Life Cycle Cost Modelling – Case StudyNew Mining Fleet - QLD, Australia

lifecycle cost modelling

The Challenge

To support our client’s plan for the expansion of operations at one of their gold mines. In addition, EnterpriseIS was engaged in developing lifecycle cost models for all of its Mobile fleet used as cost predictors in developing a future state mining operation.

Mobile equipment is often one of the highest capital costs for large scale mining operations, with significant operating costs throughout its lifecycle. By developing effective lifecycle cost models, the client wanted to accurately model the expected mine expansion costs and seek financial approval.

The Solution

Using data gathered over the past 10 years working with mobile mining fleets, along with the EnterpriseIS lifecycle cost model, the team was able to commence the development of models for each fleet type, which identified yearly figures and totals for the following:

• OPEX Labour and material costs

• CAPEX Labour and material costs

• Estimated Breakdown Labour and material costs

• Availability and Utilisation (including life averages)

• Costs per operation hour.

The model also generated whole of life asset strategy requirements, including expected component usage.

The Results

• Completed lifecycle models for mining mobile fleet equipment (CAT & Hatachi Haul Trucks, CAT Water Trucks, CAT Graders, CAT Dozers, Hitachi & Liebherr Excavators and EPIROC Drills)

• Yearly and annual costs for each mobile fleet, programmed out to any year up to 30 years

• Whole of life asset strategies developed, including estimated consumable/component usage

• Mine management was able to use this information to plug into the mine operating models, to support the approval process for mine expansion.

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