Mining responsibly requires specialized equipment, large-scale facilities and advanced technologies. In the event that these critical assets break down or fail to function properly, our ability to operate efficiently, effectively and, most importantly, safely can be put at risk. Ensuring the availability, reliability and operational performance of our assets is vital to ensuring the safety of our people and the success of our business.
Our asset management vision takes a total life view by considering the best ways to manage and care for an asset throughout its life cycle, from design to disposal, and across all areas of the mine site. Mike Wundenberg, Group Executive, Asset Management and Business Improvement, points out that this “cradle-to-grave approach reinforces the importance of cross-functional collaboration across a broad range of functions that interact with the asset at some point during its life cycle.”
Newmont’s asset management team works together with our operations, projects and supply chain teams to align on strategy and standards as well as to elevate the performance of our mobile and fixed plant assets over their life cycle. This work includes building on and sharing many good practices already in place and facilitating a global community of practice where asset management professionals can collaborate and gain additional insight to leading practices.
A robust and collaborative asset management approach is helping to extend the life of Newmont’s assets and reduce capital costs over the life of a mine. Our Full Potential program is all about identifying and delivering business improvement opportunities across our operational and support areas and has been instrumental in reducing costs at continuing operations since 2012. Many of these Full Potential improvement opportunities come from the asset management space including improvements in equipment reliability, availability and utilization.
In Nevada, the Carlin Truck Liner Program has saved more than $3.2 million in the cost of liners alone, not including the additional savings from reduced down time. In Australia, the use of tire chains on front-line loaders at our Tanami mine has doubled the life of tires, lowered down time and improved vehicle traction making it safer for drivers. These are just a few of the improved asset management initiatives that are helping us build a longer-life, lower-cost asset portfolio.
The case for effective asset management is more than just financial. As Scott Lawson, Executive Vice President and Chief Technology Officer puts it, “From an employee standpoint, benefits of a strong asset management culture include an operation that is in control, a safer workplace, and opportunities for employee development and career growth.”
For more on our efforts to build a sustainable and competitive business, visit the “Financial and Operating Performance” section of Beyond the Mine, our annual sustainability report.