Mining cost estimation and procurement that provides continuity between estimating and post-tender commercial control for Tier 1 Gold Miners

During the early 2000s as part of owner versus contractor trade-off studies and procurement support to one of the global Tier1 gold miners on numerous open-pit mining applications, Tacmin expertise developed an evaluation and procurement system with the following unique features.


Fleet selections aligned with strategic mine engineering objectives


Using the Clients mine engineering and geology, simulated the mine site conditions and with Tacmin's world-wide equipment cost database carried out fleet selections and established the most suited equipment requirements. Following selection of equipment requirements, assisted with the compilation of enquiry documents for both MARC as well as owner maintenance cost estimates.


Carried out equipment LCCA (life-cycle cost analysis) in the context of the impact on mining cost


During adjudication, in anticipation to recommend the most suited OEM supplier for owner mining applications, incorporated the fluctuation of equipment life-cycle costs into the medium and long-term mining schedules, and developed mining budget forecasts that are aligned.


Capex and opex comparisons between OEM's expressed in medium and long-term mine plan cost


Incorporated equipment capital and operating costs as derived from the LCCA and developed the mining cost and budget forecasts such that OEM comparisons can be concluded in the context of the medium and long-term plans, along with the Clients strategic OEM objectives determined and recommended the most suited supplier.


Aligned contract mining with owner-operated mining cost models for ease of financial analysis and comparisons


For future mining projects assisted with contract mining enquiries and obtained estimated contract mining costs ore else, on going concerns, incorporated the contractors tendered costs into medium and long-term mining costs, similar to which were developed for owner mining and compiled financial models for ease of comparing owner and contract mining.


Compiled shadow-bids (zero profit margin bids) for contract mining extension negotiations


Where contract mining was selected as the preferred mining option, in the case of contract extensions for remote mines where the contractor was already established and operating for several years, compiled zero profit margin contract mining estimates using the Clients medium and long-term mine plans and assisted with contract re-negotiations.


Owner mining equipment maintenance enterprise management system that provides continuity between estimating and post-tender commercial control


Subsequent to the assignments relevant to this article; our procurement process was further enhanced and now provides for continuity and post-tender commercial control to the extent that procurement is integrated and aligned with our enterprise maintenance management systems.


Post tender commercial control now extend beyond procurement and among others comprise of strict control for equipment maintenance processes that provides for the complete requisition, purchase order, delivery, invoice reconciliation and payment cycle. This procurement system seamlessly integrates with our cost estimating, project management and control software.


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