Sandvik and Glencore Queensland Metals sign £136m deal
Sandvik, the Swedish multinational engineering company, has signed an agreement worth £136.1 million with Glencore Queensland Metals to supply underground and mobile mining equipment at Glencore’s Queensland and New South Wales metalliferous mines.
According to a report by Australian Mining, the deal will see Sandvik provide drills, loaders and trucks to Glencore over a six-year period. After inking the deal in June this year, Glencore placed an initial equipment order totalling £25.7 million, with Sandvik supplying the first piece of equipment under the deal.
Tim Redmond, Sandvik Mining and Rock Technology global account manager for Glencore, says that this deal was inked after more than a year of negotiations with the mining company.
“We spent nearly a year working closely with the Glencore team to identify exactly what was needed for the long-term success of their assets,” Redmond says, adding that Glencore issued a heavy mining equipment tender in 2018, before it requested an additional response to its tender in early 2019, asking Sandvik to provide a more 'innovative and collaborative solution'.
“Our solutions enabled us to optimise the upfront capital costs and provide a competitive supply of aftermarket services moving forward.”
A key advantage of the partnership is that Glencore’s fleet will now be based on one technology platform, ensuring that the company will be able to promote additional automation, mine intelligence and vehicle interaction controls in the future.
Simon Pope, Glencore Queensland Metals general manager – mining, points out that the agreement was significant for the company as it would see all heavy mobile mining equipment at the company’s Queensland sites supplied by one original equipment manufacturer (OEM).
“This partnership with Sandvik will help us improve the way we operate and maintain mobile equipment in our underground mines by providing us with a real reduction in the total cost to operate our primary fleet,” Pope said.
“We look forward to working with Sandvik to share operational and maintenance insights through new and emerging technologies and unlocking further improvements in safety for our people and the productivity of our mines.
“Sandvik machines have played a role in our operations for a number of years and have a proven track record for productivity and reliability,” he explains.
Redmond highlights that a key factor of the Glencore deal is that it creates a model that can now potentially be replicated in other markets and with other commodities.
“Rather than each party simply trying to get the best price, this agreement adds new value to the relationship and creates benefits for everyone,” he concludes.
Sandvik recently signed an agreement to acquire US based CGTech, a leader in software for numerical control (NC/CNC) simulation, verification and optimisation.
The product offering includes VERICUT, a machining simulation and optimization software which is CAM, machine tool manufacturer and cutting tool neutral and works stand alone or in conjunction with all major CAM suppliers. The company will be reported in Sandvik Coromant, a division within Sandvik Machining Solutions.
Mining Profile: Mike Henry, CEO, BHP
Mike Henry has over 30 years’ experience in the resources industry, working across the globe in Australia, Asia, North America, and Europe; he joined BHP in 2003. A member of the executive leadership team since 2011, Henry has held roles spanning operational, commercial, and technical.
Mike Henry graduated from the University of British Colombia with a Bachelor of Science degree in Chemistry. He began his career in the resources industry working for Japanese tech giant Mitsubishi. Henry’s first contact with BHP came in Australia in 1999 when he helped set up the company’s coal joint venture, the BHP Mitsubishi Alliance (BMA). By 2001, Henry had risen to Vice President of Business Development for the BMA before joining BHP’s energy coal business full time.
During his time at BHP prior roles have included President HSE, Marketing & Technology 2013-14 and President of the company’s coal business from 2015-16. Prior to succeeding Andrew McKenzie as CEO in January 2020, Henry served as President for Operations, Minerals Australia focusing on iron ore, copper, coal and nickel. Henry led 40,000 people across six assets, with revenues of $29bn, EBITDA of $16bn and a capital spend of $3bn
Under Henry’s leadership, BHP’s Minerals Australia business reduced the frequency of high potential injuries by 60% and, for the first time, became the world’s lowest-cost major iron ore producer.
Mike Henry’s exposure to the company’s global marketing efforts between 2010 and 2015 saw him earmarked for the top job at BHP, developing crucial relationships with the mining giant’s customers in China and Japan.
“His operational experience, his commercial experience, his strategic skill, his global experience … that makes him a great candidate to be the next CEO of BHP,” said outgoing CEO Andrew MacKenzie of Henry’s appointment to the role last year.
Inclusion & Diversity
Growing up in a biracial family with a mother of Japanese heritage who worked as a nurse in emergency services, Henry witnessed and experienced both ends of the inclusion spectrum.
“[Inclusion & Diversity] is quite personal for me.. I am absolutely convinced that having an inclusive culture and diverse workforce is mission critical for BHP,” he says. “Inclusive, diverse teams perform better – because they promote safety, productivity and wellbeing. Getting this right will be a serious competitive advantage for BHP. It will help us secure and motivate the best people, we’ll be more creative, and we’ll make better decisions.”
Henry spent the first half of his career in an environment where he was not from the mainstream, but where people went the extra mile to ensure he felt wholly included. “Without exception, it’s been in high-inclusion environments that I’ve thrived,” he recalls. “Where I’ve felt most fulfilled as a person. When I’ve been most committed and motivated, and where I’ve made my most significant contribution. On the rare occasion when I’ve been in an environment I experienced as less inclusive, I haven’t been at my best – a lost opportunity for both me and those around me. I have two adult daughters and my aspiration for them is that they are able to realise their dreams and potential, unconstrained by gender, or race. I need to demonstrate the values and leadership that reflect where I’ve come from and the world that I hope for and believe is possible.”
Having lead teams globally, across cultures and disciplines, Henry’s experience has been that the teams that have unlocked exceptional outcomes have been those that are highly inclusive. “There’s been an excitement and enthusiasm in those teams that sees people challenge themselves, reach higher, and be more creative,” he notes.
“Those teams are the ones that everyone wants to be part of, and the ones that truly innovate and push the organisation to new frontiers. Being part of those teams and leading them has been one of the most fulfilling aspects of my career. I am passionate about seeing people stretch themselves, learn that they’re capable of more than they perhaps thought and experience the joy of realising great outcomes.”
What does the future hold? "BHP is a company that is steeped in history,” said Henry on his appointment last year. “The one constant for the whole of BHP’s 153-year history had been great people. If you’ve got the right people you can do amazing things."