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Tyre Costs constitute the biggest problem in Loading and Haulage in 2012

JAKARTA(24 April 2012) Load and Haul Asia 2012 held in Jakarta on 1-2 August 2012.

Over 4,000 respondents from the mining, loading and hauling industry highlighted that tyre costs will be the biggest challenge in loading and hauling this year. According to an expert familiar with the subject, “It’s a continuation of what was going on in 2005-06. Everything fell due to the global financial crisis (GFC), but now we’re going back to pre-GFC demand.”

The price of commodities has gone up and so has the price of natural rubber, oil and carbon black, and that affects the pricing of tyres.  A typical off-the-road (OTR) tyre is composed of 47% rubber, 22% carbon black and 12% metal. The use of natural rubber for these tyres is as high as 80%, compared with 40% for light trucks. This leaves the prices of OTR tyres highly susceptible to fluctuations in the natural rubber market, which has been quite volatile recently. 

Already Thailand, Malaysia and Indonesia account for almost 75% of the world’s rubber exports. Since rubber plants take nearly seven years to start yielding, the industry is affected by low yields as well as a lack of mature trees, not to mention that abnormal climate patterns are not helping to increase the harvest.The existing trees were planted in the 1980s and the yields for those plants have fallen

Another of the biggest limitations of current haul trucks are the tyres more importantly maintaining their condition. If demand for tyres will continue to grow, ancillary industries such as recycling and retreading will have to grow along with it.

In order for the industry to address all these issues, the Center for Energy officially opens the “Call for Papers” for mining experts to develop answers and observations that will help us improve our business operations and achieve the lowest cost per ton in our haulage trains, trucks and tyres.  

LOAD & HAUL ASIA 2012 is the only operations-focused forum gathering peers, proven solutions, expertise and technologies to help you minimise haulage costs, improve operational performance and achieve your production targets, particularly at this time when mining operators are targeting to double production targets next year. Register now!

Join us in Jakarta, Indonesia

1-2 August 2012


At the end of international conference, we aim to gain insights to help us drive our operational costs down and stay commercially profitable even during the time of severe fluctuations in raw materials, supply/demand trends and tyre availability.

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