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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Apr 19, 2021

AngloGold Ashanti establishes BG Umoja JV in Tanzania

AngloGoldAshanti
Geita
Gold
Sustainability
Daniel Brightmore
3 min
AngloGold Ashanti, Geita, Tanzania, BG Umoja
AngloGold Ashanti’s BG Umoja JV has been awarded a $186mn two-year contract for the Nyankanga and Geita Hill underground mining projects in Tanzania...

AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.

Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited. 

The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.

AngloGold Ashanti

“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa. 

“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”

AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.

Scope 3 Emissions

In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.

To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.

Diversity & Inclusion

The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.

AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.

Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.

Geita Gold Mine

Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.

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