Mining Equipment: Current State of the Russian Market.
The characteristic features of the mining equipment market remain the import of equipment from partner countries and the development of domestic production.
For two and a half years, the mining equipment market has been living in new realities, to which most industry players have already become accustomed – from mining companies to companies supplying equipment, machinery and components. The departure of almost all well-known global brands (Caterpillar, Sandvik, Liebherr, Komatsu, etc.) has raised long-standing questions: how to ensure technological independence of the industry, how to achieve maximum localization of production, etc.
The departure of Western companies from the Russian market opened up new opportunities for both local manufacturers and companies from partner countries. Eastern (mainly Chinese) manufacturers and suppliers of equipment did not miss their chance and quickly entered the vacant niches.
Mining Equipment Imports: How the East Displaced the West
In 2023, B1 Group conducted a large-scale survey on the risks and opportunities of the industry in the new conditions. The heads of 11 largest mining and metallurgical companies in Russia shared their opinions: 91% of companies responded that they were forced to change suppliers and import routes for equipment and components. At the same time, China was chosen as the main partner for equipment supply by 90% of the surveyed companies.
Indeed, in 2022-2023, according to Andrey Lovkov, Commercial Director of ID-Marketing, Chinese manufacturers have significantly increased the supply of heavy excavators, mining trucks and other mining equipment to Russia. Thus, for the first time in the TOP-5 in terms of supply of heavy excavators, XCMG entered the TOP-5 - an increase of almost 3 times, Sany - an increase of 1.5 times, as well as Liugong, which became the leader in terms of growth rates - the Chinese manufacturer increased the supply of heavy excavators by 8 times.
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Almost the entire market of quarry dump trucks in Russia was also occupied by Chinese manufacturers. According to the results of 2023, they increased the volume of deliveries by 42% , while Western brands, especially Komatsu and Caterpillar, completely left the Russian market. The largest share of 39% was taken by LGMG, the import of dump trucks of this brand increased by 69% . Another manufacturer from China - Tonly - showed an outstanding result in strengthening its presence in the market. Having increased the supply of quarry dump trucks almost 6 times, its share reached 18% .
Chinese companies began actively entering the heavy bulldozer segment back in 2022. At first, Shantui and Zoomlion products dominated the Russian market, but over time, their positions were pushed aside by Luigong and Beezone. These brands are still in the TOP-5 for imports of heavy bulldozers, led by Shantui with a share of 59% . At the end of 2023, Komatsu still remained in the top five, which is probably due to parallel imports and one-time deliveries.
As a result, over the past two and a half years, Eastern manufacturers, with a significant lead over China, have increased supplies of quarry equipment and other equipment to Russia. However, the issue of importing and implementing IT technologies for the mining industry remains debatable. Many experts are convinced that digital solutions should be developed independently in order to avoid dependence on foreign partners in such a critically important area.
Alexey Yakovenko, Vice President for Digitalization at Russian Copper Company, said that the choice of IT technologies from China should be approached with caution: “We are very careful when choosing Chinese technologies. Moreover, when taking Chinese technologies, we do not take Chinese processes, procedures, and regulations. They do not suit us .” At the same time, one of the five most important IT trends in the mining industry in 2024 is import substitution and the development of more flexible solutions. The key trends were listed in a study conducted by the multidisciplinary technology group Reksoft.
Digitalization and automation on your own
Even more than on machine supplies, the Russian mining industry was dependent on foreign software and IT technologies. According to the CEO of Makromine RUS, Boris Kurtsev, import dependence in this area reached 85%: “85% of all mining software used in production is from foreign suppliers . ”
Over the past two years, it has become obvious that the development and implementation of domestic solutions based on artificial intelligence, big data processing, machine learning, monitoring systems, etc. is the only correct path for the industry to develop in terms of digital security and technological sovereignty. According to the results of the Reksoft study, 54% of mining companies, as of September 2023, planned to completely replace Western software within 3-5 years. The implementation of domestic IT technologies will not only solve the problem of import dependence, but also optimize processes, increase the volume of extraction and processing of minerals.
Choose Russian: what is already on the market
With the departure of Western suppliers, the need for increased equipment production by local manufacturers became obvious. Many Russian companies adapted to the new conditions and began to produce more equipment and components, opened new areas of production. Mining companies share successful cases of import substitution and the use of Russian products. For example, in the Kirov branch of Apatit (PhosAgro Group), instead of American Caterpillar 1700G load-haul machines, they use a Russian analogue produced by the Shadrinsk Automobile Aggregate Plant. The diamond mining company ALROSA agreed on the supply of Russian equipment from the Machine-Building Holding and UZTM-KARTEX in June 2024.
Almost complete localization has been achieved in the flotation machine segment – its level has exceeded 90% . Thus, the companies Usolmash and NPO RIVS, participants of the MiningWorld Russia 2024 exhibition, successfully produce flotation machines with a volume of up to 300 cubic meters. NPO RIVS recently brought units with a volume of 200 and 300 cubic meters to the Russian market for the first time, and Usolmash serially produces flotation machines with a volume of up to 160 cubic meters.
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The most effective platform for demonstrating mining equipment
The mining industry of Russia still needs high-quality equipment and technologies, spare parts and components to maintain and increase production and mining volumes. You can present your products to a professional audience - specialists and managers of mining and processing plants, mining enterprises, trading companies - at the International Exhibition of Machines and Equipment for Mining, Enrichment and Transportation of Minerals MiningWorld Russia .
Key figures about MiningWorld Russia*:
// 578 participants on 30 thousand sq. m of exhibition area,
// 8,410 visitors from 75 regions of the Russian Federation and 32 countries of the world,
// 67% of visitors planned to make purchases following the exhibition,
// 77% of participants met with current clients and partners,
and also:
// The TOP-3 of visitor interest included machines for mining ( 48% ), enrichment ( 40% ) and transportation ( 40% ) of minerals.
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