case Study Analysis - Supply Chain Management

1. CASE STUDY ANALYSIS
S U P P L Y C H A I N M A N A G E M E N T
P r e s e n t e d B y
A n g e l P a u l , D o n i y a K D a v i d
J o y a l G e o r g e , R e n y E l i a s

2. • Mount Isa Mines Limited is one of the world's great metal mines.
• It operates the Mount Isa copper, lead ,zinc and silver mines near
Mount Isa, Queensland, Australia.
• For a brief period in 1980, MIM was Australia’s largest company.
• Process copper refining technology, the Isamelt smelting
technology.
• Mount Isa contains two separate orebodies.
• Production levels change with world demand and prices, but in a
typical year 7 million tonnes of ore are mined to give 150,000 tonnes
of copper and lead (containing silver) and 200,000 tonnes of zinc.
INTRODUCTION

3. • The main operations are mining of copper and silver-lead-zinc ores.
• Operations are done in various locations at mount lsa, in Queensland, Australia.
• Serious transportation problems - produces large quantities of ore in a remote area of
Australia, main demand for finished metals is in the industrialised areas of the world
• The problem is to process the ores and move them to final markets as cheaply as possible.
• The production levels of Mount Isa changes with world demand and prices.
CASE SUMMARY

4. • The entire operations are carried out at the mine site.
• Two main logistics problems:
 First problem :moves huge quantities of materials
from the mine to world markets.
 Second problem: moves materials needed by the
mine, smelters and other operations into the remote
site.
• It also mines coal and gold.
CASE SUMMARY

5. • To move huge quantities of materials from the mine to world markets
• One is to move materials required by the mine, smelters and other operations into the
remote site.
• There should be some movements done within the company for the journey of copper.
• If these activities get interrupted, it will adversely affect the overall day to day operations
of the company.
1)How important do you think transport is for the
operations at Mount Isa?

6. • The mining industry faces logistics challenges such as moving copper, silver, iron or other mined
products from remote mining sites.
Transportation within the mining industry commonly involves managing shipping by rail.
Mount Isa Mines operates two separate mining and processing streams.
• The main transportation facilities used in mount Isa mines are train , shipping, and conveyor belts are
used for moving the ores
• The main reason why companies prefer multimodal is that it requires less time and effort.
• The benefits are time saving,cost efficiency, less worrying, easier communication and faster transit
options.
2)What alternatives are there for transport? What are the
current arrangements and how might they be improved?

7. • Market Volatility And Weak Global Demand-The market conditions will also affect the transportation
problems , regarded with the mining companies
• Resource Scarcity and Quality-There are fewer high-quality ore deposits left to develop.
• Manpower Shortage-The shortage of technically skilled labor – including project designers, mining
geologists and engineers, is one of the most pressing concerns in the mining industry.
• Resource Nationalism and Regulations-Resource nationalism refers to the policies and regulations
imposed by a country’s government to maximize the benefits gained from the natural resources of a
country – sometimes to the detriment of private companies.
3) Do other mining companies have similar transport
problems?

8. •Many movements within the mining site and
outside the company
•Right transportation medium, right supplier,
right quantity, and the right time of delivery
•Find the optimum routes, by removing
unwanted movements
•Reduce the transportation costs
Conclusion

9. Transporting Materials
from the Mine to the
World Markets

10. Mount Isa Mines,
Queensland, Australia
Transporting Materials
from the Mine to the
World Markets

11. Mount Isa Mines,
Queensland, Australia
Transporting Materials
from the Mine to the
World Markets

12. Mount Isa Mines,
Queensland, Australia
Transporting Materials
from the Mine to the
World Markets

13. Mount Isa Mines,
Queensland, Australia
Transporting Materials
from the Mine to the
World Markets

14. Mount Isa Mines,
Queensland, Australia DARWIN
PERTH
SYDNEY
TOWNSVILLE
AUSTRALIA
QUEENSLAND
Transporting Materials from
the Mine to Port in Townsville

15. Underground
Explosions
Ore Trains Carry it to
Underground Crushers
Ore Collected by Front-
End Loaders
Hoisted to the
Surface
Stored in
Crude Ore Bins
A Conveyor
Moves
Fine
Grinding
Floatation
Process
Smelters
Oxidise
Impure
Copper
Casting
Furnace
Journey of Copper within
the Company

16. Underground
Explosions
Ore Trains Carry it to
Underground Crushers
Ore Collected by Front-
End Loaders
Hoisted to the
Surface
Stored in
Crude Ore Bins
A Conveyor
Moves
Fine
Grinding
Floatation
Process
Smelters
Oxidise
Impure
Copper
Casting
Furnace
Journey of Copper within
the Company

17. THANK YOU