Joy Global: Leaving a Footprint in South America's Mining Sector
Joy Global offers high level support to clients in Peru and Colombia through a qualified staff of more than 20 employees. This personnel is properly trained in mining equipment applications, assembly, LCM maintenance and MARC repair contracts, operational and mechanical/electrical audits and training, overhaul services, equipment diagnostics, repair, troubleshooting and general technical support, among other services. “Major mining can only be possible when moving thousands of tons per day, a task which can only be performed by heavy machinery,” stated CEO Cesar Cruz-Saco.
In recent years, Peru has experienced constant growth, and the mining sector is no exception; after years of successful surface mining, producing coal in export-level quantities, underground mining is now about to be fully developed, an endeavor demanding specialized vehicles and equipment able to convey a heavier load and higher operational speed.
Joy Global Peru is now offering a new truck model able to carry 400 tons, loaded and unloaded with electric shovels able to convey 135 tons per cycle in 30 seconds. These are some of the P&H brand products available through Joy Global’s manufacturing, marketing and direct sales efforts. Also available is new, diesel/electric hybrid equipment; low-cost fuel and lower carbon-dioxide emissions are not the only advantage offered by this new machinery, but these also become reliable resources when mining at locations where taking electric power supply (or a power plant) becomes difficult and expensive. “We constantly strive to offer solutions able to lower costs for our clients and increasing their productivity,” summarized Cruz-Saco about efficiency resulting from new products in the company’s catalogue.
Closing the Gap from the End Client
Joy Global’s leverage is a result of being an equipment manufacturer, which allows a distributor-less scheme by dealing directly with end clients. Every single problem with their units worldwide is logged in a database available to their technicians all over the globe. If a certain troubleshooting symptom is present in a vehicle manufactured and sold in Peru, and that same symptom (and solution) is registered as previously happening in, say, the Australian branch, the fix will be faster. The client support and service department’s goal is to reduce inactivity due to equipment failure or repair time. “It’s a top priority for our service staff to receive world-class training, with asserted knowledge about possible problems caused by regular use of our equipment,” Cruz-Saco said.
Growth from Regional Development
During 2008 -Cruz’s first year as the affiliate’s CEO-, Joy Global reported $34 million in revenue; at the end of 2014 this figure sums up to $195 million. This figure’s only way seems to be up, since there is a projected growth through the year 2020 based on copper extraction. The world’s largest copper supplier is Peru’s neighbor Chile, whose production is five times Peru’s; but new agreements and investments foresee a growth which in five years will take this figure just below or at the same level as Chilean copper production. “Peru’s mining potential is not fully developed yet; in recent years the country has experienced constant growth and our company has made the most out of this fact,” said Cruz.
La Joya, in the Heart of Peru’s Mining Country
Construction for Joy Global Peru’s new service and supplies megacenter in the La Joya district in the Arequipa province is to be concluded on March 2015, opening during the following month. A $40 million investment, this multi-function center will become a storage facility for replacement parts, a repair shop and equipment monitoring headquarters able to service vehicles and machinery also for industries other than mining. “La Joya was strategically selected due to its location in the Pan-American Highway, and its vicinity to merchant seaports and mining centers in south Peru,” said the executive.
Improvements from Technology Upgrades
Joy Global’s research and development department produced PreVail remote health monitoring system, able to offer real-time details about equipment use, potential troubleshooting, productivity and performance as well as operator’s practices and tendencies, among other data. This system can be accessed from remote computers and a mobile phone app. “With PreVail, there’s no need to use valuable time for vehicle inspections, the system offers a complete array of data figures to evaluate machinery’s efficiency and proper performance,” Cruz said.
Joy Global provides opportunities for local supplies that meet requirements of both Joy Global and the end client.
The company has established a partnership with FUCSA Cast Chilca, SA to allow this smelter company to commercialize Joy Global’s components in Peru and the rest of the region.
"We seek suppliers in the countries where we operate to assist the development of this industry, locally," said Cruz-Saco.
The nearly 40 years of Joy Global collaborating with Peru's mining sector have allowed them to participate in developments and improvements within the mining practice.
Joy Global’s hybrid equipment (Diesel & Electric) provides savings in fuel, lubricants and tires.
"Reducing this consumption means long-life components, which makes us environmentally friendly," said Cruz-Saco.
But beyond the rules of its industrial operation, Joy Global shares a concern for the communities where it operates. The company cooperates with nearby schools by offering specialized courses. Joy Global Peru also facilitates the introduction of local suppliers in new projects, for example, in the construction of La Joya Service Center in Peru, Joy Global will hire local providers for industrial inputs (lubricants, etc.) and sewer services, telecommunications, transportation and food.
The Future of Joy Global in South America
The development of mining in Peru, and consequently of Joy Global in South America, depends on the proper distribution of 'canon', an income tax for industrial activities. It is important to acknowledge that mining is now governed by standards that contribute to reduced environmental impact in the communities where it is exercised, and through the collection of taxes for this activity, the country is developing its infrastructure.
The future of mining in Peru is promising, and Joy Global business activities would benefit from this growth.
"We are not just suppliers of mining, we are partners of the miners," said the General Manager.
Net zero benefits the mining industry and the environment
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The Oren Marketplace
Environmental management, social license to operate, safety, renewable energy to lower emissions and operational efficiency for mining can be supported by a range of digital solutions enabling dynamic operations. To address these issues, Shell and IBM joined forces to create the Oren Marketplace – the first B2B solutions platform for the mining sector.
With the adoption of many of the digital solutions offered through Oren, mining companies can adapt in real-time to risks or adjust plans ahead of a problem occurring. The goal is a shift towards proactive management as the optimal outcome for all stakeholders – community, shareholders, and employees.
Emitwise was founded with the goal of helping industries across all sectors reduce their carbon footprint. Similarly, Shell aims to become a net-zero emissions energy business by 2050, or sooner, in step with society and its customers. And Oren is focused on offering innovative products and services that can help mining companies track and reduce their emissions.
“Oren is the starting point for how we help our mining customers to de-carbonise,” explains Carol Chen, Global Lubricants Marketing, Vice President, Shell. “It’s our ambition to work with sectors like mining to help them find their own pathway to net-zero emissions through collaboration. The Oren marketplace offers a great opportunity for collaboration between the miners and technology companies that are joining this digital marketplace.”
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Emitwise is one of many solutions providers on the Oren platform seeking to address the pain points and environmental concerns of heavy industries like mining. To discover a range of solutions that can further support your operation’s digital transformation and commitment to sustainability, visit the