Glencore Technology has introduced a performance guarantee to underwrite 25 per cent of the capital value of technology installed by clients.
This guarantee is around two to three times as high as the industry standard of 5–10 per cent cited by Glencore, which is not usually publicly announced by companies.
Glencore Technology technology lead Mike Hourn said the performance guarantees did not express confidence in the technology and were “mild assurances”.
“We felt we were in a position to seriously explore a greater performance guarantee,” he explained.
“Don’t get me wrong, we weren’t cavalier about it. We’ve looked at past installations and put some thinking into it.
“But the fact remains that the core performance requirements we should and do deliver for our technologies are supported by evidence. So we took a breath and backed ourselves.”
The company conducted market research that suggested there were improvements to be made surrounding such guarantees.
Glencore Technology cited its IsaMill grinding technology, Jameson Cell flotation technology and Albion Process leaching technology as examples of real-world applications to which the guarantee has been applied so far.
“In round figures, we have 130 metalliferous installations of IsaMill, all performing as they should; 350 Jameson Cells and they remain best in class; and Albion Process, has exceeded expectations in delivering value, ramp-up and performance. So we feel these are appropriate for a market leader to provide to our clients”, said Hourn.
The company plans to bring its service guarantee to other projects, starting from this month.