Title: Economic lifetime of a drilling machine: a case study on mining industry

Authors: Hussan Al-Chalabi; Jan Lundberg; Adam Jonsson

Addresses: Division of Operation, Maintenance and Acoustics, Luleå University of Technology, SE-971 87 Lulea, Sweden; Mechanical engineering Department, College of Engineering, University of Mosul, 41002 Mosul, Iraq ' Division of Operation, Maintenance and Acoustics, Luleå University of Technology, SE-971 87 Lulea, Sweden ' Division of Mathematic Science, Luleå University of Technology, SE-971 87 Lulea, Sweden

Abstract: Underground mines use many different types of machinery during the drift mining processes of drilling, charging, blasting, loading, scaling and bolting. Drilling machines play a critical role in the mineral extraction process and thus are important economically. However, as the machines age, their efficiency and effectiveness decrease, negatively affecting productivity and profitability and increasing total cost. Hence, the economic replacement lifetime of the machine is a key performance indicator. This paper introduces an optimisation model that gives the optimal lifetime for a drilling machine. A case study has been done at an underground Swedish mine to identify the economic replacement time of a drilling machine. It considers the purchase price, maintenance and operation costs, and the machine's second-hand value. Findings show that the economic replacement lifetime of a drilling machine in this mine is 96 months. The proposed model can be used for other underground mining machines.

Keywords: drilling machines; economic replacement time; optimisation modelling; asset management; equipment lifetime; case study; mining industry; underground mines; machinery lifetime; drift mining processes; mineral extraction; key performance indicators; KPIs; Sweden; purchase price; maintenance costs; operation costs; second-hand value.

DOI: 10.1504/IJSEAM.2015.070624

International Journal of Strategic Engineering Asset Management, 2015 Vol.2 No.2, pp.177 - 189

Available online: 14 Jul 2015 *

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