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Sandvik to establish new production unit in Malaysia on underground LHD, truck demand

Automation, Mining equipment, Mining services, Power supply for mines, , , , , , , , , ,

Sandvik is establishing a new production unit in Malaysia for manufacturing underground loaders and trucks in an effort to answer growing demand for its battery-electric vehicles (BEVs), the company says.

Equipment production is planned to begin in the December quarter of 2023 following factory upgrades and other site improvements.

While the new production unit within Sandvik Mining and Rock Solution’s primary focus will be BEVs, it will also manufacture conventional loaders and trucks as well as battery cages. Annual manufacturing capacity is planned to increase gradually to 300 loaders and trucks and 500 battery cages by 2030.

The new facility in the 445-ha Sendayan TechValley business park, 70 kilometers south of Malaysian capital Kuala Lumpur and 15 km west of state capital Seremban. The factory is 90 km southeast of Port Klang, Malaysia’s largest seaport and one of the busiest container terminals in the world.

Mats Eriksson, President of Sandvik Mining and Rock Solution, said: “Malaysia is among the most technologically developed countries in Southeast Asia and has abundant skilled labour, strong local industrial suppliers and reliable infrastructure. Our mining customers in Asia Pacific will enjoy shorter lead times for equipment manufactured to the same Sandvik standards for quality and safety.”

The new factory will span more than 8,000 m and include 15 versatile assembly bays. It will support the manufacture of all Sandvik load and haul equipment models and is independent of existing supplier chains, the company explained. Production ramp-up will begin later this year with Toro™ LH517i loaders followed by Toro™ LH518iB, Sandvik’s newly-announced automation-ready battery-electric loader, in the June quarter of 2024.

Patricio Apablaza, President of Sandvik Mining and Rock Solutions’ Load and Haul division, added: “Demand for our loaders and trucks is exceeding our current production capacity at our existing factories. The establishment of our new production unit in Malaysia will enable flexible manufacturing of both conventional diesel and battery-electric mining equipment.”

Sandvik to deliver ‘biggest BEV fleet to date’ for Foran’s McIlvenna Bay

Automation, Base metals, Energy minerals, Environmental, Mineral project development, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , , , , , , , , , , , , ,

Foran Mining has selected Sandvik Mining and Rock Solutions to supply a fleet of 20 battery-electric vehicles (BEVs), including trucks, loaders and drills, for its McIlvenna Bay project in Saskatchewan, Canada.

Set to be one of the world’s first carbon-neutral copper development projects, McIlvenna Bay will be powered by clean hydroelectric power and designed to take advantage of Sandvik’s latest technological advances in sustainable mining, the OEM says.

Sandvik’s biggest BEV fleet to date will include seven Sandvik 18-t-payload LH518B loaders (pictured dumping into a TH550B), six Sandvik 50-t-payload TH550B trucks, four Sandvik DD422iE jumbo drill rigs, two Sandvik DL422iE longhole drills and one Sandvik DS412iE mechanical bolter. Delivery of the equipment is scheduled to begin next year and continue into 2025, Sandvik says.

Sandvik will also provide on-site service support and Battery as a Service by Sandvik at the underground copper-zinc mining project located in east-central Saskatchewan.

Jakob Rutqvist, VP Strategy and Commercial for Sandvik Mining and Rock Solutions’ Battery and Hybrid Electric Vehicles (BHEV) Business Unit, said: “This record contract is the culmination of a year-long collaborative effort between Foran Mining and Sandvik and demonstrates a shared vision that electrification will drive the future of sustainable mining. BEVs have enormous potential to reduce a mining operation’s carbon footprint, and Canada continues to be the epicentre for mining electrification and a blueprint for what to expect in other major mining regions very soon.”

Copper and zinc are critical metals for the transition to a low-carbon future as essential elements of electrical grids, solar panels, wind turbines and batteries. The McIlvenna Bay project intends to supply those minerals in a way that will not only be carbon neutral but ultimately have a net positive impact on the climate, according to Sandvik.

Dave Bernier, Chief Operating Officer of Foran Mining, said: “This is a very exciting period for Foran as we continue to execute on our initiatives to permit, construct and operate McIlvenna Bay. Sandvik is a global leader in industrial battery technology and we look forward to working together on our project. Utilising battery-electric equipment with semi- and fully-autonomous capabilities can help us achieve carbon neutral targets and provide a safer working environment, which is part of our Net Positive Business strategy as we look to deliver critical metals essential for global decarbonisation in a responsible and socially-empowering way.”

Foran Mining conducted a thorough analysis during its 2020 prefeasibility study to determine the investment case for BEVs compared with diesel. The company determined that BEVs would deliver better financial results at McIlvenna Bay when considering the savings generated through lower ventilation capital and operating costs.

That report, authored by AGP Mining Consultants Inc, envisaged the potential use of 7 Sandvik LH517i LHDs and 11 Artisan Vehicles (Sandvik) Z50 battery electric trucks for a 3,600 t/d of polymetallic ore operation.

Stefan Widing, President and CEO of Sandvik, said: “I am very pleased that Foran Mining has chosen Sandvik to deliver our leading battery-electric solutions for the pioneering McIlvenna Bay project. We see very strong momentum for our mining electrification offering, which offers great potential in driving more sustainable mining, helping customers to boost productivity, reduce greenhouse gas emissions and improve workers’ health.”

A dedicated on-site project team will be jointly working with the mine’s operations team to ensure the products and services in the delivery scope support the alliance on Foran’s journey towards more productive, efficient and sustainable mining, Sandvik said.

“Battery as a Service by Sandvik will enable McIlvenna Bay to get the most out of its battery-electric equipment by relying on unrivaled expertise to manage the capacity and health of batteries and chargers throughout their long lives,” it added.

Marathon taps Caterpillar Finance for equipment lease at Valentine gold project

Mineral project development, Mining equipment, Mining finance, Mining services, Precious metals, , , , , , , , , ,

Marathon Gold Corp says it has executed a credit-approved commitment letter with Caterpillar Financial Services Limited for equipment lease financing related to the development and operation of the Valentine gold project in Newfoundland, Canada.

The commitment letter with Cat Financial contemplates $81 million of equipment leasing for Caterpillar trucks, excavators, graders, loaders and dozers, for the purpose of loading, hauling, road maintenance, waste dump maintenance and primary pit support for the project.

The lease will be available to the company upon release of the project from its federal Environment Assessment process, review of the project’s updated feasibility study, satisfaction of a cost to complete certification and other customary conditions, Marathon Gold said.

An April 2021 feasibility study outlined an open-pit mining and conventional milling operation at Valentine with a 2.5 Mt/y processing rate over a 13-year mine life with a 31.5% after-tax internal rate of return and initial capital costs of C$305 million ($237 million). The project has estimated Proven reserves of 1.40 Moz (29.68 Mt at 1.46 g/t) and Probable reserves of 650,000 oz (17.38 Mt at 1.17 g/t).

Matt Manson, President and CEO of Marathon, said: “We are very happy to be announcing today our equipment leasing commitment with Cat Financial, another significant milestone in our project financing arrangements for the Valentine Gold Project. This agreement will provide financing for the project’s mobile mining equipment through project development and into the first several years of mining operations at an attractive overall cost of capital for Marathon.”

The lease announcement follows hot on the heels of Marathon Gold signing a Letter of Intent with SNC-Lavalin to complete detailed engineering for the project’s mill and major facilities, and develop related equipment and construction packages.

NRW cements Karara Mining services contract

Mining equipment, Mining services, Steel and iron ore, , , , , , ,

NRW has followed up on a letter of intent with Karara Mining Limited for mining services works at the Karara Iron Ore mine in Western Australia, sealing a formal contract with the company.

The contract value is circa A$702 million ($502 million) over a five-year duration, with the project workforce averaging an estimated 250 personnel.

Located 200 km southeast of Geraldton in the Shire of Perenjori, Karara is the largest mining operation and the first major magnetite mine in the Mid West. It produces a premium, high-grade concentrate product for export to steelmakers.

With an expected mine life of 30-plus years, Karara’s operation includes a large open-pit mine, complex ore processing and beneficiation plant and significant infrastructure and logistics networks.

The works to be performed include load and haul, drill and blast and run of mine re-handling with the drill and blast component to be undertaken by NRW’s wholly owned subsidiary, Action Drill & Blast Pty Ltd.

In addition, the work includes train loading and rehandling of the product stockpiles together with miscellaneous dayworks at the mine site, camp and access roads.

Key mining equipment required for the project including three 600 t excavators and a fleet of 220 t trucks is being progressively mobilised to site for commissioning, with works commencing in March 2022.

NRW Chief Executive Officer, Jules Pemberton, said: “I am delighted that NRW has now been formally awarded the contract and I look forward to a long and successful partnership with Karara Mining.”

Karara Chief Executive Officer, Changjiang Zhu, said: “NRW is an established Western Australia-based mining and civil contractor with extensive open-cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services. We look forward to commencement of mining services early next year.”

ERG to acquire Hitachi EH4000 AC-3 trucks, EX5600E excavators for SSGPO operation

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

Eurasian Resources Group (ERG) has signed a cooperation agreement with Eurasian Machinery LLP, the official provider of Hitachi specialised equipment in Central Asia.

The agreement will see 12 Hitachi EH4000 AC-3 dump trucks and two Hitachi EX5600E hydraulic excavators delivered this year to the Kacharsky open pit iron ore mine, part of ERG’s Sokolov-Sarybai Mining Production Operation (SSGPO), in Kazakhstan.

This stands as one of the most significant acquisitions of specialised mining equipment in Kazakhstan’s history, according to ERG.

The new equipment, boasting 220 t lifting capacity, will be used for overburden operations and the transportation of iron ore, and is part of a large-scale reconstruction of the entire Kacharsky site aimed at a considerable increase in iron ore production volumes at SSGPO, ERG says.

The delivery of the specialised equipment will offer remarkable increases in load capacity and provide further advantages when working on a large scale, according to the company.

In addition to delivering specialised equipment, Eurasian Machinery will perform a wide range of maintenance works, including the construction of service infrastructure and the supply of necessary spare parts over the next 10 years. They will also offer specialised simulator training to ERG’s drivers.

As part of the agreement, which will be carried out according to the maintenance and repair contract principles, ERG will purchase up to 50 units of specialised mining equipment.

Sandvik Mining and Rock Solutions bolsters Argentina service offering

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

To reduce response times, increase service quality and be closer to key mining clients, Sandvik Mining and Rock Solutions is decentralising its workshop in Buenos Aires, Argentina, to invest in a service centre in Caleta Olivia in the Province of Santa Cruz.

The maintenance and repair workshop for mining equipment, which opened in July, is strategically located and equipped with advanced systems such as South America’s first test bench for transmissions, axles and converters, according to Sandvik. It not only allows for the equipment to rotate, but can also take a heavy load, helping to guarantee reliability and quality of repairs.

“The objective of the Sandvik service centre in Caleta Olivia is to deliver results with high quality standards, in a timely manner,” Sebastián Issel, Country Manager of Sandvik Argentina SA, said. “To do this, we are strongly committed to the strategic development of local suppliers.”

The workshop entails a reception area, a 1,775-sq.m service area for repairs (featuring capacity for four service teams), a specific area for component repairs, training rooms and offices. The workshop is designed to carry out repairs of all types of components and equipment that Sandvik currently has in service in Argentina, including surface and underground drills and underground trucks and loaders.

The new facilities will also serve to complement training connected to mine sites for Sandvik technicians and customer representatives alike, Sandvik said.

As a supplier to many key mining operators in the southern region of Argentina, Sandvik says it sees the opening of the new service centre as an important move to provide a more localised service offering. The opening of the Caleta Olivia workshop represents a distribution point and satellite to have a faster response when a customer needs a specific component or spare part, it said. Its location in Caleta Olivia allows for less travel and smooth shift changes for service technicians.

Sandvik’s presence in key mining and construction provinces in Argentina delivers, the company says, a strategic combination for customers in the area, with the headquarters located in San Justo and the facilities in Caleta Olivia serving as the distribution and repair centre in the region.

GHH India’s contract mining arm wins plaudits for work with Hindustan Zinc

Base metals, Mine operation news, Mining equipment, Mining services, , , , , , , , , , , , , , , ,

GHH India’s recently established contract mining arm, GHH Bumi Mining Service, has notched up its first significant award, being recognised by Vedanta Group/Hindustan Zinc Ltd (HZL) for the work it is doing at the Zawar Mala zinc-lead underground mine in Rajasthan, India.

In a recent online event, GHH Bumi Mining Service, established late last year, was named as the recipient of the Best Performing Business Partner by the companies.

The award winner was chosen out of all business partners and recognised a job well done, GHH said.

Over the last six months, GHH Bumi has been carrying out contract mining at Zawar Mala, and was presented the award, GHH says, based on excellent performance involving all contract mining activities, including those related to safety, production and asset optimisation.

Since January, GHH BUMI has been responsible for production and mine development with more than 350 employees at Zawar Mala. For this purpose, the company has access to more than 20 LHDs, dump trucks and drilling rigs from the GHH Group.

Dr Jan Petzold, CEO of GHH Group, said: “With this award, we as GHH Group see ourselves confirmed in our efforts as a reliable business partner for HZL – a cooperation that started almost four years ago with the supply of mining machinery and has resulted in being awarded as mining contractor and OEM.

“This is a special incentive to be able to conclude the second mine developer and operator contract with HZL, which is currently in preparation.”

The latest generation of GHH mining equipment, with its new dump truck MK-42, LF-14 and LF-10 LHDs as well as two FM 2.3 boom drill rigs from GHH group company, Mine Master, are on their way to India and are expected to be on site beginning of August, GHH said.

GHH says GHH Bumi is also currently working on preparing for the expansion of the Mochia Balaria Decline project, where a rapid development proposal is under way.

Sandvik’s Scrivens heads back to Australia to reinforce APAC sales team

Automation, IoT, Mining equipment, Mining people, Mining services, Power supply for mines, , , , , , ,

Sandvik Mining and Rock Solutions’ Asia-Pacific region has further strengthened its leadership team with the appointment of Wayne Scrivens as Vice President, Sales Area APAC.

An experienced mining-sector leader, Scrivens has held the role of Sandvik Vice President for Load & Haul product line for four years, based in Turku, southern Finland. During this time, the Load & Haul division developed the iSeries intelligent trucks and loaders, acquired Artisan Vehicle Systems and introduced Sandvik’s first battery electric loaders and trucks.

“In his 18 years with Sandvik, Scrivens has also held various roles within the company’s underground coal and hard-rock business, as well as in Parts & Service,” the company said. He will start in his new role in Brisbane, Queensland, on April 1, 2021, after returning home to Australia.

Sandvik President for Parts & Service, Erik Lunden, said: “Wayne has extensive leadership skills, a track record of proven performance and a strong commitment to safety and sustainability. He has the capabilities needed to ensure Sandvik Mining and Rock Solutions in APAC is positioned for continued growth and future development. I also very much look forward to seeing the difference he is able to make in helping customers solve challenges and become more productive.”

Scrivens (pictured) says he is excited to be heading back to the APAC region: “I’m delighted to be returning to Australia to take on this new role after spending four years working with Sandvik in Europe. My core focus in APAC will be on supporting customers across the region, while also strengthening our focus on automation, electrification and digitalisation, and the value these solutions can deliver to our customer’s operations.”

He added: “Sandvik has recently placed a high level of focus around developing sustainable business goals related to circularity, climate change, safety, and fair play. The idea is that a sustainable approach can open the way for new ways of working that will drive efficiency and productivity. This, in turn, opens up new markets, helps support our customers and helps us sustain long-term growth.”

Chris Parham will remain in the Acting Sales Area Manager role until Scrivens takes up his new position.

Autonomous loading, hauling set to sparkle at Codelco’s Diamante

Automation, Base metals, Mine operation news, Mineral project development, Mining events, , , , , , , , , , , , , ,

One of the three underground projects to make up the El Teniente New Mine Level development, in Chile, is set to use state-of-the-art autonomous technologies, Codelco’s Javier Cornejo told attendees at Massmin 2020 today.

In a presentation titled, ‘Design of drawpoint spacing at Diamante Project – El Teniente Mine’, Cornejo confirmed that the company planned to use 13 yd³ (9.9 m³) LHDs and 60 t haul trucks in autonomous mode at the copper project, with only assisted loading required on the LHDs.

The project, which will use conventional panel caving with hydraulic fracturing, is due to have a production capacity of 35,000 t/d, with each autonomous loader extracting 152 t/h to ore passes and each haul truck transporting 208 t/h to 420 t/h ore bins. From here, the ore will head to the processing plant via 830 t/h autonomous rail haulage.

Diamante’s development will involve 40 km of horizontal development in total, along with 2 km of vertical development. It also contemplates a new access tunnel to El Teniente. In more detail, Diamante will include the main undercut at level 2060, production level (LHD transport from 102 drawpoints to ore passes – in total 1.4 Mm³) at 2038, ventilation level at 2020, truck haulage level at 2000 (trucks to ore bins), feeding the main existing mine rail haulage FFCC T8 system at 1980 level via two crosscuts.

It is one of three underground projects that make up the El Teniente New Mine Level project. Diamante and the other two – Andesita and Andes Norte – will help access the deepest levels of the mine and extend operations by 50 years, according to Codelco.

In the company’s most recent September quarter report, Codelco said the El Teniente New Mine Level project was 62.6% advanced. Due to COVID-19, the project was halted on July 4, with work restarting on Andesita and Diamante in August.

Codelco’s Board of Directors recently approved $730 million and $513 million investments in Diamante and Andesita, respectively.

Sandvik and Glencore agree on ‘innovative’ equipment, services partnership

Automation, Base metals, Equipment maintenance, Mine operation news, Mining equipment, Mining maintenance, Mining services, , , , , , , , ,

Sandvik is to supply Glencore Queensland Metals’s underground mobile mining equipment and aftermarket parts under a deal struck at the end of June this year.

The agreement, valued at SEK1.4 billion ($160 million) over a six-year lifespan, will see Sandvik become the key provider of drills, loaders and trucks for Glencore’s metalliferous mines in Queensland and New South Wales, Australia. Sandvik will also provide parts, service, rock tools, and digital and automation technology for the new Sandvik fleet.

Following the signing of the agreement on June 30, Glencore placed an initial equipment order totalling SEK300 million, which was reported in the June quarter report, with a Sandvik DD421 development drill the first piece of equipment supplied under the deal on September 1, 2020.

Sandvik Mining and Rock Technology’s Global Account Manager for Glencore, Tim Redmond, says the deal comes after more than a year of negotiations and follows Glencore issuing a heavy mining equipment tender in 2018. Glencore requested an additional response to the tender in early 2019 asking the company to deliver a more innovative and collaborative solution.

Redmond explained that Sandvik was happy to rise to the challenge.

“We spent nearly a year working closely with the Glencore team to identify exactly what was needed for the long-term success of their assets,” he says. “Our solutions enabled us to optimise the upfront capital costs and provide a competitive supply of aftermarket services moving forward.”

Glencore Queensland Metals General Manager − Mining, Simon Pope, says the agreement is significant with all heavy mobile mining equipment at Glencore Queensland Metals sites being supplied by the one OEM, replacing the status quo where equipment from multiple suppliers was used.

“This innovative partnership with Sandvik will help us improve the way we operate and maintain mobile equipment in our underground mines by providing us with a real reduction in the total cost to operate our primary fleet, an important factor in enabling a sustainable future for our mining operations,” Pope says.

As a leading mining equipment manufacturer, Redmond says Sandvik is committed to improving customer’s productivity and profitability.

“Sandvik showcased technologies solutions for collision avoidance, tracking of assets and automation to Glencore and other industry players at the Digitization in Mining conference in Brisbane in 2019,” Redmond says.

Having a fleet with a single technology platform ensures Glencore is in a good position to undertake mine intelligence projects and promote additional automation and vehicle interaction controls moving forward, according to Pope.

“We look forward to working with Sandvik to share operational and maintenance insights through new and emerging technologies and unlocking further improvements in safety for our people and the productivity of our mines,” he said. “Sandvik machines have played a key role in our operations for a number of years and have a proven track record for productivity and reliability.”

Redmond concluded that the Australia Glencore deal creates a model that can now potentially be duplicated in other markets and with other commodities.

“Rather than each party simply trying to get the best price, this agreement adds new value to the relationship and creates benefits for everyone,” he said.