Dragline machine sold for R173-million – a first in over 15 years

By on February 10, 2014

Ariella Kuper, Clear Asset Managing Director

Glecore Xstrata recently bought a 3 300 ton dragline machine from a major South African mining house via an online mining auction for over R173-million. The machine is worth over R1-billion.

The dragline was sold via auctioneering company Clear Asset online to the Anglo Swiss mining company, Glencore who last year purchased mining giant Xstrata.

It is over 15 years since such a machine was last sold in South Africa. The asset was sold during a clean-up of redundant stock.

The dragline machine is used for excavating the overburden layer above the coal levels deep underground and is equivalent to the size of a six-story building.

Historically, a machine of this calibre can take up to four years to secure based on the delivery schedule and the sheer scale of transport logistics. In addition, market intel advises that there is currently up to a two year waiting list for such a machine.

To transport a dragline of this size internationally, without considering reassembly at its new destination, costs approximately R90-million. This particular dragline will stay in South Africa and be “walked” to its new destination, at a mere 100m an hour.

“It goes without saying that a machine of this size and power is rarely sold. Such vital excavating tools are in high-demand due to their reliability and extremely low waste removal cost. In a single cycle, these machines can move up to 450 metric tonnes of material and the engine room alone is equal to the size of a small hall and comes equipped with a kitchen. We are extremely pleased with the sale,” comments Ariella Kuper of Clear Asset who sold the machine.

Clear Asset specialises in mining asset disposal on behalf of major mines including Anglo Platinum, Anglo Coal, Lonmin, Glencore, Anglo Gold Ashanti, Diesel Power, amongst others.

The next online mining auction is set to take place on 11 February where a wide selection of mining assets will be offered. An additional auction is scheduled for 27 February 2014.

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