Establishing A New Metric For Mineral Resource Management

Mineral resource management (MRM) practice has developed in South Africa over the course of the last ten years, with the purpose of integrating previously isolated technical functions into a value chain aligned, process organization, responsible for mine planning and optimization. The implementation of MRM within various companies has met with varying degrees of success, often resulting in incremental improvements in the planning process and, conversely, often becoming the scapegoat for poor delivery on plans and projects. The reason for this has been, amongst others, a lack of a suitable metric to define the success rate of MRM in the business at hand, in terms of its contribution to the bottom line. This paper is the result of extensive research by the author into this subject, which has resulted in the conclusion that economic value added is an appropriate measure that will lead to real optimization and value creation in mining companies, if applied within a new, holistic model