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Mining companies worldwide largely lost sight of productivity goals that had underpinned operating discipline in the lean years of the 1980s and 1990s, when parts of the industry had set a healthy record in productivity improvement (Exhibit 1). As the demand boom gathered pace, cost increases related to expanding production got badly out of control.

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productivity and hourly compensation increased by 32.6 percent and 7.9 percent respectively. (See chart 3.) • The mining, except oil and gas industry had an increase in unit labor costs, as hourly

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