Why MRO matters more in mining than almost anywhere else
Maintenance, Repair and Operations (MRO) is the plumbing of a mine’s reliability. It isn’t flashy. It doesn’t pour gold doré, ship iron ore, or pump gas. But when an excavator is down waiting on a $60 seal or an autoclave trips for want of a pressure transmitter, MRO suddenly becomes the most important thing on site.
In Australia and New Zealand, mines contend with long distances, sparse transport connections, brutal environments, and a complex asset base—fixed plant, mobile fleet, power, water, labs, camps, ports, and rail. The net effect? MRO spend is high, variability is constant, and the risk of “minor parts, major downtime” looms over the plan every week.
This article sets out a practical view of MRO excellence tailored to ANZ mining operations—what to fix first, what to build for the long term, and how to balance cost with risk. You’ll find concrete tactics across demand planning, critical spares, supplier strategy, logistics to remote sites, contracts, technology, ESG, and governance. You’ll also see how Trace Consultants partners with mining companies to design, implement, and embed improvements that last.
The anatomy of MRO in mining
Let’s get clear on scope. MRO in mining typically covers:
- Consumables: fasteners, gaskets, hoses, PPE, grinding media, reagents, filters, lubricants.
- Rotables: pumps, gearboxes, motors, cylinders—assets that cycle between operation, repair, and shelf.
- Critical spares: long lead, low-volume, high consequence items—shafts, crusher heads, PLC cards, major bearings.
- Services: condition monitoring, valve rebuilds, motor rewinds, machining, hydraulic rebuilds.
- Tooling & equipment: welding sets, torque tools, lifting gear, special jigs.
- Supporting categories: maintenance scaffolding, access equipment, workshop supplies, calibration and testing.
What makes mining different is the combination of heavy industrial complexity with geographic isolation and weather-exposed logistics. That combination pushes three tensions to the surface:
- Availability vs. working capital: You can carry everything, or you can carry cash—rarely both.
- Standardisation vs. legacy constraints: Standard SKUs and specs lower cost and risk, but sites run legacy equipment for decades.
- Centralisation vs. local autonomy: Central standards deliver leverage; local teams need flexibility for reality on the ground.
Smart MRO strategies acknowledge those tensions and manage them deliberately—policy, process, and technology aligned.
Common pain points we see across ANZ mining MRO
- Unplanned stockouts of small but specific parts that halt critical equipment.
- Bloated inventory: duplicated SKUs, obsolete rotables, slow-moving long tails tying up millions.
- Weak master data: inconsistent part descriptions, vendor vs. manufacturer confusion, missing specs, and poor criticality tags.
- Long and variable lead times: overseas suppliers, batch-made OEM parts, upstream component shortages.
- Fragmented supplier base: too many vendors for identical items, poor leverage, variable quality.
- Rotables management gaps: no clear owner for repairable items, slow turns, poor failure tracking.
- Remote-site logistics: weather delays, last-mile constraints, limited backhaul, ad-hoc expediting.
- Contract drift: scope creep, unmanaged price escalation, under-performed service levels.
- Data trapped in systems: CMMS, ERP, e-procurement, and warehouse systems don’t talk cleanly, limiting insight and control.
None of these are unsolvable. But they do require a joined-up approach—whack-a-mole fixes rarely stick.
What “good” looks like: a pragmatic blueprint
1) Demand and maintenance planning that actually drives MRO
- Link MRO to maintenance strategies: PMs (preventive), PdM (predictive), and shutdown scopes should translate to time-phased materials plans.
- Exploit hierarchy and BOMs: Asset BOMs must be current and used—no orphan parts hidden in ad-hoc work orders.
- Planned vs. unplanned ratio: Keep improving the mix; more planned work means fewer emergency buys and better freight economics.
- Condition-based triggers: Vibration, temperature, and oil analysis should flow into planned materials demand, not sit in dashboards.
Quick win: build an “MRO look-ahead” pack that overlays shutdown calendars, lead times, and current stock by criticality.
2) Critical spares policy grounded in consequence and lead time
- Define criticality clearly: Consider safety, environmental risk, production loss rate, substitution options, and repair times.
- Model lead-time risk: For parts with uncertain or long lead times, stock policies must reflect distribution, not just averages.
- Pool where possible: Multi-site operators can share the rarest spares across a controlled network with quarantine and service-level rules.
- Dual pathways: Stock the “A” critical items; for “B/C” items, maintain repair/vendor capacity and emergency logistics arrangements.
Quick win: run a top-50 “production risk” review—price of downtime × lead time × probability—to reset stocking decisions.
3) Inventory optimisation that respects reality, not theory
- ABC-XYZ segmentation: Classical but useful—volume/value (ABC) meets demand variability (XYZ).
- Service-level targets by class: 99+% for A-X criticals, lower for C-Z tail, with business-approved trade-offs.
- MoQs and pack sizes: Build supplier constraints into stocking logic; otherwise you’ll always be “wrong” in practice.
- Obsolescence governance: Quarterly sweeps for items with superseded OEMs, retired assets, or no pick for 24+ months.
- Rotables loop control: Track each unit’s life, failure mode, repair TAT, and shelf readiness. Treat rotables as a mini-supply chain.
Quick win: identify 20–30 duplicated SKUs with like-for-like specs and consolidate to a standard—saves cash and space.
4) Supplier and category strategy: fewer, better, clearer
- Standardise specifications before you tender—locking spec reduces lifetime cost and variation.
- Bundled categories where it makes sense: create leverage (e.g., valves + actuators + services), but avoid supplier lock-in on critical OEM items.
- Outcome-based SLAs: DIFOT to site/store, emergency response windows, repair TAT, warranty adherence, shelf-life management.
- Vendor-Managed Inventory (VMI) with brains: for high-runner consumables near point of use; retain forecasting rights and visibility.
- Local/regional repair ecosystems: particularly for rotables—set quality gates, failure reporting, and core returns discipline.
Quick win: run a “sourcing sprint” on two categories with overlapping suppliers—harmonise terms, clarify service levels, reduce the long tail.
5) Logistics to remote operations: design for delay
- Multi-leg lead time mapping: factory to port, port to metro DC, DC to regional hub, hub to site—each leg needs time and risk.
- Seasonal playbooks: cyclones, road closures, heat—plan stock buffers and freight capacity strategically, not reactively.
- Backhaul and consolidation: use supplier milk runs or third-party consolidation points to reduce freight cost and damage risk.
- Emergency logistics contracts: pre-negotiated rates and service levels for air charter or hot-shot trucking when the unavoidable happens.
- Packaging and preservation: moisture barriers, shock sensors, and preservation routines for spares parked for months in harsh conditions.
Quick win: codify a red/amber/green matrix for freight choices by item criticality and event (routine vs. shutdown vs. unplanned).
6) Contracts that don’t drift
- Clear scope boundaries: what’s included (and not), escalation paths, and site induction obligations.
- Price mechanics: transparent base, indexation rules (not just CPI), fuel levies, and proven pass-throughs for upstream changes.
- Performance + governance: monthly operational reviews, quarterly commercial reviews, and an annual reset tied to business priorities.
- Data and traceability: vendor obligations to provide usage, lead time, failure, and quality data—usable, not PDFs.
- Risk and continuity: multi-sourcing for critical categories, safety stock obligations, and business continuity plans held by suppliers.
Quick win: unlock 2–3 contract variations that have crept in without value—realign scope and rate cards to current reality.
7) Data, systems, and analytics: make the plumbing flow
- One source of truth for parts: harmonise naming conventions; capture manufacturer part numbers, alternates, and specifications.
- BOMs connected to live inventory: CMMS/ERP integration so planners see what’s on hand when they plan the job.
- Forecasting with uncertainty: move beyond averages—probabilistic approaches for slow and lumpy demand help a lot for MRO.
- Event-aware planning: shutdown calendars and known campaigns flow into materials plans months ahead.
- Operational dashboards: stockout risk, critical spares coverage days, supplier DIFOT, repair TAT, and inventory turns—by class.
Quick win: a weekly “MRO control room” ritual—60 minutes that reviews risk by asset/part, not just generic KPIs.
8) ESG and local content without sacrificing reliability
- Local repair capability: build skills and jobs while shortening turnaround times for rotables.
- Freight footprint: reduce emergency air freight through better planning and pooled critical spares.
- Waste and circularity: refurbish rotables to a quality standard; recycle oils, filters, and metals with accredited partners.
- Supplier development: bring regional SMEs up to spec on quality and safety so they can compete and sustain.
Quick win: identify three rotables with repeatable failure modes—work with a regional repairer to cut TAT and scrap rates.
A sensible MRO improvement roadmap
You don’t need a monster program to start delivering results. A staged approach sticks better and shows value quickly.
Phase 1: Stabilise (8–12 weeks)
- Risk sweep on critical spares with consequence/lead-time lens; fix top 30 gaps.
- Inventory hygiene: deduplicate SKUs; quarantine suspected obsoletes; lock master data rules.
- Supplier triage: tighten SLAs with current suppliers on DIFOT and repair TAT; stop the bleeding.
- Control room cadence: institute weekly risk-based reviews and a site/central playbook.
Outcomes: fewer stockouts, reduced emergency freight, better visibility of exposure.
Phase 2: Optimise (12–24 weeks)
- Rebuild key BOMs on critical assets and link to planning.
- Segmented stocking policy with ABC-XYZ classes and agreed service levels.
- Category strategies for 3–5 material groups with tenders or renegotiations.
- Rotables loop with tracking, repair partners, and TAT targets.
Outcomes: lower working capital with stable or higher service levels; improved contract performance.
Phase 3: Embed & scale (6–12 months)
- System integrations: clean MM records, CMMS-ERP sync, analytics and alerts.
- Multi-site pooling for rare spares with governance.
- Supplier development: performance management tied to data sharing and continuous improvement.
- ESG integration: freight reduction goals, repair/refurb metrics, local content pathways.
Outcomes: sustained reliability, predictable costs, and resilience against external shocks.
Practical tips that pay back fast
- Name parts for humans: “Bearing, spherical roller, 22220 E, SKF” beats “BEAR ROLLER 22220”—cuts picking and ordering errors.
- Explode PM kits: where kitting is used, check actual consumption post-job and refine kit lists to stop over-issuing.
- Tag and test shelf-life: adhesives, resins, gaskets, batteries—date, rotate, and test.
- After-action reviews for every notable stockout or failure—capture cause and prevention into master data.
- Work order closure discipline: force the link between materials used and asset/components; stop “miscellaneous” posting.
- Standard alternatives: pre-approve genuine equivalents for non-OEM items with engineering sign-off to avoid approval delays.
The role of technology—useful, not flashy
A lot of value is unlocked by getting basics right and then layering smart tools:
- Master data tooling that normalises descriptions and maps manufacturer vs. vendor part numbers—reduces duplicates and buying errors.
- Reorder policy engines that accept uncertain demand and variable lead times—not just naïve min-max.
- Rotables tracking via barcodes/RFID and workflows—visible status, repair ETA, and shelf readiness.
- Mobile warehouse apps for remote stores—receipting, issues, cycle counts, photo evidence.
- Operational analytics: stockout risk monitors, supplier scorecards, shutdown materials readiness dashboards.
- Low-code automation: intake forms for new parts, approvals for alternates, vendor performance captures—fast to deploy, easy to adapt.
You don’t need to rip and replace your ERP to gain these benefits; lightweight layers and integration can move the needle fast.
Culture and operating model—where the real change sticks
- Ownership is everything: nominate clear owners for master data, rotables, and critical spares policy.
- Maintenance + Supply as one team: co-design policies, attend each other’s reviews, share success metrics.
- Frontline enablement: stores keepers and planners are the heartbeat—give them authority and tools, not just KPIs.
- Align incentives: reward reduced emergency spend and improved planned maintenance mix, not just inventory reduction in isolation.
- Communicate in the language of risk: tie decisions to hours of production protected, safety exposure reduced, and emissions avoided.
How Trace Consultants can help
Trace Consultants is a boutique ANZ advisory firm specialising in supply chain, procurement, and back-of-house operations. We help mining companies lift reliability and reduce cost across MRO by combining deep operational experience with practical technology.
Here’s how we typically partner with clients:
1) Rapid MRO Diagnostic (4–6 weeks)
We assess critical spares exposure, inventory health, rotables loops, supplier performance, and logistics resilience. You get an actionable roadmap, quantified quick wins, and a governance refresh—no fluff, just what to do next.
2) Critical Spares & Inventory Optimisation
We classify parts by consequence and lead-time risk, rebuild stocking policies, clean master data, and tackle obsolescence. For rotables, we stand up closed-loop control with TAT targets and repair partners.
3) Category Strategy & Contracting
We consolidate suppliers where it helps, retain flexibility where it matters, and negotiate outcome-based SLAs. Indexation rules, price transparency, and performance scorecards are standard.
4) Remote Logistics Design
We map end-to-end lead times, set seasonal playbooks, and pre-position emergency options. Packaging, preservation, and consolidation are engineered into the plan, not left to chance.
5) Technology Enablement
We implement lightweight data tooling, analytics, and low-code workflows that integrate with your existing ERP/CMMS. Think practical alerts, clean part records, mobile-ready stores processes, and rotables visibility—fast to deploy, measurable impact.
6) Capability Build & Change
We train planners, stores teams, and maintainers, codify operating rhythms, and embed a control-room review that sustains results long after the project team steps back.
We don’t fabricate case studies. Where relevant, we’ll describe typical outcomes, the approach we used, and the levers applied—always in a way you can verify and adapt to your context.
What success looks like in practice
When mining operators get MRO right, you tend to see:
- Fewer unplanned stoppages due to parts.
- A higher ratio of planned to unplanned work, with materials ready when the crew is.
- Lower emergency logistics and expediting costs.
- Inventory that is smaller and smarter—less money trapped in duplicates and obsoletes.
- Rotables that move quickly through repair and return, with known status.
- Suppliers that perform predictably and share useful data.
- A team that talks risk and consequence, not just numbers.
That’s the real prize: a safer, steadier operation that costs less to run and is less fragile when the world gets messy.
Getting started: a compact, high-value first step
If you’re thinking “where do we begin?”, start here:
- Top-50 risk review across critical spares—align policy to consequence and lead-time reality.
- Duplicate & obsolete sweep to free up cash and space, and stop the confusion.
- MRO control room cadence—weekly, cross-functional, decisions recorded, actions tracked.
- Two category sprints—one consumables, one rotables—reset SLAs and simplify the supplier base.
These four moves establish momentum, demonstrate value, and create the platform to scale.
Final word
MRO isn’t a cost to be squeezed blindly; it’s an insurance policy against high-cost downtime and a lever for reliability. In ANZ mining—where distances are vast, logistics are temperamental, and asset bases are unforgiving—the difference between average and excellent MRO is felt daily on the line.
If you want pragmatic help to stabilise, optimise, and embed MRO improvements, Trace Consultants can partner with your team—aligning maintenance and supply, tuning contracts and logistics, and enabling the right technology without adding complexity.
Ready to strengthen your MRO supply chain? Let’s map your risk, unlock quick wins, and build a plan your people can run.
About Trace Consultants
Trace Consultants is an Australian supply chain advisory helping government and commercial organisations improve supply chain performance. We bring hands-on expertise—procurement, planning, warehousing, logistics, and technology enablement—tailored for ANZ conditions. We focus on practical outcomes, measurable improvements, and building capability within your team.
