Volvo Group, which is most familiar to North American fleets for its construction equipment (Volvo CE) along with Volvo Trucks and Mack Trucks, is creating a separate entity for the mining sector: Volvo Mining.

Launching on January 1, Volvo Mining will drive product and service portfolio management for the Group’s mining segment globally and take on a coordinating role in the various research projects across the Group.

'Mining has been an important part of the Volvo Group for decades, but the industry's growing significance calls for an even greater level of focus," says Melker Jernberg, president of Volvo CE.

"With Volvo Mining as our center of expertise, we are combining capabilities from across the Group to further enhance customer value in collaboration with our retail partners. This will create new opportunities to strengthen our position in a strategically important and growing segment.”

The portfolio as it stands

Examining the "Group," it's clear that Volvo already has loaders, ADTs, and rigid-frame haulers, along with the trucks mentioned above, and home-grown engines (think Volvo Penta). It also has excavators up to 209,000 pounds, at least here in North America.

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Drilling equipment (forgive me) is a big hole. Volvo also lacks ultra-low-profile loaders and giant shovels.

See, the big boys of mining have already lined up. Caterpillar bought Bucyrus Erie in 2011 and Komatsu bought Joy Global (P&H, Joy, Montabert) in 2016. Those massive purchases have bolstered product lines that needed to be rounded out.

I would expect Volvo to go shopping.

Is there anyone with a complementary product line left for Volvo Mining to buy so it can take a bigger swing at Cat and Komatsu going forward? Epiroc or Sandvik, perhaps? Time will tell.

Also lurking out there as competition for Volvo Mining is Liebherr and Hitachi.

Initial focus is local

Volvo Mining will initially focus on mining customers and contractors in Sweden, Norway, and Finland, with the ambition for phased expansion into additional markets.

It won't be hard to imagine the next wave hitting Europe, and then mining hotspots like Australia and South America.

Mining operations require multiple types of machines and vehicles working together across excavation, hauling, loading, and transportation in demanding and often remote conditions. As mines continue to focus on improving productivity, reducing emissions, and enhancing safety, the need for integrated solutions is increasing.

Autonomous and maybe electric alignment

Volvo has already shown its autonomous and electric quarry site, and has backed up its marketing hype on electrification with machines over a number of product categories. 

"By combining our proven autonomous technology and operational experience with Volvo Group’s broader expertise, portfolio, and customer relationships, we can provide integrated solutions that also deliver measurable value for mining customers — improving safety, productivity, and efficiency across their operations”, says Nils Jaeger, president of Volvo Autonomous Solutions.

Per-Erik Lindström, currently SVP of Volvo Trucks International, has been appointed Head of Volvo Mining.

“As the mining industry evolves, customers are looking for partners who can help them improve productivity, strengthen safety and meet growing sustainability expectations," Lindström said in a statement.

"Our goal is to be a long-term partner in that transformation, helping customers create greater value through the combined strengths of Volvo Group. I look forward to working closely with customers and partners as we build this next chapter together."