Sandvik wins SEK 650 million mining equipment order and its third largest BEV order to date

Rhea-AI Summary

On March 28, 2023, Sandvik announced a significant order from Torex Gold Resources for a 35-unit mining equipment fleet at the Media Luna project in Mexico, valued at approximately SEK 650 million. This includes 15 battery-electric vehicles (BEVs) and 20 conventional internal combustion engine (ICE) units, marking Sandvik's first BEV order in Latin America. Deliveries will start in Q3 2023 and extend into Q4 2025. The contract highlights a push towards sustainable mining practices as Torex aims to launch commercial production by early 2025, targeting 7,500 metric tons per day by 2027.

Positive

• Received SEK 650 million order for a mining equipment fleet.
• First BEV order in Latin America, showcasing innovation in sustainability.
• Third-largest battery-electric mining fleet order to date.
• Supports Torex's decarbonization strategy.

Negative

• None.

STOCKHOLM, March 28, 2023 /PRNewswire/ -- Sandvik has received a major order from the Canadian mining company Torex Gold Resources to supply a 35-unit mining equipment fleet for its Media Luna project in Mexico. The order, which includes 15 battery-electric vehicles (BEVs), and 20 conventional internal combustion engine (ICE) equipment units, is valued at approximately SEK 650 million and will be booked in the first quarter 2023. 

The order is Sandvik's first for BEVs in Latin America and its third-largest battery-electric mining fleet order to date. Equipment deliveries are planned to begin in the third quarter 2023 and continue into the fourth quarter 2025. The BEVs include loaders and twin-boom jumbos, and the conventional equipment ordered comprises loaders, trucks, bolters, production drills and a raiseborer.

"I am very pleased that we have been chosen by Torex Gold to deliver our leading solutions to Media Luna. We continue to see a high interest in our battery-electric offering, and this order also shows how we can help customers on the transition to more sustainable mining with our strong total offering of high performing equipment and services," says Stefan Widing, CEO and President of Sandvik.

Torex expects to bring Media Luna into commercial production in early 2025, ramping up to 7,500 metric tons per day by 2027 and creating one of Mexico's largest underground mines. Torex is implementing battery-electric production equipment at Media Luna as part of a wider decarbonization strategy.

"This milestone order demonstrates that both BEVs and conventional ICE mining equipment can not only coexist in today's underground mine but deliver value in different circumstances and applications. We are proud to support Torex on its journey to operate a world-class mine with a significantly reduced carbon footprint," says Mats Eriksson, President of Sandvik Mining and Rock Solutions.

Stockholm, March 28, 2023
 
Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008

Sandvik Group

Sandvik is a global, high-tech engineering group providing solutions that enhance productivity, profitability and sustainability for the manufacturing, mining and infrastructure industries. We are at the forefront of digitalization and focus on optimizing our customers' processes. Our world-leading offering includes equipment, tools, services and digital solutions for machining, mining, rock excavation and rock processing. In 2022 the Group had approximately 40,000 employees and revenues of about 112 billion SEK in about 150 countries within continuing operations.

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Sandvik wins SEK 650 million mining equipment order and its third largest BEV order to date

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SOURCE Sandvik

FAQ

What is the value of Sandvik's new order from Torex Gold Resources?

The order from Torex Gold Resources is valued at approximately SEK 650 million.

When will the equipment orders for Media Luna project be delivered?

Deliveries are planned to begin in the third quarter of 2023 and will continue into the fourth quarter of 2025.

What type of mining equipment did Sandvik supply for the Media Luna project?

The equipment supplied includes 15 battery-electric vehicles (BEVs) and 20 conventional internal combustion engine (ICE) units.

How significant is this order for Sandvik in terms of battery-electric vehicles?

This order is Sandvik's first for battery-electric vehicles in Latin America and is its third-largest BEV order to date.

What production targets does Torex Gold have for the Media Luna project?

Torex Gold expects to bring Media Luna into commercial production in early 2025, ramping up to 7,500 metric tons per day by 2027.