How the Mighty Are Fallen: Brazilian Mining Industry’s Eike Batista Continues His Downhill Slide

mmx-logoA lot has happened in the Brazilian mining industry since our post in December of 2013 detailing Eike Batista’s fall from grace.

A short summary for those of you needing to be brought up to speed: after having worked himself up to a net worth of $30 billion in the Brazilian mining industry, Batista lost the majority of his wealth under shady circumstances. As of our last update, his personal fortune had drastically diminished, and he’d declared himself to be “practically bankrupt,” although since his net worth still ran in the hundreds of thousands of dollars, his definition of poor might differ slightly from yours and ours.

Unfortunately for him, after having recently faced a continued flurry of criminal charges and other struggles related to his downward spiral, Batista can now erase the word practically from the “practically bankrupt” description. The government has frozen the majority of his remaining assets, and his empire is imploding. 

According to Reuters, companies belonging to the former mogul have officially begun to file for bankruptcy:

Failure to meet production promises at his OGX Petroleo e Gas SA oil company in 2012 started a decline in EBX group shares. Batista, who used his stock to borrow money and finance EBX projects in the face of multi-year delays, ran out of credit and his fortune evaporated. OGX and shipbuilder OSX Brasil SA sought bankruptcy protection in October and November of 2013.  MMX Sudeste Mineracao SA, an iron-ore mining company controlled by Eike Batista filed for bankruptcy on October 15, 2014. (Reuters).

This makes the third instance of individual units in his former empire filing for bankruptcy in recent days. With Batista still under water and no sign of a turnaround in the near future, it’s our prediction that the domino effect will continue as his companies slowly topple.

This is unfortunate, since the real losers will be the Brazilian citizens who make their livings in these companies. It’s our hope that their talents will soon find new homes.

Remember that we carry a full stock of OTR tires for all of your mining needs.  We supply many Brazilian mines with new and used OTR tires.  Feel free to contact us for the best deals.

More Mining Equipment Drama

If you follow the international mining trade, you are no doubt already aware that there has been some serious mining equipment drama lately. Who knew there was so much global turmoil surrounding the mining sector?

iron-ore-haul-trucks

In Australia

Apparently, the recent efficiency dip in the Australian mining sector is all thanks to mining equipment. At least, according to PricewaterhouseCoopers, who claim that the efficiency of iron ore equipment alone has dropped by 40%. This may not be just a local problem, however. PwC leader Jock O’Callaghan states: “That compares to the world wide trend which is no where near as steep decline and the world wide iron ore trend, which has now crossed over and is performing better than Australian iron ore.” This is something to keep an eye on in the months to come.

In South Africa

Operations at Bokoni Platinum Mine were suspended early in October while investigators looked into the death of Bernard Moropane, but the investigation was not enough to appease local friends and relatives of the deceased: “On Monday, Limpopo police said the house of a chieftain was set alight and Bokoni Platinum mine equipment destroyed outside Burgersfort” (Business Report). It should be noted that while we extend our condolences, we do not think it is appropriate to destroy valuable mining equipment or burn down houses.

No matter where you are in the world, remember that we carry a full complement of OTR tires for all of your mining equipment needs. Feel free to contact us for the best deals.

Notes from Down Under: an Australian Mining News Roundup

australian-coal

As a major player in the global markets, the Australian mining industry carries a lot of weight; therefore, what’s happening in the land down under should be of interest to anyone concerned with mining.

To that end, we bring you this small news roundup detailing some current developments and trends in Australian mining.

Notes from Down Under:

  • According to a recent piece in the Guardian, many Australians feel that the mining sector has little effect on overall economic growth. Their major complaint is that all of the benefits go to the mining companies themselves rather than to Australians: ” 67% of voters said mining company executives benefited “a lot”, 40% said mining company shareholders benefited “a lot”, while 67% said the poor people in the countries to which Australia exported would receive little or no benefit, 57% said all Australians received little or no benefit and 50% said regional communities received little or no benefit.”
  • Leaders in the Australian mining industry believe that in order for the country’s mines to stay globally competitive, they need to adopt more automation. Almost half of those surveyed believe that not enough money is being invested in cutting-edge technology (The Australian).
  • Although coal prices are at an all-time low, Australian coal output is hitting record highs. The Sydney Morning Herald reports that many coal mines are choosing to run at a loss, intent on flooding global markets. This is because “[i]n many cases, miners are finding it cheaper to run in the red than shut down, owing to so-called ‘take or pay’ contracts that require payment of haulage fees whether or not any coal is shipped.”

We look forward with keen interest to see how these situations will develop in the final months of 2014.

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

 

Image credit: ZoneAsia-PK

Mexican Drug Cartels Making Waves in Mining Sector

Legendary Mexican cartel the Knights Templar have begun making inroads into the Mexican mining industry. It’s not that they’ve given up meth labs or gun running; they have simply diversified their interests, and the ripple effect of their involvement has begun to show up in the industry.

Throughout 2013-2014, government officials focused on shutting down mines owned and operated by the cartel, but the crackdown came with side-effects: more than 6,000 jobs were lost to the closing of the mines (CNBC).

Federal police officer in search of Knights Templar members near illegal mine. Photo: Reuters

Federal police officer in search of Knights Templar members near illegal mine.
Photo: Reuters

In addition to closing cartel-operated mines, the Mexican government focuses on tracking the sale of ore from illegal mines in an attempt to keep the cartels from profiting through equally-illegal sales. In March of 2014, officials seized 119,000 tons of iron ore, 124 bulldozers, backhoes, and trucks in one particularly successful sting operation (Mining.com).

Crackdowns such as these are essential to keeping the Knights Templar, as well as members of the other twelve major Mexican cartels, in check. Rather than just being one of their side businesses, the mining and illegal sale of iron ore has become one of the mainstays of their financial empire, along with logging and extortion (NY Post).

As we watch this drama unfold from afar, we’re well aware that this isn’t just Mexico’s problem. With the increased globalization of industry comes increased connection, especially among countries that share a common border.

It is our hope that Mexico’s government finds the ways and means to continue cracking down on the cartels, especially in regards to illegal mining operations, and not just for Mexico’s sake: anything done to damage Mexican mining has a ripple effect on the global market as well. The healthier their market, the better off we all will be.

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

More Front End Loader Madness

We’re not sure just what it is about front end loaders, but for one reason or another, they always seem to be getting into scrapes. And by scrapes, we mean that they’re always involved in some sort of random nonsense.

Recent Front End Loader Madness

Take for example the front end loader that was recently used by a drunk Florida man to inflict nearly $10,000 in damage. In the wee hours of the morning, at the end of a “bleary rampage,” Korey Groover, 29, was discovered asleep on the floor of the office suite of the Memorial Hospital Clinic after having crashed a Bobcat through the glass doors and then apparently found himself in need of a light nap.

Then turn your attention to a recent letter to the editor appearing in Georgia’s Cherokee-Ledger News regarding a pair of front end loaders used to knock down a historical wooden house built in 1870, which had been slated to be moved by the local historical society to a new location… until, of course, some pesky front end loaders came along and knocked it down. “Was it not worth saving?” the writer asks plaintively.

Finally, consider a spectacular (and spectacularly gross) crash in Myrtle Beach, South Carolina, in early October that left piles of raw chicken guts strewn across the highway. Highway cleanup was being undertaken by crews of workers with shovels until the front end loaders showed up to clear the mess away. This is a rare instance of front end loaders being the solution to a strange dilemma, rather than the perpetrator.

Images via CNN

Images via CNN

Have you witnessed any front end loader madness recently? If so, share with all of us in the comments.

If you’re the owner of a front end loader, remember that we carry a full range of big tires for all of your needs. Please feel free to contact us for the best deals.

OTR Tire Deal: 40.00R57 Michelin XDR2 B

Michelin XDR

Michelin XDR

40.00R57 Michelin XDR 2 B

10 PCS

New 40.00R57 Michelin XDR 2 B $34,000 USD Each

2013 Year of Production Full Serials

Contact us now to ensure you get them before they are gone!

 

 

We need the following OTR tire:

QTY:  8

Size:  20.5R25

Brand:  Bridgestone

Tread:  VSDR L5

Contact us with your offer.

 

Just added to our inventory:

6 PCS: 37.00R57 Titan MFT 007 HV – $17,000 USD Each

12 PCS: 27.00R49 Michelin XDR 2 B – $11,200 USD Each

12 PCS: 27.00R49 Goodyear RM4A+ 4SL – $8,600 USD Each

4 PCS: 33.25×29 Titan SL 100 E3 – $4,700 USD Each

Alternative Futures for Haul Truck Tires

Like most products, haul truck tires only last so long before they need to be replaced. However, unlike most products, they can sometimes be challenging to dispose of properly. Due to their size and the material from which they’re constructed, they don’t exactly lend themselves to ease of disposal. Short of piling them up in landfills, where they often prove a fire hazard, here are some alternative uses.

Alternative Futures for Haul Truck Tires:

Re-purposed haul truck tires as cattle water troughs.

Re-purposed haul truck tires as cattle water troughs.

  • Recycling: Not only is recycling good for the environment, but it also has become somewhat of a secondary industry, with enterprising individuals chipping in as “middle men” collecting used tires for recycling. Western Tire Recyclers in Utah recycles and re-purposes all sizes of OTR tires.
  • Re-purposing: As we’ve already mentioned, not only can big tires be used on farms to halt erosion and construct feeder troughs, but they can also be put to use off the farm as part of dirt bike tracks and playground equipment. Perhaps the day will even dawn when those in the Tiny House movement find a way to use big tires for insulation or something along those lines. You never know.

And let us not forget about haul truck tires that still have some life in them and need a new home.  That’s where we come in!  If your haul truck tires aren’t ready to be recycled or re-purposed and you can’t find any buyers, then give us a call.  We have an extensive network of OTR tire buyers and sellers and we can find buyers for your used haul truck tires in no time.  Contact us today to sell us your used haul truck tires.

So before you send your tires off to the Big Haul Truck Tire Roundup in the sky, consider what alternative futures might be available. Through re-purposing, you’ll be able to give new life to a tired product, perhaps even helping your community in the process; or perhaps through recycling, you’ll be able to see a return on your investment, which you can then re-invest in your next set of tires.

Speaking of your next set of tires, remember that we carry a full complement of new and used OTR tires for all of your big tire needs. Feel free to contact us for the best deals.

 

Image credit: Western Tire Recyclers

OTR Tire News Roundup, Fall 2014

ron_burgundy_the_classiest_anchorman_of_them_all_by_trickydeuce-d4lb12rFrom time to time we like to bring you news from around the web regarding what’s been going on in the world of OTR tires. It’s been a busy few months for the OTR world, and here are just a few of the developments that we’ve been keeping our eyes on.

 

What’s New in the World of OTR Tires?

  • According to Rubber News, the word change is the operative word for the upcoming tire markets. According to panelists at the  International Tire Exhibition & Conference in Orlando, Florida, industry leaders should be on the lookout for fluctuations and changing products. This comes as little surprise, since the OTR market has always been unpredictable, but recently such things as government oversight have become more of an issue causing change. Panelists at the conference encouraged attendees to concentrate on what they can control rather than what they can’t. To that end, they advised that a focus on customer service seems prudent (Rubber News).
  • In September, Tire Business reported that tire producer TBB Tires, Inc., a subsidiary of Jiangsu General Science Technology Co. Ltd., has changed its name to Statewide Tires “in order to reflect the expansion of its business activities and coverage.” Nothing else about the company has changed, however. They will continue to produce the same brand of radial tires as before, leaving their parent company Jiangsu General to focus on truck/bus, agricultural, motorcycle, and OTR tires.
  • Interestingly, hard on the heels of the “fluctuating markets” report of late summer comes an early-October article from the Tire Review reporting a brightening of the OTR markets: “According to a recent Credit Suisse survey of Caterpillar equipment dealers, 95% are exceeding their sales forecasts for 2014, expecting this year to be 8%-12% higher than last year. Even better news is that dealer inventory levels are “very low” and used equipment is hard to come by. The equipment rental segment also appears to be strong this year.” Make of those statistics what you will.

As we process these pieces of news, we continue to be thankful for the improving health of the OTR tire markets around the world.

Know of an important item that we missed in the roundup? Feel free to add it in the comments below or contact us directly.

 

Image credit: trickydeuce

50/80×57 Firestone SRG DT LD L4 68 Ply For Sale

Firestone SRG DT 58/85x57

Firestone SRG DT 50/80×57

Firestone 50/80×57 SRG DT LD L4 68 Ply OTR Tires

Quantity- 3
Condition- New
Serial Numbers- Yes Full Serial Numbers
Price- $25,000 USD Each
Location- North Carolina

Comments: Buyers are welcome to inspection.

 

If you are looking to sell some of your OTR tires, please send us your current tire inventory.

Please call or email for any other OTR tire inquires.

What Do Space Travel and OTR Tires Have in Common?

capt-mark-kelly-ret

Capt. Mark Kelly, retired U.S. astronaut, will be the motivational speaker at the 2015 TIA OTR Conference in Tucson, Ariz.

What do space travel and OTR tires have in common? On the surface, not that much. Other than a tenuous name connection offered by the South African tire company “Apollo,” you might be tempted to say there is no connection. After all, space shuttles don’t have big tires (unless you count landing gear tires as big, which is debatable) and as we’ve pointed out in a previous post, NASA’s cralwers are too big for tires.

Recently, however, another link between space travel and OTR tires has been forged. It was announced mid-September that Mark Kelly, commander of the final mission for the space shuttle Endeavor, will deliver a motivational address at the Tire Association’s 2015 OTR Conference in Tuscon, Arizona.

According to the Tire Review, event organizers are thrilled at the opportunity to host him:

“We couldn’t be more excited to hear Captain Kelly’s story. He is a true American hero who exemplifies leadership and courage and his story is sure to inspire OTR attendees. We are in for a real treat,” said TIA Executive Vice President Roy Littlefield (Tire Review).

With his share of military and aviation experience, it is likely that Kelly has seen plenty of big tires in action. More importantly, Kelly brings to the table a wealth of life experience. Not only has he been into space four times, but he’s also a survivor of prostate cancer and the husband of Congresswoman Gabrielle Giffords, who has her own connection to OTR: she’s the former president of Tuscon’s El Campo Tire & Service Centers, Inc. (Tire Business).

Certainly this will be an address well worth hearing. Interested parties can see TIA’s website for more information.  To register for the conference , visit this page.  We are sponsoring the conference will be there each day, so keep a look out for us.  The TIA OTR Conference is a great place to network and they usually have some cool events during the conference.  This year will feature some skeet shooting! Hope to see you all there.

Also, remember that we carry a full stock of OTR tires. Feel free to contact us for the best deals.