Mining equipment supplier doubles presence in Elko

The opening of Sandvik Mining's new facility at East Jennings Way and Alta Vista Drive allows the underground mining equipment company to expand its capabilities and pursue new avenues of business, such as surface mining and construction, says Sandvik branch manager Steve Antonini.

Sandvik broke ground on Sept. 8 on a 21,743-square-foot building on 3.5 acres double the size of its current 10,000-square-foot facility on 1.2 acres and expects to move into the building in May.

"With the amount of equipment that we have, we have just outgrown our facility," Antonini says.

Sandvik's primary business is the sale of underground hard rock mining equipment such as blast hole drillers, bolters, conveyors and crushers, as well as trucks and loaders, and equipment service and parts sales. Its main customers are Newmont Mining and Barrick Gold Corp. Sandvik services Barrick's underground operations at Cortez Hills and its Miekle mine, as well as Newmont's underground operations at Leeville, Midas and Chukar.

The opening of the Cortez Hills mine in 2009 and a company reorganization, which gave Sandvik's Elko operations more equipment lines, drove the need for expansion, Antonini says.

"We became a full-line dealer and are now selling blast hole drillers, conveyers, and crushers, and we needed room with future growth of that business to be in a larger facility," he says.

In April Sandvik also became a Cubex dealer, selling that company's underground and surface drills. Sandvik employs about 30 in Elko and expects to add an additional six to nine employees as business ramps up. The majority of the company's Elko employees work in the service and repair shop.

Antonini says new equipment sales dipped in 2008 and 2009 but are trending upward in 2010. Service has remained steady throughout the past few years. Although the company has focused on underground mining operations in the Elko area, it's making a push to expand business in mining construction and surface mining equipment sales.

"The new facility gives us an opportunity to grow business that we haven't been in before and to service more underground," Antonini says. "With the building we have now we are able to complete all the tasks at hand, but with the new facility we will be able to expand what we currently do."

Sandvik is headquartered in Sweden, and has a U.S. headquarters in Atlanta.