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Cover story - Mining Equipment www.EquipmentIndia.com
Looking for a
Turnaround
Caught in the web of policy paralysis and undesirable instances in the past
many years, the mining sector in India is looking for a turnaround with policy
support from the government and progressive steps taken by the mining
majors. However, there is a long way to go for mining to be on fast track like
the infrastructure sector.
Photo courtesy: Tata Hitachi
46 october 2018
Cover story - Mining Equipment
M
ining in India had been participation in commercial coal due to global slowdown in copper and
in the news for all the mining. There are still hurdles to zinc mining. Pavethra Ponniah, Vice
wrong reasons in the overcome, in the form of President and Sector Head -
past many years, be it the environment-related uncertainties Corporate Sector Ratings, ICRA
scams, illegal mining, delay in policy and lack of adequate technology and explains, “Overall domestic coal
processes, restriction to private equipment for mining at the required production is expected to reach
participation in mining except captive pace and quality. 737 mt in FY2019 against 676 mt in
mining for steel, cement and power FY2018, growing by around 9 per
production. Things seem to be Market getting better cent YoY. With improved availability,
improving slowly, thanks to the In India, mining is largely domestic coal scarcity is expected to
government’s new policy initiatives focused on coal, iron ore, limestone alleviate towards the end of FY2019,
such as amendment in mining policy and bauxite. Recently the zinc and and therefore the high domestic coal
and of late, allowing private copper mining has also picked up production growth rate is unlikely to
sustain into FY2020. Between FY2021
and FY2022, domestic coal
production is expected to grow at a
moderate rate of 5-6 per cent
annually, in-line with the projected
growth in annual energy demand of
5 per cent during this period.”
Karnataka and Odisha are leading
in iron ore mining in the country.
Ponniah elaborates, “Aided by the
rising supplies from Odisha and
Karnataka, domestic iron ore
production is expected to increase
from 198.8 mt in FY2018 to around
232 mt in FY2020. However, given the
limited progress in auction of iron ore
mining leases, Odisha’s iron ore
production is expected to decline in
FY2021 following the closure of many
merchant mining leases after March
31, 2020. This could lead to a domestic
ore shortage for some time till
auctioned leases ramp up and fill up
the supply vacuum. Therefore, unless
the government extends the lease
validity for merchant miners whose
leases are expiring in March 31, 2020,
domestic iron ore production is
expected to decline to around 212 mt
in FY2021 against 232 mt in FY2020.”
According to Sandeep Singh,
Managing Director, Tata Hitachi
Construction Machinery Co, the
mining scenario in India is on a
recovery path after the recent
downturn. He adds, “Coal being the
major driver of this growth trajectory
is now showing signs of recovery after
Coal India announced aggressive
production targets. Various actions
taken by the Coal Ministry like
october 2018 47
Cover story - Mining Equipment www.EquipmentIndia.com
Mining Scenario in India
Coal: The domestic coal mining industry is dominated by the two central miners, Coal India Limited (CIL) and Singareni
Collieries Company Limited (SCCL), who cumulatively account for around 93 per cent of the total domestic coal production.
The share of production from captive miners has remained at less than 10 per cent.
CIL’s coal production growth slowed down to 2.4 per cent in FY2018, which coupled with bottlenecks in rake availability,
and a recovery in energy demand, led to a severe coal shortage for thermal power plants during the last fiscal. To replenish
depleted coal stocks at thermal power plants, CIL has been able to ramp up production at a healthy rate of 14.1 per cent
YoY in April-July of FY2019, which has led to cumulative coal inventory at power plants rising from a low of 12.2 mt as on
October 31, 2017 to around 20.6 mt as on July 31, 2018. Given the trends in FY2019 thus far, CIL is on track to
comfortably meet the FY2019 production target of 610 mt, provided transport infrastructure does not become a limiting
factor. Overall domestic coal production is expected to reach 737 mt in FY2019 against 676 mt in FY2018, growing by
around 9 per cent YoY. With improved availability, domestic coal scarcity is expected to alleviate towards the end of FY2019,
and therefore the high domestic coal production growth rate is unlikely to sustain into FY2020. Between FY2021 and
FY2022, domestic coal production is expected to grow at a moderate rate of 5-6 per cent annually, in-line with the projected
growth in annual energy demand of 5 per cent during this period.
Iron ore: In May 2014, following the Supreme Court’s judgment, 26 of the 56 iron ore mines in Odisha, which were
operating under the second or more deemed renewal clause, were closed. This led to a decline in iron ore production from
Odisha from 76.2 mt in FY2014 to 52 mt in FY2015, and India’s iron ore production declined from 152.4 mt in FY2014 to
129.3 mt in FY2015. However, with the enactment of the ‘The Mines And Minerals (Development And Regulation)
Amendment Act, 2015’ in March 2015, mining leases which had expired after their first renewal were automatically extended
till March 31, 2020 (for merchant miners), and till March 31, 2030 (for captive miners). This helped increase the iron ore
output from Odisha from 52 mt in FY2015 to around 101.5 mt in FY2018. Given the March 2020 deadline for lease validity
for many merchant miners, Odisha’s iron ore production is expected to increase to around 124 mt in FY2020. Moreover,
with the Supreme Court allowing an increase in mining cap in Karnataka from 30 mt to 35 mt, and with the auctioned iron
ore mines of JSW Steel beginning production from FY2019, Karnataka’s production is expected to increase from 29.1 mt in
FY2018 to around 38 mt in FY2020. Aided by the rising supplies from Odisha and Karnataka, domestic iron ore production
is expected to increase from 198.8 mt in FY2018 to around 232 mt in FY2020. However, given the limited progress in
auction of iron ore mining leases, Odisha’s iron ore production is expected to decline in FY2021 following the closure of
many merchant mining leases after March 31, 2020. This could lead to a domestic ore shortage for some time till auctioned
leases ramp up and fill up the supply vacuum. Therefore, unless the government extends the lease validity for merchant
miners whose leases are expiring in March 31, 2020, domestic iron ore production is expected to decline to around 212 mt
in FY2021 against 232 mt in FY2020.
Limestone mining: Indian cement production during FY2018 grew by 6.3 per cent to 298 million MT, was higher by
6.3 per cent, compared to 280 million MT in FY2017. In Q3 FY2018 and Q4 FY2018, production increased by 10.6 per
cent and 18.2 per cent, respectively, due to improvement in demand along with the base effect of demonetisation during the
above-mentioned period last year. For FY2019, cement demand growth is estimated at 6 per cent, led by pick-up in
affordable housing and infrastructure segments, mainly road and irrigation projects.
- Pavethra Ponniah
addition of new rail lines and wagons
in coal mining areas have ensured
smooth dispatches. Metallic minerals
like iron ore, after the revised
guidelines issued by the Supreme
Court, has registered increase in
production and dispatches. The recent
strategic buyouts by cement majors
like UltraTech Cement, Holcim etc in
the cement sector is itself an indicator
Photo courtesy: Tata Hitachi
of adding capacity with an intent to
address the increase in demand. The
growth in various sectors is expected
to accelerate in the years ahead.”
Dheeraj Panda, Head - Excavator
and Mining Business Unit, SANY
Heavy Industry India, indicating a
Privatisation has created a necessity for introducing the latest mining equipment.
positive outlook, says, “The Indian
48 october 2018
Cover story - Mining Equipment www.EquipmentIndia.com
India: Mining Facts
• Mining is one of the core sectors in India that drive growth in an (our)
economy. Not only does it contribute 2.5-3 per cent to GDP, it also acts as a
catalyst for the growth of other core industries like power, steel, cement,
which in turn, are critical for the overall development of the economy.
• More than 90 per cent of the mines are surface mines in India
• Major minerals in India are mined by organised sectors only
• Technology is still in the backstage with respect to the world standards
• Size of mines (mostly) is comparatively very small with respect to global
standards “Technology adoption
• Coal, iron ore, limestone and bauxite are the major mined rocks and
minerals is picking up with the
• Coal mining is dominated by state agencies such and CIL and SCCL, while private mining
private mining still constitutes a very low percentage for coal. companies in India.”
• A large percentage of mining in CIL and SCCL is outsourced these days and
technology used by these outsourced agencies is mostly the same age-old
- Animesh Nandy,
methods which were used 20 years back. Business Lines Manager – Drilling Solutions,
• Complexities of legal procedures and local inhibitions are a dampener for Epiroc Mining India
new mining projects in India
• Restrictions on the new thermal power plants, exports of iron ore lumps,
imports of coal, transportation from pit heads etc act as road blocks in new thermal power is projected to reduce
developments and capacity enhancements. Environment activist lobbies are in the total energy pie, however
continuously working for restricting the mining activities in tribal dominated around 57 per cent is still thermal, it is
and mineral-rich areas big. Looking at the present scenario, I
• Hope to see the government plan to go 1.5 BT (coal) by 2022, if not earlier, personally feel that for 1 billion tonne,
and some push for upgrading to modern, efficient, safe and environment- it will be 2022 and beyond. Ministry to
friendly technologies sooner. coal’s adhoc measures to increase
• Zinc and lead will experience the largest gains of 27 per cent and 18 per production is at best viewed with
cent, respectively. This is primarily due to mine supply closures and
ridicule as the necessary infrastructure
discretionary shut-ins in several countries.
- Animesh Nandy is not present.”
mining sector has witnessed many Mining India, this growth in the Will privatisation help?
reforms, initiated by the Central manufacturing sector will also lead to Privatisation has helped various
Government. The captive mining the growth of the mining sector as the segments to improve their
policy which was in effect in India for outputs of the mining sector act as performances and progress. Mining
such a long time will now be replaced inputs for the manufacturing sector. has been strictly a government-
with open bidding policy. The idea “As the manufacturing sector expands, controlled affair so far. This year only
behind this was to further augment the it is expected that even the mining the government has come out with the
production of coal through sector will expand because of the policy change of allowing private
commercial mining. This would help domino effect,” he adds. players in commercial coal mining.
ramp up efficiencies in the coal mining Coal India was planning to What will be the impact of this
and extraction processes. It is expected produce 1 billion tonne coal by 2020 as privatisation? Says Ponniah, “The
to bring in greater efficiency, best per an earlier set target. However, the government has allowed commercial
possible technology, higher investment plan was revised recently by pushing coal mining by private entities since
and more employment in coal-bearing the deadline forward to a couple of February 2018. However, any
areas, especially in the mining sector.” years at least (2022 or 2023). meaningful contribution to domestic
India is expected to become the Commenting on this, Nandy adds, “A production from private commercial
fifth largest manufacturing country in very ambitious and welcome target miners will be visible only over the
the world by the end of 2020. The indeed but now it seems some distance long term.”
Government of India has set an away from 2020 for sure for various According to Singh, the
ambitious target of increasing the contributing and cascading reasons. privatisation of commercial coal
contribution of manufacturing output India is committed towards mining is becoming a key for the
to 25 per cent of GDP by 2025, from development of cleaner energy and increase in the overall coal production
16 per cent currently. According to thus focus on other form of energies of the country, as these are time-bound
Animesh Nandy, Business Lines are growing such as hydro, gas, projects with penalties and incentives
Manager – Drilling Solutions, Epiroc residual, nuclear etc. The share of which attract contractors to diversify
50 october 2018
Cover story - Mining Equipment www.EquipmentIndia.com
MINING MACHINERY FROM TATA HITACHI
Tata Hitachi is the leader in the mining excavator segment in India. We have
a range from 3 cu m bucket size (47T class) going up to 5-6.5 cu m excavators
(100T class) made in India, and up to 800T class excavators made in Japan.
We have over 50 per cent market share in 65T class excavators and above. Tata
Hitachi has sold a 260T class Hitachi EX2600E electric excavator - a first of its
kind in India - fitted with 15 cu m bucket capacity and enjoys 100 per cent
market share in that category.
Hitachi has been in the forefront for development of new technologies in
mining equipment. For e.g. Autonomous Haulage Systems on dump trucks have “To achieve the desired
been successfully developed, dump trucks (EH3500AC-3, EH4000AC-3,
EH5000AC-3) are fitted with proven Hitachi IGBT – AC drives which can also aggressive outputs, the
be converted to a trolley option. We had announced the introduction of -7 series traditional methods of
in excavators on EX1200-7, EX2600-7, EX3600-7, and EX8000-7 for the global mining have to be
market which is another step of technology to the global market which have
specifically designed with options of Tier IV engines. Our excavators are fitted changed/modified/
with WIU (WiFi Interface Units) enabling the data download from the equipment upgraded.”
from 50 m away of the equipment. The introduction of ‘Arial Angle’ to identify
the blind spot in equipment to avoid accidents etc, is a major technological - Sandeep Singh,
enhancement in our offering. Managing Director,
- Sandeep Singh Tata Hitachi Construction Machinery Co
country in the world i.e China, there is
in the mining segment. He adds, “To which is a good sign for equipment an abundance of good quality coal at
achieve the desired aggressive outputs, manufacturers. “There are many much cheaper rates and hence
the traditional methods of mining positive signs that we see in the mining importing coal is a cheaper options.”
have to be changed/modified/ sector in the near future. In the
upgraded. This would lead to upsizing contract mining segment for example, Technology adoption
of mining equipment with the latest the overburden (OB) removal tenders Mining in India has created many
technological advanced features, to floated by CIL and its subsidiaries are sensitive issues with respect to
make them more reliable and being finalised in a speedy manner. environment and safety. It is important
productive. Hence, increase of Many key mining contracts are to minimise pollution and risk
privatisation has created a necessity for nearing completion, which would involved in the mining processes.
introducing the latest mining mean the space for new contracts to be Technology plays a key role in these
equipment which have advanced floated this year. The contract mining areas. However, the level of new
features like environment-friendly rates are better than last year and we technology adoption in India is very
engine, vehicle health monitoring see a scope for some more lower compared to global markets.
systems, etc in India.” improvement. Also, many mine According to Ponniah, a trade-off
Panda observes emergence of new development and operation tenders for between short-term costs and long-
mining contracts in the near future coal blocks are getting finalised. These term benefits has led to limited
are good signs for the mining adoption of high technology products
MINING GROWTH equipment manufacturers.” in Indian mining sites. “The size of the
OPPORTUNITIES However, Nandy is speculative equipment used in Indian mines is
• Expansion of underground about the scenario as he cautions, also smaller than its global
mines for metal “Commercial coal mining is still in counterparts. According to news
• MDO in coal mining
government paper and nothing on the reports, 95 per cent of CIL’s total coal
• Increase impetus on exploration
by government agencies ground is visible to me till now. production comes from its 177 open
• Efficiency increment thru Moreover, news from different cast mines, out of the company’s total
autonomous solutions corridors say that due to pressure from 369 mines, with 50-60 per cent of the
• Ambitious target enhancement coal unions and other coal stake production coming from 26 crucial
of coal to 1.5 billion tonne holders, government is mooting a mega mines. The other mines are
• Capacity augmentations in the proposal to put a stay on the proposal relatively smaller in size, which
metal segment specially NMDC, of commercial coal mining by private constrains mechanisation. Apart from
Hindustan Zinc etc players or will go slow on this. the Indian PSU BEML, demand for
Globally due to decrease in demand higher capacity mining equipment is
- Animesh Nandy
from the biggest coal consuming largely met through imports.”
52 october 2018
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Cover story - Mining Equipment www.EquipmentIndia.com
However, the privatisation of if it draws large global players like Rio MINING CHALLENGES
commercial coal mining can open Tinto, Vale, BHP Billiton, Xstrata and • Low private investment in mining
doors to new advanced machines and Anglo American, among others,” • Delays in realisation of
technologies. “Until early 2018, private points out Ponniah. government spending plans
mining was allowed in India only by Singh is of the view, “Acceptance of • Land acquisition and
captive miners with restricted end-use proven global technology in mining environmental clearance issue
such as by cement, and steel has been a challenge in the past years. • Fluctuation on metal prices
• Increase in dollar values
companies. The February 2018 move Although initiatives like the
• Lack of skilled manpower for
by the Government of India to allow knowledge sharing, visits to global
operation and maintenance of
private players in commercial coal mining sites, etc of the users in the HEMMS
mining can be a game changer for mining industry have created an • Unscientific methods of mining
technology adoption in Indian mining awareness to implement the latest and use of unsafe equipment
for mining
• Smaller size of mines
• Unscientific mining by
outsourced contractors
• Rampant use of non-mining
equipment like water-well drills
and excavator- mounted drills
etc, for mining
- Animesh Nandy
technology, the operational challenges
are not allowing the aggressive
implementation of the technology at
the mine sites. The technology
providers are working towards
awareness programs/training which
can enhance the implementation but it
seems this would take more time than
what is expected.”
Nandy elaborates on the trends in
technology adoption, “Technology in
drills has taken a huge leap globally.
Multiple drills in one bench are
operated from a control station
remotely, cabless drills are in use,
telematics, teleremote, rig scans and
many other systems are in demand.
This is also for other mining
equipment manufacturers as well.
Technology adoption is picking up
with the private mining companies in
India as well be it Reliance or Tata
Steel or Lafarge Holcim. Government
companies are lagging in this race but
Photo courtesy: Epiroc
off-late have started positive, especially
for the production and hauling
equipment range. But for drills, they
still use age-old technologies mostly.
However, a couple of government
companies have started discussion
Technology in drills has taken a huge leap globally. with different drill manufacturers on
54 october 2018
Photo courtesy: SANY Cover story - Mining Equipment www.EquipmentIndia.com
“Any meaningful
contribution to
domestic production
from private
commercial miners will
Emergence of new mining contracts in the near future which is a good sign for be visible only over the
equipment manufacturers.
long term.”
upgrades which is a positive sign to market with majority of the lower
start with. Technologies are now capacity equipment being - Pavethra Ponniah,
available, which increases efficiencies, manufactured in the country itself.” Vice President and Sector Head - Corporate
Sector Ratings, ICRA
saves energy as well as increases safety In mining the product applications
such as telematics, recording of are fixed and capacity addition or with full maintenance contracts and
operation parameters and their modifications are done on the site support agreements. Our service
analysis and high-precision GPS, machines to enhance the productivity, engineers are well equipped and
low-emission electronic engines, safety and operators comfort. trained to rapidly assemble large
remote fuel monitoring, RCS, drill “Technologies in mining equipment machines at project sites in shorter
efficiency indicators etc.” are more focused towards lower lead times. Besides, L&T provides
When it comes to the offloaded job emissions, more analysis of training and expertise to the
to contractors in India, Nandy says, “I operational data, capacity operators to handle Komatsu, Scania
hardly see proper mining drills in use, enhancement, lower manpower and and L&T machines.”
forget technology. Use of waterwell lower manual intervention and cost Helena Hedblom, Senior
drills which is banned and now drills efficiencies along with a big Executive Vice President Mining and
mounted on excavators are in rampant requirement of safety aspects and Infrastructure, Eprioc, says, “We also
use instead of proper blast hole drills automation. Teleremote applications, have a very high focus on aftermarket
for mining. You will not see these HPGPS, higher capacity single-pass services, making sure that the
allowances in developed mining drills and higher compressors sizes, customer really gets complete benefit.
markets globally.” longer economic life of the equipment, Being close to the customer is key to
bench remote options, and electronic improve our products, services,
Demand-supply scenario engines are the technologies and quality, processes and supply chain. So
Demand for the mining equipment product improvements are in vogue,” aftermarket support and being close to
is too cyclic in nature so, equipment says Nandy. our customers are critical for our
manufactures need to be constantly in growth in the market.”
touch with the stakeholders to assess Aftermarket support
the demand for equipment or access The success of any business lies in Importance of sustainable
the cyclic curve, according to Nandy. the effective aftermarket support. In mining
“Most of the time, the manufacturers mining, the aftermarket support is With increased sensitivity towards
are in sync with the demand of the crucial as equipment downtime is not the environment and negative impact
equipment and gear up to the spikes at all affordable in mining due to the of global warming, it is imperative that
but for low-capacity equipment, there nature of work and location. Partha we need to have a clear focus on
were cases in the past of mismatch in Mookherjee, Head - Mining environment conservation. Says
the demand-supply due to many Equipment Business, Larsen & Mookherjee, “Mining, being a
external reason and policies. Today, Toubro says, “L&T’s strengths lie in contributor to global pollution, it is
companies like us are well poised to its ability to remotely manage large natural that all of us should move
cater to the demand of the Indian assets in various projects across India towards sustainable mining. L&T,
56 october 2018
Cover story - Mining Equipment www.EquipmentIndia.com
being an environmentally conscious equipment, and will contribute to
company, has always been in the sustainable mining environment.”
forefront of nature conservation.
Komatsu equipment incorporate all Market challenges
the latest features which are According to Singh, the mining
environment-friendly like lead-free equipment industry in India is guided
radiators, emission-compliant engines, by the complex buying process,
low-noise cabins etc, which meet the involving a lot of documentation as
most stringent pollution norms well as acceptance and adaptation of
applicable anywhere in the world. the latest technology. “All along, the “One key challenge
Epiroc is a major player in buying process talks of provenness, that equipment
environment-friendly battery-powered which makes the global manufacturers manufacturers are
ventilation technology in mining. less willing to take risk of promoting facing currently is the
Hedblom, elaborates, “We also have a the equipment in India as it leads to
tender evaluation
major presence in battery technology. financial implications. In the current
When mines go deeper and deeper, the frameworks, technology does not score criteria.”
need for ventilation will be more, and any points, however the situation
70-80 per cent of the oxygen seems to be improving. We see that the - Dheeraj Panda,
Head - Excavator and Mining Business Unit,
underground is used by engines. Using mining equipment industry in India SANY Heavy Industry India
battery technology can improve the has a good potential and should
working environment underground grow aggressively.” manufacturers are facing currently is
and at the same time, reduces the need Panda highlight the current the tender evaluation criteria. It is still
for exhaust ventilation. So our product tendering process a key challenge for largely based solely on pricing, while
development plans are heavily towards equipment companies. He adds, “One the technical weightage is not
automation and battery-driven key challenge that equipment considered for evaluation. Products
Photo courtesy: SANY
The focus is now on the equipment that would increase operational efficiencies while maintaining the highest levels of reliability.
58 october 2018Cover story - Mining Equipment www.EquipmentIndia.com
MINING MACHINERY have created new opportunities for
FROM SANY mining equipment manufacturers in
SANY entered India market spite of a challenging environment. A
with off-highway dump trucks. major boost in this direction is the
These trucks are largely used in Coal India’s decision to acquire
large surface mining sites for equipment worth Rs 120-130 billion in
transportation of OB, coal, iron ore, the coming 2-3 years. Says Ponniah,
limestone, bauxite etc and in quarry
“Overall, MCE demand potential from
segment. The trucks are equipped
the coal mining sector has been a
with high-strength frame and are “Mining, being a
20 per cent stronger than any other function of the timeline of equipment
product in the same category. We ordering by CIL. Coal production by contributor to global
also offer 50 and 75 tonne CIL and its subsidiaries has grown by pollution, it is natural
excavators for the mining industry. 11.9 per cent during YTD FY19 (up to that all of us should
These excavators have already August); this growth momentum is
proven their superiority in the global move towards
expected to continue considering the
arena. Apart from this, our global demand pick-up from thermal energy. sustainable mining.”
line-up also includes a range of
Coal India has lined up a sizable capex
integrated road headers for - Partha Mookherjee,
plan of ~Rs 9.5 billion for FY2019; the
underground mining. Head - Mining Equipment Business,
PSU spent ~ Rs 8.6 billion in FY2018. Larsen & Toubro
- Dheeraj Panda Further, CIL has announced plans to
procure equipment worth Rs 120-130 would be increased demand for the
that focus on R&D and offer superior billion via global tenders over the next mining equipment from these
technology and quality, cannot match three years, with Rs 40-50 billion of companies. The purchase cycles for the
L1 pricing. We feel, this needs to be orders placed in FY2019. This could equipment have reduced. Also to add
addressed as the industry becomes translate into sizable demand for to the outlook, the existing fleet is
more and more competitive.” Indian equipment companies.” nearing the expected economic life.
Our country has been witness to According to Singh, Coal India’s The focus is now on the equipment
sharp changes in the mining decision of acquiring mining that would increase operational
regulatory framework in the last few equipment has been a positive move as efficiencies while maintaining the
years, around prospecting schemes, in the last few years there has been highest levels of reliability.”
award of leases, auction of concessions, very low buying considering the Nandy says, “Globally, the share of
as well as compliances. There has also economic scenario. He adds, “With drilling equipment is only about 5 per
been quite a judicial intervention. On their announcement of acquiring cent of the total mining equipment
the impact of these changes, mining equipment worth Rs 120-130 purchase. Procurement plans in India
Mookherjee says, “Yes, there has been billion in the next two to three years, it by CIL is no different. Moreover, the
a disruption in mining activities is likely that they would be buying decision to procure equipment of the
starting with Supreme Court heavy earthmoving machinery mentioned value is for long terms and
judgement in the coal and mining (HEMM) like rope shovel, hydraulic also includes replacement of existing
sector coupled with adoption of shovels, dump trucks, wheel loaders bigger and high value equipment. The
stringent norms in LA and R&R which etc. Tata Hitachi, a leader in excavators percentage of equipment for newer
had slowed down the overall process of in Indian market, which is subsidiary projects and expansion against
new projects coming up. We are, of Hitachi Construction Machinery replacements will be the key and needs
however, hopeful that with the overall Japan, has excavators with diesel drives to be seen.”
positive business scenario and growth with a range from 1 cu m bucket
prospects, the industry shall revive capacities to 45 cu m bucket capacities Future promising but
sooner than later. The slowing down of as well as electric drives from 11 cu m challenging
the industry has impacted the off-take to 45 cu m bucket capacities, dumpers According to Ponniah, while
of mining machinery but things have with IGBT, AC drive technology with demand for construction equipment
started looking up of late with 190T, 240T and 290T capacities, wheel has witnessed strong growth during
enquiries and overall buoyancy.” loaders etc. These are the categories the past two years, supported by
where we would be interested in.” Central Government’s infrastructure
Opportunities galore Panda adds, “CIL and its investments, particularly in roads,
The policy changes and new subsidiaries have increased their demand growth for mining equipment
aggressive approach of mining players production target. Naturally, there has been relatively muted at 5-10 per
60 october 201810,000
1
- -60%
2018P
2019P
2020P
2006
2007
2008
2009
2010
2011
2012
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2014
2015
2016
2017
Cover story - Mining Equipment
“Using battery
technology can
improve the working
ICRA research sample of global mining company capex includes RIO TINTO, Vale, BHP
Billiton, Xstrata, Anglo American and the Fortsecue Metal Group Limited environment
Capital expenditure of global mining companies (million USD). underground.”
cent. She adds, “Future growth in Q4FY2019. Also, while demand for
- Helena Hedblom,
potential is a function of the timing of mining equipment in India is largely Senior Executive Vice President
CIL’s equipment order placement. linked to demand for coal, iron ore Mining and Infrastructure, Epiroc.
Given CIL’s big plans for FY2019, and limestone, aggregate production
demand for mining equipment can for road work would also leads to in stone quarrying.”
witness a strong uptrend, particularly demand for high tonnage equipment Ponniah further adds on the
growth trend, “Supported by
increasing commodity prices, global
mining equipment demand grew by
over 50 per cent during FY2018,
registering its first year of growth since
FY2014. However, volumes are still
less than 50 per cent of the previous
peak of FY2012. Capital expenditure
by global mining majors is expected to
witness a revival in CY2018, after five
years of decline, supported by
improving prices for base metals, coal
and crude. This in turn is expected to
support pick-up in global mining
equipment demand, going forward.
Singh expects the mining equipment
market to grow at a rate of 6-8 per cent
year-on-year.
Mining in India has gained some
momentum this year with the
progressive policy initiatives. Steps
towards privatisation of commercial
coal mining, lifting of bans in iron ore
mining and improvement in mine
auctions by the government have
Photo courtesy: Epiroc
created new opportunities for mining
equipment players. But the growth will
depend on how soon and fast the
mining activities take off and continue
at a steady pace.
Policy changes and aggressive approach of mining players have created new
opportunities for mining equipment manufacturers. - sudheer vathiyath
october 2018 61You can also read
