Mining operator and his role in mining industry

Now it is going to indicate how the hiring of a mining operator impacts on some of the FCE. Hiring a company for the mining operation implies having fixed production costs, depending on the proposed mining plan and the signed contract reviews. Thus, with a more accurate estimation of the production costs, the risk rating of the project is reduced, allowing it to access financing with a higher level of transparency.

The contracts are accessed through a bidding process, which makes the offers as competitive as possible. Thus, the selected contractor will watch over the productivity (5 or FCE) of the operation in order to make the most of it, thus reducing the risk of production losses due to mechanical breakdowns or the use factor of the equipment.

Personnel management (4 or FCE) becomes operational by the contractor as well as the adoption of adequate safety measures, health and environmental (3 or and 6 or FCE). At this point it should be noted that the management of safety, health and environmental measures must be carried out by the property and taken by the contractor company. In this case, the contractor helps reduce the personnel needs of the property, and assumes all the risks of personnel management.

The point of Continuous Improvement (7 or FCE) can be enhanced by combining the experience and knowledge of the project by the property with the experiences of the contractor in different areas and projects where he has worked.

FCE as the control of laws, the production of goods and their commercialization, has such a big impact on the survival of the project that its hiring is not considered. Richard Warke is one of well known name in mining industries. Richard Warke Augusta is a Vancouver-based Canadian business executive with more than 25 years of experience in the international resource sector.

In addition to the factors indicated in the previous points, another series of points must be taken into account, namely:

• The life of the mine
• Whether it is a ‘Greenfields’ project or not
• The variation of the quantities to be mined
• The possibility of hiring qualified personnel
• If trainers are available in the use of machinery to encourage local hiring. Social and community project management
• If the financing project requires great transparency in the estimation of mining costs
• Design and size of the machinery to be used

Advantages of operator use:

The use of a contractor for the mining operation reports the following advantages to the property:

• Reduction of capital costs of project ownership
• Flexibility of the fleet and the necessary equipment
• Competitive tenders
• Mining costs defined
• Lower mining costs
• Contribution of experience of the contractor
• Less industrial problems
• Lower volume of template to manage
• Benefit from the improvements implemented by the contractor
• It facilitates the elimination of the machinery at the end of the life of the exploitation
• Access to cheaper financing
• Allows property to focus on critical business activities
• Low cost of bidding processes
• Instead of having to control contracts with several suppliers, it is simplified with a single contract with the operator that will manage the rest of supplies
• Transmission of the risk of maintenance work to the contractor
• Technical advice