Sandvik will supply Glencore Queensland Metals’ underground mobile mining equipment and aftermarket parts under a deal struck at the end of June. The agreement, valued at SEK 1.4 billion ($157 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 totaling SEK 300 million (US$34 million), which was reported in the second quarter report, with a Sandvik DD421 development drill being the first piece of equipment supplied under the deal on September 1.
Sandvik Mining and Rock Technology Global Account Manager for Glencore Tim Redmond said the deal comes after more than a year of negotiations and follows Glencore issuing a heavy mining equipment (HME) 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.
“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,” Redmond said. “Our solutions enabled us to optimize the upfront capital costs and provide a competitive supply of aftermarket services moving forward.”
Glencore Queensland Metals General Manager of Mining Simon Pope said the agreement is significant with all heavy mobile mining equipment at Glencore Queensland Metals sites being supplied by the one Original Equipment Manufacturer (OEM). “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 said.
Pope said 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. “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 added.
