Mining operational excellence: From basics to breakthroughs

For mining companies trying to maximise stakeholder returns while delivering the material the world needs, the fundamentals of realising the full potential of their ore bodies and assets haven’t changed.

Breakthrough technologies such as automation and generative AI present exciting opportunities and have become urgent topics in boardrooms. Yet the greatest operational value still comes from improving the way people work, honing site-level strategy, and enacting targeted changes to maximise existing assets. By improving on fundamentals, global mining companies regularly see 15% – 30% gains in production and efficiency, along with safety and sustainability benefits.

Mining leaders know what delivers operational excellence. Bain asked executives from some of the industry’s largest and most respected companies – representing about US$300 billion in market value – to rank the factors most critical to site-based improvement programmes. Three tried-and-true ingredients rose to the top: organisation-wide buy-in, a strong understanding of what delivers value, and stable, capable leadership. Most also cited sufficient resourcing, effective management processes, and a focus on the short list of highest-value initiatives.

Interestingly, technology ranked last. Executives recognise that it can enable improvements, but it's no silver bullet – its applications must align with operational strategy.

If leaders understand what is required, why do many site-level improvement efforts fail? Recent leadership changes have caused disruptions. Without buy-in, disciplined working routines, or clear priorities, operational change becomes hard to sustain. Some operators also spread their efforts too thin or focus on the wrong things.

Unlocking the full potential of mining operations is becoming even more important as the sector ramps up capital expenditures amid the global energy transition. Bain research has found that companies across industries with top-performing operational organisations deliver more than triple the profitable growth and total shareholder returns of peers. As competition intensifies, those that get operations right can significantly outperform the market.

Leading companies focus on three objectives: stabilising the core operating model, optimising operations, and sustaining results.

Stabilise the core operating model

A stable foundation at both corporate and site levels is critical. Misalignment is common – strong sites hamstrung by ineffective corporate models or good central models applied inconsistently.

The best operators define clear roles and decision rights, ensure business functions support frontline operations, and invest in top talent. At sites, they design efficient structures, run field-focused management routines, and use visible metrics to foster accountability. Above all, they focus on frontline behaviours, where strategy is realised.

Optimise operations

Strong operational excellence systems improve short-term cash flow and long-term value. Leading miners use methodical, frontline-led improvement efforts supported by experts and technology. By defining the asset’s full potential and identifying constraints’ underlying causes, they solve for the few priorities that maximise value.

Breakthrough tools like AI and analytics play a role only when targeted at true bottlenecks. Digital tools deployed without clear implementation paths rarely deliver.

Sustain results

Improving operations isn’t about one-off efforts; it’s about solving the right problems in the right order – and making it stick. Top miners treat continuous improvement as an ongoing capability. They use nimble delivery models built for rapid decision making, with permanent routines for tracking results and mitigating risks.

Strong senior leadership is essential. Without a respected, knowledgeable leader – often reporting to the general manager – improvement teams lose focus on what creates value. Because mines are constantly changing, the best operators regularly refresh priorities so teams, processes, and goals stay sharp.

Creating real value

A global miner that applied these principles established a single continuous improvement program driven by site teams. Every level of the organisation could articulate its top priorities and the value at stake. Over a period of more than seven years, the company delivered total shareholder returns more than four times greater than its closest peer and relevant commodity index.

By combining strong fundamentals with targeted innovations, mining companies can face tomorrow’s challenges head-on and achieve bold breakthroughs.

Read the article online at: https://www.globalminingreview.com/mining/22102025/mining-operational-excellence-from-basics-to-breakthroughs/