
placing the onus on production teams to meet
strategic goals amid market pressures.
Bridging the gap
Whenever you travel on the London subway there
are signs that warn you, “Mind the Gap”. In recent
years, the disparity between strategic mining
plans and the practical, implementable mining
plans accessible to mining operational teams has
grown considerably. This gap subsequently fosters
widespread uncertainty within the execution
environment, ie, what must be done and the “how”
of what must be done practically. In the same vein,
while most mining organisations do adhere to welldefined
planning horizons and put notable effort
in producing these plans – in a sequential manner
and at specific intervals, they often lack practical
guidance. At Ukwazi, we strongly believe that
when a plan serves as basis for evaluating a mine’s
performance or the performance of its operational
team, it should be tailored for those specific
purposes; aligning with the business’ strategic
objectives while also providing clear, instructional
and practical guidance. Simply put, it must extend
beyond providing spatial guidance alone.
Closing the gap
As you increase uncertainty by imposing top-down
strategic models for operational control, frustrations
will mount and needless stress will burden an already
demanding production environment, making it
progressively difficult to retain outstanding operational
and mining management teams.
As such, the uncertainty gap between
organisational objectives and operational targets needs
to be reduced by developing pragmatic and cohesive
mining budget plans that are audience-driven and
outline sufficient practical requirements. It should be all
about creating certainty. The result? A production team
well positioned to perform in line with their respective
performance indicators and organisational incentives.
So, how do we effectively close the gap? Well,
ultimately mining engineering and mine planning
constitute pivotal technical and organisational
disciplines. The effective implementation of the
budget-mine-planning horizon requires active
engagement from the intended audience, the
operational team in this case, and a technical team
that has insight into the strategic objectives of
the mine and an in-depth understanding of the
sequential nature of mine deployment. Further to
this, the operational teams should receive outputs
that equip them with the practical tools needed to
adequately meet their requirements. At the end of the
day, cultivating this collaborative approach should be
a standard practice in every mining organisation. ■
www.ukwazi.com
SOUTH AFRICAN BUSINESS 2024
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PHOTO: Dominik Vanyi on Unsplash