Tag Archive for 'Mining'

Caterpillar Venture Capital Invests in Alight Mining Solutions™

Investment to support Caterpillar’s mining customers with financial forecasting and scenario analysis

Caterpillar Venture Capital Inc., a wholly owned subsidiary of Caterpillar Inc. (NYSE:CAT), announced today a strategic investment in Alight, Inc., a San Francisco-based SaaS (software as a service) technology company that develops industry-specific solutions for financial forecasting and scenario analysis. The unique software has modules that are designed specifically for different industries, with mining and mortgage banking as the first two target industries.

Caterpillar has begun discussions with Alight Mining Solutions to develop enhanced solutions that will combine data from technology-enabled machines with financial forecasting software to help mining companies make more real-time business decisions.

Alight’s cloud-based products allow users to pull data from other systems such as Cat® MineStar™, quickly run multiple scenarios to facilitate financial decision making and then create enterprise-level financial forecasts.

“We’re always looking to invest in new ways that could help Caterpillar’s customers improve their profitability, especially through the use of technology,” said Jim Hawkins, managing director of mining technology for Caterpillar. “Alight’s technologies can allow our customers to see the financial impact of a machine or technology purchases as well as operational decisions before they’re made.”

“We are thrilled to partner with Caterpillar and help bring new levels of innovation to the global mining industry,” said Michele McGovern, CEO, Alight, Inc. “Caterpillar’s technology is making huge quantities of rich information available to its customers and our intention is to combine this data with Alight’s solutions so that data can be used to drive decision making to find greater profits and opportunities for growth.”

Like Cat MineStar, Alight’s mining offering was developed by mining industry experts, specifically for mining customers. Combining Alight’s software with Cat MineStar will allow production data such as tons-moved to be viewed in context of financial information such as costs and revenues, helping miners make assessments at the site level and analyze strategic opportunities throughout the enterprise.

“Our mining customers make decisions on very large capital investments, in market conditions that are constantly changing,” continued Hawkins. “We believe that the solutions we are looking to develop with Alight could help them better understand the impact of these decisions on production and operations as well as on profit margins and cash flow.”

Cat MineStar, part of the Cat Connect family of technologies and services, helps customers deal with everyday challenges: controlling costs, extending equipment life, and enhancing safety. For mines large and small, above and below ground, Cat MineStar works with any brand of equipment helping customers leverage data across their existing machines, systems, and technologies to boost business results and gain their competitive edge.

About Caterpillar
For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2016 sales and revenues of $38.537 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.

About Alight
Alight is a fast-growing provider of industry-specific, cloud-based applications that change the way businesses are run. Alight’s applications let executives Manage the FutureÔ by showing the financial ripple effects of potential decisions across the enterprise. Alight works with firms in dynamic and complex industries, including mining and mortgage banking. For more information: alightinc.com.

John Deere Adds Industry-Leading 20,000-Hour Warranty on 944K Hybrid Wheel Loader Power Electronic Components

On the heels of its most successful CONEXPO-CON/AGG ever, John Deere is now offering a 96-month (eight-year)/20,000-hour power electronic components warranty on the 944K hybrid wheel loader. The warranty is retroactive to existing machines in the field and provided on new 944K loaders through October 31, 2018.

“We continue to build confidence in our hybrid technology and the high-design life of machine components,” said Jason Daly, director, customer and product support, John Deere Construction & Forestry. “As our hybrid experience continues to grow, we feel strongly that this 20,000-hour warranty allows a customer the opportunity to go through a 15,000-hour rebuild/re-life without the expense of worrying about power electronic components.”

The warranty includes a 96-month (eight-year) or 20,000-hour (whichever comes first) non-prorated assurance on wheel motors, generators, power inverters and brake retarders. Certain customer conditions must be met to maintain warranty coverage. This includes component rotation between 15,000 and 18,000 hours; drive voltage cables replacement between 15,000 and 18,000 hours; and an annual dealer machine inspection.

The 536 horsepower 944K hybrid wheel loader features an EPA Interim Tier 4 engine (IT4), and it can provide significant fuel savings over 9-yard3 loaders with conventional drivetrains*. The production-class wheel loader’s brushless AC generators and motors, water-cooled brake resistors and solid-state power electronics deliver reliable, long-term performance to quarry and large-load applications.

For additional information, visit http://www.deere.com/Quarry or contact your local dealer.

*Actual fuel consumption rates and savings will vary with machine application, utilization, operator and model of competitive unit.

Caterpillar Sponsors Hackathon to Create Innovative Solutions for Boosting Mining Equipment Operator Performance

Software developers, data scientists, engineers and entrepreneurs will convene in San Francisco from September 23-25, 2016 for a 54-hour hackathon sponsored by Caterpillar and Unearthed, an Australia-based open innovation organization for the global resources sector. The hackathon format brings together creative problem solvers and industry experts who work in teams under intense time pressure to propose prototype solutions to industry challenges.

“Caterpillar is pleased to sponsor Unearthed San Francisco,” said Tony Johnson, marketing manager for Caterpillar Global Mining, Surface Mining & Technology Division. “It’s especially fitting to host this event just prior to MINExpo where Caterpillar will showcase a strategy of continuous innovation,”

cat-793f-mining-truck-at-work“The Unearthed organization has inspired more than 1,000 innovators to attack problems in the global resources sector, and in the process, at least 150 promising solutions have been produced,” said Roberto Ortega, Innovation Incubator, Caterpillar. “We’re excited to put that kind of energy and imagination to work on behalf of our customers.”

Among the innovations emerging from Unearthed events are novel sensors and analytics for preventing oversize material from blocking the crushers on iron ore sites, predictive algorithms that dramatically reduce the need for lab sampling, and wearable devices that improve workplace safety. Some of the mining and oil & gas companies taking advantage of this approach include BHP Billiton, Iluka Resources, Newcrest, Rio Tinto and Woodside.

“The global resources sector faces unprecedented pressure to improve the efficiency and sustainability of its operations, and at the same time it will see nearly $1 trillion of impact from new technologies in the decade ahead,” explained Justin Strharsky, director of Unearthed. “We are helping industry adapt by creating opportunities for entrepreneurs.”

The task at hand

In San Francisco, Caterpillar will challenge hackathon participants to propose innovative ways to use telematics data and real-time coaching to improve surface mining truck operator performance.

“Operator technique has a profound effect on productivity, fuel efficiency, component life and operating costs,” explained Johnson. “Our customers spend a lot of time and resources on traditional training activities, but we believe we can augment their work with data, analytics and real-time feedback.”

Using several large datasets from Caterpillar, hackathon participants will spend the weekend exploring how the information could be used to improve operator performance, predict potential problems, reward desired behavior and reduce machine misuse. Caterpillar subject matter experts will be on hand to provide industry perspective.

At the end of the session, teams will have five minutes to present their ideas and five minutes to respond to questions from a panel of judges. Cash prizes will be awarded for the top prototypes. The first-place team will be featured in a video shown at MINExpo 2016, the world’s premier mining equipment and technology exhibition.

“We expect that the solutions provided by the hackathon participants will be applicable to surface and underground mining equipment,” Ortega said. “In the spirit of innovation, the solutions are likely to be applicable to most types of heavy equipment and not limited to mining applications.”

“The hackathon is just one more way we’re putting the latest tools, processes and ideas to work for Caterpillar customers—helping them improve safety, increase production efficiency and reduce costs,” Johnson concluded.

To learn more about Unearthed San Francisco, go to http://unearthed.solutions/events/unearthed-san-francisco-2016/

Komatsu to acquire U.S. mining equipment manufacturer Joy Global

Komatsu logoKomatsu Ltd. (Head office: Minato-ku Tokyo, President and CEO: Tetsuji Ohashi, hereafter “Komatsu” or “Company”) announced today that it has signed a definitive agreement with Joy Global Inc. (Head office: Wisconsin, USA, CEO: Edward L. Doheny II, hereafter “Joy Global”, NYSE), a leading manufacturer of surface and underground mining equipment, under which Komatsu America Corp. (Head office: Illinois, USA, Chairman and CEO: Rodney Schrader, hereafter “KAC”), a wholly-owned subsidiary of Komatsu in the USA, will acquire 100% ownership of Joy Global (hereafter “Acquisition”). The Acquisition is expected to close in mid- 2017, subject to the approval of shareholders of Joy Global and the receipt of necessary regulatory approvals under laws in relevant countries.

Purpose of the Acquisition

Komatsu embarked in April on a mid-range management plan for the next three years (2016-2018) under the slogan “Together We Innovate GEMBA Worldwide – Growth Toward Our 100th Anniversary (2021) and Beyond”. The Acquisition is in line with the growth strategy of the plan which calls for the Company to strengthen the core mining equipment business in an effort to achieve sustainable growth.

Joy Global is a worldwide mining machinery and services company founded in 1884. Through its leading brands — P&H, Joy and Montabert – Joy Global manufactures and services advanced original equipment and parts for underground and surface mining applications, as well as material handling systems and components for a variety of applications, products that complement existing Komatsu products. The company’s integrated technology, services and solutions are a critical component of operations in a variety of commodity markets including energy, hard rock and industrial minerals. The company operates globally and generates an annual revenue of 3,172 million US dollars (approximately 333 billion yen at @105yen/U$).

Komatsu has engaged in the mining equipment business since its foundation in 1921. In the 1990s the Company expanded by acquiring selected mining equipment manufacturing and distribution businesses operating in major mining regions. Today, Komatsu’s annual revenue of 450 billion yen from mining equipment business is generated by surface mining equipment only, as the Company’s portfolio does not include equipment for underground mining. Further, the Company’s product lineup does not include super large-sized loading equipment for surface mining.

Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices. Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanization around the world. In terms of mining techniques, economic rationale will call for use of larger equipment in surface mining as well as further development of underground mining.

Joy Global and Komatsu’s product lines will integrate well, expanding options for customers worldwide, as Komatsu can now offer the underground mining equipment and super large-sized loading equipment of which Joy Global is a leading provider. Both companies value a direct sales and service approach and will continue to engage with customers globally. Merging manufacturing technologies and linking products through Komatsu’s fleet management system will further capabilities on both sides to directly engage with customers to optimize machine performance and enhance automation for safety and productivity gains. Komatsu will continue to offer Dantotsu products, Dantotsu services, and Dantotsu solutions to our customers to jointly create innovation in mining operations.

Benefits of the Acquisition

The corporate culture at Joy Global values pursuit of safety, improvement of customer productivity ($/ton reduction), and the drive for innovation. This is very similar to the corporate culture at Komatsu. Komatsu and Joy Global also share the approach of offering “direct sales/services” to customers, engaging with them directly to address issues at their jobsites. The Acquisition of Joy Global, which shares similar cultures, values and strategies with Komatsu, is expected to bring Komatsu the following two benefits.

(1)Complementary product lineup

Joy Global’s lineup of surface mining equipment includes rope shovels, super large wheel loaders, draglines and drills which Komatsu does not offer. Joy Global’s lineup of rope shovels and super large wheel loaders pair well with the super large electric dump truck Komatsu manufactures and will generate synergies in sales and services. In addition, Joy Global manufactures underground mining equipment, another area Komatsu has not engaged in. With the Acquisition, Komatsu will become a meaningful participant in underground mining as well. The Acquisition will allow Komatsu to offer Dantotsu products to customers in both surface mining and underground mining businesses.

(2)Stronger Dantotsu solution offerings

Joy Global places priority on providing solutions that enhance safety and productivity of customer operations. For example, JoySmart Solutions leverages the Internet of Things to connect customer products with experts using data and analytics to improve mine performance. Komatsu also engages in the improvement of safety and productivity with its Autonomous Haulage System, mine fleet management systems and KOMTRAX Plus, which all serve to visualize jobsite operations. Data obtained from IoT-based mining equipment and systems will be connected and used through the open platform of Komatsu and this will bring synergies in providing Dantotsu solutions to customers.

Structure of the Acquisition

This Acquisition is structured as a reverse triangular merger between Joy Global and a wholly owned subsidiary KAC has established for the purpose of the Acquisition (“Acquiring Subsidiary”). Joy Global will be the surviving company and the shareholders of Joy Global will receive the cash payment as described below. At the same time, shares of the Acquiring Subsidiary owned by KAC will be converted into outstanding shares of the surviving company, making the surviving company the wholly-owned subsidiary of KAC. The Acquisition is subject to approval by the meeting of shareholders of Joy Global, receipt of necessary regulatory approvals under the applicable laws in relevant countries, and the satisfaction of other customary closing conditions stipulated in the Acquisition agreement. Under the Acquisition agreement, Komatsu guarantees the performance of obligations of KAC and the Acquiring Subsidiary.

Komatsu will acquire Joy Global for U$ 28.3 per share (total of approximately 2,891 million US dollars * (approximately 303.6 billion yen at 105yen/U$)). Komatsu plans to finance the Acquisition through funds on hand and bank loans and does not plan to increase capital at this stage.

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Future outlook

After the Acquisition is complete, Joy Global will become a consolidated subsidiary of Komatsu. The Company will make a disclosure of the impact of the Acquisition on its performance in a timely fashion as needed after the close of the transaction.

As the Acquisition is expected to close in or after April 2017, the Acquisition will have no impact on the results and performance of Komatsu for the fiscal term ending March 2017.

Information in the news releases is current on the date of the announcement and is subject to change without notice.

To view the complete release click here:

Caterpillar Announces New Group President Vice President Denise Johnson to Replace Retiring Group President Ed Rapp

Caterpillar Vice President Denise Johnson Elected Group President Effective April 1, 2016

Caterpillar Vice President Denise Johnson Elected Group President Effective April 1, 2016

Caterpillar Inc. announced today that the company’s Board of Directors has elected Denise Johnson, currently vice president with responsibility for the Material Handling & Underground Division, as group president of Resources Industries. The appointment follows the recently announced retirement of Group President Ed Rapp.

“Denise leads one of the largest and most complex businesses in the company; her division makes products primarily for the mining, waste and construction industries and employs about 8,000 people in 14 locations spanning four continents. She has successfully managed costs during the mining downturn and been deeply involved in restructuring within Resource Industries, all while gaining market position for multiple products in her portfolio. Denise has accomplished these business results while also delivering outstanding safety and quality metrics,” said Caterpillar Chairman and CEO Doug Oberhelman. “Above all, Denise is a leader inside and outside of Caterpillar. Whether she’s engaging with employees, strengthening relationships with key mining customers or serving as a strong role model to recruit more female engineers, Denise consistently excels.”

Johnson joined Caterpillar in 2011 as the general manager of Caterpillar’s Specialty Products business unit where she had responsibility for nearly 20 facilities around the world. She came to Caterpillar after a 22-year career with General Motors, where she built deep expertise in operations and product management in a series of positions in the United States, Canada and Brazil. A year later, she was elected vice president of the Diversified Products Division with responsibility for industries including forestry, paving and on-highway trucks. In 2013, she became vice president of the Integrated Manufacturing Operations Division overseeing major operations in Caterpillar’s largest division at the time. She was named to her current role in 2014.

Johnson graduated from Michigan State University with a bachelor’s degree in mechanical engineering. She earned dual master’s degrees in mechanical engineering and business administration from the Massachusetts Institute of Technology. Johnson is a member of numerous outside boards including The Mosaic Company.

Her move is effective April 1, 2016. Johnson’s successor will be named at a later date.