The launch of ARAMAC, a company entirely dedicated to the design, manufacture and distribution of underground mining equipment and complementary mining solutions, represents a significant shift for France-based Aramine, with the entity set to claim new equipment market share beyond the narrow-vein mining niche it initially sought out 20 years ago.
Earlier this month, Aramine made the separation clear, announcing that ARAMAC would be the company steering the design of new machines, with Aramine continuing to develop its spare parts and components business through its SmartParts® program.
Both ARAMAC and Aramine remain owned by the Melkonian family. Marc Melkonian leads ARAMAC, while Christophe Melkonian heads Aramine. Geneviève Melkonian serves as co-President of both companies, ensuring continuity across the two organisations as they pursue their respective development strategies.
ARAMAC aims to become a leading manufacturer for underground mining operations with cross-sections of up to 16 sq.m, the company said in the announcement, adding that it has delivered more than 500 machines in 34 countries to date.
IM put some questions to Marc Melkonian, co-President of ARAMAC, shortly after the announcement was made to find out more.
IM: Why have you decided to launch ARAMAC now? What significance is there in terms of timing?
MM:Â We have been talking about this separation for several years, but we were waiting for the right time to action it.
Historically, Aramine has been known for spare parts, service and our equipment rebuild offering, but many in the mining sector were not aware of our new equipment capability. We have had to build up a reputation in the sector for this, which is part of the reason why now is the right time to separate Aramine and ARAMAC.
Alongside this, there are two main reasons as to why we are doing this now: profitability and vision.
Our aftermarket business has been profitable for some time, but the new equipment business has a lot more associated costs that need to be accounted for, such as the engineering department, R&D, production line, etc. We are now at a point where – even with these costs – ARAMAC is a financially-viable business.
In terms of a vision, we had to clearly map out what this was and how it would facilitate growth. We have historically been known for the small gallery, narrow-vein niche, but we are now looking to diversify and grow the offering beyond this. This is the vision.
IM: On average, how many new machines are you selling per year at the moment?
MM: We are, today, selling more machines than we can produce, so are relying on subcontractors to fulfill orders. We produce between 52 and 55 machines a year. These are mostly the three main loading platforms and two truck options we have developed. We also sell drill rigs more sporadically; we are looking to make drills a more consistent revenue contributor with a new product we will be launching.
IM: Will the move to new premises in 2027 help bring some of this subcontracted work back in-house?
MM: We have always – since the very origins of Aramine – subcontracted out work. Operating from France, and being within Europe, allows us access to a good pool of companies for this work. But we know that some processes must absolutely be carried out internally, with the final assembly being an area we pay particular attention to.
Our new premises in Gardanne, in the south of France (located on a former mine site), will provide us with six times more machine assembly capacity, which we will gradually look to utilise.
IM: What is the geographical concentration of sales currently?
MM: One of the difficulties we have historically had is our diversity of customers. As Aramine, we invoiced 84 different countries for business, which comes with a lot of complexity. Even when I look at the new machine business that will now come under ARAMAC, we are selling to 34 different countries, concentrated across South America, Asia, Africa and Central Asia.
Going forward, we realise ARAMAC needs to be more focused geographically. We have selected five countries where we will put a lot of energy and focus, being aggressive in terms of claiming market share. We will establish our own subsidiaries in these countries and are even considering in-country assembly plant options. In terms of the other countrieswe serve, we will continue to conduct business through local partners.
IM: What are these five target countries?
MM: We are already preparing for our arrival in the US, which we think will end up being a major market for ARAMAC given the high concentration of small mines with galleries under 16 sq.m that are currently using very old – and inefficient – machines.
We also have Mexico, Peru and Canada as target markets. We then see Kazakhstan and Uzbekistan as one entity given our historic strength and presence there as Aramine.
All the other countries outside of these five – the likes of thePhilippines, Indonesia, Australia, all of which we regularly sell many machines to – will benefit from service that is still much improved from what we have offered previously, but the major focus will be on those other countries I have listed.
IM: When you look back at the narrow-vein market niche you started making machines for in 2006, what has changed in terms of the way these operations are run and the way your machines need to operate?
MM: We started in this niche 20 years ago as there was a clear opening in terms of those mines under 12 sq.m being under-served by the major OEMs. At the same time, as dealers of the major equipment makers in certain regions, we were conscious of not competing with these same companies in the larger size class markets for underground equipment.
What we soon realised was that many of these small mines were using machines and methods that were not safe. We were soon able to improve this and ensure that their operators went home at the end of every shift – something that should be a prerequisite for those working in mining. We are proud of this.
Another source of pride for us – one that has become increasingly important – is to contribute to Europe’s push to produce more minerals for the global economy. Knowing that we are contributing to this effort by producing the most efficient and productive machines available – some of which are controlled remotely – for these small mines to extract raw materials is respected and appreciated by governments, including our own in France.
IM: Do you think you will have to change your existing machine development blueprint for the slightly larger 4 x 4 m cross-section market? What might this entail, and how will you stand out from the other OEMs selling machines to this market?Â
MM: Going from 12 sq.m galleries to 16 sq.m galleries is a big change. Galleries that big move a much larger volume of product, conduct larger blasts, etc, so you have big machines on the ground. Our current portfolio of trucks and loaders are not optimised for this size of mine, but because they are already very efficient with a high tractive force and optimised components, they are already competitive when compared with equipment from other companies.
As part of our growth vision for ARAMAC, we are preparing bigger machines, with our next size of machines being 7-t payload loaders and a 22-t payload truck.
While I can say, on our smaller models, we offer a far superior product, we know we are competing against some excellent products in this new size class. We are also aware that if we stick to our successful blueprint with smaller machines – building efficient, reliable, competitive and innovative products – we have a compelling offering for smaller mine operators. By focusing on our core abilities and building long-lasting relationships, we are confident we will capture market share.
IM: Will these larger machines also come with battery–electric possibilities?
MM: Yes, when it comes to battery-electric technology, we will also offer this in the bigger size class. This technology – which we have developed internally and are very happy with – will also continue to be used with our Quick Replacement System (QRS) platform, which, in terms of simplicity and efficiency, has been proven to work very well in the industry.
Encouragingly, we are also seeing the prices of LFP-based prismatic battery cells – which we currently source form China – coming down. We’re confident that by the time we come out with our 7-t payload loader in a couple of years, the diesel-powered and battery-powered machine prices will be close to parity.
In terms of engineering these bigger machines, we will follow a similar pattern to what we are doing today – developing a skeleton that can be scaled up and down depending on requirements. That is what we have completed with our L440B, which is a 4.6-t payload loader that, with a bit of engineering, can be scaled up to a 6.2-t payload battery loader (the L640B).
Both the main frame and the powertrain on these machines are common, but, when it comes to the 6.6-t payload machine, we will offer a higher bucket dumping height, a bigger operator cabin, etc.
IM: Speaking about the L440B and those new target countries for ARAMAC, do you currently have any of these units running in those locations?
MM: We have one operating in Canada at the NORCAT test mine. We also have at least one of these going to a customer in Europe on a ‘trial to buy’ contract. We expect to sign similar contracts for the L440B in South America and Kazakhstan too.
But there is also demand for the diesel version of these machines too and, as an industrial company, we must service this demand. The diesel versions are taking a little more engineering on our part though as, depending on the region in which they will work, they may need to use a different engine to our standard baseline, or have to have aftertreatment for the exhaust system.
IM: Anything else to add on this new strategic direction?
MM: So, let’s talk about that ‘skeleton’ again. On top of the L440B and L640B that we have in the portfolio, our engineers are preparing a complementary truck. This will use the same skeleton from the L640B and utilise the same energy module and powertrain, albeit with a different ratio to reflect the need for less torque and more speed on the truck. It will also have different wheels and axles to the loaders. The truck will effectively be a 14-t payload or 16-t payload truck with a 3-4 times payload match with the L440B or L640B.
Lastly, we don’t want to forget about our Smart Parts program and Aramine in this conversation. Everything that ARAMAC does in terms of inspiring more machine sales will have a beneficial impact on the service offering of Aramine. When we evaluate that and the fact that all major equipment makers are set to make more sales on the back of increased raw material extraction needs across the globe, we are confident in the growth prospects for both companies.
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