Making Data-Driven Maintenance, Rebuild, and Replacement Decisions: Practical Life Cycle Costing for Mines

Short Course Abstract:

Mining companies face increasing pressure to maximize asset utilization, extend equipment life, and control escalating maintenance and capital costs—all while improving reliability and safety performance. Yet, one of the most persistent challenges in both surface and underground mining remains determining when it makes financial and operational sense to rebuild, replace, or retire critical assets. This half-day course provides a comprehensive and applied framework for Life Cycle Costing (LCC) and asset strategy optimization, equipping participants with the analytical tools and decision-making techniques needed to make evidence-based choices across the asset lifecycle.

Grounded in real-world data and industry-proven methodology, the course is built around Systemex’s LCC model, successfully applied at IAMGOLD’s Westwood Mine to optimize mobile equipment fleet decisions. Participants will explore how to balance capital expenditure (CAPEX) and operating expenditure (OPEX), apply Net Present Value (NPV) principles, and evaluate the long-term financial implications of maintenance, rebuild, and replacement options for both mobile and fixed assets.

The session begins with an overview of LCC fundamentals—defining cost categories, establishing analysis boundaries, and identifying key financial and technical inputs. Participants will then work through a detailed case study from the IAMGOLD Westwood fleet optimization project, illustrating how LCC modeling informed decisions that improved reliability, reduced downtime, and achieved measurable cost savings. The second half of the course features a guided, hands-on exercise where participants will construct a simplified LCC model in Microsoft Excel for a representative asset such as a haul truck or crusher. This exercise demonstrates how to integrate operational data, maintenance history, and financial parameters into a clear and defensible cost model that supports management-level decision-making.

By the end of the course, attendees will have a solid understanding of how to:

• Evaluate when to rebuild, replace, or extend asset life using quantitative cost and performance data.
• Build and customize a simple yet powerful LCC model to support internal business cases.
• Use financial language and metrics (NPV, ROI, cost per operating hour) to justify maintenance strategies to non-technical stakeholders.
• Align maintenance and capital planning decisions with overall business objectives and risk profiles.

This course is designed for maintenance and reliability leaders, planners, engineers, and financial analysts who are responsible for managing the performance and profitability of critical mining assets. With its applied learning approach and proven industry examples, the session bridges the gap between engineering intuition and financial rigor—helping organizations move from reactive decision-making to a structured, data-driven asset management strategy.

Course outline:

• LCC fundamentals: CAPEX vs OPEX balance, NPV, cost modeling
• Case study: IAMGOLD Westwood fleet optimization
• Practical exercise: Build an LCC model for a haul truck or crusher

 Short Course Objectives:

• Evaluate when to rebuild, replace, or extend asset life
• Build/Review a simple LCC model in Excel
• Communicate financial justification for maintenance strategies

At the end of this half-day session, participants will be able to:

• Understand and Apply LCC Principles Comprehend the fundamentals of Life Cycle Costing (LCC), including CAPEX vs. OPEX balance, Net Present Value (NPV), discounting, and total cost of ownership concepts as applied to mining equipment and infrastructure.
• Quantify Maintenance, Rebuild, and Replacement Trade-offs Evaluate the economic and operational implications of rebuild, replace, and life-extension options using structured financial modeling and risk-based decision frameworks.
• Develop and Use Practical LCC Tools Build a simple yet robust LCC model in Microsoft Excel for a haul truck, crusher, or similar asset, integrating both financial and reliability data to simulate real-world asset scenarios.
• Interpret and Communicate Results to Decision-Makers Translate technical maintenance and reliability insights into clear, financially grounded recommendations for capital planning and budgeting discussions with management teams.
• Apply a Proven Methodology to Real Mining Contexts Draw lessons from Systemex’s LCC implementation at IAMGOLD’s Westwood Mine and apply best practices in maintenance strategy optimization to improve asset reliability, cost performance, and lifecycle value.
• Bridge the Gap Between Engineering and Finance Strengthen collaboration between maintenance, operations, and finance teams by using a common language and set of decision metrics, promoting a data-driven approach to asset management.

Target Audience:
Maintenance leaders, planners, reliability engineers, financial analysts.