Cost reduction, efficiency important for mines as oil price takes nosedive

27th February 2015 By: Zandile Mavuso - Creamer Media Senior Deputy Editor: Features

The recent unexpected drop in oil prices will result in mining companies experiencing slow growth and increased pressures in sustaining productivity, says fleet management software and services company MiX Telematics, noting further that cost reduction and efficiency through fleet management could be a viable option for mines during this time.

“Apart from mechanising plants to save on costs, mining companies have to consider how efficiently their resources on site are used, as a thorough fleet management solution can help identify where efficient use of resources could reduce operational costs,” says MiX Telematics South Africa and Africa sales director Steven Sutherland.

He explains that MiX Telematics’ fleet management software enables a company to assess the ways in which vehicles are used on site and monitor the timeframe during which they are used, thus allowing for the overuse or underuse of vehicles to be identified. This affects expenditure and can subsequently reduce costs.

The software also monitors how the vehicles are driven, as that influences fuel consumption, notes Sutherland, adding that, in most cases, 10% to 15% of fuel consumption can be improved using the software.

To achieve such results, MiX Telematics sends customer care managers to site to assist mining companies in installing the software and customising it to suit a mine’s operations.

“The reason we send our managers is that we have realised that sometimes the interpretation of the data can be lost when the software is installed, which affects the results obtained from the software management system,” Sutherland points out, indicating that if the software is set up in a way that serves the operation optimally, problems in the daily running of operations can be identified and solved.

He mentions that, although the software serves a dual function for mining companies – it addresses safety challenges and efficiency simultaneously –
industry continues to struggle with making the link between the two aspects.

However, he stresses that MiX Telematics emphasises the correlation between the two with all the mining companies it works with on the African continent.