The Role of the Supplier in Remote Area Mining

In contrast with mining in areas close to the main centres, mining in remote areas is characterised by comparatively high initial investment and relatively high running cost for the life of the mine. This is because of:the real cost of establishing and running the operation at a location distant from the necessary infrastructure; and the perceived risks priced into their costs by the multitude of suppliers involved in the project. Optimal co-operation between the mine and the supplier in developing the right rela tionship and the correct technical solution permit both cost elements to be reduced. This re duction may well mean the difference between success and failure. This paper examines the possibilities for optimising the contribution of the equipment supplier to the overall success of the process. Issues covered include the necessity to provide more than merely equipment fit for the purpose , but also the need to maximise the benefits of equipment ownership over the life of the mine. A simple method of determining the optimum timing for equipment replacement or rebuilding is proposed . Furthermore the maintenance contract (or performance agreement) is suggested as a means of leveraging the supplierÆs commitment to the mining operation. The specific examples are based on experience with mobile equipment but the methodology has relevance to other equipment and supplies.