In a “strategic initiative” to restructure and optimise its manufacturing footprint, US mining equipment manufacturer Caterpillar has decided to place its soft rock room-and-pillar underground equipment production under review and will stop taking orders for this equipment.

The company has announced its intention to pursue “strategic alternatives”, including the possible divestiture of its underground mining room-and-pillar products. Caterpillar will also discontinue the manufacture of track drills. However, the company emphasises that it remains committed to underground mining, which it sees as an attractive and growing long-term industry.

The company says that it is seeking to concentrate its underground mining product portfolio on those areas with the highest support requirements and greatest future opportunities.

Southern Africa Caterpillar dealer Barloworld Equipment (BWE) has nonetheless assured its Southern African customers that it is “business as usual” and that the company will continue to offer full service and support for all Caterpillar products owned by its customers.

BWE CEO designate Emmy Leeka says BWE and Caterpillar remain committed to, and will continue to support, all their customers operating their fleets. He adds that the Southern African operation will not be significantly affected by the Caterpillar product review.

“The two mechanised mining methods used for underground coal extraction in Africa are room-and-pillar and longwall mining methods. BWE has less than 5% market share of the underground soft rock room-and-pillar segment,” Leeka notes.
He says that, this decision will not therefore significantly affect the company’s existing business plans. However, he points out that BWE’s soft rock longwall market share in Southern Africa stands at 50%. Leeka says BWE and Caterpillar’s strategy is to continue to support and grow this segment.

He comments that BWE is, nonetheless, looking at alternative competitive products to complement the extensive drill and underground range provided by Caterpillar.

“BWE and Caterpillar remain committed to an extensive mining product portfolio. We see mining as an attractive long-term industry in which we will continue to invest,” Leeka concludes.