Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
ABB, the leading power and automation technology group, has won a $32 million order to revamp four mine hoists for LKAB’s new main haulage level in its Kiruna iron ore mine in north Sweden.The order includes mechanical equipment and the upgrade of electrical control and drives for four mine hoists, and related engineering services. The order was booked in the first quarter of 2012.
The revamped hoists will operate in the mine’s new main haulage level, at 1,365 meters deep, to increase annual crude iron ore production by more than 17 percent, from 30 million metric tons to 35 million metric tons. The processed ore is used in a variety of steel products.
The new haulage level will also help to extend the mine’s operations at the site through 2030.
“ABB won this order because of our deep industry knowledge, dependable mine hoist solutions, and ongoing working relationship with LKAB,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “Our cutting-edge technology maximizes efficiency and safety of the mine hoist system, ensuring successful operation over the lifetime of the mine.”
ABB’s scope of supply includes the pulley; hoist shaft; bearing and bearing houses; hydraulic brake system, skips; dumping curves, measuring and ore loading flasks for each of the four hoists, and modernization of the existing control and drive systems. ABB will also provide engineering, installation supervision, commissioning as well as documentation and customer training.
Hoists are among the most significant pieces of equipment in an underground mine, and must operate at the highest level of reliability and safety, as any potential failure can lead to catastrophic results.
The revamped hoists are scheduled to be in operation starting in 2014, with the fourth hoist scheduled for 2017.
LKAB is a world leading producer of processed iron ore products for steelmaking, and a growing supplier of mineral products for other industrial sectors.
