Reliability is widely used as a performance indicator of mining equipment to achieve a cost-effective maintenance plan. Reliability is a function of time as well as environmental and operational factors. Applying an adequate model by taking into account the mentioned factors is vital to ensure an accurate estimation of reliability characteristics. The aim of this study is to investigate the application of mixed frailty model to describe both observed and unobserved heterogeneity in reliability analysis of mining equipment. The capability of the model is assessed using field data from a fleet of dump trucks in an open-pit mine. The results indicate that the proposed model is superior to the traditional Cox model when data are heterogeneous. The results also show that the operator's skill and road conditions have a significant effect on the reliability of dump trucks.