The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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76 | ASIA Miner | September/October 2014 JOY Global has added to its rotary blasthole drill product offering to pro- vide a wider range of solutions for hard rock applications. The new P&H 285XPC provides up to 53,524kg of bit loading specifcally designed for 270mm and 311mm diameter holes, making it well suited for the majority of copper and iron applications. "This new drill will carry on the P&H legacy for durability," says Joy Global's product manager Eric Wilkinson. "It will feature the same powerful propel structures and robust pull-down systems as our other P&H drills." The new drill also features the Universal Drill Cab (UDC) utilized on other P&H drills. Eric Wilkinson says this commonality of controls will allow experienced operators to quickly and easily transition to a P&H 285XPC. "The UDC provides the operator with a clear, unobstructed view of the drilling area and the surrounding environment. "Its expansive windows and video cameras provide the best visibility in the industry and ensure that the operator is able to maintain com- plete situational awareness while drilling and propelling. Additionally, the FOPS Level II certifed structure combined with shatter-resistant glass protects the operator from harsh mining conditions," he adds. Joy Global manufactures a full line of development and production drilling equipment for the mining industry. Equipped with the Montabert HC Series drifters and Intelesense II drilling controls, every boom move- ment is smooth and precise and every hole is accurate. The Joy drilling line is focused on achieving maximum penetration at the lowest cost. Joy recently announced that it closed on its purchase of certain as- sets of Mining Technologies International Inc (MTI) for Can$51 million dollars, subject to a working capital adjustment. MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and a world leading supplier of raise bore drill- ing consumables. Joy Global has acquired substantially all of the assets associated with MTI's hard rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines. MTI's fscal 2013 revenues associated with these product lines were approximately US$90 million. Excluding the impact of transaction costs and excess purchase accounting charges, the company expects the transaction to be accretive to earnings in 2015. "We are pleased that the acquisition of MTI has successfully closed in the third quarter of 2014 as planned. This acquisition furthers our strategy to expand our underground mining product lines into the hard rock markets including nickel, potash, palladium, platinum, gold and copper," says Joy Global president and chief executive offcer Ted Doheny. "We believe that MTI's broad range of complementary products, combined with Joy's proprietary technology, our global direct service team and operational excellence capabilities, will provide signifcant val- ue to hard rock mining customers and our shareholders." Commenting on the current market conditions in the company's sec- ond quarter report, Ted Doheny said: "The Joy Global team contin- ues to execute well despite signifcant market headwinds. The contin- ued stabilization of our service business, strong cash generation and a multi-shovel order for the Canadian oil sands were highlights in the quarter. "Additionally, the recent closing of the MTI transaction will add to our underground hard rock mining growth prospects. As a result, we are pleased with our second quarter performance and the steps we have taken to advance the execution of our business strategy." Bookings for underground mining machinery decreased 31% in com- parison to the second quarter of 2013. Original equipment orders de- creased 60%, largely due to a longwall system order received into the US in 2013. Original equipment orders declined in all regions except Eurasia. Service orders increased 2%, led by stronger rebuild activity in all regions. Bookings for surface mining equipment increased 34% in comparison to the second quarter of 2013. Original equipment orders increased 102%, largely due to a Canadian oil sands multiple shovel order for a greenfeld expansion project with deliveries in 2016. Original equipment orders increased in all regions except Africa. Service orders increased 13%, with increases in North America, South America and Eurasia par- tially offset by reductions in Australia, China and Africa. The P&H 285XPC rotary blasthole drill from Joy Global. Drill designed for iron ore and copper

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