Sandvik, an engineering firm from Sweden, announces a major deal worth more than €33 million (SEK 370 mn). The order comes from Rana Gruber, which is on course to decarbonise its iron ore mine operations in Storforshei in northern Norway.
Sandvik is expected to deliver zero-emission trucks, loaders, drills, on-site service support and batteries. Rana Gruber already booked 15% in December last year, with the remaining 85% due this quarter. Deliveries are also to begin this spring and continue through 2024.
Once delivered, it will be the second-largest battery-electric mining fleet for Sandvik. It will include six Sandvik TH550B trucks, five Sandvik LH518B loaders, four Sandvik DL422iE longhole drills, two Sandvik DS412iE mechanical bolters and two Sandvik DD422iE jumbos – 19 vehicles in total.
The BEV fleet will support Rana Gruber’s goal to operate the world’s first carbon-free iron ore mine by the end of 2025, reads the statement. Rana Gruber produces approximately 1.8 million metric tons of iron ore concentrates annually from its five deposits in Norway’s Dunderland Valley. According to company data, its resource base includes more than 440 million metric tons of iron ore.
Sandvik has supplied Rana Gruber for more than 25 years; however, not with battery-electric equipment. Trans4Mine, Sandvik’s in-house consultancy, conducted studies and simulations to advise Rana Gruber on BEV fleet requirements, charging station locations and other mining cycle optimisations, resulting in a letter of intent in November 2022.
“This is a new world for us, but Sandvik has extensive battery-electrification expertise,” said Gunnar Moe, Chief Executive Officer of Rana Gruber. He added they were “very pleased” with the cooperation and Sandvik’s commitment to supporting the transition “as a true partner wanting to take the journey with us”. Moe said this was another major step forward to implementing a battery-electric fleet, and he expects it to improve the work environment and reduce our operational costs.
As usual, electric mining equipment not only reduces CO2 emissions but also exhaust emissions and reduces heat and noise pollution underground.
Sandvik has been offering electric mining vehicles for at least two years and previously received orders from Canadian mining companies. The equipment is compact. What is more, Sandvik has offered battery-related services from the get-go. In 2021, the company acquired Akkurate, a solution provider for holistic battery management, including a remote diagnostics and forecasting platform for batteries.
“I am very pleased to see that there is such strong customer interest in our battery-electric offering, and particularly that we are seeing an increase in larger and repeat orders, which is a testament to Sandvik’s high-performing equipment and service,” said Stefan Widing, CEO and President of Sandvik when commenting on today’s order from Rana Gruber. He added that their battery-electric solutions were a “strategic focus” for Sandvik and an “essential driver in shaping the sustainable mine of the future”.