Direct Costs

Corrosion directly costs the global economy USD$2.5 TR/ year (or $80k / second!) in material, labour and equipment [NACE Impact Study 2016]. ICE often finds that direct corrosion costs are embedded in maintenance budgets (or other) and clients do not have transparency on what their financial risks are. The lack of visibility and data-informed planning can cause unexpected budget variance.

Once we start to measure it, ICE Dragon sees a wide variation in the Maintenance budgets for operating teams due to corrosion but we have seen a range from $1-10M / yr. However, this number is a function of many factors: ore type, location, geography, water source, design, plant age/size etc.

Companies that are unable to manage the hidden degradation risks to their critical assets will have more to lose. They will:

• Have asset failures
• Experience production impact
• Impact their social license to operate
• Create perceived risk for shareholders

Indirect Costs

ICE has found that indirect costs for our clients (e.g. from production shutdowns, clean up costs etc) can be at least a similar order of magnitude versus direct costs – if not significantly higher and again these vary. Examples of indirect costs include:

• One process tank failure, partial circuit SD = $5M
• Single pipe failure in an autoclave circuit = $50M
• Production losses from corrosion failures = $15-20 M/yr (one mine)

Companies who successfully manage physical asset degradation risk are winners. They will:

• Be risk informed
• Have a transparent and predictive view to performance and costs
• Optimize decision making in line with their Sustainability goals
• Be more resilient

Addressing risk with good corrosion management

Companies that are unable to manage the hidden degradation risks to their critical assets will have more to lose. They will:

• Have asset failures
• Experience production impact
• Impact their social license to operate
• Create perceived risk for shareholders

Companies who successfully manage physical asset degradation risk are winners. They self-report that they are:

• Risk informed
• Have a transparent and predictive view to performance and costs
• Optimize decision making in line with their Sustainability goals
• Are more resilient