Digging Deeper: Bringing together sustainable mining and the lowest cost of production

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Mining is one of the oldest industries in the world. While it dates back to ancient times, today mining industry is rapidly modernizing. 

Sustainable mining and reducing the cost of production are two of the focal points of this modernization. Cummins has been a part of this journey since the Cummins Model F engines powered the very first diesel shovel in 1926.

"The mining industry is now an innovation hub. Mine sites feature the latest technologies from remote control equipment to driverless (autonomous) trucks. In fact, two of the world’s five largest mining companies were on The Most Innovative Companies 2019 list,” said Beau Lintereur, Executive Director - Power Systems Aftermarket and Global Mining Markets at Cummins.

“Going forward, miners will be increasingly leveraging these and other innovations for a key objective: sustainable lowest cost of production.”

Let’s look at how the mining industry’s key priorities have changed through the industry’s ups and downs. We will then dive into sustainably achieving the lowest cost of production in mining.

Recent history of mining; commodities boom and the new normal

  • Commodities Boom: 2010 and 2011 were remarkable years for mining industry. The sector had increased the amount of basic metals and iron ore mined by 15% each year. This was the fastest pace in our recent history. The key priority for the mining industry during this era was machine uptime and availability across types of mining. Machine uptime is the time duration the equipment was ready to work when it mattered. The cost of running the equipment did matter, but the priority was having the equipment available to generate revenue. 
Recent history of modern mining; commodities boom and the new normal
Recent history of modern mining; commodities boom and the new normal

 

  • The Decline: The commodities boom came to a screeching end in 2013. Mineral and ore prices plummeted. The key priority for the mining industry quickly shifted from machine uptime to total cost of ownership (TCO). It was all about the cost of fuel, repairs, maintenance and others. The bottom of this cycle was in 2016. Several players within the mining industry found themselves focused on the immediate cost of survival. The emphasis then was investing on aspects of the business directly linked to the short-term survival of the company. 
  • The New Normal: Then the industry has emerged from the decline and the commodity prices started to stabilize. Meanwhile, an adjacent development was also taking place. It was the rise of advanced analytics. The mining industry took full advantage of advancing analytics and associated technologies. Miners have rapidly pivoted their priority towards the lowest cost of production (COP). COP brings together TCO and the amount of production achieved. COP is a more comprehensive look at mining operations than focusing only on TCO. 

Achieving sustainable mining and the lowest cost of production together

COP helps the mining industry optimize its operations with a balanced focus on cost and production. COP was a great starting point for the industry coming out of the decline. Going forward, sustainably achieving the lowest COP will be the next step for the mining industry. There are two reasons for this:

  • Social license to operate: Communities, employees and shareholders put increasing scrutiny to companies’ sustainability practices. This goes beyond mining sector. For mining industry, the growing momentum of social license amplifies the importance of sustainable lowest COP.
  • Risk management: Risk within mining operations is far beyond financial risks. It could include fatalities and irreversible damage to the environment. With so much at stake, miners work to improve their already advanced risk management procedures. This strive for progress will increase the importance of adding sustainability to COP.

Let’s look at two examples on how sustainability and COP come together.

No. 1: Today’s mining engines have reduced environmental impact than their predecessors

Today, a typical Cummins engine used in a mining application emits 90% less particulate matter (PM), oxides of nitrogen (NOx) and hydrocarbons (HC). This is in comparison to engines produced before the year 2000. Less NOx means less smog. Less particulate matter means less accumulation of these particles on ground or water. 

Diesel mining engines have reduced environmental footprint
Diesel mining engines have reduced environmental footprint

It is especially important to pay attention to PM. This is because mining sites tend to be in rural areas near lakes and forests. Extensive accumulation of PM could affect the diversity of the ecosystem in these areas.

Today’s engines also offer more power compared to their older versions. This results in improved productivity for miners while the harmful emissions are reduced.

No. 2: Improved fuel efficiency lowers cost of production and the carbon footprint

Fuel cost is approximately one third of the total cost mining companies incur in operating their equipment. Meanwhile, higher fuel efficiency also reduces emission of greenhouse gases such as carbon dioxide. Combine these two, and you have a winner.

Keeping mining’s cost of production down while protecting the environment is critical for the industry and Cummins. The newest Cummins Tier 4 Final engines (over 751 horsepower) offer up to 3%to 5% better fuel efficiency than Tier 2 engines. Moreover, there is no compromise to engine power and reliability. This fuel efficiency improvement is a result of in-cylinder improvements and the use of Cummins Selective Catalytic Reduction (SCR) aftertreatment technology. There are over 400,000 engines around the world that use this SCR technology.

Sustainable lowest cost of production does a good job bringing together two key priorities: sustainability and economics. Cummins will continue to bring new technologies ranging from advanced analytics to various powertrain solutions to life. These technologies will help the industry advance in sustainable lowest COP.

Interested in additional mining perspectives? You might also like: 

Wanting to deepen and broaden your expertise in the mining industry? Sign up below to receive periodic insights, trends and news customized for the mining industry. To learn more about mining power solutions Cummins offers, visit The Power of Cummins Mining

Aytek Yuksel - Cummins Inc

Aytek Yuksel

Aytek Yuksel is the Content Marketing Leader for Cummins Inc., with a focus on Power Systems markets. Aytek joined the Company in 2008. Since then, he has worked in several marketing roles and now brings you the learnings from our key markets ranging from industrial to residential markets. Aytek lives in Minneapolis, Minnesota with his wife and two kids.

Unpacking CARB’s trucking rules, regulations and legal challenges

Semi truck driving

The state of California has positioned itself as a central figure in a revolutionary shift from a 100-year path of internal combustion engines (ICE) used in commercial transportation. Within a three-year span, the state has adopted the world’s most stringent commercial vehicle regulations: Advanced Clean Trucks (ACT), the Heavy-Duty Engine and Vehicle Omnibus Regulation and Advanced Clean Fleets (ACF). The three rules work together to gradually transition commercial trucks, buses and vans to zero emission vehicles (ZEVs).

The stringent regulations have generated plenty of praise, collaboration, concern and even legal challenges. Turning away from familiar and trusted technology will be anything but easy but the industry is proving it is possible.

Questions around ZEV cost and capability relative to ICE are not taken lightly by Cummins nor other players in one of the nation’s most critical industries.

As with prior emissions legislation, amendments will undoubtedly emerge as collaborative efforts between policymakers and industry continue. That is currently the case with the Omnibus regulation as proposed amendments are under review by the Environmental Protection Agency. Some of the amendments in question focus on diesel engine testing, warranty periods and aftertreatment. 

“Omnibus, the amended version, got resubmitted to EPA and is calling for increased legacy allowances,” explained Tom Swenson, Director of Global Regulatory Affairs.

Emission legislation passed by the California Air Resources Board (CARB) requires a Clean Air Act waiver from the EPA when it proves stricter than federal policy. CARB has been receiving federal waivers for its emissions policies since the 1960s given its ongoing battles with air pollution.

Geographical features such as valleys and mountains appearing throughout the state can hinder air circulation to keep pollutants hanging around.

“The San Joaquin Valley in California, for example, is like a little trap of NOx,” Uma Vajapeyazula, North American Market Strategy Director, described.

Eager to overcome its unique air pollution issues, CARB has kept a close eye on ZEV development. Once board members decided the technology was up to the challenge of replacing ICE trucks up to Class 8, CARB adopted the Advanced Clean Trucks (ACT) rule in June of 2020. To date, it’s the only one of the three ZEV polices that has received an EPA waiver.

 The ACT rule requires that manufacturers who certify chassis or complete vehicles with a gross vehicle weight rating (GVWR) greater than 8,500 lbs. sell zero-emission vehicles (ZEV) at an increasing percentage of their annual California sales starting with the 2024 model year. The annual reporting began with the 2021 model year.

 OEMs struggling to sell ZEVs can buy ZEV credits from other manufacturers to unlock sales of their ICE vehicles. However, there’s concern that funds used to purchase ZEV credits could impact their bottom line.

 “One question is, ‘Will ZEV credit trades happen between competitors?’” Swenson said.

In September 2021, CARB adopted the Heavy-Duty Engine and Vehicle Omnibus Regulation to “drastically cut smog-forming nitrogen oxides (NOx) from conventional heavy-duty engines. The Omnibus Regulation will significantly increase the stringency of NOx emissions standards and will also lengthen the useful life and emissions warranty of heavy-duty diesel engines for use in vehicles with a gross vehicle weight rating (GVWR) greater than 10,000 pounds. The more stringent NOx emission standards begin with the 2024 model year engines and become more stringent with 2027 and subsequent model year engines.”

 Extending warranty coverage will necessarily increase the cost of equipment, Swenson noted.

 Advanced Clean Fleet legislation rolled out next in April 2023. ACF requires fleets to gradually replace acquired ZEVs while allowing them to retain ICE vehicles throughout their useful life. Per CARB, useful life is defined “as the later of either: 1) 13 years, beginning with the model year that the engine in the vehicle and was first certified for use by CARB or United States Environmental Protection Agency (U.S. EPA), or 2) the date that the vehicle exceeds 800,000 vehicle miles traveled or 18 years from the model year that the engine in the vehicle was first certified for use by CARB or U.S. EPA (whichever is earlier).”

ACF compliance challenges

In August, EPA held an ACF waiver hearing that included a full day of testimony, comments were also accepted online. One of the companies to participate was Sundance Stage Lines in San Diego. The charter bus company currently uses diesel-powered custom-built buses with a 1,000-mile range and 20-minute refueling time. It has stated opposition to ACF’s zero-emission mandate.

“As BEVs, range is cut to approximately 200 miles (substantially less in cold weather), at which point the vehicle requires a four-hour charge at a dedicated high-voltage charger before it can proceed another 200 miles,” Sundance Stage Lines writes. “Thus, any group attempting to access an area not serviced by either an airport or a nearby charter operator will be forced to make other arrangements. This will have substantial negative effects both on motorcoach operators and the traveling public.”

Among the concerns expressed, Sundance noted that “four major motorcoach manufacturers offer at least one of their models as battery-electric vehicles (BEVs.) In converting the vehicle to run as a BEV, all of the buses have lost over 70% of luggage space because the volume of batteries needed to give the vehicle a reasonable range requires the batteries and the accessories normally driven by the engine be mounted in the underfloor luggage compartments.”

Sundance also pointed out the high cost of ZEVs versus ICE. In the case of motor coaches, the company contends the price “more than doubles, from $650,000 each to over $1,400,000 per bus - a cost per unit over twice as high as any other electric vehicle.”

In its ACF waiver request submitted last November to EPA, CARB writes that “anticipated developments will likely both reduce the costs and increase the number of commercially available ZEVs, including projected decreased costs of batteries and improvements in battery energy density due to economies of scale and increasing pace of technology development and decreased costs of other ZEV components resulting from the projected increased production of ZEVs.” 

Legal battles persist

At least three lawsuits that have emerged to challenge the enforcement of ACF make it California’s most contentious trucking legislation to date. 

The first complaint was filed in October 2023 by the California Trucking Association in the U.S. District Court for the Eastern District of California. The challenge has resulted in the state holding off full enforcement that was originally slated to go into effect on January 1, 2024. CTA’s 32-page complaint argues that the state needs a waiver from the Environmental Protection Agency prior to enforcing ACF since its policies exceed federal mandates.

In response, California put ACF enforcement on hold for most fleets pending receipt of an EPA waiver. CTA noted on its website that waivers typically take 9-12 months to process. The state has been enforcing ACF for public fleets since applying for the waiver in November

“They’re implementing and enforcing ACF for state [California] and local government fleets,” explained Mari Mantle, Cummins Regulatory Affairs Manager. “It's the high priority, federal and then drayage [fleets] that they're waiting on the waiver for.”

CTA’s complaint also highlights concerns of ZEVs relative to internal combustion. Acquisition costs of ZEVs, according to CTA, are “projected to be 2 to 6 times higher than comparable ICE tractors”; ZEV range “is less than half that of an ICE truck”; additional refueling stops needed for ZEVs will require additional time and infrastructure and thus limit more route options historically utilized by ICE trucks.

In April, American Free Enterprise Chamber of Commerce (AmFree Chamber) and Associated Equipment Distributors (AED) filed suit also challenging California’s ACF regulation.

In May, the Nebraska Trucking Association topped a list of plaintiffs that included seventeen states opposing ACF: Alabama, Arizona, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, South Carolina, Utah, West Virginia and Wyoming. Several of these same states joined a suit last year against the Advanced Clean Trucks rule.

Tom Quimby headshot

Tom Quimby

Tom Quimby, On-highway Journalist, has a broad range of experience covering various topics for local and national periodicals. His stories and photos have appeared in The Washington Times and more recently in Commercial Carrier Journal, Overdrive, Hard Working Trucks, Equipment World and Total Landscape Care. Tom has reported on Class 1 – 8 commercial vehicles since 2015. A graduate of the University of Southern California, Tom enjoyed growing up around hot rods, dirt bikes, deserts and beaches near San Diego. He now calls Northwest Florida home.

STEM Project Unites Children in the UK and Uzbekistan

Zoom call with West Park School and the Children's Home

If you ever doubted the ability of young minds to grasp what many adults would consider complex concepts, then you'll be amazed by the achievements of two groups of young children - one in a school in northern England, and the other 4,000 miles away in an orphanage in Uzbekistan.

With the support of Cummins, children ranging from six to twelve years of age have managed to bridge the language, culture, and time divide. They are collaborating with great success on building a basic electric racing car.

The story begins with a visit by Cummins to Rudmash Export Service, which has been representing Cummins in Tashkent, the capital of Uzbekistan, since 2018.

Rudmash has an impressive list of clients in mining, construction, gas, and power generation.

It is also a highly respected supporter of community initiatives, a key focus for Cummins.

During the visit, Amit Kumar, Cummins' Technical Territory Manager for the Commonwealth of Independent States (CIS) region, mentioned the work he was doing with local schools involving the Greenpower Education Trust in the UK.

Amit suggested that Rudmash might consider introducing local children to the fantastic learning opportunity that comes from building an electric car.

The Rudmash executive team loved the idea and reached out to their friends at the local orphanage (Children’s Home 22), about the proposed connection with children from West Park Academy – a primary school near Cummins' manufacturing plant in Darlington, England.

Students at the Children's Home working on the car
The children from Children's Home 22 building the car

Speaking through a translator, Rudmash Sales Manager Mr. Mavlonberdi Akhmedov said there was no hesitation from the orphanage. "Everyone was excited about it," he said. "When we showed them pictures of the car, the children's eyes lit up with interest.

"The only issue we encountered was not being able to involve the older children, but I think Amit has something in his mind for them. It will involve a similar collaboration with a UK school on a larger electric car that they can fit in!"

Over in Darlington, teacher Mr. David Fraser and his group of 9 to 11-year-olds were thrilled at the prospect of working with children from another country.

Students from West Park Academy
The children from West Park Academy

"Before our first session, I showed the children a map of Uzbekistan and explained how the time zones worked," Mr. Fraser said. "Tashkent is four hours ahead of us."

"When they started hearing a different language, they were a little hesitant although still excited. However, towards the end, once they got used to the translation pauses, lots of questions were being asked."

"They adapted very quickly, and every session with the orphanage has become more engaging. The children have greatly benefited from the relationship. It's been a great learning experience."

The car involved in the project is called the Greenpower Goblin G2. It comes as a flat-pack kit including chassis, wheels, steering, disc brakes, a 24V electric motor, and two 12V batteries.

Students at West Park Academy working on the car
The children from West Park Academy building the car

"The project is all about inspiring young children to take an interest in engineering in a fun and innovative way," said Amit Kumar, who earlier this year received special recognition at the North-East England STEM (Science, Technology, Engineering, and Mathematics) Awards for his years of dedication to STEM Education.

"The build introduces children to basic mechanics and electronics and might be the first step on the pathway to a career in engineering or another STEM field.

Mr. Fraser said the children soon started discussing aspects of the car such as frames, brakes, and steering geometry. There was a lively question-and-answer session on different materials that could be used to design and make the car's body. Their last session was about controls and driving.

"There are also other general discussions, as the children are eager to learn more about each other's countries," said Amit, who leads the sessions.

Students at the Children's Home looking at the car drawing
The children from Children's Home 22 talking about a drawing while on a zoom call

Rudmash service engineer Mr. Abdullayev Shakhzod said the children were enjoying the experience of working in teams.

"It's a fantastic new chapter in the history of a place that has a storied past. It was established in 1942 during the Second World War to care for evacuees from all over Eastern Europe. Children of over 40 different nationalities have been cared for by this children's home.

"The home is named Antonina Pavlovna Khlebushkina after the woman who ran it in the early days. She would be so proud of what is happening there today.

"As the summer vacation times differ in the two countries, the West Park school children have already finished building their cars, while the Uzbekistan car is about 40% complete.

"When the children return from their summer camp in September, they will start the rear axle, motor, and electrical components. Then they can take it for a drive," Amit said.

"Just before their summer term ended, the West Park children conducted a demonstration for their new friends in Tashkent. They set up a track and showcased driving the car on it. It was a great success."

Mr. Akhmedov, speaking through a translator, mentioned that the management team at Rudmash was considering how the project could expand beyond the children's home and into schools and youth organizations throughout Uzbekistan.

Mr. Akhmedov praised Cummins for their support of the project. "They have shown great responsibility at every stage and been very proactive, always striving to ensure things are done right.

"This is just the beginning for these children. It's already motivating them to learn more and develop their skills in broader technical applications.

"I would say that this project is not only important for the children's home but also for our city of Tashkent and the Republic of Uzbekistan, as it is nurturing an educational culture that is highly valuable. I can't thank Amit and Cummins enough."

Amit expressed that it's a privilege to help Cummins inspire young people about engineering and science from an early age.

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