Introduction
The life cycle cost of mining equipment involves the cost of their purchase, operation, and eventual disposal. It is an important indicator of the efficacy of the equipment during its useful life and an important tool for decision-making in terms of equipment selection, operation, and maintenance. Over time, mining equipment has become more complex and the associated life cycle cost has become a greater portion of the total cost of mining operations. This article looks deeper into the various components of the life cycle cost of mining equipment, and factors influencing it.
Acquisition
One of the main components of mining equipment life cycle cost is the purchase cost. This involves the cost of acquiring the equipment and additional investments in spare parts, parts inventory maintenance, associated training, and other related services. With the advances in technology, the cost of higher-end mining equipment, such as electric shovels, can be on the order of millions of dollars. Additionally, the acquisition cost for more specialized equipment, such as exploration drilling rigs, can be several times that of conventional mining equipment.
Operation
The cost of operation of mining equipment constitutes the second largest component of the life cycle cost. This cost involves primarily fuel costs, repairs and maintenance costs, parts replacement costs, and personnel costs. Fuel costs represent a substantial part of the operational costs due to the number of working hours required for the equipment to be in use and the amount of fuel required to be burned during operation. Additionally, the wear-and-tear of the equipment also needs to be taken into account, particularly for the larger, more specialized pieces of mining equipment such as bucketwheel excavators, which require more frequent parts replacement and maintenance.
Disposal
Once the useful life of a mining equipment has expired, it needs to be disposed off safely. This constitutes the third component of the life cycle cost. The cost of disposal depends heavily on the type of equipment being disposed of. For instance, the cost of disposing an underground mining vehicle will be much higher than that of an above-ground mining truck due to the different requirements for their respective decommissioning. Additionally, newer pieces of equipment may require more safety measures to be taken and greater expenditures in terms of proper disposal.
Organization Knowledge and Planning
The organization knowledge and planning associated with the equipment is another factor influencing the life cycle cost of mining equipment. This includes knowledge about the process and operation of the equipment, knowledge and understanding of the steps required for proper maintenance, how to respond to breakdowns, and personnel and scheduling requirements. Additionally, there is the element of planning for the purchase, maintenance, and disposal of the equipment. Proper planning will result in efficient resource utilization, minimized costs of operations, and a greater life expectancy of the equipment.
Other Factors Affecting Life Cycle Cost
Apart from the four main factors mentioned above, there are other aspects that influence the life cycle cost of equipment such as type of ore, grade of ore, mining methods and techniques, availability of water, availability of fuel, geographic location and environment, regulatory requirements, and others.
Conclusion
The life cycle cost of mining equipment comprises a number of components that need to be considered in order to ensure the most effective and efficient operations. In addition to purchase cost and operational cost, the disposal cost and organization knowledge and planning play an important role in the total cost of the equipment over its life cycle. As technology and regulations change, the cost of mining equipment continues to increase, making it important to consider all aspects of the life cycle cost in order to minimize total costs and select the most appropriate equipment.
