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.
Metso has won a significant deal to support the conversion of the largest open-pit copper mine in the world to a large-scale underground mining operation. The Chuquicamata mine, located 1,650 kilometres north of Santiago, Chile, is owned and operated by Chile’s National Copper Corporation, Codelco.
Metso’s scope in the contract includes the engineering, supply of equipment and materials, and site assistance for 12 underground crusher stations combined with a conveyor package. The delivery contains 11 new units of Metso’s largest C200 jaw crushers, 24 push feeders and 20 conveyors. Overall, the contract constitutes one of the most sizeable crusher orders ever for Metso’s mining business.
The project is scheduled to continue until 2020 and the order was booked in Metso’s second-quarter 2016 orders received.
Total cost of ownership and energy efficiency in focus
Metso offered an integrated solution that carried through from engineering, crusher stations, and material handling to electrification, automation, and site assistance. In addition, the energy savings from the company’s Energy Saving Idler (ESI) conveyor technology gave the Metso offering a competitive edge.
Codelco’s decision to work with Metso was also backed by Metso’s proven installed base of equipment, engineering and project management capability already present in other similar applications in the region, demonstrating Metso’s ability to deliver on time and on budget with production guaranteed. The Metso team was able to offer Codelco the best deal in terms of total cost of ownership and energy efficiency of material and handling.
“We are very proud of this order. It clearly demonstrates that we at Metso are more committed than ever to promoting excellence in our operations to help our customers create profitable and sustainable solutions. It is in this spirit that we fought and won this sizable and strategic deal with Codelco,” says João Ney Colagrossi, President, Minerals Capital business area, Metso.
About Codelco
Codelco is a Chilean state-owned copper giant operating seven large mining divisions that control 8% of the proven copper reserves in the world. The 2015 annual output of 1.89 millions of tons is 10% of the global copper production and makes the company the number one miner for the red metal. Codelco employs over 18,000 persons and has a huge importance for the national economy in Chile. To ensure the production for the coming decades, Codelco is developing a large portfolio of mine investments, spearheaded by the on-going 4-billion-dollar investment to the Chuquicamata underground mine.
About Metso
Metso is a world leading industrial company serving the mining, aggregates, recycling, oil, gas, pulp, paper and process industries. We help our customers improve their operational efficiency, reduce risks and increase profitability by using our unique knowledge, experienced people and innovative solutions to build new, sustainable ways of growing together.
Our products range from mining and aggregates processing equipment and systems to industrial valves and controls. Our customers are supported by a broad scope of services and a global network of over 80 service centers and about 6,400 services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the NASDAQ OMX Helsinki, Finland, and had net sales of about EUR 2.9 billion in 2015. Metso employs over 12,000 persons in more than 50 countries. Expect results.
www.metso.com, www.twitter.com/metsogroup
