VDMA Mining

The mining equipment industry in Germany anticipates a decline in sales for 2020 of around 10 to 15 %. However, the industry is optimistic about the future because only state-of-the-art mining technology will be able to ensure the raw materials required for climate protection and digitisation.

The importance of the mining industry in this context and also the machine manufacturers is also highlighted by the Chairman of VDMA Mining, Michael Schulte Strathaus, during the web annual press conference 2020 at the Zollverein Coal Mine Industrial Complex in the city of Essen/Germany. Due to the pandemic nobody was able to predict at this time how 2021 will go but Schulte Strathaus feels certain that incoming orders and sales will develop positively in the future. “We make sure that raw materials can be mined and processed. The mining equipment is becoming increasingly environmentally friendly and making a contribution to climate change, e. g., with alternative drives and lower energy consumption in the mines”, he confirmed.

Production and sales developed very well in 2018 and 2019 for the mining companies in Germany, contrary to expectation new business and therefore incoming orders fell sharply at the end of 2019. There were also trade conflicts, the crisis in the Middle East and Brexit, which overpowered the economic concerns at the end of 2019. At that time if the industry was expecting restrained development with stagnating sales at most, the corona pandemic also put the mining industry under pressure.

In the course of 2020, shaped by the pandemic, the companies managed to once again close the disrupted supply chains and organise production in a Covid-19-compliant manner. Communication with customers abroad was mostly changed to web-based processes. At the end of the summer the industry sent very different signals of almost unmodified sales plans and expectations to a decline in sales of 30 % or more. On the whole, the industry anticipates a decline in sales for 2020 of around 10 to 15 %. Sales will therefore stabilise between 4 and 4.5 bn €.

Some of the biggest export markets include EU countries, the USA, Russia and China. Australia surprised this year and managed to take second place among the individual markets, ahead of China and Russia. With exports of 96 %, the manufacturers in Germany are dependent on international business (Figure 1).

Within the EU mining production has remained stable over the last 20 years. In the summer the EU Commission announced that it wanted to secure Europe’s supply with critical raw materials. For this purpose, the procurement of raw materials in the EU will be intensified.

In the USA Schulte Strathaus believes mining is on the verge of radical changes. “With Joe Biden the country will commit to climate neutrality and large shares of the announced funds of around 2,000 bn US$ can be channelled to the development of clean energy technologies. This brings opportunities for our mining equipment manufacturers in Germany. However, they must make more of an effort to exploit new markets or expand existing sales territories”, says the Chairman.

Following a very successful year in 2019 with exports of around 97 M €, supplies to Australia fell in the first eight months of this year to 68.8 M €. Schulte Strathaus is confident that Australian customers will once again have more interest in mining technology from Germany from 2021 as the reluctance in the development of new supplier relationships can clearly be traced back to the current corona crisis.

Russia is currently a very difficult market due to the sanctions, the political disagreements and the weak ruble. Travel restrictions and the uncertainty that supplies from Germany could be stopped at any time make the business relationships too risky for Russian companies.

In China coal mining is far ahead of the Chinese mining industry. While the country recovers from the corona pandemic, the mining sector achieved sales of around 309 bn € and profits of approximately 30 bn € in the first eight months of 2020. The manufacturers from Germany could not benefit from this. Up to August exports had only reached a value of 67.7 M €, which represents a decline of 45 %. Nevertheless, Schulte Strathaus envisages good opportunities for positive development because China focuses on digitisation and unmanned operation in the mines. This is where mining technology from Germany can be particularly helpful.

Apart from all technology, for the manufacturers of mining equipment the focus is increasingly on the social benefits. “With our machines we guarantee a climate-friendly and secure supply with high-tech raw materials because without this there is no climate change”, confirmed Schulte Strathaus. (VDMA/Si.)

We will have to get used to it. The traditional German miners’ greeting “Glückauf!” will soon be a thing of the past. Mining production will be fully automated in the near future: virtual construction site plans and start-ups, automated work processes, machine-to-machine communications, augmented reality and virtual reality. Digitisation and automation should make our working life easier, make it easier to anticipate faults, make processes more efficient and new drives should make mining operations environmentally friendly. The VDMA Mining Technology Days from 7th to 10th September 2020, which were held as an online conference, provided comprehensive information about the trends and impressions of what the future in mining will look like.

Collecting and evaluating data is a topic that concerns us all, key word: Big Data. But it is not enough to just collect data. Only if you are able to evaluate the data and derive actions and forecasts from it is it of use to the mining companies and the employees on site. There is still a long way to go before mobile machines can operate autonomously and make their own decisions, let alone learn independently. The RWTH Aachen University is currently conducting research in the Advanced Mining Technologies (AMT) Department. The scientists have equipped a mobile device with the corresponding technology so that, e. g., it finds its way through a cave system without natural light, can detect cracks in the rock using infrared thermography and distinguish between coal and surrounding rock by means of acoustic signals. In this test setup it is initially about determining states. Another task is to develop interfaces which forward the results to the machines involved in the work process. Once this technology is fully developed, the miner no longer has to be present in inaccessible locations.

Yet it is not only the effects on the people that play a role in the research, but also the geological conditions in the deposits. The hunger for raw materials has been growing for decades, as a result the best sources have already been exploited and the ore grades are worsening. Irregular geological conditions, decreasing mineralisation and thin layers of deposits are obstacles which mining companies have to overcome. The smaller the companies are, the more difficult this task is. The Institute of Mining and Special Civil Engineering at the Freiberg University of Technology and Mining Academy researches solutions for smaller and medium-sized companies, e. g., at a central mine control station, with a test field for Through-the-Earth communication (TTE). One conclusion is that there is no standard solution for the data transfer, but every mine requires a specific network configuration with small intelligent devices. Depending on the range, the transfer rate and the medium, the scientists have developed a manufacturer-independent SCADA system – MoSC –, which works with .NET Core, a Firebird database, OPC UA and a web-based front end with Angular and Web GL. All elements are flexible, freely accessible and platform-independent. The central mine control station can be extended with M2M communication. The research mine Reiche Zeche works with WLAN optimisation, whereby the signal is supplied to two locations at the same time. The system monitors target-actual values, visualises processes, guarantees a safe environment and utilises the machines better.

Digitisation is also driving the industry with its product developments. Assistance systems and semi- or fully automated machines should guarantee safety, speed, continuity, information and, of course, productivity. Geostatistics alone delivers a continuously up-to-date deposit model with data models recalculated on a daily basis. This saves core drilling and chemical analyses. Radio, automated machines and systems and digital central mine control stations help the operations manager to control the mining. The training and educational profile in mining has now completely changed.

Despite everything, mining remains a “tough” business. The machines need powerful drives, which are environmentally friendly at the same time. The climate targets set standards. Combustion engine out and battery in – unfortunately it is not that simple. Fire and explosion protection, the durability and operational capability of the battery systems, the underground operation site, all these are points that must be considered. One way to not completely get rid of the combustion engine for suitable applications is to combine it with hydrogen, which has been manufactured using renewable energies. The scientists at the Institute of Internal Combustion Engines and Thermodynamics at the Graz University of Technology are researching options (Figure 1). They were able to ascertain that hydrogen concepts have a full load and efficiency potential comparable to the diesel engine with zero CO₂ emissions. The technology is fully developed and affordable. Such engines could mainly be used in distribution vehicles.

Paul Althaus, Chairman of the Research and Technology Steering Group, summarises the VDMA Mining Technology Days as follows: “The companies and research institutes who gave us an insight into their developments over the four days clearly point out that fully digitised mining will soon be a reality. We must fully adapt in our operations and especially in the training of our employees. Then we can all benefit.”

With an export rate of 96 %, mining technology is one of the most export-intensive branches of German mechanical engineering. VDMA Mining represents well-known, mainly medium-sized companies from the areas mining above and below ground, processing technology, as well as consulting, research and development. 145 companies are members of VDMA Mining. They account for over 90 % of the total sales volume.
(VDMA/Si.)

In contrast to the general trend, manufacturers of mining machinery in Germany are expecting 2019 to have been one of the best years on record. The German Engineering Federation (VDMA), Frankfurt am Main/Germany, is anticipating an increase in turnover of 38 % that would amount to around 5 bn €. This revenue should at the very least be maintained in 2020.

In Germany mining machinery manufacturers are expected to increase their turnover by 10 % to 110 M €. As Michael Schulte Strathaus (Figure 1), the chair of the VDMA’s mining division, remarked during the annual press conference at the Zollverein mine in Essen, the decision to phase out power generation from lignite and the declining opportunities to continue the promotion of domestic raw materials has resulted in the domestic market becoming “something of a marginal phenomenon”. He pointed out the increasing difficulty of land-use planning as well as the excess planning of deposits further contributed to the issue. For the year 2020, the VDMA is therefore assuming only slight changes in revenue at most.

In the case of business conducted internationally, however, the outlook is far more satisfying. An increase in revenue of 38 % in 2019 has resulted in a total calculation of approximately 4.9 bn €. Consequently, the export rate amounts to 98 %. For 2020, the sector anticipates that it will at the very least be able to maintain its revenue. According to Schulte Strathaus, detrimental factors have included the trade dispute between the USA and China, a repeated postponement of Brexit and ongoing tensions in the Middle East. In the medium and long term, however, the sector expects that demand will continue to increase. In this regard, the chair referred to calculations from the OECD, according to which the world population will have increased to over 9 bn people by 2050 and demand for resources will have doubled by 2060.

In order to meet the demands of the digital age, mining machinery manufacturers are increasingly counting on machines and systems that can be deployed in the hard-rock mining sector. In the words of Schulte Strathaus: “It is precisely within this area that a number of metals are being obtained for the digital future. Without them – and consequently, without our products too – digitalisation would simply not be possible.” He emphasised that, while data and energy may form the foundation for the future, there would be no energy in the first place without raw materials.

Issues of sustainability and safety are also at the very top of the agenda for companies supplying the mining sector. Particularly when it comes to safety, German companies are “global leaders”, as Schulte Strathaus puts it. He remarked that there was hardly any foreign manufacturer “that can hold a candle to us in this regard”, and that not least for this reason are mining machines that bear the “Made in Germany” quality seal in high demand worldwide.

The chair noted that there was a growing desire within the sector for politicians responsible for this area to make more of an effort to engage with the African continent. Only this way, he claimed, would the sector be able to pit itself against China. Schulte Strathaus also lamented the fact that an increasing number of investors were pulling their funding out of coal projects. He felt that it was not only his sector that was suffering as a result, but also the European machine engineering industry as a whole.

The chair described the skills shortage in his sector as “dramatic”. He believes that skilled tradespeople need to feel that they are integral to society, rather than being ostracised – as he claims is increasingly the case today. He remarked that getting every single student to sit the Abitur, the standard German school leaving qualification to prepare students for university, would not “help us any further”.

In 2019, the largest sales market was the EU. According to a preliminary estimate, the 28 member states accounted for 25 % of exports. This figure amounted to just over 27 % in 2018. France and the UK were the driving forces behind this. For 2020, a further slight increase in exports to EU countries is expected at the very least.

The second largest export country, with an anticipated proportion of 12 % of all exports, is the USA. In 2018, this figure still amounted to 15 %. According to Schulte Strathaus, a shift in the local energy policies is responsible for this. He remarks that the significance of coal as an energy source goes back a long way. However, since the country is making considerable efforts to bolster the mining sector overall, he reckons that there is “cautious optimism” that exports to the USA will at least be able to be maintained in 2020.

The third largest export country is China. The sector has calculated that just over 10 % of exports went to the People’s Republic of China in 2019. In 2018, this figure was just under 10 %. Admittedly, China’s imports of mining technology have been on a downward trend since 2012. Yet this has only had a limited impact on mining technology made in Germany, asserts Schulte Strathaus. However, he categorised the sales development in the medium term as “rather uncertain”, and many suppliers feel increasingly confronted with rather opaque approval procedures for certain machines and systems.

Chinese mining machinery manufacturers have increasingly avoided their domestic market, which is saturated in many areas, and instead intensified competition on international markets. This is apparently not uncommon with state-subsidised dumping prices, which German manufacturers can only counter through the quality of their products and services. For 2020, it is assumed that the export level will at least be able to be maintained.

Other large sales regions include Russia, Australia, the Middle East and Latin America. (VDMA/Si.)

Worldwide demand for mining technology from Germany remains high. In the first half of 2019, orders received rose by 35 % and sales by 40 % in comparison with the previous year. The upward trend in this industry therefore continues. After the difficult period from 2012 to 2017, global business has been picking up for the past two years. In 2018, the approximately 150 companies in the sector achieved sales of approximately 3.5 bn €, of which around 95 % was achieved in other countries. A further increase in sales of approximately 15 % is expected for the current year. “It is difficult to predict future development, however, due to the loss of global political leadership – we will have to take things as they come and react flexibly,” says Michael Schulte Strathaus, managing partner of F. E. Schulte Strathaus GmbH & Co. KG in Werl/Germany and Chairman of the Board of VDMA Mining (Figure 1).

VDMA Mining has launched the “Roadmap 2035” in order to ensure the global competitiveness of German mining technology. In this, the manufacturers in the association discuss future issues and jointly develop solutions for these. They relate, e. g., to the use of data streams, the definition of data interfaces and the topic of data security. Further topics to be covered in the Roadmap 2035 include guaranteeing a very high technical level and innovation leadership. Under these headings, aspects such as performance, availability, ease of maintenance and durability of machinery are discussed, together with the problem-solving capability which can be assured through staff training and expertise. The Roadmap therefore also covers questions of recruitment of young talent, as well as commercial and academic education.

The sector has coped well with the end of the German coal mining industry last year. Companies have used the time between the decision to exit and the closure of the last coal mine in Germany well, and have acquired increased numbers of new customers abroad. This year, the largest individual markets – besides the Eurozone – are the USA, China, Australia and Russia. These countries are also amongst the world’s largest coal producers. In 2018, they produced more than 7 bn t of coal, which they primarily used to supply their own power.

There are also prospects for the sector in the growing demand for raw materials for the energy transition and future technologies. Corresponding investments from mining companies in extraction and processing technologies for lithium, cobalt, tantalum or rare earths and neodymium are reflected in mining machinery manufacturers’ exports.

There is also investment in new mining projects for the extraction of lithium in Germany, primarily in Saxony. The Zinnwald Lithium Project, south of Dresden, is planning to mine 5,100 t/a of lithium and announced in June that a feasibility study had confirmed this plan. In Sadisdorf, also located to the south of Dresden, the Australian mining and technology company Lithium Australia is planning to mine lithium in order to service the growing demand for this raw material in the electromobility sector. (VDMA/Si.)

On 14th and 15th November 2017, experts of science and industry joined together with representatives of relevant associations in the Tivoli centre, Aachen/Germany, to discuss the latest on the digitalisation of mining. The Smart Mining Conference was organised by the Institute for Advanced Mining Technologies (AMT) of the RWTH Aachen University together with the Mining Association of the German Engineering Foundation (VDMA) and DMT GmbH & Co. KG.

This was the second event exploring the subject of mining in the era of Industry 4.0, and this time the 200-person capacity was filled. The organiser concluded that attendance was extremely high for all the presentations – a clear sign that the event is extremely topical.

Forum Bergbau 4.0 has been held every other year since 2015. The event is designed to facilitate conversation among key figures from industry, research and relevant associations, enabling them to exchange ideas on the growing use of digital technologies in mining. Digitalisation is considered at an international level and from a range of different perspectives.

This year, the 24 presentations looked at the cycle of data in mining and how it can be processed securely in the age of Industry 4.0: Topics included ruggedised sensors, i. e. which data can withstand the conditions of mines, how to process data securely in the big data era, and ensuring communication between machines is standardized and secure. The organisers set out to establish connections and raise awareness for the necessary interfaces. This is firstly because there is still a high degree of variation in terms of the technology available internationally, and secondly because mining operations cannot be automated until communication is standardised.

The mining industry is unanimous in its goal to realise a future of autonomous mining. The main benefits of this would be that humans need no longer work below ground in dangerous locations and the physical impact on mines would be significantly reduced – i. e. minimising the repercussions for people and the environment. These questions are also fundamentally important to the future existence of mining, e. g. in marine mining or extraterrestrial mining.

To make the forum more internationally accessible, the presentations on both days were conducted in German and in English. Guests and speakers from 16 different nations swapped notes on the latest developments in mining technology in their respective countries and made new contacts during the evening event. A major highlight of the forum was the opening address by Erich Schnake, Deputy Minister for Mining in the Republic of Chile. The German-Chilean Raw Materials Forum was held in the same conference centre shortly before, which meant Forum Bergbau 4.0 was able to secure a prestigious delegation of speakers from Chile.

Besides giving participants the opportunity to exchange ideas, Forum Bergbau 4.0 also sets out to promote and develop Germany’s international reputation as a leader in technological innovation (Figure 1).

All the organising parties deemed the event such a success that they are already discussing plans for the next Forum Bergbau 4.0 in 2019. These include the possibility of additional formats, such as a company-wide app contest. There are also plans to give young innovatives a platform to showcase the topic of innovation in mining. Other topics on the agenda include shared standards, IT security and legal questions surrounding data ownership.

In general, however, the organisers painted an extremely positive picture in their closing speech, describing those affected by digitalisation as significantly more responsive and embracing than they had been two years earlier. In short, digitalisation is now an everyday feature of the mining industry. (RWTH/Si.)

Mining machinery manufacturers in Germany have mastered the turnaround. After revenues continued to decline for four consecutive years, the sector is now expecting to break even in 2017.

Based on the figures for the first nine months of the year, the mining equipment manufacturers are expecting to at least repeat their turnover of 2.95 bn € from 2016, as the Chairman of VDMA Mining, Michael Schulte Strathaus (Figure 1), reported. Revenue from foreign markets is expected to grow by 1 % to 2.84 bn €. Revenue from the domestic market is expected to fall by 15 % to 110 m €.

This optimism is based on the increase in incoming orders from abroad since the fourth quarter last year, according to Schulte Strathaus. In the first nine months alone, orders increased by 38 % compared to the previous year. In the sector, it is not unusual that a year or more passes between incoming orders and delivery, which is why turnover is expected to grow in 2018 and 2019. Schulte Strathaus also explained that the companies’ presence on almost all world markets allows them to balance even significant fluctuations. At the moment, 96 % of turnover comes from abroad and about 11,600 staff are employed.

According to Schulte Strathaus, the decrease in domestic business to 110 m € is a byproduct of the “general uncertainty” in the German raw material sector which includes the closing of the last two hard coal mines; lignite is also facing an “uncertain future”. Policymakers’ demand for a quick withdrawal from coal-based electricity places a burden on the sector. Germany operates an energy policy that is fragmented, unpredictable and, from an energy-economy perspective, not always comprehensible. Although there is no ready substitute at hand, the energy supply safeguarded by lignite is being undermined. Schulte Strathaus referred to the statements of experts who have long warned about the incalculable risks for network stability and thus power supply throughout the country. Nonetheless, the sector is hoping to maintain its domestic turnover in the coming year. In the medium and long term, however, results are expected to continue to drop.

The largest export region for mining equipment is the EU. In the first nine months of 2017, approximately 28 % of exports went to EU countries, which is 7 % more than the year before. Conveyor technology, safety systems and accessories, in particular were sold. Business is also going well for tunnel construction. Turnover is expected to remain the same or even grow in 2018. About 15 % of exports went to the second largest country of exportation, the USA. This represents an increase of 5 % compared to the previous year. According to Schulte Strathaus, US President Donald Trump has for the most part upheld his promise of not reducing coal extraction or closing coal mines. And jobs were also preserved. The sector anticipates a further growth in exports to the USA in the year ahead.

Exports to China and Russia also increased. Mining technology “Made in Germany” remains popular in China according to the Chair of the VDMA trade association. The focus remains on high-performance mines. Small, unsafe and inefficient mines need to be closed and replaced by new and larger operations. A backlog was created in Russia that could be partially realized this year. Manufacturers expect their business to improve in both countries. (VDMA/Si.)

VDMA Mining elected its new board of directors at its general meeting on 23rd November 2017. Michael Schulte Strathaus, F. E. Schulte Strathaus GmbH & Co. KG, Werl/Germany, was endorsed as Chairman. The additional board members: Honorary Chairman Peter Jochums, Hauhinco Maschinenfabrik G. Hausherr, Jochums GmbH & Co. KG, Sprockhövel/Germany, Corinna Both, CFT GmbH, Gladbeck/Germany, Torsten Gerlach, thyssenkrupp Industrial Solutions AG, Essen/Germany, Heike Gothe, Gothe & Co., Mülheim/Germany, Holger Hoffmann, Hauhinco Maschinenfabrik G. Hausherr, Jochums GmbH & Co. KG, Sprockhövel/Germany, Wolfgang Paus, Hermann Paus Maschinenfabrik GmbH, Emsbüren/Germany, Karl-Heinz Rieser, Eickhoff Bergbautechnik GmbH, Bochum/Germany, Klaus Ukens, Caterpillar Global Mining HMS, Dortmund/Germany, Norbert Walther, Komatsu Mining Germany GmbH, Düsseldorf/Germany, Thomas Ziller, Nilos GmbH & Co. KG, Hilden/Germany.

Mining machinery manufacturers from Germany are back on track, with incoming orders increasing by 45 % in the first half of the year. Closer cooperation with Australia is set to bring further growth.

Following a sharp decline in turnover in recent years, incoming orders from abroad went up 50 % in the first six months of this year compared to the same period the previous year. While domestic orders slumped by 11 %, the total number of orders in the first half of the year increased by 45 %, says Klaus Stöckmann, Deputy Managing Director of VDMA Mining in Frankfurt/Germany (Figure 1). In light of the increase in raw material prices in many areas, the association expects this positive trend to take hold. For the current year, VDMA forecasts project only a minor increase in turnover. According to Stöckmann, this is due to the relatively long periods of up to one and a half years that can pass between the receipt of an order and the delivery of equipment and systems for raw material extraction – and thus the receipt of payments. “In 2018, turnover will be increasing again as well,” Stöckmann projected.

While strong gains were recorded in exports to the EU and in particular to the USA, exports to formerly important markets such as China and Russia declined. With the export quota climbing from 84 to 92 % (2016) since 2006, the domestic market in Germany is becoming less and less important for manufacturers. Stöckmann cited the phase-out of hard coal production planned for the end of next year as the main reason for this development. The situation with lignite, on the other hand, is quite different. With an annual capacity of about 180 mt, Germany continues to be the largest lignite producer in the world. Furthermore, Germany ranks among the five largest global producers of potash and salt, with around 6 mt of potash and approximately 32 mt of salt.

German manufacturers anticipate additional growth stimuli to come from Australia in particular. In March, both countries signed a Memorandum of Understanding and agreed on strengthening cooperation in the energy and raw materials sectors. The first bilateral talks are scheduled to take place during the Asia-Pacific Regional Conference held in Perth/Australia on 3rd to 5th November 2017. The schedule includes two working groups, comprised of representatives from industry, politics, administration and associations. The meetings are to take place every year. “This dialog will help our industry to continue its success story in Australia,” summarizes Stöckmann.
(VDMA/Si.)

Nach der erfolgreichen Premiere 2015 mit über 120 Teilnehmern aus dem Rohstoffsektor, wird das zweite Forum Bergbau 4.0 im November 2017 stattfinden.

Das Forum Bergbau 4.0 ist eine Plattform für den Austausch zwischen Industrie, Forschungseinrichtungen und Verbänden. Die Referenten stellen aktuelle und praxisbezogene Einzelaspekte dar. Die Umsetzungsmöglichkeiten der Industrie 4.0 in der Bergbaubranche sowie die damit einhergehenden Chancen und Risiken werden diskutiert.

Ausrichter des Forums Bergbau 4.0 sind das Institut für Maschinentechnik der Rohstoffindustrie der RWTH Aachen in Zusammenarbeit mit der DMT GmbH & Co. KG und dem VDMA Mining.