Major Mexico gold project opts for mixed Sandvik mobile fleet

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Torex Gold's ELG gold plant in Mexico

Canadian gold producer Torex Gold has confirmed Sandvik as the supplier of its mixed underground equipment fleet for the US$850 million Media Luna project near its El Limon Guajes (ELG) operations on Mexico’s Guerrero Gold Belt.

Torex has ordered US$63 million of battery-electric production machines and diesel development units for Media Luna, which it expects to add 10 or more years of production life to ELG from early 2025. Torex has said it will look to “transition away from diesel as BEV technology improves”.

The order includes 15 BEV and 20 diesel vehicles.

Media Luna is forecast to produce an average 374,000oz gold-equivalent (with copper and silver credits) at US$954/oz gold-equivalent AISC after ramp-up.

ELG, one of Latin America’s largest gold producers, is guided to yield 440,000-470,000oz at US$1080-1130/oz AISC in 2023.

“The order is Sandvik’s first for BEVs in Latin America and its third-largest battery-electric mining fleet order to date,” the Swedish equipment manufacturer said this week.

“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.”

Sandvik CEO Stefan Widing has said BEV demand is expanding in mining and tunnelling.

“We continue to see a high interest in our battery-electric offering,” he said this week.


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