EM Tyre Supply Shortage – How it is Affecting us

EM Tyre Supply Shortage –
How it is Affecting us
Tony Cutler
AusIMM Open Pit Operators’ Conference
18-19 September 2012
Disclaimer:
Otraco Technical Publications are produced by OTRACO International Pty Ltd. They are intended to provide general information and general advice on
topics related to earthmover tyres and rims and are current at the time of publication. The contents do not constitute specific advice and should not be
relied upon as such. Formal advice should be sought in particular matters.
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Global Tyre Industry - Categories
EM Tyre Market
Large/Ultraclass EM Tyres
Commodity Prices
(what makes mining go ‘round)
Commodity Price as Tyre Demand Indicator
EM Tyre Supply vs. Demand
EM Tyre Manufacturers – “Big-3”
•
Michelin
–
–
•
Bridgestone-Firestone
–
–
•
to 63”
radial only
to 63”
mainly radial, some bias ply (eg. big FEL)
Goodyear
–
–
to 63” (currently trialling)
mainly radial, some bias ply
EM Tyre Manufacturers – Tier 2
•
Yokohama & Toyo
–
–
•
to 57”
radials in small sizes, bias ply for large
Belshina
–
–
•
to 57”;
mainly bias ply, radials being developed
Titan
–
–
to 63”
nylon radial casing
EM Tyre Manufacturers – Tier 3
•
Tier 3
–
–
–
Chinese, 1 Eastern Europe, Indians entering
Many to 57”, some plan 63”
Mainly bias ply, radials being developed
•
Guilin / Torch
•
Triangle
•
Shifeng
•
Haian/Luan
•
Taishan
•
Shandong Boto
•
Others
Tyre Life
•
Actual vs Expectation
•
57” & larger (190t+)
–
–
–
•
Big-3:
Tier 2:
Tier 3:
100
50-75
20-50
51” & smaller (to 150t)
–
–
–
Big-3:
Tier 2:
Tier 3:
100
80-100
50-75
Big-footing Trucks
Truck
class
Examples
Standard
Tyre size
Optional Tyre
size
Ease of
Upgrade
Benefit
180t
Cat789C, Kom730,
37.00R57
40.00R57
Very easy
Great
LiebherrT252
140t
Cat785
33.00R51
36.00R51
Difficult
Great
90t
Cat777
27.00R49
30.00R51
Difficult
Great
220t
Cat793F
40.00R57
50/80R57
Medium
Necessary
220t
MT4400AC
50/80R57
40.00R57
Very easy
Negative
295t
Kom930E-II
53/80R63
55(56)/80R63
Unsure
Good
Usage Side Strategies
L o w b en efit
H ig h b en efit
H igh
cost
M in e o p timisatio n X
H igh
cost
(eg . close or d ef er h ig h cost m in es or m in in g areas
& elim in ate or d ef er lon g or h ig h sp eed h au ls)
P u rch ase e xtra cle an u p mach in e s X
X R e tre ad s (> 2700x49 siz e ) o n h au ltru cks
F le e t o p timisatio n X
(eg . m oth b all h au ltru ck f leets th at are n ot tire ef f ic ien t)
M
A
I
N
X B ias p ly tire s (if n o t match e d to ap p licatio n )
H au lro ad stab ilisatio n X
(in clu d es d u st s u p p res sion )
X R e tre ad s (to 2700x49 siz e ) o n h au ltru cks
Imp ro v e min e co n d itio n s X
(eg . road , b en c h , ram p , load & d u m p
X R e tre ad s o n au xiliary e q u ip me n t
X
area d esig n & m ain ten an c e)
B ias p ly tire s (if match e d to ap p licatio n ) X
X
CO ST
($ )
X
N itro g e n fill
X
T K P H man ag e me n t X
(b en ef it is site p res s u re
con trol d ep en d an t)
(eg . tru ck sc h ed u lin g , T K P H m od u les )
E
L
E
M
E
N
T
S
C o n v e rt to smalle r (b u t b e tte r av ailab ility) tire siz e
(cos t is m ac h in e d ep en d an t)
C o n v e rt to larg e r tire siz e
(c os t is m ac h in e d ep en d an t)
Imp ro v e su p p ly ch ain man ag e me n t X
(eg . relation s h ip s , p ric in g , trac kin g d eliveries)
R e p airs X
(rep air sy s tem is im p ortan t;
Imp ro v e tire main te n an ce X
(eg . p ress u res , in s p ection , m atch in g )
ex ten d rep air p aram eters )
C h an g e cu ltu re : fro m p ro d u ctio n to tire co n se rv atio n X
(eg . train in g of m an ag ers & su p ervis ors)
Imp ro v e min e o p e rato r tire aware n e ss X
(eg . train in g , in c en tiv e s c h em e)
X
X
X R e claim su itab le scrap p e d tire s
S e le ct o p timu m tire sp e cificatio n fo r th e ap p licatio n X
Low
cost
(in c lu d es m atc h in g s p ec if ic ation s b y ax le)
Low benefit
T
A
R
G
E
T
B E N E F IT
(in te rm s o f tire c o n s e rv a tio n /re p la c e m e n t)
H igh benefit
Low
cost
Tyreless (Substitute) Options
• Haultruck/loader substitutes
– Bucketwheel excavator/mobile conveyor
– Inpit crusher/conveyor system
• Mobile
• Fixed
– Truck lift
• Tyred Dozer substitutes
– Tracked dozers
In Pit Crushing
Mobile system
• Conveyer system required
• Easy transport & fast setup
Truck Lift System
Open Pit Hoisting Systems
• Giant truck elevator
• Payload capacity (300 ton plus)
• Reduced truck fleet investments
• less tyres
• Reduced transport time
• Extendable bottom loading station
End of Presentation - Thank You
Reducing Your Tyre Costs
Tyre Prices
EM Tyre Plants
Belshina
Titan
Bryan plant,
Ohio, USA
Yokohama
EuroTire
Chinese
Michelin
Vitoria plant,
Spain
China
Indian
Bridgestone
Shimonoseki &
Kitakyushu
plants, Japan
Goodyear/Toyo
Nippon Giant
plant, Tatsuno,
Japan
Goodyear
Topeka plant,
Kansas, USA
Michelin
Lexington plant,
South Carolina,
USA
up to 27.00R49 size
up to 37.00R57 size
up to 40.00R57 size
up to 59/80R63 size
Other long-term manufacturers
New manufacturers
Michelin
Jacaranda
plant, Campo
Grande, Brazil
Effects
•
Handful of miners with sufficient tyre supply
–
–
•
Tyre contracts from 3yr out to 9yr
Miner investment in tyre moulds
Two year wait period new trucks
–
–
•
7,000+ trucks (90-360t) shipped past 24mth
%Growth: Ultraclass >90t >150t >220t >190t
New mines struggling to get tyres
–
–
Alternative brands to supplement Big-3
MiningCo / TyreCo JV’s
EM Tyre Demand
•
Growing proportion of large haultrucks
–
–
•
290-360t (ultra-class): 63” tyres
220-255t: 57” tyres
Mining expansion
–
–
–
–
•
Africa
Asia
South America
Australia, Canada
New mega-projects
–
Moatize Mozambique, Oyu Tolgoi Mongolia, Olympic Dam Australia
Lessons
•
Benefit from past 15 year’s experience
•
Elastic demand; inelastic supply
•
Lock in improvements we have made
•
Long term tyre supply agreements
•
Warranties
Things to Stay Focused On
•
Tyre selection
•
Tyre maintenance
•
Tyre operation
•
Tyre awareness
•
Tyre supply agreements
•
Recycling
Supply Outlook
•
Shortfalls (since 2004)
–
–
•
Eased with GFC (Aug 08)
Back again in earnest
Problematic supply sizes
–
–
–
–
•
Small to mid-size haultrucks (90-150t)
Large haultrucks (180-255t)
Ultra-class haultrucks (>300t)
Mid-size loaders
63” tyres
–
•
New entrants, but Michelin & Bridgestone have solid lead
Other brand(s) as major player?
–
Chinese / Other?