OEM Caterpillar has confirmed to North American Mining and Miners News that it has made a preliminary deal to exit longwall mining and divest its longwall equipment arm to Hauhinco.
The deal is subject to the negotiation of a final agreement, and no financial details are available.
The transaction, a spokesperson told NAM and MN, is expected to be completed during the third quarter of this year.
The impetus for the deal, he added, was to allow Cat to stay focused on its core products and services.
“Caterpillar and Hauhinco will work together to ensure a smooth transition to minimize any impacts to customers and dealers,” the spokesperson said.
Watch Miners News for more information as it becomes available.