The Green Machine
Electrification and alternative fuels provide a sustainable future for the industry
Chile and Australia account for 70% of the current use of clean energy in mining, according to S&P Global Clean Energy Technology. Chile leads the way with 4,500 MW of current clean energy use, nearly three times the use of second place Australia. Mine electrification can slash energy costs by 40 to 70%. A fully electrified mine powered by renewable energy can reduce its carbon footprint by 60 to 80% compared to traditional operations according to McKinsey. As a key enabler of the net-zero economy, the mining sector will need to reduce emissions by at least 85% by 2050 to meet Paris Agreement targets. Nine of the top 10 publicly listed mining companies have already set scope 1 and 2 net-zero goals for 2050.
In Chile, miners are marching towards electrification to realize lower emissions. Antofagasta Minerals plans to reduce scope 1 and 2 emissions by 50% by 2035 and to cut scope 3 emissions by 10% by 2030. Iván Arriagada the firm’s CEO emphasized: “Replacing and reducing diesel consumption in our trucks by piloting a trolly-assist method using electricity, using autonomous trucks which are more efficient, and introducing automation at our mines are keys to the strategy.”
Australian based BHP partnered with Caterpillar and Finning to replace its fleet with diesel-electric trucks, which will run under trolley operation. BHP expects to reduce haul truck emissions by around 30% with this solution.
The burden to lower emissions has been placed on original equipment manufacturers (OEMs), said Darko Louit, CEO of Komatsu Chile: “The primary focus for reducing emissions in mining operations are mining trucks, responsible for the generation of about two-thirds of the greenhouse gas emissions in conventional mining operations.”
“Chile is on the vanguard of innovation and absorption of innovative products. The mining market is looking to these solutions to minimize environmental impact.”
Leandro Farina, General Manager, South America, JCB
Electrifyingly Sustainable
OEMs are advancing rapidly in the application of electric solutions within the Chilean mining sphere, said John Swift, managing director Chile and Argentina at Epiroc: “Since 2022, when we commissioned our first electric loader at El Teniente, we have expanded to converting diesel machines into electric machines. If we are committed to sustainable productivity and transforming the mining industry, we must be committed to electrification. Three years ago, electrification was a concept; now it is materializing into viable products,” Swift emphasized.
Electrification was the rationale behind Komatsu’s creation of Power Agnostic Diesel Truck program, said Louit: “These trucks are designed to switch power sources throughout their operational life as new technologies become available, a feature built into their original design. This will facilitate adoption of the latest technologies without the need for renewing the whole vehicle.”
Crane manufacturer Multiservice Grúas is also working towards more a sustainable product, said Felipe Fossatti, the commercial manager: “Our units now use a single engine instead of two, saving costs while maintaining mobility. We are also exploring hybrid equipment with electric superstructures and combustion-powered truck bases.”
Electrification requires substantial investment in mine infrastructure to support increased electrical power needs. An open-pit iron ore mine that replaces its 27 diesel haul trucks and associated equipment with electric alternatives would more than double its electricity consumption, as reported by McKinsey & Company. The technology is not the bottleneck, said Ricardo Pachon, vice president sales Andean and Southern Cone at Sandvik: “The technology for electrification is ready. The main challenge lies in the scale of investment required for a full transition. A realistic and manageable goal is to aim for the complete replacement of the fleet with electric equipment within five years.”
To solve issues with infrastructure, Chile is working collaboratively, said José Ignacio Urcelay, managing director at Scania Chile: “In terms of infrastructure in Chile for electromobility and autonomous vehicles, significant progress has been made in developing a collaborative ecosystem. Both the government and public/private entities are contributing, with investments made in gas and electromobility infrastructure, including a corridor connecting Puerto Montt and Antofagasta. In Santiago, investments have been made by both electric companies and vehicle manufacturers.”
Infrastructure aside, attitudes are changing. “Managing change and fostering conviction is crucial. We need to proactively manage change to facilitate the transition to electric equipment and integrate innovation. This includes providing opportunities for the younger generation in mining, who has a strong foundation in technology,” said Julio Piña Alegría, commerical director at XCMG.
“Large-scale mining operations are internally developing and applying innovations like electromobility. Clear parameters for long-term development are essential.”
Felipe Fossatti, Commercial Director, Multiservice Grúas
Fueling the transition
Chilean OEMs are also looking to alternative fuel sources to reduce greenhouse gas emissions.
“Cummins has approved the entire line of diesel high horsepower engines, ranging from 19L to 95L, for use with unblended paraffinic fuels (EN15940), commonly known as renewable diesel, including hydrotreated vegetable oil (HVO),” said Miguel Flores, the general manager. “This can lead to potential reductions of net greenhouse gas (GHG) of up to 90% compared to conventional diesel, depending on the specific feedstock and fuel pathway. All industrial engines are now capable of running on 100% renewable diesel or any blend of renewable and conventional diesel, without any modifications to the engine,” Flores continued.
Hydrogen combustion engines are a viable path toward long-term, high-performing, sustainable, productive equipment, according to Leandro Farina, general manager, South America at JCB. “It is not a solution that will occur in the short term, however, in the medium term the infrastructure will likely be ready to receive these solutions. Latin America, and Chile particularly, is the region that is the closest to using this solution,” said Farina.
Luckily, the appetite for new technologies is expanding: "In recent years, there has been significant progress in the adoption of new technologies in the Chilean mining sector, and there is still much potential to grow," said Christophe Boinelle, director of MC System.
In 2021, the Chilean government announced that all vehicles sold in Chile after 2035 will be electric, which includes mining equipment and trucks. OEMs will be the key to providing innovative solutions and adapting existing technologies to meet the industry's evolving needs.
“We are pioneering the use of EVs, focusing primarily on the transport sector with electric trucks for last-mile logistics – a move well-received by our customers. Moreover, renting electric buses to mining companies has yielded positive results.”
Pablo Lam, General Manager, SK Rental
Article header image courtesy of Glencore