A Brazilian iron ore producer was looking to rapidly scale up production at its primary crushing plant without having to make costly capital expenditures (Capex). The Metso Life Cycle Services (LCS) team was ready to meet the customer’s requirements and mobilize the overall operation which included productive equipment assets coupled with an operation and maintenance team as well as auxiliary resources. The team was able to meet the customer’s high production targets, taking only 30 days to fully mobilize the setup. A major challenge for Metso was arranging the mobilization in a very short time period while achieving high equipment availability and production levels from the very first day.
Quality equipment with a Cost per Ton plan
Under the LCS agreement, the production of 180 thousand tons per month of primary crushed material and classification of an additional 180 thousand tons/month was guaranteed with three particle sizes: rockfill blocks, hand-sized stones and lump-sized stones. This was in addition to the possibility of producing iron ore fines that could feed the mining company's own plant. Rather than pay upfront for the crushing equipment, a cost per ton concept was agreed to, with the miner paying a fixed amount for each ton of production. The determined cost per ton includes asset depreciation, equipment operation and maintenance as well as spare and wear parts. The initial Metso team involved 16 dedicated personnel, but with the addition of the screening unit this has grown to 22 team members which includes operators, service technicians and planners.
“We have been serving the customer since June 2022 with Lokotrack equipment, which is mobile and moves on tracks”, says Tiago Batalha, LCS Contract Manager at Metso. “The versatile machines can be activated quickly in the field and, under the crushing and screening as a service agreement, the expenditures fall on the miner’s operations budget”.