Case Study: Yanacocha Mine

Newmont Yanacocha Mine

system to create a seamless equipment management

Customer Profile

the ERP, AMT is used to create life cycle maintenance

Newmonts Minera Yanacocha (Yanacocha Mine), is

continually updated with the latest infor mation from

one of the largest gold mines in South America

delivering 49% of Perus annual gold production. It is
also one of the highest at 4,100 meters above sea
level. The mine is located in Peruvian Andes, some 48
kilometers north of the city of Cajamarca. It consists
of five open pit mines, four leach pads and three gold
recovery plants with a forth plant coming on line in

solution. Leveraging the information already held in

projections for each asset. These projections are
work orders to produce a forecast of the assets life
cycle cost. In addition, the availability and required
labour, components and other resources required are
included in the forecast.
Graeme Elgie, Managing Director of iSolutions talks
about AMTs life cycle methodology.

2008. The mine produces around 1.6 million ounces

This methodology forms the basis of the

annually.

maintenance budget. By collecting maintenance

information against each maintenance task instead of
buried in work orders, you gain a much greater
understanding of the performance of individual
systems and components. This understanding helps
maintenance managers optimise the budget,
understand cost drivers and reduce the life cycle cost
of the asset.

To continually improve equipment productivity and

drive down the cost of maintenance, Newmont
needed a smarter approach to equipment
management.

Why AMT?
While Yanacocha utilised an ERP (Enterprise Resource
Planning) system to handle work order transactions,
inventory management and basic maintenance
planning, there was no easy way to produce and
analyse a first principles maintenance budget. The
previous method of trawling through reams of
transactional data in spreadsheets was cumbersome
and prone to error. To combat rising costs and
quickly understand changes to budget conditions, a
new approach was required.
To plug the systems gap, Yanacocha management
chose to implement iSolutions AMT Equipment
Management Tool. AMT is integrated with
Yanacochas ERP work order and daily planning
`

Phone +61 2 9966 9096

Email

sales@isipl.com

Web

www.isipl.com

Case Study: Yanacocha Mine

Once the base projections are built, a maintenance

the long term resource plans, assess the impact of

budget can be quickly and easily produced with

changes to the maintenance strategy as well as

greater accuracy than before. A process that may

determine the optimal life for assets.

have taken up to a week to complete can be done in

an hour with the ability to audit and validate of the
results.

By performing their jobs, completing work orders

and updating the maintenance plan, the mechanics
and planners are helping complete the budget
process and improve maintenance performance.
Without a tool like AMT it would be very difficult to
produce a maintenance budget as quickly or as
accurately. - Graeme Robinson, Mobile
Maintenance Superintendent
Once the budget is complete, there are a suite of
tools to analyse and improve maintenance
performance. One such tool is the compliance to plan
method. The compliance to plan method not only

These tools are built in to AMT and provide a

structured way to optimise maintenance expenditure
and improve productivity.
On the back of the success of AMT at Yanacocha,
Newmont have since deployed AMT in both the USA,
Australia and Indonesia.

Key Points
Improved maintenance budget
development cycle from weeks to days
Reduce life cycle cost of equipment by
identifying cost saving opportunities
Tight integration with ERP system to
provide seamless solution

looks at the maintenance expenditure, but also looks

at where the money was spent on a component by
component basis.

Contact iSolutions

Of course the budgeting module of AMT is only one

Telephone

+61 2 9966 9096

part of a well-rounded suite of maintenance

Email

sales@isipl.com

Web

www.isipl.com

management tools. The very task of setting up

detailed life cycle projections for assets allows users
to dynamically review the equipment strategy, review

About iSolutions
iSolutions is a leading provider of asset management

Our solutions are used across mining and construction

solutions to mining and construction companies.

assets to improve equipment uptime and long term

Our flagship software package, AMT, utilises the

productivity, and to reduce life cycle costs.

Framework methodology and is recognised as a market

With offices in Australia and South Africa, we have a

leader in maintenance management, life cycle costing,

proven track record managing large, global projects.

budgeting and maintenance strategy optimisation.

Our blue chip customers include; Caterpillar Dealers,

Established in 1997, we specialise in providing mining

Newmont Mining, Downer EDI Mining, Newcrest Mining,

companies, OEMs, dealers and contractors with the know-

Komatsu, Wesfarmers, Glencore and BHP Billiton.

how, processes, systems and training to achieve Asset

Management Excellence.