Cost Optimization


It is an exclusive service to manage raw materials, better. The objective of this service is to:

  • Effect a reduction in the costs of material delivered to the plant for further processing.
  • Homogenizing the quality of material delivered.
  • Streamlining mining operations.
  • Enhancing the longevity of mineral resources.

Coverage/ Methodology:

  • Data Collection: For raw material requirements, operating parameters and performance parameters.
  • Data Analysis: Delivered costs of raw materials, including stores & spares, consumables, repairs & maintenance, power, fuel, salaries & wages, CAPEX ownership (depreciation & interest), working capital, insurance, royalties & other duties, overheads etc.
  • Identification of Cost Heads: Activities such as drilling, blasting, excavation, transport, reject handling, re-handling, mines development, environmental management, quality control, etc.
  • Developing the Activity-Cost Head Matrix & Identification of Cost Influencers: Development of a matrix for relevant cost elements under different cost heads associated with each mining sub activity. Identification of parameters influencing costs, as relevant to each sub activity.
  • Benchmarking: Comparison of performance parameters, sub-activity wise costs and total costs against benchmarks available with Holtec, as relevant to the particular environment.
  • Strategic Action Planning: Strategic options.
  • Identify options available for effecting improvements in
    • Costs by modifying influencers and improving performance parameters.
    • Quality by aligning quarry scheduling to optimal raw mix design.
    • Operations by alleviating constraints and improving resource efficiencies/ utilization.
    • Resource longevity through planned mining and mine development.
  • Perform cost-benefit analysis to select the best option(s): Action planning.
  • Develop Action Plans for facilitating the implementation of the strategy mix chosen highlighting:
    • Strategy description.
    • Timing for implementation.
    • Implementation costs including CAPEX.
    • Expected benefits.
    • Activities involved in execution (including responsibilities and time-frames).


It helps in:

  • Extending deposit life.
  • Saving costs.
  • Enhancing equipment utilization.
  • Reducing variability in ROM quality.
  • Rationalizing manpower strength.