CONTRACT MINING ARRANGEMENT
CASE STUDY SOLUTION BENEFITS

Client using contract miner on large open
pit mining application in remote African country. Contract reached end of its three year term and Client needs to renew contract or put out to tender.
Client engaged a Tacmin Group company to price the contract mining enquiry from first principals at zero profit margin. Tacmin's tender (Shadow bid) gives a complete breakdown of costs with resource analysis and requirements which enables Client to successfully negotiate a renewal of the contract at acceptable margin's.


Shadow bids comprise of

- complete breakdown of price
- detailed breakdown of all the resources required
- optimised contract mining price


Client satisfied with contractor but due to downturn in commodity cycle would like to optimise his mining cost and improve value for money through sharing risk and skills.
Client engaged a Tacmin Group company to review the contract and investigate an Alliance Contract arrangement. Minalcon tenders the contract mining application from first principals and provide the Client with a complete breakdown of costs and resource analysis. Both Contractor and Client accept aforesaid as base price and Minalcon assists the parties with:

- open book negotiations
- performance based fee models
- Alliance contract agreements


Alliance contracts offer:

Cost savings
Best practice organisations managed a ten element total cost model to assess outsourcing contracts - an alliance type contract performed best.

Service elements
Enhanced reliability is a correlative outcome of the mix of planned, routine and emergency maintenance along with reduced liability costs and reduced overall maintenance costs.

Client decides on contract mining and need to assign a Consultancy to compile an enquiry that will procure the most suitable and optimised contract mining price.
The Client selects and assigns a Tacmin Group company due to their ability to:

- conduct practical mine designs
- compile optimal production and grade schedules
- cost the project for benchmarking purposes
- procure best contract mining prices
One of a kind mining consultancy capable of determining contract mining costs from first principals.

Tacmin benefits from keen contract mining prices due to competitive mining methods offered by affiliated company Mantac Resources

Client using contract miner on large open
pit mining application. Contract due for renewal but mining application leans itself
to owner operator mining methods.
The Client selects a Tacmin Group company which offers operations management services for owner operator applications. Mantac Resources provides operations personnel for new mines and accepts operation and geological responsibility.
Tacmin Group company Minalcon, assists mining Clients with procurement of equipment inclusive of off-balance sheet deals.

Mantac Resources offers the cheapest mining solution in the industry.

EQUIPMENT PERFORMANCE AND UTILISATION
CASE STUDY SOLUTION BENEFITS

Client – owner operator of open pit mining application experience unacceptable equipment performance and utilisation, therefore unproductive inefficient mining operations.

 


Client assigns Minalcon to carry out a Business Improvement initiative to evaluate, benchmark and recommend the appropriate steps to be taken to improve productivity and cost efficiency.

 
Minalcon is a Tacmin Group company – the key focus of the business is safe productive cost efficient mine operations through the improvement of:

Contract mining arrangements
Equipment performance and utilization
Equipment maintenance and inventory control
Mine plan, production and grade schedule
Mine operations management performance

Client – owner operator of open pit mining application experience unacceptable equipment performance and utilisation, therefore unproductive inefficient mining operations.
Client appoints Mantac Resources to manage operations and maintain equipment.
MANTAC is a specialist in open pit mine operations management, one of a kind Mine Engineering and Management Contractor that accepts operational and geological responsibility"

EQUIPMENT MAINTENANCE AND INVENTORY CONTROL
CASE STUDY SOLUTION BENEFITS

Client – owner operator of large open pit mining application experience unacceptable mechanical availabilities on primary mining equipment.


Client appoints a Tacmin Group company to assess equipment maintenance strategy. Tacmin carries out a maintenance assessment and Inventory analysis and recommend a suitable computerized maintenance management system
Tacmin expertise experience over multiple years of equipment maintenance improvement and management systems. Have advised numerous mining Clients and assisted with improvement of mechanical availabilities.


Client – owner operator of open pit mining applications intends to improve equipment maintenance and inventory control.  
Client appoints a Tacmin Group company to assess equipment maintenance strategy and outsource the maintenance aspect of mobile equipment to Mantac
Tacmin expertise experience over multiple years of equipment maintenance improvement and management systems.
Mantac offers outsourced operations management and equipment maintenance contracts.
Procurement and purchasing of spares, stores and stock control are carried out by MANTAC’s affiliated company MINALCON, such that MANTAC maintenance personnel can remain focussed on maintenance and repairs of equipment thereby reducing downtime for maximum equipment availability.  

MINE PLAN, PRODUCTION AND GRADE SCHEDULE
CASE STUDY SOLUTION BENEFITS

Client – owner of large open pit mining operation in remote African country, due to complex geological nature of orebody, experience inconsistent production schedule, grade and mine plan conformance.
Client appoints a Tacmin Group company due to their track record of mine plan and budget conformance achieved on outsourced engineering maintenance contracts. (LOM plans, reserve estimates, designs, medium & short term plans, etc)
Tacmin expertise compiles production and grade schedules inclusive of equipment allocations at realistic capable productions to validate practicality of Clients production schedules.

Mining Client in remote African country due to high turn-around of expats intends to improve on standard of mine engineering.  
Client appoints a Tacmin Group company to be responsible for mine engineering on an outsourced basis. (LOM plans, reserve estimates, designs, medium and short term plans, etc)

Mine plan and production schedule conformance achieved on outsourced Tacmin engineering maintenance contracts are far above industry average. (LOM plans, reserve estimates, designs, medium and short term plans, etc)


MINE OPERATIONS MANAGEMENT PERFORMANCE
CASE STUDY SOLUTION BENEFITS

Client about to start-up a new mine with adequate reserves to sustain multiple years of mining. Mining operations are put out to tender to weigh-up contract versus owner operator mining.
Amongst reputable Contract mining companies Client invites Mantac Resources to tender the project on an owner operator basis using the same enquiry provided for Contract mining.
Mantac Resources are 25% cheaper than the Mining Contractors.

Mark-up on contract mining applications up to 30%, as proved with multiple trade-off studies carried out by Tacmin.


Feasibility study finds owner operator mining more viable than contract mining on large open pit application. Client intends to purchase equipment and benefit from safe, cost efficient productive mining operations.
Client enters into a Maintenance and Repair Contract with the equipment supplier and appoints Mantac to provide mine operations personnel. Mantac Resources has a Contract miner style of management and accepts operational and geological risk.
Mantac Resources conduct safe cost efficient productive mining operations on the basis of outsourced management and maintenance in accordance with sound engineering principals.

Client employs owner operator mining methods; mining and maintenance costs
are unacceptable and budget conformance inconsistent.
Client appoints Mantac Resources to conduct a pre-feasibility to ascertain the true cost of mining. Mantac provides the Client with a detailed breakdown of mining costs, production schedules and budget forecasts. Client accepts pre-feasibility, continues with a feasibility study which includes taking over of operations personnel and maintenance of equipment. Following board approval Client finalises an operations management contract with Mantac inclusive of target incentives and employs Mantac who becomes responsible for mining and maintenance of equipment.
Mantac Resources take over Clients personnel on existing mining applications, maintenance of equipment and accepts operational and geological responsibility.

Outsourced engineering maintenance (LOM plans, reserve estimates, designs, medium and short term plans, etc) is offered by Tacmin and optional to a Mantac management contract.

Minalcon is a Tacmin Group company
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