Pilbara Iron by cuttiegyrl


									                                                    Case Study                   Sector: Mining

                                        Shell Identifies
                                        Significant Savings
                                        for Pilbara Iron
                                        Product: Rimula MV

                                        The Challenge:
                                        Mining houses are constantly striving to get more out of their mobile
                                        equipment. This includes proactively trying to reduce maintenance costs and
                                        increase the availability of their fleet. In addition, they must also ensure their
                                        operations are environmentally sound and meet government emission
The Company:                            regulations.
Pilbara Iron, a member of the Rio
Tinto Group, is a world-class asset     As a result, modern high performance engines now demand more from the
manager that operates and               lubricant, placing pressure on engine manufacturers and oil companies to
maintains mining, rail and export       develop new high performance products.
facilities in the northwest of
Western Australia.                      Recognising the importance of continually exceeding engine manufacturers’
                                        lubricant specifications, Shell has continued to evolve its product range.
With a network of nine mines,
three shipping terminals and the        Shell’s new product, Rimula MV, was specifically designed to meet the new
largest privately owned railway in      requirements of Detroit, Caterpillar, Cummins and Komatsu, whilst older
the world, Pilbara Iron produces        products like Rimula D Extra do not meet these new specifications.
more than 130 million tonnes of
iron ore annually. It also operates a   Shell Senior Fuel and Lubricants Engineer, Brian Poole, said: “The challenge
large and varied fleet of trucks,       at Pilbara Iron’s Brockman mine was to standardise all machinery on one
loaders, shovels and other heavy        regime and increase the availability of Brockman’s fleet. This was achieved
earth moving equipment.                 by using Rimula MV, a product that meets the Detroit-MTU specification for
                                        extending oil drain intervals (ODIs) out to 500 hours.

                                        “Our primary aim was to maximise efficiency and increase production whilst
                                        decreasing servicing costs without affecting safety.”

                                        The Solution:
                                        Shell recommended Shell Rimula MV Heavy Duty Diesel Engine Oil, a new
                                        product that meets the performance criteria of all engines on site.

                                        It was agreed that a trial of Shell Rimula MV be undertaken at the Brockman
                                        mine site using 6 MTU 3600 series engines in unit rig dump trucks.

Ref: 00005 09/04
                      Case Study                           Sector: Mining

                    Shell Identifies Significant Savings for
                    Pilbara Iron

The trial commenced in July 2005 when all engines on site were changed to Shell Rimula MV, however only the
MTU 3600 powered dump trucks were monitored in the 500-hour trial.

“The trucks all ran a 250 hour cycle as a flushing exercise to remove any residual Shell Rimula D Extra additive
before Shell Rimula MV was introduced. It then ran for 500 hours repeatedly over a three month period,” said Mr

At Detroit-MTU’s request, particular care was taken to observe the build up of residue in the ‘spinner’ filter unit
— a centrifugal filtration system that removes heavy particles and indicates a saturation of dispersant additive if
the build up becomes excessive. Importantly, the changeover did not at any stage exceed the spinner filter’s
maximum of 25mm build up during the trial.

After three months the trial results and used oil analysis showed the changeover had been extremely successful,
and that it was possible to extend ODI’s on the MTU engines to at least 500 hours. Significantly, the used oil
analysis showed the oil and engines to be in good condition, with some filter patch tests showing low wear levels
at 500 hours.

Pilbara Iron Reliability Engineer, Vicky Sadler, said: “The results showed no ill effects on the engines and no
increase in wear or additive degradation. In addition, the oil was not overly stressed, which suggests that even
longer ODI’s may be possible with further trialing.

“The trial has been a success and Pilbara Iron is currently moving all sites from older products like Shell Rimula
D Extra to Shell’s new Rimula MV engine oil.”

Calculations showed Pilbara Iron achieved a saving of $51,336 per annum— attributed to using a smaller quantity
of a more expensive lubricant — by changing to Shell Rimula MV.

                                                                    In addition to the oil savings, there is a significant reduction
                                                                    in labour costs and other service component costs — such as
                                                                    oil filters — that reduce total servicing costs and contribute
                                                                    an additional $70,000 in savings. The total annual saving of
                                                                    $120,000 is attributable to reduced servicing costs and oil

                                                                    Further cost reductions are expected due to a lowering of
                                                                    engine wear rates and reduced maintenance and part
                                                                    replacement costs.

                                                                    It is also anticipated that by replacing the 12-hour long
                                                                    service at 250 hours with a four-hour mechanical and safety
                                                                    inspection, the fleet of six trucks have the potential to gain
Pilbara Iron’s unit rig truck — MTU 3600 series engines –           approximately 576 additional operating hours per year.
participated in the trial.

To find out how our experts can reduce your maintenance costs and improve the availability of your assets, please contact Nick Schmitz, Mining
Marketing Manager, on +61 2 9897 8235 or via email: Nick.Schmitz@shell.com

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