Challenges and Developments For Manufacturers of Diesel-Powered Underground Mining Equipment

For 30 years, mining operations worldwide have used diesel-powered mobile machinery to mechanize the mining process. South African diamond mines and some US coal mines have 15 years of experience with this type of equipment. During the past eight years, most of the new gold production from underground mines outside of South Africa has been mined by bulk methods using diesel-powered machinery. The underground mining industry, then, has secured and institutionalized the larger benefits created by a technology that was new to mining engineers in the early 1960s. The state of mechanized diesel-powered underground mining is now mature. To survive, though, mine operators -regardless of commodity mined and position in the commodity cycle-must maximize the benefits of diesel technology. The benefits gained in the next seven to 10 years will be realized by tweaking this component, fine tuning that piece of machinery and demanding optimum use of the technology. Manufacturers of diesel-powered machinery share the condition of maturity with their customers. Larger scale and easy market development have occurred. Much has been made of the potential size of the US coal segment as well as markets in China and the Confederation of Independent States (CIS). Indeed, opportunities do exist in these regions. However, these market development opportunities do not imply the market size trend line remains unchanged. They simply mean the potential market size is within reach. In fact, the market size for the product is shrinking.