Australian mining and civil construction firm BGC Contracting Pty Ltd has been announced as Australian Mining’s Contract Miner of the Year.
The award recognises BGC Contracting’s collaborative approach to improving efficiencies at Cliffs Natural Resources Koolyanobbing, resulting in savings of more than $100 million over three years.
BGC Contracting CEO Greg Heylen said that the initial aim of the project was to find a more sustainable way of working than the traditional cost-plus model.
“By working closely with our client, we designed a new collaborative contracting model which incentivised both parties to work smarter and reduce costs,” Mr Heylen said.
“Initially it involved the integration of our respective management and engineering teams, with the aim to improve safety, but broader opportunities for operational efficiencies very quickly became evident.
“This integrated team developed an ambitious program to sustainably cut $55 million from Cliff’s operating costs over three years, and by working closely together, efficiencies were found at every stage.
“For example, switching from FIFO to DIDO reduced travel costs by 60%, energy savings were realised with a move to solar-LED lighting, and truck and train-loading were maximised with lower transport costs.”
Mr Heylen said the saving of $100 million was nearly double the original target.
BGC Contracting had cut its own operating costs by nearly 40%, and Cliffs’ annual operating costs reduced, ensuring the project’s sustainability through the lowest iron-ore price cycle in more than a decade.
“In addition to cost savings, production improved by 6%, and most pleasingly, safety improved by a staggering 60%,” he said.
“It is important for contactors and their clients to work collaboratively in pursuit continual sustainable efficiency improvement.”