Improved Mining Outlook Sees Increase In Mining Equipment Market
05 December 2016
Continuing urbanisation, growth in manufacturing, and increasing investment in key infrastructure in Asian nations means that demand for Australia’s coal, iron ore, and other minerals will continue to grow, according to the Minerals Council of Australia1.
A November report from PwC2 also confirmed that the mining industry has indeed passed the worst of the downturn and is making a comeback boosted by gold and lithium. Despite tough economic conditions and global financial uncertainty, November figures demonstrate that the mining industry continues to play an important role in driving the Australian economy to improve living standards, create jobs, and invest in local infrastructure.
This improved outlook will lead to a more fluid and active equipment market as most activity in mid-to-large scale mining machinery and equipment occurs as markets rise from the bottom of a trough.
In a recent report - Tracking The Trends In 2016: The Top 10 Issues Mining Companies Will Face In The Coming Year - Deloitte identified the need for strong asset management as a key issue for minimising maintenance costs and increasing mine efficiency.
“Before miners can achieve zero unplanned maintenance, they must first strengthen their asset management practices. Simply putting sensors onto all equipment is insufficient if the company lacks the ability to analyse the data. With tools that give miners visibility into the health of the assets they are tracking, companies can amass and analyse baseline data points to predict things like regular failure points, asset wear-and-tear, required maintenance frequency, shifting energy demands and optimal resource deployment, ultimately minimising maintenance costs and improving asset efficiency.”3
Each year, the mining industry spends millions of dollars on managing and maintaining the fixed assets of mine sites. According to Global Mining, maintenance is the industry’s biggest cost, and this ranged from 30% to 50% of the total operating costs in 2014. In fact, more than 60% of the total mine workforce can be almost exclusively focused on servicing or repairing complex assets in the field4.
These numbers are a strong indication that mining companies are committed to prolonging the life of their tools, equipment, and facilities to increase the efficiency of existing assets. By strengthening their asset management practices, mines can reduce the total operating costs and maintain the optimal productivity of a plant site, which is fundamental to all action taken in the mining industry.
Contact the experienced team at O'Maras Valuers & Auctioneers about how we can assist you in developing an asset registry and creating systematic asset management efficiency.