Sandvik & Shandong Energy Machinery Co. Form Joint Venture
Swedish engineering group Sandvik’s mining and construction division will team up with China’s Shandong Energy Machinery Co. in a 50/50 joint venture to produce coal mining equipment. The joint venture is expected to be established within the next six months and operational by late 2011.
Shandong Energy Machinery Co. is a subsidiary of the Xinwen Mining Group. The company’s primary activities have been in developing underground coal mining machinery.
Sandvik will provide technological and product know-how in the venture, while Shandong Energy Machinery will focus on local sourcing skills and customer application knowledge.
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“This joint venture agreement is in line with Sandvik’s long-term strategy of continued profitable growth and our aim to become a leading equipment supplier to the Chinese coal mining market. It gives us a great opportunity to further develop our well proven underground coal mining equipment in close cooperation with our Chinese customers, as well as expanding our local set up to provide the best service and support to our customers”, says Sandvik Mining and Construction President Lars Josefsson.
The primary products being produced are premium Sandvik roadheaders to be sold under the Sandvik brand. The ultimate goal of the joint venture is to become the leading supplier of roadheaders to the growing Chinese coal mining market.
Coal India Secures First-Of-Its-Kind Digital Deal
Coal India Limited (CIL) has appointed Accenture Solutions to digitally transform seven of its open-cast mines as the company strives to improve performance and increase coal production. Accenture is due to lay down digitalisation groundwork until March 2022.
The deal aims to increase coal production by 100 million tonnes (MT) by the end of FY’23. Once the minimum quantity has been surpassed, an agreed sum will be paid to the consultant for every additional sum of coal produced. This success fee will only be paid on the procurement of the minimum assured quantity.
The move will see heavy earth moving machinery (HEMM) fitted with digital sensors to monitor performance efficiency at all levels. Additionally, modern data analytic techniques aim to increase mine productivity and project monitoring through functional system management and effective observation.
An Exciting Venture For Global Mining
CIL, which aims to provide energy security in an environmentally and socially sustainable manner, hopes the move will help transform the entire business of mining operations and ensure higher volumes of coal are acquired at a lower cost.
“This is a first of its kind initiative by the company utilising digitalisation to ramp up coal output,” CIL has said.
A Digital Step Towards Enhanced Performance
Digitalisation is expected to take place at open-cast mines in Kusmunda, Gevra, Dipka of Southern Eastern Coalfields (SECL), Migahi, Jayant, Dudhichua, and Khadia of Northern Coalfields (NCL). Nearly 32% (188 MT) of CIL’s 596 MT output in FY’21 was accounted for by the seven selected mines. However, this new deal is set to see a large increase following the subsequent digital changes due to be made.
“Learning from the outcome and success of this model, we may replicate it in our other large mines,” says CIL, optimistic about the future following the modernisation of their mining.
It is expected that the move will help address roadblocks and guarantee corrective measures are put into place, ensuring the company is able to move forward with its aim of increasing output whilst remaining sustainable and eco-friendly.