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COMPANY PROFILE

2013

SANDVIK

Sandvik Mining: Growing with major new partners


COMPANY REPORT

Sandvik Mining: Growing with major new partners Editorial – Joe Forshaw Production – Tonnie Geddes Sandvik have been serving the mining industry in South Africa since 2005. Their skills, expertise and experience has seen them recently awarded with two major contracts which will help them become an even more important player in the sector. In February, it was proven that mining is still one of the foremost industries in South Africa and although the industry is constantly changing and evolving, it is still a driver of the economy and a vital part of day to day life for millions of South Africans. The proof of this came at the annual Investing in African Mining Indaba held in Cape Town last month the world’s largest mining investment conference and the largest mining event in Africa. Anglo American CEO-Designate, Mark Cutifani, gave a keynote address to delegates at the exhibition and said that the mining industry is the most important industry in the world and that change over the next few years is vital. “We have to make changes to transform the countries we work in.We have changed more in the past five years than in the past 50 years. The next five years will be critical. “Mining is integral to everything we do; it is the most

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important industrial activity on the planet. “It is critical to understand how to really engage with communities. We must listen to what communities want to be, not tell them who to be. We can change the lives of communities forever. We can go from being an extractive industry to a development industry. “The things we do [as the mining industry] are so important to global society, but the communities where we do business get the rough end of the stick.” Mr Cutifani will take over as CEO of one of the world’s largest mining company in April, succeeding Cynthia Carroll who was also present at the event and stated that the company was fully behind platinum mining in South Africa. The outgoing CEO said: “The critical starting point is that the boards of Anglo American and Anglo American Platinum are totally committed to ensuring a sustainable platinum business for the future - for the benefit of all stakeholders.”


SANDVIK MINING AND CONSTRUCTION

MR340 Roadheader

Mr Cutifani was also keen to show his confidence in South Africa as a mining industry centre saying: “I am a believer in South Africa. I am an optimist on South Africa - I never miss an opportunity to promote the country.” These positive messages coming from two of the industry’s commanding figures may have gone someway to assuring stakeholders that mining in South Africa is ready to transform and move forward, following a turbulent few years.

“The size and complexity of this system and the fact that Sandvik provides a complete integrated mining system of Sandvik surface and underground mining equipment, again demonstrates our capability to deliver wide-ranging high-tech solutions in the area of continuous mining and materials handling applications”, said Gary Hughes, President of the Sandvik Mining business area. The contract is reportedly worth just under R1 billion and will contribute to Sandvik Mining’s business during the years 2013 until 2015.

INDUSTRY LEADERS One of the companies exhibiting at the Investing in African Mining Indaba was Sandvik Mining. A division of the Sandvik Group (a global high-technology, engineering group with advanced products and worldleading positions), Sandvik Mining services the industry by offering the world’s widest range of equipment for rock drilling, rock excavation, processing, demolition and bulk-materials handling. In South Africa, Sandvik Mining has over 150 employees, turns over more than R200 million per annum and is based in Boksburg, Johannesburg. On a global scale, the company has around 13,200 employees in the mining division and sales in 2011 amounted to approximately R45 billion. These figures show that this is more than a retail outlet for industrial tools – this is one of South Africa’s, and the world’s, leading mining tool specialists. The company’s ability was recently entrusted by another big name in the industry – Sasol Mining (Pty) Ltd, when the two penned a contract that will see Sandvik supply materials handling systems, both underground and surface, for a new coal mine. The range of supply includes engineering design, procurement and construction for the Shondoni Mine Materials Handling system.

ROYAL BAFOKENG PLATINUM A second major contract was being celebrated by Sandvik Mining in South Africa at the start of the year, as the company announced in January that it had been selected by Royal Bafokeng Platinum to supply equipment including drill rigs, roof bolters and underground excavation vehicles to the flagship platinum project, Styldrift. Phase one of the project saw 83 machines ordered at the end of December 2012. The machines will be delivered in 2014 but various other projects like the related apprenticeship training programme, community ‘Up-skill’ programme and the current Sandvik sponsored community day care project in the Boshoek area will benefit much sooner. Preliminary work at the site is already underway and the contractors in place for the development process have been using the Sandvik DD210L drill rig. “Sandvik would like to acknowledge the early commitment shown by Royal Bafokeng Platinum which we know will reap rewards for all stakeholders, including the local communities,” the company said. “Both parties believe that this is the beginning of a valuable partnership and not just the supply of mining equipment.”

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COMPANY REPORT

SANDVIK MINING AND CONSTRUCTION

SERVICE PORTFOLIO

We do this in a collaborative approach to ensure knowledge transfer, sustainability and ownership, whilst focusing on the activities that will reduce or eliminate our customers’ operational bottlenecks,” adds Mr Allan. Critics of the industry have stated that miners in South Africa have often had to put up with ineffective equipment so this new service portfolio from Sandvik will be welcomed as it comes with safety as a foremost concern. The company says: “By standardizing the individual elements within the service portfolio, the customer is assured of a consistent delivery of services, regardless of their location. It also enables us to ensure that the appropriate skills are available for each job.” Another service provided by Sandvik to all its customers in South Africa is the e-Business initiative. Following the initial rollout in late 2011, the e-business initiative has received fantastic feedback and has encouraged Sandvik to look at implementing the initiative right across the continent. So what is the e-Business initiative? “e-Business is all the information, interaction and transactions that are conducted over the internet between Sandvik and our customers,” says Benedict Chaila, Sandvik Mining e-Business manager, Africa. “e-Business is a global Sandvik strategy already well-established in other parts of the world. It aims to enhance the overall value of our partnerships with customers through standardisation of commercial processes and the increased efficiencies gained by doing business together electronically.

In September last year, Sandvik were present at MINExpo International, another trade exhibition which sees mining companies from across the world meet and share ideas. At the event, Sandvik Mining introduced a new, comprehensive suite of mining service products designed to meet the needs of any customer, on any site, in any location. The service portfolio will look to help customers improve the safety situations surrounding their operations, improve competence and knowledge, and increase overall productivity, through all stages of the equipment’s lifecycle. “We believe that it is of great value to our customers to be able to know the exact range of services that are available to them from each Sandvik location around the world. As we continue to develop more services that take full advantage of the available technology, not only on the equipment itself, but also within the mining environment, we are moving closer to providing real-time information to our customers. Enabling them to take decisions not only on the condition of their equipment, but also on the performance of their operations”, says Dan Allan, President Customer Services at Sandvik Mining. “By combining Sandvik’s expert knowledge of mining application with detailed machine data and an in-depth understanding of our customers’ operations through continuous collaboration, we are able to deliver ‘decision level’ reports that will, in combination with our advisory services, improve our customers’ bottom line.

“By combining Sandvik’s expert knowledge of mining application with detailed machine data and an in-depth understanding of our customers’ operations through continuous collaboration, we are able to deliver ‘decision level’ reports that will, in combination with our advisory services, improve our customers’ bottom line.”

Bucket wheel excavator

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SANDVIK

SEW Eurodrive partners with Sandvik for shorter delivery times and more flexibility SEW Eurodrive is in proud partnership with Sandvik to supply industrial gear power packs for various applications within the mining industry. The company supplies Sandvik with industrial gear power packs which are mostly used on travel drives and stacker reclaimers. The X Series, which is locally assembled and stocked are the preferred units used on these power packs. The power pack includes the motor, coupling and gearbox fitted to a baseplate for easy installation.

Geared Motors \ Drive Electronics \ Drive Automation \ Industrial Gears \ Services

We drive the mining industry

Nearly any mounting position or shaft arrangement can be implemented on the driven machine. The X Series’ invertable housing makes it very flexible and suitable for many applications. The X series provides a reliable and cost efficient product with better thermal rating which leads to reduced maintenance requirements. The X series offers shorter delivery times and higher flexibility at a lower cost, with spare parts being readily available. The units are well stocked and assembled locally at the SEW Eurodrive Nelspruit facility.

SEW-EURODRIVE, a proud business partner of SANDVIK, offers innovative drive solutions for all applications in the mining industries. All SEW-EURODRIVE products and systems make the best use of the space available around the machine and ensure great flexibility and reliability. Minimum maintenance and simple operation ensure that you will operate machines and equipment efficiently from the very beginning. Thanks to the modular design and countless combination options, all drive engineering components can be replaced quickly, if the need arises. From gravel mining to the excavation of gold, platinum, coal and diamonds – we put the drive into all facets of the mining industry.

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SEW-EURODRIVE – Driving the world.

Tel: +27 11 248-7000 Web: www.sew.co.za


COMPANY REPORT “The primary objective is to understand how our customers want to do business with us, so that we can adapt our applications and services accordingly. Our e-Business tools give customers a high level of control and visibility with their procurement processes, while enabling genuine cost savings.” The system works through two internet based platforms, @YourService and Direct Connect. “@YourService is effectively a one-stop-shop for mining and construction tools, spare parts and consumables. Its value-add goes both ways — customers’ transactions are fast, accurate and traceable, while from our side, our technical teams have more time to go out and interact more frequently with customers in person, to support their operations,” says Mr Chaila. Direct Connect is a tool for large scale purchases of a B2B nature. Sandvik’s ERP system can be connected with customers’ business systems. This means Sandvik

SANDVIK MINING AND CONSTRUCTION customers can now place orders directly from their own ordering systems. A powerful solution for automated and high volume ordering processes, Direct Connect is aimed at customers who have high transaction volumes. “This solution facilitates the exchange of transaction documents such as orders, order status, invoices and advanced shipping notices over the internet between Sandvik and our customers,” says Mr Chaila. With innovative services like these and a list of the world’s best products (not only for mining), it is easy to see why major international companies are looking to Sandvik to take on important contracts. The future will undoubtedly see growth for Sandvik in South Africa and with the power of the global brand constantly flexing its muscles; the tag of ‘industry leader’ will be one which will suit the company for many years to come.

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“This solution facilitates the exchange of transaction documents such as orders, order status, invoices and advanced shipping notices over the internet between Sandvik and our customers.”

Sandvik automated dump truck

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100C + 64M + 0Y+60K


www.sandvik.com

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