But installing heavy machinery in remote, challenging environments is no easy task. Whether it’s a site in the lower Arctic or on an isolated island, delays due to missing or damaged components can stall operations and inflate costs. According to recent McKinsey analysis, the cost and scheduling challenges affect 83% of major mining and metals projects, with average budget overruns exceeding 40% and delays stretching timelines by up to 30%. For megaprojects over $1 billion, the impact is even greater—costs run 79% over budget and delays average 52% beyond initial estimates1 .
Installation management plays a crucial role in improving efficiency during complex mining equipment setups. Through better tracking, real-time coordination, and digital oversight, it helps reduce delays, minimize downtime, and ensure timely delivery of critical components—ultimately supporting more reliable, cost-effective operations. Read on to see how these tools work in practice to overcome logistical challenges and keep mining projects on track.
Source: The capex crystal ball: Beating the odds in mining project deliver (McKinsey&Company,2024)
Comprehensive Planning for Mining Equipment Installation
Mining equipment installations involve coordinating multiple large components—engines, hydraulic systems, control panels, and structural assemblies. When parts are missing, damaged, or delivered out of sequence, it can lead to costly delays, especially in remote locations. Now, imagine a mining operation receives a fleet of haul trucks, but critical hydraulic hoses arrive late due to poor shipment coordination. The entire installation stalls.
Installation management allows manufacturers to plan, track, and sequence shipments in a coordinated manner, helping ensure that all components arrive together and in the proper order for assembly. This, in turn, reduces the risk of downtime during installation, particularly in complex or remote project environments.
Real-Time Tracking for Spare Parts and Heavy Machinery
The equipment often travels across multiple transport modes (sea, rail, and road) before reaching remote sites. Handling mistakes, exposure to moisture, or excessive vibration can lead to damaged components upon arrival. This holds especially true for long-haul ocean freight.
Real-time tracking and shock detection sensors help monitor handling quality throughout the journey, allowing for early identification of potential damage. This enables timely interventions—such as inspection or repackaging at intermediate stops—reducing the risk of equipment failure on-site and minimizing costly delays caused by unexpected repairs.
Faster Installation with Optimized Logistics
Minimizing on-site installation time is a major challenge in mining, where delays can disrupt production and drive up labor costs—especially when specialized technicians are involved. According to Costmine Intelligence, labor accounts for around 43% of operating expenses at surface mines, while oil-based products account for just under half2 . Even small setback can quickly become expensive.
Take, for example, a mining company that orders a new conveyor system that needs precise alignment. Due to poor coordination, critical fasteners are missing from the delivery. As a result, the entire project is stuck on the ground, waiting for parts to arrive and schedules to be reshuffled.
Staying on schedule by aligning deliveries with workforce availability frees up valuable time and resources—both of which can be redirected toward other critical tasks. In an industry moving toward Net Zero, where capital-intensive transitions are underway, avoiding installation delays can help redirect funds to sustainability goals.
Staying on schedule by aligning deliveries with workforce availability frees up valuable time and resources—both of which can be redirected toward other critical tasks.
"First-Time-Right" Installations
Nefab estimates that 20–40% of equipment installations fail on the first attempt due to missing, incorrect, or damaged components3 . These setbacks often require extra transport, technician time, and rescheduling—driving up costs and delaying production. A better approach is “first-time-right”: ensuring all components are verified and complete before leaving the factory.
For instance, imagine a new underground loader arriving at a mine—only for installation to stall because of an incorrect electrical module. With proper installation management, such errors can be caught early through digital verification, reducing the risk of costly mistakes. The result? A smoother, faster installation process that supports operational reliability from day one.
Integration with Mining-Specific Digital Services
Installation management platforms can connect with other digital supply chain tools to support a wider range of needs in mining operations:
- High-Value Asset Monitoring provides oversight for expensive equipment like drills, crushers, and haul truck components, reducing the risk of loss or theft in transit.
- Supply Chain Visibility gives mining teams real-time updates on where critical parts are and when they’ll arrive.
The Competitive Advantage for Mining OEMs
Streamlined installation processes are critical in the mining industry, where delays can lead to significant revenue losses and ripple effects across entire operations. By adopting Nefab’s Installation Management solution, mining equipment manufacturers can reduce installation delays and costs, improve logistics efficiency, and gain real-time visibility that helps prevent damage-related downtime. Most importantly, ensuring first-time-right installations minimizes rework, keeps production on schedule, and frees up resources that can be reinvested in sustainability efforts like reaching Net Zero targets. In a capital-intensive, globally competitive industry, that’s not just an advantage—it’s a necessity.
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