Sandvik has signed a $249 million agreement with Glencore Queensland Metals to supply underground and mobile mining equipment at Glencore’s Queensland and New South Wales metalliferous mines.
The deal will see Sandvik provide drills, loaders and trucks to Glencore over a six-year period.
After inking the deal in June this year, Glencore placed an initial equipment order totalling $47 million with Sandvik supplying the first piece of equipment under the deal on September 1.
Sandvik Mining and Rock Technology global account manager for Glencore Tim Redmond said this deal was inked after more than a year of negotiations with the mining company.
Glencore issued a heavy mining equipment tender in 2018 before it requested an additional response to the tender in early 2019, asking Sandvik to provide 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 optimise the upfront capital costs and provide a competitive supply of aftermarket services moving forward.”
One of the key advantages of the partnership is that Glencore’s fleet will now be based on one technology platform, ensuring the company can promote additional automation, mine intelligence and vehicle interaction controls in the future.
Glencore Queensland Metals general manager – mining Simon Pope said the agreement was significant for the company as it would see all heavy mobile mining equipment at the company’s Queensland sites supplied by one original equipment manufacturer (OEM).
“This 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,” Pope said.
“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.
“Sandvik machines have played a role in our operations for a number of years and have a proven track record for productivity and reliability.”