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, recently won an order worth over $10 million from Dannemora Minerals to deliver a complete mine hoist to the newly reopened Dannemora iron ore mine in east central Sweden. The new hoist will transport the ore up from less than 600 meters below the surface, then on a conveyor belt into the sorting plant. The hoist’s capacity is around 500 metric tons per hour and it will be in operation 24 hours a day, 7 days a week.
Prior to closing in 1992, the mine had been in operation since the 15th century. Dannemora Minerals reopened the mine in 2009. The new mine hoist is one of the key components for Dannemora’s investment to resume mine operations. ABB will be responsible for supply, installation and commissioning of the hoist.
“ABB is the most experienced provider of mine hoist to the mining industry. There is a long delivery time on this type of equipment and we have selected ABB for their expertise and experience to deliver, install and commission the hoist within the tight deadlines set for this part of the investment project,” says Staffan Bennerdt, President and CEO of Dannemora Mineral.
ABB’s Center of Excellence Underground Mining in Vasteras has delivered more than 600 mine hoists to about 30 countries over the years. “We are proud to supply, install and commission the new mine hoist to Dannemora Mine. This will help meet Dannemora Minerals’ demands for an overall optimized plant so that Dannemora can resume operation in the ancient iron ore mine as planned, ” says Andreas Malmport, head of ABB’s mining business in Sweden.
The plant is projected to have an annual capacity of 3.3 million metric tons/year of crude iron ore from the mine. This capacity will exceed the initial production capacity of 2.5 million metric tons/year of crude ore that was identified in the feasibility study done before the mine reopened.
The mine hoist is scheduled to be operational by spring 2013.
