Innovative partnership with Sandvik to provide underground mobile mining equipment

A major purchase agreement will see Sandvik become the key provider of underground mobile mining equipment and aftermarket parts under a deal struck at the end of June this year.

Under this landmark agreement, valued at $249 million over a six-year lifespan, Sandvik will supply drills, loaders and trucks for Glencore's metalliferous mines in Queensland and New South Wales, including Mount Isa Mines, George Fisher Mine, Ernest Henry Mining and CSA Mine.

Sandvik will also provide drill consumables and ground engaging tools to some of our operations as well as service and support for digital and automation technology for the new Sandvik fleet.

Glencore Queensland Metals General Manager − Mining, Simon Pope says the agreement is significant with all heavy mobile mining equipment at Glencore Queensland Metals sites being supplied by the one Original Equipment Manufacturer (OEM), replacing the status quo where 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," says Simon.

Following the signing of the agreement on 30 June, Glencore placed an initial equipment order totalling AUD $47 million with a Sandvik DD421 development drill the first piece of equipment supplied under the deal on 1 September 2020.

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.

"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," says Simon.

"Sandvik machines have played a key role in our operations for a number of years and have a proven track record for productivity and reliability."

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 (HME) tender in 2018. An additional response to the tender in early 2019 was requested asking Sandvik to deliver a more innovative and collaborative solution.

"We were happy to rise to the challenge through internal workshops and open communication with the Glencore team in Australia," Tim says.

"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."

"Our solutions enabled us to optimise the upfront capital costs and provide a competitive supply of aftermarket services moving forward," says Tim.

Sandvik has had a global framework agreement in place with Glencore since 2016.