Tag Archives: VDMA Mining

VDMA Mining notes German equipment turnover uptick in latest market outlook

The VDMA, which represents around 3,500 German and European mechanical and plant engineering companies, says Germany’s mining equipment sector continues to recover from the COVID-19-related downturn, with turnover for the first nine months of the year up by 18% to €3.75 billion ($3.9 billion).

“The mining industry is doing well at the moment, benefiting from a high order backlog,” the organisation said in its latest report. “In 2021, the manufacturers of technology for the extraction of raw materials achieved a total turnover of €3.18 billion in Germany as a production location.

“From January to September 2022, turnover of €3.75 billion increased by 18% compared to the same period last year. In the first three quarters, however, incoming orders declined by 26%.”

The industry hopes that the excellent mood and response at the bauma trade fair, in Munich, Germany, will be able to close the gap in incoming orders by spring and is counting on its technical expertise, especially in digitalisation, the VDMA noted.

Exports by mining equipment manufacturers in the period from January to August 2022 were 25% up on the previous year at just under €1.24 billion. VDMA Mining estimates that the industry will end the current year with a 15% increase in turnover.

The importance of modern mining technology for Germany as an industrial location has increased with the energy transition, according to the organisation.

Manufactburers are relying on digitalised and, where already possible, autonomous extraction and production processes – also in their own companies.

VDMA Mining added: “The bureaucratic obstacles, such as the German Supply Chain Act, which is ahead of the future EU law and can hardly be implemented, a shortage of skilled workers and the negative attitude towards mining are challenges that must be overcome in order for Germany to have a future as a high-tech location.”

Dr Michael Schulte Strathaus, Chairman of the VDMA Mining Executive Board, said at the Mining Industry Meeting in Essen, Germany, on November 17: “In addition to all the political and economic uncertainties we are currently facing, we must not lose sight of the fact that a sustainable industrial location in Germany is also a guarantor of social stability and our democratic system. Modern mining equipment secures our supply of raw materials and is, therefore, indispensable.”

VDMA anticipates Germany mining tech sales drop in 2021

While demand for metals and minerals has boosted order intake for many original equipment manufacturers, the sales of Germany mining technology companies have lagged so far in 2021, according to the VDMA.

In 2020, the industry generated total sales of €3.38 billion ($3.83 billion), the organisation, which represents around 3,300 German and European mechanical and plant engineering companies, said. From January to September 2021, sales were down 18% year-on-year at €2.8 billion, while exports in the January-August 2021 period were down 10.4% year-on-year at just under €960 million. Notable drops in export sales were observed in the EU27+UK, China, Russia and Australia, with increases in the USA and NM East unable to make up for that shortfall.

The industry expects sales to pick up by the end of 2021 and anticipates only a moderate decline of 5-10% overall, the VDMA said.

The most common export goods to all markets are, in descending order: crushing and grinding technology, deep drilling technology, mining and roadheaders and tunnel boring machines, the organisation noted.

Michael Schulte Strathaus, Chairman of VDMA Mining (pictured in the centre), expects sales numbers to improve, going forward, as the ‘green mining’ revolution continued to take hold.

“Without mining technology, nothing works in industry now and in the future,” he said at a press conference. “If we want to maintain our current standard of living, we need the corresponding raw materials.

“Only smart mining will lead to green mining. We see our opportunities in offering the best technology worldwide that contributes to resource-saving, efficient, ‘green’ extraction and processing of raw materials.”

The smart miners putting people first

We’ve all heard about the sustained pressures mining companies are facing from stakeholders when it comes to changing the way they do business, with the use of new technology often touted as the way to transform the sector for the good of the industry and society.

Yet, as the COVID-19 pandemic has reinforced, these technologies can only work with the right suite of people to design, install, operate and maintain them.

The onset of machine learning and artificial intelligence in the mining space is expected to remove manual tasks in the exploration, development, production and maintenance processes of miners, but the real benefits come with freeing up skilled personnel to concentrate on more ‘transformative’ processes.

The same could be said for the automation of equipment and processes at mine sites, with contractors and mine owners able to use skilled workers across multiple operating stations above ground or at remote operations centres instead of being bogged down on one piece of kit on the mine site.

Keeping humans at the “centre” of this technology evolution is one of the underlying themes of the 2021 edition of the Smart Mining Conference (SMC2021), hosted by the Institute for Advanced Mining Technologies of RWTH Aachen University (AMT) and VDMA Mining, according to Aarti Sörensen, Scientific Research Assistant at AMT.

“Technology is an enabler, but you need to know what you actually want to achieve with any of these projects to be a success,” Sörensen told IM.

Aarti Sörensen, Scientific Research Assistant at AMT

A focus on this human centre transcends just the people on the mine site, or the neighbouring communities; it includes the wider society that interact, judge and rely on the outputs of mining.

Elisabeth Clausen, Professor & Director of AMT, told IM: “One aspect that is really important for the mining industry is how to deal with the public perception of the industry. All miners are lacking the talent they need to continue to grow. We have seen this come through in the numbers of university students we are educating. While every student currently looks like getting a job upon graduation, there are not enough people coming through the system with the skills required and the appetite to work in the mining sector. That is not only in disciplines like mine engineering, but also machine learning, automation, big data analytics, etc. Mining is not currently viewed as an attractive workplace when compared with the likes of Google and Amazon.”

The introduction of more ‘carbon neutral’ operations, improved safety procedures and flexible work practices will go some way to changing the perception and, to make the required leaps, collaboration will prove key.

This is a topic Sörensen and Clausen know well given the number of industry research projects the AMT is currently working on.

NEXGEN SIMS, the next generation of the EU-backed SIMS project, is a great example here.

Involving Epiroc, Ericsson, Boliden, Agnico Eagle Finland, KGHM Polska, K+S, OZ Minerals, Mobilaris MCE, AFRY, KGHM Cuprum, LTU Business, Luleå University of Technology and AMT, NEXGEN SIMS (the Next-Generation Carbon-Neutral Pilots for Smart Intelligent Mining Systems) aims to develop autonomous, carbon-neutral mining processes.

While more innovation networks are gaining traction across the globe – in Canada, the Canada Mining Innovation Council or the Centre for Excellence in Mining Innovation, and Expande, in Chile, provide examples here – Clausen said there is still some reluctance in the mining community to commit to large-scale collaboration and collaborative innovation.

“Companies see the need but have some hesitation where it involves large-scale collaboration,” she said. The dilemmas of data sharing, IP rights and the need to provide individual companies with a list of competitive advantage benefits remain.

Elisabeth Clausen, Professor & Director of AMT

“It all hinges on openness and trust,” Clausen said. “Openness can only be generated by trust.”

Sörensen said the ‘sweetspot’ for miner collaboration often comes from the mid-tier sector – those companies big enough and agile enough to commit funds and resources to projects, but not so big that they can develop their own technology in-house.

“They often open up their mine sites for demonstrations and are more open to collaboration,” she said.

“The collaboration dynamic between suppliers and miners is also changing, with miners now driving the technology development and putting their requirements to suppliers, instead of the other way round. Some miners have also built key relationships with research institutions and start-ups to come up with solutions to their problems, building collaboration or innovation ecosystems around their companies.”

Collaborations such as NEXGEN SIMS are seeing all parts of the mining ecosystem converge to help decarbonise the sector, as well as change the perception of how mines are operated. The use of 5G communication networks, battery-electric and automated machinery could see operators track equipment from a city centre in real time, without the need to even step on site.

What is clear is that more collaborations like this will be needed to decarbonise the industry, make it more appealing to younger people considering their career options, and change the ‘dirty’ and ‘dangerous’ connotations that are often associated with the word ‘mining’.

This represents a challenge as well as an opportunity, but, like all technology developments/transformations, it requires the ‘buy-in’ of people to be a success.

Clausen concluded: “We are convinced that the benefits of all the technologies and innovations can only be fully leveraged if we have the right people in place. Putting people at the centre of all activities is of utmost importance to change and challenge the perception of mining.”

SMC2021 will bring business leaders, policy makers and researchers together to discuss what ‘smart mining’ means against such a backdrop.

IREDES and VDMA Mining team up to offer another interoperability avenue

The International Rock Excavation Data Exchange Standard (IREDES) and VDMA Mining, part of the Mechanical Engineering Industry Association (VDMA), have agreed to work together to address the industry’s growing interoperability needs.

The cooperation agreement will provide a second way to exchange IREDES standardised data across mining operations, according to IREDES.

IREDES is an established way of exchanging equipment-related operational information in mining, for example, allowing drill plans to be sent to rigs, or transferring performance information from LHDs and trucks to production departments.

IREDES said: “IREDES defines the mining- and equipment-related content contained in different profiles. These profiles are exchanged in widely used and fully open XML technology, which makes them compatible with a number of other XML-related standards used in digital transformation.”

VDMA Mining, meanwhile, represents well-known, mainly medium-sized companies in the fields of surface and underground mining, processing technology as well as consulting, research and development. On top of that, the VDMA cooperates with the OPC (Open Platform Communication) Foundation to develop “companion specifications” for its various branches, according to IREDES.

“In mines, supervisory control systems are using OPC/UA (Unified Architecture) to acquire process information. In order to enable a smooth integration of information from mobile underground equipment into the overall process coordination, IREDES has joined up with VDMA to integrate the IREDES content into an OPC/UA companion specification for mining,” IREDES said.

“OPC/UA, thereby, will become a second way of exchanging the IREDES standardised content.”

Through this cooperation, IREDES profiles, beside their availability as XML data sets, will be accessible as OPC/UA profiles for integration into the traditional automation world.

IREDES members include global mining companies as well as major global equipment manufacturers, system integrators and software providers.