Energy transition fuels mining boom
The shift to more sustainable mining and the demand for minerals required for the electrification of society are key drivers for Sandvik across Asia.
In the past decade, the Chinese government has issued a series of policies and incentives to promote green mine development. With its innovative mining equipment, Sandvik benefits from the shift to more sustainable mining. China’s mining equipment suppliers ramp up competition with Sandvik by using low cost and increasingly improved technology.
“Sandvik, on the other hand, is aiming for a niche market, targeting premium customers through our leading products, service and technical solutions for the mining and construction industries,” says Yao Jing at Sandvik.
Analysts see this as a wise strategy. “Sandvik taps into another dimension on the Chinese growth map by focusing on the premium segment and the company should be able to reap the rewards of its long commitment to China,” says Frédéric Cho.
Other important mining markets in Asia where Sandvik has a strong presence include Indonesia and Mongolia. Papua, Indonesia, for example, is home to Grasberg, the biggest gold mine and the third largest copper mine in the world. It is operated by Freeport-McMoran and Sandvik has delivered equipment there since 1997.
Block Caving and automation
Sandvik equipment is particularly suitable for block cave mining with automated loaders that allow remote operations in areas where there is a risk of flooding or sliding rock. Mine planning software from Sandvik-owned Deswik also facilitates the transition from open pit to block cave mining.
Another huge copper and gold deposit is Oyu Tolgoi in Mongolia, operated by Sandvik customer Rio Tinto. “The operator is looking into switching from diesel equipment to battery-electric vehicles in order to increase productivity and operate for longer time periods,” says Malcolm Mauger, Vice President Sales Area Southeast Asia, Sandvik Mining and Rock Solutions, adding that the main driver behind automation is to increase utilization, while the driver behind electrification is to reduce emissions, heat from diesel engines and become more sustainable.
Rising demand for copper drives mining trends
The worldwide transition to electric vehicles and renewable energy production remains a key catalyst behind the skyrocketing increase in demand for copper. To meet this demand, mining operators need to drill deeper in existing mines and step up the search for new deposits. These trends fit our offering like a glove, says Mauger.
We help operators manage their costs, while increasing productivity and efficiency as they continue deeper underground and seek to digitalize their exploration to locate new ore bodies.
What is block caving?
Sandvik mining equipment is well suited for so-called block caving, an underground hard rock mining method that enables the processing of very large ore bodies. This underground version of open pit mining involves undermining an ore body – allowing it to progressively collapse nder its own weight, reducing the need for drilling and blasting. The cost of block cave mining is about one tenth of the corresponding cost of conventional methods. Sandvik has supported the journey at Grasberg, from an open pit mine to underground operations:
“As large open pit mines come to the end of their lives, operators examine the feasibility of transitioning to low-cost, large-scale underground operations. Block cave mining is the only underground method that can offer production rates and operating costs that are comparable with open pits,” says Malcolm Mauger of Sandvik Mining and Rock Solutions.