Kinross Gold and Caterpillar renew global alliance; agree on five-year deal

Canadian miner Kinross Gold announced today they have renewed their global alliance with equipment manufacturer Caterpillar, agreeing on a five-year deal that will include discounts on parts, services and machinery.

Kinross said the agreement represents the framework for doing business with its single biggest supplier for its mining equipment. The company revealed it was able to capitalize on savings of roughly $13 million last year in maintenance, supply chain and continuous improvement projects from the partnership.

“Cost savings aren’t the only benefit,” said Nicholas Macan, Kinross senior manager, supply chain enablement and mobile equipment. Macan, who negotiated the new agreement, expects the alliance to have many operational and supply chain benefits, including helping with continuous improvement innovation – a main driver in lowering operating costs for the company.

“The alliance brings a global relationship with Caterpillar, and their direct support in resolving technical and dealer issues. For example, when we wanted to deliver a 6060 shovel to Round Mountain that had originally been purchased for Tasiast, Caterpillar facilitated the transfer of the sale to the alternate dealer at no additional cost.”

Headquartered in Toronto, Kinross Gold Corp. engages in the production, acquisition, exploration and development of gold bearing properties in the Canada, the United States, the Russian Federation, Brazil, Ecuador, Chile, Ghana and Mauritania.

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