Controlling Costs in Mining Operations
Controlling Costs in Mining Operations
Description
Mining is an expensive business. The costs of equipment, fuel, payroll and maintenance add up quickly, and every dime spent detracts from the mine’s profits. You want to get the most out of your mining operation, so it’s in your best interest to make sure all aspects of your operation are performing as cost-effectively as possible. Caterpillar understands this challenge, and we have the expertise and technology to help you meet it. We asked our customers to identify their biggest sources of increased costs, and many of them gave us the same five answers: process variability, unscheduled repairs, fuel costs, collisions and shift change. In this paper, we’ve gathered brief explanations of each of these challenges and offered our advice on how you can measure and respond to them. In addition, we’ve included information on how Cat® technologies can help you get the lowest possible cost per ton from your mining operation.

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Dexter Sand and Gravel is part of Delta Companies, a subsidiary of Colas USA. Delta owned another sand and gravel operation near the current Dexter, Mo., site that was running out of reserves. So in 2009, Area Manager Mike Martin and Delta Mining Engineer Scott Jinks started looking for a new site close to the old operation. They found it in Dexter, just two miles south of the old site. The company broke ground at the Dexter site in February 2012. By April, crews were pouring concrete for the foundations, and construction was underway in May. The site was producing sand by the end of July. Problem “This site is a great sand deposit with a small amount of gravel that is easily separated,” Martin said. “The challenge with this deposit is that it contains trace amounts of lignite.” Martin said that lignite, a material similar to soft coal, causes problems with concrete sand because it is lighter than the sand and essentially pops out as the concrete sets, causing voids in the finished concrete. Martin and Jinks were concerned with the quality issues caused by lignite and looked at viable options from several aggregate processing equipment manufacturers. Ultimately, they decided to work with McLanahan Corporation, which was represented in Missouri by Mike McCarron, Sales Manager for Continental Equipment. The team came together to design the plant and make sure the equipment could separate the lignite and make the desired products.
Mine on Demand
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Productivity has become the new mantra in recent years for the mining industry. Ever since the “super cycle” of the commodities price boom came to an end, industry executives have realized that a blind chase for value can lead to significant structural costs and productivity defects in the mining process, which ultimately decrease profit. Many chief executive officers (CEOs) have responded to this market volatility by making significant cuts in capital investments. Possessing more operational (“back to basics”) profiles than their predecessors, industry leads now realize that in addition to improving short-term cash flows, they need to: ●● Make sustainable gains in productivity. Programs aimed at improving productivity need to have an enterprise-wide impact, beyond pilot programs that address people or equipment. These productivity initiatives also need to be accepted across all operations and made sustainable going forward by emphasizing truly continuous improvements. ●● Respond with more agility to fluctuating market demands. Business agility requires a supply chain design that enables faster responses to shifts in market demands and prices. With improved business agility, it’s possible to optimize net results per quarter—right down to margin-per-hour operations. Transforming the supply chain design in this way requires a forward-looking understanding of market demand, scenariobased planning, optimal resource allocation and flexible scheduling decisions—all of which necessitate changes across people, technology and processes.
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Design-Manufactured & Installed Total Solution Vince Hagan stationary batch plants set the industry standard for reliability and longevity. Our plants address your needs for robust storage, a uniform mix, and the high-production demands of both large and small projects. We will custom design your plant to meet your site layout needs while considering seismic and high-wind requirements for your location. Plus, our exclusive smart plant technology is pushing our plants to the forefront of the industry with an app that monitors sensors on vital plant components and can predict possible downtime. It also manages weekly/monthly maintenance schedules. TRUSTED INSTALL BY MANUFACTURER Installation of your equipment is just as critical as the purchase. And with over 60 years of turnkey installation services, Vince Hagan is your trusted industry partner. All installations include comprehensive operational and maintenance training to assure your equipment is running safely and efficiently. RETURN ON INVESTMENT Vince Hagan plants are legendary for value because of their proven dependability, high production, and longevity. When it comes to making this significant investment, you can rest assured that the center of your production relies on equipment built to last for a generation. Go factory direct, and cut out the middleman. We help you maximize your profits instead of paying for corporate overhead and shareholder dividends.