An Alternative Strategic Option in Managing Mine Mobile Asset Replacement

Teck Highland Valley Copper is the largest copper mine in Canada. The operation requires annual sustaining capital funding in order to replace equipment and maintain capacity. The asset replacement strategy is to replace mine mobile equipment once it achieves a pre-determined asset life. The problem arises during a low commodity-pricing environment when sustaining capital funds are not readily available. The capacity loss in subsequent years can adversely affect the operating capacity and operating margin of the mine.This paper will look at two alternative options that can be utilised during low commodity pricing environments. The first option will be to procure a single asset to maintain capacity in the short term. The second will be to execute a targeted precision rebuild of the asset to maintain capacity going forward in the longer term and provide a cost effective alternative to asset replacement.