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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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

Vale
Nickel
Manitoba
battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

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.

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