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Interview with Stuart Burckhardt for Mining Weekly

Questions by Kelly Farthing (Mining Weekly)

How would the AMT asset management software benefit the maintenance needs of a mine?

One important thing to understand about AMT is that it has been built for mining. It is based upon a proven equipment management process and is intuitive and easy to use. As a result we get very good user acceptance from our core maintenance planning, work order and work execution users. So it gets the basics right. However, the icing on the cake for mining operations is the decision support capability. Using a life cycle costing methodology, AMT answers questions such as “What is the best time to dispose of assets?” and “Should I replace a component now, or extend its life by another two thousand hours?”

How has AMT benefitted such newly acquired contracts at Moolmans and Mopani Copper Mines Plc?

Specifically for Moolmans, they have realised the benefits of having all of their equipment management functions in one tightly integrated system that is accessible from Ghana to SA. The plant manager in Kempton Park can see the availability of trucks in Mali … and using AMT, quickly work out what need to be done to improve it.

Mopani Copper Mines Plc on the other hand saw that AMT integrated with Sage X3 was a very capable and cost effective enterprise solution which could replace their existing ERP.

Please discuss how the AMT asset management software could benefit mines in the current economic climate?

One of the effects of the global economic crisis is that cash is very tight and understanding future cash flow is extremely important now. One of the main benefits of AMT is the accurate maintenance (cash flow) budgets that are built from our dynamic life cycle costing (LCC) approach to equipment management. You must understand that the cost of maintaining equipment is not the same every year. New equipment may run for two or three years requiring very little maintenance expenditure save regular servicing. However, in its third year it may require major expenditure as the engine and other major components are replaced. AMT allows mining companies to firstly forecast their maintenance expenditure based on the planned maintenance work. This approach is also called zero-based budgeting. Secondly, once the base budget is built, Mining Companies can play ‘What-If” and test the cash flow impact of various operating scenarios.

What has been the most successful project undertaken by the company with regards to mining maintenance? Why was it a success?

While AMT realises immediate efficiency and cost saving for mining companies, there are also long term benefits that come after using AMT. Yanacocha, a large Gold Mine in South America, started using AMT in 2005. Today, there are over 60 users of the tool on site. By using AMT to continually optimise their maintenance strategies Yanacocha reduces their annual maintenance expenditure by an estimated 5-10%. Further, by using AMT’s economic life optimisation tool, millions of dollars of additional asset value are realised simply by understanding which assets should be disposed and which should be keep working. Yanacocha continue to adopt the latest features of AMT with plans to implement our recent Condition Based Maintenance module during 2009. iSolutions works closely with the mine to continue to refine our software based on worlds best practice.

What are the main challenges facing the company at present?

Like most organisations, the uncertainty of the current global economic environment means it’s difficult to plan in the short to medium term. While we are continuing to grow month on month, we are certainly more cautious when it comes to hiring staff and committing expenditure.

What is the company’s present outlook and plan for the future?

Based on the success of the AccTech partnership, iSolutions is looking for similar arrangement in other parts of the world. We are currently talking to potential partners in both South America and Australia. This will provide our current global client base with local support as well as bring the benefits of our AMT product to additional mines.

About iSolutions
iSolutions International Pty Ltd (iSolutions) is a leading provider of software, services and training to mining equipment companies. Our software and processes are based upon a dynamic Life Cycle Costing (LCC) methodology which enables Equipment Managers to understand how the decisions they take today effect the long term productivity and cost of their operations.

Formed in 1997 by Graeme Elgie and Robbie Feyder, who remain today as its principal owners, the company has maintained its focus on the niche heavy equipment market that provided the impetus to establish iSolutions. This focus is reflected in our charter and our continued relationship with our Customers.