ERG concludes one of the largest deals in Kazakhstan's history

Link to news: Go to news

Eurasian Resources Group (ERG) has signed an equipment supply contract with Eurasian Machinery, Hitachi's official dealer in Central Asia. It is one of the largest deals for the purchase of mining equipment for the 30 years of Kazakhstan's independence, as reported by Tengrinews.kz regarding the agency's press service.

By the end of the year, 12 Hitachi EH4000 AC-3 dump trucks and two Hitachi EX5600E hydraulic excavators will be delivered to “Kachary Ruda” JSC’s industrial site. The equipment will be used for stripping works and transportation of iron ore.

The new equipment will be the most efficient and the largest one in ERG. As the Company notes, 220- tonne dump trucks are a rarity throughout Kazakhstan.

In total, up to 50 pieces of industrial equipment will be purchased under the signed contract. The purchase of equipment is part of a major reconstruction across the entire Kachar open-pit mine intended to increase iron ore production at Sokolovsko-Sarbayskoe Mining and Processing Production Association (SSMPPA) several times over.

The supplier undertakes not only to supply the equipment but also to perform a range of service works, including the construction of service infrastructure and the supply of the necessary spare parts and major components for 10 years. The service infrastructure involves the construction of workshops equipped with the required tools, warehouses for spare parts, and a box with a car wash. This type of maintenance is based on the MARC (Maintenance and Repair Contract) principle and is used at ERG for the first time.

“The safety of the equipment and the comfort of the personnel working on it are priority principles in the choice of technology for our enterprises. It is what ensures smooth operation and the implementation of the production plan. Hitachi equipment has established itself as reliable and suitable for our types of works for a long time. We are pleased that our partners have made the delivery terms as convenient as possible for us. In total, the contract provides for the delivery of up to 42 dump trucks and six excavators," said Ilmir Masgutov, Chief Commercial Officer of ERG.

Besides service works, Eurasian Machinery will help train future machine operators and drivers with the new equipment and provide a special simulator.

The new “giants” have increased equipment capability that will increase lifting capacity and provide additional benefits in large-scale operations. The operation of dump trucks has become much easier and more efficient due to modern technical solutions and an upgraded system.

"Hitachi Construction Machinery Co Ltd has been a trusted partner of Eurasian Resources Group for a long time, and all tasks assigned to the partner are accepted as its own. Unique long-term financing has been provided for the supply of the Hitachi mining transportation fleet. Over 100 of our trained, highly skilled technicians will be on site around the clock to improve the efficiency of the quarry equipment, to monitor and maintain equipment operations," said Chetinelli Mekhmet Kemal, CEO of Eurasian Machinery LLP.

Today, the Kachar site is one of ERG's most promising ventures. “The Smart Pit” automated quarry management project is implemented here. It provides full transparency and control over performance parameters increasing the overall economic impact of the company's production output.

Since the start of the project in 2017, equipment efficiency has improved, and ore extraction capacity has almost doubled.