Swedish engineering firm Sandvik has secured a major deal worth over €33 million (SEK 370 mn) with Rana Gruber, a company in Norway looking to decarbonize its iron ore mine operations in Storforshei. As part of the deal, Sandvik will deliver a fleet of zero-emission trucks, loaders, drills, on-site service support and batteries to Rana Gruber. The order, which was split into two parts, was initially booked for 15% in December of last year, with the remaining 85% due to be delivered in the coming months.
The equipment delivery is set to begin this spring and will continue through to 2024. Once completed, this will be the second-largest battery-electric mining fleet for Sandvik. The fleet will include 19 vehicles, including six Sandvik TH550B trucks, five Sandvik LH518B loaders, four Sandvik DL422iE longhole drills, two Sandvik DS412iE mechanical bolters, and two Sandvik DD422iE jumbos. This significant investment by Rana Gruber reflects the increasing trend for companies to invest in sustainable technologies to reduce their environmental impact.
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Rana Gruber, a leading iron ore producer, has announced its commitment to becoming the world’s first carbon-free mine by the end of 2025. To achieve this goal, the company has signed a letter of intent with Sandvik, a long-term supplier that will now provide battery-electric equipment for Rana Gruber’s mining operations in Norway’s Dunderland Valley.
According to Rana Gruber’s data, the company produces approximately 1.8 million metric tons of iron ore annually, and its resource base includes more than 440 million metric tons of iron ore. Sandvik, which has supplied Rana Gruber with equipment for over 25 years, conducted studies and simulations through its in-house consultancy, Trans4Mine, to advise Rana Gruber on BEV fleet requirements, charging station locations, and other mining cycle optimizations.
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Gunnar Moe, CEO of Rana Gruber, expressed his satisfaction with Sandvik’s collaboration, stating that the company is a “true partner wanting to take the journey with us.” He expects the implementation of battery-electric equipment to improve the work environment and reduce operational costs while further reducing CO2 emissions, exhaust emissions, and underground heat and noise pollution.
Sandvik has been offering electric mining vehicles for at least two years, providing compact and efficient equipment. The company has also been offering battery-related services from the start, and in 2021, it acquired Akkurate, a provider of holistic battery management solutions, including remote diagnostics and forecasting for batteries.
The partnership between Rana Gruber and Sandvik is a significant step towards a more sustainable mining industry, demonstrating the increasing adoption of battery-electric equipment in the sector. As more companies prioritize carbon neutrality and sustainable mining practices, such partnerships are likely to become more common.
“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,” said Stefan Widing, CEO and President of Sandvik when commenting on today’s order from Rana Gruber. He added that their battery-electric solutions were a “strategic focus” for Sandvik and an “essential driver in shaping the sustainable mine of the future”.
