Dec 21, 2020

Mining and construction rental market to top £205.4 billion

rental
Equipment
forecasts
Dominic Ellis
3 min
Need for modern, compact and rental equipment are top trends driving global equipment industry, Frost & Sullivan report finds
Need for modern, compact and rental equipment are top trends driving global equipment industry, Frost & Sullivan report finds...

A recently released report by Frost & Sullivan finds that growth in infrastructure development and urbanisation projects, alternate powertrains, and the need for modern, compact and rental equipment are the top trends driving the global construction and mining equipment industry.

According to the Digitisation and New Business Models Powering the Global Construction and Mining Equipment Market to 2030, telematics and autonomous retrofit solution providers are expected to partner with rental companies to upgrade their fleet with new solutions and technologies, and promote them in key markets, such as the US, Europe, China and India.

The construction and mining rental equipment market is expected to reach £205.4 billion by 2030, driven by the need to manage operational costs and increase utilisation rates, the report adds.

Global construction spending is estimated to reach £13.17 trillion by the end of the forecast period with the rise in civil infrastructure development projects and real estate/buildings. However, the COVID-19 pandemic is expected to cause an 18 percent decline in the unit sales of heavy equipment in 2020 due to the decline in manufacturing, operations, and distribution centres across the globe. 

Despite these obstructions, the construction and mining equipment unit shipment is likely to register growth at a compound annual growth rate of 0.84 percent for the next 10 years.

The construction equipment market is ripe with opportunities for original equipment manufacturers (OEMs), suppliers, and digital solution providers to leverage from the current evolution in technologies in both mature and nascent markets,” says Krishna Achuthan, Commercial Mobility Industry Analyst at Frost & Sullivan. 

“Growth will be driven by the Asia-Pacific market and the earthmoving segment in the short term. The transition toward rental models, electrification, and automation will happen in the medium to long terms.”

“Digital services that enhance convenience and operational costs are expected to spur the growth of telematics solutions in construction and mining equipment. Additionally, with the rise in mega cities and smart cities, the operational constraints of urban construction will lead to an increase in demand for compact equipment. This will further push the demand for electric construction equipment due to stringent urban emission regulations (EV zones) and reduced operational costs,” Achuthan adds.

He also points out that processes in the construction and mining sector will be more modular, individualised, and connected to the Internet of Things (IoT), which will result in enhanced equipment utilisation and performance tracking. Prognostics using unabridged data collection, remote monitoring, and operation present immense growth prospects for stakeholders in the construction and mining equipment industry, he asserts.

Industry players should consider the following opportunities:

  • Partner with regional digital service providers and telematics companies to offer lucrative subscription models, improving network channels.
  • The rapid growth of rental and sharing platforms will allow OEMs and technology providers to form partnerships and leverage marketing channels.
  • Autonomous solution providers, OEMs, rental companies, and mining corporations are expected to pilot test and develop autonomous construction and mining equipment.
  • The substantial installed base of equipment with telematics, electric drives and other digital technologies will support the dominance of OEM dealer channels for equipment maintenance and service.

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May 11, 2021

Gerald Group resolves iron ore dispute with Sierra Leone

Gerald Group
SL Mining
Iron ore
Marampa iron ore mine
2 min
Gerald Group, the US commodity broker, set to restart iron ore shipments from Marampa mine with subsidiary SL Mining

Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.

SL Mining

Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Sierra Leone's government responded by cancelling its mining licence. 

As part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement.

Iron Ore

Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.

Both sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added.

Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone."

SL Mining

Sierra Leone

Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country.

"Whatever the pain we may have borne or dreaded throughout these two years ... this outcome justifies our action," he said.

Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years.

Gerald Group

Back in 2019, Dean spoke with Mining about the development of Marampa and commented: "SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is set to deliver six million tonnes of high-grade iron ore during its operational life. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China.

"Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.”

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