This document summarizes a research paper on the effect of equipment utilization on the economics of mining projects. Some key points:
- Poor utilization of heavy earth-moving machinery (HEMM) in open-pit mines can negatively impact production, productivity, and production costs, leading to lost revenue.
- The paper analyzes how different levels of utilization for mining shovels impacts yearly production, indirect costs per ton, direct costs per ton, and total costs per ton.
- Results show that increasing shovel utilization from 10% to 40% reduces costs per ton sharply, with little added benefit beyond 40%. Management should aim to reach at least 40% utilization.
- By increasing utilization to 40%, the cost