SA dragline sold to Glencore in R173M online sale

A 3300-tonne dragline has been sold to Glencore by a major South African mining house for more than R173 million ($A17.42 million).
SA dragline sold to Glencore in R173M online sale SA dragline sold to Glencore in R173M online sale SA dragline sold to Glencore in R173M online sale SA dragline sold to Glencore in R173M online sale SA dragline sold to Glencore in R173M online sale

 

Lou Caruana

It was done in an online mining auction conducted by Clear Asset.

It is more than 15 years since such a machine was sold in South Africa. The asset was sold during a clean-up of redundant stock and is valued at over R1billion new.

Historically, a machine of this calibre can take up to four years to secure based on the delivery schedule and the sheer scale of transport logistics.

In addition, market intel advises that there is a two-year waiting list for such a machine.

To transport a dragline of that size internationally, without considering reassembly at its new destination, would cost about R90 million. This particular dragline will stay in South Africa and be “walked” to its new destination, at a mere 100m an hour.

The dragline machine is used for excavating the overburden layer above the coal levels deep underground and is equivalent to the size of a six-story building.

Ariella Kuper of online mining auction company Clear Asset said: “It goes without saying that a machine of this size and power is rarely sold.

“Such vital excavating tools are in high demand due to their reliability and extremely low waste removal cost. In a single cycle, these machines can move up to 450 metric tonnes of material and the engine room alone is equal to the size of a small hall and comes equipped with a kitchen. We are extremely pleased with the sale.”

Clear Asset specialises in mining asset disposal on behalf of major mines including Anglo Platinum, Anglo Coal, Lonmin, Glencore, Anglo Gold Ashanti and Diesel Power.

The next online mining auction is set for February 11, with a wide selection of mining assets on offer.

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