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Owner-operated mines versus contractor-operated mines

16th May 2003

By: candice haase

  

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In recent years, mining companies in the openpit mining sector, including smaller opencast mines and larger surface mines, have more thoroughly considered the advantages of owner-operated openpit mines compared with contractor-operated mines.

This is the opinion held by Tacmin MD Sarel Blaauw.

Due to the varying factors when operating an openpit mine, mining houses have much to consider before making a decision.

The life-of-mine can be used to aid mine-owners in their decision to mine an openpit mine themselves, or to rather choose a contractor.

Due to the costs associated with obtaining capital equipment, mine-owners typically need to assess the life-of-mine to determine whether investing in equipment is worthwhile, Blaauw explains.

Tacmin, a consulting company focused specifically on the openpit sector, can assist mining companies in making these decisions.

Blaauw remarks that one of the greatest challenges to mining companies that elect to operate their own openpit mines is the shortage of skills in project management, while contractors have, over the years, developed the skills associated with this type of mining activity.

Although Tacmin remains impartial, Blaauw remarks that more owner-operators are drawing on the project-management skills housed at the Johannesburg company. The company has the technical resources and skills to aid mining companies in all aspects of project management of an openpit mine, from geological modelling, pit optimisation and design, to fleet selection, production, cost, mine planning and management.

Tacmin has a seven-year history of consulting on openpit projects.

In an advisory capacity, the company consults on greenfield projects, as well as on projects where existing mines leave room for improvement.

Working on a greenfields project requires the assessment of the economic viability of the mine through costing the design for the life-of-mine.

Openpit mine improvement involves the re-evaluation of all geological information and mine engineering parameters to enhance the full potential of the ore reserves. Moreover, the information generated from conducting a re-evaluation can be used in renegotiating the details when a contract is out to tender, or before an existing contract is renewed, Blaauw explains.

The data generated through feasibility studies also serve as a basis for drafting tenders prior to the inception of a project.

As a result of the company’s specialised focus on the openpit sector, it is able to project-manage operations, from inception through to implementation and management.

Due to the varying geological and mine engineering parameters used for different operations, every project is case-specific, and Tacmin’s experience base, drawn from eight specialists, enables the company to adapt to each project, Blaauw explains. He believes the shortage of experienced openpit project managers is a result of the braindrain of mining expertise that left South Africa to work on projects abroad.

The reputation that the company has gained for itself in working on large-scale openpit operations has seen its personnel travel across the African continent.

While the tendency among South African mines is towards shorter-term mining contracts, the logistics associated with openpit contract mining on the African continent generally ensure longer contracts, but is also favourable to owner-operator mining methods, Blaauw explains.

“Any contractor that needs to establish equipment further north needs to have the financial security that it will be there for a longer time,” he remarks.

Edited by candice haase

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