Tag Archives: Epiroc

Epiroc M&A likely to continue, Per Lindberg says

The President and CEO of Epiroc, Per Lindberg, says the mining equipment maker is likely to continue making acquisitions as it strives for long-term growth over the latest business cycle.

In the company’s first full year of operation, Epiroc has, among other transactions, acquired a minority stake in mining autonomy major ASI Mining, agreed to buy rock tools manufacturer Fordia, and purchased Sautec.

Lindberg said in the company’s December quarter results that Epiroc is targeting to grow at least 8% per year on average over a business cycle.

“While we grew well beyond that in Q4 and in 2018, we believe we continuously need to make acquisitions to secure long-term growth as well as access to new technologies, markets and geographies,” he said.

On the recent Fordia, New Concept Mining and Sautec buys, Lindberg said Epiroc expected strengthened positions in exploration, rock reinforcement and service, and an additional SEK 1.2 billion ($132 million) in annual revenues.

In the December quarter, Epiroc said its orders received increased 17% to SEK9.47 billion, revenue jumped up 25% to SEK10.56 billion and its operating profit went from SEK1.53 billion to SEK2.16 billion, including costs related to the split from Atlas Copco and change in provision for long-term incentive programmes of net SEK8 million.

Lindberg reflected on this quarterly performance, saying: “We have been able to ramp up our capacity in manufacturing and service to support our customers, and revenues reached a record SEK10.56 billion, up 19% organically.”

He added: “In our first year as Epiroc we achieved strong growth in both top and bottom line, in parallel to a successful split and introduction of the new company. Reported orders and revenues increased 16% and 22%, respectively. Our operating profit increased by 25% and the operating margin, adjusted for split costs and provision for long-term incentive programmes, increased from 19.4% to 20.3%.”

Lindberg said customer demand for Epiroc’s equipment, services and tools remained at a good level during the quarter. “In mining we continue to see that the majority of the equipment orders are for expansion, including also some orders for greenfield projects,” he said, while aftermarket business was supported by high activity among its customers, leading to strong growth.

During the most recent quarter, Epiroc launched the second generation of its battery-operated equipment at an event in Örebro, Sweden.

Lindberg said the event created strong interest from Epiroc’s customers and orders have already started to come in.

In terms of the future technology transition in mining, in general, Lindberg said: “Our customers are ready for a major technology shift towards more automation, digitalisation and battery power.

“While the complete transition will take time, it is exciting to already now see the positive customer reactions.”

Looking into 2019, Lindberg said: “We will continue to focus on improving our customer offerings, our efficiency, agility and resilience. These are, and will continue to be, the strengths of Epiroc.”

Anglo American selects Epiroc drilling equipment for Quellaveco copper project

Epiroc has been awarded a “significant” order from Anglo American for its new copper mine in Moquegua, Peru, Quellaveco.

The diversified miner has ordered multiple drill rigs and related equipment to be used at the planned open-pit copper mine as it looks to build an operation with optimal safety, productivity and efficiency, Epiroc said.

The order totals about $44 million, with most of the contracted value booked in the December quarter of 2018 and a smaller portion booked in the current quarter, Epiroc said.

Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, said: “We are proud to once again team up with Anglo American and play a key role in making sure that its new mine in Peru is operated in the most productive, safe and cost-efficient manner possible.”

The order includes Pit Viper 351 and SmartROC D65 drill rigs, BenchREMOTE remote operator stations (pictured), rock drilling tools and HB 10000 hydraulic breakers.

“The machines incorporate state-of-the-art technology features,” Epiroc said, adding that operators are, for example, able to run rigs remotely from a safe distance.

Delivery of the machines will start in early 2020 and continue through 2021, in line with Anglo American’s plan of first copper production during 2022.

Fluor is carrying out the project build at Quellaveco as part of an EPCM contract. With a reserve of 1,300 Mt at 0.58% Cu, Quellaveco is expected to have a 30-year mine life at an average production capacity of 127,500 t/d. This could see the mine produce around 300,000 t/y of copper.

RCT sensor solution passes the test at WA Goldfields mine

RCT says it has developed a monitoring system to improve underground mining operations at a gold mine in Western Australia’s Goldfields.

The miner approached RCT’s Kalgoorlie-based staff to develop a way to monitor the project’s ore passes to ensure they did not get blocked by larger rocks during the transfer of material.

The ore passes – now used to dump waste – are vertical chutes used by the mine’s Epiroc MT6020 haul trucks to dump material to backfill an old stope.

RCT subsequently developed the ore pass monitoring system consisting of a VEGAPULS 69 radar, spanning the 91 m deep pass, and a VEGAMET 391 measurement display to indicate at what depth a blockage may occur.

The VEGAPULS 69 is a sensor for continuous measurement of bulk solids under different process conditions, while the VEGAMET 391 is suited to simple control tasks in level, gauge and process pressure measurements, as well as for inventory management and remote enquiry, according to its manufacturer VEGA.

The display was designed to use its readings to control an associated traffic lamp assembly on the wall of the mine to advise mine staff whether material had been successfully transferred.

RCT said: “Once the system was implemented, the mining company introduced a procedure for operators to ensure the traffic lamps changed back to green after tipping to indicate the pass is clear of material.

“RCT’s technicians also installed a suppression field in the first 20 m of the ore pass and directly above it to stop sharp edges in the pass bouncing echoes and falsely tripping the sensor.”

RCT Kalgoorlie Branch Manager, Rick Radcliffe, said the monitoring system can significantly reduce the downtime associated with blocked ore passes.

“If the pass becomes blocked then operators may not notice until the entire pass is filled up with material and, at that point, it will take a significant amount of time to clear the pass,” he said.

“The monitoring system ensures blockages are identified and cleared immediately.”

Kirkland Lake Gold’s Macassa mine on the charge with battery-electric machines

The use of battery-electric equipment at Kirkland Lake Gold’s Macassa operation in Ontario, Canada, is on the rise, according to the latest investor presentation from the gold mining company.

Macassa now has two of Artisan Vehicles’ battery powered Z40 trucks (pictured) working at the gold mine, in addition to 22 battery-powered LHDs provided by companies including Epiroc and Artisan, the company said this week.

This is part of a mining fleet that also includes six 20 ton (18 t) haul trucks and two production drills.

In addition to this, the gold mining company has been using at least one Artisan A4 LHD at its Taylor operation, also in Ontario.

Macassa, one of the company’s gold-production engines, is expected to have produced 220,000-225,000 oz of gold in 2018, but a future mine expansion could lead to annual output rising to 400,000 oz in 2022.

The company uses a combination of underhand cut and fill (~65%), sub-level long hole stoping (~25%) and overhand cut and fill (~10%) to mine the orebody at Macassa.

You can learn more about the battery-electric fleet being used at the Macassa operation at The Electric Mine event in Toronto, taking place on April 4-5. Andrew Schinkel, Senior Electrical Engineer at the Macassa Mine Complex, will present ‘Powering up Macassa: operating a major battery-electric fleet at a deep underground mine’ at the event. For more information, please click here.

Mine development ahead of schedule at Lundin Gold’s Fruta del Norte project

Lundin Gold has reached the orebody at its Fruta del Norte project in Ecuador, with mine development tracking ahead of schedule.

The Toronto and Stockholm-listed company said it has completed 4.5 km of underground mine development so far, with level development having now commenced.

In the construction update on the 3,500 t/d underground project, the company said overall engineering was 85% complete, with project construction at 45% completion.

Ron Hochstein, Lundin Gold’s President and CEO, said: “Our team has reached and, in some cases, exceeded the project’s targets, all while maintaining excellent safety standards. With 70% of our capital expenditure committed and detailed engineering nearly done, Fruta del Norte is on schedule to meet its target of producing first gold in the fourth (December) quarter of this year.”

Lundin Gold said the majority of large process plant mechanical equipment was now on site, while 22% of powerline infrastructure was finished. The company noted it had clocked up more than 3 million manhours without a lost time incident.

Development

Lundin Gold reported that the K’isa decline was completed on December 9, 2018, after 2.1 km of total development, and transitioned to production level 1170. Production level 1195 began on December 7, 2018 and a total of 330 m of level development on two levels has been completed. December average advance rates in K’isa were 9 m/d, versus a target of 7.1 m/d.

“The Kuri decline is at 2.07 km of total development and is progressing towards lower production levels in the mine. This decline was completed this month. December average advance rates in Kuri were 5 m/d, versus a target of 4.2 m/d,” Lundin said.

“Overall, advance rates in both declines exceeded the plan by 11% due to better than expected ground conditions and lower than anticipated water inflows.”

Lundin Gold said it is preparing the first stages of transition to owner operations and its mining fleet, which includes Epiroc drills and bolters and Cat scooptrams and trucks, has started to arrive at Fruta del Norte.

Process plant

Process plant concrete foundations (pictured) are 62% complete and structural steel erection is progressing as planned, the company said. The remaining mechanical equipment is expected to be on site this quarter and installation of the carbon-in-leach (CIL) circuit and grinding mills has started. Commissioning of the process plant is still on track to begin in September quarter of this year.

In October 2017, Lundin Gold awarded the long-lead time grinding equipment packages, including the SAG and ball mills (complete with motors) and the flotation and filtration packages to Outotec Chile SA. The gravity mill, CIL and detox tanks, and ADR plant and gold room packages were awarded to FLSmidth USA Inc. TelSmith will provide the crushing packages for both the process plant and aggregate quarry crushers, while ABB has been awarded switchgear and substation equipment and transformers packages.

With process plant engineering substantially complete, engineering efforts are now focused on the paste plant – where concrete works have begun – and water treatment plant facilities, Lundin Gold said.

Tailings

The company successfully negotiated the Mountain Pass Quarry Exploitation Agreement with the local government in the December quarter of 2018, and extraction of aggregate materials began shortly after. Material from the quarry was necessary to move forward with the construction of the tailings storage facility (TSF).

Access roads and the polishing pond were completed in the December quarter, while construction advanced on the surface water perimeter diversion ditches around the TSF.

When fully ramped up, Fruta del Norte is expected to produce 325,000 oz/y of gold at an all-in sustaining cost of $583/oz over a 15-year period.

Epiroc and Ericsson connect on 5G and LTE technologies for mining

Epiroc has signed a cooperation agreement with leading communications technology provider Ericsson to jointly help mining companies achieve optimal wireless connectivity in their operations through Long Term Evolution (LTE) and 5G technologies.

Key advantages of LTE and 5G solutions compared with other wireless solutions include better coverage, higher reliability and stronger security, especially when machines are in the same area and share information, according to Epiroc.

The technology, which is for both underground and open-pit mines, has already been tested on Epiroc’s machines at the company’s test mine in Kvarntorp, Sweden, with further testing scheduled before providing solutions to customers.

Epiroc said: “Mining companies are increasingly seeking to digitalise and automate their operations to increase productivity, enhance operator safety and lower cost. This includes, for example, remotely operating machines from a control room, and collecting machine performance data to optimise use of the equipment.”

All of this creates a need for reliable, high-performance wireless connectivity at the mines, it said.

Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, said the mining OEM is happy to team up with Ericsson so that its mining customers can get the most reliable and high-performing wireless connectivity possible.

“This is a crucial step in our ongoing work to ensure mining customers reap all the benefits, including higher productivity and better safety, made possible by digitalisation and automation,” she said.

Åsa Tamsons, Ericsson’s Senior Vice President and Head of Business Area Technologies & New Businesses, said cellular technology and the introduction of 5G is critical to realising the full value of digitalisation and automation “for smart industries”.

“By combining our expertise in connectivity and Epiroc’s cutting-edge technology in mining equipment, we will be able to ensure stable and secure mining operations, leading to increased utilisation, improved productivity and reduced costs.”

This connectivity tie-up follows a recently-signed agreement between Sandvik and Nokia to further develop solutions for private LTE and 5G technology.

Aitik gets connected to LTE network as Boliden looks at 5G future

Boliden has, for the past few years, been testing out 4G and 5G networks at its mines in the Nordic region and recently went live with 4G (LTE) network services at its Aitik open-pit copper mine in Sweden, Fredrik Kauma, Project Manager, told attendees at the recent Mines and Technology conference in London.

The company, one of the mining sector’s leaders when it comes to employing innovative technology, installed its first underground Wi-Fi network in 2013 and has since come a long way on this connectivity journey.

Today, all of Boliden’s mines have complete Wi-Fi coverage, with the network consisting of some 3,000 installed access points and additional hardware, Kauma said. The company uses this for voice communication and positioning, but also other services such as remote control, machine-to-machine interactions and general data or information access.

In 2016, the company installed a small 4G network in one of its underground mines. Now, multiple upgrades later, the network includes the latest 4G features, in addition to elements considered “borderline” 5G, Kauma said. He credited a close co-operation with Ericsson and its research organisation for this installation as well as the Swedish mobile network operator Telia.

The 4G/5G network covers about 1.8 km of tunnels plus 10,000 m² of other areas (production/workshop/offices/canteen) with relatively few pieces of radio equipment, according to Kauma.

Coverage of a similar area with Wi-Fi would require about three times as many access points, he pointed out.

Kauma said: “We use our 4G/5G network to:

  • “Test and compare connectivity-related capabilities – network speed, coverage, quality, etc;
  • “Learn about operation and maintenance; how to roll systems out, what to monitor, key performance indicators, etc;
  • “Understand more of the business side – what work to do in-house/outsource, what should be part of a service level agreement, etc.”

A direct outcome of this test network has been the recently addition of 4G network services at Aitik, one of Europe’s largest and most efficient open-pit copper mines.

This will allow the company to, primarily, carry out accurate remote control of its fleet of Epiroc Pit Viper blasthole drill rigs.

“But, long-term we believe it will replace our existing production Wi-Fi network,” Kauma said.

The future in 5G

While Wi-Fi does offer Boliden much in terms of connectivity, it cannot match 4G/5G when it comes to robustness and coverage. This is part of the reason the company is pursuing developments with 5G technology.

Equipment tracking is one area that could potentially be improved with 5G, Kauma said.

Today Boliden currently uses “passive” Wi-Fi tags for this task, with active antennas mounted on mining vehicles. The signal reflection is only picked up if the tags face the direction of the active antenna and the vehicle with antenna passes close by. While this system adds a lot of value, it does not currently offer the reliability Boliden would like to see, he said.

With 5G, Boliden expects to have “active”, as opposed to passive, tags, which transmit information on a pre-determined basis.

What Kauma termed “advanced remote control” operation is another area set to benefit from 5G connectivity.

The company already has remote control operations today, but it is either line-of-sight or a pre-determined, repetitive type of remote operation; not advanced.

In advanced remote operations, the performance of the wireless communications network has a direct impact on how well the operator can handle the machine, with control responsiveness and picture quality the main factors here.

According to Kauma, low latency will greatly improve the real-time aspects required for secure and efficient handling of vehicles, machinery and other equipment such as drills, hammers, shovels, etc.

In addition, the Quality of Service concept, where priority of connection is given to certain customers, will guarantee bandwidth needs for a detailed enough video stream to the remote operator – even on a heavily loaded network, he said.

“Higher data rates and increased network capacity will enable remote control on a larger scale than what’s possible on today’s 4G technology,” Kauma said.

The improved connectivity expected to come with employing 5G will also be beneficial for wearable technologies, which Boliden has been trialling to help improve the safety and well-being of employees.

The company recently tested out use of a prototype “smart vest” at one of its underground mines for, primarily, proximity detection, but also to “gain a better understanding of other possibilities that comes with this technology”, Kauma said.

The prototype vest was the result of research cooperation between Boliden, Ericsson, clothing company Helly Hansen and technology firm LightFlex Sweden AB.

In addition to the standard proximity detection functions, lights or reflectors warn the wearer as well as surrounding personnel of potential dangers through different flashing/blinking patterns.

Together with advance camera technology, the lights also aid autonomous machinery to automatically detect humans in dark environments.

Boliden would like to, in the near-future, use wearable technology for the monitoring of employees in physically-demanding environments; for analysis of the immediate environment surrounding employees (extreme temperatures, dangerous air quality, strong vibrations or sounds); and for positioning and situational awareness (ie warnings for approaching vehicles).

Key ingredients to make this a reality include a reduction in power consumption – low power means smaller and longer lasting batteries – a fall in cost, enabling the company to equip its entire workforce, and better network coverage and reliability – hence the use of 5G.

“If 5G delivers on its promise, it will be a critical component enabling wearable technology in an industrial environment like ours,” Kauma concluded.

Epiroc branches out into Honduras with Lazarus & Lazarus distribution deal

Epiroc has teamed up with Lazarus & Lazarus to expand its reach into the Honduras mining and construction market.

Lazarus & Lazarus will become a distributor of the Sweden-based OEM’s products, Epiroc said.

The tie-up is part of a wider plan to expand the service network offering of Epiroc’s CVCA subsidiary, according to Bjorn Tisell, Regional Manager of Epiroc CVCA. Epiroc CVCA serves the Colombia, Venezuela, Central America and Caribbean markets. It is headquartered in Bogotá, Colombia, and has offices, service workshops and warehouses in Medellin and Panama City.

Tisell said Honduras has potential in the mining and construction markets that needs to be developed with environmentally-friendly and safe technologies for personnel working in the drilling and excavation processes.

One of the more prominent mines in Honduras is the El Mochito mine, in the Department of Santa Barbara. The underground zinc-lead-silver asset has been in almost constant operation since 1948 and was recently re-started by Ascendant Resources. It is expected to produce 85 MIb-95 MIb of zinc-equivalent this year.

Epiroc autonomous drill gets working on BHP’s South Flank iron ore project

The first autonomous Epiroc Pit Viper 271 drill rig has broken ground at BHP’s South Flank iron ore project in Western Australia, the mining major confirmed.

This is the first of five autonomous drill rigs to operate at the mine, all of which will be controlled remotely from the BHP Integrated Remote Operations Centre in Perth.

BHP, which officially broke ground on the $3.6 billion project in July, is targeting first ore extraction in 2021 and expects to ramp up to 80 Mt/y of output. South Flank will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.

Epiroc says the Pit Viper 271 is the most productive drill available for rotary tricone and downhole drilling of 171 mm to 270 mm holes with up to 18 m cleanhole single pass capability.

It features a patented cable feed system with automatic tensioning for improved component life and low total cost of operation, with the standard Rig Control System (RCS) providing on board automation capability as part of the standard drill package to help deliver safety and productivity.

“With RCS you can run automation with an operator on board with options like auto drill and auto level, or you can run with the operator off the drill with the optional BenchREMOTE package, allowing one operator to run one or multiple units,” the company says.

“With the RCS system on Pit Vipers you can even achieve your ambition of fully-autonomous drilling with almost no human interaction with the drill.”

Epiroc deal to make ASI Mining a better company, Larsen says

Epiroc’s investment in ASI Mining has been a big talking point over the past few months, with many observers keen to know how the two companies will interact going forward. IM Editor Dan Gleeson put some questions to Drew Larsen, Director, Business Development, ASI Mining, to find out what effect the investment will have on the US-based company.

IM: What does ASI get out of the Epiroc deal?

DL: It’s fair to say ASI has been looking for an investment partner for some time. There has been plenty of offers out there, but we have tried to be selective in finding an investment partner where there are lots of synergies and strategic alignment.

We felt Epiroc was not only a good equity partner, but an excellent strategic fit as well. What we get – in addition to the investment – is a lot of alignment with our OEM-agnostic approach and independence, which Epiroc is preserving. But, primarily, we get access to Epiroc’s global footprint from a service and support aspect; we’re able to support the needs of any customer around the world as Epiroc has customer centres in almost any area where there is active mining. Then, we get access to some of their best practices and know-how, which we will be able to leverage as appropriate.

We’re also looking at having tighter integration of some of their autonomous solutions with our Mobius solution.

IM: How will you continue to differentiate your autonomous solutions from others in the market?

DL: As competition increases, we have to compete on the merits of our system, capabilities and ability to provide service and support and attend to all the needs of our customers.
Regardless of our competition, our play is always to become the best provider in the space.

Epiroc is a great company, is very well managed, and has a great business model, vision and strategy. As we leverage some of their capabilities and work together in some of these areas, it will make us a better company for sure.

We would hope that our solutions are a better fit with the interests of our mining customers. There are several advantages – flexibility in terms of vehicle types, leveraging existing investments the sites have made and an ability to work on a more customised basis with our customers. We will continue to seek solutions that are predicated on customer needs. Because of our independence, it gives us some unique advantages to be able to play to those customer needs compared with some of our competitors.

IM: Automation seems to be getting a mention in the mining space every other day; how receptive are you finding companies to automation at the moment?

DL: My sense is that we are in a third wave, if you will. We had a first wave with some of the early adopters, then a second wave with adopters in Western Australia and some of the key Tier 1 mining companies. This third wave is pushing down into more of the mid-tier and junior miner space, which is showing a genuine appetite for leveraging some of the benefits of autonomous vehicles.

We definitely see more of a general acceptance to automation. I think there has been a notion that these systems are really expensive and difficult to implement, hence something only the Tier 1 mining companies have access to. Our message is we are trying to make this accessible to not just the Tier 1s but small miners too. As that awareness is gaining, we are seeing an awakening and acceptance that, a) automation would benefit their operations and, b) it is more accessible to them than they might think.

There are some sites out there dealing with labour or cost constraints. Where some projects might be marginal under traditional mining models, as they re-look at them through an autonomous capability, they may actually be able to justify the investment. We see some of that happening where folks are re-evaluating the viability of projects.

It’s not just cost reduction for existing operations; it is also looking to new opportunities through the lens of autonomy to make a marginal project more attractive.

IM: Anything else to add?

DL: I’m sure there is some curiosity around the market (in regards to the Epiroc deal) and what it means for our business. We’ve received a lot of feedback from customers saying this is a real smart move, and it will certainly complement and help the business. We talk about the fact that it will enable us to grow faster and part of that is by having access to an established global footprint and resources across the globe.

What we did not want to happen was to take on an investment from an OEM that simply gobbles our technology up and incorporates it into their own solution…Epiroc made it clear from the outset that it was not their intent. They valued our business model and wanted to help facilitate it. That was a real key consideration for us.

IM also heard Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, talk about the deal last month. You can read what she said here.