DISTRIBUTION DEAL CREATING SYNERGIES IN CENTRAL ASIA

As far as mineral reserves go, Kazakhstan is in the top twenty in the world, and mining comprises almost one-third of the country’s export earnings. No wonder then that the competition in the sales of all mining-related goods, including drilling tools, is very tough. Robit secured a distribution deal with a key player in the region.

As a major global exporter of minerals, Kazakhstan benefits from its central geographical location between Europe and Asia. This is also reflected in the name of the largest company supplying machinery and equipment for mining and construction in the area: Eurasian Machinery LLP.

With more than 600 employees, Eurasian Machinery provides customers with high-quality technical services through ten centers in Kazakhstan and Kyrgyzstan. Besides being the official distributor of Hitachi Construction Machinery – their spearhead product line – they also supply the industry with machinery and equipment from a host of other high prestige global brands. As of August 2021, these include Robit.

George Apostolopoulos, Robit’s VP, Global Sales, is thoroughly familiar with the Central Asian market and sees great synergies for Robit in the exclusive distributor agreement with Eurasian Machinery.

“Eurasian Machinery have a strong reputation in the Kazakh market. They have done an excellent job with the Hitachi Construction Machinery brand and have placed themselves among the preferred suppliers for the country’s mining industry. They are present with equipment and service contracts in most of the mines in Kazakhstan and Kyrgyzstan”, George says.

“Customer satisfaction is driving their efforts and they are providing high-quality services to the industry. A high-tech Component Repair Center in Karaganda serves the purpose very well.”

“This is a very significant deal for Robit as the Kazakh mining market is among the biggest in the world. It’s the 2nd largest within our East sales area after Russia. It could provide significant leverage for our sales; big opportunities exist for our Top Hammer products both underground and surface, as well as our Down the Hole offering.”

“There is some tough competition in this market not only from the traditional players but also from low-cost suppliers. This makes it particularly important for us to have a renowned and well-represented distributor in this market”, George concludes.

Picture: A view over the steppes from a chalk mountain in northern Kazakhstan.

NEW AFTON SWITCHED BACK TO ROBIT TOP HAMMER TOOLS

Two branches of the Thompson River run through the ruggedly picturesque landscapes of south-central British Columbia, to meet at the eastern end of Kamloops Lake. The town of Kamloops was founded there as a fur trading post 200 years ago. Today, Kamloops is a thriving city with rich copper and gold deposits nearby.

Afton mine, situated 10 km west of Kamloops, was originally an open-pit gold and copper mine, in operation throughout the 1980s and 90s. New Gold,a Canadian mining company, acquired the mine and restarted production in 2012, now as an underground mine called New Afton. Last year, New Afton produced 64,000 ounces (some 1,800 kg) of gold and about
33,000 tons of copper.

New Gold had been using Robit’s Top Hammer (TH) tools in New Afton for years. However, in early 2019, through ownership changes at the supplier, New Afton switched to another brand of TH consumables. Over the course of the year, it became evident that the performance of the TH Tools did not meet the Mines expectations. In 2020, Ryley Renneberg and Cody
MacLeod from the Sales Division of Pinnacle Drilling Products (Pinnacle), Robit’s Canadian distributor, decided it was an opportune time to reach out to New Gold.

“We arranged an in-person meeting with New Gold’s production mine manager. We listened to their problems with their new brand of TH tooling and discussed how we might be able to help out. New Gold had been happy with Robit before and they knew the production performance well, so this really helped progress things forward. It turned out to be the start of a great relationship between Pinnacle and New Gold”, Ryley reminisces.

“We reassured we could have a seamless transition and were able to support New Gold through the ramp-up period, not to mention this pandemic situation and the global supply chain crisis.”

For Robit, the first purchase order in the spring of 2021 meant a need for a serious production ramp-up of TH tools.

Says Mikko Vuojolainen, Robit’s Vice President, North America: “It’s always a critical period when a customer switches supplier. The new supplier must be able to deliver 100% availability. In this case, our TH production lines were already fully booked so we needed to get creative. We divided the products into two groups: those we can start delivering two months post order, and those we can start delivering four months post order. It worked out perfectly.”

Since August 2021, New Afton is back to using Robit’s TH tools in their underground operations. The New Afton deal can also help propel the Pinnacle-Robit business partnership forward.

“It brings us leverage into the mining industry within North America. I believe it’s going to open many other opportunities for us to challenge the ‘big three’ in the market”, says Ryley Renneberg.

Picture: Kamloops Lake on a frosty winter day.

World’s #1 copper producer chooses Robit

Copper mining has been a key driver of Chile’s economy for centuries. Among the country’s mining companies, the state-owned Codelco is the crown jewel. It’s the world’s leading copper producer with immense mineral reserves, and a driving force for the entire country’s development.

Codelco’s major mining sites include El Teniente, “the Lieutenant”, the world’s largest underground copper mine which has been in operation for 200 years and currently has a capacity of 400,000 tonnes.

The second largest mine is the century-old Chuquicamata, or “Chuqui”, as the locals call it. Since its open pit operations had grown increasingly uneconomic over the last years, Codelco made a huge investment switching to underground cave mining in 2019. Chuqui’s current capacity is 377,000 tonnes. Andina, the third largest mine nested at the dizzying height of 3,700–4,200 metres on the Andes, consists of the Rio Blanco underground mine and the Sur Sur open pit.

As of late 2020, Robit will be the main supplier of Top Hammer and Down-the-Hole drilling tools for Codelco’s three largest mines. This is a result of decisive cooperation between Robit and their Chilean distributor Full Safety.

Founded in 2010, Full Safety had focused on dealing in clothes and footwear for special target groups such as armed forces, law enforcement, health professionals – and the mining industry. The last-mentioned seemed like a promising sector for new business opportunities, and in 2015 they contacted Robit.

“We were looking for new strategies, and we met Robit at the right time. After consulting with them we restructured our business model over the next few years by opening a new office and recruiting sales personnel as well as drillmasters for field support. In turn, Robit offered us training and technical-commercial support on client visits, and participated in mining fairs with us”, recounts Cesar Cornejo, General Manager of Full Safety.

Getting a foot in the door of a global giant like Codelco is not a simple thing. Despite persistent efforts, discussions on arranging a comparison test to prove the quality of Robit’s consumables led nowhere. As a change of plan, Full Safety approached Astaldi, the main contractor at El Teniente – and they agreed to a head-to-head test between Robit and their then-current brands.

The February 2020 tests, involving bits, drifter rods and couplings, did not disappoint: Robit outperformed the competition by some 30% in terms of lifetime and penetration rate. A letter of certification by Astaldi opened the door to participate in a tender for Codelco. Full Safety and José Antonio Rodríguez, Sales Manager for Robit SAC, then carefully fine-tuned an offer that proved the most competitive.

This major achievement, however, is just the tip of the iceberg. The Chilean mining sector has vast growth potential for the Robit-Full Safety partnership, and several other tenders and product tests are already underway across the country.

Picture from left: Alberto Castillo (Sales Manager, Full Safety),Rafael Rojas (Drillmaster, Full Safety), José Antonio Rodríguez (Sales Manager, Robit), and Cesar Cornejo (General Manager, Full Safety).

SUCCESSFUL TESTS CONDUCTED WITH ROBIT CONSUMABLES IN CHILE

Full Safety, the distributor of Robit Group, carried out a successful test with Robit consumables at El Teniente copper mine in Machalí, Chile. 

​The test was conducted for Jumbo drilling on a Tamrock Axera Jumbo with HLX5 drifter by using the following Robit consumables: R32x45S1 bits, HEX35 C38-R32 14′ drifter rod and coupling C38-C38.

The bits averaged out 315 meters without grinding. As for the drifter rod and couplings averaged out 1 724 meters. The meterage is always relative to the rock, the conditions of machinery and operator skills including pressure management.

Robit Part Numb​​er Description Meters
04-132-045-3805 HTG 32R45S 315
06D-07-0891 M/M Drifter Rod C38-HEX35-R32 4305 1 724
06E-07-0497 Coupling C38 D55 SB 1 724

 

As a result of the successful tests, Robit received a confirmation from the site contractor, Astaldi, that Robit consumables were superior compared to the other well-known brands’ consumables.

El Teniente is an underground copper mine in the Chilean commune of Machalí in Cachapoal Province, Libertador General Bernardo O’Higgins Region, near the town of Sewell, 2 300 meters above mean sea level in the Andes.

Mining at El Teniente is reported to have started as early as 1819. Today, El Teniente is operated by the state-owned copper mining company CODELCO. With over 3 000 kilometers of underground drifts, El Teniente is reported as the world’s largest underground copper mine. ​

Excellent job from our Robit SAC colleagues, and our distributor in Chile!