Tag Archives: bulk handling

Tru-Trac continuing to troubleshoot conveyor belt issues for mining operators

With belt misalignment remaining the biggest headache for conveyor system operators across a variety of bulk material handling industries, Tru-Trac says it has evolved from this valuable niche into a full service conveyor solutions business.

Having patented and commercialised its belt tracker back in 1996, Tru-Trac has leveraged its engineering expertise and market knowledge into a comprehensive range of conveyor solutions – with a global sales and installation network. There remains, however, a ‘magic’ at the core of the business which, it says, continues to surprise customers: its deep understanding and expertise of belt misalignment solutions – belt trackers.

Shaun Blumberg, COO of Tru-Trac Rollers, highlights the serious disruption that belt misalignment on a conveyor can cause. The impact includes spillage, belt edge damage, structural harm, increased power consumption and increased labour costs. Ultimately, this leads to lost production, higher operating costs and even safety hazards.

From its local manufacturing base in South Africa, Tru-Trac has grown to serve markets nationwide and abroad – including some of the most sizeable equipment in operation. One of the world’s largest stacker reclaimers, which serves the coal sector in Germany, also experienced a Tru-Trac moment, according to Jonathan Rogoff, CEO of Tru-Trac.

“They were having significant challenges with belt misalignment – and told us they never had a belt tracker last more than a week,” Rogoff explains. “When we presented our proposed solution, they were sceptical – thinking we were either over-confident or naive.”

Leveraging decades of application data and its in-house engineering expertise, Tru-Trac enhanced its heavy-duty dual-return tracker into an extra heavy-duty (EXHD) model specifically tailored for this customer’s needs.

“This was a demanding application with the 2,300-mm-wide belt running at 9.6 m/s – close to the speed of some of the fastest belts in the world,” Rogoff says. “A year later, our product was still working well, leading the customer to standardise on this Tru-Trac solution.”

Closer to home, a mining company in Rustenburg recently had its production halted for two days after successive failures of numerous belt tracking products. After a site visit to assess the situation, Tru-Trac returned the following day with two of its belt trackers – to replace the five installed competitor products.

“Within 20 seconds, the belt centralised and the problem was solved,” Rogoff says. “Initially, our customer could not believe what he was seeing and was convinced the old problem would return when material was loaded. However, the belt remained true under full load, as we had predicted.”

Blumberg points out that there has been significant growth in the business over recent years, and the company has expanded its local manufacturing to punch above its weight on the global stage. In fact, within the industry, the brand has become synonymous with its product, to the extent that professionals often refer to any conveyor belt trackers as ‘Tru-Trackers’, the company claims.

After the success of its tracking solutions, it made sense to leverage its brand and expertise by diversifying into complementary conveyor solutions. Through its existing partnerships with international conveyor distributors, Tru-Trac began importing well recognised brands to augment its range. This includes belt scrapers and skirting rubbers as well as impact beds.

“This led to us building our own service teams to provide installation and maintenance support for customers, as we were now dealing with equipment that needed servicing,” Rogoff says. “The beauty of our belt trackers is that they are essentially ‘fit and forget’ solutions that need very little attention during their lifecycle.”

Today, there are about 50 Tru-Trac service teams working across South Africa and into the rest of Africa, to support customers. With this growth came an expansion of in-house sales teams, who work from branches in the main mining regions in South Africa and Africa

“This gave us more control over our own destiny allowing us to develop skilled customer-centric teams to service customers as a complete provider of mechanical solutions and services on conveyor systems,” Rogoff says.

Tru-Trac also now supplies its conveyor solutions to over 80 countries globally, including almost every mining country. At its facility in Centurion, near Pretoria, there are now over 100 employees on the manufacturing side alone.

The company’s in-house engineering and R&D capabilities have significantly expanded, with the size of its R&D department increasing fivefold over the past two years. This growth has enhanced Tru-Trac’s engineering and design capabilities, which include custom design and rapid prototyping, showcasing the company’s commitment to innovation and tailored conveyor system solutions.

Rogoff concluded: “One of the rewarding parts of our work is that we provide conveyor solutions that really do deliver what customers require. We still regularly have customers whose jaws drop in disbelief when we solve challenges which they have unsuccessfully been grappling with for years.”

Martin Engineering restructures Italian business to boost service and growth prospects

Martin Engineering says it has restructured its Italian business and relocated to a new purpose-built facility to boost customer service and accelerate growth.

The move heralds a new chapter for the Italian branch of the US engineering firm, which supplies belt conveyor products and material flow aids to bulk handling and material processing companies to boost production efficiency and workplace safety.

Martin Engineering has been present in Italy for more than 30 years, supporting the country’s producers of coal, cement and aggregates. Moving to a new fit-for-purpose warehouse near Monza, northeast of Milan, allows the company to broaden its remit to solve material handling problems in various industries, it said.

The new location also enables Martin to bring a wider range of products to the Italian market, including the N2® remote monitoring system for conveyor belt cleaners, which enables maintenance teams to track conveyor belt cleaner blades on a mobile app. Also being introduced in Italy is Martin’s range of CleanScrape® belt cleaners, which, it says, are proven to last up to four times longer than standard cleaners with no retensioning or extra maintenance required after installation.

Restructuring the business means Martin Italy is now jointly led by Sales Manager, Matteo Manghi, who heads a team of sales engineers and service technicians, with Administration and Accounts Manager, Simona Farina, who is responsible for accounts, customer service and head office functions. Both Manghi and Farina report directly to Robert Whetstone, Martin Engineering’s Area Vice President for EMEAI (Europe, Middle East, Africa and the Indian subcontinent).

Manghi said: “It’s an exciting time for Martin Engineering in Italy as we now have the capability to apply our bulk handling expertise in new ways to solve problems for customers in a broader range of industries. Our new facility gives us the space to assemble and distribute our products for installation by our team of trained specialist service technicians.”

Farina added: “Martin Engineering has a long history in Italy and the move to our new headquarters represents a new beginning for our Italian business. We are now in a strong position to provide better service to our existing loyal customers and we have a solid base from which to grow our business into new segments of the market and bring new customers on board.”

Whetstone concluded: “Italy has been a key market for Martin Engineering and we firmly believe there are opportunities for growth. Investing in our new office and warehouse facilities will allow us to bring a broader range of products and solutions to Italian customers. I am proud of what our Italian team has achieved through the transition and I look forward to future success supporting our customers.”

Continental to showcase digital conveyor technologies at SME in Phoenix

Continental is to showcase its innovative digital solutions and a comprehensive range of products specifically tailored for the mining industry at the SME MineXchange Conference and Expo, in Phoenix, Arizona, scheduled for February 25-28.

Attendees will be able to visit the booth to see the company’s latest advancements in rubber technology and learn more about its extensive offerings designed to enhance efficiency and reduce downtime in mining operations.

Specifically, Continental will highlight the following solutions in its booth:

  • Conti+: Conti+ integrates advanced technology to provide real-time monitoring, predictive maintenance and performance optimisation for conveyor systems;
  • Repair kits: Continental offers high-quality repair kits designed for quick and effective maintenance of conveyor systems. Repair kits can minimise downtime, ensuring that mining operations stay on track;
  • Industrial belts: Attendees can visit the Continental booth to see a range of industrial belts engineered for durability and optimal performance in mining applications. From heavy-duty to specialty belts, Continental’s solutions are built to withstand the toughest conditions in the mining industry, it says; and
  • Specialty hoses: Continental will present a comprehensive portfolio of specialty hoses for steam, mine spray and hydraulic applications. Continental hoses are designed to meet the unique challenges of mining environments, ensuring reliability and safety.

“We are focused on helping our mining customers maximise the life of their belts, conveying systems and hoses so they can work more efficiently and keep their operations running without interruption,” Michael Schroeder, Head of Product Management – Conveying Solutions, at Continental’s Industrial Solutions AMERICA, Sector ContiTech, says.

“Continental can support a wide range of industrial solutions needed for mining. Our premium products contribute to significant cost savings and operational efficiency, and we look forward to showcasing them to attendees at MineXchange.”

For example, Continental is currently working with Atlas Energy Solutions on its new 42 mile (68 km) Dune Express conveyor belt – provided by Continental – which will be the second longest in the world.

The electric conveyor will deliver sand throughout the Permian Basin of west Texas and New Mexico rather than putting it on trucks. This will be more efficient and will eliminate millions of truck miles driven across the Permian resulting in avoided traffic, accidents, injuries and fatalities on the roads used by trucks to deliver sand, it says. The two companies worked together on this innovative delivery method to help Atlas Energy Solutions accomplish their goals.

Superior Industries unveils enhanced conveyor idler for extra longevity

Superior Industries, Inc., a US-based manufacturer and global supplier of bulk material processing and handling systems, has announced what it says is the most significant redesign to conveyor idlers in decades.

This update is backed by a substantial $4.5 million investment in cutting-edge idler manufacturing equipment at its US production locations, the company says.

According to Superior Industries, these are the key innovations of the new idler design:

  • Ironclad weld joint at tube to end disc: a flush end disc prevents material entrapment between the roll and frame, while a weld bead is securely housed within the roll’s structure, ensuring added durability. This also comes with modern, robotic welding for greater weld penetration and extreme consistency;
  • Revamped designs of idler bearing seals: a decade of rigorous testing results in an unmatched bearing protection system, according to the company, with the lifespan of standard bearing seals surpassing all other models tested. The Premium Titanium® seal, in this case, provides extended longevity for demanding applications; and
  • Major upgrade to idler manufacturing:Improving industry-leading pace, Superior says it has achieved new heights in manufacturing speed. The manufacturing production rate of standard and custom idlers has witnessed a 35% increase, while the integration of robotic manufacturing ensures a level of consistency previously unseen.

Jason Adams, President of Superior, said: “Tens of thousands of Superior idlers are installed on our own conveyors every year, so roll performance really, really matters. The new idler exceeds our own high performance standards and we’re excited for other conveyor owners and operators to benefit from this upgrade.”

Metso to expand bulk material handling expertise with Brouwer Engineering buy

Metso says it has signed an agreement to acquire Brouwer Engineering, a privately-owned Australia-based company specialising in automation, control systems and electrical solutions for bulk material handling solutions.

Combining Metso’s extensive experience in bulk material handling equipment and service offerings with Brouwer Engineering’s electrical and control system capabilities will further strengthen Metso’s position to provide a more comprehensive range of solutions to its customers, it says. Additionally, the acquisition strengthens Metso’s bulk material handling services business in Australia, with potential to expand these capabilities globally.

Sami Takaluoma, President, Services business area, Metso, said: “This acquisition is an important step toward Metso Services’ ambition to strengthen our automation and control capabilities. Brouwer’s expertise complements Metso’s capabilities in large mechanical upgrade projects. Together, we will offer comprehensive service packages for bulk material handling equipment upgrades and ensure fast commissioning. We are delighted to welcome our new colleagues to Metso, and we look forward to starting a journey of collaboration to become our industry’s preferred services provider.”

Brouwer Engineering has extensive design and development experience with all key software and hardware platforms, and it delivers fit-for-purpose end-to-end solutions using all major PLC, SCADA, and HMI platforms.

Hu Sciberras, Managing Director, Brouwer Engineering, said: “We are excited about the acquisition and the opportunities it will bring. The acquisition is a great opportunity for our employees to leverage their technical expertise and as a part of Metso, our offering can be scaled up globally.”

Metso says it has been an industry leader in the bulk material handling industry for more than a century, with more than 8,000 machines installed globally across the mining and aggregate space.

The acquisition is expected to be closed in August 2023. .

Martin Engineering looks to shore up bulk material transfer with the Martin Transfer Point Kit

Martin Engineering, a leader in conveyor accessories, says it has reimagined the bulk handling transfer chute to reduce downtime for installation and offer more options for future modifications.

The Martin® Transfer Point Kit from Martin Engineering includes modular horizontal loading zone, settling zone and stilling zone configurations, providing easier installation and a wider variety of chute options while facilitating future upgrades, according to the company. The kit simplifies the installation process, reducing the amount of labour required for assembly and allowing the system to be pre-built prior to installation for reduced system downtime. The result is faster installation with less laboeur and shorter shutdowns, increasing the return on investment.

“This is a rugged one-kit solution designed to fit most standard conveyors and belt widths, regardless of what material is being transferred,” Dave Mueller, Conveyor Products Manager at Martin Engineering, said. “Our Center for Innovation is constantly looking for ways to engineer equipment with safety and our customer’s bottom line in mind. That’s why the kit doesn’t just streamline labour, time and production, but it’s also a logistical solution by shipping it in one crate.”

The Martin Transfer Point Kit is a heavy-duty horizontal enclosure for the loading zone. Each kit is either ordered as a loading zone, settling zone, or stilling zone. The width and length of the kit are determined by the receiving belt’s width and speed and the dust characteristics of the material being transferred. Dustier applications may require a longer settling zone.

This innovation solves three common problems. The first is that transfer chutes are normally shipped in different packages that sometimes don’t arrive at the same time. Upon delivery, inventory is stored until scheduled downtime, increasing the chance of loss or misplacement. Another problem is, for most new transfer chutes on the market, some components can be prepared and assembled beforehand, but, generally, new chutes need to be completely fabricated during downtime. The inability to build the structure before a shutdown increases the project budget and contributes to lost production time. The third problem is, after construction, horizontal transfer point chutes are commonly a single system that requires significant engineering and construction to be modified. Changes to existing transfer points can be challenging, but to accommodate new belt support equipment or adapt to increases in production, the chute is often raised or lengthened.

To address these problems, the chute sections are 1) delivered in a single crate with every component for assembly included; 2) able to be assembled prior to the shutdown and installation, saving time and money; and 3) fully modular, making future changes easy without expensive construction projects.

The transfer point system accommodates belt widths of 450-1,800 mm and an internal chute width of 228-1,498 mm. Each modular section is either 1.21 m or 1.82 m long and constructed of mild steel, 304 stainless steel or 316 stainless steel, with a thickness of 6.35 mm, 12.7 mm, or 19.05 mm to accommodate a wide variety of materials and conditions.

The taller loading zone controls air turbulence and connects to both the drop chute and settling zone. When cargo hits a belt with great velocity, fines and lumps splash up the sides of the belt. Without a properly sealed enclosure, the material will spill underneath the conveyor, creating a hazard, restricting access and fouling other components. The settling zone follows the loading zone and helps mitigate dust emissions. Dust is collected, mechanically filtered or settled back into the cargo stream prior to leaving the stilling zone and continuing as a conventional open air conveyor.

Listed under a single part number, the kit includes a chutewall weldment, wearliner assembly, wearliner plate, outer chute supports, top cover, tail panel/clamp/rubber sheet, installation hardware and an owner’s manual. The skirt seal is sold separately, since it is a single piece that runs the entire length of the chute and skirting is the most frequently replaced wear part in most transfer points.

“After installation, Martin Territory Managers or partner distributors are available to offer support,” Mueller added. “The feedback for the kit has been excellent. Customers get the heavy-duty Martin quality they’ve come to expect in a more convenient, efficient and sustainable package.”

PROK ready to highlight conveyor pulley and wear solutions at Expomin 2023

PROK, a leader in conveyor equipment manufacturing, is planning to showcase its range of engineered pulleys, PROK HDPE and ROXDUR wear solutions at the upcoming Expomin 2023 event in Santiago, Chile, from April 24-27.

Visitors to the PROK booth will have the opportunity to participate in live product demonstrations, view products in augmented reality, and experience PROK’s holographic display. This interactive display will allow visitors to explore PROK’s conveyor components in an entirely new way, it says.

PROK Chile General Manager, Andres Virot, said: “At PROK, we are committed to innovation and pushing the boundaries of conveyor component technology. Our team of experts has designed and manufactured products that have revolutionised the industry. We are proud to showcase our range of products at Expomin 2023, and we look forward to meeting visitors and demonstrating the capabilities of our conveyor components.”

One of those products on display is PROK HDPE (pictured), a high-performance non-metallic composite roller that has helped mining companies across the globe reduce costs and improve safety, according to the company. PROK HDPE includes dual-layer wear indicator technology which provides a proactive tool for improving roller maintenance scheduling. The lightweight construction also assists to avoid manual handling injuries when changing out rollers.

Martin Engineering sets ‘new standard’ in conveyor wear liner technology

Martin Engineering has introduced what it says is a new standard in wear liner technology with the Manufactured Canoe Liner.

Made from durable urethane moulded around a rugged steel plate to absorb impact and abrasion from the punishing bulk handling environment, the Manufactured Canoe Liner is expected to deliver extended equipment life, longer periods of dust and spillage control, improved safety and less maintenance, reducing the overall cost of operation, according to the company.

With the protective plate integrated directly into the urethane liner, the design delivers superior shielding of the skirt sealing system and chute wall from heavy, fast-moving cargo, it says.

“This is a shift in the engineering and role of wear liners,” Dave Mueller, Manager of Conveyor Products for Martin Engineering, said. “Like most conveyor components, the design has evolved into a component that is more effective, safer to maintain and more reliable.”

Previously, most wear liners were sheets of steel welded onto the internal chute wall of the conveyor loading zone. These protected the wall from the punishing effects of splashing, shifting and abrasive material. But since they are wear parts, periodic replacement of these early designs involved enclosed chute entry and hot work using a blow torch, which required certification and supervision, while running the risk of igniting explosive dust. The steel plates generally did not effectively protect the rubber skirt seal, leading to more frequent skirt replacements.

Moreover, the wear liner’s position often left a gap between the liner and the skirting, which captured small lumps of material that could damage the belt. These design issues resulted in excessive downtime, premature equipment replacement and extra labor to monitor and maintain.

The Martin Manufactured Canoe Liner is an engineered urethane strip moulded directly around a protective steel plate.  The unique approach avoids the bonding issues common to previous designs, preventing urethane separation from the plate that could damage the belt and enclosure, the company says.

Each section has a series of 2 in (51 mm) long bracket holes for vertical adjustment. The bottom “belt side” of the liner is cut to an optional 20º, 35º, or 45º angle to maximise belt sealing and protect the softer material of the skirt seal from premature wear. Depending on the weight and abrasiveness of the conveyed material, customers can choose a urethane thickness of 1.3-2 in (33-51 mm).

Delivered in storable cartridges 48 in (1,219 mm) in length, the units can be cut on site to match the needs of the chute. The cartridges can also be installed vertically on top of one another to accommodate taller chute walls or raised enclosures. Like the lower sections, the upper units can be adjusted as well, Martin Engineering added.

As material gradually erodes the Manufactured Canoe Liner, the bottom trough angle continues to protect the skirting. If there are significant gaps between the belt and liner, each individual cartridge can be adjusted by a single technician using a socket wrench, the company claims. Replacement is carried out by removing the worn units, mounting each new cartridge and cutting the end piece to fit. This reduces what used to be a one or two day job to one to two hours, according to the company.

“Martin is constantly seeking to innovate every aspect of the bulk handling process with the goal of making it safer, more effective and easier to maintain,” Mueller said. “The introduction of the Manufactured Canoe Liner achieves our objectives by improving efficiency and lowering the cost of operation.”

BEUMER Group and FAM ‘the right project partner for all challenges’, Hotz says

In June, BEUMER Group completed the acquisition of the FAM Group of Magdeburg, Germany, in the process, increasing its conveyor system and loading technology offering and becoming a significant player in the in-pit crushing and conveying (IPCC) space.

Close to six months after closing, IM put some questions to Stefan Hotz, Director Sales FAM Group, to find out how the integration of the two companies is going and how the transaction should strengthen the enlarged company’s market position in the minerals and mining sectors.

IM: Where – regionally – do you see the most opportunities in the mining sector for the integrated company to gain market share? South America has been a particularly strong market for FAM in the past; do you see this as a big opportunity for the integrated group?

SH: FAM – member of BEUMER Group – is one of the world’s leading full-range suppliers of bulk handling and processing systems. The customers come from more than 80 countries and the solutions are successfully in use everywhere. With BEUMER’s acquisition of the FAM Group, we were able to expand our portfolio to include bulk material handling, crushing technology as well as conveyor technology. Customers receive solutions from a single source with which they can work efficiently. In addition to engineering and project execution competences, FAM also brings the complete value chain, including after-sales service, to the BEUMER Group. This makes us a sought-after partner worldwide.

Of course, South America is a strong market, especially countries with iron ore and copper resources such as Brazil, Chile and Peru. For example, in Peru, the mining companies are transporting iron ore to the stockyards, which are often located at distances of several kilometres from the port. Callao Port, for example, is home to the most modern and largest ship loading terminal in the country. A reliable and safe connection for material transport is required, which at the same time ideally prevents the emission of particles into the atmosphere. Conveyors are the preferred solution here that can be individually adapted to the respective environmental and technical requirements and to the topography, as well as protect the environment from dust emissions.

IM: Are you expecting to increase your manufacturing capacity or acquire new premises to fulfil this demand, or do you have enough capacity to serve these growing markets in the near-to-medium term?

SH: The FAM Group has subsidiaries in Brazil, Chile, China, Canada and India. In addition, there are the numerous subsidiaries and agencies of the BEUMER Group. This means that we are very well positioned worldwide and can optimally serve these growing markets in the short to medium term. In our project business it’s a must to be, on the one hand, close to our customers but, on the other hand, using our global resource network and know-how to balance workloads. But, of course, we expand the network of our subsidiaries if we notice that we cannot serve certain regions with the desired reliability.

IM: Is the company already pursuing mining projects that involve the solutions/expertise of FAM and BEUMER Group? Can you elaborate on what type of projects these are and what solutions they involve (ie overland conveyors, bucketwheel excavators, spreaders, etc)?

SH: Yes, we are already in the process to support our mining clients from one hand, integrating FAM and BEUMER solutions. For example, we are working on one large project for gold extraction, where BEUMER is providing the long-distance overland conveyor and FAM supports the client with spreader technology to dump overburden. We have combined this with an attractive digitalisation and service package to ensure optimisation of the client’s total cost of ownership.

IM: With this transaction the company has effectively become a major player in the IPCC space. Do you see this as a major growth area for BEUMER Group going forward?

SH: In general, with this new setup, we expand our product portfolio and we are significantly strengthening our market position worldwide, especially in the field of large-scale mining equipment. But the most important thing is that we can provide our customers with even more comprehensive support over the whole value chain from pit to port, including digitalisation and service for our projects. Due to our many years of experience, we also support our clients in complex upgrade, lifetime extension and refurbishment jobs for existing machines. This means we avoid interfaces and customers now have only one contact.

IM: Do you see your ability to offer not only the solutions but also the engineering and design expertise underpinning these solutions as differentiating your offering from your competitors in the IPCC market? What other differentiators will serve you well in winning business in this market?

SH: I don’t want to say much about our market competitors, but I am sure that together with FAM we stand out positively from the market, specifically for continuous soft rock and overburden IPCC applications. Furthermore, we have long-term partners with whom we are serving the needs of our clients in terms of mine planning and pre-engineering. This ensures that we are defining  a solution for the client with a focus on CAPEX and OPEX optimisation. Specifically for IPCC applications, we are convinced of adding value during the first months of operation by providing integrated training and service packages to ensure successful implementation of continuous mining systems after commissioning. In doing so, the specialism is characterised in particular by distinctive engineering at a high level.

IM: What other areas of your business do you see growing with the need for mining companies to move away from their reliance on diesel-powered mobile mining equipment for material transport? Are you seeing more interest in your overland conveyor portfolio, for instance?

SH: Our belt conveyor systems are used successfully all over the world. They solve complex transport problems for any bulk material and are suitable in many cases as an economic alternative to truck transport. While the basic task – to transport bulk materials from the mine to the final discharge point – appears very comparable, no two systems are alike. The range of potential materials to be conveyed, alone, requires individual consideration of the components to be used in terms of wear resistance or the maximum permissible gradients of a conveyor. In addition, above all, the mass flow to be transported and the height to be overcome determine the dimensioning of the drive unit of an overland conveyor. Plants at high altitudes pose a further challenge. At altitudes above 4,000 m, as is often the case in the Andes for example, it must be taken into account that the air pressure and, thus, the density of the air decreases with increasing altitude. This reduces both the cooling effect and the insulating capacity of the air. We are the right project partner for all these challenges.

FLSmidth refocuses equipment portfolio in aim to become the leading METS player

FLSmidth has announced a strategic change to enhance long-term profitability and to accelerate growth in its core Mining business, which could see it offload its portfolio of port systems, stockyard equipment, “standard bucketwheel excavators”, “continuous surface mining equipment”, and mine & overland conveyors.

The decision, which comes seven weeks after closing the acquisition of TK Mining, is the result of a planned strategic review of the combined FLSmidth Mining and former TK Mining technology product portfolio against FLSmidth’s long-term strategic direction and ambitions, FLSmidth said.

“With this change, FLSmidth is creating a new platform for improved profitability, lower risk and strategic focus on the core value creating parts of the Mining business,” it said.

The company clarified that the overall strategic rationale for the acquisition of TK Mining has been reconfirmed and the acquired business is overall in line with its expectations. Furthermore, the cost synergy potential from acquiring TK Mining has been revisited, and further cost synergies have been uncovered, FLSmidth claimed. Additionally, the pace to realise these synergies will be accelerated.

The annual cost synergy target is now expected to be around DKK 560 million ($74 million), instead of the previous DKK360 million, with the annual cost synergy run-rate now expected to be achieved by end of 2023 (previously first two years after closing of the acquisition).

The aforementioned review intended to assess all combined mining activities and products from a strategic, financial and sustainability perspective against FLSmidth’s long-term strategic direction and ambitions, the company said. As a result of the strategic review, it has been decided to split the Mining business into two separate segments for operational and reporting purposes:

  • A continuing Mining segment focused on profitability, growth and sustainability;
  • A new Non-Core Activities segment, where activities will be fully exited either by way of divestment or wind-down of the order backlog.

The new segment split will ensure sharpened strategic focus and stronger execution of the continuing Mining activities that are key to accelerate long-term profitability and growth for FLSmidth, it said. At the same time, dedicated focus and resources will be allocated to the Non-Core Activities to ensure transparency and effective execution of the divestment or wind-down and to minimise losses from these activities.

Group CEO, Mikko Keto, said this split would reduce engineering risk, while setting the company up to become the leading technology and service solutions supplier to the global mining industry

“For years FLSmidth has been focused on engineering and large-scale projects with inherently high risks, challenging execution and volatile profitability,” he said. “We are now taking decisive action to further strengthen the focus on our core business, to ensure stronger execution and to drive value creation. The world must undertake a significant green transition over the coming years and the mining industry plays a crucial part in this. With today’s strategic change, FLSmidth is better positioned than ever before to become the leading technology and service solutions supplier to the global mining industry.”

FLSmidth’s Mining segment is dedicated to provide customers with best-in-class full flowsheet technologies and services solutions to enhance their productivity and sustainability agenda. A key focus for FLSmidth Mining is to enhance profitability through a significant service and aftermarket potential, low execution risks, high technology content and process know-how, and a strong sustainability impact

This could see the company offer single services or products, as well as projects with lower risk consisting of product bundles with related performance guarantees in accordance with FLSmidth’s risk management approach.

The continuing Mining segment encompasses, but is not limited to, FLSmidth’s key products within conveying (former TK Mining’s conveyor systems); milling & grinding (including former TK Mining’s high pressure grinding rolls); crushing & feeding; separation, thickening & filtration; pumps, cyclones & valves; sizers, screens & centrifuges; pyro-processing; sampling, preparation & analysis; and mine shaft systems.

The Non-Core Activities segment comprises specific loss-making mining activities and products that are no longer deemed to be of core strategic importance to FLSmidth, the company said. The selection criteria for these activities and product types have been that either they offer limited or no aftermarket potential, are characterised by high execution risks, are highly engineered and/or lack standardisation, and the company sees no viable commercial model for FLSmidth to turn these around. Furthermore, these products are not aligned with or important for FLSmidth’s sustainability agenda, it said.

Consequently, FLSmidth will either divest or wind-down the following activities and products:

  • All legacy FLSmidth and former TK Mining brands: port systems, stockyard equipment and standard bucketwheel excavators;
  • Legacy FLSmidth Mining brands: continuous surface mining equipment and mine & overland conveyors; and
  • Former TK Mining activities: oil extraction technology and aggregate products.

Existing contracts and ongoing activities in the order backlog will be executed and honoured, if not divested, yet FLSmidth will not take new orders for the Non-Core Activities segment, it said.

A designated organisational structure will be established to oversee the Non-Core Activities segment, with the head of the segment reporting directly to the group CFO. Around 450 employees are expected to be included in the Non-Core Activities segment.

The Non-Core Activities segment comprises of an order backlog of around DKK3.6 billion as of the end of the September quarter of 2022, of which approximately half originates from FLSmidth and half from the former TK Mining. The vast majority of the order backlog relates to capital orders.

The Non-Core Activities order backlog is expected to be divested or wound down within the next three years with an expected total EBITA loss over the period of around DKK1.2 billion, FLSmidth said. The estimate is based on historical performance and costs associated with the wind-down or divestment decision. This estimate is subject to uncertainty due to the nature of winding the business down and may change depending on which of parts of the business are divested, it clarified.