Tag Archives: Western Canada

Finning flags Cat truck fleet renewal, rebuild and autonomy potential in Western Canada

Automation, Base metals, Energy minerals, Equipment maintenance, Mining equipment, Mining maintenance, Mining services, , , , ,

Finning is sensing the potential for future fleet renewals, rebuilds and autonomy conversions from its Caterpillar off-highway truck customers in Western Canada as the average age of its Cat truck population in this region increases.

Commenting on this during its September quarter results – which saw revenue and gross profit drop 21% and 15%, respectively – the company was able to provide some positive forecasts for its business in Canada and Chile.

Finning said it was gearing up for higher production out of Canada’s oil sands sector in 2021, explaining output had recovered from the lows seen during the onset of COVID-19 and the company was expecting an increase next year.

“Oil sands producers’ truck fleet utilisation returned to pre-COVID-19 levels at the end of September, and contractor fleets have begun to increase utilisation and should ramp up further in Q4 (December quarter) 2020 and into 2021,” the company said. “We expect product support activity in the oil sands to improve in Q4 2020 and into 2021, driven by catch up on major rebuild and maintenance work and an increase in oil production and non-production mining activities.”

Finning said while restricted capital spending and ongoing cost containment were impacting demand for new mining equipment, the company expected mining product support activity to improve as customers increase production output and resume full-scope maintenance activities.

Finning’s mining customers in Western Canada operate around 620 large and ultra-class Caterpillar off-highway trucks, of which 6% are autonomous (mostly in the oil sands). The average age of this Caterpillar truck population in Western Canada is about 11 years.

As mentioned, this large and ageing fleet is expected to drive opportunities for future fleet renewals, rebuilds and autonomy conversions, as well as continued demand for product support, the company said.

It added: “We are also seeing a notable resumption in request for proposal activity from Canadian mining customers.”

In the Chile mining sector, meanwhile, Finning said COVID-19-related operating restrictions were easing, with customers beginning to catch up on component exchange and major maintenance work.

“We expect mining product support revenue to recover significantly as we exit 2020 and begin 2021,” it said.

Finning was optimistic about mining recovery in Chile in 2021, driven by a strengthened copper price and expected increase in copper production, it said.

Over 570 large and ultra-class Caterpillar off-highway trucks with an average age of 11 years are currently operating in Chile’s copper mines and will continue to drive demand for product support, it added.

“We are also encouraged by the resumption of Teck’s QB2 project – the first deployment of autonomous trucks in Chile – and have started to deliver equipment to QB2 in Q4 (December quarter) 2020,” Finning said.

Finning said it has also seen a notable increase in request for proposal activity from mining customers in Chile.

Komatsu Mining puts down roots in Western Canada with $40 m facility

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

Komatsu Mining has announced plans for the construction of a new facility to support the growth of its mining business in Western Canada, a region known for the oil sands industry, as well as significant coal operations.

The company plans to invest approximately $40 million to construct a 85,000 sq.ft (7,897 sq.m) sales and service facility in downtown Sparwood, British Columbia (artists impression shown), where the company has been operating for more than 30 years, it said.

Komatsu plans to break ground at the new site in early August, with construction to conclude by the end of 2020.

Steven Droste, Komatsu’s Regional Manager – Western Canada, said: “This facility will be a great new place of work for our employees while enhancing our capabilities, so we can continue to provide our customers unrivalled service delivery.”

Komatsu will continue to operate out of its leased facility in Sparwood until the new building is complete. The company purchased the 15 acre (6 ha) parcel for its new facility from the District of Sparwood and is working to prepare the land for development, it said.