The mining sector is witnessing a seismic shift, and the recent $100 million order from South32 to Sandvik for electric mining equipment at the Hermosa project in Arizona is a clear indicator of this transformation. This deal isn’t just about battery electric haul trucks; it encompasses a range of equipment, including cable bolters, loaders, and longhole drills, marking a significant milestone as the first such assets deployed in the US. This follows Sandvik’s deployment of fully autonomous Toro LH518iB battery-electric underground loaders at New Gold Inc.’s New Afton mine in Canada late last year.
Mats Eriksson, President of Sandvik Mining and Rock Solutions, underscores the strategic importance of this order: “We’re proud that Sandvik BEVs will help contribute to an increased supply of critical minerals, supporting the continued electrification of society.” This statement hits at the heart of the matter. The Hermosa project is poised to become a critical supplier of manganese and zinc, two minerals designated as essential by the US government. South32’s investment in electric equipment is not just about operational efficiency; it’s about future-proofing the mining industry in the face of growing demand for critical minerals and increasing regulatory pressure to reduce carbon footprints.
The implications of this deal are far-reaching. For one, it signals a growing trend towards electrification in mining operations. The benefits are clear: lower fuel expenses, reduced maintenance costs, and a longer equipment lifespan. These factors collectively enable a more efficient, economical, and sustainable mining operation. But the shift to electric equipment also brings with it a host of challenges. The mining industry will need to invest heavily in charging infrastructure, battery technology, and workforce training. Moreover, the reliability and performance of electric equipment in harsh mining conditions will need to be rigorously tested and proven.
The Hermosa project is expected to begin deliveries in 2026, with most deliveries projected by 2027. This timeline aligns with South32’s goal of starting production by 2027, indicating a well-coordinated effort to integrate electric equipment from the outset. This approach could set a new standard for greenfield projects, where electrification is considered from the design phase rather than as an afterthought.
The broader trend towards electric and autonomous mining equipment is being driven by several factors. Rising demand for critical minerals like nickel, lithium, and phosphates is one. The natural benefits of electrification, such as reduced emissions and lower operational costs, are another. Additionally, a persistent operator shortage is boosting demand for autonomous technology, which can help mitigate labor challenges. These combined factors are accelerating the obsolescence of traditional mining equipment and driving the adoption of new, more efficient technologies.
However, the transition to electric and autonomous mining is not without its controversies. Critics argue that the high upfront costs of electric equipment and the need for significant infrastructure investments could deter smaller mining companies from making the switch. Moreover, the environmental impact of battery production and disposal is a contentious issue that needs to be addressed. As the industry moves forward, it will be crucial to balance the benefits of electrification with the need for sustainable and responsible practices.
The Hermosa project and Sandvik’s record order are more than just a business deal; they are a testament to the mining industry’s commitment to innovation and sustainability. As more companies follow suit, we can expect to see a rapid acceleration in the adoption of electric and autonomous mining equipment. This shift will not only transform the way mining operations are conducted but also pave the way for a more sustainable and efficient future for the industry. The debate is far from over, but one thing is clear: the future of mining is electric, and it’s happening now.