How mining organizations can capitalize on diversification opportunities
When is a mining company not just a mining company? Modern mining operations are no longer static operations with their equipment in the sand. Instead, they are pursuing new opportunities and embracing diversification strategies, becoming more than just miners. Some are taking diversification to a whole new level, including manufacturing, distribution, and sales of finished goods. Many opportunities lie within the green energy sector, as green technology is heavily reliant on certain metals and materials.
What are successful mining companies doing to create these new and sustainable value and revenue opportunities?
1. Integrating technologies to form an agile foundation
Recent research from Deloitte indicates that one of the foundational steps required before a mining company can embrace new avenues of opportunity is integrating internal operations. In our last post, we spoke to the importance of building an agile foundation in the form of an integrated mining business management solution to support diversified and expanded operations.
By doing so, miners create a cohesive business technology platform that streamlines workflows, delivers deep business insights, and helps diversify and expand operations.
2. Auditable financials to win investor trust
Mining companies hoping to position themselves to investors in an attractive light will need a robust back-office accounting application and auditable financials. Many mining companies start small, using an entry-level accounting application like QuickBooks. Companies with M&A on their minds should consider “starting smart” rather than starting small, investing early in a technology infrastructure capable of winning investors’ trust and scaling to support future growth.
3. Strategic budgeting and planning aligns priorities
Strategic budgeting and planning processes are essential for mining companies that seek to diversify their operations. They provide a platform for running ‘what if’ scenarios, viewing the reasoning behind the numbers, and involving the right people to gain broader insight and better collaboration. Corporate Performance Management (CPM) tools are designed to let companies control their budgeting, planning, and forecasting processes, delivering decision-grade information to all stakeholders. Mining companies with plans to diversify operations will find significant value in these tools.
4. Actionable insights inform decision making
For a mining company seeking to diversify and expand its reach, access to real-time information is critical. Mining operations generate a tremendous amount of data from the field and the office. But, if they are unable to combine and draw metrics from that data, they risk making business decisions that are not fully informed. Gaining comprehensive access to actionable data requires a powerful business intelligence (BI) reporting tool to uncover the gems and unlock the actionable insights within.
5. An engaged workforce leads the charge
Building a well-trained and agile workforce is essential to every mining company. It takes a proactive approach to human resources and labour compliance to build a safe, skilled, and engaged workforce capable of driving the organization forward. Human Capital Management (HCM) solutions provide the recruiting, training, management, and engagement tools modern mining companies need to create a workforce to support diversification and expansion efforts.
The mining industry is in the midst of a world of change. Successful mining companies can adapt to change by pivoting their business models, diversifying their revenue streams, and investing in the technologies that promote informed decision making and lean operations. Caron Business Solutions works with mining companies to help them leverage technology to best advantage. Learn more here.