Capital Equipment News November 2017

BUSINESS

The facility has already achieved approximately 70% localisation level of material and component sourcing.

The new Sandvik LH115L is mainly targeted at narrow reef underground chrome and platinum mining applications.

The Sandvik executive team at the official opening of the new production facility.

LH115L,” says Greisiger. While the Sandvik LH115L builds on the proven base of its predecessor, the machine benefits from several modern safety improvements to meet the stringent mining legislative requirements. For example, the machine comes with steel braided fuel lines as standard. A key advantage of steel braided hoses is that they don’t get brittle like their rubber counterparts, preventing the risks of fuel leakages and potential fires in underground applications where such accidents are out of question. In line with the Department of Mineral Resources’ new legislation that compels the use of Proximity Detection Systems (PDSs), the new machine has an optional PDS interface, making it compatible with an array of such technologies from different suppliers. “We have also designed the machine with uptime in mind,” says Greisiger. “Although it benefits from latest safety features, it has simplified maintenance and service processes for our customers.” The new Sandvik LH115L is mainly

based business cycles. “Mining markets are cyclical by their very nature. They go up and down and that’s the nature of the business,” says Rosengren. He has, however, noted that some minerals have increased in value quite dramatically during the last year or so. “While some commodities have picked up significantly, the platinum side of the sector is still very much under pressure,” says Rosengren. Despite a constrained platinum sector, Andrews tells Capital Equipment News that Sandvik still sells about 40 low profile loaders for underground applications per year, which is still a good number, especially in depressed market conditions. He reasons that, apart from a strong product that has proven itself over the years, the company’s key competitive edge is its strong service structures in South Africa. “We understand the needs of our customers. They need accessibility to us, reduced cost per tonne and availability of their machines,” says Andrews, adding that the local production facility will significantly shorten lead times. b

targeted at narrow reef underground chrome and platinum mining applications, but Greisiger says there has also been some interest from the diamond mining fraternity as well. Sandvik has already run a prototype machine that has completed its trial run. Andrews says the feedback from customers has been phenomenal. “We have sold the first four units we have trialled. Four other units currently on the production floor are also going on trials on a test-to-buy basis,” adds Andrews. Encouraging outlook Despite a slow global mining market, Rosengren is encouraged by the rebounding commodity prices. He reiterates that the investment in a local production facility is based on the long-term outlook of the mining sector in southern Africa, which he believes is bright despite a set of challenges currently setting the industry on the back foot. He reasons that investments of this nature are informed by long-term prospects, not just short-term, quarterly-

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