Proven Results, Real Impact

Challenge

Rio Mining operated a mixed fleet of 45 haul trucks (Caterpillar 793F and Komatsu 930E) with escalating maintenance costs and declining availability. The mine faced:

• Average truck age of 12 years with 35,000+ operating hours
• Mechanical availability dropped from 87% to 71% over 3 years
• Maintenance costs increased 45% year-over-year
• Production targets missed by 12% due to equipment downtime
• Fuel consumption 15% above industry benchmarks

Our Approach

Kavian deployed a 4-person team for a comprehensive 8-week analysis:

We analyzed maintenance records, fuel consumption, production data, and conducted time studies. Our proprietary AI model predicted optimal replacement timing for each unit.

Solution Implemented

• Phase 1 (Year 1): Replace 12 oldest trucks with new Caterpillar 794 AC units
• Phase 2 (Year 2): Major component rebuilds on 18 mid-life trucks
• Phase 3 (Year 3): Retire remaining 15 oldest units, standardize on Cat 794 platform
• Implemented predictive maintenance program using telematics data
• Negotiated fleet purchase agreement saving $3.2M vs. list pricing
• Established parts inventory optimization reducing carrying costs by $450K

Results & Impact

After 18 months of implementation:

• $2.4M annual cost savings (18% reduction in total fleet operating costs)
• Fleet mechanical availability increased from 71% to 89%
• Maintenance costs per operating hour reduced by 32%
• Fuel consumption improved 12% through newer, more efficient engines
• Production exceeded targets by 8% due to improved availability
• Safety incidents reduced 35% with newer equipment and better training

Challenge

Aurelia Resources needed a bankable feasibility study to secure financing for their greenfield gold project in Western Australia. Previous consultant estimates varied by 35%, creating uncertainty for investors.

Our Solution

12-week comprehensive study following AACE Class 2 standards (±10-15% accuracy):

• Detailed equipment selection for crushing, grinding, CIL circuit, and tailings
• CAPEX estimate: $156M (vs. previous $178M estimate)
• OPEX estimate: $42/tonne processed with detailed breakdown
• NPV analysis showing 18.5% IRR at $1,800/oz gold price
• Sensitivity analysis on key variables (gold price, recovery, throughput)

Results

• Secured $180M project financing from consortium of banks
• Reduced CAPEX by $22M through optimized equipment selection
• Project construction completed on time and 3% under budget
• Actual OPEX within 8% of our estimate after first year

Challenge

Andean Copper needed to replace aging crushing equipment but received a single quote of $35.5M from their incumbent supplier. They sought competitive alternatives without compromising quality or delivery.

Our Approach

• Developed detailed technical specifications and performance requirements
• Invited bids from 5 qualified manufacturers (Metso, FLSmidth, Sandvik, ThyssenKrupp, CITIC)
• Conducted technical evaluation scoring system (40% technical, 30% commercial, 30% delivery)
• Negotiated terms including performance guarantees and payment schedules
• Managed logistics, customs clearance, and installation supervision

Results

• Final contract: $27.0M with FLSmidth (24% savings vs. initial quote)
• Equipment delivered on schedule with performance guarantees met
• Crusher throughput 8% above nameplate capacity in first year
• Established framework for future competitive procurement