Mining Equipment and Drilling
From electrification trends to AI-Centric exploration
In mining, each decision must be fine-tuned. The selection from tires to haul trucks must be scrutinized, since choosing them appropriately will directly impact costs, efficacy, productivity, and socio-environmental impacts. In this context, OEMs are making strides and funding research and development to improve their equipment. In today's mining landscape, mining companies strive to maximize ore extraction at minimal costs and balance it with safety and environmental stewardship. Thus, trends like electrification and automation are gaining momentum, and mining companies are either adopting these solutions or closely monitoring their development.
“As mines extend their depth, the need for increased ventilation to operate diesel equipment becomes a significant challenge. Some operations must transition to battery electric vehicles, not just for ESG reasons but because diesel equipment becomes impractical at specific depths.”
Maryse Lyonnais, Underground Business Manager – North America (ML), Epiroc
Mining equipment
The mining industry has been associated with high carbon emissions because it relies on diesel-powered equipment. According to McKinsey & Company, mining accounts for approximately 4% to 7% of worldwide greenhouse gas emissions (GHG), and mining vehicles account for an estimated 30% to 50% of the total GHG. Mining "green metals" can also be done in a "greener" way, which would have multiple benefits, such as reducing energy costs by as much as 40% to 70% and improving health conditions for miners, especially in the underground segment.
However, adopting new solutions is not an easy task. During an interview with Epiroc about the long-term benefits associated with BEVs, Maryse Lyonnais, underground business manager North America, stated that the main challenges are infrastructure and the initial investment required: "It is essential to consider the bigger picture. In the long term, substantial fuel, maintenance, and ventilation cost savings can be realized. As mines extend their depth, the need for increased ventilation to operate diesel equipment becomes a significant challenge. Some operations must transition to battery electric vehicles, not just for ESG reasons but because diesel equipment becomes impractical at specific depths," she added.
Epiroc has managed to introduce BEV equipment, like the Epiroc Scooptram and Minetruck models, and a Boltec BEV is set to arrive in US by the end of 2023. "This brings the total of our electric machines in operation to three. We anticipate this will create momentum in the region and are excited to witness its positive impact," commented Lyonnais.
In the surface segment, Epiroc expanded its surface drill autonomous fleet. Several factors are pushing for more autonomous solutions: Increased productivity, safety, efficiency, and maybe, most importantly, a changing labor force. For Matthew Inge, manager for drilling solutions, automation, and digitalization at Epiroc, automation is a double-sided coin to address the labor shortage and the need to produce more: "As fewer US mines are coming online, the industry must produce more while adapting to the changing labor environment."
Companies across the Western US are collaborating with these OEMs to convert their existing fleet into autonomous. For example, in September 2023, Freeport-McMoRan and Caterpillar announced a collaboration to convert the mining company's fleet of 33 car and 793 haul trucks at its Bagdad Mine in Arizona to an autonomous haulage system (AHS) using Cat MineStar Command for hauling. "In approximately three years, we will be the first large-scale operation in the US to have a fully autonomous haulage fleet. This will drive improved efficiencies, which will help us on the ESG front. It will help us overcome the labor shortage challenges the industry is facing, and it is also a steppingstone as we think about the path to electrification for decarbonization," commented Joshua Olmsted, president and America's COO of Freeport.
Empire Southwest is an Arizona-based dealer that has a long history working with Freeport, and that acquired Cashman Equipment Company in Nevada earlier this year. Dennis Sorensen, vice president of Empire Southwest, explained that throughout 2023 the company has been completing the branding transition to achieve complete integration: "By comparing best practices, we have identified innovative solutions, benefiting our critical clients. Our goal is to provide exceptional support for Nevada clients while maintaining our commitments to our long-standing Arizona clients."
Regarding automation, there is a prevailing notion that embracing cutting-edge technologies in new projects is akin to starting with a blank canvas. However, Sorensen sees benefits in the gradual application of automation in existing operations. "Transitioning an existing manned fleet to autonomy allows for a smoother transition with continuous production while learning and implementing the technology. Despite unique challenges in both scenarios, the goal is significant—the deployment of autonomous systems to safely maximize efficiency and productivity in the operation," he finalized.
Drilling
Despite not reaching the same levels observed in 2022, at least until October 2023, drilled projects surged to a five-month high, driven by an uptick in various electrification metals, according to S&P figures. Among the top jurisdictions reporting drilling, Australia leads with up to 102 projects, followed by Canada with 75, and the US with 33 projects.
Premier Drilling is a Nevada-based drilling provider that has observed a notable increase in demand for its services, particularly in core exploration. The company has three operational rigs but aims to expand resources and geographical access. "Our goal is to have eight teams. While our primary focus has been on Nevada and California, we are expanding our operations into Arizona, Utah and Idaho in 2024," said James Stephens, client service manager.
Many service providers benefit from highly portable equipment and rigs, which are convenient for the often-remote locations where many mining activities occur. For instance, Alaska is crowned as a prominent mining jurisdiction due to its untapped natural resources and potential for valuable deposits. However, the challenging weather conditions and vast land area make it a harsh environment for exploration. In the Alaskan mining jurisdiction, Alaska Drilling & Competitions stands out for its local expertise and utilization of the Delorean rig. "The primary goal in constructing these rigs was to ensure they were ultra-mobile and tailored explicitly for remote areas like Alaska. However, their mobility is not limited to Alaska; they can be transported virtually anywhere," shared David Ross, president and co-founder.
The company recently ventured into the mining industry with the Whistler gold-copper project from U.S. GoldMining, which came with a "learning curve," according to Ross. Still, they achieved coring rates in the range of 200-220 feet per day by the project's conclusion.
Despite the observed activity, a persistent sentiment suggests that new deposits are becoming harder to find, coupled with a decline in ore grades, inflation, and a labor shortage. These challenges have positioned drill service providers in a situation where they must reinvent how they assist their clients in achieving their goals. That is the case of Veracio.
Boart Longyear, one of the leading providers of drilling services, noticed that improving the quality of orebody knowledge was critical to exploration and resource development and invested substantially in technology development around orebody knowledge through its Geological Data Services. "As these technologies became full-scale products and started to have global adoption, the company recognized that by having a technology company sit within a drilling services company, the technology was not as available to the worldwide mining market as it would be if separated" explained JT Clark, Veracio's CEO, adding that, ultimately, the company "graduated" from the Geological Data Services to operate with autonomy.
Veracio offers three primary platforms to deliver AI-centric data sets: TruScan, an expandable platform that uses XRF hyperspectral LiDAR and photography to augment knowledge of ore body; TruProbe, which captures information from the downhole environment; and TruSub, which captures data from the drill string itself, monitoring the performance of a diamond bit as it penetrates through the ore body.
In the wake of AI and its benefits in exploration, JT Clark argued that its effectiveness in mining is constrained by working with datasets designed for human consumption. Clark emphasizes the existence of an information gap that must be addressed to harness the potential of AI in the mining sector fully: "The leaders in mining understand the challenge that we need to bring not just AI capabilities into the industry but create AI-centric datasets that will unlock the potential of AI technology in mining. As ore bodies become smaller, deeper, more challenging, and lower grade, for us to produce critical minerals to support the energy transition economically, we must be more accurate and targeted in how we understand and develop ore bodies," he concluded.
Article header image courtesy of Epiroc