The Quest to Square the Circle
Technology and sustainability driving Chilean mining's transformation
Chile has one of the most ambitious roadmaps towards decarbonization globally, with the country aiming to achieve carbon neutrality by 2050. This is a major challenge, particularly due to Chile’s mountainous, longitudinal geography, which can prove cumbersome for electric grids, transportation, and fuel consumption. These obstacles impact OEMs as well, which have to adapt their products to such a daunting context while also complying with government sustainability requirements and their clients' needs concerning safety and environmental responsibility.
As Luis Villalón Spoerer, general manager at Hilti, stated: “Mining companies are looking for solutions that enhance operational efficiency, improve worker safety, and reduce environmental impact, all at the same time. Our product and service offerings are strategically aligned to meet these interconnected challenges.” The company is working towards complying with these requirements, minimizing disruption within the current workforce.
All these concerns point to automation as the solution, one of the key trends in the sector, particularly as incidents such as the one that occurred in Ancash, Peru, continue to mar the industry. Closely related to automation comes electrification, yet another challenge, given Chile’s aging mining infrastructure. To complicate things further, decreasing ore grades compound all of these technological challenges, putting machinery under more physical and energetic stress. Fortunately, according to InvestChile, mining companies invest US$15 billion annually in machinery and technology, underpinning a will to surmount these challenges.
Opportunities in adversity
Declining ore grades are a major challenge for the whole Chilean mining value chain, with copper ores passing from an average grade of 0.90% in 2015 to 0.74% in 2023, according to market intelligence firm Project Blue.
“In Chile, we are seeing that the copper ore grades are declining. This means that miners need to move more material to produce the same amount of copper they were producing in the past. So, the customers are requiring larger machines with advanced technology to meet their needs. We are even considering developing new types of machines to meet these requirements,” summarized Tetsuya Kitagawa, president and CEO of Hitachi Construction Machinery Latin America.
Recognizing the potential environmental and safety impact that larger bulks can imply, the company is focusing on new monitoring software that improves efficiency thanks to data diagnostics, and has partnered with Envirosuite to reduce noise and dust produced by the increased stresses their machines endure in Chile.
José Ignacio Urcelay, managing director at Scania Chile, declared: “Each client has a product customized to their requirements, and I believe this is what sets us apart. With decreasing ore grades and, therefore, an increased focus on productivity, adaptability is as important as ever. Furthermore, with more ore being mined to combat declining grades, the solutions we offer will be more customizable and therefore more effective in Chile.”
“Chile is among the most progressive countries in the region. The scale of its mining operations and the clear national focus on decarbonization have positioned Chile as a leader in the adoption of green energy solutions.”
Miguel Flores, General Manager, Cummins Chile
This underscores one of the unique challenges posed by decreasing ore grades. With all mines being different in design and needs, solutions have to be tailored for each client and each mine. Keeping in line with sustainability concerns, Scania recently launched its Super line in Chile, enabling up to 8% fuel saving, and its Super Heavy Tipper line, which is undergoing tests running on Hydrotreated Vegetable Oil (HVO), a fuel made out of organic residues, for four major mining companies.
Also working on HVO solutions is engine manufacturer Cummins. “One of the most notable advancements is the approval for the use of HVO, a synthetic fuel, in our engines ranging from 19 to 95 liters. The fuel can be used either in full or as part of a diesel blend. In Chile, we recently carried out a dynamometric test at our workshop facilities using a blend of 80% diesel and 20% HVO,” Miguel Flores, general manager, explained.
Moreover, Cummins also acquired First Mode, a company specializing in hybrid solutions. Flores remarked: “One of First Mode's main innovations is a hybrid battery kit for traditional diesel mining trucks, capable of reducing fuel use by up to 30%, depending on site conditions. Chile will be the first country to pilot this system, with a six-month trial to monitor performance. We aim to begin commercial rollout by 2027.”
This underpins that the challenges posed by decreasing ore grades extend beyond customization and handling larger bulk, also necessitating increased fuel input. Furthermore, these innovations position Chile at the forefront of mining innovation worldwide.
“There is no way back regarding electrification, with battery life being the most challenging aspect today. All OEMs must ensure that the equipment will be able to work under all possible circumstances for the promised number of hours.”
Fran Benito, Corporate Business Manager, Andes Maq
In this regard, Komatsu also has solutions to increase fuel efficiency. “Komatsu Cloud, an ecosystem designed to capture and leverage data from equipment and production systems, allows us to gather information into a central data lake, which can be used to optimize operations,” commented Darko Louit Nevistic, CEO of Komatsu Holding South America and Komatsu Cummins Chile, adding: “Another key innovation is our Power Agnostic truck platform. This approach allows for flexible power source transitions, from diesel to electric to potentially hydrogen fuel cells in the future.”
TotalEnergies, which recently opened a lubricants blending plant in Chile, is also contributing to fuel efficiency. Daniel Fellhandler, general director at TotalEnergies, explained: “Our lubricants are highly technological, allowing up to 4% fuel savings in mining fleets, which has significant environmental and operational impacts. Additionally, we offer biodegradable lubricants, ensuring minimal environmental impact. Innovation is central to our operations.”
Michelin is also advancing digital solutions that contribute to enhancing performance. “Through tools like MEMS 4, DBox, and Better Haul Road, we help clients monitor conditions in real time and manage tire performance; allowing for data-driven decisions, reduced tire wear, optimized fleet performance, and fuel efficiency,” said Rafael Santo, general manager of Chile, Bolivia and Peru.
“We believe that technological innovation is key to making mining more attractive to younger professionals. By introducing cutting-edge technologies, we help position mining as a forward-thinking, innovative industry.”
Jose Luis Villalón Spoerer, General Manager, Hilti
Autonomous and electric: The next frontier
Having established that carbon neutrality is a priority for both the government and the industry, and that decreasing grades imply heavier consumption, several companies have rolled up their sleeves to find solutions to tackle dependency on fossil fuels.
Sandvik remarks that the demand for electric and autonomous solutions has dramatically increased, with their presence in the country almost doubling in the last 12 months. But Chile’s infrastructure is still not ready for this, despite challenges going beyond the material. “The bottleneck is in personnel training. I estimate it takes three to four years to train a professional who can autonomously manage an automation project. For electrification, there are several challenges. First is regulation; there is no clear regulation regarding electrification processes and permits, especially for underground mining. Second is infrastructure, as most Chilean underground mines are brownfield expansions rather than greenfield projects, requiring considerable investment for partial electric operations while still maintaining ventilation and coexisting with diesel machines,” Ricardo Pachón, vice president of sales Andean and Southern Cone at Sandvik, explained.
This is the reason why many clients are looking towards hybrid solutions instead. “We first approached automation through electric vehicles, a step which was very successful for us, but things seem to have reached a halting point in this regard. There are still no autonomous solutions for most of the equipment we work with, or at least competitive ones. Only in remote-controlled vehicles for underground mining were there important advances, and also in trucks,” reasoned Pablo Lam Esquenazi, of SK Rental.
EPIROC, despite also manufacturing fully electric machinery, views hybrid technology as the best alternative until problems surrounding electrification can be solved. “Many mines’ infrastructure cannot support becoming fully electric. That is why hybrid technology is an excellent next step while battery technology continues to improve, for example. EPIROC is continuously pushing forward the boundaries of battery technology while also developing hybrid or trolley systems,” says John Swift, general manager of Southern Cone at the company.
“Chile serves as a hub for testing new mining solutions. Many of our tire development and validation programs are conducted in partnership with Chilean mines, thanks to the high quality of local operations and our strong presence in the country.”
Rafael Santo, General Manager Chile, Peru & Bolivia, Michelin
“Electrification brings many advantages beyond the lack of emissions, such as not paying for increasingly expensive fuel. The challenge is battery life. Vehicles should have enough battery life to complete a 12-hour shift for electrification to be feasible, but right now, technology only allows for an eight-hour shift with a 40-minute charge. Only two years ago, the total battery life was only enough for a six-hour shift, so probably within a year, this milestone should be met,” said Fran Benito, corporate business manager at Andes Maq.
Focusing on automation, Multiservice Grúas sees many opportunities to enhance workplace safety by using robots. Felipe Fossatti, commercial director of the company, argued: “We want to work with robot dogs to enhance the reporting of safety and our control of the area of operations. It will allow us to better map the terrain where the crane will be located without risking lives, providing a great wealth of information without having humans there.”
This will allow for unmanned craning operations, which also increases efficiency as the robots can scout locations inaccessible to humans.
Sandvik Ground Support, formerly DSI Underground, manufacturer of anchoring and monitoring solutions for mines, is also investing heavily in autonomous solutions, aiming at improving safety. “Sandvik is developing a completely autonomous system working with AI. It has been tested in Sandvik’s tunnels in Finland, so once in the market, it will signify a revolution,” Carlos Leigh, general CEO of Latin America, asserted.
The company is also devising other solutions, delving into safety, such as the Ultrabolt, that can map in real time the structural integrity of the mountain above it.
The challenges OEMs are facing are by no means small; some of them even seem intractable, but they are turning difficulties into opportunities to improve their products and devise ingenious new ones, which, thanks to technological advancements, allow for the envisioning of a future where Chilean mining manages to square the circle in addressing its complex challenges.
Article header image courtesy of Andes Maq