Tag Archives: Mining OEM

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.

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

Cat 797F haul truck proves its worth in Tier 4 Final configuration

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

Cat says its 797F large mining truck is now available in a fuel-efficient configuration that meets US EPA Tier 4 Final emissions standards.

Through more than 16,000 hours of successful pilot machine operation and 100,000 hours of production truck operation in Tier 4 configuration, the system has proven its ability to deliver strong performance and greater fuel efficiency compared to the Tier 2 797F in most applications, the company said.

The 797F Tier 4 Final is equipped with an exhaust aftertreatment system featuring selective catalytic reduction, which uses diesel exhaust fluid (DEF) to lower NOx emissions. This Cat emissions platform is proven through more than 20 million operating hours in the field, according to the company.

The 797F aftertreatment system uses less than 11% new content, improving reliability, while the modular aftertreatment system, with readily accessible components designed for serviceability, is aligned with truck preventive maintenance intervals to maintain high availability, Cat said.

The best-selling truck in the 400-ton (363-t) size class, according to Cat, the 797F is powered by a 4,000-hp (2 983-kW) Cat® C175-20 engine, available with optimised fuel maps for customers focused on the lowest fuel burn, Tier 2 equivalent rating, and now Tier 4 Final. It is renowned for delivering class-leading payload and speed-on-grade performance, Cat said, adding that the 797F delivers the same production performance in Tier 2 and Tier 4 Final configurations.

“Beyond offering similar performance, the Tier 4 Final 797F reduces total specific fluid consumption costs (fuel plus DEF) in most applications,” Cat said. “Lower fuel burn results in longer engine life and lower repair costs.”

Field evaluations of the 797F included a wide range of applications in oil sands, deep pit copper, iron ore and coal mines. The trucks exceeded production targets and demonstrated strong engine performance in all applications, including sites with extreme ambient temperatures as well as some with altitudes greater than 16,000 ft (4,877 m), according to Cat.

Weir strengthens mining and oil & gas ties with Flow Control sale

Bulk handling, Comminution of minerals, Equipment maintenance, Metallurgy, Mineral processing, Mining equipment, Mining mergers and acquisitions, Mining services, Water management, , , , , , , , ,

The Weir Group has entered into an agreement to sell its Flow Control division to First Reserve, a global private equity investment firm focused exclusively on energy, for an enterprise value of £275 million ($360 million).

Weir, which will receive cash for the sales, said all the way back in April 2018 that it planned to sell the division. The admission came alongside the acquisition of ESCO. The transaction remains subject to certain regulatory and other approvals, with completion expected in the June quarter, the company said.

The Flow Control division primarily provides highly engineered pumps, valves and other solutions used in power, industrial and downstream oil and gas applications, according to Weir.

Weir said: “Once this transaction completes, on a pro forma basis, more than 80% of Weir’s revenues will be from attractive aftermarket-intensive mining and upstream oil and gas markets.”

Weir Group CEO, Jon Stanton, said: “The decision to sell Flow Control is part of Weir’s recent portfolio transformation which focuses the group on where we can maximise long-term value – building on our strong global leadership positions in mining and upstream oil and gas markets.”

Jeff Quake and Neil Hartley, Managing Directors of First Reserve, said: “In our view, Weir Flow Control represents an attractive growth platform in a fragmented sector, with internationally recognised brands driven by recurring high-margin aftermarket parts and services which have proven to be resilient through multiple economic environments.”

After the sale completes, Flow Control will continue to be led by current President David Paradis and his management team, Weir said.

In the year to December 31, 2018, Flow Control’s unaudited financial results included profit before tax of £23 million on a pre-exceptional items and intangibles amortisation basis.

Liebherr crawler excavators proving their worth in South Africa chromium mine

Equipment maintenance, Mine operation news, Mining equipment, Mining maintenance, Mining services, Steel and iron ore, , , , , , , ,

After more than 1,000 operating hours, three Liebherr R 920 crawler excavators are still exhibiting the fuel efficiency, manoeuvrability and hydraulic performance that convinced mining company KEDASE to buy the equipment, the original equipment manufacturer said.

KEDASE, based in Boshoek, South Africa, purchased three R 920 crawler excavators from Liebherr in 2016. They are used for trenching, pipe laying and the feeding of a screen in a chromium mine in the country.

With an operating weight of 21 t and equipped with a Stage IIIA/Tier 3/CHINA III engine with an output of 110 kW/150 hp, the R 920 crawler excavator was developed specifically for these types of applications, according to Liebherr. For KEDASE, the machines have been configured with a 5.7 m boom, a 2 m stick and a 1.15 m³ bucket.

“The R 920 concept is based on the standard European models with high levels of reliability and increased productivity combined with low fuel consumption,” Liebherr said. “Launched onto the market at Bauma 2016, the R 920 is accompanied by a revamp of the range of 20-25 t crawler excavators.”

In addition to the R 920 are the R 922 and R 924. The R 922 weighs 22 t and has an output of 110 kW/150 hp and the R 924 weighs 24 t with an output of 125 kW/170 hp. “These machines are aimed at less regulated markets like South Africa, South East Asia, Russia, China and India,” Liebherr said.

Since their arrival in 2016, the R 920 crawler excavators have met all expectations, according to the OEM.

“After more than 1,000 operating hours, these machines are currently used for nine to 12 hours every day with an average fuel consumption of only 15 l/h. The manoeuvrability and hydraulic performance, in particular, make the machines efficient on site. From the operator’s point of view, the R 920 is characterised by its speed, comfort, stability and performance: “I feel like I’m in a pickup”, one operator said.

Liebherr said the expectation is that these machines will keep performing over time and reach 15,000 operating hours.

Sandvik LHDs and dump trucks open to third-party proximity detection systems

Automation, IoT, Mining equipment, Mining safety, Mining services, Mining software, , , , , , , ,

Sandvik Load and Haul says it has developed a Proximity Detection System Interface for its underground LHDs and dump trucks.

The feature allows installation of a third-party proximity detection system (PDS) to a Sandvik underground loader or dump truck to meet legal requirements and improve safety in underground operations.

“PDSs help to improve safety at mine and construction sites where risks of collision may occur,” Sandvik said. “The PDS is generally designed to slow down and/or eventually stop the equipment in case the system detects a person or an object carrying a tag inside a predefined zone. The exact operation of the PDS always depends on the selected system and the local conditions, which vary from site to site.”

Marjut Seppälä, Product Safety Manager, Load and Haul, said: “A PDS is a legal obligation in South Africa, which is an important market area for Sandvik. We have developed the interface to meet these requirements and, at the same time, to improve safety on our customer sites. As we want to provide the same opportunity for all our customers, regardless of the market area, the interface now becomes globally available for our loaders and trucks.”

She continued: “But even though PDSs help to improve safety, they shall never be used to replace normal safe and sound operating practices.”

The PDS interface comes together with another safety enhancing feature, Speed Brake Interlock, which is used to prevent excessive speed during driving. When the Speed Brake Interlock functionality is in use, it monitors the equipment speed and guides the operator to slow down by means of visual and audible messages on the system display.

Metso Minerals division expands with incorporation of Pumps business area

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

Metso says it is looking to better support the common customer interface and growth plans of its Pumps business area by moving it into its Minerals division.

Previously, Pumps was reported under the Flow Control segment together with Valves. Metso said it will continue to report externally under the two segments, Minerals and Flow Control, and will run its operations through seven business areas grouped under these two segments.

“The majority of Metso’s Pumps business area’s customers are common to the Minerals segment, and sales already largely operate through the Minerals market area structure,” Metso said. The Pumps business area will now be headed by Mikko Keto, who acts also as President of Metso’s Minerals Services business area, while John Quinlivan will continue as President of the Valves business area.

The change is effective immediately, with Pumps to be reported under the Minerals segment as of January 1.

Outotec continues to invest in technology as sales rise

Automation, Base metals, Energy minerals, Environmental, Equipment maintenance, Industrial minerals, Metallurgy, Mineral processing, Mining equipment, Mining finance, Mining services, Mining software, Precious metals, Steel and iron ore, Water management, , , , , , , , , , , , , , , , , ,

Outotec registered a year-on-year improvement in financial performance in 2018, excluding a €110 million ($125 million) ilmenite smelter project provision, the company reported today.

The company’s sales increased 12% in 2018 to €1.28 billion, while its order intake jumped 4% to €1.25 billion. The €110 million provision for the Saudi Arabia project saw adjusted earnings before interest and taxes (EBIT) come in at -€46.2 million, compared with €33.5 million in 2017, yet President and CEO, Markku Teräsvasara, said adjusted EBIT would have almost doubled to €64 million had it not been for this deduction.

“In 2018, we made significant progress in several areas,” Teräsvasara said. “In the beginning of the year, the market for minerals and metals technologies improved, but global macroeconomic uncertainties and reduced metal prices started to affect the market sentiment, and we saw several larger investment decisions being delayed into 2019.

“This was demonstrated in our order intake, which increased 4% year-on-year (in comparable currencies 8%) but declined in the fourth (December) quarter from the comparison period,” he said.

The company’s largest order in the December quarter – around €34 million – was for the delivery of battery chemicals technology in Finland for the Terrafame plant to be built in Sotkamo. The company has since followed this up with a contract in Australia to convert spodumene to lithium hydroxide.

Teräsvasara said profitability continued to improve in the Minerals Processing segment, with EBIT coming in at €78.5 million, compared with €60 million a year earlier.

Outotec said copper, gold, and battery metals projects were the most active during 2018, with demand for minerals processing equipment and spare parts stable throughout the year. In the company’s Metals, Energy & Water divisions, meanwhile, “solid demand” was registered in hydrometallurgical and pelletising solutions, as well as sulphuric acid plants, Outotec said.

Outotec said the €110 million provision related to possible costs for an ilmenite smelter project in Saudi Arabia. Back in October, the company said it was working with the client to investigate the reasons why one of the repaired furnaces in a first-of-its-kind ilmenite smelter had issues starting up.

“The currently estimated provision is based on progress made with the analysis of the furnace,” the company said today, adding that the provision was booked in its December quarter results.

Teräsvasara highlighted the “leading technologies” that were part of the company’s core strength in the 2018 results.

During the year, the company continued to develop its technological capabilities and grow its patent portfolio, with Outotec’s R&D investments representing 5% of its sales and totalling €57 million last year, he said.

Outotec went into a little more detail about this in its 2018 and Q4 review.

The first two industrial references of Outotec TankCell® e630s are running at the Buenavista del Cobre concentrator in northern Mexico, the company said.

“The site has reported an increase of more than 3% in overall recovery with a higher-grade copper concentrate. The TankCell® e630 flotation cell has a nominal volume of 630 m³ and is equipped with a FloatForce mechanism with a diameter of 2,200 mm,” Outotec said.

The company has also developed and filed a patent application for a thermal leaching process to convert spodumene concentrate into battery-grade lithium hydroxide. The lithium hydroxide process has been piloted at the Outotec Research Center in Pori for Critical Elements Corporation in Canada and Keliber Oy in Finland. Lithium hydroxide corresponds to the change in demand in the metal salt markets, it said.

Meanwhile, the new Hybrid filter plates that are 40% lighter, and, therefore, more competitive than conventional plates, were introduced to the spare and wear parts markets during 2018, Outotec said. “The new plates also improve the filtration capacity, provide low residual moisture in the cake, and reduce operational costs,” it added.

Outotec has also designed a skid-mounted, modular prefabricated sulphuric acid plant which significantly lowers the installation cost and time. In addition, the modular plant offers lower operation costs, increased availability and maintainability, as well as environmentally sound and safe operation, it said. “The innovative plant concept is based on Outotec’s technology and expertise gained from 650 plants delivered globally,” Outotec said.

Meanwhile, Outotec is in the middle of a pilot study with Sweden-based miner LKAB to treat industrial waters at its Svappavaara mine in the country. The pilot started in August and consists of nanofiltration and chemical precipitation of sulphate with Outotec’s Ettringite process. The pilot has shown sulphate concentration can be significantly reduced from the inlet value of 1,800 mg/l to the level of 150 mg/l, Outotec said.

A new digital product, Outotec Health Indicator, was also introduced last year. This produces data for flotation process control when used together with Courier on-stream elemental analysers. It enables higher performance in terms of concentrate quality and recovery of valuable minerals, according to the company.

Lastly, Outotec has been developing MesoTherm™ bio-oxidation technology for leaching base metals. The development work has shown it to be effective on certain copper sulphides, yielding 98% copper dissolution.

FLSmidth seals the deal with Krebs Technequip TGW knife gate slurry valves

Coal technology, Environmental, Industrial minerals, Mineral processing, Mining equipment, Mining services, Steel and iron ore, Water management, , , , , , , ,

FLSmidth says its Krebs® Technequip™ TGW series of wafer-style knife gate slurry valves have proven themselves across the globe.

The valves are designed specifically for the harsh and abrasive slurries encountered in the mineral processing and power industries, with applications ranging from cement, sand and gravel to coal, phosphate, ash and alumina.

They are designed as a space saving option for heavy-duty applications, according to the company. The long-lasting replaceable elastomer sleeves offer a sealing solution that uses the latest technology, with the valve’s operation based on its full port design, FLSmidth said. This allows the gate to be fully isolated by the sleeves from the process in the open position.

“As the gate closes, it pushes between the two sleeves, discharging a small amount of material out of the bottom of the valve,” FLSmidth said. “This prevents material build-up in the seat area ensuring full gate closure, as well as preventing damage to the gate. When the gate is in the open or closed position, there is a 100% bi-directional bubbletight seal and zero downstream leakage.”

To ensure long life, all valves are supplied with dust boots – or ‘bellows’ – as a standard feature, protecting valve stems and actuators. Hardware such as nuts, bolts, and washers, meanwhile, are zinc-plated to protect against corrosion. Each component is also individually epoxy-painted before assembly.

Several actuation options are available, including pneumatic, hydraulic, electric and bevel-gear actuators, as well as manual hand-wheel operators, the company said.

The choice of materials is vital to the valves’ performance, reliability and lifespan, according to FLSmidth. “Sleeves are constructed of dense moulded elastomer, complete with an integral stiffener ring moulded into the sleeve. They are also available in a range of different materials to suit the application,” the company said. The valve housing is ASTM A536 cast ductile coated for corrosion resistance, while the upper cavity is pre-lubricated with a silicone-based grease, to improve actuation and decrease wear.

Founded in Toronto, Canada, in 1957, Technequip was acquired by FLSmidth in 1993 and integrated into the company in 2007. With installations across the globe, the slurry valves have proven themselves worldwide with features like the fluorocarbon gate coating for reduced friction during actuation, the high strength stainless steel gate clevis and two-coat epoxy paint. The valves also contain no packing gland, as this can jam the gate, and have machined gate guides so no spacer bars are required. Various accessories are available, including solenoids, limit switches and junction boxes.

Mining equipment demand boosts Metso’s Q4 order numbers

Automation, Bulk handling, Comminution of minerals, Equipment maintenance, Mineral processing, Mining equipment, Mining finance, Mining maintenance, Mining services, Mining software, Water management, , , , ,

Metso capped off a strong 2018 with a December quarter that saw a more than 50% year-on-year increase in operating profit.

The mining and mineral processing-focused company said market activity continued to be healthy during the quarter, backed up by a 38% rise in orders received (in constant currencies), to €904 million ($1.03 billion). Adjusted earnings before interest, taxes and amortisation (EBITA) came in at €98 million, or 10.4% of sales, while operating profit was €93 million, compared with €60 million a year earlier.

During the quarter, Metso completed two acquisitions – one in its valves business in India and another in the UK related to pyro processing solutions in mining.

The company said demand for mining equipment remained high during the December quarter, with orders growing 35% in the Minerals segment and 19% in the Flow Control segment. “[The] majority of projects (in mining) were related to replacements and brownfield projects,” Metso said, adding: “The demand for services was healthy both from mining and aggregates customers. This was supported by high production rates at mines and the customers’ appetite for productivity improvements.”

In 2018, Metso’s adjusted EBITA came in at €369 million, 51% up from 2017’s €244 million, while sales were 18% higher at €3.17 billion.

In terms of market outlook, Metso said it expected activity in its Minerals business to continue to grow in both equipment and services business. It had the same outlook for its Flow Control business area.

Metso’s President and CEO, Pekka Vauramo, who joined the company in November, said: “We had a strong fourth quarter. Orders received increased in both Minerals and Flow Control year-on-year and sequentially. Our top-line growth was also solid and resulted from improved delivery capability in all businesses.”

He added: “The sales mix continued to tilt towards higher share of equipment than services, which had an effect on our profitability. Most importantly, both our segments grew and improved their profitability year-on-year.”

Vauramo concluded: “Going forward, Metso has a solid position to further improve its performance. We are in a strong position to create value for customers, shareholders and other stakeholders. People, technological knowhow and global presence are our most important assets and we will continue to leverage them.”