2009 Case Study: Our People Rally to Conserve Cash

During 2009, our people were absolutely committed to helping the business through the impacts of the economic downturn.  Teams rallied together to conserve cash wherever practical. The WA Mining Group proved it was a force to be reckoned with when it came to cost saving initiatives.

In 2010 through to 2012, Alcoa will be building new haul roads at the Mines to enable access to bauxite in the O’Neil region.  The bauxite in this region is sporadic in comparison to the conditions found in the current McCoy region - and of course this means that a greater number of haul roads are required.

The increasing need to reduce expenditure, to ensure Alcoa remains a sustainable business for the long-term, presented challenges for the Mine Planning and Production Departments in relation to the new haul roads.  Alcoa engaged Road Design and Civil Engineers in 2009 to review the existing haul road plans and research an alternative scheme with a view to reducing, re-routing or eliminating some of the roads.

Thanks to this research, the 2010 haul road build can be decreased from 57,460 metres to 40,560 metres, saving 16,900 metres. This reduces costs for Alcoa, and helps the environment because our road trucks will not have to drive the same distance and will therefore use less fuel than initially expected.

The 2011 haul road build season may also be compacted to 39,000 metres from 44,450 – a further reduction of 5,450.   The total reduction throughout 2010-2011 will be around 22,350 metres, which roughly equates to a saving of $11.1 million.