Tag Archives: JTMEC

Epiroc focused on ‘connecting the dots’ to create mine of the future

Ahead of Epiroc’s Capital Markets Day (CMD) and MINExpo 2024 at a hotel just outside of Las Vegas, Helena Hedblom, Epiroc President and CEO, was happy to tackle the industry’s big three: automation, digitalisation and electrification.

Hedblom, like the heads of her fellow OEMs, has big ambitions for these three technology pillars, but the way Epiroc is looking to meet these ambitions is different.

The company’s “agnostic” philosophy has been a key differentiator for the past years, and even as more OEMs start to open up their architecture and platforms to the wider vendor marketplace, it is this attitude that is likely to help it lead from the front.

“Our ambition is to provide mixed fleet automation,” Hedblom told IM last week. “That is what we have invested in quite heavily over the last two years; we have acquired two companies in RCT and ASI Mining to allow us to achieve this.

“This is how we see the future of mining when it comes to automation, having the capabilities to operate whatever type of equipment there might be in that mine, including utility vehicles.”

Epiroc has, as of the CMD last week, 3,100 machines running without drivers. This is up 29% from the last CMD in June 2023, with the company noting that there was “great potential to connect an even larger fleet” via Epiroc machines and/or units from other OEMs.

RCT, underground, has a track record of achieving such autonomy on a wide range of machines, while, on surface, ASI Mining has proven it can do the same with the fleet at Roy Hill, in Western Australia.

Epiroc is currently converting Roy Hill’s mixed fleet to driverless operation in Australia, with 78 autonomous haul trucks made up of Caterpillar and Hitachi trucks, and over 200 utility vehicles.

Roy Hill remains the sole case study on surface, but Hedblom says the company will soon transition to the ‘scale’ of its “nail and scale” process that leads to adding more mine sites to its agnostic automation platform.

Hedblom is convinced the ability to automate the entire fleet – whether the machines are “digitally connected” or not – plus integrate the highest levels of collision avoidance solution, will go far in eradicating the need to allow autonomous and staffed equipment to operate in the same zones underground and on surface.

“If you have all the utility vehicles automated, that is the key,” she said. “It is more than just automation; through the Mernok acquisition, we’re now able to bring in Level 7, 8 and 9 collision avoidance technologies.

“Technology-wise, it is all coming together.”

IM Editor, Dan Gleeson, met with Epiroc President & CEO, Helena Hedblom, ahead of the company’s CMD and MINExpo 2024 in Las Vegas

Electrification

The big stats in terms of electrification include:

  • 42% of the offering in “fossil free” versions;
  • Battery-electric vehicles deployed at 34 sites;
  • An active electric fleet of rigs, loaders and trucks totalling over 600 units (of which a large portion is historical fleet, including cable);
  • Recurring battery-electric vehicle orders from 12 sites; and
  • A three times increase in the utilisation rate of battery-electric vehicles during the last 12 months.

The other statistic of note is that, as it stands, Epiroc group revenues related to electrification amount to just 4%.

This indicates both Epiroc and the industry are still in the initial stages of this transition; an opinion backed up by claims from the Electric Mine Consortium that Sandvik’s battery-electric truck population across the globe represents only 15% and, as it stands, no battery-electric load and haul equipment has been sold commercially in one of the biggest underground markets: Australia.

Hedblom, here, sees parallels with the automation uptick in the industry.

“This transformation is happening in the same way that automation evolved,” she said. “A couple of years ago, we had some customers that had greenfield operations and decided to go fully electric. Now we see more customers looking at repeat orders.”

The automation analogues also come with the fact that Epiroc – unlike other OEMs – is offering a mid-life rebuild option to convert some of its existing diesel-powered load and haul fleet to battery-electric operation.

Epiroc has plans to offer this conversion option across its full existing diesel-powered load and haul fleet by 2030.

The addition of ‘fossil free’ in the Epiroc lexicon over the last few years reflects the need to put multiple options on the table for miners.

“We see that there will be different types of solutions needed during the coming 10 or 20 years, depending on mining method, type of application, etc,” Hedblom said.

This was made apparent on the floor at MINExpo where Epiroc showcased the MT66 S e Drive, a Pit Viper 271 E and a SmartROC D65 BE. The former is a diesel-electric haul truck that uses both diesel engine and electric drivetrain to reduce fuel consumption and emissions, the SmartROC D65 is a battery-electric down-the-hole drill demonstrator that trams on battery yet is plugged in for drilling, while the Pit Viper 271 E is currently envisaged as a unit connected to the site’s renewable electricity infrastructure for that ‘fossil free’ operation.

The Minetruck MT66 S e Drive

“We believe there will be a combination of different energy sources in this mix,” Hedblom said, reeling off the likes of battery-electric, cable, trolley and hybrid options. Additionally, biofuel ‘drop-in’ solutions are already available for conventionally powered machines in its offering.

She added: “Sometimes the discussion is all about benchmarking diesel against a fossil-free machine, but the reality is that every machine we are developing now cannot just be on par with its diesel counterpart. It must be better – faster up the ramp, filling the bucket faster, etc – to ensure we provide productivity benefits and a lower total cost of ownership for customers.”

Digitalisation

From an M&A perspective, digitalisation has been a key focus area for Epiroc since the Atlas Copco spinoff in 2018, with many of the 27 acquisitions since listing tied to this trend.

This, as well as many organic initiatives, has led to the company building up a revenue base for its Digital Solutions division of SEK2.4 billion ($234 million).

“Our digital solutions are agnostic, working on different types of machines and systems, so this opens up many ways to engage with our customers,” Hedblom said, noting that the platforms it had created are being used by existing Epiroc equipment customers, as well as those with fleets from other OEMs.

“The areas of high interest are around collision avoidance, situational awareness and mixed fleet automation,” she said. “I see that digitalisation creates that transparency needed to drive productivity.”

Digitalisation, itself, represents an easier ‘sell’ for Epiroc due to its seamless nature – ie not creating multiple change management issues – when compared with adopting automation and electrification technologies, Hedblom added.

Going forward, she is convinced a digital backbone will become more important with the increasing uptake of automation and electrification.

“Today, a lot of the different tools mining companies are using – for the mine plan, for maintenance, etc – are still not connected,” she explained. “You don’t use all data at the same time for the best type of decision.

“A lost hour of productivity is a lost hour of productivity; we are seeking to avoid this through increased digitalisation.”

This is where the individual solutions Epiroc has acquired through the likes of Mernok (collision avoidance), RCT and ASI Mining (agnostic automation solutions), Meglab and JTMEC (battery-electric chargers and infrastructure) could combine with its digitalisation platforms to optimise the overall mining process.

“By connecting the dots, there are many more optimisation opportunities to be had,” Hedblom said.

The difference here is that Epiroc is willing to look outside of its own four walls to the broader industrial space to ‘connect these dots’, meaning the idea of a fully-electric, fully-autonomous, fully-digitalised mine could be much closer to becoming a reality.

Epiroc records ‘best quarter ever for electrification’

In a quarter of record revenues and adjusted operating margin, Epiroc’s battery-electric equipment orders and market demand for electrified mining solutions again came to the fore.

The company posted revenues of SEK11.9 billion ($1.2 billion) in the June quarter, 22% up on the same three-month period of a year ago. Its adjusted operating margin came in at 23.6%, compared with 22.6% a year earlier.

Epiroc’s aftermarket division continued to dominate the balance sheet, accounting for 73% of revenues, which itself was up on the 69% registered in the June quarter of 2021.

Included within this revenue is the company’s growing mid-life battery retrofit solution, which it launched last year to provide a second electrified life for its diesel-powered machines. Able to convert existing machines to battery-electric versions, CEO Helena Hedblom said the offering continued to find favour with existing mining customers.

“With brownfield operations, there are great opportunities to bring battery-electric solutions into the fleet with our retrofit option when, for example, existing diesel-powered machines go in for their mid-life upgrades,” she said.

To this point, the company has devised readily available battery-electric retrofit options for its diesel-powered Scooptram ST1030, Scooptram ST14 and Minetruck MT436 machines, but Hedblom said the company was working on offering this option across its entire diesel-powered fleet, with the machine retrofit rollout plan determined by the size of the installed base in the marketplace.

The company also won several major equipment contracts in the June quarter that included battery-electric solutions.

Its electric machines are set to feature on major projects such as Odyssey and Onaping Depth in Canada. Closer to home in Sweden, the Epiroc battery-electric fleet will grow at LKAB’s underground iron ore operations and Boliden is set to use several of zero-emission truck and loaders at numerous mine sites.

Epiroc labelled Q2 as its “best quarter ever for electrification”, and Hedblom was equally effusive about the company’s offering, saying it was built for both greenfield and brownfield mines.

“We have a strong position in the electrification market; both for equipment sales, retrofit and electrical infrastructure,” she said.

The company’s infrastructure proposition was strengthened during the quarter with the acquisition of JTMEC, an Australia-based company specialising in providing mines with electrical infrastructure.

This comes on top of the company’s recent purchase of Meglab, a Canada-based company with expertise in providing electrification infrastructure solutions to mines, meaning it has electrification infrastructure expertise in two major mining hubs.

One of the battery-electric orders received during the most recent three-month period was from Boliden for the Rävliden, Kristineberg and Renström mine sites in northern Sweden. Included within this order was an Scooptram ST18 Battery that, the company previously confirmed, will include the incorporation of Scooptram Automation, representing one of the first times these battery-backed machines will receive an automation upgrade.

While a solution for automating the battery charging or swapping process remains some way off, Hedblom sees the convergence of the two – electrification and automation – getting closer in the future.

“Electrification and automation go hand in hand, with companies that are high on electrification also typically being high on automation,” she said.

Epiroc completes acquisition of electrification infrastructure solutions provider JTMEC

Epiroc says it has completed the acquisition of JTMEC, an Australia-based company specialising in providing mines with electrical infrastructure, supporting the industry’s transition to battery electrification.

JTMEC, based in Perth, Australia, is an electrification infrastructure solutions provider for both underground and surface mines. The company’s offerings include high voltage installation and maintenance work, transformer servicing and testing, engineering design, feasibility studies, and training. It also manufactures electrical products including substations and mine chargers.

JTMEC had 190 employees and revenues in the fiscal year ending June 30, 2021, of about A$34 million ($24 million).

Epiroc announced on April 29, 2022, that it had agreed to acquire JTMEC.

Epiroc to acquire electrical infrastructure specialist JTMEC

Epiroc says it has agreed to acquire JTMEC, an Australia-based company specialising in providing mines with electrical infrastructure, which supports the industry’s transition to battery electrification.

JTMEC, based in Perth, is involved in both underground and surface mines, with an offering that includes high voltage installation and maintenance work, transformer servicing and testing, engineering design, feasibility studies and training. It also manufactures electrical products including substations and mine chargers.

JTMEC has 190 employees and had revenues in the fiscal year ending June 30, 2021, of about A$34 million ($24 million).

“Battery electrification represents the future in the mining industry, and the strong team at JTMEC is playing an important role in enabling this vital transformation,” Helena Hedblom, Epiroc’s President and CEO, said. “This acquisition will further strengthen our ability to support mining customers on their electrification journey toward less emissions, improved work conditions and higher productivity. JTMEC is also a strong complement to Meglab, which we acquired in 2021.”

The acquisition is expected to be completed in the June quarter 2022, with the transaction not subject to a disclosure obligation pursuant to the EU Market Abuse Regulation.