Russian’s UMMC saves >$50 million in 2020 through transformation initiatives including increased mill loading at Nova Zinc in Kazakhstan

Russian mining and metals giant UMMC (UGMK) has summarised the results from its group wide transformation program for the year 2020. UMMC says it has reaped RUB 3.8 billion ($50.2 million) of economic benefits (with RUB3.2 billion planned) due to the collected efforts of all Holding’s enterprises. The program encompassed work at eight of its sites: zinc operations JSC Chelyabinsk Zinc Plant, JSC Sibir-Polymetals and Nova Zinc LLP; coal major JSC Kuzbassrazrezugol (Bachatsky, Kaltansky and Krasnobrodsky coal mining branches), electric cable producer Cable Alliance Holding Corp (JSC Elektrokabel Kolchuginsky Plant); copper smelter JSC Uralelektromed; and copper/zinc mines PJSC Gaisky GOK and JSC Uchalinsky GOK.

Over the course of the year, the teams at the plants developed and launched 114 initiatives across the technical, technological and organisational aspects of production. All were aimed at yielding a net profit or saving costs. The personnel engaged in developing and delivering the initiatives received incentive payments (5% of the amount of economic benefits secured). The size of the bonus fund at the end of 2020 consisted of RUB177.3 milllion, with over 10,000 bonuses were awarded to personnel.

The highest-return initiative of 2020 was launched at Nova Zinc LLP which operates the Akzhal zinc mine in Kazakhstan, where engineers from the Development Department alongside the plant’s beneficiation team successfully implemented an increase on the load of grinding mills. With the aid of a Short Interval Control tool the team identified and resolved issues that prevented a rise in ore processing output. The causes of disruptions to the objective were investigated daily and corrective measures were developed. This allowed for a rise in the average load on the mills from 58 to 66 t of ore per hour, which provided Nova Zinc with an annual return of RUB145.5 million. Underground mining has also been ramping up at the operation.