CAPITAL EQUIPMENT NOV 2018

EDITOR'S COMMENT

TICKING THE RIGHT BOXES

H aving the right-sized fleet means estimating fleet equipment needed to meet production targets, since the main objective is to achieve the planned movement of ore within a set timeframe. To procure machinery is not a straightforward exercise; planning is essential to ensure that right equipment is obtained at the right time. To plan the acquisition you need to have consistent information about current equipment and market trends. It’s also important to have all the relevant info on performance rates, purchase price, total cost of ownership, ease of mobility and the necessary support from the supplier. This is especially true for the contract mining market. Productivity and efficiency of mining equipment are among the most

important factors that can contribute to their success, especially in tough trading conditions. Consequently, the recent trend in the global contract mining market is the immense preference for 100 t rigid haulers. Available industry figures show that the rigid hauler market is around 150-200 units per year in southern Africa. The 100 t market is by far the biggest seller, constituting about 50-60% of the region’s total rigid hauler market. This is not unique to southern Africa; the story is the same in the global market. The rigid hauler market is about 3 700 units per year in size globally, and the 100 t is by far the most popular range, followed by the 60 t range. The two sizes constitute in excess of 80% of the total market and they are truly a cut above the rest. It is in this context that we have seen several new rigid hauler launches in the 100 t size class this year. Both Volvo Construction Equipment (Volvo CE) and Liebherr have entered the 100 t rigid market for the first time, while Caterpillar also introduced its new 100 t unit recently. At the beginning of this year, Volvo CE announced its entrance into the rigid hauler market with its own Volvo brand of rigid haulers in the second quarter of 2018. The range comprises the 45-t R45D, 60-t R60D, 72-t R70D and the flagship 100-t R100E. The star of the line-up is the R100E, and it is for this reason that the model is the first to arrive in South Africa following Babcock’s recent official launch of the first unit last month. Elsewhere, following the completion of field operation trials in Austria, the first Liebherr T236 rigid hauler has arrived in South Africa. This is part of the pre-series units being rolled out to selected operations across the world to further validate the truck’s capabilities before its commercial launch. Liebherr Africa is entering the 100 t segment for the first time, armed with a model said to be the first diesel-electric truck in this size class. Barloworld Equipment, Caterpillar dealer in southern Africa, also launched

its Cat 777E recently. The new model has been well received by the local market as the successor to the respected Cat 777D model. The first three Cat 777E units in Africa went to Exxaro Coal’s Leeuwpan mine in Mpumalanga, in March 2017, and by May this year, more than 70 units had been sold to customers across southern Africa. Among these orders, it’s worthwhile noting that contract mining company, Liviero Mining purchased 16 x 777Es from Barloworld Equipment in 2017 and the units have been deployed on various coal mines in Mpumalanga. Barloworld expects Liviero to start replacing its older 777D models with the new 777E in the near future. The new 100 t offerings arrive at an opportune time for these suppliers and their principals. Industry figures show that the rigid hauler market in South Africa was in the 150-unit region back in 2015, and due to tough market conditions, the market lost half of its value in 2016, which was a very tough year for the local capital equipment sector at large. Last year, the market made a strong comeback to reach the 2015 levels, and the upward trend has continued into 2018. The market is currently being driven by the contract mining fraternity. If you look at the type of equipment this group of customers requires currently, it’s mainly 100 t excavators and 100 t dump trucks. Why 100 t? This size of hauler ticks all the right boxes for contract miners, but more importantly the mobility they require, given that their contracts are limited to 3-5 years at the moment. In mining, an important element to successfully complete projects is to ensure that you have the right-sized equipment for the job at hand. Planning of mining equipment is no frivolous task. At a strategic level, when looking to size an equipment fleet for surface mining projects, you need to consider several factors relating to equipment, including acquisition costs, operating costs, productivity, physical availability, utilisation and the condition of each mine. b

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 2