Tag Archives: mining equipment

COVID-19 pandemic hits Caterpillar supply chain

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

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

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

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

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

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.”

Mikko Keto to head up FLSmidth’s mining division

Mikko Keto is set to join FLSmidth as President, Mining Industry, less than two weeks after leaving his post as President of Minerals Services and Pumps at Metso.

Keto, who will embark on his new role from early July 2020, will also become a member of the Group Executive Management team at FLSmidth. The appointment follows current President, Mining Industry, Manfred Schaffer’s decision to retire in 2020.

Keto worked for Metso for 10 years, the last two of which he headed up the Minerals Services and Pumps business area, where he delivered growth in services along with profitability improvement, FLSmidth said. He also served as a member of the company’s Executive Team.

His prior roles for Metso include Senior Vice President, Spare Parts, Senior Vice President of Performance Services business line, President of Automation Services, Vice President of Flow Control Services, and various line management positions. Before joining Metso, he was Head of Sales for the Maintenance business unit at KONE Corp and held senior management and sales positions at Nokia Networks, with assignments in multiple countries.

FLSmidth CEO, Thomas Schulz, said: “Mikko Keto will lead the FLSmidth Mining organisation in capturing profitable business opportunities. He comes with an extensive experience in Service Line Management, Spare Parts and lifecycle offerings. He brings a strong commitment to customer partnerships, and believes strongly in delivering significant enhancements in performance, sustainability and asset optimisation.”

Keto said: “I am excited to join FLSmidth and help drive profitable growth in the mining business and further develop FLSmidth’s portfolio of solutions towards zero emissions. FLSmidth has close to 140 years’ experience, excellent technologies and outstanding competencies in its global workforce.”

On the retirement of Manfred Schaffer, Schulz said: “Since joining FLSmidth in 2014, Manfred Schaffer helped navigate an extended mining industry downturn and led the mining organisation through the transition to a new way of working. In the face of market headwinds, Manfred travelled extensively in order to meet with as many customers as possible and support sales opportunities. I am very thankful for Manfred’s strong contribution to our mining business over the last five years.”

Aramine and Epiroc sign mining and tunnelling distribution deal

Building on an already strong partnership, Epiroc and Aramine have signed a distribution contract that will see the France-based company become Epiroc’s official distributor of underground mining and tunnelling equipment in France and several Central and West African countries.

Aramine, which is already the official distributor of Epiroc drilling, loading and rock transport products, said: “The Epiroc product range for mines and tunnels perfectly completes the portfolio of machines dedicated to galleries of small and medium sections designed by Aramine.”

The African countries that Aramine will service include the Central African Republic, Benin, Burkina Faso, Cameroon, Chad, Congo-Brazzaville, Côte d’Ivoire, Gabon, Gambia, Guinea-Conakry, Equatorial Guinea, Liberia, Mali, Mauritania, Niger, Senegal, Sierra Leone and Togo, according to the company.

Marc Melkonian, President of Aramine, said: “Epiroc’s trust is a mark of recognition of our long-standing partnership, and this obvious collaboration between our two companies allows us to offer a wide and complete solutions range for mines and tunnels to our customers.”

Aramine is strengthening its presence in certain countries in line with the Epiroc distribution deal.

For France, Pierre Donnadieu, a specialise in underground mining and tunnelling will join as the new Regional Sales Manager, while, on the African continent, the distribution of Epiroc products is ensured by Aramine Burkina, located in Burkina Faso’s capital Ouagadougou.

Jean-Baptiste Corona, Director Epiroc France, said: “The long-term link between Aramine and Epiroc is historic regarding both our collaboration and the distribution of the products of our respective brands. It is therefore an important evolution of these relations since we work hand in hand in very active and demanding markets such as France and West Africa. We are developing a new local offer with this partnership, combining expertise, services and quality products.”

JSW Australia enlists help of BBurg for customised drill rig development

Drill contractor JSW Australia says it has formed a strategic alliance with German drill rig manufacturer BBurg to develop customised drill rigs specifically suited to local conditions.

The partnership with BBurg also supports the ongoing evolution of the JSW fleet, the company said.

The first product of the new alliance is the HD2500RC, a leading technology rig developed to tackle challenging terrain at the Fortescue Metals Group Solomon Hub site in the Pilbara of Western Australia (pictured), JSW said. The first rig is expected to be deployed on site early next year with a second planned for delivery later in the first half of 2020.

JSW CEO, Jeff Branson, said: “The terrain at Solomon makes the preparation of drill pads difficult and expensive, which created an opportunity for a high powered, small footprint drill rig. With many years of experience working at the Solomon site and having experienced the challenges posed by the terrain, we shared ideas and concepts with BBurg, which provided the foundation for the development of the new rig.”

Branson added: “BBurg’s knowledge and experience in the development of top hammer and down-the-hole machines for mining applications has enabled us to custom-build a rig that is ideally suited to the site conditions, and we are excited about putting it to work on site.”

The HD2500RC has the following key features:

  • Low footprint with width of 3.5 m;
  • High power with capacity to push 32.3 cu.m/min of air at 500 psi down the hole;
  • Rod handler to increase productivity and improve safety;
  • 330 m of rod capacity on board; and
  • Full wireless remote control.

The alliance with BBurg is part of a broader JSW strategy to ensure that its fleet is continually upgraded and improved to meet the changing needs of the market, the company said.

“BBurg’s customer-driven engineering approach, which tailors rigs to specific applications, resonated with us as it supports our ability to provide customised drilling services to our clients,” he said.

“The HD2500RC is the first of several new rigs that we will be introducing in the near future.

“Our fleet is reviewed and upgraded regularly, and we are excited about the new rigs that will be added, making the latest technology available to our clients and supporting the achievement of their objectives.”

AMG to distribute Getman equipment in Canada mining market

Amalgamated Mining Group (AMG) says it has signed an exclusive distribution agreement for OEM equipment and spare parts with Getman Corp.

This deal will see Alberta-headquartered AMG represent Getman in the Canada mining market “adding a prestigious utility vehicle product line to our ever-expanding portfolio”, the company said.

Getman’s underground equipment range includes production support machines, mechanical scalers, products for concrete spraying and low profile and coal equipment.

AMG added: “With over 90 years combined experience in the underground mining industry, we are now better suited to jointly provide your mining operation complete customised equipment and support solutions.”