EY Insights_Unlocking operating model resilience

Unlocking operating model resilience in Mining

2026

Mining operating modelContents

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As operational complexity rises across the mining and metals sector, so too does the pressure to deliver productivity gains, contain costs and stabilise throughput. EY’s 2026 mining and metals risk analysis places these issues firmly at the top of the industry agenda. In this environment, reconfiguring the operating model has become one of the most practical levers miners can use to reduce unit costs, improve reliability and unlock sustained performance.

What we mean by the operating model

The operating model describes the way in which all the components of the enterprise interact with each other to deliver the value proposition, products, services and desired outcomes to customers and other stakeholders. It is the translation of strategy into practical execution across processes, technology, data, people, third parties, physical infrastructure and governance.

Why today’s operating models are under pressure

Mining and metals enterprises are experiencing significant increases in operating costs to produce quality products. The rising orebody variability, declining grades and increasing production complexity make reliable throughput harder to achieve and place pressure on the effectiveness of the operating model.

Technology upgrades and changes, including Artificial Intelligence disruption, are becoming more frequent and often require costly changes in architecture, integration, user interfaces and data management.

Skills shortages and tight labour markets remain a challenge. Beyond training, organisations need sequenced change, standardised operating rhythms and on‑the‑job coaching to build confidence at the frontline.

Siloed ways of working persist, with disconnects between the annual budget and forecast process in Finance, and operational realities on site. Limited integration between these functions as well as logistics, marketing and HR create inefficiencies, stock write‑offs and missed commercial opportunities.

All of these challenges result in a suboptimal operating model that delivers short of its value proposition to its employees, customers and other stakeholders.

What leading miners will focus on in 2026/7 to remain competitive

Mining organisations need changes that extend beyond production to remain competitive and profitable. This includes reducing costs in non‑core processes, increasing efficiency in support services, maximise benefits of technology, enabling integration and build future-fit capabilities. The next 12–18 months will see leading mining organisations prioritise the following shifts:

1. Redesign value chain integration:

Establish a single, integrated planning process from mine to market, with clear decision rights and scenario planning that links geology, maintenance, logistics and commercial teams.

2. Evolve GBS to GBS 2.0

Move beyond transaction processing to analytics‑enabled services such as workforce planning, integrated business planning support and supplier performance insights.

3. Modernise the technology backbone

Implement a common data platform, strengthen master data stewardship and adopt event‑driven integration between OT and IT to reduce latency and manual work.

4. Lift asset reliability and productivity

Introduce condition‑based maintenance, optimise critical spares and embed short‑interval control to stabilise throughput.

5. Institutionalise the operating rhythm

Adopt daily and weekly short‑interval reviews, tiered visual management and exception‑based escalation mechanisms that reinforce performance accountability.

6. Build critical capabilities

Invest in skills such as integrated planning, reliability engineering, data governance and change leadership, supported by academies and on‑the‑job coaching.

7. Embed risk and controls

Integrate risk sensing, safety‑critical controls and ESG reporting requirements into the operating model design rather than adding them retrospectively.

Humans at the centre: the critical success factor

A people‑centred approach to design and implement changes in the operating model helps organisations close the gap between intention and execution.

Technology can support decision‑making, but it cannot define roles, hand‑offs, ownership or behaviours. People can participate in new operating routines, but different outcomes are only achieved when they are comfortable to make decisions and take responsibility to act.

Throughout any major operating model change, it is the behaviour of the people affected by the change that will determine the degree of success and sustainable improvements.

“Performance improves only when people understand how the operating model works, their role in it and how their decisions contribute to outcomes.”

In summary

The mining and metals industry is experiencing challenges externally and internally that drives up costs and complexity, resulting in a need to change operating models for competitive advantage or even survival. It is not an option to “do nothing”.

Miners that can integrate planning across the value chain and focus on people-centred execution are more likely to reduce variability, improve decision-making and sustain performance improvements. While technology and analytics enable certain shifts, integration, accountability and culture determine whether improvements persist.

With the Africa Mining Indaba approaching, these themes are already shaping the conversations we’re having across the sector.