Outsourcing in the mining industry: decision-making framework and critical success factors

摘要

Theoretically, the main driver behind a mining operations' sourdng dedsion should differ from company to company, and within a company from project to project, but in reality it often relates to cost. Research confirms that there are a number of factors, induding cost, to consider when choosing between in-house and outsourced mining. While the literature is rife with factors to consider, little information exists on how to apply these in practice and the relative importance of the different factors to be considered. A study was conducted to determine whether mining is truly a core competency for a mid-tier commodity spedahst mining company. Furthermore, a decision-making framework for mining operations sourdng was developed, and the critical success factors that should be adhered to if outsourced mining is chosen were determined.The research showed that owner mining is apt a core competency for the mining company investigated. A decision making framework was developed using the order winner/order qualifier structure, which can be used to facilitate the mining sourcing dedsion. The most important tools at the disposal of a mine owner's team to manage a contractor miner are the social and output control mechanisms, according to the critical success factors study.