US coal mines most keen on life cycle management contracts

Mining equipment suppliers wanting to boost their business through the provision of ‘life cycle management’ contracts for equipment should target US coal companies, according to a recent survey of over 100 mine managers and decision-makers in the US and Canadian mining sectors.

“Life cycle management is a growing area for mining equipment suppliers that are facing reductions in new sales due to a global slump in commodity markets, said Clifford Smee, Lead Analyst at Timetric’s Mining Intelligence Centre.

According to the survey, comprehensive support structures, such as life cycle management, seem to be most popular among US coal companies, with 40% of coal respondents saying this was their preferred choice. In comparison, no iron ore respondent indicated a preference for life cycle management contracts.

After coal mines, the US precious metals industry is most keen on life cycle management contracts.

“These preferences were largely independent of company size; therefore, the choice to offer different contracts should be based on commodity type,” Timetric concluded in a press conference.

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/10072015/us-coal-mines-most-keen-on-life-cycle-management-contracts-2541/