{"id":1429,"date":"2024-03-04T18:01:40","date_gmt":"2024-03-04T18:01:40","guid":{"rendered":"https:\/\/fmminermag.com\/htdocs\/?p=1429"},"modified":"2024-03-15T17:00:34","modified_gmt":"2024-03-15T17:00:34","slug":"olmsted-focused-on-the-fundamentals-in-2024","status":"publish","type":"issue-article","link":"https:\/\/fmminermag.com\/htdocs\/issue-article\/olmsted-focused-on-the-fundamentals-in-2024\/","title":{"rendered":"Olmsted Focused on the Fundamentals in 2024"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” custom_margin=”0px||||false|false” custom_padding=”0px||||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.24.2″ _module_preset=”default” background_color=”#f9f9f9″ max_height=”55px” custom_margin=”-20px||||false|false” custom_padding=”||40px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” custom_margin=”|||15px|false|false” global_colors_info=”{}”]<\/p>\n

VOL. 07\u00a0 |\u00a0 ISSUE 1\u00a0 |\u00a0 March 2024<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”Hero” _builder_version=”4.24.2″ _module_preset=”default” custom_margin=”||||false|false” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/fmminermag.com\/htdocs\/wp-content\/uploads\/2024\/03\/Josh-Olmsted-1.jpg” title_text=”Josh-Olmsted-(1)” _builder_version=”4.24.2″ _module_preset=”default” custom_margin=”||10px||false|false” custom_padding=”||0px||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text module_class=”cutline” _builder_version=”4.24.2″ _module_preset=”default” text_font_size=”1rem” global_colors_info=”{}”]<\/p>\n

\u201cI think all of us can be advocates for the company and the industry,\u201d said Josh Olmsted, President and Chief Operating Officer-Americas.<\/strong><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title meta=”off” featured_image=”off” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][et_pb_text admin_label=”Story Lead” module_class=”story-lead” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

A gradual reduction in the rate of recordable incidents and continued progress on the company\u2019s work to maximize copper recovery through various leaching techniques highlighted 2023\u2019s performance and sets the stage for a 2024 where the emphasis will be on executing the fundamentals.<\/p>\n

[\/et_pb_text][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

The overarching goal for the Americas in 2024 is \u201cWe SAFELY achieve our targets by being the BEST AT THE BASICS.\u201d In a wide-ranging interview that addressed 2023\u2019s successes and challenges and 2024\u2019s opportunities, Josh Olmsted, President and Chief Operating Officer-Americas, frequently referred to the fundamentals, the essential components of each employee\u2019s job. The 2024 strategic themes will sound similar to those of last year: Leach to the Last Drop, Maintenance and Reliability, Employee Experience, and Execute for Value. One might call these items the fundamentals of our Americas\u2019 operations. With the new year in full swing, Olmsted reflected on what worked well in 2023, his expectations for the year ahead and what he has learned along the way.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”Gray box callouts” module_class=”roboto” _builder_version=”4.24.2″ _module_preset=”default” background_color=”#e5e5e5″ custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”We Safely Achieve” module_class=”blue” _builder_version=”4.24.2″ _module_preset=”default” header_2_text_color=”#FFFFFF” background_color=”#10758e” custom_padding=”25px|25px|12px|25px|false|true” global_colors_info=”{}”]<\/p>\n

We Safely Achieve Our 2024 Targets By Being the
Best at the Basics<\/span><\/h2>\n

[\/et_pb_text][et_pb_text admin_label=”Leach to the Last Drop” _builder_version=”4.24.2″ _module_preset=”default” header_3_font=”|||on|||||” custom_padding=”10px|25px|0px|25px|false|true” global_colors_info=”{}”]<\/p>\n

Leach to the Last Drop<\/h3>\n

Deliver 250 million pounds incremental production by the end of 2024<\/h4>\n
    \n
  • Place 972 million pounds<\/li>\n
  • Execute on initiatives to extract an additional 241 million pounds<\/li>\n
  • Produce 1.2 billion pounds of cathode<\/li>\n
  • Build 100 million pounds of innovation pipeline in 2025<\/li>\n
  • Increase reserves by 2 billion pounds<\/li>\n
  • Incremental pounds produced at or less than $1.30 per pound<\/li>\n<\/ul>\n

    [\/et_pb_text][et_pb_text admin_label=”Maintenance and Reliability” _builder_version=”4.24.2″ _module_preset=”default” header_2_font=”|||on|||||” header_3_font=”|||on|||||” background_color=”#f5f5f5″ custom_padding=”25px|25px|10px|25px|false|true” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

    Maintenance and Reliability<\/h3>\n

    Drive improved equipment reliability through maintenance and execution to achieve incremental 100 million pounds of copper<\/h4>\n
      \n
    • We will measure the following to track progress:\n
        \n
      • Asset efficiency at or above:\n
          \n
        • 75% for hauling and loading<\/li>\n
        • 87% for milling<\/li>\n
        • 69% for stacking<\/li>\n<\/ul>\n<\/li>\n
        • 90% planned work and 95% PM compliance<\/li>\n
        • Reduce same-day\/next-day and direct charge ordering to 20%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

          [\/et_pb_text][et_pb_text admin_label=”Employee Experience” _builder_version=”4.24.2″ _module_preset=”default” header_3_font=”|||on|||||” custom_padding=”10px|25px|10px|25px|true|true” global_colors_info=”{}”]<\/p>\n

          Employee Experience<\/h3>\n

          Provide our employees what they need to achieve our targets safely<\/h4>\n
            \n
          • Finalize and roll out a complete line of progression operating model and load management system for five critical roles*<\/li>\n
          • Configure learning management system to track and report regulatory compliance trainings and certifications for 100% of employees<\/li>\n
          • Launch crucial programs framework with 90% of superintendent\/manager and 75% of frontline leaders completing specific courses and follow-up activities<\/li>\n
          • Improve the candidate experience and expedite the filing of vacancies by reducing \u201ctime to hire\u201d by 10%<\/li>\n<\/ul>\n

            * Five roles will be defined and rolled out in the first quarter.<\/p>\n

            [\/et_pb_text][et_pb_text admin_label=”Execute for Value” _builder_version=”4.24.2″ _module_preset=”default” header_3_font=”|||on|||||” background_color=”#f5f5f5″ custom_padding=”25px|25px|20px|25px|false|true” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

            Execute for Value<\/h3>\n

            Achieve our safe production targets, ensuring we produce the right pounds at the right cost in the right way<\/h4>\n
              \n
            • Achieve a TRIR that is at or below the target of 1.23, and reduce high-risk incidents by 25%<\/li>\n
            • Responsibly produce a plan of 2.49 billion pounds of copper and 88 million pounds of molybdenum at planned cost and quality<\/li>\n
            • Reduce contractor headcount by 20% for cost and efficiency<\/li>\n
            • Establish labor productivity metric, and trend upward<\/li>\n<\/ul>\n

              [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”question answer” module_class=”question_answer” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

              As you look back on a year just completed, what is your process for evaluating success and identifying opportunities moving forward?
              <\/strong>First and foremost, you have to look at the numbers because that\u2019s how the business is run. So, you look at safety performance, then production and costs and all the other numbers you would look at from a business perspective. That\u2019s the first pass. The other piece, in my mind, is tying it back to other efforts. So, in 2023 that would have been Leach to the Last Drop, maintenance and reliability, and the other pillars. Some of those are tied to results, and some are tied to specific activities that ultimately should be driving results. I always like to look at all the factors.<\/p>\n

              Considering all the factors, what do you consider some of the organization\u2019s highlights for 2023?
              <\/strong>On a positive note, even though we didn\u2019t hit our safety target for the year, if I look at the trend, safety performance viewed through TRIR (total recordable incident rate) improved every single quarter. We finished the year with a TRIR of 0.91 for the fourth quarter, which was significantly below the target of 1.25. We did a lot of good work in that space. We still have work to do to meet our overall objective for this year, but we\u2019re headed in the right direction.<\/p>\n

              The other one that jumps out is the Leach to the Last Drop effort and all the things that were put into place to generate additional copper that we wouldn\u2019t have been able to get otherwise. This helped offset some of the shortfalls in other parts of the business. I think that\u2019s been a true success for the business.<\/p>\n

              In the maintenance and reliability area, we saw a number of improvements last year. Sierrita has done great work over the past couple years in the mill in the crush and convey area. Bagdad has done a lot of work over the past year setting itself up for success, and so have Chino and Safford. They are positioned well as a result of the focus on maintenance work in 2023.<\/p>\n

              Obviously, there was a concerted focus on improving the safety performance last year. You\u2019ve also talked about factors not necessarily tied directly to safety that may be having a positive impact in that area. Can you elaborate on that?
              <\/strong>In addition to focusing directly on safety, when you start working on the fundamentals \u2013 the blocking and tackling \u2013 you generally see improved safety performance. Creating an inclusive culture, treating people with respect, valuing diverse ideas and opinions, and getting people involved all lead to more engaged employees who are safer employees.<\/p>\n

              You noted some of the indicators of improved safety performance across the organization. Can you point to any site-specific safety work that stood out to you?
              <\/strong>Chino established a topic of the month specific to FRM (fatal risk management), and it provided some guidance to frontline supervision about what to look for in the field. It was based on data. They identified a bunch of things by focusing on that, and they eliminated some risks. By providing some guidance and some pointed areas to work on based on data, we saw some positive results. That grew from Chino to Tyrone then to Sierrita. That was a creative approach.<\/p>\n

              Also, in the fourth quarter, Safford, working with the corporate safety team, piloted a program that looked at the FRM forms that typically address what we identify as our fatal risks. But a lot of times, it\u2019s not obvious how those risks are tied to the day-to-day work. So, they looked at how to do a task-based FRM. It\u2019s been received very, very well in the sense that a shovel runner or a truck driver or a shift supervisor sees clear, consistent information. Now, it\u2019s very specific about the fatal risks that are present, so it\u2019s all right there. It’s just another example of us getting better at what we do and giving people the tools to use in their day-to-day work.<\/p>\n

              Looking ahead to this year, the 2024 priorities appear to be in line with the focus areas of 2023. Was part of the rationale in doing so to build on any momentum already established?
              <\/strong>Yes and no. I think that\u2019s the case specifically with Leach to the Last Drop because that was much further along, much further developed. I think our work in the maintenance and reliability space got better because we got a lot more focused toward the second half of the year. That will start to gain more momentum in 2024.<\/p>\n

              The other piece that\u2019s different this year from last year is that we are really specific about the targets. And that\u2019s us getting better at what we\u2019re doing. This year, we\u2019re really cognizant and purposeful about putting numbers and targets in place, so we can measure ourselves against those targets on a quarterly basis to make sure we hit the targets by the end of the year.<\/p>\n

              Leach to the Last Drop is one of the internal focus areas that has gained external traction, even becoming a topic of discussion on some of the earnings calls. What is your view of employees\u2019 perceptions of the opportunities this effort represents?
              <\/strong>I don\u2019t think it\u2019s as well-known as we would hope. I still think there\u2019s opportunity in that sense. It continues to be really important that we hit our goal, and we\u2019re on a run rate to produce more than 200 million pounds incrementally in 2024. That\u2019s some of the lowest cost copper that we can produce. It\u2019s impactful for us, and there is huge opportunity for us to make more, which is going to require even more creativity and innovation.<\/p>\n

              [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”graph row” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Text” _builder_version=”4.24.2″ _module_preset=”default” header_2_font=”|||on|||||” header_3_font=”|700||on|||||” global_colors_info=”{}”]<\/p>\n

              Freeport Americas \u2013 2023 Safety Performance<\/h2>\n

              As the total number of reportable injuries reduced toward the end of 2023 so did the total recordable incident rate (TRIR).<\/p>\n

              [\/et_pb_text][et_pb_image src=”https:\/\/fmminermag.com\/htdocs\/wp-content\/uploads\/2024\/03\/olmsted-graph.png” title_text=”olmsted-graph” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”more question answer” module_class=”question_answer” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

              Attracting and retaining a talented workforce seems to be a priority that every part of the business can relate to. As the company tries to ensure the workforce is in place to meet the needs of the business, what can employees \u2013 even those without direct responsibility for recruiting and hiring \u2013 do to help?
              <\/strong>I think all of us can be advocates for the company and the industry. There\u2019s still a lot of negative perceptions about the mining industry in general. Some of that is changing to a certain extent with decarbonization and greenification and a recognition that you need copper to do all of that. But there\u2019s still a perception the mining industry is still picks and shovels. Hopefully, we\u2019re starting to get away from that. The more each one of us advocates for our business and why we\u2019re a good company can do nothing but help.<\/p>\n

              What is your pitch to people considering a career at Freeport-McMoRan?
              <\/strong>The new generation wants to do a good job, but they also want to make sure they are working on something that is purposeful and has an impact. So, we\u2019re trying to help people understand the work that we do really enables the development of the world, it enables decarbonization and helps parts of the world that really don\u2019t have the infrastructure the U.S. has. It\u2019s also great to ask how much copper is in your car? How much copper is in your phone? Copper is a big part of that.<\/p>\n

              You are a frequent visitor to the North America sites. In your travels to those sites, in your conversations with employees and in your own reflection, what is something you learned in 2023 that you plan to apply in 2024?
              <\/strong>The reaffirmation that we need to stay very, very focused on a few things and not try to do too much, that we stay focused on the basics of the business. We\u2019ve been talking about that for a while, that we need to put things in place to make sure we don\u2019t allow ourselves to get distracted. I\u2019m as guilty of that as anyone, so I try to step back and ask what I could have done differently this past year and apply it going forward so I\u2019m being purposeful and dogmatic about those four pillars. What are we doing to make progress on those efforts, and if we\u2019re not, asking why not?<\/p>\n

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