Goldcorp are a vertically integrated gold and precious metals organisation based in Russia.
management
Description
Assignment 1
Learning Outcome 1 & 5
This
case study will require you to research gold manufacturing techniques.
Goldcorp
investigates New Zealand Otago Site
Goldcorp are a vertically integrated gold and
precious metals organisation based in Russia.
The company takes gold ore from large open cast mines in virtually
unpopulated areas of Siberia and produces gold ingots in various product sizes
for the wholesale market. The Wohlwill
process is used as the primary gold
extraction method.
A recent prospecting of land in the Otago
region (just outside Ben Lomond Scenic Reserve, Queenstown) in New Zealand has
highlighted an opportunity for a joint partnership with the New Zealand
Government. This is considered an
exciting opportunity for Goldcorp as New Zealand is has not used the Wohlwill
process and this is seen as a key competitive advantage.
Goldcorp also has a fledging relationship with
New Zealand Gold Merchants (NZGM), a wholesaler of gold and precious metal
products. This company has a long
standing, well established and respected with the domestic market based on
honesty, reliability and responsibility.
Goldcorp intends to use this relationship for wholesale and retail sales
both domestically and internationally.
|
Learning Outcome 1: Understand the primary role and functions
of operations management within the organizational and external environment. |
39 Marks Total |
1. Describe
using a diagram the inputs, transformational processes and outputs of gold
mining that Goldcorp would use?
6 Marks
2. Define who the internal and external customers
are in the process.
3 Marks
3. Describe the core process considerations must
Goldcorp take into account?
4 Marks
4. Outline at least two support functions that
will have special significance during the establishment of manufacturing in
Otago and why?
4 Marks
5. Show in a diagram, in general terms the supply
chain for Goldcorp. Include in your
diagram, examples of roles, departments or organisations listed in each part of
the supply chain.
7 Marks
In order for the mine to be successful, two
key considerations must be taken into account.
- The mine must be able to extract a minimum of
1-5mg/kg of gold to gold ore and
- The processing equipment must be able to extract
gold at least as fast as at the Siberian site.
After successfully being granted permits for
initial exploratory work, Goldcorp recovered 145g of gold from 32 ton of gold
ore. The current recovery rate through
chemical extraction at their Siberian mine is 12 kilograms per 24 hour
day. It is projected that the Otago site
will take 21 hours to produce the equivalent amount of gold.
6. Apply calculations to determine if the
extraction amount make the expedition viable?
Please show your calculations.
3 Marks
7. What is the productivity of the Otago mine
compared to the Siberian mine as a percentage?
Which mine is the most productive?
3 Marks
Goldcorp
Corporate Strategy
Goldcorp has decided to commence due diligence
process in setting up operations in New Zealand. Goldcorp business development team have
determined via environmental scanning that this country has a very stable economic
and political climate which makes investment in the long term attractive.
Goldcorp’s domestic wholesaler NZGM has agreed
in principle to initial orders of 5 ton of gold products per annum provided
Goldcorp’s operations meet local and its company’s principles and values. Goldcorp wishes to retain high standards of
competitive capabilities.
8. Outline three challenges do you foresee
Goldcorp will face setting up in New Zealand?
3 Marks
