The impact of engineering skills outsourcing on asset maintenance costs at South African coal mines

Abstract

This research explored the impact of engineering skills outsourcing (ESO) on asset maintenance costs in South African coal mines. It analysed documentation from relevant coal mining organisations, selected mines or operations, including maintenance cost data and assessments of owner-maintained diesel mobile fleet equipment to understand the drivers of ESO, how it is implemented and how it affects skills development, equipment performance and asset maintenance cost control. The findings revealed a complex dynamic that, while ESO provides access to specialized expertise for improved turnaround times, it also introduces risks related to internal skills erosion and maintenance cost inefficiencies. Notably, frequent ESO engagements did not positively influence maintenance costs or equipment availability. A key insight was the immediate operational benefit of equipment uptime achieved through access to external expertise, often without thorough maintenance cost implications consideration. Engineering skills outsourcing also enables access to OEM-level diagnostics and technical capabilities, it however inadvertently contributes to a decline in internal maintenance proficiency. Over time, the ESO reliance stagnates internal maintenance teams’ development efforts (upskilling and exposure to modern diagnostic tools), creating a cycle of dependency. The study also presents systemic challenges within local artisan training institutions, which are ill- equipped to keep pace with technological advancements in diesel mobile equipment maintenance and diagnostic demands. Outdated curricula, limited access to modern tools, and weak industry collaboration hinders development of adequately skilled engineering personnel. These gaps exacerbated the need for engineering skills outsourcing thus limits the mines’ ability to manage maintenance costs proactively. The research concluded by recommending a hybrid approach, leveraging external expertise while embedding deliberate internal skills transfer and measurable maintenance cost control strategies