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What are the merits for contract mining opposed to owner mining

In tough financial times such as the ones many mining operations find themselves in, a key benefit to be had from engaging with a contract mining service provider is that the mine owner is able to reduce exposure to capital costs. In this scenario, it is the contract mining service provider who takes the risk on capital.

Another key factor is that mining contractors have a completely different focus to miners. A miner will be mostly focused on ore grades and extraction rates, wanting the maximum grade at the highest volume their plant can handle – and at the optimal extraction rate. A contract mining service provider’s focus is on moving the largest volume at the lowest possible cost per ton, thereby driving productivity on the mining side.

A contract mining service provider will bring its own fleet of equipment which is specifically matched to the materials handling application on a project, and will maintain the equipment ensuring optimum uptime and that production targets are met.

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