Weathering Commodity Fluctuations in Mining

In resource-based industries like Mining, volatility in commodity pricing is a constant reality. While stable pricing would be ideal, fluctuations are inevitable. During periods of price decline, maintenance budgets are often cut. Conversely, when prices rise, the costs of parts and materials needed to maintain assets also increase, prompting the question of whether the investment remains justifiable.

Reducing maintenance costs often means limiting essential work, such as skipping routine preventive maintenance (PMs), deferring major component replacements, or delaying backlog repairs. Although these measures may seem justifiable, it depletes asset health, leading to unplanned failures and increased costs. This creates a cycle of breakdowns, higher costs, and reduced asset availability, forcing organizations into a reactive mode and hindering proactive maintenance essential for reliability.

A more effective way to manage the volatility in resource-based industries is through the strategic application of reliability principles and tools. The mining industry holds an advantage with its shorter asset life cycles and, in open-pit mining, fleets of identical assets – a wealth of data that can be leveraged for in-depth reliability analysis, enabling more precise decision-making and risk management. Some of the tools that can be leveraged include:
·        RAM Analysis: Conducting a Reliability, Availability, and Maintainability (RAM) analysis enables assessment of cost reduction initiatives and the impact on overall asset performance
·        Weibull Analysis:  Using asset performance data, engineers can predict the consequences of extending component or PM intervals, estimating potential failures and cost savings.
·        P-F Curves: Data-driven P-F Curves assist leaders in conducting more effective risk assessments to help prioritize backlog and establish appropriate due dates.
Condition-Based Maintenance (CBM): Utilizes real-time data to minimize unnecessary repairs and maximize uptime. With sensors on mining assets, CBM can extend the P-F interval, allowing for effective monitoring and timely repairs.