Seeing the Mining Industry in a New Light

Road Machinery had been a strategic partner and distributor of Komatsu’s for many years. The latter decided to purchase the former simply because the time to increase Komatsu’s commercial presence in Mexico had arrived, according to Eduardo Bennett, Mexico President of Komatsu. This purchase followed the company’s decision to buy MAKOMEX in April 2015. “The two companies are now working together as one single unit, and this company will be renamed Komatsu Maquinarias de Mexico once the relevant legal paperwork has been completed,” Bennett explains. This investment, which totaled US$200 million, was the largest investment made by the entire Komatsu group in 2015.

Bennett shares that Komatsu invests between 3-5 percent of all annual revenue into research and development. This strategy has been in place for more than 40 years and has enabled the company to become known as a technological leader across many sectors. “One solution we have devised is Komtrax, a satellite-operated GPS fleet control system, which allows the user not only to see the physical location of the equipment but also provides in-depth performance indicators, including engine temperature, engine revolutions, vehicle speed, and motor performance,” he explains. This allows Komatsu to make improvements regarding the efficiency of its machinery, and of course helps the user to reduce downtime and consequently maintenance costs. The service, which comes included with the price of all Komatsu equipment, also brings a number of security benefits because by keeping constant track of the machine, both Komatsu and the client can detect any irregular or illegal activity at an early stage.

Another Komatsu-designed product is the autonomous haulage system (AHS), which allows some models of Komatsu mining trucks to run completely autonomously without the need for an operator either on the vehicle or operating remotely. “These trucks can control their own movement 24 hours a day, or for however long it is necessary to complete the loading process,” Bennett describes. Komatsu designed this technology around 15 years ago and it is now being used on mine sites around the world, including in Australia and Chile. The technology has not yet been introduced into Mexico but given the typical landscape of Mexican mine sites, Bennett believes that Mexico is a well-suited market for the AHS technology.

As well as its innovative products, Komatsu also offers unique solutions, especially in terms of financing. Komatsu Financial Solutions was set up 10 years ago with the goal of offering Komatsu clients flexible financial solutions based on their individual circumstances or needs. “The service we provide differs from that of conventional financial institutions given that we understand the way in which construction and mining companies can be affected by unquantifiable factors,” Bennett explains. “For example, we know that a mining company cannot operate in the jungle in Peru during the rainy season, which can last up to three months, and we therefore understand that the company’s income or CAPEX during that period will be significantly reduced.” Komatsu therefore set up flexible payment plans to help its clients through such periods, which is something traditional lenders such as banks might not be able to do. The service can be particularly useful for small and medium sized mining companies, Bennett claims. “When a small, family run mining company grows to the extent it needs excavators with larger tonnage capacity, traditional financial institutions will not be available to lever this growth,” he states. “However, Komatsu’s financial products allow the small miner to complete this purchase with flexible payment plans, easing the pressure on its CAPEX.” This is vital not only for the client but for the sector in general as it gives a helping hand to new mining companies, which Bennett believes represent the future of the sector.