Under the deal, Ambra Solutions and Ericsson will equip miners with systems to automate various processes.
The companies will equip miners with systems to automate ventilation and provide real-time personnel and vehicle tracking along with remote controlling capabilities for equipment.
To do so, Ambra will deploy the Ericsson Radio System portfolio. It is capable of handling next generation 5G networks, which offer higher data speeds.
The solution from Ericsson will help Ambra, a telecommunications engineering company, streamline its offerings, as it is capable of replacing up to 60 WiFi access points.
“The Ericsson products are optimal to deliver the most demanding applications used by the mining 4.0 industry,” Eric L’Heureux, CEO of Ambra Solutions, said in a release. “The reliability of Ericsson products enables more predictable, secure and lower cost connectivity, and mining companies want to use a reliable product that is available worldwide.”
The companies noted that the Ericsson Radio System portfolio is private, and will allow for the digitalization of mining-related tasks in a cost effective way.
“The global mining industry has been vulnerable to challenges of energy consumption, equipment loss and human safety,” said Shannon Lucas, head of Ericsson’s customer unit. “We have designed an easy-to-use cellular connectivity solution to address these issues and deliver efficiency through digital transformation, while creating a path to 5G.”
In 2018, Ericsson and Ambra collaborated on a project in Quebec that is billed as the world’s deepest underground LTE network. The private network, built for an Agnico Eagle Mines (NYSE:AEM,TSX:AEM) mining complex, is located 3.5 kilometers below the surface and enables voice and data services across the LaRonde mine site.
In addition to the cellular services, the network provides multiple Internet of Things applications that are focused on enhancing safety and mining operations. Several applications have been implemented since the initial deployment, such as the automation of ventilation systems and vehicle tracking.
Following the announcement, shares of Ericsson were down 0.8 percent over a two day period and closed the trading session on Tuesday (April 30) at US$9.90. Ericsson has a “buy” ranking on TradingView with 10 verticals in favor, 10 in neutral and eight against.
It has a “moderate buy” ranking on TipRanks with an analyst target price of US$10, representing 1 percent upside from its current price.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.