What Will Halt The Worldwide Decline In Mine Equipment Performance?

The analysis of equipment trends in AUSIMM?s Revision of Monograph 19; Australasian Mining and Metallurgy Operating Practices (AMMOP) in the paper by Dight et al (in press) raised some interesting and in parts disturbing trends in the Open Cut Mining Industry. According to the US Bureau of Labour Statistics the US mining and petroleum industries? productivity is down by 12% since 2004 while the Australian Bureau of Statistics shows the productivity of the Australian mining industry is down by 34% since 2001. In terms of open cut equipment median output for draglines is down by 15% since 2003; electric rope shovels are down by 41% since 2003; hydraulic excavators are down by 39% since 2008; front end loaders are down by 39% since 2007 and trucks are down by 41% since 2006. Clearly the boom has not been good for the efficiency of the mines. During this same time, best practice (defined as the average of the top 10% by annual output per unit of input) has declined but not by as much as the median (eg. shovels down by 8%, excavators down by 19% and FEL?s down by 5%). This paper will build on the analysis of AMMOP to understand the differences occurring between median and best practice and identify the factors contributing to the decline in performance. As the industry enters a period of potentially lower prices for commodities and reduced margins pressure will be brought to bear on mine sites to start moving more with the equipment they have. An understanding of where efficiency has been lost will be a key component in that. The information contained in AMMOP, and the subsequent analysis of that information in papers such as this one will be crucial to reversing the decline in open cut equipment performance.