Australian Mining Industry’s Upswing on the Horizon?

chinese-moneyIf you’ve been keeping up with global shifts in mining, then you’re already aware that the Australian mining industry has been suffering for quite some time. With the end of Australia’s mining boom have come concerns regarding how the entire country will be affected, and unfortunately, some of those concerns have already proven valid. Not only have small mining-centered towns been affected by shut-downs, but now even major cities such as Perth have also been negatively impacted.

Recently, Bradley Woods, the CEO of the Australian Hotels Association, expressed his concerns for Perth, revealing that occupancy levels in the city’s hotels are down 3.1 per cent compared to the same time last year, a figure that parallels the mining slump.

“What we saw as a result of the mining peak in Western Australia was that there was huge demand from the corporate resources sector for accommodation in Perth. That drove up accommodation demand and price. There was a lot of additional business that came off that.” (ABC)

While Woods is justified in expressing concerns, he may soon find the trend reversed. With further stabilization of the Chinese economy, Australia can be somewhat assured of its demand in the coming years, since in recent decades a steadily-growing Chinese economy equals a steadily-growing demand for Australian iron ore. According to the Guardian, although the relationship between the Chinese economy and the strength of the Australian mining industry isn’t exactly a sure thing, it’s enough to give a glimmer of hope.

And sometimes a little hope is just what’s needed to hang on until things turn around.

Remember that we carry a full supply of OTR tires for all of your mining needs. Please feel free to contact us for the best deals.

 

Image credit: Pixabay.com

Titan Expects Tire Sales Throughout the US Mining Industry to Improve Despite a Sales and Earnings Decline

TitanGrizzBrandsLogo1Titan Tires has offered high-quality tires and wheels for the agriculture, forestry, construction and mining industries for years. In addition to site visits to consult decision-makers on the best product choices; Titan offers servicing for its line of products for extended periods after purchase. Changes in the agriculture industry have prompted Titan to focus more of its business efforts on the mining and construction sectors, as it expects agriculture industry sales to stay consistent or drop in the years ahead.

According to recent reports, Titan tires experienced significant drops in both sales and earnings in the quarter that ended on March 31, 2015; because there was more demand for a type of higher horsepower agricultural equipment, that Titan doesn’t currently produce tires for. It’s large agricultural sales were down 35% and Titan doesn’t expect those sales to improve anytime soon.

Overall, company earnings fell 21.6% and sales fell 25.4%. However, Titan executives expect customer demand for new Titan products in other industries to improve sales and earnings throughout the remainder of the year and in coming years. Titan also experienced lower high margin tire sales as well.

In addition, Titan attributed part of the quarterly loss to Euro, Ruble, and Australian dollar currency weakness against a strengthening US dollar.

Titan’s pre-tax operating income, however, was higher than expected, which is always good to see .

Positive Upcoming Changes that Affect the US Mining Industry

  • Titan’s mining business is expanding and the demand for its underground wheel and tire business is starting to grow.
  • Titan is extending its Low Sidewall Technology, (LSW), line of products into the mining and construction industries; and is hoping for acceptance and an overall positive response.
  • Titan is expecting improved sales in its ITM business. The ITM sector provides undercarriages for the mining, construction and earth moving industries.

Contact us to shop the entire line of Titan products. BuyBigTires.com sells the most in-demand mining tires at affordable prices.

Makers of Mining Equipment Feeling the Pinch

Cat 777G rigid haul truck on the moveThere’s no denying the fact that so far, 2015 hasn’t proven the best one that the mining world has ever seen. As the global mining slump continues, makers of mining equipment have begun to feel the pinch.

Witness Caterpillar, Inc.’s recent announcement that they would be cutting one hundred and fifty full-time employees from their Decatur, Illinois, facility, citing the exigencies of supply and demand:

The mining industry continues to experience weak market conditions, the company said. The resource industries division, which includes Decatur-built mining trucks, reported last week profits of $85 million during the first quarter, a more than 40 percent collapse from $143 million earned in the first quarter of 2014 (Herald Review).

CAT employees aren’t the only ones suffering the results of the weak global market, however. The Star Tribune reports that Caterpillar, Deere, Komatsu and Liebherr alike all expect difficulties in 2015 due to the slowdown, although they cite the softness in U.S. agriculture and a prolonged pause in oil production as other contributing factors.

But not all reports are dire. Recently, Mining Global used data from Research and Markets to predict that within the United States at least, the mining equipment market will grow at a compound annual growth rate (CAGR) of 8.27 percent between now and 2019. While the global market as a whole may be suffering, the surge in U.S. mining will eventually overcome the temporary setbacks for producers of mining equipment.

Remember that we stock a full array of big OTR tires for all of your mining equipment needs. Feel free to contact us for the best deals.

Will the Rock Creek Mining Project Boost Montana’s Economy?

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The US mining industry has been on a bit of an upswing in recent years, and recent news shows that the mini-boom is spreading to Montana.

Montana is home to the Rock Creek Mine project, thought to be one of the largest unmined silver deposits in the United States. In addition to 229 million ounces of silver, Rock Creek is believed to have 2 billion pounds of copper.

This has attracted the attention of Hecla Mining, a major player in the U.S. silver market. Hecla has recently announced plans to acquire Revett Mining, a mineral developer that owns the rights to the Rock Creek project.

Revett has been trying to develop the project for over 10 years, but has met with significant opposition and legal hurdles. Locals and environmentalists oppose any mining in the Cabinet Mountains, home to Rock Creek.

However, in 2011 an appeals court opened up the region to permitting, and it is thought that Hecla, with their superior resources, will have more luck advancing the project than Revett.

To that end, they’ve earmarked $20 million in stock towards the purchase of Revett and its claim – a 30% premium on recent evaluations. This is a significant vote of confidence in their ability to bring the project to life.

It’s not the first time Hecla has invested in a controversial project. The company notes that they’ve been operating in an Alaskan national monument for nearly 20 years, referencing their silver mine in Greens Creek.

Regardless of the outcome of the Rock Creek project, Hecla’s interest shows that there’s still a strong interest in U.S. mining.

As the industry continues to grow, this will also lead to an increase in demand for mining supplies and equipment. To find out about our extensive inventory of OTR tires, contact us today. We’ll help you choose the tires that best fit your needs and budget.

 

Image credit: Revett Mining

Ongoing Safety Concerns for Workers in the Mexican Mining Industry

mexican-police-man-submachine-gunBecause we routinely ship OTR tires to mines throughout Mexico, we have been keeping abreast of current safety concerns within the Mexican mining industry. As we told you recently, the country’s drug cartels have been further complicating the mining situation. Reports of robberies, kidnappings, and murder have begun to occur with chilling regularity.

As U.S-and-Canadian-based news sources begin to express their concerns, top mining officials have made statements claiming that they’re working to ensure the safety of all their employees:

“We are hopeful that this ongoing dialogue will result in better conditions for the industry as a whole,” said Tim Haldane, Agnico’s senior vice-president of U.S. and Latin American operations. “Fortunately, in the communities where we operate we have not observed any recent new security challenges” (The Globe and Mail).

That may be true for Agnico Eagle Mines, a Canadian-owned company currently operating in Mexico, but other corporations have not been so fortunate, such as Goldcorp and Torex, both of which have been the targets of serious crimes.

With crime on the rise (both cartel-related and otherwise), and little assistance available from local and national law enforcement, responsibility for the safety of mine employees falls squarely on the corporations themselves. Since many of these mines are owned by overseas companies, it’s our hope that the decisions made offsite are made with a full understanding of the needs and safety concerns of the miners themselves.

Remember that we carry a full stock of OTR tires for all of your mining needs. Feel free to contact us for the best deals.

 

Image credit: dream2life on Flickr

What’s Going On in the World of OTR Tires: News Bites from Around the Web

It’s been a busy spring in the world of OTR tires. In our efforts to keep you abreast of the latest developments, we’ve lined up a list of informative headlines with a short summary of each. Feel free to click through to the full articles for more detail.

What’s Going on in the World of OTR Tires, Spring 2015:

  • “60th Annual OTR Tire Conference: Celebrating the Past, Looking Forward.” At this recent event in Tuscon, AZ, industry leaders were able both to hear and to give presentations, take part in panel discussions, network, and engage in leisure activities. The conference centered not only on recent developments but also on hopes for the future of OTR tires. The next conference will be held held Feb. 17-20, 2016, at the Omni La Costa Resort in Carlsbad, Calif.
  • “Double Coin, CMA Find Anti-Dumping Determination ‘Grossly Wrong.'” According to Tire Review, both Double Coin and CMA are protesting the government’s newly-imposed anti-dumping rate of 105.31%, claiming that the rate is unjust. Further sources reveal that CMA has vowed to appeal the ruling.
  • “Michelin Q1 Sales Up 5.6%,” although a closer reading of the report uncovers that “Sales volume in the specialty businesses unit — earthmover, agricultural, two-wheeler and aviation tires — was off 4 percent despite some gains in the OE and infrastructure OTR segments and sales improvements in the two-wheel sector.” The arguments become even more nuanced after that, but we’re happy to see Michelin showing a net gain at the end of the day.

In fact, we’re happy to share all of these reports from the world of OTR tires, since their existence is evidence of a thriving, developing industry intent on moving forward.  If you have any exciting OTR news to share, please do so in the comments section.

Remember that we carry a full stock of big tires for all of your OTR needs. Please feel free to contact us for the best deals.

 

Image credit: TireReview

Job Security Issues within the U.S. Mining Industry?

minntac-taconite-mine-sign

Although reports of a steadily-growing U.S. job market came as an encouragement to many industries this spring, the news in March and April regarding the U.S. mining industry and heavy industry were not so encouraging. The overall job market may be expanding, but within the mining sector, some troubling trends have emerged.

First, Pittsburgh-based company U.S. Steel announced in late March that they would lay off seven hundred workers, citing supply and demand issues. These cuts are only one in a series of closures and layoffs that have led to an estimated four thousand U.S. Steel workers losing their jobs.

Global iron ore prices have dropped by more than 50 percent in the past 18 months, with slower demand in China and huge increases in iron ore output in Australia. Since 2011, iron ore prices have dropped by two-thirds, from nearly $190 per ton to about $57 per ton (Grand Fork Herald).

With statistics like those staying current, it’s hard to predict when the situation might turn around.

In addition to these cuts, America has also witnessed a big drop in oil and affiliated mining jobs. According to Business Insider, persistently low oil prices have forced many energy companies to shut down their rigs, leading to more layoffs.

Fortunately, U.S. mining news hasn’t been entirely grim. Recent reports indicate that after many years, the declining coal industry has stabilized and may even be on the rise again. Who would have predicted that just a couple of years ago?

No matter which mining sector you call home, remember that we carry a full range of OTR tires for all of your mining equipment needs. Please feel free to contact us for the best deals.

 

Image credit: Grand Fork Herald

OTR Tires Needed and This Week’s Specials

OTR Tires Needed:

We are in need of the following. If you have any of these in your inventory in North America please let us know.
2pc 9.00R20 Michelin XZM
4pc 16.00R25 Michelin XZM
6pc 23.5R25 Goodyear RL2+

Here are this week’s OTR Tire Specials:

14pc – 29.5R25 Michelin X-Mine D2 – $6,900.00 ea (Bulk Deal Pricing: must take all 14)
2pc – 17.5R25 Bridgestone VSDL – $1,850.00 ea

It’s time to invest in some new heavy equipment tires

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With Spring in full swing in the Northern Hemisphere, it’s time to invest in new heavy equipment tires. Winter snow, ice, and unforgiving frozen terrain can take their toll on your tires.  The brutally cold temperatures can lead to damage that doesn’t even make itself known until seasonal temperatures begin to rise and by then, you might be looking at worse problems than loose gravel and rivers of mud.

For the safety of your operators, as well as the benefit of your company, tires are critical when it comes to regular, scheduled maintenance.  Tire failure means work hours lost, expensive repairs, and even worse, cranky mechanics.  A wide range of problems can be avoided, from basic tire failure to more catastrophic events, including loss of life if routine tire replacement is part of your scheduled maintenance rotation.

Contact us for suggestions on the best tires for your type of terrain, climate, workload, and even tire durability for wherever the job takes you.  You can breathe easy knowing that your equipment is running on the most reliable and cost effective rubber for your dollar.  We also offer PressurePro TPMS so you and your operators have real time info on tire temperatures and pressures.

The biggest complaints your mechanics should have is about how awful the coffee is in the lunchroom, not about how the front end loader has been driving on cords for the last hundred hours of operation.  We can help you with the tires, but probably not the coffee. 😉

 

Image Credit: BobWinning.com

More Front End Loader Madness

It just seems that the front end loader madness never stops. Even though it’s become a recurring theme on our blog, every time we put together one of these posts, we’re still amazed at the sheer amount of random crimes reported every single month centering on front end loaders.

First, there always seems to be a drunk, disorderly vandal who decides it’s going to be a good idea to end the night with a joyride on one of the world’s slowest transportation devices ever. This week is no exception with the Logan Banner from Logan, West Virginia reporting that one Arnold Campbell recently decided to drive a $100,000 CAT off a construction site right after he “had drank beer, taken shots of liquor, and smoked crack cocaine earlier in the evening.”

Next, there’s generally a report of straight-up theft. Since most heavy equipment is kept on-site overnight during jobs, theft is not exactly infrequent. This time, though, the report is a doozy from Down Under:

Thieves have stolen a front end loader valued at $1.2 million from the industrial area of Boodarie in South Hedland, in the state’s North West. The thieves would have had to use a low loader to transport the large piece of machinery (WAToday).

New to this month’s lineup, though, is a tale of Front End Loader Spontaneous Combustion!

Well, perhaps Spontaneous Combustion is a bit of overstatement. While it has been (somewhat sensationally) reported that a front end loader suddenly “burst into flames” near the charmingly-named Hog Mountain Road in Gwinnet County, Georgia, the report also cites a “busted hydraulic line” as the cause.

Whatever the current legal state of your front end loader, be sure that you’re performing regular checks for tire maintenance and remember that we carry a full stock of front end loader tires for all of your needs. Feel free to contact us for the best deals.