As the demand for mineral production gets back on track, mining companies must meet this demand while continuing to cut operational expenditures.
Key fact: 2022 is expected to see a continued CAPEX reduction from around US$70m to US$60m
CAPEX management in mining operations is complex, but the industry has successfully curbed this challenge for many years.
This has mostly been accomplished through the adoption of advanced technologies that automate mining equipment, enhance asset productivity, optimise supply chain management, and, as result of all this, significantly reduce OPEX.
CAPEX management will be especially pertinent to the production of rare earth elements, which is excelling at a faster rate than fossil fuels due to the rise in high tech devices.
Key fact: The global production of rare earth elements increased by 9% in 2020
Reliability, Availability and Maintainability (RAM) analyses have and will be imperative to mining companies’ future CAPEX management by combining precise estimates of expenditures with incoming revenue to give an accurate financial forecast.
Keeps OPEX down
Assesses investment risks
Optimises operational efficiency
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