Asiam Mining Purchasing Trends and Intensions 2015

This report provides a detailed analysis of purchasing methods and expected expenditures for Asian mines across plant and heavy equipment; parts and components; explosives, blasting materials and chemicals; and maintenance services. There is a focus on procurement methods and expenditure analysis is broken down into four areas. The analysis is based on Timetric’s extensive survey of 115 mine managers, procurement managers and other key decision-makers.

Areas of analysis include:-

• Current methods for acquiring equipment, with a review of outright purchasing, rental, leasing and other types of financing arrangement.
• Future trends in expenditure and expectations for increased or decreased spend in four areas: plant and heavy equipment, equipment parts and components, explosives materials, and maintenance services.
• An analysis of future changes to the number of supplier relationships, and whether respondents expect greater or fewer supplier relationships over the next 12 months.

Summary:-

Overall trends in the data revealed:

• Outright purchase is the most common purchasing method.
• Asian miners are optimistic about future expenditure.
• Challenges in sourcing products are primarily related to supplier attributes and capabilities.
• Asian miners are increasing their levels of procurement centralization.

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Scope:-

The survey is based on responses from 115 senior managers and decision makers at operating Asian mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents came from seven different countries: India, Indonesia, the Philippines, Pakistan, Vietnam, Mongolia and Thailand. 

Key highlights:-

• Outright purchase is the most common purchasing method for mining equipment, used by 52% of respondents.
• Asian miners are optimistic about future expenditure, with the majority of respondents expecting expenditure to increase across all four categories of plant, equipment, consumables and services investigated.
• Some 67% of respondents identified that their biggest challenges when sourcing products were factors related to supplier capabilities, such as availability of parts and on-time delivery.

Reasons to buy:-

• Compare the methods Asian miners use to acquire equipment, and how this is expected to change.
• Plan ahead based on general expectations within the Asian mining industry for future expenditure, and how this varies by segment, such as mine type, commodity and company size.
• Understand how different customer segments in Asian mining plan to rationalise or extend their supplier networks.

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Complete Report Few Points from Table of Contents:

1 Executive Summary

2 Current Purchasing Preferences
2.1 Purchasing Methods for Heavy Mobile Equipment
2.2 Rental Agreements

3 Future Spending Predictions
3.1 Expected Changes in Expenditure
3.2 Spending Across All Categories to Increase
3.3 Anticipated Changes to the Number of Supplier Relationships

4 Challenges In Sourcing The Right Products

5 Centralisation and Preferred Suppliers
5.1 Changes in Centralization
5.2 Preferred Supplier Arrangements
5.3 Preference for a Dominant Single Supplier

6 Conclusion

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