NEWS

A cylinder may look cheap on paper. At a remote, high-altitude mine, the real cost often starts after the cylinder is purchased.

Transport, loading and unloading, storage, inventory management, supplier coordination—and the risk of delayed deliveries—all become part of the oxygen bill. For a mine operating for years, these recurring costs can matter far more than the price printed on a cylinder.

Cylinders work well — until logistics become the problem

Gas cylinders still make sense for exploration projects, temporary construction, low or irregular oxygen demand, and emergency backup. The initial investment is relatively low, and there is no need to install an oxygen-generation system onsite.

The calculation changes when oxygen demand becomes steady and deliveries become frequent.

At a remote mine, every delivery depends on roads, vehicles, weather and supply schedules. A longer transport distance does not simply add freight cost; it also makes the supply chain harder to manage.

A containerized PSA oxygen plant takes a different approach. Instead of repeatedly transporting oxygen to the mine, it produces oxygen onsite from compressed ambient air. The cost structure shifts toward electricity, maintenance and site infrastructure.

That does not mean PSA is automatically cheaper. The economics depend on oxygen demand, electricity or diesel costs, transport distance, operating period and site conditions. But when demand is continuous and oxygen logistics are expensive, onsite generation can become considerably more attractive.

High altitude changes the engineering equation

Altitude is not just a location detail—it affects how an oxygen plant should be sized and configured.

Lower atmospheric pressure and air density influence compressor performance and system power requirements, so sea-level specifications should not simply be transferred to a high-altitude site.

ZOY’s published containerized PSA specifications provide altitude-specific data. For example, its 10 Nm³/h model is listed at 16.5 kW under standard conditions and 19.25 kW at 4,000 m, with a published ambient range of 0–45°C and 80–95% RH. The point is not the 4,000 m figure itself. It is that altitude needs to be part of the engineering calculation from the beginning.

ZOY also has practical high-altitude experience. In 2025, a containerized PSA oxygen generator was deployed at the 3,500 m-high Hongyuan Grassland in Sichuan, China, providing onsite oxygen during a large-scale event.

What if the oxygen plant can do more than make oxygen?

At a remote mine, energy consumed by oxygen production does not necessarily have to end as waste heat.

ZOY’s containerized systems include heat-recovery options, with published hot-water capacities of 6 tons/day for the 10 Nm³/h model under standard conditions and 7 tons/day at 4,000 m. For the 20 Nm³/h model, the figures are 8.6 and 14 tons/day, respectively.

For a mining camp, recovered heat can potentially support hot-water demand for showers, accommodation and other daily operations. Solar PV can also be integrated to supply part of the plant’s electricity demand, with the actual benefit depending on the site’s solar resource, load profile and power costs.

This is where the economics become more interesting: the oxygen plant is no longer viewed only as another power consumer, but as part of a broader site utility system.

So which option makes more sense?

There is no universal payback period or transport-distance threshold that works for every mine. The right choice depends on the entire operating environment.

Cost & Operational Factor	Gas Cylinders	Containerized PSA Plant
Initial Investment	Lower	Higher
Regular Oxygen Deliveries	Required; ongoing logistics	Greatly reduced
Long-Term Steady Demand	Less attractive as logistics accumulate	Can become more attractive over long operating periods
Remote-Site Deployment	Highly dependent on roads and supply chain	Onsite production with local power
High-Altitude Design	Supplier-dependent	Altitude-specific sizing and configuration
Additional Energy Value	None	Heat recovery and solar PV integration possible
Backup Strategy	Oxygen stored onsite	Backup power and emergency cylinder stock recommended for critical supply

For a short-term project or low oxygen demand, cylinders may remain the sensible choice.

For a long-term mine with steady consumption, difficult transportation and suitable power infrastructure, a containerized PSA plant can improve the economics by reducing the need for repeated oxygen deliveries.

And the most resilient solution does not have to be PSA versus cylinders. PSA can serve as the primary oxygen source, while cylinders remain available for emergencies and backup power protects continuity where oxygen supply is critical.

In the end, the better question is not:

“How much does one cylinder cost?”

It is:

“What will it cost to keep oxygen reliably available for the entire operating life of the mine?”