[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-46512-en":3,"doc-seo-46512-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},46512,1099513958762,"Logic","https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1782109480056885918",8,"Research & Report","Contract versus owner mining – pit mining practice: an update on Australasian open pit mining","Examines the shift in large-scale Australasian open pit mining from contract mining toward owner-controlled and operated practices. Explains the incentive for owners to assume more mining risk to avoid paying a contractor’s profit margin, while addressing why owner and contractor incentives may conflict under continuous improvement programs. Discusses when contract mining still remains attractive, such as variable waste movement, flexible fleet sizing, financing constraints, and the need for balanced risk management. Highlights pitfalls tied to equipment variability, manpower management, skills, flexibility, and safety exposure.","| Contract versus owner mining – pit mining practice\u003Cbr>John S. F. Dunlop | an update on Australasian open |\n| --- | --- |\n| With the advent of the resources’ boom in the late | suppliers. Group purchasing has also had some influence |\n| 1960s, most of the larger scale resources projects in | for project operators. |\n| Australasia were commissioned on an ‘owner-mining’ | For many mine owners, the optimal risk management |\n| basis, where the mine owners owned and operated the | profile involves a practical off-setting of the assumption |\n| primary mining equipment. Then, in the 1980s with the | of mining risk on the one hand, against the removal of |\n| arrival of the gold mining boom in Western Australia | litigation risk and potentially reduced operating costs |\n| and elsewhere, a change occurred – most of the mining | on the other. Potential pitfalls may arise where |\n| activities were carried out on a contract mining basis. | equipment size and type requirements vary with time or |\n| Over recent years, however, there has been a marked | where manpower management, mining flexibility, job |\n| trend amongst larger Australasian open pit mining | skills or safety exposure factors are relevant. |\n| operations back towards owner-controlled and operated | These issues are commented on in the context of |\n| mining operations. The reasons for this are many and | some well-known examples, and an update is provided |\n| are addressed in the paper, but centre on the concept of | on contract mining versus owner operation in large scale |\n| the owner being prepared to assume more of the mining | Australasian open pit mining generally. |\n| risk in exchange for the advantage of not having to paya contractor’s profit margin.\u003Cbr>Where mining contracts are entered into, the older‘schedule of rates’ format is being replaced with less | John S. F. Dunlop is Principal Consultant with John S Dunlop & Associates Pty Ltd, 43 Reserve Street Bicton, WA 6157, Australia (E-mail: jsdunlop@compuserve.com). |\n| adversarial and more entrepreneurial contract alternatives involving operating cost and risk sharing ina spirit of ‘fair dealing’. Leasing and maintenance issues have also been influenced in recent years by the advent | © 2003 IoM Communications Ltd. Published by Maney for the Institute of Materials, Minerals and Mining in association with AusIMM. Manuscript received 9 September 2002; accepted in final form 22 September 2003. |\n| of more flexible contract arrangements with equipment | Keywords: Contract versus owner mining, open pit mining |\n\nINTRODUCTION  \nOwner mining is the now widely accepted term for the mining situation where the mine owner directly controls and has responsibility for the mining activities at the mine. The owner might be a joint venture manager and the mining fleet may be leased rather than owned outright, but the important feature is that a mining contractor is not used.  \nOver recent years, there has been a marked trend amongst larger Australasian open pit mining operations back towards owner-controlled and operated mining operations, as reported by Bell.4 Why is this the case? The answer appears to lie in the concept of the owner being prepared to assume more of the mining risk in exchange for the advantage of not having to pay a contractor’s profit margin, as suggested by Shipp25 and Ready.23  \nWhere continuous improvement programmes are in place, a point is theoretically reached where an owner and a contractor may have a conflict of interest when it comes to the profit margin, day works and ‘extras’, when seen from the point of view of ongoing continuous improvement.  \nNotwithstanding that, contract mining may continue to have appeal in certain situations. For example, where the waste movement profile is necessarily variable, and the primary mining fleet sizing needs to be flexible, a mining contract might be more appropriate, as reported at Sunrise Dam.1 In such situations, industry efficiency and productivity benchmarking","cbCain4fBPOTJtoR","https://ap.wps.com/l/cbCain4fBPOTJtoR","pdf",112383,1,16,"English","en",105,"# Introduction\n## Owner mining vs contract mining trend\n## Risk management and potential pitfalls\n# Alternative operating options\n## Unit operations and contracting scope\n## Evaluation factors for contracting decisions","[{\"question\":\"What does “owner mining” mean in the context of open pit operations?\",\"answer\":\"Owner mining refers to a situation where the mine owner directly controls and is responsible for mining activities, without using a mining contractor. The owner may still use joint venture arrangements and leased equipment, but control of the work remains with the owner.\"},{\"question\":\"Why have larger Australasian open pit operations shifted back toward owner-controlled mining?\",\"answer\":\"The shift is linked to owners being prepared to assume more of the mining risk in exchange for avoiding a contractor’s profit margin. Industry accounts also connect the change to how incentives interact with continuous improvement programs.\"},{\"question\":\"When can contract mining still be a better choice?\",\"answer\":\"Contract mining may be more appropriate when waste movement profiles are variable, primary mining fleet sizing must stay flexible, or when the project location creates financing constraints that require substantial financial guarantees. Benchmarking and standards can help manage performance in such contract settings.\"}]",1783544898,40,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"contract-versus-owner-mining-pit-mining-practice-an-update-on-australasian-open-pit-mining","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/contract-versus-owner-mining-pit-mining-practice-an-update-on-australasian-open-pit-mining/46512/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-14","2026-07-08",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What does “owner mining” mean in the context of open pit operations?","Question",{"text":75,"@type":76},"Owner mining refers to a situation where the mine owner directly controls and is responsible for mining activities, without using a mining contractor. The owner may still use joint venture arrangements and leased equipment, but control of the work remains with the owner.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Why have larger Australasian open pit operations shifted back toward owner-controlled mining?",{"text":80,"@type":76},"The shift is linked to owners being prepared to assume more of the mining risk in exchange for avoiding a contractor’s profit margin. Industry accounts also connect the change to how incentives interact with continuous improvement programs.",{"name":82,"@type":73,"acceptedAnswer":83},"When can contract mining still be a better choice?",{"text":84,"@type":76},"Contract mining may be more appropriate when waste movement profiles are variable, primary mining fleet sizing must stay flexible, or when the project location creates financing constraints that require substantial financial guarantees. 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