African Mining November 2021 | Página 41

CRADLE TO GRAVE •
All photos by MHS Plant and Equipment
Disruptions in global supply chains due to Covid-19 has meant a shortage of large mining equipment .
MHS Plant and Equipment can source machines globally at cost-competitive prices .
The mining equipment shortage is compounded by local OEMs reducing their stock and parts inventory .

GLOBAL SHORTAGE OF LARGE EQUIPMENT THREATENS GREEN SHOOTS

Disruptions in global supply chains due to the ongoing Covid-19 pandemic has resulted in a shortage of large mining equipment being produced by major Original Equipment Manufacturers ( OEMs ). “ For example , the lead time on 100t rigid dump trucks and larger has now been pushed to 2022 ,” says Conrad Smith , owner and founder of disposal and procurement expert MHS Plant & Equipment .
This means that major mining houses are faced with a potential procurement crunch as the commodity cycle picks up again , placing a potential constraint on any expansion or new project plans at a time when the industry needs it the least .
Another concern is that many mining houses are sitting with redundant or surplus fleet that they are struggling to get rid of in the current economic environment . The traditional route of approaching auction houses or going out to tender is not the ideal solution in this regard , highlights Smith .
“ We offer a complete turnkey solution whereby we can come in and evaluate any redundant equipment , albeit scrapped or still running , and resell it through our global network of contacts .”
Alternatively , if a mining house is on the lookout for a particular machine and is being thwarted by a long lead time , it can approach MHS Plant & Equipment as well for a specific solution in this regard . With an international network established over 25 years , Smith and his team can source machines from anywhere in the world at the most competitive rates .
The company ’ s ‘ one-stop shop ’ value proposition includes dismantling and rigging , shipping and transportation and reassembly at the required destination .
“ Our key differentiator in this niche market is our capability to be able to offer immediate short-term solutions to these problems confronting the global mining industry right now ,” points out Smith . “ As opposed to waiting a year for new rigids , for example , rather approach us and we can source it for you anywhere in the world at a cost-competitive rate . This limits any potential downtime for a mining operation , which stands to lose millions due to any disruption in productivity as a result of equipment shortages .”
Smith warns that the shortage is being compounded by local OEMs also reducing their stock and parts inventory due to the impact of Covid-19 on the global economy . However , with the mining industry at last starting to show some green shoots , miners need to put their procurement plans in place as early as possible in order to be in a position to take advantage of the upturn . This is critical , especially due to an estimated 30 % to 50 % reduction in the output from yellow metal equipment manufacturers globally , with limited numbers of new units especially in the larger size ranges .
An example of the complete solutions approach offered by MHS Plant & Equipment is a package deal it is putting together at present for Barrick Gold Corporation in Zambia . This includes 100t rigids , 120t excavators and loading tools , 16H graders and Cat D10T dozers .
“ We handle the sale , export , transport , insurance and assembly on-site with commissioning of all the equipment upon delivery ,” concludes Smith .
The shortage is being compounded by local OEMs also reducing their stock and parts inventory due to the impact of Covid-19 on the global economy .
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