Tag Archives: FVT Research

EU competition, collaboration and connections helping Epiroc solve mining challenges

Epiroc’s start-up mentality is enabling it to continue to solve the mining industry’s biggest challenges, but it is not doing this alone, according to Katarina Öquist, R&D Manager of Technology and Innovation in the Underground Division.

Speaking ahead of her appearance at the EIT Raw Materials Summit 2022 in Berlin, Germany – taking place on May 23-25 – Öquist said access to other industry partners, academic institutes and start-ups through initiatives like EIT Raw Materials continues to help the company overcome challenges the sector throws at it.

“Specifically on the EIT Raw Materials project, there is the possibility to take in young start-ups and academic institutes, which can prove key when considering the ‘kicks‘ the funding can provide such companies and initiatives,” she said. “It is important for these young technology companies to have a connection to applications, being able to test out concepts and ideas in a real-world environment with companies like Epiroc, and, at the same time, introduce new thinking into industries such as mining.”

This wide scope of participation is increasingly required when considering the future direction of the mining industry, according to Öquist.

Katarina Öquist, R&D Manager of Technology and Innovation in Epiroc’s Underground Division

“If you look at the mining industry, and the part I am in with Epiroc, we are experiencing the biggest technology shift ever,” she said. “We are looking at electrification, autonomy and digitalisation all at the same time. All of these have interdependencies and connections in between, which make it quite complicated.

“When I started in the start-up sector some 15 years ago, you often were looking to solve one problem, but, today, you are not offering the sole solution; you must interact with a much bigger technology ecosystem.

“For this, collaboration is very important.”

In this regard, EIT Raw Materials and European Union Commission funding are more important than ever, ensuring all stakeholders are connected and focused on coming up with workable solutions for industry to achieve their lofty ambitions.

While not tied to EIT Raw Materials, the NEXGEN SIMS project is a good example to highlight here.

NEXGEN SIMS builds on the EU-sponsored SIMS (Sustainable Intelligent Mining Systems) project, which aimed to demonstrate new technology and solutions for the mining industry. Running from 2017 to 2020, the SIMS project resulted in, among other things, the Epiroc line of battery-powered mining machines.

NEXGEN SIMS, meanwhile, is a consortium of 13 partners collaborating in an EU-sponsored project to develop autonomous, carbon-neutral, sustainable mining solutions, building on the SIMS success. The partners are Epiroc Rock Drills, AFRY – ÅF Digital Solutions, Agnico Eagle Finland, Boliden Mineral, Ericsson, KGHM Cuprum, KGHM Polska Miedź, K+S Minerals and Agriculture, Luleå University of Technology (LTU), LTU Business, Mobilaris MCE, OZ Minerals and RWTH Aachen University. The project, led by Epiroc, has a budget of €16 million ($16.8 million) and will run from May 2021 to April 2024.

“In the case of NEXGEN SIMS, it is built on a known partnership including new partners,” Öquist said. “After being involved with the majority of these partners since SIMS, we build from a high level of trust, which increases the possibility of success, especially concerning integration.

“Europe, in general, is very good in facilitating these type of collaborative projects that involve all segments of the innovation ecosystem – start-ups, industry partners and academics.”

According to Öquist, the NEXGEN SIMS project remains on track, with the integrations between electrification, automation and digitalisation likely to hold the most exciting outcomes for the wider mining industry.

For its part, Epiroc is also helping accelerate the development of start-ups of its own, taking stakes/interests in key technology providers and allowing them access to its much larger network.

ASI Mining, FVT Research and Mining TAG represent just a few examples here.

Öquist expanded on this with a reference to Mobilaris MCE, a company Epiroc acquired outright just last year, after five years of holding a 34% stake.

“They (Mobilaris MCE) started off in 1999 as a start-up from the telecoms business,” she said. “Due to them being in the northern part of Sweden, they tagged onto the mines and we ended up acquiring a minority interest in them.

“In the five years since, they have had a nice journey under the guise of Epiroc. They represent a local small start-up growing by going under the wings of a much larger industry partner.”

Epiroc, too, has benefitted from this collaboration, with Mobilaris MCE’s situational awareness technology recently becoming a key part of the OEM’s 6th Sense digital solution.

Not all OEMs would be willing to facilitate the growth of other companies in such a way, but Öquist, who has only been in her role with Epiroc for two years, puts this down to the company‘s unique culture.

“We call ourselves a 150-year-old start-up,” she said. “Regardless of how big we grow, that mindset remains – if someone highlights a problem, we set out to solve it through both internal and external collaboration.”

Epiroc lays out plan for first Minetruck battery-electric conversions

An articulated underground truck with a 32.6 t capacity is the next vehicle Epiroc is looking to provide a battery-electric conversion kit for, the OEM confirmed at its Capital Markets Day today.

The Minetruck MT436B set for an electrification conversion is suitable for medium to large underground operations, according to the company.

Epiroc has, to this point, provided battery-electric conversion kits for two of its underground loaders. The first up in its conversion project was the diesel-powered Scooptram ST1030 loader, followed by the ST14 LHD – which Epiroc already provides a new battery-electric option for.

Jess Kindler, President Parts & Services division, told attendees at the CMD that several machines were currently under conversion. At least two converted diesel ST1030s are due to go to Evolution Mining’s Red Lake gold operation in Ontario, Canada, as part of the company’s first order for the solution.

Epiroc’s Anders Johansson, Product Line Manager – Midlife services and Custom Engineered Solutions, told IM last month that more than one ST14 unit had been converted using another newly developed conversion kit, with one machine undergoing testing.

Both converted model types have been developed at the same Epiroc location in Lively, Ontario, according to Johannsson, where there is plenty of highly experienced Midlife services rebuild project experts. The battery conversion specialists, FVT, which Epiroc recently acquired, is also located close by.

Neither of Epiroc’s two main underground mining equipment competitors have a formal battery conversion offering, but Kindler was enthusiastic about the potential market uptake of these solutions.

“I believe we have a truly special window of opportunity here over the next few years,” he said. “As I briefly mentioned, the average lifespan for an underground piece of equipment is four-to-seven-years – give or take – and, by offering conversions, we can increase the speed of our customers taking on battery technology and we can also speed up the rollout of our batteries to the market.”

He added: “We’ll roll out more and models and, to be honest, there is nothing standing in the way of us doing conversions on other OEMs equipment, as well. We have the knowledge to do it.”

Epiroc confirms mining market growth, automation uptick in Q3 results

The trend of equipment automation is no longer confined to certain regions or sectors; it is a global phenomenon. That is the impression Epiroc has provided in the last few months, as well as in its September quarter results, the latter of which was released today.

Having reported a swelling order book for this quarter – including record orders received of SEK12.2 billion ($1.4 billion) and a 29% year-on-year improvement in operating profit to SEK2.4 billion – the company’s fortunes continue to be representative of a wider uptick in the mining industry.

This was characterised by several large orders in the three-month period, five of which were valued at more than SEK100 million.

The variety of these orders – representing greenfield and brownfield operations – was interesting, reinforcing the idea that the equipment and service sales were attributed to growing – as opposed to sustaining – production levels from the industry.

What was also worth pointing out was the increased levels of automation that came with these bookings.

IAMGOLD’s order for six Epiroc Pit Viper 231 blasthole drill rigs for its Côté Gold operation in Ontario, Canada, included plans to use them in a “fully autonomous” mode; one of the Boltec machines being supplied to LKAB’s underground mines in Sweden will be equipped with a new automated pumpable resin system; and some of the drill rigs ordered by Eti Bakir in Turkey and Dazhong Mining Co Ltd in China will come fitted with Epiroc’s Rig Control System, which makes them ready for automation and remote control.

“We see that there are high levels of interest for automation,” Helena Hedblom, Epiroc President and CEO, told IM shortly after the results were released. “Depending on the site, there is always a consideration around automation.

“These are step-by-step developments, though.”

This is likely to mean some companies progress to the highest levels of automation, while others reap the benefits from tele-remote operation.

In addition to the productivity and safety benefits that companies are receiving from this operating transition, there is also a sustainability advantage, according to Hedblom.

Diesel-powered machines with automated elements are being fitted with more energy efficient components and are burning less diesel through optimised operation of equipment.

Ahead of a full on move to battery-electric machines – which are not yet automated – these benefits are important for an industry looking to decarbonise.

“Energy efficiency has always been a priority in our R&D investments,” Hedblom said on an analyst call on the same day. “We’re working on that with our diesel machines too.

“That is the fastest way we can have an impact on CO2 emissions for the industry.”

By continuing to work on the base machines – improving their efficiency as much as possible – the company is ensuring each new machine has a positive impact.

And, of course, the company is now offering an electrification roadmap to miners with existing diesel-powered fleets.

This is where the recently announced acquisition of Canada-based FVT Research is relevant.

“We see this transaction as a strategic move to transform the sector,” Hedblom told IM.

FVT played an integral role in a recent project to convert a diesel-powered Epiroc Scooptram ST1030 loader to battery-electric mode, and Hedblom sees the company helping create a much larger battery-electric rebuild program.

It also slots nicely into the company’s wider electrification plans, as Hedblom outlined on the analyst call.

“We can then take on a project, do the electrical mine infrastructure with the Meglab capabilities, we can convert some of the machines (FVT Research) and, at the same time, add new machines and then bundle it with Batteries as a Service,” she said.

Also of note in the results was the continued growth of Epiroc’s aftermarket business. In the three-month period, it represented 72% of revenues, up from 69% in the same quarter a year ago. For service, orders received increased 21% to SEK4.8 billion, corresponding to 13% organic growth.

Hedblom mentioned the company has continued to gain market share in this area, as it focused on keeping machines out in the field up and running.

Increased connectivity to these machines has helped support this, with the number of units delivered with connectivity increasing by more than 30% year-on-year, according to Hedblom.

More details of this development are likely to follow in the company’s December 1 Capital Markets Day, but Hedblom said this increased connectivity was underlining product performance, providing optimisation opportunities and showing potential market prospects.

Epiroc bolsters battery-electric conversion expertise with FVT Research acquisition

Epiroc has agreed to acquire the business and assets of FVT Research Inc, a Canadian company with expertise in converting diesel-powered mining machines to battery-electric vehicles.

FVT Research, based in Vancouver, Canada, designs diesel-to-battery conversion kits and rebuilds mining machines to electric versions. The company has also recently been part of a successful project to convert the diesel-powered Epiroc Scooptram ST1030 loader to battery electric.

FVT Research has about 25 employees and had revenues in 2020 of C$4 million ($3.2 million).

“Bringing the strong team at FVT Research into the Epiroc Group fits perfectly into our strategy to provide emissions-free battery-electric vehicles,” Helena Hedblom, Epiroc’s President and CEO, said. “Our customers are increasingly discovering the significant benefits that come with using battery-electric vehicles, and FVT Research’s technical expertise and competence will be key assets for Epiroc as we continue to provide more solutions in this area.”

The acquisition is expected to be completed in the second half 2021, with the transaction not subject to a disclosure obligation pursuant to the EU Market Abuse Regulation.