Sandvik has won a circa-US$80 million order from South32 for underground equipment to be deployed at the $2.16 billion Hermosa zinc-lead-silver project in Arizona, USA. Most of the equipment would be battery-electric powered, Sandvik said.
The Swedish manufacturer described the BE component of the deal as its largest ever order for battery-electric vehicles. Booked into the current quarter, the sale of BE trucks, loaders, bolters, development drills and long-hole drills, plus conventional machines, follows rival Epiroc’s c$220 million order for electric surface drills from Australian iron ore miner Fortescue announced this month.
Sandvik said its deliveries to South32 would start in the fourth quarter next year and run through 2030.
“We’re proud that Sandvik BEVs will help contribute to an increased supply of critical minerals, supporting the continued electrification of society,” Sandvik Mining and Rock Solutions president Mats Eriksson said.
“Lower fuel expenses and maintenance costs coupled with longer equipment lifespan will enable a more efficient, economical and sustainable mining operation at Hermosa.”
Australian-based South32 is developing the 100%-owned Taylor sulphide deposit at Hermosa for targeted first production in the second half of FY2027. It is also studying development of the adjacent oxide Clark manganese-silver deposit with the aim of filling a gap in US domestic manganese supply.
Sandvik said Hermosa was the only advanced mine development project in the US that could produce two federally designated critical minerals in manganese and zinc.
