India's largest coal handling agency - Mjunction

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complete longwall mining systems (consisting of powered
roof supports, an armored face conveyor, and a longwall
shearer, continuous haulage systems, battery haulers and roof
bolters.
Additionally, Joy also maintains an extensive network of
service and replacement parts distribution centres to rebuild
and service equipment and to sell replacement parts and
consumables in support of its installed base. This network
includes five service centres in the US and eight outside the
US, all of which are strategically located in major underground
mining regions. The surface mining equipment unit of the
company P&H Mining Equipment continued to build upon the
successful introduction of AC-drive electric mining shovels in
2009. This is applied to its wide-track P&H 4100BOSS shovels for
oil sand mining and other soft-ground operations in 2008. ACdrive
P&H 4100XPC shovels will be introduced starting in 2010.
P&H Mining Equipment introduced a new remote health
monitoring system during 2009 to help mine operations
optimize productivity and reliability performance on their
P&H shovels. This system features powerful shovel systems
health monitoring, data trending and diagnostics tools that
help mine maintenance personnel obtain faster resolution of
machine performance issues.
Meanwhile, the Continental Crushing & Conveying
completed a new coal offloading and storage facility for the
port of Tyne, UK. The fully-integrated system can deliver and
create individual 65,000-ton stockpiles of “separated coal.”
It included system monitoring using video cameras and
stockpile height and movement monitoring. This conveyor
system sequencing and pre-start and emergency stop were
installed for safe and efficient transport of material.
BUCYRUS
Although 2009 proved to be a very difficult year for many
US based companies, the situation was not the same for
Bucyrus. It was one of the only few companies which was
able to increase both revenue as well as earning. Considering
that more than 70 percent of the sales are generated outside
US and the relative strength of the international markets, the
geographic diversity has allowed the company to weather
much of the domestic turmoil.
The market uncertainty propelled the company to reevaluate
the overall plan for 2009, and as a result, the company
was able to set up a solid base for financial year 2010. The
78%
2009 Machine sales by commodity
Coal Copper Iron ore Oil Sands Other
Source: Bucyrus & Insights Research
company decided to proactively manage the $2.5-billion
backlog the company had at the end of 2008, by trying to help
the customers to defer their expenses in the face of softening
demand for their commodities.
The company removed as much of this backlog as possible
in 2010. This levelled the revenue in 2009 and gave the company
substantial backlog support in 2010. In addition to this, strong
aftermarket activity, particular in the spare parts, allowed
Bucyrus to increase the revenue as the year progressed. The
company’s continued parts initiatives in the underground
segment has also proved effective. Thus, the revenues exceed
2008 level by 6 percent and the margins improved.
Apart from the strong market strategy, the company
acquired Terex Mining of Terex Cooperation on February 19,
2010. The acquisition has made Bucyrus the premier supplier of
mining equipment. This has allowed the company to diversify
the product basket across a broader range of commodities and
double the potential market to approximately $30 billion.
This would help the company to benefit from the strong
presence of Terex Mining in the Asia Pacific region. In addition
to this, Terex Mining has a strong presence in China, whereas
Bucyrus has absolutely no market share on a standalone basis.
With this acquisition, the company’s installed base moved up
to $40 billion from $30 billion. The size of the installed base
of surface and underground mining original equipment at
December 31, 2009 was around $20 billion, which increased
to approximately $30 billion with Terex acquisition, and $10
billion respectively.
The company’s product lines include dragline, electric
mining shovels, rotary blasthole drills, longwall systems,
room and pillar machinery and belt systems. The company’s
aftermarket services include replacement parts, maintenance,
technical advice, structural and mechanical engineering,
repairs, rebuilds, refurbishments and upgrades.
1%
3%
10%
8%
2009 Total sales by product
12%
2009 Total sales by Region
7%
4%
38%
51%
49%
18%
Aftermarket
Source: Bucyrus & Insights Research
Machines
North America Europe, Russia, India South America Australia/Asia Pacific China Africa
Source: Bucyrus & Insights Research
21%
COAL INSIGHTS 20 October 2010