The decline of the "super cycle" has placed an end to a decade of production-focused strategies, with operating cost growing at rates higher than production. Today, the sector is placed on a tough ride and forced to shift focus to cash preservation and efficient cost management. However, most cost management systems in the minerals industry are not conceived as value driving tools but to meet financial accounting and reporting needs. This research draws from a the development of an innovative cost management methodology that applies Activity-Based Bottom-Up cost budgeting and continuous improvement tools to develop a value-driven cost management system for sustainable improvement of operational efficiency and cost reduction. The methodology was successfully tested in the Andina underground mine III Panel sector of Corporation del Cobre (CODELCO), in Chile.