Mining is an industry whose budget depends on labor and raw material costs, making it difficult to minimize expenses. However, there are a few things you can do to manage costs and complete projects with a reasonable allocation of funds. Here are three ways you can help your organization reduce mining project costs.
- Cut on-site fuel costs
Diesel costs likely occupy a large portion of your budget, but there are a few ways you can reduce this expense. Caliba Group recommended first checking to see if you’re getting a competitive unit price on your fuel by regularly checking market reports. Because best prices are always shifting, you should be monitoring them to ensure your company gets the most for its money. Additionally, look to see if your organization is claiming all off-road fuel rebates, as this can funnel money back into your budget. The source suggested refining your procedure for recording fuel consumption, as this will be influential for you receiving maximum rebates.
- Optimizing maintenance and management procedures
Your organization might be wasting large amounts of money each day simply because your maintenance and management practices aren’t up to par. Industry blog Mining and Blasting explained that companies that reduce equipment downtime by around 20 percent can boost productivity by as much as 30 percent. Placing an increased focus on preventative maintenance can eliminate the need for expensive and time-consuming repairs down the road.
- Use less fuel
Of course, reducing fuel usage is far easier said than done, as there are many cogs in the mining wheel that require fuel to operate efficiently. There are certain things you can do to help you cut corners in this area, however, noted Caliba Group. For example, choose a fuel supplier committed to efficiency and closely monitor whether this is positively affecting your budget. You may also want to implement security improvements if you feel like fuel theft might be an issue within your mining sites.