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.
Earth-moving equipment maker Caterpillar (NYSE:CAT) will work with Canadian Westport Innovations (TSX:WPT) to develop natural gas-powered engines for mining trucks, locomotives and other heavy equipment that typically uses diesel.
Caterpillar and Westport, a maker of natural gas-powered engines for vehicles, will also develop natural gas technology for Caterpillar’s off-road engines used in electric power, industrial, machine, marine and petroleum applications, said the Vancouver-based company in a statement.
The idea is to take advantage of natural gas low prices and, potentially, convert existing equipment using diesel engines to the cheaper source.
“The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance,” Westport chief executive David Demers said.
Commercial production is expected to begin in about five years.
Watch the announcement below:
2 Comments
Rene_cat
wishing you guys that this will be a successful endeavor!
Tim Gaynor
As a long term WPRT and CAT investor I like seeing the news advertised, again. I wonder what has changed in the details of their agreement. The two companies, have been working together over one year now. Is Catepillar buying WPRT in it’s entirety? How will this effect Volvo and CMI….as well as other diesel engine manufactures?
Where’s the beef!!!
If your going to report the news as a mining interest, please give us ll the rock solid details.