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Mining Truck Tyres Now Selling for $140,000

The price of mining truck tyres is now higher than the price of certain new luxury vehicles. The huge demand from China has tripled the price of Caterpillar mining truck tyres. The current price of mining truck tyres could even buy you a condominium in the U.S.

3.5 meters wide tyres used on the mining Caterpillar trucks come to $93,500 on the spot market, according to Leighton Holdings, but in 2008 the prices rose to $140,000 thanks to constant demand from China.

You can own a Mercedes SLK-class Roadster for just over $90k as per the car company’s Australian website. Or if you prefer real estate a Miami-Fort Lauderdale apartment will set you back about $75,000, according to the US National Association of Realtors.

The price of tires used in Australia by Newmont Mining Ltd., partner in the nation's biggest open-cut gold mine, increased 4 percent this year, though this was offset by a stronger local currency, said Brian Watt.

Paul Roesler, managing partner of Dortmund-based Tyre Innovators said that the tight tyre supply and high prices become a challenge for mining companies again but we think that the large players have prepared for this and have better contracts with suppliers and have improved stock.

Christian Sealey, a spokesman for Sydney based Leighton Holdings said that where they needed to expand rapidly or where they had a new project, then they had to source tires on the spot market like everyone else. In those situations they're finding some inflation

Rio Tinto’s Gervase Green said that they had appropriate arrangements with long-term suppliers to ensure that these price movements don't affect them. The bigger companies are not all so well prepared. De Beers, the world's biggest diamond producer, is unable at times to use new trucks thanks to the tyre shortage.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

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