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MEI Online: General Minerals Engineering: Latest News: December 11th 2017


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:: Figuring out the Flowsheet - The Benefits of a Total Cost of Ownership Model for Mineral Processing Equipment


By Alexandra Lopez-Pacheco

It has been tough out there for the mining industry over the last decade with volatility in commodity prices and rising costs. “High capital costs have been a huge hindrance to the industry,” said Adam Miller, technology and innovation lead for Teck Resources. Miners have understandably clamped down on capital expenditures and worked on getting the biggest bang for their capital buck through improved efficiencies.

But that is a short-term strategy with short-term savings and higher long-term costs, say some original equipment manufacturers (OEMs). They believe they can prove that the capital investment in equipment will save miners money and make them more profitable in the long run. Yes, the capital cost of such mineral processing equipment is high, but factor in the operational expenditure for a total cost of ownership (TCO) and it is a very different picture, they say. And they have the numbers to prove it. OEMs like Metso, FLSmidth and Outotec are willing to back it up by sharing some of the risk through new types of payment options and equipment life-cycle service (LCS) agreements based on performance outcome. They want to revamp the kinds of relationships they have with operators through those agreements to be far more hands-on in helping them reach their goals.

Carry on reading at magazine.cim.org/en/operations/figuring-out-the-flowsheet-en/




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