Mining & Infrastructure - Advisory, Delivery, Recovery

Guiding Owner-vs-Contractor Strategy Through Execution Intelligence: A Group-Level Optimisation Journey

How TacminMadini’s Digital Construction Management system helped a tier-one miner compare, optimise, and align execution across four open-pit mines.

The Group-Level Challenge: Mine Optimisation Across Contractor-Run Operations

A tier-one mining company set out to enhance performance and cost-efficiency across four open-pit mines — all operating under contract mining arrangements. While contract mining offered flexibility, the group needed independent insight into whether the model continued to deliver optimal value across varied site conditions and lifecycle stages.

 

Rather than rely on site-level reporting or internal assumptions, the company commissioned a structured optimisation study to assess delivery models and inform future strategy. The goal: determine whether maintaining contractor operations, reconfiguring contractor inputs, or transitioning to owner mining could yield better long-term outcomes.

 

TacminMadini was engaged for this work due to its independence, technical credibility, and extensive project delivery experience. Free from internal bias, we provided a neutral lens through which to benchmark performance — combining operational insight with commercial realism.

 

At the core of the engagement was our Digital Construction Management (DCM) system — a structured, field-proven platform enabling detailed project control, scenario modelling, and cost-performance benchmarking.

Creating Comparable Models Under Complex Conditions

To support meaningful comparison across the four contractor-run mines, TacminMadini applied a single DCM-based modelling platform across all sites. The strength of DCM lies in its ability to maintain a consistent, structured model framework — enabling different mining methods, such as contractor and owner operations, to be evaluated side-by-side using the same cost logic, scheduling structure, and performance metrics. This ensured that all scenarios were assessed on equal terms, with full transparency and comparability regardless of site-specific conditions or delivery approach.

 

All assessments were aligned to the group’s Life-of-Mine (LOM) schedules, ensuring consistency in production targets and timing.

 

For each site, three scenarios were developed:

  • The current contractor model, using actual fleet and site performance
  • An optimised contractor model, reflecting the ideal equipment mix for improved efficiency
  • An owner-mining model, built from first principles and supported by formal OEM equipment pricing, including direct acquisition from the incumbent contractor where applicable

 

All models were structured using the company’s internal accounting codes, enabling direct integration into whole-of-mine financial models for enterprise-level assessment.

 

The DCM Advantage: Trusted Globally, Refined by TacminMadini

The Digital Construction Management (DCM) system applied in this assignment is underpinned by a globally proven platform used by thousands of contractors across industries. What makes it unique in the TacminMadini context is how we’ve adapted and embedded it specifically for mining.

 

Our proprietary database, execution logic, and trade-off methodologies — developed and refined over decades — form a critical part of our intellectual property. This depth of mining-specific application enables us to deploy DCM not just as a tracking tool, but as a strategic decision-making framework.

 

Key strengths include:

  • Integrated estimation, planning, and performance tracking
  • Robust “what-if” analysis with error-free calculations
  • Seamless integration with Excel, mine planning tools, and OEM inputs
  • Full traceability between cost, performance, and schedule outcomes

 

In this assignment, DCM became the backbone of an evidence-based process — aligning technical, commercial, and executive stakeholders around a shared, reliable view of each operation’s true performance potential.

 

The Findings: Data-Driven Clarity That Informed Strategic Direction

With all scenarios modelled and reviewed through the DCM platform, the client gained a clear view of how each contractor-operated site was performing — and where improvements or strategic changes were warranted.

 

Although the same contract mining model was applied across all four sites, outcomes varied. DCM revealed site-specific insights that traditional reporting could not surface:

 

Mine A: Met production targets but incurred high variation costs and fleet inefficiencies. The optimised model showed potential savings through reconfigured equipment use and improved variation management.

Mine B: Delivered well on schedule, but planning and procurement gaps impacted cost efficiency. The contractor model remained suitable, with enhancements recommended in contract scope and operational coordination.

Mine C: Demonstrated strong performance across all metrics. The site validated the contractor model and set the benchmark for group-wide expectations.

Mine D: Persistently underperformed. The owner-mining model — supported by direct equipment acquisition from the incumbent contractor — proved more viable, offering improved control and lower cost over the LOM.

 

This structured analysis enabled the client to make targeted, evidence-based decisions — retaining, adjusting, or transitioning delivery models based on measurable performance, rather than preference or assumption.

 

Conclusion and Strategic Implications

This assignment demonstrated that mine optimisation isn’t about choosing between contractor or owner models — it’s about having the structure and insight to assess both objectively. By applying TacminMadini’s DCM system across four sites, the client moved from assumption to evidence — enabling site-specific, data-backed decisions.

 

Where contractor models were retained, they were strengthened. Where owner mining showed value, it was supported by clear commercial logic. And where improvement was needed, the evidence pointed the way. DCM proved to be far more than a tracking system — it served as a strategic enabler, aligning engineering, finance, and operational teams around a common understanding of risk, value, and opportunity.

 

For mining organisations navigating complex delivery environments, this approach offers a replicable framework:
Independent expertise. Integrated control. Actionable insight.