1、Responding to COVID-19 Navigating the impact on the miningandmetalsindustries June 2020 NOWNEXTCOVID-19: What to do Now, What to do Next COVID-19 has turned into a global crisis, evolving at unprecedented speed and scale. It is creating a universal imperative for governments and businesses to take i

2、mmediate action to protect their people. No industry is immune, and all are grappling with varying degrees of severity and complexity. The financial ramifications are significant. Market capitalization for the biggest 2,000 companies worldwide has declined by 24 percent since the beginning of the ou

3、tbreak, losing more than $12.4 trillion.1 This document provides mining and metals leaders with a perspective on the evolving situation and implications for their businesses. Were all in this together 2Responding to COVID-19: Navigating the impact on the mining and metals industries For mining and m

4、etals companies, COVID-19 is disrupting the entire value chain. In order to protect their people organizations implanted a range of measures from travel bans, access restrictions (offices, mine sites and manufacturing facilities) reacting to the disruption cause by the impact of COVID-19 and migrati

5、ng to the New Normal on how workplaces operate and how people function. The length and severity of the impact is still not entirely known. Leaders are preparing for medium to long term strategies while also developing new capabilities and ways of working that will seamlessly enable longer-term chang

6、es to how they operate. Copyright 2020 Accenture. All rights reserved. Demand,Demand,s supplyupplyand and confidenceconfidence Metals and mining indices are showing the same trend as during the global financial crisis. Current market conditions correlate more closely to the global financial crisis t

7、han any of the previous epidemics (Ebola, H1N1 and MERS). The industry as a wholeincluding gold minersis seeing strong devaluation of their stocks. Early indicators for commodities pricing and demand projections are exacerbating the situation. COVID-19 has quickly turned into an epidemic of massive

8、proportions. The economy is facing demand, supply and confidence effects. How long will it last? That depends on the severity of the outbreak and the public health measures undertaken to contain it. S MERS = May 20, 2015; Ebola = Apr 10, 2014; H1N1 = Apr 17, 2009; Global Financial Crisis = Sep 15, 2

9、008. Metals engage suppliers, unions, communities and others. Prepare to return to normal, but plan for disruptions and delays. Challenge your workforce to identify opportunities to reduce operational impacts. Monitoring DataasofMar10, 2020. Copyright 2020 Accenture. All rights reserved. Secure Secu

10、re OperationalOperationalContinuityContinuity For the short term, companies may need to operate their assets at a suboptimal point, leading to lower OEE, reduced service levels and so forth. But beyond that, they should consider rebalancing production. On a tactical level, that means operating at a

11、predictable production output capacity to match reforecasted demand, and to avoid WIP inventory stockpiling and rehandling costs. Barrick Gold recently recognized such issues, announcing it will limit all non-essential projects in response to the pandemic. The company has also identified alternative

12、 suppliers and shipping routes and put contingency plans into place for other parts of its operations.4 On a strategic level, rebalancing production means reviewing your footprint and assessing the flexibility of your workforce, the depth and capacity of your suppliers and broadening your customer b

13、ase to diversify demand. Altogether, we should consider this crisis as a wake-up call and recognize that the way we have operated up to this point may not be the way we operate in the near future. 1.When do we scale operations and what demand levels do we scale to? What are the 6-, 12- and 24-month

14、expected norms? Which enabling projects need to continue? 2.Can we redistribute production to plants in geographies that are no longer significantly affected by COVID-19? 12Responding to COVID-19: Navigating the impact on the mining and metals industries Key actions Key strategic questions Reassess

15、your production capabilities and resiliency to minimize future disruption. Consider all operational activities holisticallyboth direct production and enabling site projects. Secure access to critical supplies, and form strategic alliances with and across suppliers. Copyright 2020 Accenture. All righ

16、ts reserved. UncoverUncoverOpportunitiesOpportunities As companies rethink operations and rebalance production capacity,they shouldbealerttoopportunitieswherenecessity opensthedoorforstrategic improvementsthatcansupportfuture growth. For example, a plant shutdown could provide a window for asset upg

17、rades and modernization. Remote training or applied technologies could be used to upskill an idled workforce that is staying home. And in a changing landscape, it might make sense to integrate a key supplier into your operations, or a competitor might be a target for acquisitionor for a strategic pa

18、rtnership. Key actions 1.How do you best take advantage of external expertise and scale efficiencies to deriskoperational exposure? 2.How can we make the best use of our highly skilled and geographically dispersed workforce? 3.Which competitors or suppliers have become good candidates for partnershi

19、ps and M Ebola = Apr 2014; H1N1 = Apr 2009; Global Financial Crisis = Sep 2008 Msecuretier-one suppliers;determine wheretostoreyourinventory. 1 Protectyourproductioncapacity Adjust capacity and geographic sourcing in response to evolving conditions; treat operations as a global “total system” ofprod

20、uctioncapacity;diversify productionoutputcapabilities;determinehowto leverageglobaloperationstorespondtoglobal customerrequirements. 2 Pursue automationasa strategicopportunity Automate facilities and embrace virtual remote operating centers; use virtual reality to reduce dependence on the physical

21、workplace. 3 Increase organizational effectiveness Explore new business and intelligent operating models such as the flexible workforce,shared service capabilities, matrixstructuresandthevalues-based organization, ratherthanthetypicalsiloed“all built here” organization. 4 Copyright 2020 Accenture. A

22、ll rights reserved. 1.Accenture analysis of 2020 Capital IQ data as of March 14, 2020. 2.”BHPmovestoeasesupplierpaininCOVID-19crunch,”IndustryQueensland,March19, 2020. 3. LundinMining,March15,2020. 4. ”Barrickcurtailsnon-essentialprojectsinresponsetoCOVID-19 pandemic,”S&PGlobal MarketIntelligence,Ma

23、rch20,2020. 17 References Copyright 2020 Accenture. All rights reserved.Responding to COVID-19: Navigating the impact on the mining and metals industries David Burns Managing Director Accenture Global Natural Resources Lead Timothy Van Audenaerde Managing Director Accenture Global Metals Lead Amy Ca

24、llahan Managing Director Accenture North America Natural Resources Lead C Contacontact Ust Us Special thank you to Kathryn Jacobs, JasonMalcolm,MikePlacerand Manish Sharma for their support in developingthisperspective. TolearnmoreabouttheAccentureNaturalResourcesindustrygroup, AccentureMining Accen

25、ture Natural Resources 18Responding to COVID-19: Navigating the impact on the mining and metals industriesCopyright 2020 Accenture. All rights reserved. 19Responding to COVID-19: Navigating the impact on the mining and metals industries To help our clients navigate both the human and business impact

26、 of COVID-19, weve created a hub of all of our latest thinking on a variety of topics. Each topic highlights specific actions which can be taken now, and what to consider next as industries move towards a new normal. From leadership essentials to ensuring productivity for your employees and customer

27、 service groups to building supply chain resilience and much more, our hub will be constantly updated. Check back regularly for more insights. VISIT OUR HUB HERE DISCLAIMER: This document is intended for general informational purposes only and does not take into account the readers specific circumst

28、ances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture do

29、es not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. Copyright 2020 Accenture All rights reserved. Accenture, its logo, and New Applied Now are trademarks of Accenture. AboutAccenture A

30、ccenture is a leading global professional services company, providing a broad range of services in strategy and consulting, interactive, technology and operations, with digital capabilities across all of these services. We combine unmatched experience and specialized capabilities across more than 40

31、 industries powered by the worlds largest network of Advanced Technology and Intelligent Operations centers. With 513,000 people serving clients in more than 120 countries, Accenture brings continuous innovation to help clients improve their performance and create lasting value across their enterprises. Visit us at