RESOURCE INDUSTRIES

Helping Customers Thrive in Challenging Times

Success in the mining and quarry businesses today is defined by total cost of ownership, efficiency gains and return on investment. We remain committed to making quality machines that are productive, innovative, safe and reliable. We are also committed to building partnerships that go beyond iron – helping our customers get more from equipment, boost operational efficiency and effectiveness, increase productivity and lower costs. Our goal is to help them thrive in these challenging times.

MARKET FUNDAMENTALS

While commodity prices improved late in the year, for most of 2016, they were too low to drive significant demand for new equipment. We believe idle mining trucks on customer sites also had a negative impact on end-user demand. Toward the end of the year, commodity prices improved, machines went back to work and, in the fourth quarter, parts sales were higher than the year prior.

2016 HIGHLIGHTS

  • Demonstrated how miners can solve their biggest challenges by showcasing new technologies and equipment, unveiling machine enhancements and demonstrating how we go beyond the iron to help customers optimize operations and reduce costs at MINExpo 2016.
  • Increased the number of customers counting on Cat® technologies to optimize operations.
  • Advanced support of customer needs for the entire machine life cycle by adding inventory across a broad spectrum of parts to improve overall availability, and implementing innovative approaches to improve demand forecasting and network planning systems and processes.
  • Continued to grow parts and repair options for our expanded mining products, with over 45,000 serviceable parts and components now available.
  • Emphasized end-to-end solutions to help customers leverage the entire Caterpillar enterprise by working with Caterpillar Job Site Solutions and Cat Financial. These solutions go beyond iron to help customers use capital more efficiently, increase asset utilization, improve efficiency, reduce variability and make more money.
  • Reinforced commitment to underground mining with new products like the Cat® R1700K LHD, AD22 truck, the new Cat® Rock Straight System, and a High Torque Drive System for Longwall – along with expanding our technology offerings, aftermarket support and rebuild capabilities.

AUTOMATION

Automation is changing the way mines and quarries operate. In 2016, we reinforced our position as the leader in automating the mining industry with key capabilities such as: fully autonomous haulage systems, remote control dozers, and delivering automation on competitive machines. In just over three years, Caterpillar has moved over 300 million tons of material autonomously, outpacing productivity at comparable manned operations by nearly 20 percent over a three-year period – and we continue to make significant investments in automation technologies. And, all this has occurred with zero lost-time injuries. These capabilities are just the beginning as we continue to make significant investments in automation technologies.