Skip to content

Why 25% of Your Mine's Gold Output May Be Going Unrealised

20 March 2026

After completing more productivity improvement initiatives in the mining industry than any other consulting firm, we've learned something that surprises most mining executives: the gap between current performance and potential performance is almost always larger than they think.

In a recent engagement at a Tanzanian open-pit gold mine, our Business Review identified improvement potential worth 25% of current gold output. Not 5%. Not 10%. Twenty-five percent.

This wasn't a poorly run operation. It had competent management, modern equipment, and a reasonable safety record. But it had the same productivity leaks we see in mining operations worldwide.

Where the Hidden Productivity Sits

Equipment utilisation is the most common culprit. In our benchmarking database — built from 700+ assignments across 30+ countries — we consistently find 15-25% improvement potential in how mining equipment is used. Not because the equipment is wrong, but because the management systems around it are inadequate.

Shift handovers are often the single biggest productivity leak. When the outgoing shift doesn't communicate effectively to the incoming shift, the first 30-60 minutes of every shift are lost to re-orientation. Multiply that by three shifts, seven days a week, and you have thousands of hours of lost production annually.

Maintenance planning is another consistent gap. Reactive maintenance — fixing things when they break — costs 3-5x more than planned maintenance. More importantly, every hour of unplanned downtime on a critical piece of equipment cascades through the entire operation.

The supervisory gap is often the root cause. When frontline supervisors spend their day firefighting instead of planning, the entire operation runs in reactive mode. Building supervisory capability — giving supervisors the tools, training, and expectations to manage proactively — is typically the highest-ROI intervention in any mining improvement program.

How We Unlocked 25% in Tanzania

Our approach combined three interventions: installing a structured Management Operating System (iMOS) for daily performance management, rebuilding supervisory capability through targeted training, and embedding new behaviours through coaching and accountability.

The 25% improvement didn't come from one big change. It came from hundreds of small improvements — each one addressing a specific barrier — that compounded into a step-change in performance. And because we addressed the underlying barriers (not just the symptoms), the improvements sustained after we left.

What's your mine's hidden potential? A Business Review will tell you — with specific, quantified opportunities and a clear roadmap to capture them.