ABB Ltd. (ABB) received a $24 million order to provide its comprehensive ore hoisting solution for Xstrata Zinc’s George Fisher Mine (GFM) located near Mount Isa in north-west Queensland, Australia. By 2013, the ore hoisting new solution will increase GFM’s production by 30% as the ground-mounted solution will extract ore from a depth of 1,135 meters. The order was booked during the third quarter of 2011.
Xstrata Zinc’s resources in and near Mount Isa, including GFM, is the largest zinc resource base in the world. The resource base is believed to contain approximately 600 million metric tons of ore and 36 million metric tons of contained zinc metal. The integrated hoist solution from ABB will not only enhance the production capacity of the mine but will also ensure better dependability and safety.
All the electrical and mechanical equipment for the new ground-mounted mine ore hoist system will be designed, provided and commissioned by ABB. The delivery of the contract is expected to be completed by the second half of 2013.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry with a growing installed base. ABB Ltd. has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
Based in Zurich (Switzerland), ABB is a power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa.
Currently, we are maintaining a Zacks #4 Rank (short-term Sell recommendation) on ABB Ltd.
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