The crucial role of asset management in mining operations

Asset management means carefully handling and getting value from the things a group or company is responsible for, throughout their entire life. It is super important in mining, where using assets the right way is a big deal because of how much and how intensely they are used.

In mining, we work hard to manage assets well – from getting them and using them to keeping them in good shape and finally stopping to use them. The focus is on making the most out of assets and handling risks, costs, and performance in a smart way. Doing this is crucial to keep operations going smoothly, following the rules, and being efficient.

This article will give a quick look at the best ways to manage assets in the mining industry. It also shares insights into how mining operations are changing and why effective asset management is so important in this field.

Does asset management hold importance?

In the world of mining, how well things like equipment, technology, and the people working – known as assets – are taken care of really matters. Asset management includes keeping everything in good shape, planning for the entire life of equipment, and handling the financial side of mining.

Doing asset management well can also lead to the following:

1. Keeping things safe.

2. Making the most of money spent on equipment.

3. Making better decisions.

4. Figuring out the best costs over the whole lifespan.

5. Managing risks more effectively.

6. Being able to predict things better.

7. Using less energy.

Key elements of mining asset management

1. Taking care of equipment

In mining, it is crucial to take good care of our equipment throughout its life. This involves everything from getting it, setting it up, using it, and making sure it stays in good shape. Pay attention to every step, even when it is time to stop using the equipment. By keeping an eye on the entire process, mining companies can make sure each piece of equipment works well and serves its purpose from start to finish.

2. Staying safe with risks

Making sure things go smoothly in mining means dealing with unexpected issues. Risk management is like a safety plan for our operations. Take a close look, understand, and prioritize the potential problems that could happen with equipment to be able to come up with smart plans to handle these issues before they become big problems.

3. Keeping things running smoothly

We regularly check and evaluate how our mining assets are doing to make them work even better. This helps us use our assets efficiently and find areas where we can make things even smoother.

4. Saving money smartly

Pay close attention to our expenses. Work hard to balance spending and find ways to do things more efficiently when maintaining and taking care of equipment. The goal is to cut unnecessary costs while keeping our assets working great. Managing costs well is a key part of keeping mining operations financially stable and successful.

5. Maintenance management

This involves planning when to check and fix things and focusing on preventing problems before they happen to avoid unexpected breakdowns and keeps maintenance costs and downtime low. Proper maintenance makes sure assets last a long time and work reliably, supporting smooth and effective mining operations.

Benefits of better asset management

1. Improve mine planning

Before a company can start digging, it is important to have a good plan to make sure the work is done as quickly and efficiently as possible. To make things better, you can

1. Get a team of experienced people in mine planning to make operations better. Keep an eye on how much is produced each day, where mining happens, and what minerals are there.

2. Use better sequencing to plan mine sites more effectively.

3. Raise the quality by increasing cut-off grades.

4. Produce more from mines where it is cheaper to do so and make them a priority.

5. Spend less money on mines that will not produce much and will not last long.

2. Improved efficiency

While people can work hard to be as efficient as possible, using technology can cut down on mistakes and do even more.

1. Tools that show how things are going, from digging in the ground to delivering the goods, can help you see the whole process without missing anything.

2. Upgrade your systems with the latest technology to figure out what is driving your business, like how long things take and how fast they are happening.

3. Bring everything together with a dashboard that fits your needs. These dashboards can show how well things are really going.

4. Keep an eye out for new technologies that can make work easier and find valuable resources.

3. Reduced maintenance cost

When you manage your assets better, one big advantage for mining operations is spending less on maintenance. Taking care of things before they break is a smart way to cut costs – fixing something in an emergency can be three to nine times more expensive than planned fixes. Along with saving money, doing preventive maintenance means less downtime, longer-lasting equipment, less risk of unexpected issues, and gear that works better overall.

4. Workforce planning

Companies aim to make the most of their workforce by planning. This means understanding what they can expect from their employees and making the best use of the talent available. To make the current team more effective, companies can

1. Start different programs to involve employees, like flexible schedules and training to help them grow in their careers.

1. Hire local people and train them for important jobs, especially from Indigenous communities.

2. Teach teams about how the business works in areas like mines, plants, infrastructure, and sustainability.

3. Build a culture that encourages using company resources wisely.

4. Adopt work practices like work clusters and cross-training to save money and use resources smartly.

5. Optimize operations

Making mining operations more efficient is not that hard, but making sure the improvements last is a bit tricky. To keep costs down, companies can try the following:

1. Make processes and methods that make operations better and last a long time.

1. See what other industries are doing and learn from them.

2. Use Six Sigma methods (like shareholder value analysis) to find where operations can be more efficient.

6. Making your working capital better

When it is tough to get money for new things or daily operations, making the most out of what you already have becomes super important. As mentioned earlier, taking good care of your assets helps a lot in getting more work done and spending less money. This is good news for your mining company’s working capital, which is the money available for daily operations.

People usually think that getting the most out of mining assets means choosing between taking care of them and using them a lot. But here is the trick: when you realize that a big chunk (30% to 50%!) of your total spending goes into maintaining and managing equipment, making any small savings in these costs can make a big difference for your company’s money situation.

7. Improved access to maintenance and spend data

Getting better access to data about maintenance and spending is important. It is like saying you cannot control something if you do not know how it is doing. Many mining companies do not have enough information to make their assets more valuable.

Special solutions for mining assets and maintenance give you detailed information about your equipment. This data helps you make smart decisions, like when to replace old equipment, buy more, or move assets to better places. Big research company McKinsey is positive about the benefits of having maintenance data. They say that by 2025, using data to improve how you take care of equipment could reduce maintenance costs by 5% to 10%.

8. Reduction in business risk

Lowering business risk is important. To handle the risk related to assets, you need a plan to stop or decrease losses if equipment breaks. Using special apps for managing equipment can help. These apps set up standard ways to find, measure, and rank the risks of asset failure. This includes things like how long the asset might be down, following rules, and safety and environmental issues.

A good plan for maintaining assets not only lets you see the risks but also gives you a way to put controls and strategies in place. These controls and strategies help make the impact of risks smaller, reducing their effect on your business.

9. Increased utilization rates

By keeping a close eye on assets and regularly taking care of them, mining operations can use their machinery more effectively across various sites.

Equipment or asset utilization is like measuring how much and how well your mining machines are being used. We figure this out by looking at things like when the machines are turned on or off, how many hours the engines run, and how much fuel they use. Some more advanced ways to measure include using GPS to know where the equipment is or using sensors to check things like weight. By gathering data on where an asset is, how long its engine runs, and if it has been properly maintained, we can understand how well it is being used. This helps us measure and improve its utilization.

Lindsey Walker is the marketing manager for NEXGEN, a Sacramento-based industry leader in designing advanced computerized maintenance management systems and asset management software tools.

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