Dragline machine sold for ZAR173 million – a first in over 15 years

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A 3 300 ton dragline machine, valued at over ZAR1 billion new, has been sold by a major South African mining house for a sum of over ZAR173 million.

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

It is over 15 years since last such a machine was sold in South Africa. The asset was sold during a cleanup 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 6-storybuilding.

A new dragline machine of this size carries a price tag of over ZAR1 billion.

Historically, a machine of this caliber can take up to 4 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 2 year waiting list for such a machine. To transport a dragline of this size internationally, without considering reassembly at its new destination, costs approximately ZAR90 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 highdemand 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 online mining auction company Clear Asset who sold the asset.

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. Following 11 February, an additional auction is scheduled for 27 February 2014.

For more information log on – www.clearasset.co.za

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