Background: Pit Depth Meets Cost Constraints
The operation’s open pit had reached a stage where contract mining unit rates were increasing disproportionately with depth—driven by longer hauls, rising fuel costs, increased wear, and escalating contractor margins. Under the PEA, underground development was scheduled to begin in Year 3, ramping up over two years to full production by Year 5.
However, internal teams recognised that beneath the planned final pit shell lay significant mineralisation, which could potentially be extracted economically—if a cost-controlled owner-mining approach could be implemented.
Objective: Reframe the Underground Transition with Real Owner Data
The client partnered with TacminMadini’s BlueForge division to determine whether:
- Open-pit mining could be profitably extended beyond the planned depth;
- Underground capital development could be delayed without deferring production;
- Fleet strategy could be aligned to deliver these outcomes based on actual, in-house cost performance.
Unlike generic contractor vs. owner trade-off models, this study was rooted in real-world data from the client's owner-operated fleet.
The BlueForge Study: Turning Insight into Structured Strategy
Using our Life-of-Mine Equipment Strategy Study framework, BlueForge undertook a three-phase review:
Fleet Performance Benchmarking
- Assessed actual maintenance, utilisation, and operating cost data from the client's owned fleet.
- Evaluated depth-related cost drivers, including fuel burn, tyre consumption, and productivity shifts.
Owner vs. Contractor Trade-off Modelling
- Modelled per-bench cost differences based on internal fleet data versus contractor escalation rates.
- Analysed haulage optimisation, pit geometry, and scheduling alternatives under owner mining control.
Strategic Alignment with Mine Plan
- Integrated results into the LoMP, aligning production, fleet readiness, and financial triggers for underground transition.
- Produced a Fleet Renewal and Rebuild Roadmap, phased against operational and financial objectives.
Key Outcomes: Deeper Mining Without Deeper Spend
The study revealed that, with strategic use of its own fleet:
✅ Open-pit operations could be economically extended by up to 18 months.
✅ Underground development could be deferred, preserving capital for later-stage value.
✅ True owner mining unit costs remained stable, even at increased depth—avoiding contractor escalation.
✅ Over US$25–30M in immediate capital was deferred, without affecting throughput or gold output.
✅ More than 1.2 Mt of additional ore was economically recovered that would otherwise have been excluded under contractor cost assumptions.
These results were executed in real-time using Tacmin.ai, our digital control platform, ensuring budget alignment, rebuild timing, and operational decisions remained connected and accountable.
Strategic Shift: Owner Mining as a Tactical Lever
This wasn’t just about lowering cost—it was about taking control. With BlueForge, the client was able to:
- Optimise pit economics without new fleet acquisition, by redeploying and condition-managing existing assets.
- Avoid premature capital commitment to underground infrastructure, reducing financial exposure during market uncertainty.
- Synchronise operations, finance, and planning under one structured roadmap—turning a theoretical trade-off into an executable strategy.
The BlueForge Difference: Execution, Not Estimation
What sets this approach apart is that it’s built on actual performance data, owned equipment, and practical execution plans—not idealised models. The client didn’t change contractors, overhaul systems, or restructure departments. They simply applied structure, insight, and discipline to what they already owned.
Is Your Operation Ready to Reclaim Pit Value?
If your site is being pulled toward underground development purely by contractor unit costs—or if deeper open-pit ore is being left behind due to assumed economics—BlueForge can help you reframe the strategy.
With a data-backed, execution-ready approach to owner mining, we help clients defer capital, extend mine life, and recover more value—with less risk.
📩 Sarel Blaauw
✉️ sblaauw@tacminmadini.com.au
🔗 BlueForge | TacminMadini
You already own the fleet. Now own the outcome.
With BlueForge, deeper doesn’t mean more expensive—it means more deliberate.
Disclaimer:
While this case study reflects actual outcomes from a real-world mining operation, all project names, locations, and proprietary data have been withheld for confidentiality.
TacminMadini, through its BlueForge division, now offers their clients full support for transitioning into owner mining models—including fleet strategy, operational readiness, and ongoing equipment management and maintenance integration. This service can be deployed in parallel with contract mining operations or as a structured path toward full owner mining capability, tailored to site-specific conditions and objectives.
