Cost Down Program Development and Execution

Overview

Kimberley Mineral Sands engaged Iluminex to rapidly reset its contractor cost base as declining commodity prices and tightening credit conditions placed increasing pressure on the business.

lluminex embedded within the commercial team as an extension of the client's capability, leading commercial negotiations and coordinating outcomes across operations, executives, financiers and the external market.

Scope

• Developed and led an operation-wide commercial cost reduction program across mining services, fuel, electricity, shipping logistics and accommodation. 

• Restructured key supplier arrangements through market engagement, commercial negotiations and transition to more sustainable commercial models.

   

• Identified supplier overcharging and negotiated value recovery and revised commercial terms.

   

• Identified and supported asset ownership restructures to remove barriers to supplier transition and improve commercial flexibility.

   

• Supported executive decision-making and coordinated implementation across operations, financiers and external stakeholders.

Outcome

• Delivered approximately 30% cost reduction across key operating contracts through commercial restructuring and supplier optimisation.

• Successfully implemented new commercial arrangements supporting ongoing operations, record production and improved financial resilience throughout a challenging market.

  
  

“I would highly recommend engaging James and the Iluminex team. Iluminex played a critical role in resetting our commercial cost position. Their commercial judgement, market knowledge, depth of analysis and willingness to lead execution enabled us to deliver significant cost reductions while maintaining operational continuity.” - Hartono Widjaya, Head of Commercial, Kimberley Mineral Sands

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