EQUIPMENT FINANCE , RENTAL AND LEASING
The equipment National Group will supply Anglo American ’ s Capcoal operations in Queensland , Australia , includes a fleet of Komatsu 830E dump trucks
AMT can supply clients with equipment requirements for a new mine or fleet expansions with various rental and finance options .
Sandvik ’ s underground mining equipment is now available to rent , or on a rent-to-purchase basis from Amalgamated Mining and Tunneling under the new alliance partnership .
“ It was important that we partner with an OEM that has a diverse line of equipment with great support ,” President of Amalgamated Mining Group , Tom Flanagan , said . “ With Sandvik being an industry leader in equipment technology , it will allow us to offer more options to our clients .”
The company will now carry products like Sandvik ’ s DD422i , DD421 and DD212 development jumbos ; DS311 and DS312 mechanised bolters ; as well as a wide range of Sandvik ’ s loading and hauling equipment , including i-series models like the LH517i loader and TH545i truck .
Sandvik ’ s recently released Dual Controls drilling package , developed in conjunction with Byrnecut Australia , will also be available from AMT . The package is available for DD422i and DD422iE development drills and permits operators to complete both standard face drilling and ground support .
Sandvik Canada Inc ’ s VP , Peter Corcoran , said : “ This new partnership with Amalgamated will give Sandvik an expanded network to provide access to our technologically advanced equipment to a wider audience in Canada .
“ Amalgamated has an existing network that nicely complements Sandvik ’ s , and the customer service that Amalgamated is known for will make them an excellent partner to deliver Sandvik equipment to those customers ; we are very excited to begin the journey with this organisation .”
Amalgamated will also offer used Sandvik equipment , refurbished with OEM genuine parts .
Australian rental market
As equipment delivery times push out and skills shortages bite , the appeal of equipment rentals continues to grow in the key mining market of Australia .
One company to benefit from this is National Group , which is comprised of leading companies from the mining , resources , transport and logistics industries . It says it has continued recent strong operating momentum into 2022
with a major new contract for Anglo American Australia starting up .
The company is supplying heavy earthmoving equipment on a rental basis to Anglo ’ s open-pit coal mines at its Capcoal operation in the Bowen
Basin ( Lake Lindsay and Oak Park ). The equipment includes a fleet of Komatsu 830E dump trucks , a Liebherr R 996B mining excavator , Cat D10T Crawler dozers , Cat 777G water cart , 775G service truck and a Cat 24M grader .
“ We have an excellent working relationship with Anglo ,” National Group Maintenance Superintendent , Damien Melville , said . “ We understand the site ’ s equipment needs and have developed a good delivery and maintenance record on this project .”
National Group has supplied equipment for Anglo ’ s Capcoal operation for three years . The latest contract will double the amount of equipment that National Group supplies Capcoal and further expand the company ’ s presence in the Bowen Basin . Up to 30 National Group maintenance staff will work on the new and existing contracts at the Anglo coal mines , operating in six-person crews . Melville , who has over 25 years ’ experience in mining , leads the team .
National Group says it is positive about demand for mining equipment in the Queensland coal sector in 2022 .
“ We are getting continuing good interest for equipment hire in coal ,” National Group Founder , Mark Ackroyd , said . “ There ’ s a lot of activity on the ground .”
Ackroyd said the Anglo contract will help National Group create more jobs in Queensland and expand its fleet there . “ Queensland coal is a very important market for National Group and a source of growth for us over the years ,” he said . “ We ’ ve made a long-term investment in Queensland coal and remain optimistic about its future .”
The Anglo contract is the second major new project for National Group in recent months . Newcrest Mining , last year , awarded National Group with a surface-mining contract at its Cadia mine in New South Wales .
Leveraging leasing
The case for leasing large open-pit equipment has been made on a few occasions by Canadaheadquartered Equinox Gold .
The company , which produced over 600,000 oz of gold and operating cash flow of $ 321 million in 2021 , has started up and expanded projects with leased equipment , including the Mesquite mine in California , USA .
The company acquired the mine back in 2018 from New Gold , having produced 64,900 oz of gold in the first half of that year .
Just last year , the company said it was renewing its truck fleet at Mesquite with the addition of 10 new Caterpillar 793 haul trucks via a $ 43 million lease . This investment will support operations for a substantially longer mine life than contemplated when the company acquired Mesquite in 2018 and will reduce costs over the life of mine , it said . Production at the mine was expected to come in at 120,000-130,000 oz in 2022 .
And , looking to a new project in Canada , Equinox said it was also considering its equipment leasing options .
The company stated in its 2021 results , released in February 2022 , that it had commenced full-scale construction at its 60 % - owned Greenstone project in Ontario , Canada . This project , which came with a construction budget ( 100 % basis ) of C $ 1.53 billion ($ 1.23 billion ), including a $ 177 million contingency , could produce around 400,000 oz / y of gold on a 100 % basis when fully ramped up .
Equinox noted that the initial cash spend at Greenstone could be reduced by approximately $ 100 million through lease financing for mobile equipment and offset economically by up to $ 70 million of pre-commercial production revenues ( at a $ 1,750 / oz gold price ).
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APRIL 2022 | International Mining 63