Sandvik Mining and Construction has received a contract from Shandong Gold to deliver 20 mining machines to the 3 mines operation in Shandong province. Sanshandao, Jiaojia and Xingscheng mines are in a gold mining area on the north coast of Shandong peninsula, near Laizhou city.

Chinese gold output stands as number one in the world and in 2010 the gold production of Shandong Gold Group reached 24 tonnes.

The contract is valued at more than CNY66 million (7 million Euros) and all units are under contract of sale. The fleet deliveries for the equipment are scheduled to take place before the end of 2012, and will comprise Sandvik drill rigs, loaders and trucks.

The new machines will provide improved reliability and operating performance for the mine along with a wide range of productivity features. The contract represents the largest single order ever for the mining units in China and solidifies Sandvik’s position as China’s leading provider of mining technology.

Sandvik Mining and Construction Region EAS vice president, and general manager of hard rock mining, Schubert Huang says, “Sandvik was initially selected as it demonstrated a low risk option, an excellent understanding of their operations and the ability to deliver on all the required machines and services. This is a win-win and we look forward to our continuing relationship with Shandong Gold.”

Established in 1996, Shandong Gold Group is a large-scale state-owned enterprise directly affiliated with Shandong Provincial Government, which is also among one of the 520 enterprises and Chinese top-500 enterprises strongly supported by the State Government.

Sandvik is a global industrial group with advanced products and world-leading positions in selected areas – tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2009 the group had about 44,000 employees and representation in 130 countries.

Sandvik Mining and Construction is a business area within the Sandvik Group and a leading global supplier of equipment, cemented-carbide tools, service and technical solutions for the excavation and sizing of rock and minerals in the mining and construction industries.

www.sandvik.com

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