Tag Archives: mining equipment

Metso Minerals orders hold up in face of COVID-19 impacts

Comminution of minerals, Equipment maintenance, Mining consumables, Mining equipment, Mining finance, Mining maintenance, Mining services, , , , , ,

Metso’s orders and sales held up in the March quarter in the face of the onset of COVID-19, with the company saying activity in its mining equipment business continued in line with expectations.

The company posted a 5% year-on-year increase in orders received to €1.07 billion ($1.15 billion), while its sales were unchanged at €832 million. Its operating profit dropped to €73 million, from €100 million a year earlier, but it was still able to generate free cash flow of €78 million during the three-month period.

Metso said the measures taken to prevent the spread of COVID-19 started to have a material impact on its businesses and financial performance only towards the end of the March quarter. It was around this time that the company outlined its COVID-19 strategy.

“In February, the businesses and operations in China were affected but this impact was offset later, thanks to a fast ramp-up in March,” it said. “Quarterly orders from China were higher year-on-year, while the drop in sales will take longer to catch up.”

Lockdowns were introduced in mid-March in other countries, with the restrictions in India having had the biggest impact on Metso, it noted. There was some positive news, with, as of mid-April, operations in India and South Africa being permitted to ramp up.

In terms of customer demand, Metso said, from mid-March, the biggest COVID-19-related impact came from its aggregates equipment business, where customers and distributors significantly reduced their investments.

The mining equipment business, however, continued in line with expectations.

“The importance of the mining operations for many countries has been visible in the continued healthy demand for spare and wear parts,” Metso said, while noting that restrictions relating to travel and workforce mobility have had an impact on mining services by limiting service work carried out at customers’ mines.

Its Minerals business saw a 6% year-on-year jump in orders received in the March quarter, while services orders rose 5%. Growth of 8% in equipment orders was supported by the acquisition of McCloskey, it said, noting that mining equipment orders increased slightly against a high comparison period, “highlighting the healthy market activity.”

Metso reaffirmed that its partial demerger and the transaction to create Metso Outotec and Neles continue to progress according to plan, with closing currently expected to take place on June 30, 2020, subject to regulatory approvals.

Outotec to deliver sustainable plant improvements at First Majestic Silver assets

Comminution of minerals, Mine operation news, Mineral processing, Mineral project development, Mining equipment, Mining services, Precious metals, , , , , , , , , , , ,

Outotec has been awarded a contract by First Majestic Silver for the delivery of minerals processing technology for its mill optimisation projects at the San Dimas silver-gold mine and Santa Elena silver-gold mine, in Mexico.

The circa-€15 million ($16.3 million) order has been booked in Outotec’s 2020 March quarter order intake.

Outotec’s scope covers the design and delivery of an AG mill, counter current decantation thickener and a tailings filter for San Dimas, and thickeners and a tailings filter for Santa Elena. The deliveries are expected to take place in 2020 and 2021, it said.

Outotec previously delivered HIGmill® high-intensity grinding mills to First Majestic, with one of these going to the Santa Elena operation (pictured), where it has significantly improved the recovery of silver and gold.

Paul Sohlberg, Head of Outotec’s Minerals Processing business, said: “The energy efficient AG mill and environmentally sound thickeners and tailings filters will enable First Majestic to improve plant operations in a sustainable way.”

Back in January, First Majestic President & CEO, Keith Neumeyer, said the company’s 2020 focus remained on “adopting new innovation projects to modernise our processing plants to achieve higher recoveries, improve efficiencies and reduce operating costs”.

He added: “We have witnessed significant benefits from high-intensity grinding at our Santa Elena operation in 2019 and we plan to install the same technology at San Dimas in 2020.”

The company, at that point, said it expected to increase production at San Dimas by restarting mining operations at the past-producing Tayoltita mine by the end of the March quarter, expecting to ramp up production to 300 t/d by the end of 2020. The Tayoltita mine was the original mining area at San Dimas and known to contain higher silver grades.

It said a new 3,000 t/d HIGmill circuit and AG grinding mill would be installed in the second half of 2020 to further improve recoveries and reduce operating costs.

At Santa Elena, meanwhile, it said it planned to install an AG/SAG grinding mill by the end of the year, with a dual-circuit flowsheet implemented to separate the ultra-fine and coarse particles prior to leaching to further improve metallurgical recoveries and reduce energy costs.

Komatsu boosts productivity on P&H electric rope shovels

Equipment maintenance, Mining consumables, Mining equipment, Mining services, , , , , ,

To maximise the performance of one of the hardest working pieces of equipment at a mine site, Komatsu has launched a new line of dippers for its P&H electric rope shovels.

The new TRC dipper series is named for the three design innovations that make up its next-generation technology designed to increase productivity, reduce total cost of ownership and enhance safety, the company said.

The three innovations include:

  1. A trapezoidal shape that maximises capacity without adding additional weight;
  2. A roller latch system and door that lowers door stress levels resulting in improved life and reduced rebuild costs; and
  3. A cast equaliser that provides up to 1.98 m of additional dig and dump height, creating more flexibility to keep up with changing mine plans.

These new dippers are designed to help mine operators improve productivity through a design that increases dipper volume, maximises full digging forces and provides reliable door opening and closing, Komatsu said.

“Total cost of ownership is lowered, compared to traditional dipper designs, through the use of components that will frequently last rebuild to rebuild and design factors that reduce wear,” Komatsu said. “Longer living components and a reduction in wear translates to fewer maintenance needs, to lower cost and drive for zero harm.”

Brian Fox, Vice President for Surface Products, Aftermarket and Technology at Komatsu Mining, said: “We’ve got a deep history of working closely with our customers in the mining industry to develop the tools they need to solve the unique challenges posed by mine sites.

“The design and technology built into our new TRC dippers is based on the knowledge and experience we’ve gained over 135 years in the mining business.”

Sandvik cuts work hours, temps/consultants, spend on COVID-19 concerns

Mining equipment, Mining events, Mining finance, Mining industry recognition, Mining services, , , ,

With the COVID-19 virus continuing to affect business operating conditions, Sandvik says it has initiated measures to support savings both in the short and long-term.

The initial focus is on short-term activities with quick impact such as reduced worktime, reduction of temporary employees and consultants, and reduced discretionary spend, it said. Structural changes and reductions in work force to adapt to changed market conditions in the longer term are, in addition, being reviewed.

While the company said business development during January and February 2020 had been in line with its expectations – with the exception of China where the COVID-19 situation led to one week of prolonged closing of its operations around the Chinese New Year (the operations are now up and running and approaching normal capacity) – during March, the uncertainty has gradually increased in many other parts of the world, it explained.

“Most production units in the Sandvik Group have been able to continue operating, however due to government restrictions the production is currently on hold in Italy, India and partially in other regions,” Sandvik said.

“Although Sandvik currently believes that the direct impact on its financial performance during the first (March) quarter will be limited, Sandvik has identified a need to mitigate future effects on our businesses from the rapid spread of the coronavirus.”

The “temporary short-term actions” primarily related to reduced working hours, will generate savings of about SEK1.5 billion ($147 million) in 2020. The initiation of long-term “structural measures” imply costs of about SEK1.4 billion reported as items affecting comparability in the operating profit in the June quarter of 2020, with the majority impacting cash flow, Sandvik added. It expected savings of about SEK900 million from these long-term structural measures, which will reach full annual run-rate by the end of 2021, though.

Sandvik said: “Actions to reduce worktime will mean a temporary negative effect on the compensation for many employees. The members of the Sandvik Group Executive Management have therefore also decided to reduce their salary by 10% during this period.”

On top of this, the Sandvik Board of Directors proposes that the Annual General Meeting resolve on a dividend of SEK3/share, compared with the previous proposal of SEK4.50/share.

“It is the Board of Directors’ intention to convene an Extraordinary General Meeting before the end of October this year to resolve on an extra dividend of SEK1.50, assuming that the market has stabilised and the financial position of the company so permits.”

Stefan Widing, who only took up the role of President and CEO of Sandvik on February 1, said the COVID-19 situation had escalated around the world and the company had to adapt to this “dramatic change in global business conditions”.

He said: “Divisions within all three business areas are taking prompt action in order to secure our long-term market leading positions and protect our company.”

COVID-19 pandemic hits Caterpillar supply chain

Mining equipment, Mining events, , , , ,

Caterpillar says the spread of the COVID-19 pandemic is starting to impact its supply chain, with the mining OEM weighing up alternative options to ensure it can continue to operate the majority of its facilities at this difficult time.

The company mentioned such a possibility in its risk factors back on February 19.

This week, Cat said it was monitoring the situation closely and supply chain teams had been executing business continuity plans, which include, but were not limited to, being alert to potential short supply situations, and, if necessary, using alternative sources and/or air freight, redirecting orders to other distribution centres, and prioritising the redistribution of the most impactful parts.

“Caterpillar is committed to continuing to execute these plans and will remain in close contact with its supply chain to monitor future possible implications, especially on production facilities,” it said.

While the company is continuing to run most of its US domestic operations and plans to continue operations in other parts of the world, as permitted by local authorities, it said it was temporarily suspending operations at “certain facilities”. It did not name these facilities.

Cat put this decision down to “uncertain economic conditions resulting in weaker demand, potential supply constraints and the spread of the COVID-19 pandemic and related government actions”.

It added: “The company will continue to monitor the situation and may suspend operations at additional facilities as the situation warrants.”

On top of shutting certain facilities in reaction to the COVID-19 outbreak and other related issues, Cat said it was continuing to implement several preventive measures to protect the safety, health and well-being of employees, customers, dealers, suppliers and communities, while also meeting the needs of global customers, at this time.

This included increased frequency of cleaning and disinfecting of facilities, social distancing practices, remote working when possible, restrictions on business travel, cancellation of certain events and limitations on visitor access to facilities.

Cat concluded: “The magnitude of the COVID-19 pandemic, including the extent of any impact on Caterpillar’s business, financial position, results of operations or liquidity, which could be material, cannot be reasonably estimated at this time due to the rapid development and fluidity of the situation. It will be determined by the duration of the pandemic, its geographic spread, business disruptions and the overall impact on the global economy.”

Following the factors mentioned above and the continued global economic uncertainty due to the COVID-19 pandemic, Cat said it was withdrawing its financial outlook for 2020, which previously estimated a profit per share outlook range of $8.50-$10.

Kwatani screens and feeders tackle manganese ore in South Africa

Comminution of minerals, Mineral processing, Mining equipment, Mining services, Steel and iron ore, , , , , ,

As a vital aspect of a plant expansion at a manganese mine in the Northern Cape of South Africa, Kwatani says it is supplying four heavy duty vibrating screens and 10 feeders to help boost throughput.

According to Kwatani CEO, Kim Schoepflin, this large-scale equipment is custom-designed and engineered for tonnage to meet the mine’s challenging operational requirements.

“Manganese ore is very demanding on vibrating screens as it has a high specific gravity and is also very abrasive,” Schoepflin says. “Our machines are engineered to perform the application’s duty requirement while being robust enough to deliver maximum uptime.”

The units being supplied include a 3.6 m double-deck scalping screen, a 3 m double-deck screen, a 2.4 m screen and a 1.8 m dewatering screen. A local OEM that has designed and engineered vibrating screens for over four decades, Kwatani has built a reputation for world-class expertise and capability, it says.

“Customers choose us for our engineering track record – developing technology that can manage the tonnages they require,” Schoepflin says. “This means understanding each mine’s specific conditions, and then building a design to meet a range of complex mechanical and metallurgical factors.”

The order to the mine is being rolled out on time and on specification to the customer’s satisfaction, according to Kwatani COO, Kenny Mayhew-Ridgers.

“The efficiency and quality of our work process allows us to design, manufacture and deliver custom-designed screens in the same timeframes that other OEMs deliver standard models,” Mayhew-Ridgers said.

This is particularly demanding as custom-designed equipment undergo an intensive design process after being verified by rigorous finite element analysis in-house, Kwatani says. Prior to dispatch, all units endure intensive testing before being commissioned on a customer’s site. For this reason, Kwatani boasts its own in-house advanced testing facilities at its Kempton Park facility, in South Africa. Aligned to ISO 9001 standards, the testing protocols have been developed in-house with decades of experience. This allows full testing similar to cold commissioning, even before delivery to site.

Kwatani stresses importance of screen servicing

Comminution of minerals, Equipment maintenance, Mineral processing, Mining services, , , , , ,

To ensure uptime on critical equipment, maintenance contracts are becoming an ever-more popular choice, according to vibrating equipment OEM, Kwatani.

The South Africa-based company should know, as it has customised contracts in place to service over 500 of its machines in the Northern Cape alone.

“Vibrating screens are critical to a mine’s material flow, which is its lifeblood,” Kwatani CEO Kim Schoepflin, says. “This requires OEMs to be experts, not just in design and manufacture, but in service support and maintenance.”

As a leading local OEM, Kwatani has seen mines gradually embrace the value of maintenance contracts to avoid costly downtime. One of its contracts covers about 400 screens on a single mining operation.

The range of its contracts extends to various commodities, from hard materials like iron ore and manganese to soft material such as coal. In one coal operation in Limpopo, Kwatani has contracted to service 160 of its machines.

Schoepflin highlights how regular, expert maintenance is vital for mines to achieve the lowest cost per tonne in their production process. However, she warns these contracts can only be conducted responsibly and effectively with the right level of knowledge and experience.

“With our depth of know-how gathered over more than 40 years, we understand exactly what inspections and critical replacement need to be done and when,” she says. “As importantly, we know how to conduct this work cost effectively.”

Accurate costing of maintenance contracts can only be based on a firm foundation of expertise, especially when contracts invoke penalties due to breakdowns. Kwatani’s experience in the field ensures the requirements of its maintenance contracts are met. This allows the company to offer a range of financial models to customers when they consider such contracts.

“We are so confident of the quality and reliability of our vibrating screens and feeders that some customers pay us a cost-per-tonne rate to maintain them,” she says. “We design, manufacture, install and commission according to their requirements, and then we take financial responsibility for keeping them fully operational.”

Long-term contracts often also include a commitment to improve and enhance the performance of the screens over time. To do this work professionally requires qualified service teams who are supported by solid engineering teams. Kwatani has developed these resources locally over more than four decades, and continuously develops skills in-house, alongside the various management systems to ensure such skills are available timeously to the customer.

“In addition to training and employing local people for a service role at our branches, we also collaborate with mining customers to empower their locally-based suppliers where this is feasible,” Schoepflin says.

She highlights Kwatani’s solution-orientated approach, combining the company’s expertise in its screening technology with the customer’s specific needs and resources.

Barloworld makes plans to establish Eurasia equipment unit

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

Barloworld says its Mongolia subsidiary has entered into an agreement to acquire 100% of Wagner Asia Equipment and 49% of SGMS LLC to help establish a new Eurasia-focused equipment unit.

The Caterpillar dealer has agreed to pay $216.8 million as part of the transaction, which will see the remainder of SGMS continue to be held by Battur Battulga, a Mongolian citizen actively involved in managing SGMS, which, Barloworld says, supplies equipment, parts and services to a key customer.

Through Wagner International LLC and its subsidiaries, the Wagner family have been doing business in Mongolia for over 22 years and are a long-standing Caterpillar dealer in selected states in the US.

Wagner Asia Equipment is engaged in the business of selling and distributing construction equipment, mining equipment, power systems, and related goods and services in Mongolia, primarily under the Caterpillar brand, according to Barloworld. It recently presented four 55 t CAT773 E dump trucks to Ulz Group, a Mongolia-based company focused on mining, exploration and construction (ceremony pictured).

Barloworld, in a SENS release, said it had consistently stated its desire to allocate capital to opportunities that complement its competencies as part of its medium-term strategy.

“The group balance sheet is strong and this opportunity, adjacent to the current Russian operation, presents an attractive growth prospect within the Equipment division,” it said. “The Wagner Asia Equipment business will be combined with the current Barloworld Russian business unit into a newly formed Equipment Eurasia unit.”

The proposed transaction is subject to the following outstanding conditions:

  • The conclusion of various agreements with Caterpillar Inc (or an associated entity) in respect of the Caterpillar dealership in Mongolia;
  • The carve-out, exclusion or transfer of non-core assets, liabilities, agreements, customers and debtors held by Wagner Asia Equipment prior to completion of the proposed transaction;
  • Obtaining the consent and associated waiver of Battur Battulga to the proposed transaction and the entry into of a new shareholders’ agreement;
  • Obtaining the consent(s) and/or waiver(s) from certain third parties in respect of certain rights arising from the change of control contemplated by the proposed transaction; and
  • Gaining the necessary board approvals of the seller, the purchaser and Barloworld.

The proposed transaction is expected to complete on or about April 1, 2020, with a long stop date of October 1, 2020, Barloworld says.

Metso looks at centralising warehouse operations in Europe

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

Metso, as part of its global distribution and logistics footprint development, is initiating consultations to evaluate the potential centralisation of its warehousing operations in Europe.

The move will see Metso look at the different options related to the continuation of its current warehouse operations in nine locations, in Norway, Sweden, the UK, France, Spain, Czech Republic, Turkey, and Russia, it said. The consultations could affect around 40 warehousing employees.

Jarkko Aro, SVP for Customer Logistics at Metso, said: “Our target is to enable world-class logistics with easy scalability of operations.

“Flexible, state-of-the-art warehouse operations would allow orders to be collected and dispatched to customers directly from central warehouses. It would also enable considerable savings in end-to-end freight costs and reduced CO2 emissions.”

Kwatani upskills Northern Cape contractor to carry out maintenance work

Comminution of minerals, Equipment maintenance, Mining equipment, Mining maintenance, Mining services, , , , , ,

Specialist vibrating equipment manufacturer, Kwatani, says it leveraging a recent multi-year service contract with a large mining customer in the Northern Cape of South Africa to further boost the area’s local economy.

Kim Schoepflin, CEO of Kwatani, said: “Our branch near the customer’s mining operation has for many years employed and developed local expertise. Our latest initiative takes this further, by upskilling a local sub-contractor to conduct certain maintenance work on our behalf.”

A lengthy selection process was conducted by Kwatani to find a suitable sub-contractor, followed by ongoing training to empower artisans and other workers with specialised skills. Schoepflin says it was also important to involve the mine itself, so that it remained confident in the strength of its supply chain.

“Promoting local employment, skills and sustainability cannot be a tick-box exercise,” Schoepflin says. “It has to be based on proper engagement, hands-on training and the sub-contractor’s own commitment.”

Mining legislation and regulatory pressure can tempt stakeholders to rush such a process, she warned. “This would be a mistake; rather, it should be treated as an opportunity to strengthen the capability of all stakeholders.”

Kwatani’s 35 years of experience in heavy duty minerals applications means the OEM now has around 800 vibrating screens and feeders in the Northern Cape. The maintenance contract is an ideal opportunity to involve and foster the technical capability of local players, Schoepflin says.

It was vital that the chosen sub-contractor already had considerable experience and capacity, equipment and relevant expertise, according to the company.

“As a South Africa OEM with our own technologies and intellectual property, we are able to certify the sub-contractor and their quality of work,” Schoepflin says. “Phase 1 of our initiative will see them conducting basic service and maintenance functions.”

Kwatani retains responsibility for all work conducted, and continues with services such as detailed technical inspections, engineering support, on-site testing and diagnosis. It also supplies OEM spare parts, ensuring quality control, increased lifecycle time and reduced downtime, the company said.

Schoepflin noted that communities countrywide are eager to see more benefits from economic activity, and the country’s Mining Charter provides clear guidance on how mining companies can contribute to this process. “Kwatani’s mining customer is therefore also eager and incentivised to promote local businesses, both directly and through the supply chains of its main local contractors,” Kwatani said.

Schoepflin highlights the importance of supporting local firms to build sustainability in the local economy. This also strengthens the skills base for this economy to diversify, making it less dependent on mining and more resilient to commodity cycles and eventual mine closure.

“Our own business is local from the ground up, sourcing 99% of direct purchases from inside South Africa,” she says. “So, we understand the positive role that local procurement and skills development can play.”

It also makes financial sense to root the company’s cost base in the local currency, making it less vulnerable to foreign exchange fluctuations and allowing more affordable and consistent pricing.

“Working collaboratively with our mining customers and businesses close to their operations, we can help spread local economic benefits,” she says. “In turn, we can continue to develop our focus on leading-edge technology and quality manufacture.”