The Evolution of Mining Equipment
Electrification and automation improve productivity
In early March 2023, a group of the world’s largest copper producers came together and publicly pledged to reach net zero emissions by 2050. The group, including Codelco, BHP, Glencore, and Freeport McMoRan, intend to reach this goal by turning to renewable energy, becoming more efficient, and utilizing scrap collection.
Progress is being made, although the speed of progress must rapidly increase. In 1990, the average emission intensity of refined copper production was 5.4 t carbon dioxide equivalent (CO2e) per t of copper, while by 2018, that number had dropped by 13.4% to 4.6 t CO2e. Central to this shift is transformative innovations in the equipment and technology segment.
As equipment becomes more technologically advanced, the increased efficiency of the machines has enabled dramatic reductions in energy use. Simultaneously, the equipment industry is dramatically investing in automation and electrification, moving away from fossil fuel use to rapidly reduce the carbon footprint of mines.
Even as trends in electrification, automation, and circular economy have become more popular, the way in which mining companies engage with equipment and technology providers has shifted as financing has become less steady. “Previously,” explained Andrés Osorio, CEO of STM, “the client would commit up front to a complete project, beginning to end, and be willing and able to advance significant sums to carry out not only the engineering design but also the purchases, and so on. Now, however, they are focused on reducing risk in their investment.”
To respond to this, STM now allows clients to commit to smaller project segments rather than the complete project.
Simultaneously, equipment providers have had to manage the ongoing, if somewhat abated, logistics challenges that sent costs skyrocketing over the pandemic, with containers prices rising steeply from US$2,500 to upwards of US$20,000. In this sense, long-term contracts were less of a boon. Jaime Balboa, CEO of SCV, stated: “It was particularly challenging for us because we have long-term contracts, where the conditions often cannot be changed. An increase of 100 – 150% in transport costs without the ability to pass those price increases on was difficult.”
The challenging logistics situation gives an advantage to companies that produce and design within the country and are, therefore, less vulnerable to the vagaries of the supply chain. Prowinch, for example, offers customized equipment for clients made in Chile by Chilean engineers. “The Chilean industry needs to invest in creating complex technology,” said Agostino Mattoli, regional CEO of the company. “We must rely on something other than the rest of the world, as some challenges and issues are specific to Chile.”
“Reducing the carbon footprint means substantial interest in electric vehicles and, if diesel, significantly more efficient vehicles.”
Ricardo Pachón, Business Line Manager, Andean and Southern Cone, Sandvik
Despite the more short-term approach to contracts and the pressures of high costs on profits, the long-term goals of major mines are clear: improved safety, increased productivity, and more sustainable operations. Technology and equipment companies are at the core of that shift.
The energy is electric
Across the board, innovations in electrification are redefining mines. Sandvik recently launched machines that are both electric and automated. Ricardo Pachón, business line manager for the Andean and Southern cone area at Sandvik, described: “Previously, we had electric equipment, but it was impossible to automate them. Now, we can effectively have a fully electric and automated mine.”
Epiroc, too, has made dramatic strides in electrification. In 2022, the company introduced its first electric underground machines into Codelco’s El Teniente, which managing director John Swift described as “an enormous success for us, Codelco, and, frankly, the future of Chilean mining.” Swift identified the move towards electromobility as driven both by ESG priorities and by the technical requirements of underground mining: “As mines go deeper and more surface mines go underground, that will push the technology in electrification and other areas, as the underground space is much more complicated.”
Major companies are investing full throttle in the area. Komatsu Cummins, for example, is developing a power agnostic truck project, expecting to begin operating field units of battery-powered, fully electric haul hucks soon. “We are working towards fully electric, automated underground equipment, which is a central strategic line of growth for Komatsu, under the premises of ‘no blasting, no batch, no diesel’,” said Darko Louit, CEO.
“Both the mining industry and the wider society have become significantly more focused on environmental and ethical issues.”
Miguel Flores, General Manager Chile and West South America, Cummins
The shift to electric equipment must be paired with a focus on reliability. At Expomin, XCMG showcased three electric machines, including a 27-ton excavator, a 60-ton off-road truck, and a front loader. Julio Piña Alegría, commercial director of XCMG, highlighted the importance of efficiency in terms of maintenance costs: “Every day, companies must reduce costs to be more competitive, and our new generation of electric equipment enables our clients to manage costs while improving sustainability metrics.”
Many mining companies are electrifying their personnel transportation fleets. Andes Motor, a Chilean distributor of international commercial vehicle brands, has jumped all in to electromobility. In addition to providing the majority of electric city buses to Santiago, to company is a leader in electric vehicles for the mining sector. “We just sold the first electric Sany mining machine in Chile,” said Luis Izquierdo, CEO. “In the mining industry, there is a significant need to transport people, for which mines want to use electric vehicles.”
As prevalent as electrification has become, it is not the only option for green energy under consideration in the mining industry. With a burgeoning green hydrogen industry in Mejillones, Chile is poised to become a leader in green hydrogen, improving both its sustainability and energy independence. Cummins, an international motor provider, recently launched Accelera, a subsidiary, to unify its green hydrogen operations. The company already has five plants worldwide dedicated to electrolyzer production. Miguel Flores, general manager Chile and West South America at Cummins, said: “Within Chile, we have a dedicated position for an executive focused on hydrogen, ensuring we stay focused on decarbonization.”
“Safety processes are complex, and there is a significant difference between theory and practice. We are developing an innovative simulator using virtual reality that imitates situations involving our machines, allowing our personnel to familiarize themselves with challenging conditions before they occur.”
Felipe Fossatti, Commercial Director, Multiservice Grúas
Towards asset-centered operations
Central to a shift towards the circular economy is changing how companies think about their inputs. SKF is currently launching its RecondOil Box, a product with a patented process to recondition industrial oils so that they never need to be replaced. “The goal is for our clients to stop viewing oils as a consumable and shift to seeing them as an asset that can be regenerated rather than changed,” said Carlos Lahura, managing director of the Andean region at SKF.
Turning oil into a service business model centered around changing the oil rather than disposing of it lowers CO2 emissions.
Hilti, too, is focused on encouraging the client to rethink how they utilize the company’s tools with a circular economy mindset. Alfonso González, sales director Energy, Mining, and Industry, said: “We aim to transform the current situation in which a client changes a lithium battery and then disposes of it. In our business model, we tell our clients to use our tools as if they are rented, and when they are finished using the tool or the contract is over, we take the device back and extract every reusable element.”
This focus on reusing equipment is central to creating a more sustainable industry. The carbon emissions of creating a new piece of equipment from scratch are dramatically higher than maintaining and recycling machinery. Marcelo Celis, general manager of Robert Bosch Chile and Rexroth Chile, pointed out: “Every company across Chile is trying to go carbon neutral. It is a priority across the industry. An effective way to reach that goal is to focus on modernizing existing equipment rather than purchasing entirely new.”
However, once a piece of equipment can no longer be repaired, it must be recycled to lower the carbon emissions of the company. In many cases, the equipment company leads the charge on this push. Michelin, for example, recycles tires from their customers and then converts those waste products into new tires. “Michelin currently has a strong focus on sustainability and circular economy, so we recently installed a recycling plant in Chile,” said Rafael Santo, general manager for Chile, Peru, and Bolivia at Michelin. “We already have tires for cars and light trucks composed of 45% recycled material, and one of our goals is that 100% of our tires will be recycled by 2050.”
Article header image courtesy of XCMG