Mine trucks: transport economics?

There are around 50,000 giant mining trucks in operation globally. The largest examples are around 16m long, 10m wide, 8m high, can carry around 350-450 tons and reach top speeds of 40mph.

This data-file captures the economics of a mine haul truck. A 10% IRR requires a charge of $10/ton of material, if it is transported 100-miles from the mine to processing facility. Assumptions can be stress-tested overleaf.

Fuel consumption is large, around 40bpd, or 0.3mpg, comprising around 30% of total mine truck costs at c$1.5-2/gal diesel prices. Some lower carbon fuels are c5x more expensive, and would thus inflate mined commodity costs.

High utilization rates are also crucial to economics, to defray fixed costs, which are c50% of total costs, as our numbers assume each truck will cover an average of 500 miles per day for c20-25 years.

Oil Sands CO2 Intensity

This data-file quantifies the CO2 intensity of oil sands production: disaggregating averge emission factors for both mining operations and SAGD. Emissions are estimated for running trucks, bitumen extraction, steam-flooding, upgrading, methane leaks, flaring, et al; based on real-world data.

A CO2 curve can also be derived from the data, ranking c2.5Mbpd of production across Alberta, in order to compare different facilities and different operators. Steam-oil-ratios explain c60% of the variance in SAGD assets’ emissions.

Copyright: Thunder Said Energy, 2022.