Sandvik has confirmed its retainment to supply a fleet of 19 battery-electric vehicles for use at Rana Gruber’s iron ore operations in Storforshei, northern Norway, in a deal worth a record SEK 370 million (US$35.1 million).
The order, which will begin to be delivered during the current quarter and continue through 2024, 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.
The BEV fleet will support Rana Gruber’s goal of operating the world’s first carbon-free iron ore mine by the end of 2025. In addition to enabling reduced CO2 emissions, the BEVs also offer 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,” Sandvik CEO and President Stefan Widing said.
“Our battery-electric solutions offering is a strategic focus area for Sandvik and an essential driver in shaping the sustainable mine of the future.”
Mats Eriksson, president of Sandvik Mining and Rock Solutions, also called Rana Gruber “a pioneer in the mining electrification shift in Europe” in addition to being a long-term partner of the OEM.
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.