As a part of production logistics, materials handling is concerned with the internal material flow, which consist of inventory management and transportation. The overall goal with materials handling is to ensure the production system access to material, where the handling is to be performed without any damage to neither material nor personnel. In a manufacturing company, a sufficient part of the total production cost can be directly derived from internal materials handling. According to Lean Production both transportation and inventory should be considered as waste. Therefore, it is important to improve the efficiency of the internal materials handling system, though it must not be on the expense of the delivery precision or compromising the safety. The study assumes that the materials handling system is supposed to provide the productions system with the right materials, in the right quantity, at the right time, and doing so in cost effective manner. The purpose with this study is to identify and analyze materials handling in order to develop and present recommendations for a safer and more cost efficient materials handling, with preserved delivery precision. The study is a case study, which has been conducted on site at Sandvik Mining in Sandviken. Sandvik Mining produces drill bits, drill rods and adapters, which are used for rock drilling. The data collection has been done through interviews and observations, where the authors have been interviewing employees from Sandvik Mining as well as conducting direct observations of the processes within the field of study. The study was complemented by a literature review, where the most influential fields of study where materials handling and Lean Production. The report presents a map of current material transportation flows within Sandvik Mining as well as how the management of these flows is conducted. From the map, problem areas have been identified and the underlying cause of these can be derived from the variations within the working methods. The variations occur due to the fact the material handling system does not meet the six aspects of the materials handling equation, namely: why, what, where, when and how materials should be transported as well as by who the transportation should performed. In order to create an effective materials handling, the study presents recommendations that aims to define and standardize materials handling activities, which could be done by material-dedicated buffer zones. The study claims that these material-dedicated buffer zones would serve as reference points for the materials handling system, and based on which, it is possible to define the different materials handling activities. The buffer zones can also provide necessary control to the materials handling system as well as to the production system. Standardization of the materials handling activities can, according to the study, reduce the variations in the materials handling system as well as create opportunities for future improvements.