Sandvik selected to supply record SEK 370 million worth of BEV equipment to Rana Gruber in Norway

Rhea-AI Summary

On February 15, 2023, Sandvik has been awarded a contract to supply a fleet of 19 battery-electric vehicles (BEVs) to Rana Gruber for its iron ore operations in Norway, valued at approximately SEK 370 million. About 85% of the total value will be recorded in Q1 2023, with deliveries starting in the same quarter and extending through 2024. This initiative supports Rana Gruber's goal of achieving a carbon-free iron ore mine by 2025, contributing to reduced CO₂ emissions and improving the work environment. Sandvik's CEO emphasized the demand for their battery-electric solutions as a strategic priority for sustainable mining.

Positive

• Sandvik's contract with Rana Gruber worth SEK 370 million indicates strong demand for battery-electric vehicles.
• 85% of the contract value will be recognized in Q1 2023, positively impacting early revenue.
• Supporting Rana Gruber's carbon-free mining goal enhances Sandvik's reputation in sustainability.

Negative

• None.

STOCKHOLM, Feb. 15, 2023 /PRNewswire/ -- Sandvik has been selected to supply a fleet of 19 battery-electric vehicles (BEVs) for use at Rana Gruber's iron ore mine operations in Storforshei in northern Norway. The order is valued at approximately SEK 370 million, and includes trucks, loaders, drills, on-site service support and batteries. About 85% of the  total value will be booked in the first quarter 2023, and the remaining part was booked in December 2022. Deliveries are planned to begin during the first quarter of 2023 and continue through 2024.

The BEV fleet will support Rana Gruber's ambitious goal to operate the world's first carbon-free iron ore mine by the end of 2025. In addition to enabling reduced CO₂ emissions, Sandvik's highly productive BEV solutions also provide proven substantial benefits to the work environment, eliminating exhaust emissions and reducing heat and noise pollution.

"I am very pleased to see that there is such strong customer interest in our battery-electric offering, and particularly that we are seeing an increase in larger and repeat orders, which is a testament to Sandvik's high performing equipment and service. Our battery-electric solutions offering is a strategic focus area for Sandvik and an essential driver in shaping the sustainable mine of the future. We very much look forward to helping Rana Gruber realize their decarbonization strategy," says Stefan Widing, CEO and President of Sandvik.

Rana Gruber produces approximately 1.8 million metric tons of iron ore concentrates annually from its five deposits in Norway's Dunderland Valley. Its resource base includes more than 440 million metric tons of iron ore.

"Rana Gruber is a pioneer in the mining electrification shift in Europe and a long-time partner of Sandvik. We are very excited to further strengthen our collaboration and support their battery-electric transition," says Mats Eriksson, President of Sandvik Mining and Rock Solutions.

Stockholm, February 15, 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.

The following files are available for download:

https://mb.cision.com/Main/208/3715107/1849484.pdf

Sandvik selected to supply record SEK 370 million worth of BEV equipment to Rana Gruber in Norway

 

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SOURCE Sandvik

FAQ

What is the value of Sandvik's contract with Rana Gruber for battery-electric vehicles?

The contract is valued at approximately SEK 370 million.

When will Sandvik begin delivering the BEVs to Rana Gruber?

Deliveries are scheduled to start in the first quarter of 2023 and continue through 2024.

What is Rana Gruber's goal by the end of 2025?

Rana Gruber aims to operate the world's first carbon-free iron ore mine by the end of 2025.

How much of the contract's value will Sandvik book in Q1 2023?

About 85% of the total contract value will be booked in the first quarter of 2023.

What type of solutions is Sandvik providing to Rana Gruber?

Sandvik is supplying battery-electric vehicles, including trucks, loaders, and drills.