A landmark $250 million agreement signed mid-year has established Sandvik as major provider of drills, loaders and trucks for Glencore Queensland Metals operations over six years.
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Sandvik will supply Glencore's underground mobile mining equipment and aftermarket parts and will see Sandvik become the key provider of drills, loaders and trucks for Glencore's metalliferous mines in Queensland and New South Wales.
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 worth $47 million with a Sandvik DD421 development drill the first piece of equipment supplied under the deal on September 1.
Sandvik Mining and Rock Technology's Global Account Manager for Glencore, Tim Redmond says the deal comes after more than a year of negotiations and follows Glencore issuing a heavy mining equipment tender in 2018 and then requesting an additional response in 2019 asking for 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," Mr Redmond said.
"Our solutions enabled us to optimise the upfront capital costs and provide a competitive supply of aftermarket services moving forward."
Glencore Queensland Metals General Manager Mining, Simon Pope says the agreement was significant with all heavy mobile mining equipment at Glencore Queensland Metals sites being supplied by the one Original Equipment Manufacturer whereas before equipment from multiple suppliers was used.
"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," Mr Pope said.
Mr Pope says having a fleet with a single technology platform ensures Glencore are in a good position to undertake mine intelligence projects and promote additional automation and vehicle interaction controls moving forward.
Mr Redmond said automation readiness was a key factor and Sandvik was committed to improving customer's productivity and profitability.
"Sandvik showcased technologies solutions for collision avoidance, tracking of assets and automation to Glencore and other industry players at the Digitization in Mining conference in Brisbane in 2019," he said.
"The beauty of the Australian Glencore deal is that it creates a model that can now potentially be duplicated in other markets and with other commodities.
"Rather than each party simply trying to get the best price, this agreement adds new value to the relationship and creates benefits for everyone."
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
