There has been a lot of speculation in the market since Caterpillar acquired Bucyrus on where further consolidation in the industry could come from, particularly with regard to any move into underground mining by Komatsu Ltd. This question has now been answered, with the announcement by Komatsu and GE Mining, a division of GE Transportation, that they have formed “a new collaboration to develop next generation mining equipment.” The statement said: “By combining their expertise in mining equipment and propulsion systems, the companies will help meet the needs of customers and partners worldwide, with an initial focus on developing solutions to increase customer productivity and safety for underground mines.”

GE had already taken its step beyond its core involvement in drive systems for mining machines, with its purchases of Industrea and Fairchild in 2012. The new company, Komatsu GE Mining Systems, LLC, will be located at the GE Transportation facility in Erie, Pennsylvania, and operations will begin in April 2014. Komatsu and GE will each own 50% of the new company.

Komatsu and GE Transportation have already been partners in Komatsu electric mining trucks for use in open-pit mines for a long time, with GE supplying the electric drive systems. The companies stated: “By further building on the existing partnership, the new company will combine GE’s electric power expertise, electric drive systems, and battery technologies with Komatsu’s vehicle and ICT technologies for mining equipment to deliver innovative solutions to global mining customers.” GE was a relative newcomer to the actual mining machines market, and a tie-up with Komatsu gives this new underground equipment venture access to Komatsu’s extensive dealer network, and relationships with major surface mines, many of which have associated underground operations, or are planning underground expansion in the future. Komatsu through the JV gets access to the vast resources and capital of a company the size of GE. It is interesting that ICT (Information and Communication Technology) is also mentioned. Komatsu owns Modular Mining, and together they developed the FrontRunner Autonomous Haulage System (AHS), which has led the drive to wider surface truck automation in the Pilbara. This automation expertise is now likely to be applied in the underground space.

Komatsu told IM: “Over the long term, we see the importance of the underground mining business. We introduced the Autonomus Haulage System as a super Dantotsu – a Japanese term meaning unique and unrivalled – product in open-pit mining. Komatsu would also like to enter the underground mining market with newly developed Dantotsu products. We believe that it will be possible to launch newly developed next generation mining equipment based on the knowledge and experience of both companies.”