ABSTRACT
Where direct mining costs are a significant proportion of total operating costs, a mine has a life of more than five years, there is the ability to maintain a reasonably constant mining rate and there are existing or available experienced mining personnel then owner mining should be considered along with the option of contract mining. Contract mining in Australian mines has become a significant, established and efficient practice over the last decade. Contractors offer mine owners a number of advantages for projects that have short mine lives, widely varying mining rates, limited company borrowing or credit capacity, complicated joint venture arrangements, a lack of mining experience, a policy of out-sourcing or a rigid labour market. This paper is based on the recent evaluation of owner versus contract mining for two large Australian open pit mines. The two options are compared by discussing the main corporate, operational, cost and risk issues.
