Another initiative being explored to cut costs is in the mine’s blasting practices. Explosives currently make up around 7% of running costs. Blasting is an integral aspect of the mining methodology, particularly through-seam blasting for the break-up of several overlying dipping seams. In an attempt to lower costs by reducing the powder factor, Thiess has been trialling Davey Bickford electronic detonators at Mt Owen for more than a year.
These electronic detonators were understood to be one of the reasons long-time explosives supplier Orica was recently replaced with Thiess subsidiary, Quantum Explosives. Workcover approval for the use of Quantum’s electronic detonators in NSW has been granted and by March/April, Quantum will be using the trialled Davey Bickford electronic detonators. Further experimentation with through-seam blasting was still necessary because of the complexity of the geology.
“When you’re through-seam blasting you have to make a trade-off between reducing powder factor or damaging the coal seam,” Monaci said.
Robinson said the entry of Quantum was good for competition in an industry once dominated by a handful of players. “We decided to give Quantum a go, and see what they could do,” he said.
Should Mt Owen’s expansion go ahead, unit cost reduction will inevitably remain a management obsession, as it is today.
