India’s Larsen & Toubro lands largest mining equipment order
The Construction and Mining Equipment business of Larsen & Toubro (L&T) has secured one of the biggest orders in its history to supply 46 units of Komatsu Mining Equipment to Tata Steel.
In a statement, the company, one of India’s leading engineering, procurement and construction projects, manufacturing, defence and services conglomerates, states that the order consists of 41 units of Komatsu HD785-7, a 100-ton dump truck; three units of Komatsu WA900-3E0, a nine-cum wheel loader); and two units of Komatsu D275A-5R, a 410HP crawler dozer.
It adds that the scope of work for the contract includes the supply of equipment and a full maintenance contract for up to 60,000 hours of equipment operation. It did not specify the contracts' values.
“Komatsu’s superior products and L&T’s seamless support over the years, paved the way for securing this prestigious order and we look forward to partnering India’s largest steel producer - Tata Steel, in their growth journey,” says S N Subrahmanyan, CEO and managing director of Larsen & Toubro, commenting on the order.
26 of the 46 units will be deployed at Tata Steel’s iron ore mines in Joda, Noamundi and Khondbond in Odisha, while 20 units of Komatsu’s 100-ton dump trucks will be deployed at Tata Steel’s West Bokaro coal mines in Jharkhand.
Arvind K Garg, executive vice President and head - Construction & Mining Machinery Business, L&T, adds that the company is “delighted to receive this prestigious order from our esteemed client, Tata Steel for their iron ore and coal mines”.
Tata Steel operates captive coal mines at Jharia & West Bokaro, in the state of Jharkhand, located within 200km from Jamshedpur, while its iron ore units are located in Noamundi, Joda, Khondbond and Katamati in the states of Jharkhand and Odisha.
Shares of Larsen & Toubro moved higher by 4 percent to Rs 1,126 on the Bombay Stock Exchange following the company’s announcement about the Tata Steel order. Furthermore, the conglomerate’s management expects domestic ordering activity to gain traction in the second half (October-March) of the current fiscal year 2020-2021, given the Indian government’s continuous focus on infrastructure and an uptick in economic indicators and tax revenues.
India’s Oil and Steel Minister, Dharmendra Pradhan, recently stated at the Virtual National Mining Summit organised by the PHD Chamber of Commerce and Industry, that reforms in the mining sector have helped to distribute revenue equally to respective states. He asserts that there is a need to exploit, access, and monetise natural resources, and at the same time, leverage technology.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.