REBUILDS & REPAIRS
Dismantling of ultraclass haul trucks at Herco Equipments ' facility in La Negra , Antofagasta , Chile
In another life
From the complete resale of end of life mining trucks , to major developments in the world of engine overhaul , Paul Moore looks again at this important part of the mining equipment industry
What happens to mining trucks when they die ? Many in the past have sat for years without resale allowing component deterioration or if they are sold it is purely for scrap . That is because from the manufacture of the truck and shipping from the factory until the total stop at end of life , the manufacturer and / or dealer accompanies the asset owner , but upon completion of its life cycle , the support attention ends , and the equipment becomes decommissioned in many cases without a preservation strategy .
But there are entrepreneurs now ensuring that value is realised from every part of the truck . Herco Equipments is a young Chilean company that is making a unique name for itself in the used mining equipment business .
IM recently caught up in person with Manager Director Osvaldo Pasten : “ When I founded this company with Ismael Galaz in 2019 , we set out to change the market in Chile . The used equipment and spare parts market is very specialised but it was very shadowy in terms of how equipment was sold and the deals being made . We wanted to bring transparency and structure and especially with regard to pricing . We set out to buy the whole used end of life mining truck asset - these have included Cat 797A / B / F , 793D / F , 789C / D , 777F / G plus Komatsu 830E-1AC , 930E-2 , 930E-3 , 930E-4 as well as other models . We then strip it down and sell all the usable components around the world - contributing to a circular economy and ensuring the components can have a second life . Our customers refurbish the components and rely on Herco Equipments as a major supplier of the cores .” He added : “ If your used asset is sitting in the mine , we will come and get it from the operation and take it to one of our locations to be stripped down . Most of the truck that cannot be sold as separate components is still sold as scrap steel .”
To date Herco has exported to 14 countries with the business organised via offices in Antofagasta and Santiago in Chile , with a Dallas , Texas office opening in 2021 , and plans to open a location in Peru . “ So far we have only concentrated on selling the core items as they are - frame , transmissions , final drives , electric wheel motors , differentials , torque converters , front corners , axles and hydraulic suspensions as well as diesel engines , main alternators plus control cabinet and dynamic brakes .”
But in the near future its plan is to sell remanufactured components . “ We already have partner locations and customers in the US , Canada and Australia , for example , but we plan to eventually do this ourselves .” When Herco started out only about 3 % of end of life mining trucks in Chile were actually being sold for parts .
Herco Equipments has two main customer sets - in Chile the mining industry itself - but globally its main customers are reman centres . “ They recondition the parts which are then used as part of big rebuild programs such as mid-life rebuilds , for which many of the parts are either hard to come by anyway or have long lead times if ordered from the OEM - but many of the parts taken from disused trucks have a lot of life in them .”
Its figures are impressive – between 2019 and 2023 Herco bought more than 68 Cat and Komatsu mining trucks ; 26 earthmoving and support equipment units , again all Cat and Komatsu ; plus over 400 Cat and Komatsu major components . It has made purchases from a long list of big miners including Minera Escondida , Minera Cerro Colorado , Collahuasi , Minera Los Colorados , Minera Antucoya and Minera Sierra Gorda but also the Cat dealer Finning Chile .
Herco told IM : “ We have managed to become the leading independent company in the
purchase of disused large-tonnage equipment worldwide . By selling your disused equipment to Herco Equipments , the assets are part of a method that aligns with the processes of sustainability of your mining company , focusing on our circular economy model .”
They illustrate this with a typical Cat 797 truck that it has bought - in terms of kilograms , of the total kg of each truck , on average 70 % has been reused and 28 % recycled leaving only 2 % waste . Herco says it reaches a good agreement for both buyer and seller . “ Our agreements are reflected in purchase and sale contracts attached to the policies of each mining company seller . Our purchases are EXW as is , therefore our demobilisation processes are executed as planned and controlled activities at all times , using specialist suppliers . Our dismantling processes are carried out using high control standards , with a focus on maximising the salvage of components , parts and pieces for reuse . Components and reusable parts and pieces enter service workshops for their evaluations , repairs and commercial readiness for sale as guaranteed repaired components . Non-reusable components and parts are decontaminated and assigned as scrap to an accredited supplier . Any waste is segregated and disposed of through authorised companies .”
Herco Equipments says it is the only Chilean company that provides voluntary reportability to its mining suppliers with traceability and measurement of percentages of reused components , parts and pieces , as well as recycling and final disposal of oils and hydrocarbons with certification in sight of our mining suppliers . “ Given the commitment we have as a company and as a country for a more sustainable future we are committed to the guidelines agreed upon in the Paris agreement signed in December 2015 by Chile and 195 other countries .”
Currently , its main dismantling area is located in the La Negra industrial sector of Antofagasta . There it brings together a group of local suppliers who provide it with the necessary services for the work , and from there it distributes the components , parts and pieces to be reused . Herco is also carrying out a feasibility study for a new dedicated hub which it calls its PRE project ( Equipment Reconversion Plant ) where it would build on its existing business with its own reman business .
New life for underground machines in Chile
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66 International Mining | FEBRUARY 2024