Case Study

Understanding the Total Cost of Ownership - Capital Budgeting Analysis for Mobile Fleets

Understanding the Total Cost of Ownership - Capital Budgeting Analysis for Mobile Fleets

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Case study Understanding the Total Cost of Ownership - Capital Budgeting Analysis for Mobile Fleets Ausenco Rylson was engaged to analyse the whole-of-life costs for the majority of MMG Century Mine’s mobile fl eet and recommend a replacement strategy for each asset in order to minimise Capital Expenditure prior to end of mine life. Economic Life models were developed for CAT Dozers, Komatsu Haul Trucks, Liebherr Shovels, and Komatsu Excavators and Wheel loaders. Ausenco Rylson determined the optimum economic life of each mobile asset for MMG at Century Mine. Ausenco Rylson’s methodology is based on widely accepted capital decision making techniques and models all costs through the asset lifecycle. Lifecycle costs include the costs to acquire, install, commission, o

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