Optimizing procurement in mining through flexible rental solutions

Mining is entering a new era, and as it moves from the previous boom into an age of optimising productivity, the operational landscape is transforming. High commodity prices in previous years meant that large capital investments were not an issue for operators. However, these investments concealed growing deficiencies in mine site effectiveness.

According to new research, mining operations around the world are 28 percent less efficient today than they were ten years ago. Data from McKinsey’s MineLens Productivity Index (MPI)[1] highlights the mining industry’s level of efficiency is declining globally. This trend is evident across commodities and does not differentiate between companies.

McKinsey attributes the decline to the former demand supercycle which saw the production of certain commodities rise by 50 percent over the past decade.

Higher prices and improved outputs meant miners lost sight of productivity goals. As ore demand increased, capital expenditure and operating expenses started to grow at rates significantly higher than increases in production volume.

With the decline in commodity prices, miners are looking at ways to save money while pushing their operations to do more. With limited budgets for equipment purchases, TechRentals is helping operators find a solution.

In a constantly changing environment, the need to adapt equipment procurement to the goals of the business has become essential for survival in a highly competitive market.

Thanks to TechRentals and its flexible rental options, you can procure the equipment you need, when it’s needed, for as long as you need it.

To gain a deeper understanding of the total costs of ownership, and efficiency benefits of hiring as opposed to outright purchase, click here to download the free whitepaper by TechRentals.

[1] Productivity in mining operations: Reversing the downward trend, McKinsey MineLens Report http://www.mckinsey.com/insights/energy_resources_materials/productivity_in_mining_operations_reversing_the_downward_trend

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