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Transitioning mining fuel supply without interruption

Transitioning mining fuel supply without interruption


“If we change, how will the transition affect our business?”

This is a question many companies would ask when considering swapping a major supplier. Even more so if the products are critical to maintaining the day-to-day mechanics of the operation.

For large mining sites, the reliable supply of fuel is the lifeblood of their business.

With heavy equipment that can’t afford downtime, complications related to remote locations and the complexities involved with on-site storage, mean there are a plethora of potential problems in the fuel supply for these large operations.


Huge contract. Massive planning.

In September 2017, Caltex was awarded the fuel supply contract for a major mining operation in Queensland.

From February 1, 2018, Caltex would be required to deliver a combined annual total of 600 million litres of Clean TecD and Power TecD diesel to 12 separate mining sites throughout the Bowen Basin and to a coal loading facility.

Spread across the 13 sites, the combined tank count of 109 further demonstrates the magnitude of the task faced by Caltex to ensure perfect delivery from day one.

After an extensive induction program, the Caltex team conducted several separate visits to each site to assess pre-delivery compliance, diesel quality and upgrade tank signage. 103 fuel samples were also collected and tested.

A risk mitigation process identified and managed a number of issues including delivery compliance, forecasting, stock control and ensuring the correct product for each site where multiple grades are required.

To deliver the massive volumes required, a fleet of 27 B-Double tankers was assembled with 64 new drivers inducted to drive from the Caltex terminal in Mackay, North Queensland. Together, these trucks will travel 7 million kilometres each year to service the sites.

Success from day one.

Following the detailed planning process, supply successfully commenced to the 13 sites on February 1. In the first months, 985 loads totalling 50.4 million litres were delivered throughout the Bowen Basin and to the coal loading port.

As part of the supply agreement, Caltex also monitors and manages the fuel levels at each site with the Mackay terminal able to receive access to live tank volumes. This allows Caltex to forecast usage and schedule deliveries to always maintain agreed minimum stock levels.

By using a combination of teamwork, planning and the latest equipment and technology, Caltex ensured that each site for this large and complex customer made a seamless transition to the benefits of Clean TecD and Power TecD fuels.

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