Enabling miners to achieve the lowest cost of production sustainably

mining area

For the past decade, mining operations have been focused on lowering cost of production, merging together Total Cost of Ownership (TCO) and amount of production achieved.  

Today, a third factor is impacting the equation: sustainability. Lowering costs and boosting production only go so far, considering the increasing importance of protecting the environment and the communities where mines operate. 

While the factors contributing to the ability to sustainably achieve the lowest Cost of Production (COP) are extensive and complicated, it’s important to understand the many areas where a miner’s choice in engine manufacturer can have significant impact.  

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How does your choice of mining engine affect the cost of production? 

To start, production cost is impacted by many contributing cost and production factors. 

Cost factors

Mining engines affect fuel and repair and maintenance cost factors.

Fuel:

Fuel maps and calibrations, the calculated rates at which fuel is consumed when engines are running, are application-specific, and Cummins Inc. works with end-users to achieve the best fuel economy by matching the right engine technology to the proper horsepower and torque for specific elevation and duty cycles. As one example, in 2022 one Cummins mining customer was able to achieve a 7% fuel economy improvement, saving 17 million liters per year in fuel and $16 million a year through custom calibration and optimized speed settings across the fleet. This initiative also resulted in a reduction of 45,900 metric tons of carbon dioxide equivalent. 

For autonomous trucks, Cummins can optimize calibrations even further, allowing for smoother, more efficient engine operation than when driver to driver variability is involved. 

Cummins Tier 4 engines offer up to 3-5% better fuel efficiency than Tier 2 engines, with no compromise to engine power and reliability. This significantly reduces fuel costs.

Sustainability Bonus: Less fuel consumption leads to fewer emissions. In the project mentioned above, the customer slashed 45,900 metric tons of carbon dioxide equivalent by improving fuel economy. Plus, all Cummins high-horsepower engines are approved for use with unblended renewable diesel (or HVO), as well as varying blends of biodiesel. 

Repair & Maintenance: 

Extended service intervals can greatly reduce unnecessary downtime and wasted consumables. Cummins will work with end-users to conduct a TCO analysis for new engine purchases, calculating whole life schedules based on equipment usage and determining recommended service intervals for various components.  

Another way that Cummins extends service intervals is through condition-based maintenance, made possible through advanced digital solutions, PrevenTech® for Mining and Fleetguard FIT. This allows miners to reduce consumables, such as coolant and filters. Costs can add up quickly for routine oil and filter changes, so why dispose of anything prematurely? 

Preventing progressive damage and potential failures through PrevenTech is another way to protect finances—and production. Through advanced telematics, proprietary algorithms and customizable alerts, PrevenTech alerts operators when something is wrong—or trends are pointing to a future failure—allowing miners to act proactively. For example, when a fuel injector fails, it can lead to progressive damage if not fixed promptly.  

Considering that quality mining engines can be rebuilt up to 3-4x before the core reaches its end of life, it’s important to consider the engine manufacturer’s rebuild process. Cummins has 13 Master Rebuild Centers (MRCs), including our newest state-of-the-art facility in Poland, and all engines rebuilt by Cummins receive all current product updates and a new zero-hour warranty. 

For operators looking to manage costs even more precisely, Cummins offers a Cost per Hour (CpH) contract, providing a fixed or level cost for maintaining Cummins engines over the anticipated running hours. 

Sustainability Bonus: Extending service intervals leads to a reduction in consumables, ultimately sending less waste to landfills. Cummins also recycles and rebuilds parts when possible, further reducing environmental impacts.

Production factors

While managing costs is critical, it means nothing without maximized production. Mining engines also affect production, specifically where payload, cycle time, availability and utilization converge. 

Payload:

Cummins has an engine for every mining need, including our 4,400 hp QSK95, recognized for the highest power on the market for the highest load capacity. 

Cycle Time X Availability X Utilization: 

Cummins’ engines are built with uptime as the priority. Unlike some alternative options, Cummins mining engines are designed as industrial engines first, including industrial grade components made to run at 50+% load factor.

This commitment to industrial-grade design enables our engines to perform in extreme conditions. Our customers operate in high altitudes from Chile to the Tibet region of China, as well as extreme temperatures from the Canadian arctic to the Australian outback. 

Just as Cummins’ extensive network and remote monitoring solutions slash R & M costs, they also boost availability. Specifically, Cummins has an extensive inventory of service engines available to keep miners running during maintenance cycles, and our 13 high-horsepower Master Rebuild Centers, 600+ distributor locations and 3,700+ high-horsepower technicians are strategically located around the globe to serve mining customers quickly and effectively.

Bottom line, Cummins has built its 100+-year legacy on providing the world’s most reliable engines. In fact, an Arizona mine site experienced 43% improvement in mean time to failure and 69% improvement in mean time to repair after switching from non-Cummins engines to Cummins engines.

Sustainability Bonus: As miners crush production, they can be confident that Cummins Tier 4 engines —utilizing advanced selective catalytic reduction (SCR) technology—emits 90% less harmful emissions today compared to engines produced before the year 2000. 

Sustainability

As mining companies strategize to meet both near- and long-term sustainability targets, Scope 1, 2 and 3 emissions all come into play. 

As Cummins continues to innovate, our power solutions will continue to positive impact our customers’ Scope 1 emissions. 

Beyond our industrial mobility power solutions, Cummins is also powering mine site infrastructure optimization, enabling mine sites to reduce Scope 2 emissions through flexible, autonomous energy management solutions. 

And as a power technology company serving the world in many ways, we take our own sustainability practices very seriously, impacting our customers’ Scope 3 emissions.  Since 2014, we have partnered with customers on more than 700 fuel economy projects, saving them $11 billion in fuel costs and avoiding 30.5 million metric tons of CO2. 

View Cummins 2022-2023 Sustainability Progress Report to learn more about the significant progress Cummins is making in environment, social and governance & economic arenas, including our PLANET 2050 environmental sustainability strategy. 

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Cummins Inc.

Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from internal combustion, electric and hybrid integrated power solutions and components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, microgrid controls, batteries, electrolyzers and fuel cell products.

Cummins Custompaks are being used for water management as Thailand struggles with its water crisis

CustomPak on site

Water crisis

Sixty Cummins Inc. CustomPaks are in service in Thailand as part of a critical water management plan aimed at easing the country’s water crisis – a crisis that has caused enormous economic and social damage and stirred conflict among communities.

Over the past several decades, Thailand has continually faced water problems caused by severe drought. Water reserves in dams and reservoirs are insufficient while water resources are often contaminated with toxins caused by urban communities and the industrial and agricultural sectors.

Severe flooding is a threat, too, at a time when the realities of climate change are hanging over the country.

As a result, the allocation of precious water resources, which must be shared among various stakeholders including new and existing industry, large and small agriculture, and cities and villages has become a flashpoint.

Kittithanapat Engineering Co. (KTP), has been involved in the water management system since 1996, working closely with authorities such as the Royal Irrigation Department, Department of Water Resources, Bangkok Metropolitan Authority and others.

CustomPaks on site

600 hp CustomPaks

To help KTP meet its often urgent requirements, Cummins DKSH (Thailand) has recently supplied 60 Australian-built CustomPaks – 45 powered by Cummins’ X15 engine rated at 600 hp, and 15 powered by the QSL9 rated at 325 hp. These fully self-contained powerpacks are emissions certified to Tier 3.

The CustomPaks are coupled to hydraulically-driven, large-volume submersible water pumps sourced by KTP from US company Moving Water Industries (MWI); KTP is the exclusive distributor in Thailand for these MWI Hydroflo pumps.

Prior to Cummins’ involvement, KTP was using another diesel engine brand but service support wasn’t up to the standard required.

Long-serving KTP engineer Kittisak Thanasoot says Cummins DKSH’s reputation for technical and aftersales support along with the reliability of the Cummins product were a key reason behind KTP’s decision to specify the CustomPaks for the Royal Irrigation Department.

The ability of Cummins DKSH to respond to short delivery times was also important.

“Supplying large quantities of high horsepower diesel engines for emergency situations such as flash flooding can be a challenge for KTP,” says Kittisak Thanasoot.

“Responding to the needs of the government agencies to manage such problems in a timely manner and with least impact on communities, KTP has found the answer in our partnership with Cummins DKSH.”

Power, pride and passion

Parked semi truck

The switch back to Cummins power has been beneficial for iconic New Zealand company Uhlenberg Haulage. It's all about whole-of-life costs.

Uhlenberg Haulage is closing in on 60 years in business, having been founded in 1966 by Mike and Carol Uhlenberg.

Based in Eltham, Taranaki, in New Zealand’s North Island, the operation is today owned and operated by their sons Chris, Daryl and Tony Uhlenberg.

Describing the Uhlenbergs as “old school family truckies”, Daryl talks about the company’s time-honored journey with a definite tone of pride, especially the work of his parents in laying the foundations for what is today an iconic fleet in its own right.

Cummins Inc. made its debut in the Uhlenberg fleet in 1971 with an NH250 powering a second-hand Kenworth K923 used in logging. A second Kenworth, a new W924 with a Cummins NTC335, followed soon after hauling an LPG tanker.

The Uhlenberg operation today comprises 40 prime movers and a variety of trailing gear to cater for the myriad of a jobs the fleet is involved in.

A number of Peterbilts feature in the fleet although Kenworth is now the brand of choice with six new units to be delivered over the next 12 months to cater for business growth.

Cummins’ X15 Euro 5 engine rated at 550 or 600 hp is the preferred power specification, with 18 red engines currently in the fleet.

Uhlenberg family in front of truck

Whole-of-life support

“The switch to Cummins has been a very good experience for us. We have nothing but praise for the Cummins organization,” says Daryl.

“The whole-of-life picture is the key thing for us and we’ve got that nailed with the support we get from Cummins – parts availability, scheduled maintenance, life expectancy and in-frame rebuilds.

“So the red engines turn up, we run them to life, which is 900,000 to 1.2 million kilometers, and then Cummins does an in-frame overhaul in a timely manner. If there’s an issue, parts and support are close by.

“The support we get from Cummins Palmerston North is fantastic, second to none.”

Daryl recently looked under a Kenworth that was in the workshop for a service and was surprised to see no oil leaking from the one-million-kilometer X15. “I remember when I was a fitter we had to wear a raincoat when working under a truck,” he jokes.

Fuel agnostic

Acknowledging that the push to decarbonize is now “very real”, Daryl likes the idea of Cummins’ fuel agnostic concept where one base internal combustion engine, optimized to run on diesel, can also be customized to run on ultra-low and zero-carbon fuels like renewable natural gas and hydrogen.

“My father was a pioneer of linehaul trucking in New Zealand and he always embraced new technology. He was never scared of it,” he says.

“I tend to be a little more cautious but I can see where a 500 hp natural gas or hydrogen engine would work for us in short haul applications,” he admits. “We’re certainly willing to look closely at these alternative fuel technologies when suitable infrastructure is in place.”

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