Sandvik Equipment Boosts Oyu Tolgoi Underground Expansion
Sandvik is set to play a pivotal role in one of the mining industry's most significant developments with a major equipment supply contract for Rio Tinto's Oyu Tolgoi copper-gold mine in Mongolia. This strategic agreement involves the delivery of 19 specialized mining vehicles that will support the critical underground expansion phase at what is poised to become one of the world's largest copper mines.
The equipment delivery comes at a crucial time as Oyu Tolgoi accelerates its underground development – a project that will substantially increase copper production capacity to meet growing global demand for electrification in mining and renewable energy technologies.
Sandvik's Strategic Equipment Supply Agreement
Rio Tinto has selected Sandvik as its equipment partner for the underground expansion, reinforcing the long-standing relationship between the two companies. The agreement centers on providing high-capacity loading and hauling equipment essential for efficient ore extraction in challenging underground conditions.
The partnership builds on Sandvik's established track record at the site, where the manufacturer has already demonstrated reliability and performance through its existing fleet. This new contract extends Sandvik's position as the primary supplier of loading and hauling equipment at the operation.
"The Oyu Tolgoi underground project is one of the world's most significant copper developments, and we're proud to contribute to its success," said Stefan Widing, President and CEO of Sandvik. "This equipment order reflects the mine's confidence in our technology and support capabilities."
Key Equipment in the Sandvik Supply Agreement
Comprehensive Fleet Delivery Schedule
The comprehensive equipment package includes a diverse range of specialized underground mining machinery carefully selected to meet Oyu Tolgoi's operational requirements:
- 8 Toro LH410 loaders
- 7 Toro LH515i loaders
- 2 Toro LH517i loaders
- 2 Toro TH551i trucks
This equipment represents Sandvik's latest generation of underground load and haul technology, designed for efficiency and reliability in demanding mining environments. The 19-vehicle fleet will be delivered in phases beginning in October 2025 and continuing through November 2026, strategically aligned with the mine's production ramp-up schedule.
The timing of the deliveries has been carefully coordinated to ensure the equipment arrives as underground development areas become ready for production, allowing for seamless integration into the expanding operations.
Current Fleet Operations
The new equipment will join Oyu Tolgoi's existing fleet of 58 Sandvik machines currently in operation, which includes various loader models, underground trucks, and bolting equipment. This significant installed base demonstrates the mine's confidence in Sandvik's equipment performance and after-sales support capabilities.
The expansion solidifies Sandvik's position as the exclusive supplier of loaders and trucks at the operation, creating a standardized fleet that offers operational advantages:
- Consistent maintenance procedures across equipment types
- Unified operator training programs
- Streamlined parts inventory management
- Enhanced equipment availability through standardization
By maintaining fleet uniformity, Oyu Tolgoi aims to maximize operational efficiency during the critical production ramp-up phase.
Why Conventional Equipment Instead of Battery-Electric?
While the mining industry evolution is increasingly embracing electrification, Oyu Tolgoi's immediate needs require proven conventional equipment for its underground expansion. The mine has been conducting battery-electric vehicle (BEV) trials with Sandvik equipment, showing promising results, but infrastructure limitations necessitate a phased approach to technology adoption.
Steffan Herselman, Rio Tinto Oyu Tolgoi's general manager of underground operations, explained the reasoning behind the decision:
"Though continued positive results with our ongoing trials of Sandvik battery-electric vehicles are taking place, until we are operationally ready and have the required infrastructure to support a BEV fleet, the need to invest in proven, conventional underground load and haul technology is required for the ramp-up."
This practical approach highlights the real-world challenges of transitioning to new technologies while maintaining production targets. The mine's strategy involves continuing BEV trials in parallel with conventional equipment deployment, building the foundation for future electrification as infrastructure develops.
Key considerations in the equipment selection included:
- Immediate production ramp-up requirements
- Current underground infrastructure limitations
- Proven reliability of conventional equipment
- Time needed to develop charging and maintenance infrastructure
The decision represents a balanced approach that prioritizes near-term production goals while maintaining a clear pathway toward future electrification.
How This Equipment Impacts Oyu Tolgoi's Production Goals
The Sandvik equipment delivery directly supports Oyu Tolgoi's ambitious production targets. Once fully ramped up, the mine is projected to produce an average of 500,000 tonnes of copper annually from 2028 to 2036, positioning it as the world's fourth-largest copper mine.
This substantial production capacity will be achieved through the combination of:
- Open pit mining operations (ongoing since 2011)
- Underground block cave mining (sustainable production began March 2023)
- Strategic equipment deployment to maximize extraction efficiency
The significance of this production capacity extends beyond the operation itself. As Herselman noted, "The underground development of Oyu Tolgoi plays a vital role in global copper supply towards greater decarbonisation and electrification."
The timing is particularly important given copper's essential role in:
| Application Area | Copper Requirements |
|---|---|
| Electric vehicles | 2-4x more copper than conventional vehicles |
| Renewable energy systems | 5x more copper than fossil fuel generation |
| Electrification infrastructure | Significant increases in grid copper demand |
This positions Oyu Tolgoi as a strategically important supplier in the global transition to low-carbon technologies, with the Sandvik equipment forming a critical component of the production chain.
Oyu Tolgoi Mine: Background and Significance
Ownership Structure and Development Timeline
Oyu Tolgoi represents one of the mining industry's most significant partnerships between a multinational corporation and a national government. The ownership structure reflects this collaboration:
- Rio Tinto: 66% ownership (operational control)
- Mongolian Government: 34% ownership
The mine's development has progressed through several key milestones:
- 2011: Open pit operations commenced
- March 2023: Sustainable underground production began
- 2025-2026: Current underground expansion and equipment deployment
- 2028: Projected achievement of full production capacity
This phased development approach has allowed for the careful expansion of operations while managing the technical challenges of transitioning from open pit to underground mining methods.
Resource Significance
Oyu Tolgoi stands as one of the world's largest known copper-gold deposits, with reserves that place it among the most significant undeveloped copper resources globally. The deposit's scale and grade make it particularly valuable in the context of declining global copper ore grades and increasing demand.
The mine's strategic importance is multifaceted:
- For global supply chains: A major new source of copper during a projected supply deficit
- For Mongolia's economy: A cornerstone development representing approximately one-third of the country's GDP when fully operational
- For Rio Tinto's portfolio: A key asset in diversifying beyond traditional iron ore operations
The underground expansion represents a transformative phase that will unlock the majority of the deposit's value, with higher-grade ore bodies accessed through block cave mining techniques.
How Underground Mining Equipment Supports Block Cave Operations
The specialized Sandvik equipment ordered for Oyu Tolgoi is designed specifically to meet the unique challenges of block cave mining, a sophisticated underground mines engineering method that involves undercutting an ore body to cause it to collapse under its own weight.
Technical Requirements for Efficient Block Cave Mining
In block cave operations, equipment reliability and production capacity are paramount, as the mining system depends on continuous material flow. The Sandvik fleet addresses these requirements through:
- High-capacity loaders: The Toro LH series loaders offer payload capacities ranging from 10 to 17 tonnes, providing the throughput needed for large-scale operations
- Robust underground trucks: The Toro TH551i trucks feature 51-tonne payload capacity, designed for efficient ore transport through development drives
- Intelligent systems: The "i" series equipment incorporates automation-ready technology for potential future implementation of autonomous operations
- Durability engineering: Equipment designed specifically for the challenging conditions of underground hard rock mining
The equipment selection reflects a careful balance between capacity, maneuverability, and reliability – all essential factors in maintaining consistent production in block cave operations.
Operational Efficiency Considerations
The standardization on Sandvik equipment across the operation provides several operational advantages that are particularly valuable in block cave mining:
- Consistent operator interfaces reduce training requirements and improve productivity
- Unified maintenance procedures maximize equipment availability
- Simplified parts inventory management reduces downtime
- Enhanced fleet reliability through standardization supports continuous production
These efficiency factors are especially important in block cave mining, where production interruptions can have cascading effects on the entire mining system.
Future Technology Transition Potential
While the current equipment order focuses on conventional diesel-powered machinery, Oyu Tolgoi's ongoing BEV trials indicate a clear direction for future fleet evolution. The mine appears to be following a strategic pathway toward electrification:
- Current phase: Deployment of proven conventional equipment to support immediate production ramp-up
- Infrastructure development: Parallel construction of power distribution, charging systems, and maintenance facilities to support electric fleet
- Gradual transition: Phased introduction of battery-electric vehicles in specific mine areas as infrastructure and operational readiness improve
- Long-term transformation: Potential evolution toward a predominantly electric underground fleet as equipment reaches replacement age
This measured approach aligns with industry best practices for technology transitions in critical production environments, balancing innovation with operational stability.
Key factors that will influence the pace of this transition include:
- Development of mine-wide electrical infrastructure
- Advancements in battery technology and charging systems
- Operational performance of BEVs in trial applications
- Economic factors including diesel costs and carbon pricing
Herselman's comments suggest that the mine recognizes the benefits of electrification but is taking a pragmatic approach to implementation, ensuring that production targets remain the priority while building toward a more sustainable future operation.
FAQ: Oyu Tolgoi Underground Expansion
What makes Oyu Tolgoi significant in the global copper market?
Oyu Tolgoi is projected to become the world's fourth-largest copper mine, producing approximately 500,000 tonnes of copper annually from 2028 to 2036. This production capacity represents a substantial contribution to global copper supply at a time when demand is increasing for electrification and renewable energy technologies. The mine's scale, combined with the relatively high grade of its underground resources, positions it as a strategically important source in a market facing potential supply constraints.
Why is Sandvik providing conventional equipment rather than battery-electric vehicles?
While Oyu Tolgoi is conducting promising trials with Sandvik battery-electric vehicles, the mine requires proven conventional technology for immediate ramp-up needs. As explained by Steffan Herselman, this decision reflects the current infrastructure limitations and operational readiness factors. The conventional equipment provides reliability and performance certainty during the critical production ramp-up phase, while the mine continues to develop the necessary infrastructure to support a future transition to battery-electric vehicles.
How does the underground development complement the existing operation?
The underground expansion at Oyu Tolgoi accesses higher-grade ore bodies that lie beneath the current open pit operation. Using block cave mining methods, the underground development will extract ore from depths where open pit mining would be economically impractical. This complementary approach allows for:
- Continued production from the open pit while underground operations ramp up
- Access to higher-grade material that improves the overall economic profile
- Extension of the mine's operational lifespan
- Significant increases in total copper production capacity
The integration of these two mining methods optimizes the extraction of the deposit's resources while managing capital efficiency.
What is the timeline for equipment delivery?
The 19 Sandvik machines will be delivered in phases beginning in October 2025 and continuing through November 2026. This phased delivery schedule aligns with the mine's production ramp-up plan, ensuring that equipment arrives as underground development areas become ready for production. The timeline represents a carefully coordinated approach to fleet expansion that supports the mine's overall production goals while managing capital deployment efficiently.
Mining Technology and Sustainability Considerations
Beyond the immediate equipment delivery, the Oyu Tolgoi expansion highlights several important trends in modern mine planning. The project demonstrates the industry's evolution toward more technologically advanced and environmentally conscious practices, even while utilizing conventional equipment in the near term.
Key sustainability considerations include:
- Energy efficiency improvements: Even conventional diesel equipment incorporates significant efficiency advancements compared to previous generations
- Ventilation requirements: Equipment selection impacts underground ventilation needs and associated energy consumption
- Future retrofit potential: Equipment designed with potential pathways for future technology upgrades
- Lifecycle planning: Comprehensive approach to equipment utilization, maintenance, and eventual replacement
These factors illustrate how even conventional mining equipment decisions now incorporate long-term sustainability considerations as part of operational planning.
Economic Implications for Mongolia
The expansion of Oyu Tolgoi represents more than just a mining development; it stands as a cornerstone of Mongolia's economic future. The project's scale and long-term production profile will generate significant benefits:
- Employment opportunities: Creation of thousands of direct and indirect jobs
- Skills development: Training and capability building for the local workforce
- Supply chain development: Growth of local businesses supporting the operation
- Tax and royalty revenue: Substantial contributions to government income
The equipment delivery marks a tangible step in realizing these economic benefits, as it enables the production ramp-up that will ultimately generate the projected returns for both Rio Tinto and the Mongolian government.
As Oyu Tolgoi continues its transformation into one of the world's premier copper investment insights, the Sandvik equipment delivery represents not just a transaction but a critical building block in a project of national and global significance. According to mining.com, Sandvik's AutoMine-equipped LHDs have already been helping Oyu Tolgoi maximize productivity since block cave production began.
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