Asset Management Consultancy Big Iron Launches New Online Mining Equipment Benchmarking Service

Asset Management consultancy, Big Iron Consulting, has released an online mobile mining equipment cost benchmarking app, Mining Toolbox. Big Iron says the app is designed for both PC and tablets and gives mining and earthmoving clients the ability to quickly benchmark the costs of operating their mobile earthmoving equipment.

The service was launched this week and has equipment data for both surface and hard rock underground mines. Users of the tool can tweak the models by changing inputs such as component lives, fuel and burn and purchase prices. These changes ensure the benchmarking numbers are relevant to their mining operations.

Managing Director of Big Iron Consulting Stuart Burckhardt said that there is currently no other easily accessible tool that allows quick access to these benchmarks. With over 12,000 data points and 100 models of equipment, it Is also very comprehensive.

“Many independent consultants keep their own (whole of life cost) numbers and guard them closely. The resulting benchmarks tend to vary widely, with little transparency or consistency.”

“Equipment dealers will provide some information, but are understandably wary about releasing cost data that may be used against them in commercial negotiations.”

 “As a result, we have many companies asking us for equipment life cycle costs. It’s hard to justify this service as a once-off given the time it takes to put together a single model. The online tool means they can quickly and confidently get a baseline numbers to use for benchmarking, feasibility studies or bids. If they need a more detailed analysis, they can then come back to us and get a full study done.”

Asked about which type of equipment gives the lowest cost Stuart said;

“We are careful not to say Caterpillar is better than Komatsu or vice versa. Because this always depends on a customer’s particular circumstance. We do however provide reasonable benchmarks for different classes of equipment. So, we will say a 100 tonne truck will cost x dollars per tonne. We then show our workings and let customers tweak the data to meet their particular needs.”

“This ability to create your own scenarios form our baseline models is very important because application has a big impact on life cycle cost. A cost variance of up to 50% for different applications is not uncommon. If a haul truck is constantly traversing up very steep ramps at full load, fuel burn will increase. The increased load will also reduce engine life. This of course changes the cost profile.”

“In the current economic environment, companies are constantly asking us how they can reduce costs. Mining Toolbox lets them tweak dynamic cost models to see the impact of pulling different levers. If I can get my engine life out to 20,000 hours, what kind of impact will that have on the life cycle cost? Mining Toolbox can quickly answer these questions.”

Burckhardt said the new service, which starts at $125 per month for the hard rock underground mining package, would help mining companies set realistic targets for budgeting and benchmarking. A free trial of the service is available at http://www.mining-toolbox.com.