EMG MINING CONSULTANTS 50 YEARS SERVING THE WORLDWIDE MINING INDUSTRY
WHO WE ARE
EMG LLC, chartered in 1975, reduces procurement layers, time and costs by dealing directly with mining equipment manufacturers and finance houses to measurably improve mining project IRR. We assist the worldwide mining and engineering industry in mining equipment pricing, utilization, finance, maintenance and repair cost containment, and negotiation of Supply Contracts. We were one of the original creators of MARC’s (Fixed Cost Maintenance and Repair Contracts) 40 + years ago. We developed the above programs over the last 49 years at 100+ mining, 46 economic development, and 109 large construction projects in 31 countries. We provide the below benefits in addition to the “Best Practices” independently obtained by mining companies.
EMG is comprised of former senior executives from equipment manufacturing, engineering, mining, construction, and banking houses. Unlike the mining industry, equipment manufacturers and dealers are manufacturing and retail sales focused. The EMG blend of professionals therefore provides an 'inside the equipment industry' knowledge of how machinery is manufactured; how pricing from draglines to brake parts are established; how the manufacturer / dealer organization operates; how maintenance and repair programs are conducted, and how to operate the most cost effectively within the equipment industry. Rather than negotiate with a dealer toward an invisible number he may or may not provide, we start with the the best hard dollar costs at numerous large mines, thereby knowing in advance what the best price is.
Our long-standing relationships with all the primary equipment manufacturers and most international banking houses, international freight, accounting and governmental entities, makes sure the best pricing and practices are transferred to our clients.
Our long-standing relationships with all the primary equipment manufacturers and most international banking houses, international freight, accounting and governmental entities, makes sure the best pricing and practices are transferred to our clients.
WHAT WE DO
1. FEASIBILITY STUDIES and EXISTING MINE AUDITS: Our data base, generated by the below efforts is considered ‘BANKABLE’ by the international banking community, has become the Industry Standard, and has been used in over 200 Bankable Feasibility Studies to improve total equipment ownership/operating costs by 9-21%. It monitors CAPX, FINX, total maintenance and repair costs and freight at 43 current mines, 17 economic development, 27 large construction projects in 31 countries. This data base, combined with our 45 years of experience also allows us to audit existing equipment operating costs in all categories and assist the mine in obtaining Global Pricing levels on machines, parts, service and freight.
2. CAPX: We negotiate Globally Priced new or replacement mining equipment including Discounts of 11-15% below industry “Best Practices” for new and existing projects. This pricing is based on the previous year’s volume of our clients (2023: $4.3 Billion machinery and parts). Equipment manufacturers often assign corporate representatives to work directly with EMG.
3. FINX: International Mobile Mining Equipment Lease/Finance agreements using all accepted formats and methods at Libor plus 1% to 4%. In recent years this expertise and these relationships have led to several joint project finance and fleet/hard asset finance agreements.
4. EQUIPMENT MAINTENANCE AND REPAIR: Manufacturer Subsidized Pricing on Mobile Mining Equipment Maintenance, Repair, Parts, Warranties and Performance Guarantees; utilized in Fixed Cost Maintenance and Repair Contracts (MARC's); Scheduled Component Rebuild Contracts (SCRC’s) or Parts Supply Contracts to reduce total maintenance and repair costs by 9-17%. ‘Globally Priced’ OEM parts and components, and OEM/Dealer Flat Rate Component rebuilds at an average 9% below standard pricing. ‘Best Practices’ extended OEM and Sub-Supplier Warranties on parts and components. 5. EXPEDITED EQUIPMENT DELIVERIES: Due to our client’s volume, we along with a few others, get first choice of cancelled orders as well as the ability to shift deliveries from one fleet to another, expediting deliveries by up to 1 year.
6. OCEAN AND INLAND FREIGHT: Global Pricing of Mining Equipment and parts with Freight discounts of 14%.
7. CAPITAL AND ASSET UTILIZATION: Increases average 9% by linking Mechanical Availability and Equipment Utilization. Similar improvements in other capital assets.
8. FIXED COST OUTSOURCING to purchase supplies in 22 countries.
9. CASH FLOW EXPEDITING by 19-27% from parts, component, supplies inventory management, ownership transfers, increased turns, consignment programs (up to 100%).
10. FLAT RATE EQUIPMENT REPAIR AND REDO INCENTIVES increase equipment utilization by 12%.
11. REDUCTION/ELIMINATION of IVA, NAFTA, MERCOSUR, EUROZONE, WITHHOLDING, OTHER TAXES, AND IMPORT DUTIES by 12-30%.
12. EQUIPMENT REPAIR COST REDUCTIONS from expanded parts and labor warranties of 12-14%.
13. OTHER PROGRAMS: Supply Chain Management, Training Supervision, Institutional Investment Capital, Government Project Finance Guarantees.
a few of our projects
ANGLO GOLD GOLDCORP TOREX GOLD JOHANNESBURG S.A. VANCOUVER, BC TORONTO, ONT
N.M. ROTHSCHILDS & SONS JSC VARVARINSKOYE THE WORLD BANK MANCHESTER, ENGLAND KOSTANAY, KAZAKHSTAN NEW YORK, NEW YORK
MINEFINDERS DOLORES TERRANE METALS MINERA ANTAMINA CHIHUAHUA, MEXICO VANCOUVER, BC LIMA, PERU
CHINESE NAT'L COAL DC EURO TUNNEL (CHUNNEL) ASIA PACIFIC COAL BEIJING, CHINA INSEAD FRANCE BANGLADESH
NEW GOLD MINERA PENASQUITO B2 GOLD VANCOUVER, B.C. ZACATECAS MEXICO VANCOUVER, B.C.
FOSFERTIL SAFID KUH LYDIAN INTERNATIONAL GOIAS STATE, BRAZIL KABUL, AFGHANISTAN AMULSAR, ARMENIA
CHEMOLEUM LTD. KAISER ALUMINUM VISTA GOLD CHROMPET, MADRAS, INDIA PERTH AUSTRALIA DENVER, COLORADO
OCCIDENTAL PETROLEUM NORTHROP GRUMMAN EXXON BEIJING CHINA L.A. CALIFORNIA HOUSTON, TEXAS
NORTHISLE COPPER FORDING COAL BLACK THUNDER COAL DENVER, COLORAD CALGARY, ALBERTA WRIGHT, WYOMING WESTERN COPPER & GOLD KENNECOTT MINERA MARICUNGA VANCOUVER, BC SALT LAKE CITY, UTAH COPIAPO, CHILE
CAPSTONE COPPER MINERA EL INDIO ISLAND CREEK COAL MIAMI, AZ LA SERENA, CHILE LEXINGTON, KENTUCKY
OCEANIC IRON BARRICK S.A. KINROSS GOLD TORONTO, ONTARIO SANTIAGO, CHILE TORONTO, ONTARIO
GUYANA GOLDFIELDS MINERA HECLA ASARCO TORONTO ONTARIO SONOYTA, MEXICO TUCSON, ARIZONA
WESTERN ENERGY ITOCHU TRADING AN TAI BAO COAL COLSTRIP, MONTANA TOKYO, JAPAN PING SHUO, CHINA
EMG DATA BASE
- EMG DATA BASE PROGRAM 1078.12emdbrv551.wpsEMG's Data Base Program 1078.12 compiles, and monitors real time mine equipment capital, lease, finance, rent, owning, maintenance, repair, freight and 11 other operating costs, in 500 hour increments, in 17 major world currencies.
The data stored and updated weekly includes detailed capital and cost components of 17,000+ machines, 2,000,000+ parts and component groups, 38 flat rate and time/material service labor programs and 46 factory pricing/participation programs from 14 manufacturers. It currently includes Supply Contract and Supply Chain Agreement Costs at 43 current mines, 17 economic development projects, and 31 large construction projects in 22 countries.
The Program data is provided for Preliminary and Bankable Feasibility Studies; as source data for the negotiation of Supply Chain Agreements; continuous monitoring of Supply Chain Agreements in force; and preparation of project budgets.
Program isolates and reports costs on a per hour or monthly basis for:} Equipment purchase, lease, rent, off balance sheet finance methods; interest rate and currency variation by geographic location; factory/dealer history of profit concession /consignment programs; lease/buy out parameters and demobilization costs; residual enhancement and Global Purchasing programs; discounted rental rates; scheduled fleet replacement programs; consumable supply costs, contract terms; payment stream assurance methods.
} Maintenance costs as time/material, flat rate, and Supply Chain Maintenance Agreement costs; fix before failure and run to failure costs; scheduled and unscheduled labor, parts and repair costs; scheduled new and remanufactured component replacement; factory extended warranty, consignment and profit concession, just in time inventory and flat rate incentive programs; on site parts storage, tooling, support and testing equipment costs; 80-100% Availability Guarantees including penalties; freight/haulage.
} Cash cost and capitalization accounting methods; depreciation costs/benefits; cash flow and float; insurance (liability, medical, workman's compensation, business interruption, political risk); overhead and accounting; contract termination methods; return on assets, profitability, duplication of services.
} The program also monitors changes in VAT, PITEX, ALTEX, SECOFI, NAFTA, MERCOSUR, European Union Regulations, withholding tax and various other tax and duty programs affecting mining and construction equipment worldwide.
} Maintenance, parts, personnel staffing levels, supervision, safety and operator training.
} Maintenance costs, in 500-hour increments, are allocated to the following categories: 1. Training. 2. Safety and Daily Inspections. 3. Daily Lube/Fuel/Tire and Inspections. 4. Scheduled Fuel and Oil Testing. 5. Technical Machine Audits. 6. Turbo Charger Replacement Programs. 7. Planned Component Replacement Programs. 8. Field Service. 9. Preventive Maintenance Programs. 10. Ground Engaging Edges, Teeth, Wear Steel, Removal and Installation. 11. Undercarriage Maintenance. 12. Warranty and Non-Warranty Repairs. 13. Non-Scheduled Repairs. 14. Life Cycle Costing.
. - EMG DATA BASE PROGRAM 1078.12emdbrv551.wpsEMG's Data Base Program 1078.12 compiles, and monitors real time mine equipment capital, lease, finance, rent, owning, maintenance, repair, freight and 11 other operating costs, in 500 hour increments, in 17 major world currencies.
The data stored and updated weekly includes detailed capital and cost components of 17,000+ machines, 2,000,000+ parts and component groups, 38 flat rate and time/material service labor programs and 46 factory pricing/participation programs from 14 manufacturers. It currently includes Supply Contract and Supply Chain Agreement Costs at 43 current mines, 17 economic development projects, and 31 large construction projects in 22 countries.
The Program data is provided for Preliminary and Bankable Feasibility Studies; as source data for the negotiation of Supply Chain Agreements; continuous monitoring of Supply Chain Agreements in force; and preparation of project budgets.
Program isolates and reports costs on a per hour or monthly basis for:} Equipment purchase, lease, rent, off balance sheet finance methods; interest rate and currency variation by geographic location; factory/dealer history of profit concession /consignment programs; lease/buy out parameters and demobilization costs; residual enhancement and Global Purchasing programs; discounted rental rates; scheduled fleet replacement programs; consumable supply costs, contract terms; payment stream assurance methods.
} Maintenance costs as time/material, flat rate, and Supply Chain Maintenance Agreement costs; fix before failure and run to failure costs; scheduled and unscheduled labor, parts and repair costs; scheduled new and remanufactured component replacement; factory extended warranty, consignment and profit concession, just in time inventory and flat rate incentive programs; on site parts storage, tooling, support and testing equipment costs; 80-100% Availability Guarantees including penalties; freight/haulage.
} Cash cost and capitalization accounting methods; depreciation costs/benefits; cash flow and float; insurance (liability, medical, workman's compensation, business interruption, political risk); overhead and accounting; contract termination methods; return on assets, profitability, duplication of services.
} The program also monitors changes in VAT, PITEX, ALTEX, SECOFI, NAFTA, MERCOSUR, European Union Regulations, withholding tax and various other tax and duty programs affecting mining and construction equipment worldwide.
} Maintenance, parts, personnel staffing levels, supervision, safety and operator training.
} Maintenance costs, in 500-hour increments, are allocated to the following categories: 1. Training. 2. Safety and Daily Inspections. 3. Daily Lube/Fuel/Tire and Inspections. 4. Scheduled Fuel and Oil Testing. 5. Technical Machine Audits. 6. Turbo Charger Replacement Programs. 7. Planned Component Replacement Programs. 8. Field Service. 9. Preventive Maintenance Programs. 10. Ground Engaging Edges, Teeth, Wear Steel, Removal and Installation. 11. Undercarriage Maintenance. 12. Warranty and Non Warranty Repairs. 13. Non Scheduled Repairs. 14. Life Cycle Costing.