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? También puede interesarle: 

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.

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.

How is the United States investing in clean energy?

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Our planet is facing a dire crisis: carbon dioxide concentrations in the atmosphere continue to soar above record highs. If gone unaddressed, the collective stress of climate change will produce an irreparable impact. Our health, energy, water, and food ecosystems are at risk. 

As it stands, there are many long-term effects of climate change. In North America, climate change is forecasted to cause decreasing snowpack in the western mountains. It will also lead to a 5–20% increase in yields of rain-fed agriculture and great intensity of heat waves. In fact, over the last five years, the United States has incurred roughly $120 billion a year in damages as a result of natural disasters caused by extreme weather and climate events.

Beyond natural catastrophes, climatic risks to the United States will have a cascading effect on the country's interconnected ecosystems. Reduced labor and overall economic productivity, and altered crop yields, will disproportionately harm lower-income and marginalized populations. These groups lack the resources to prepare or cope with extreme weather and climate events.

The world is investing in clean energy innovation

Combating the intensifying climate crisis requires a strategic combination of research and development (R&D), innovation, technology — and bold attempts.

Around the globe, countries are investing in clean energy to contribute to a livable planet now and for generations to come. In 2022, the US passed the Inflation Reduction Act, which includes a historic $370 billion investment to address the climate crisis. The Inflation Reduction Act provides tax credits and incentives to power homes, businesses, and communities with clean energy by 2030. The Act will increase investments in the fastest-growing power generation technologies, solar and wind. It will also advance cost-saving clean energy projects and protect two million acres of national forests. These initiatives are in addition to substantial tax credits and rebates offered to families and businesses in the United States.
Consequently, a stronger clean energy economy will contribute to overall economic growth and competition. As a result, there will be millions of new well-paying jobs for Americans to make clean energy.

It is possible to start decarbonizing now

Governmental policy strategies and investments in decarbonization technologies are part of the solution to produce increasingly cheap, dependable, and clean energy.

Strong communities and vibrant economies depend on a healthier planet. As a global power technology leader, Cummins is in a unique position to power customer success by leading during this energy transition. We intent to do so by providing customers with the right technology at the right time, understanding of their needs and applications.

We think of this journey to carbon neutrality in two distinct and complementary ways. First, by innovating zero-emission solutions and introducing them in markets and applications where the infrastructure, development and deployment are ready. Secondly, by advancing internal combustion engines through efficiency improvement and by running them on cleaner alternative fuels for a well-to-wheels solution.

Through Destination Zero, we are advancing low- and no-carbon platforms. This includes diesel and natural gas engines, hybrid, and electric platforms, as well as powertrain components, controls, and related technologies.

Join Cummins in powering a better tomorrow

Cummins environmental sustainability strategy includes goals timed for 2030. Progress toward the reduction of carbon emissions from company plants and facilities — in addition to our products — is in full swing. For more than one hundred years, we have brought technological solutions to market. As a power solutions leader, we will continue to power a more prosperous world for today and tomorrow. Are you ready to consider investing in new power solutions?

Traci Kraus headshot

Traci Kraus

Traci Kraus is a Director of Government Relations where she leads US federal advocacy for Cummins. She focuses on energy, climate, hydrogen, transportation and budget legislative and regulatory issues. 

Prior to joining Cummins, Traci worked for former U.S. Senator Russ Feingold.  She has a Master's in Public Administration from the George Washington University and B.A.s in Government and Politics and Communication from the University of Maryland in College Park. She is originally from Chicago, and now lives outside of Washington, D.C. with her husband, Aaron and two children Liam (8) and Sloane (5).

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