Tag Archives: mining equipment

Strong mining and construction demand leads to Cat Q1 sales jump

Automation, Equipment maintenance, Mine shafts and equipment, Mining consumables, Mining equipment, Mining finance, Mining maintenance, Mining services, Mining software, , , ,

Demand from the mining and construction sectors saw Caterpillar’s sales and revenue jump 5% in the March quarter, the equipment manufacturer has reported.

Sales and revenue came in at $13.5 billion in the first three months of the year, compared with $12.9 billion a year earlier, with the company’s profit per share rising to $3.25/share – a quarterly record.

Cat said the sales and revenue increase was down to higher sales volume for both equipment and services and favourable price realisation, primarily in Construction Industries and Resource Industries.

Within the Resource Industries segment, Cat saw total sales grow 18% to $418 million as mining production levels and commodity market fundamentals remained positive. Quarterly profit came in at $192 million within the segment, 52% higher year-on-year thanks to the higher sales volume and favourable price realisation, the company noted.

Following these results, Caterpillar upgraded its profit per share estimate for 2019 to $12.06-13.06, from the $11.75-12.75 it previously stated.

Metso Q1 financials benefit from strong mining equipment market

Comminution of minerals, Energy minerals, Equipment maintenance, Mineral processing, Mining equipment, Mining maintenance, Mining services, Mining software, Water management, , , , , ,

Metso’s March quarter results were bolstered by a rise in orders, sales and profit margin in the Minerals division, the company reported today.

Metso posted an operating profit of €100 million ($111 million) for the first three months of the year, up from €80 million a year earlier, with orders received increasing 18% year-on-year to €1.01 billion and sales growing 17% year-on-year to €836 million. Earnings before interest, tax and amortisation (EBITA) rose from €85 million, or 11.9% of sales, to €104 million, or 12.4% of sales, the company said.

The Minerals division was a big contributor in the quarter, with orders received at €823 million (up from €688 million), sales at €681 million (up from €584 million) and EBITA margin at 12.4% (11.9% previously).

The company noted the strongest growth within the division was from the equipment side, highlighting the second order booked for Albemarle’s new lithium project in Australia as a standout win.

Metso said in its announcement that market activity in both its Minerals and Flow Control segments was expected to remain at the current high level in both the equipment and services business.

Meanwhile, President and CEO Pekka Vauramo, said the group’s results were “strong”, with high growth and improved profitability.

“Our order intake was up 18% year-on-year and the growth was broad-based in both equipment and in services. Together with the healthy order growth of last year this has resulted in a solid order backlog, which we continue to deliver with better efficiency,” he said.

“The mining equipment market looks somewhat stronger compared to the other markets we serve, thanks to the mining customers’ plans to improve productivity and add capacity.”

Bingham Equipment receives Hard-Line distribution rights in Arizona

Automation, Communications in mining, Mining equipment, Mining services, , , , , , , , , , ,

Hard-Line says it has signed up Bingham Equipment Company as the company’s newest distributor in Arizona, USA.

With 11 locations in Arizona, Bingham Equipment will distribute Hard-Line’s LP401, MT52, and the RRC.

The LP401 (pictured) is a remote control operated low profile loader (skid steer) that can be used in a variety of restrictive areas where a normal man-operated machine cannot operate, Hard-Line said. The MT52 is a mini track loader that can “dig, trench, move materials and reach small, tight spots”, while the RRC is a versatile radio remote control that can operate any machine, make and model and is designed to be used in rugged and harsh environments, the company said.

Chad Rhude, Hard-Line’s Vice President, US Operations, said: “We are excited to be working with a great partner like Bingham Equipment Company. With their excellent reputation and many locations throughout the state of Arizona, it gives us a local presence for sales and support of our LP401 product line.

“We look forward to working with Bingham to showcase the versatility and capability of the LP401 in delivering a low-profile, fully-remote controlled machine platform to enhance safety and productivity in the municipal, construction and agriculture sectors in Arizona.”

B2Gold weighs up in-pit crushing and conveying as Fekola mine expansion economics stack up

Bulk handling, Mine operation news, Mineral processing, Mineral project development, Mining equipment, Mining finance, Mining project news, Mining services, Power supply for mines, Precious metals, , , , , , , , , , ,

B2Gold’s plan to expand its Fekola gold mine, in Mali, by 1.5 Mt/y could see an up to $56 million investment in additional excavators, trucks, drills, support equipment and wheel loaders, according to the latest project economic study.

The expansion study preliminary economic analysis showed the company could increase throughput to 7.5 Mt/y, from the current 6 Mt/y base rate, by injecting just under $50 million over a period of some 18 months for processing expansion and upgrades.

As currently envisioned, the processing upgrade would focus on increased ball mill power, with upgrades to other components including a new cyclone classification system, pebble crushers, and additional leach capacity to support the higher throughput and increase operability.

“Critical path items include ball mill motors and the lime slaker, both of which will be commissioned in Q3 (September quarter) 2020,” B2Gold said.

“In parallel with the expansion, B2Gold is studying the addition of a solar power plant, which would reduce operating costs and greenhouse gas emissions. The current on-site power plant has sufficient capacity to support the expanded processing throughput, with or without the solar plant.”

On top of this, the company would need to invest in its mining fleet.

The current mining fleet consists of four Caterpillar 6020B excavators with haul trucks, drills, and support equipment to match, and mines an average of 36 Mt/y. The Whittle study results currently indicate mining production rates ranging from 54 Mt/y to 76 Mt/y are optimal to support the expanded processing rates over the life of mine and optimise head grade during the period 2020-2024.

B2Gold said: “Increased production will be achieved with the addition of two to four excavators with corresponding trucks, drills, and support equipment. Large front-end loaders would also be included to maintain fleet flexibility.

“Mine fleet expansion timing and scale will be optimised during Q2 (June quarter) 2019 and will generally be equipment loan/lease financed over a five-year period. The study has included $28 million for expansion to 54 Mt/y and an additional $28 million (for a total of $56 million) to go to 76 Mt/y.

“In parallel with the Whittle study, B2Gold is reviewing in-pit crushing and conveying as a means to reduce operating costs and potentially implement tailings and waste co-disposal at the Fekola mine.”

The expansion study estimated optimised that the life of mine could extend into 2030, including significant estimated increases in average annual gold production to over 550,000 oz/y during the five-year period 2020-2024 and over 400,000 oz/y over the life of mine (2019-2030).

This would see an increase in project net present value of approximately $500 million versus the comparable amounts in the company’s latest AIF mineral reserve life of mine model based on a $1,300/oz gold price and a discount rate of 5%.

Mining equipment finance competition heats up

Equipment maintenance, Mining equipment, Mining finance, Mining services, , , , , , ,

Cat Mining Finance, the financing arm of leading mining OEM Caterpillar, says it sees increasing demand for tailored finance solutions from mining companies, with this flexibility often proving decisive when it comes to winning business.

Bob Bennes, Vice President with responsibility for Cat Mining Finance, revealed this when speaking to IM for an upcoming feature on equipment finance, rental and leasing (to be published in April).

Bennes said: “I would say we have seen the demand for tailored finance solutions increase.

“Our mission is to help customers, dealers and Caterpillar succeed through financial services solutions. A lot of mining companies have learned that Cat Financial has a specialised mining finance group which understands the industry and can leverage various offerings to meet customer needs.

“For example, providing corporate finance solutions, new and used equipment financing, project finance facilities in certain instances, extended warranty solutions, and financing to support certified rebuilds.”

He said Cat Mining Finance’s strong integration with the equipment and dealership side of the wider group was also appreciated by mining companies when it came to financing and delivering the equipment they required.

“It is a great advantage that we offer a total solution to customers. We are able to work seamlessly with Caterpillar and the dealers to get a transaction closed. It demonstrates to our customers that we have risk alongside them in their business in support of Caterpillar equipment over the long term,” he said.

“However, it goes even further than equipment and financing. Post close, customer support across the Caterpillar enterprise is critical and helps provide varying levels of maintenance and repair support depending on the mine’s requirements. The financing and support after the sale are important to winning business in the mining industry.”

In terms of where demand for mining equipment financing is coming from, Bennes said the market was “constantly fluctuating”.

“When a new mine is going into production, they’re usually committing to buying an entire fleet, so in some years that’s a bigger portion of the business than other years. The same goes for mining contractors when they win a new bid that requires an updated or expanded fleet.

“Generally, about 15-25% of Cat Mining Equipment sales are related to greenfield/brownfield projects with the remainder being expansions of existing mines as well as replacement business.

“This can vary widely based on commodity prices and the point in the cycle, with greenfield/brownfield projects representing a bigger opportunity during periods of high commodity prices,” Bennes said.

“Rental/lease companies would be in the 1-5% range while contractors can be a higher portion of the market in some countries, such as in Australia and Indonesia.”

Bennes also thinks that mining companies and the investors that back them have become a lot more aware of the benefits of employing a solutions provider like Caterpillar when it comes to keeping mine sites operating to their potential.

“Mining companies and their shareholders are used to making long-term investment decisions that have long payback periods. They understand the value of examining the total cost of ownership over the entire life of the mine including planned M&R and rebuild,” he said.

“Price is important, but losses from unexpected downtime can be costly.”

Bennes concluded: “Caterpillar’s global dealership network is designed to provide premium mine site guidance, service and support throughout a mine’s life.”

Earlier this week, IM published a piece on this subject that gathered the thoughts of Sandvik Mining & Rock Technology’s Director Customer Finance, Björn van den Berg.

NIOSH asks miners to fill mine automation knowledge gaps

Automation, Equipment maintenance, IoT, Mining equipment, Mining policy, Mining safety, Mining techniques, , , , , ,

An agency within the US National Institute for Occupational Safety and Health (NIOSH) has asked miners to provide information on the rapidly-expanding area of automation as it looks to address the safety and health implications of humans working with automated equipment and associated technologies in mining.

NIOSH’s Centers for Disease Control and Prevention (CDC) has recently established a research programme to address automation and associated technologies in mining and sees this as one way to fill any knowledge gaps it has.

The emphasis of the research is on “worker safety and health research in which NIOSH has the comparative advantage, and is unlikely to be undertaken by other federal agencies, academia, or the private sector,” it said.

NIOSH said electronic or written comments must be received by May 17, 2019.

In a background note to the request, NIOSH said: “The mining industry has been undergoing significant changes as companies look to adopt automation technologies to decrease costs and increase efficiency and, according to some companies, improve safety.

“These new technologies include automated mobile equipment, robotics, tele-operation, wireless communications and sensing systems, wearable sensors and computers, virtual and augmented reality, and data analytics.

“Surface iron ore mines in Western Australia are moving rapidly to adopt automation technologies, and they appear to be the closest in achieving completely autonomous mining. In US mines, the adoption of automation technology is gaining momentum, with some of the first automation having been applied to processing facilities, drilling equipment, underground coal mine longwalls, and now pilot projects with automated haulage trucks and loaders.”

It added: “To prepare for expanded use of automation technologies, NIOSH seeks to both proactively address worker health and safety challenges that may be associated with automation, as well as leverage new technologies to improve miner health and safety.

“To understand the state of automation technologies, their implementation in the US, and the health and safety concerns associated with the technology, NIOSH seeks public input on the following questions:

“1. To what extent will automation and associated technologies be implemented in mining and in what timeframe?

“2. What are the related health and safety concerns with automation and associated technologies in mining?

“3. What gaps exist in occupational health and safety research related to automation and associated technologies?

“4. What are the major safety concerns associated with humans working near or interacting with automated mining equipment? Have other organisations addressed the safety concerns associated with humans working near or interacting with automated mining equipment?

“5. What research has been conducted, or approaches taken, to address the potential for human cognitive processing confusion, misunderstanding, and task or information overload associated with monitoring or controlling automated mining equipment or other monitoring systems (eg fleet management, environmental monitoring, safety systems, health care systems)?

“6. What is the state of the art for display methodologies and technologies to provide mine personnel and equipment operators with information on operational status, location, and sensory and environmental feedback from automated mining equipment or systems?

“7. What sensor technology improvements are needed to ensure the safety of humans working on or near automated equipment?

“8. How are existing methods of big data analytics applied to automated mining equipment or systems? Are there health and safety benefits to these applications?

“9. Are there any needed improvements to guidelines or industry standards for automated mining system safe design and operation practices?

“10. Are there any needed improvements to training materials, training protocols, and operating procedures for system safety design principles related to automated mining systems?”

The agency added: “NIOSH is especially interested in any creative and new ideas as they relate to protecting the health and safety of miners today and in the future.”

Companies can leave comments on the Regulations.gov page, by clicking here.

The ‘value add’ in mining equipment finance and leasing

Equipment maintenance, Mining equipment, Mining finance, Mining maintenance, Mining services, , , , , ,

In the last decade or so, there has been a big change in the way mining companies source equipment for new and existing operations, with finance, leasing and rental now major parts of the system.

IM spoke with some of the major finance, leasing and rental companies around the globe as part of a feature (to be published in April) on the subject.

This is what Björn van den Berg, Director Customer Finance, Sandvik Mining & Rock Technology, had to say about demand for equipment finance and leasing solutions from the mining industry:

“If you have a look at the growth rate for customer finance, it has grown substantially,” he told IM.

“There are two underlying trends here. One is we see increased usage of contractors in mining, with contractors having a totally different cash position to producing mines. That’s one of the reasons why we see increased demand for different types of finance options – a trend we have seen occurring over a longer period of time,” he said.

“A more recent trend is what I would call the subscription-based economy, or ‘product as a service’. In the past, customers had an original equipment manufacturer (OEM) that would supply them with the machine and maybe some after-market services and they would own and use the machine until it fell apart. We are shifting more and more towards where the customer is not necessarily looking for an OEM that can provide a piece of equipment or machine. They are looking for a partner that can provide a solution, preferably, for the duration the customer requires.”

“In terms of the subscription-based economy trend, that normally includes a form of financing on the OEM side. That’s an emerging trend that has led to increased demand for different types of financial products.”

On these different types of financial products, van den Berg said: “We offer a finance-lease, loan – always asset-backed – and trade finance solutions, but what we also see is an increased demand for operational leases, or short-term rental type of solutions including or excluding services.”

The way customers are being charged is also changing, as their own internal cost structure evolves, he added.

“They might look for cost per hour, cost per tonne, cost per metre, etc,” he said. “Whatever defines a customer’s cost structure is the way they want to be charged.”

When it comes to providing not just a financial product, but a solution, van den Berg provided an example of how Sandvik’s equipment finance arm differentiates itself.

“We get requests from mines operating outdated machines where production levels and, therefore, cash flow isn’t where it can be. Sandvik comes in with a multi-disciplinary team, analyses the situation, assesses what the best alternative is for the mine, applies what impact that alternative will have on the cash flow and then structures a financial product around it that will let them achieve that cash flow.”

“A bank or generic financial institution might just look at the current balance sheet and profit and loss and decide not to finance the same initiative as the customer’s credit score does not support it.

“That is where we can add value over the customer’s house bank or other financial institution,” he said.

This interview is part of a wider feature on equipment finance, rental and leasing to be published in the upcoming April issue of International Mining

Demand for ground engaging tools leads Weir to invest in ESCO Newton plant

Mining equipment, Mining services, , , , ,

The Weir Group says it is investing an additional $15 million in its Newton manufacturing facility, in Mississippi, US, as part of a total $50-million plan to support an additional 150 jobs at the ESCO division plant.

When the investment programme is complete, employee numbers will be more than 400, a 60% increase from 2016, Weir Group said.

The Newton facility, one of Weir’s largest manufacturing operations, produces ground engaging tools for mining and infrastructure needs and was brought into the group with last year’s acquisition of ESCO. The expansion is slated to be complete by August 2019, Weir Group said.

Weir Group CEO, Jon Stanton, said: “The equipment we make in Mississippi is exported around the world and the increased demand from our mining and infrastructure customers gives us great confidence in the future.”

The Mississippi Development Authority (MDA) is providing assistance for workforce training, as well as statutory tax exemptions, according to Weir.

MDA Executive Director Glenn McCullough, Jr, said: “The Weir Group’s ESCO division with its talented employees show the world each day that global manufacturing leaders find the people and place needed for success in Mississippi. For nearly 50 years, ESCO’s workforce has enabled the company to achieve its goals by producing top-quality mining equipment used around the world, and this continued corporate investment demonstrates Weir’s commitment to doing business in our state.”

Approximately 80% of the products manufactured at the Newton facility are exported. This makes Weir’s ESCO division the world’s leading supplier of ground engaging tools for the mining industry, Weir said. The facility began operations in Newton in 1971.

Henrik Ager to lead Sandvik Mining and Rock Technology

Automation, Equipment maintenance, Mining equipment, Mining people, Mining services, Mining software, , , , ,

Sandvik has appointed Henrik Ager, currently President for the Rock Tools division, as President of the Sandvik Mining and Rock Technology business area and a member of the Sandvik Group Executive Management, effective April 1.

Ager has more than 16 years’ experience in the mining industry, of which an extensive period has been spent living in South Africa. Additionally, he has worked in Australia, South America, India and other important mining markets.

His previous experience at Sandvik includes being President for the Global Equipment division and Vice President for Strategy within Sandvik Mining and Rock Technology. He also held leading positions at McKinsey, Ericsson and several high-tech start-ups prior to joining Sandvik in 2014.

Sandvik’s President and CEO, Björn Rosengren, said: “I’m convinced that Henrik Ager, with his experience, already proven leadership skills and excellent performance in Sandvik, has the right capabilities to lead Sandvik Mining and Rock Technology going forward.

“Henrik is committed to further strengthening Sandvik Mining and Rock Technology’s market position, reinforcing customer relations, driving aftermarket sales, leveraging further on a decentralised way of working and ensuring our forefront position within automation, electrification and sustainability.”

Ager succeeds Lars Engström who, as announced last month, will leave Sandvik.

Photo credit: Gefle Dagblad, GD

Volvo CE to acquire ‘construction and mining equipment adaptor’ CeDe Group

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , ,

Volvo Construction Equipment is to acquire special application partner CeDe Group for an undisclosed sum, the Sweden-based company has said.

CeDe Group, based out of Malmo, Sweden, has a good reputation in the Nordic region as a low-volume adaptor of construction and mining machinery for special applications, according to Volvo CE. It has worked with several original equipment manufacturers (OEMs), including Volvo CE and its dealers, developing new bodies for haulers (eg fuel, water, waste), rail conversions for wheeled excavators, as well as conversions for underground mining applications.

The deal, which is expected to come into force by mid-March, will include CeDe’s intellectual property, operations, other assets and staff of around 45 full-time employees. As the annual volumes produced are relatively low, the deal will have no material effect on the income or financial position of Volvo CE, the company said.

Interestingly, CeDe, formed in 2000, can trace its roots back to Volvo’s original excavator business, Åkerman.

“Under Volvo CE ownership, the vision is that CeDe will remain an agile, entrepreneurial, standalone business,” Volvo CE said. “Volvo CE will make available its considerable competences to the company and add additional resources to allow it to expand its market reach and customer bases, becoming a European leader in this specialised field.”

A strengthened partner will also support Volvo CE’s objectives of expanding its product offering into new segments and applications, as well as providing a partner who can deliver low volume prototypes and production runs, Volvo CE said.The company will continue to provide and expand its engineering services to non-Volvo CE customers, it added.

Volvo CE President, Melker Jernberg, said: “This acquisition makes sense on a number of strategic levels. CeDe has already proven that it has a depth of engineering talent in adapting our machines for specialised applications. This closer relationship will allow Volvo CE to grow our product offerings while, at the same time, boosting CeDe’s ability to expand into new markets and segments, both with Volvo CE and its other OEM customers.”

CeDe Group’s Chief Executive, Krister Johnsson, said: “We are extremely pleased to be joining the Volvo CE family of companies. With our already long and good relationship with Volvo CE and deep understanding of its products, we are excited at the opportunities to develop our services and expand our reach into new markets.”