Maintenance at the Top of the World
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US$5.5 million in savings due to disposal optimization
3-5% reduction in Maintenance Expenditure |
The Mine Site
Newmont’s Yanacocha mine is the largest gold producer South America. Located above 3,800m in the Andes mountains of Peru and situated 48 kilometers north of the city of Cajamarca, it consists of five open pit mines, four leach pads and three gold recovery plants with a forth plant coming on line in 2008. The mine produces around 1.6 million ounces annually.
The Challenge
In 2005, Yanacocha undertook the challenge to self-perform mobile equipment maintenance. Previously equipment was managed under contract. To be successful, Yanacocha knew they required specialist equipment management systems to effectively run the large number of equipment.
The Solution
Newmont implemented AMT at Yanacocha and also took advantage of the lifecycle costing and strategy optimization features of AMT. AMT allowed Newmont Yanacocha to achieve three major benefits:-
- Reduce the time to prepare and improve the accuracy of the maintenance budget
- Optimize equipment strategy to reduce after failure change-outs
- Optimize equipment disposal life to minimise life cycle operating cost
The Benefits
Early in the implementation cycle, the equipment optimization routines in AMT identified US$5.5 Million worth of potential savings that could be realized from optimizing equipment disposal lives. Further, an estimated 3-5% reduction in overall maintenance budget has resulted from refining the equipment strategy using AMT’s strategy optimization process.
The Technology
Built on a highly scaleable SQL database and Microsoft .net 2.0 platform, AMT was able to handle the large asset base as well as the many users and transactions required to manage the equipment.
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