Business Solutions, Liebherr, Yellowgate

Bundanoon: Future is rock-solid

 

Bundanoon Sandstone Quarry in NSW has acquired the vital machine it needs, thanks to Yellowgate Group’s popular Rent Now, Buy Later solution.


If you’ve always believed that renting machinery instead of buying it outright is poor economics, then Yellowgate Group would have you think again.

The equipment rental specialist says that one of the biggest misconceptions throughout the equipment industry is asset hire equates to dead money.

National Sales Manager, Noel Rosario, says the notion is simply untrue.

“There are a variety of reasons that make renting machinery a better option compared to buying or using traditional financial instruments,” he said.

“For example, a business could be experiencing high growth today, but deep down they have a burning desire to eventually own the equipment outright tomorrow.

“They could be seeking a manageable operational expense that isn’t cash intensive up front; and is unlikely to affect their future borrowing capacity.

“Or they could be still setting up following a recent acquisition of a pre-existing business – and the primary focus is to preserve working capital, reap the benefits of the asset immediately and capitalise on it later.”

Noel explains, the company has found that its “sweet spot and solution” is tailor-made for owner-operators, contractors of all tiers, and multi-nationals who share a similar perspective.

“They understand that access to the right equipment – through a flexible solution like our Rent Now Buy Later (RNBL) product – shouldn’t be a barrier to growth,” he said.

The innovative solution provides a flexible option that sets clients on the path to future asset ownership.

Accumulated rental payments may contribute towards the overall cost, making it an appealing choice for those looking to eventually own the equipment.

“In addition to the flexibility of our product, it helps that we have built a reputation for deploying assets anywhere in Australia, fast,” Noel said.

“But most importantly, we’ve got the ability to grow with our customers businesses as they adjust their fleet requirements.”

The Bundanoon experience

One happy beneficiary of Yellowgate’s RNBL solution is Bundanoon Sandstone Quarry in the heart of the Southern Highlands in NSW.

Travel out to the site and you can’t help but notice a big yellow machine in action, using a buzz saw attachment to carve rocks like a hot knife through butter.

The appliance is a Liebherr R 945 Excavator, which plays the primary role in extracting stone for all of the quarry’s products.

As Bundanoon Chief Executive Officer Troy Stratti explains, the three-metre Stratti rock saw is used to cut sandstone in-situ in a grid pattern.

“Bundanoon has some of the densest sandstone in Australia, but the power of the Liebherr allows us to cut with ease,” he said.

“Retrofitting the excavator to the rock saw has revolutionised our extraction process at Bundanoon.

“The implement is engineered for high torque at low speed, and the dedicated hydraulic pump of the Liebherr R 945 delivers consistent oil flow and pressure, free from interference by other control movements in the excavator’s hydraulic circuit.

“With one of the three hydraulic pumps solely committed to the attachment circuit, we have been able to fully exploit this capability.

“By maximising the torque output of the saw — traditionally adjusted to suit various brands of excavators with lower torque output — we have significantly enhanced our cutting efficiency.”

Bundanoon boasts a storied history deeply intertwined with the fabric of Australia’s architectural heritage. Established in 1850, it stands as one of the nation’s earliest sandstone enterprises, pioneering the extraction and refinement of the natural resource.

“Looking ahead, we plan to capitalise on the excavator’s versatility by retrofitting our dual and multi-blade saws as the quarry continues to develop,” Troy said.

“The unique benefits provided by the Liebherr R 945 have shaved months off our extraction process, underscoring its pivotal role in our operation’s success.”

Troy said it was also easy to teach new, youthful operators how to use the Liebherr technology.

“Developing a youthful team for the succession of the quarry is paramount to Bundanoon’s vision,” he said.


Recent Year 12 graduate Taiga Stratti is the operator of the Liebherr excavator and rock saw. His involvement is part of Bundanoon’s aim to train and equip the next generation with the diverse skills necessary to continue delivering world-class Australian sandstone.


Partnering with the best

Bundanoon General Manager Brendan Matthews said that the procurement of the Liebherr R 945 has been critical in setting up Bundanoon Sandstone Quarry for growth.

“We thoroughly researched the entire market and considered a range of approaches to acquire our new equipment,” he said.

“One company stood out: Yellowgate. Their vision is to be the partner of choice for Australian businesses who are looking for equipment to grow their business.

“Yellowgate caught the eye with their appetite to do business, willingness to support growing companies, and their detailed knowledge of mining equipment.

“The structure of the RNBL solution is financially attractive. Rental payments are considered an OPEX (Operational Expense) – making them tax-deductible; but those payments can become equity if we choose to purchase at the end of the 12-month rental agreement using our CAPEX (Capital Expense).”

Looking to the future

Liebherr Australia National Major Account Manager, Earthmoving and Material
Handling Division, Scott McClement, said the Generation 8 Liebherr crawler excavators such as the R 945 were “a look into the future”.

“Liebherr completely revised the basic concept of the machines in order to offer customers even higher-performance and more comfortable products,” he said.

“The highlights of the new crawler excavator generation include the higher engine power, the heavier counterweight for higher bucket capacities and minimal fuel consumption.

“Other innovations are the boom concept with modified head for better boom forces and the optimised load curve, which leads to fuel savings. All engines comply with the requirements of EU emission stage V.”

The Liebherr with attachment carves through the rocks at Bundanoon.

Scott said the new crawler excavators have higher digging forces and greater traction of the undercarriage, while the swing torque of the upper carriage was also optimised.

These improvements to the excavator result in higher performance and improve fuel efficiency.

“Low fuel consumption and enormously high- performance guarantee outstanding economic efficiency,” Scott said.

“In addition, these machines stand for high reliability and maximum comfort. These features make Liebherr crawler excavators powerful, productive and efficient in mass earthmoving, material processing and particularly quarrying.”

There are four machine control systems available for the Liebherr G8 crawler excavators:

  • 2D iCON IXE3 “3D Ready” passive Leica designed for Liebherr
  • 2D iCON IXE3 “3D Ready” semi-automatic Leica designed for Liebherr
  • 3D iCON IXE3 passive Leica designed for Liebherr
  • 3D iCON IXE3 semi-automatic Leica designed for Liebherr

“The R 945 has great reliability and productivity for working up to 12 hours per day on sandstone quarrying, which Bundanoon valued,” Scott said.

“Liebherr is committed to supporting our customers throughout the purchasing process to ensure they receive our machines at the optimal time for their business.

“This support may come directly from Liebherr or through facilitating processes with third parties such as Yellowgate.”

For Troy and Brendan, they know that the Yellowgate plan definitely helps set up the quarry for future growth and consolidation.

“While Bundanoon Sandstone Quarry is not a new mining site, the resource that sits beneath our 160-acre property is expansive and will see the business through another 175 years,” Troy said.

“The vision of Bundanoon Sandstone is to preserve the stone industry for generations to come.

“What that means is supplying world class sandstone to market, and being a leader in defining quality, as well as developing Australia’s masons of the future by transferring knowledge and techniques to the next generation.”

Brendan said because Yellowgate truly understood business and equipment, Bundanoon sees huge potential to continue the partnership for many years.

“In fact, we believe that we will grow faster and be able to take on more opportunities with Yellowgate as our partner,” he said.

“Big projects require big equipment. Yellowgate has the vision to assess project feasibility.

“They are willing to support us by acquiring equipment using their RNBL product.”

 

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