Surface Mining

OPEN PIT MINING:

LARGEST COAL MINE IN THE WORLD STRIVES TO INCREASE TONNAGE OUTPUT TO MEET HIGHER MARKET DEMAND

Company was considering major capital expenditures for the purpose of increasing capacity that had theoretically been maximized.  there were major concerns in maintenance, both internal and contracted.  In the maintenance area there were significant amounts of lost productivity due to poor planning, warehouse issues and lack of supervisory direction.  Haul Truck maintenance was performed by a contractor at a cost of $13,000,000 per year.  Analysis indicated a lack of control over equipment usage and corresponding operator utilization and performances.

 

 

 

BUSINESS ISSUES-

  • Equipment in general and Haul Trucks in particular, were used based on the number of people at the facility, not on Mine Plan Requirements
  • Maintenance personnel were continuously in a reactive mode, supervisors routinely lost contact with their mechanics within an hour after start up
  • Capacity calculations were based strictly on historical performance.  There was no understanding of the cycle time to bring a train in, ready it for loading, load the train and get it off the property

PROJECT OBJECTIVES-

  • Determine standards for loading trains based on size and car type so true capacity could be determined
  • Develop a Maintenance Management System identifying and quantifying all work, scheduling that work and monitoring its completion
  • Include Production in the process of determining Maintenance priorities
  • Develop a dynamic process for determining equipment requirements, primarily Draglines, shovels and Haul Trucks
  • Train all Management to be effective managers

MAL DELIVERED-

  • Haul Truck usage was reduced by over 20% resulting in over $3,000,000 in annual contract maintenance savings
  • Overall equivalent head count was reduced by over 21% (179 people) through attrition and the elimination of temporary employees
  • Labor cost per unit savings in Maintenance of over $2,300,000 per year
  • Labor cost per unit savings in Production of over $2,800,000 per year
  • Reduction of Maintenance Material and Supplies of over $5,000,000 per year
  • Avoidance of capital expenditures to increase capacity that were roughly estimated at over $20,000,000
  • Implemented a Maintenance Management System incorporating performance metrics calculated at the end of each shift and reviewed daily
  • Designed and implemented Management System for all production areas that determined the equipment and number of operators required on a shift by shift basis to achieve the Mine Plans.  These systems also incorporated performance metrics that were calculated at the end of each shift
  • Identified an increased capacity of more than 20% with no capital investment