19 FINANCEOUTLOOKINDIADECEMBER, 2025What framework do you use to benchmark operational performance across globally dispersed mines?In global mining, no two operations are truly alike. A zinc mine in India, a copper mine in South America and a thermal coal mine in Africa­ each operate within very different environmental, geological, regulatory and cultural contexts. Yet a consistent performance framework is essential for driving operational excellence across such diverse assets.One of the most universal frameworks is cost curve positioning allowing miners to clearly identify which mines consistently stay in the first quartile and which ones demand structural intervention.The second pillar is productivity benchmarking metrics such as tonnes mines per employee, equipment utilization, drilling and blasting productivity & mill throughput provide a clear view of operational efficiency relative to peers.A more advanced layer is resource model and recovery benchmarking which includes Grade control, metallurgical recovery, and dilution levels highlighting the quality of orebody understanding, planning and mining discipline.Energy and water intensity benchmarking are becoming increasingly important with the rising cost of inputs, sustainability expectations and long-term investment decisions. Companies now track kWh per tonne, water recycled vs consumed and carbon intensity for every asset.Then comes operational maturity assessments, which look beyond numbers. These include maintenance culture (predictive vs scheduled), adoption of digital tool, safety practices and decision-making discipline.Across global companies, benchmarking functions as a navigation system. It aligns expectations, exposes inefficiencies, and most importantly- gives each miner a clear pathway to compete not just within the company, but with the world's best. It becomes the engine of continuous improvement across the portfolio.How do you balance the financial burden of ESG compliance with overall-cost optimization targets?A decade ago, ESG was preliminarily a compliance exercise. Today, it has become an inseparable part of how one should think about cost, risk and long-term competitiveness. Balancing ESG demand with cost- optimization goals begins with acknowledging one truth: ESG and cost optimization are not opposites; they are long-term complements ­ a strategic lever for cost stability and risk mitigation. A mine that is environmentally compliant, socially trusted, and governed transparently is a mine less likely to face shutdowns, labour unrest, lawsuits, or capital-access challenges.Energy is a classic example. Mining is one of the most energy-intensive industries, and volatility in diesel prices, grid electricity, and carbon pricing can disrupt cost structures overnight. As a result, even though renewable energy and electrification require initial investment, but companies see them as long term hedges against inflation and helps them create more better ventilation specially in underground mines thereby increasing productivity.Water management and tailing safety follow similar logic. Modern tailings technology, water recycling circuits, zero liquid discharge facilities, dry stacking, and dam monitoring systems are expensive upfront- but far cheaper than the cost of failures, reputational damage, or regulatory shutdowns.Mining companies also embed ESG into operational optimization. Innovations in fuel efficiency, predictive maintenance, digital safety systems, deployment of solar powered vehicle for logistics and employee transportation and responsible sourcing often reduce costs while improving compliance.Global miners now evaluate ESG projects using scenario analysis, carbon price sensitivity, avoided cost modelling. ESG targets are now tied to KPIs, incentive structures, and long-term organisational planning. ESG is no longer parked under "compliance" ­ it is evaluated as a business asset. Balancing ESG with cost isn't a trade-off anymore; it's a strategy.What financial modelling techniques do you rely on to evaluate cost-optimization scenarios across various mining assets?Financial modelling is not about picking the cheapest option- it's about choosing the scenario that builds long term resilience and value, even under volatile market conditions. Numbers alone don't guide the strategy-it's the story behind the numbers that shapes conclusions. Each mine has its own geological personality, cost profile, and expansion trajectory. So, the financial modelling must reflect these complexities rather than reduce them to flat spreadsheets.The core universally applied tool is discounted cash flow (DCF) modelling at the asset level. Modern miners take this further by embedding detailed assumptions around grade variability, ore-body life, labour inflation and regulatory exposure. Projects are judges on multi-scenario models- base, optimistic, stressed.
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