Journal of the Southern African Institute of Mining and Metallurgy
On-line version ISSN 2411-9717
The long-term plan (LTP) in a mineral resource company is defined by the quality of the mineral resource and represents the result of a series of trade-offs to fulfil internal organizational as well as external business and legislative requirements, ensuring ultimate delivery on the defined organizational strategy. The LTP should as a whole align to a coherent and well-defined organizational strategy, working towards a clearly defined objective while still allowing a tactical response to short-term requirements of the organization. The ability to respond tactically to changes in environment, like the unprecedented five-month strike in 2014 on the platinum belt following the 2012 Marikana incident, is a measure of the flexibility of the plan given the agreed strategy. This paper describes the Lonmin process of linking company strategy with long-term planning, tactical planning, and the execution of the plan through an annual planning cycle to maximize organizational flexibility. This flexibility enables mining companies to respond to the many internal and external forces that impact on both strategy formulation and delivery of results that meet shareholder expectations.
Keywords : planning cycle; long-term plan; organizational strategy.