New Gold Inc. is an intermediate gold mining company headquartered in Vancouver, Canada. It operates four producing mines: New Afton in Canada, Mesquite in the US, Peak Mines in Australia, and Cerro San Pedro in Mexico. Peak Mines in Australia has implemented new processes to optimize production and performance, turning strategy into action through team creativity and passion. The mine produces gold and copper, and is exploring producing lead and zinc to generate new revenue streams from additional ore bodies. Peak Mines has also refined its management culture and communication with help from consultancies to improve performance, employee engagement, and safety.
Global Mining Article - Maximising Assets at Peak Gold Mines
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2. 7 2 May 2015
NEW GOLD INC.
H
eadquartered in Vancouver,
Canada, New Gold Inc.
is an intermediate gold
mining company with a focus
on environment and social
responsibility. The company has
a growing portfolio consisting
of four producing assets — the
New Afton Mine in Canada, the
Mesquite Mine in the United
States, the Peak Mines in Australia
and the Cerro San Pedro Mine in
Mexico — and three development
projects in Canada and Chile.
Peak Gold Mines has inspired the
Canadian miner to do more with
less, which includes integrating
new systems to optimise overall
production and performance.
Under this formula, Peak Mines
has turned strategy into action
by harnessing the creativity
and passion of its team while
introducing business processes
Peak Gold Mine
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that are lean and continuously
improved. The Peak Mines in
Australia has been a shining
example of the success that
incurs from these processes being
put into place.
Maximising opportunities
Located in the Cobar Gold
Field of New South Wales, Peak
Mines is a medium-sized gold
and copper mining operation,
comprised of five commercially
active underground mines and
a copper-gold processing plant.
The mine produces gold dore
for sale at the Perth mint and
copper concentrate that is sold to
markets in Asia.
Although New Gold has
historically been focused on
copper and gold, there is potential
to maximize new opportunities
at Peak Mines, according to
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NEW GOLD INC.
managing director of Peak Mines,
Greg Bowkett.
“We have a couple ore bodies
with lead zinc that affect the
current concentrate and we
have to pay penalties because of
this. So one of the things we are
exploring is whether we could
potentially reconfigure the circuit
to produce a saleable lead or zinc
product to turn this from a cost to
a benefit.”
Though it is early in the evaluation
phase this could enable the mine
to access new parts of different ore
bodies, which aligns with its strategy
of maximising opportunities.
“Should this prove viable,
this would add to our current
operations and would give us the
opportunity to maximise the whole
asset instead of just the parts of
it we are currently focused on,”
Bowkett added.
Refining management and
culture
For Peak Mines, structured
communication has been
instrumental in changing the
company’s management style.
The mine has enlisted the help of
Quest Worldwide, a global change
management consultancy that
works with organisations to improve
their business performance. The
partnership focuses on three
fundamental areas: operational
excellence, strategy execution and
people management.
“Quest Worldwide is a
global change management
consultancy,” said CEO Mark
Pinchen. “We operate from
regional bases in Australia,
Europe and the United States. We
work with our clients to engage
their people in deploying their
strategies and realising significant,
sustainable improvements to
their organisations and cultures,
delivering real bottom-line impact.”
“Quest has been vital in getting
the different departments of our
mine to understand our processes
so we can achieve our goal. It’s
been monumental for the people
management aspect of our
business,” Bowkett said. “Quest
has helped to engage our people,
get them out of their comfort
zones and to start thinking at
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the business level. It boils down
to everyone understanding and
speaking the same language.”
According to Pinchen, this is
exactly what Quest does.
“We help their clients and their
people to think innovatively about
the business at the business level
and to then apply the disciplines
to realise the vision, goals and
plans that are formed. It takes
courage and commitment and
forces people outside of their
comfort zones, but also builds
new awareness and powerful
ownership of the solutions and
requirements. It’s a challenge to
involve people in this way but it
pays dividends.”
The partnership has aided
Peak Mines in creating a high-
performance culture that is
focused on improving customer
relations while continuously
driving improvements.
“We value integrity,
commitment, innovation,
employee development and
teamwork,” said Bowkett. “We
believe our business can be run
through these values and we’re
committed to implementing a
positive change.”
Quest works with project
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6. Make your processes
truly productive!
Quest
Worldwide
Quest is a global change management consultancy. Since 1988, operating from our
regional bases in Australia, Europe & the USA we have delivered success for our clients
around the world in all sectors.
We enable our clients to better
deploy their strategies. Our
approach provides a balanced
framework in which firms can put
their values to effect and engage
their people, mobilising teams at
all levels to deliver on their plans
and achieve the company’s goals.
Focusing strategy
We foster a performance
improvement culture throughout
the business by taking a whole
of business perspective. At the
same time we train and equip
client teams to really challenge
the productivity of their processes
and ultimately build a culture of
continuous improvement.
Driving improvement Engaging people
We work in partnership to
engage people at all levels in
client businesses, creating a
service oriented, high performing
culture that can make a strong
linkage between its values and
behaviours. We design and run
high-energy events to engage
creativity, knowledge and passion
in teams of all sizes.
Australia | New Zealand | Asia
+61 (2) 9904 8488
US | Canada | South America
+1 (845) 279 5707
UK | Europe | Africa | Middle East
+44 (0) 1483 427 031
Ready to work with you
7. NEW GOLD INC. M I N I N G
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leaders to implement a
coordinated approach to improve
project effectiveness with a two-
way communication style.
“Instead of our company only
being driven by the general
manager or CEO, we actually
want it to be integrated,” said
Bowkett. “We want our company
to be driven by the leadership side
and the workforce side so we can
produce the best product possible.
Another component to refining
the Peak Mines’ commitment to
employees and company culture
has been the assistance of the
Workplace Health and Safety
Committee (WHS), a safety group
comprised of key employees,
including a member from every
department in the organisation. It
has been crucial in strengthening
the company’s safety culture and
getting Peak Mines to look at the
bigger issues.
“WHS has helped change the
culture of our people to be more
proactive in recognising safety
issues,” said Bowkett. “The
committee really helps to align our
focus on the values, teamwork,
and development and training
of employees to ensure they
understand how we view safety
Established: 1988
Industry: Energy & Resources, Financial Services, Manufacturing, Logistics, Petrochemicals,
Health & Life Sciences, Retail & Leisure, Technology, Media & Telecommunications
Services: Business Transformation, Change Management, Human Capital, Leadership,
Programme/Project Management, Strategy Deployment, Operational Excellence, High Impact
Events & Culture Change
On-Going Projects: Business Improvement Exercises, Lean Manufacturing, Strategic Planning &
Deployment; Major Projects Deployment & Communication
Management:
Steve Smith - Chairman
Bret Shaw - Regional Director Asia Pacific
Michael Hill - Regional Director EMEA
John Guadagnino - Regional Director Americas
Website: www.quest-worldwide.com
SUPPLIER PROFILE
QUEST WORLDWIDE
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and what is needed to achieved it
as a team.”
Operational excellence
With a new approach, Peak Mines
has also been able to streamline
processes and optimise results.
The company’s newly adopted
management approach to
maintenance, which incorporates
the lean manufacturing model,
helped Peak Mines cut its
maintenance costs by USD $1.3
million in 2014.
“The improved management
approach is making a tremendous
difference in how we operate and
conduct business,” said Bowkett.
“The results speak for themselves.
The lean model has given us a goal
for our bottom line, which helps us
know exactly how many people
we need to run this operation
successfully, and profitably.”
Peak Mines has reduced its
maintenance cost on its loaders
from USD $120 per hour to $50
per hour. The company was
then able to increase its jumbo
uptime from 60 percent to 85
percent. In addition, Peak Mines
commissioned the help of Kepner-
Tregoe to assist with a wide range
of business improvements such
Peak Gold Mine Workers
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as increased operational efficiency and overall
equipment effectiveness.
“Kepner has helped us select the best
locations for equipment to give us maximum
capacity,” said Bowkett. “The company has
essentially given us more opportunities with
what we have.”
The next chapter
Along with additional exploration projects
lined up, New Gold will continue to evaluate
opportunities associated with the lead and
zinc or at Peak.
“Right now we’re focused on mining at the
rate that’s optimal for us, while continuing to
keep our employees safe,” Bowkett said. “Our
Penalty for Profit initiative is another aspect
we’re going to focus on moving forward.”
Company
Information
I N D U S T RY
Mining
H E A D Q U A R T E R S
Vancouver BC, Canada
F O U N D E D
1980
E M P L O Y E E S
1757
R E V E N U E
N/A
P R O D U C T S /
S E R V I C E S
New Gold is an intermediate gold
mining company. The company has a
portfolio of four producing assets and
three significant development projects.
The New Afton Mine in Canada, the
Mesquite Mine in the United States, the
Peak Mines in Australia and the Cerro
San Pedro Mine in Mexico, provide the
company with its current production
base. In addition, New Gold owns 100%
of the Rainy River and Blackwater
projects, both in Canada, as well as
30% of the El Morro project located in
Chile. New Gold’s objective is to be the
leading intermediate gold producer,
focused on the environment and social
responsibility.