Economies of Scale in Surface Mining Equipment ù Dimensions and Impact Analysis

The mining industry has aggressively sought competitiveness through increased productivity and return on investment. A primary strategy has been the pursuit of economies of scale. This has also been dependent upon the implementation of new technology and systems integration. System integration has been accomplished through the implementation of mine dispatch, global positioning and mine wide communication technologies. These technologies have tended to advance at different rates of development and implementation. The result has been that across the industry, and even within companies, mines are at various stages of operational system re-engineering in these areas, driven by improvements in productivity and operational efficiency. Although this strategy has been successful, little effort has been made to analyse change in operational performance in order to understand and model the effects of scale in a quantitative manner. This paper considers the particular impact of equipment scale, together with potential future trends. It then presents and demonstrates a preliminary method to quantify through simulation the anticipated benefits of economies of scale.