HOHANK INTERNATIONAL GEN LATAM

Mine Power Pit Avoidance Manual / Question 07

Just looking at the purchase price of generators does not include fuel consumption. Why is power generation in remote mining areas becoming more and more expensive?

Remote mining areas have long-term self-generated power. The real big factor is often not the first purchase price, but the subsequent diesel, transportation, maintenance, breakdown and downtime costs. If you only look at the purchase price of the main unit when purchasing, and do not take into account load changes, fuel consumption and supply conditions, the power generation will become more expensive as it is used.

Applicable stage

Suitable for long-term off-grid self-power generation, production expansion in remote mining areas, old machine renewal and procurement plan comparison and selection

1. On-site performance

What problems will the mining area see?

  • The main engine quoted the lowest price when purchasing, but after several months of operation, the diesel cost and supply pressure were significantly higher than expected.
  • The mining area is far from the supply point, and it is not easy for oil trucks to come. In addition to the unit price of diesel, there are transportation, waiting and guarding costs.
  • The production load is high during the day and low at night, but the generator has been running at low load for a long time, and the fuel consumption has not decreased with the production.
  • Unit failures, maintenance and shutdowns have increased, and on-site machines have been temporarily rented or refueled to ensure production, making it increasingly difficult to control costs.

2. Risk causes

The reasons behind the power layout

Many purchases only compare the purchase price of the generator, but do not put the daily operating hours, load fluctuations, diesel transportation distance, replenishment frequency and maintenance cycle into the same account.

Diesel in remote mining areas is not calculated solely based on oil prices. Mountain roads, rainy seasons, temporary roads, vehicle dispatching, oil management and on-site duty will all increase the actual cost of each liter of oil.

Unreasonable unit matching will also increase fuel consumption. Long-term low load, frequent starts and stops, and unclear combination of large and small units will cause the purchase money saved at the beginning to be spent slowly back during operation.

3. Scope of influence

Production suspension, fuel consumption, maintenance, safety and environmental protection will all be magnified

  • The cost of power generation continues to rise, and mine owners are seeing increasing burdens on diesel consumption, freight and temporary supplies, rather than stabilizing output.
  • If maintenance support for cheap units is weak, you may spend more on maintenance parts, troubleshooting, downtime waiting, and replacement units later.
  • Inaccurate fuel consumption budget will affect cash flow, especially in the trial production and expansion stages, when output has not yet stabilized and fuel expenses have already increased.
  • The scene attributed the problem to high oil prices, but did not find that load matching, operating methods and unit combinations themselves were also increasing costs.

4. How to avoid before construction

What do mine owners need to confirm in advance?

  • Before purchasing, don’t just ask how much the host costs, but also calculate the daily operating hours, expected load curve, diesel consumption, transportation distance, replenishment frequency and maintenance cycle.
  • Long-term self-power mining areas should compare host prices, fuel consumption, maintenance, spare parts, service response and downtime risks based on total operating cost ratio plans.
  • Consider the unit combination according to the production rhythm to avoid a large machine with low load for a long time and a small unit with a high load for a long time.
  • Incorporate fuel consumption records, operation records and maintenance plans into production management, detect abnormal fuel consumption early, and do not wait until costs are out of control before checking again.

5. On-site confirmation information

The closer the information is to the scene, the faster the plan will be implemented

  • Plan daily operating hours, production shifts, major equipment lists, and day and night load changes.
  • The distance from the mining area to the diesel replenishment point, road conditions, the impact of the rainy season and the organization of each replenishment.
  • Existing or planned generator models, capacity, number of units, parallel mode and historical fuel consumption records.
  • Existing cost recording or estimating methods for diesel procurement, transportation, on-site storage, maintenance parts and downtime.

Engineer contact

Leave your contact information and let engineers help determine power supply risks

Please leave your contact information and provide the location of the mining area, main equipment, existing power supply methods, tripping or shutdown performance. If the issue involves expansion, drainage, tailings, or long-term self-generation, please also indicate the planned commissioning time, daily operating hours, ATS/parallel requirements, and spare parts maintenance conditions.

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