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Conference Proceedings

PACRIM 99 Congress

Conference Proceedings

PACRIM 99 Congress

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Productivity Improvement Without Capital Expenditure - Optimising Machine and Labour Utilisation

The history of mining is rightly proud of its achievements in improving productivity and cost improvements over the years. No matter what measure is used, tonnes per manhour, cost per tonne, etc vast improvements have been made over the last hundred years. In fact over the last ten years in Australian coal mines raw coal output per employee has increased by 60 per cent. When one examines why these improvements have taken place the principal reasons have been technological advancement in mining equipment, excavator and dump truck capacity increases, longwall and continuous miners continually improving in reliability and size. Of course all these improvements are correlated to an increase in capital cost. Even with the above-mentioned advances the pressure for increased performance is as strong as ever. The international mining and mineral-processing sector is currently operating in a recessive market with some traditional commodities, eg gold trading at 20 year lows. During recessive times senior management will demand greater returns on capital employed: the obvious choices being reducing costs or increasing throughput. In addition, head office environments will often place a capital freeze on operational management so the opportunity to take advantage of technological change is not available. The challenge is, therefore, to increase throughput and cut costs without the need for capital. The answer is to optimise the existing labour and plant. If done systematically a result in productivity improvement, in our experience, as high as 45 per cent can be achieved with the average across South East Asia and Australasia being 21 - 23 per cent. The intention of this paper is to present a systematic approach to labour and machine utilisation thereby gaining the greatest possible return on the existing capital base.
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  • Published: 1998
  • PDF Size: 2.712 Mb.
  • Unique ID: P199904043

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