Digging Deeper: Tackling the affordability challenge in the mining industry with these three improvements

Mining Trucks

Mining  Equipment Features High Price TagsWith the cost of $50,000 for a single tire and consumption of up to 30 gallons of fuel an hour, it could cost over a million dollars a year to operate a mine haul truck. With such high costs and almost continuous use of equipment, even small improvements yield into major affordability gains for miners.

Let’s define affordability as minimizing the cost to acquire, maintain and dispose the equipment, This first became a focal point for the mining industry at the end of the commodities boom in early 2000’s and continues to be a key focus point to this date. Given the extensive utilization of mining equipment, the primary driver of affordability is on-going costs such as fuel and consumables. For some Cummins Inc. customers, fuel cost by itself is 70% of an engine’s life cycle costs and about a quarter of equipment’s total cost of ownership.

Given the importance of affordability and its significant financial impact, let’s outline three ways the mining industry improves affordability.

No. 1: Leverage fuel savings to improve financial performance

As the fuel continues to be the primary cost for operating the mines, it also offers significant opportunities for savings. One might, inaccurately, think the increasing focus on lowering emissions could increase fuel consumption. In fact, our experience at Cummins shows the exact opposite where most of our newest Tier 4 Final engines (over 751 horsepower) offer up to 3 percent to 5 percent better fuel efficiency than our Tier 2 engines with no compromise to engine power and reliability. 

Our partners have experienced similar fuel savings across different applications. Check out how an iron ore mine that uses 850 million liters of diesel a year has experienced savings worth millions of dollars a year, by combining component technology from both Cummins’ Tier 2 and Tier 4 Final engines.

No. 2: Reduce the use of consumables beyond fuel

Mining Equipment offer SavingsA regular mine truck has a capacity for over 400 gallons of consumables, while your car might have only a few gallons of consumables. Beyond the liquid consumables, mine trucks also have fuel, lube oil, air and water filters that get changed  every 500 to 1,000 hours (about once a month). 

Potential savings grow rapidly when you add up the frequency of changes and equipment usage patterns. For instance, a coal mine in Queensland, Australia experienced a cost savings of 60 percent through reduced filter and oil consumption alone. This has equaled to saving more than $220,000 per year for the fleet of 14 trucks. In a similar case, Colombia’s largest open-pit mine extended change intervals on fuel filters to 1,000 hours and air filters to 2,000 hours with the use of NanoNet™ Fuel Filters and NanoForce® Air Filters to minimize maintenance costs. Miners can further amplify these savings by adapting condition-based maintenance procedures offered by PrevenTech

No. 3: Rebuild your engines with the latest technology for better performance and improved savings

A combination of the cyclical nature of the mining industry, and the rapid advancements in technology introduce a challenge for the miners: how to keep their equipment optimized for their evolving needs. As the engine technology advances, offering lower emissions and fuel consumption, miners seek to reflect these advancements in their existing equipment.

A mine truck, with proper maintenance, could see three to four engine re-builds before the whole chassis needs to be re-built, and miners can improve affordability by optimizing their engines during these re-builds. For instance, one miner in Australia’s Bowen Basin concurrently lowered emissions and total cost of production by replacing the old fuel system with a Modular Common Rail fuel system (MCRS). The new configuration fetured Cummins’ latest innovations in combustion technology from its Tier 4 engineering programs.

"Whether it is through fuel savings or reduced use of consumables, gains in affordability also help on reducing environmental impact and favorably impact sustainable cost of production. Miners can experience these gains by seeking partners, such as Cummins, that are recognized as technical leaders and have a track record in championing the latest innovations in power solution technologies. PrevenTech and FIT are two of these latest technologies that leverage advanced analytics and connectivity in helping customers improve affordability of their operations,” said Sean Lynas, General Manager High Horse Power Business at Cummins.

To learn more about trends in the mining industry follow us on Facebook and LinkedIn. To learn more about mining power solutions Cummins offers, visit our webpage. To learn more about how Cummins is powering a world that’s “Always On,” visit our web page.
 

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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.

Digging Deeper: What will be the mining industry’s key priority in the decade ahead?

Mining railroad

It was not surprising that Fred from The Flintstones was a miner, given mining is one of the oldest industries in the world. The famously pink colored salt you used for dinner last night to bring out the flavors comes from the Khewra salt mine, which dates back to the era of Alexander the Great and is still in operation today.

While the mining industry dates back to ancient times, and Cummins has been a part of this journey since the Cummins Model F engines powered the very first diesel shovel in 1926, today it is rapidly modernizing. 

“The mining industry is now an innovation hub where 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 recently featured 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 with a key goal in their minds: sustainable lowest cost of production.”

Before diving into 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. 

  • MIning industry future focusCommodities Boom: 2010 and 2011 were remarkable years where the mining industry had increased the amount of basic metals and iron ore mined by 15% each year; the fastest pace in our recent history. The key priority for the mining industry during this era was machine availability. This refers to 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.
  • The Decline: The commodities boom came to a screeching end in 2013 with mineral and ore prices plummeting. The key priority for the mining industry quickly shifted from availability 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 and several players within the mining industry found themselves focused on the immediate cost of survival, where the emphasis was investing on aspects of the business directly linked to the short-term survival of the company. 
  • The New Normal: As the industry has emerged from the decline and the commodity prices started to stabilize, an adjacent development was also taking place; the rise of advanced analytics. The mining industry took full advantage of advancing analytics and associated technologies, and has rapidly pivoted its priority towards the lowest cost of production (COP). COP brings together TCO and the amount of production achieved, and is a more comprehensive look at mining operations. 

Sustainable lowest COP will be the key priority for the mining industry in the decades ahead

COP helps the mining industry optimize its operations with a balanced focus on cost and production, and was a great starting point for the industry coming out of the decline. Going forward, sustainable lowest COP will be the next step for the mining industry, driven by two explanations:

  • Social license to operate: Communities, employees and shareholders put increasing scrutiny to companies’ business practices regarding sustainability. While this is not limited to mining, the growing momentum behind social license is to amplify the importance of sustainable lowest COP.
  • Risk management: Risk within mining operations is far beyond financial risks and could include fatalities and irreversible damage to the environment. With so much at stake, miners are expected to improve their already advanced risk management procedures. This strive for progress will increase the importance of adding sustainability to COP.

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

No. 1: Today’s engines are cleaner and more powerful than their predecessors

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

It is especially important to pay attention to PM since mining sites tend to be in rural areas in close proximity to lakes and forests, where extensive accumulation of PM could affect the diversity of the ecosystem.
Today’s engines also offer more power compared to their older versions, delivering improved productivity for miners while reducing the harmful emissions.

No. 2: Improved fuel efficiency delivers better financial performance and lowers the carbon footprint

Fuel is estimated to be one third of the total cost mining companies incur in operating their equipment. Combine this with higher fuel efficiency that reduces emission of greenhouse gases such as carbon dioxide, and you have a winner.

Keeping energy costs 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 with no compromise to engine power and reliability. This fuel efficiency gain was achieved through a combination of in-cylinder improvements and the use of Cummins Selective Catalytic Reduction  aftertreatment technology, which is used by over 400,000 engines around the world.

Sustainable lowest COP 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 help the industry advance in sustainable lowest COP.

To learn more about trends in the mining industry follow us on Facebook and LinkedIn. To learn more about mining power solutions Cummins offers, visit our webpage. To learn more about how Cummins is powering a world that’s “Always On,” visit our web page.

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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.

From farm to table: 100 years of powering the agriculture industry

Cummins engines for agriculture

On the farm and in the field, for over a century Cummins technology has helped farmers around the world. 

Cummins has powered world agriculture since our first engine was launched in 1919. As the company gears up for Agritechnica, here’s a look at our history of innovation in agriculture, as well as our latest developments.

The year 1919 marked the start of the Cummins Engine Company. Founded by Clessie Cummins, a 31-year-old farmer’s son from Columbus, Indiana, with support from banker W.G Irwin, Clessie recognized the benefits of using technology originally developed by Rudolph Diesel in the 19th century.

The single cylinder, HVID engine was the company’s first product, manufactured under license and incorporating Clessie’s improved ignition control. Used for farm pump applications, the HVID was available from 1.5-8 hp. Today, one of only a few surviving 3hp versions will be on display at Cummins’ booth during Agritechnica, Hannover.

Cummins 1919 HVID Engine
The single cylinder HVID engine, pictured here, was the first product produced by the Cummins Engine Co. 

With a rated speed of 600 rpm, the HVID had a displacement of just over 1 litre and weighed 280 kg. Around 3,000 were manufactured by Cummins in Columbus, which is a far cry from the 1.5 million engines the company produced globally in 2018.

Fast forward to 1929, when Cummins extends its innovative engines into on-road technology by installing the Model U engine into a Packard Limousine. Not only was this the first car in the United States to have a diesel engine, it was one of the earliest diesel powered cars in the world. 

The same engine model was later used in the first U.S. diesel agricultural crawler tractor, a six-ton Allis Chalmers Monarch 50 known as “Neverslip.” The 1950s brought the company’s 8.1 and 12.2 litre engines to the world’s first articulated tractor, the Wagner TR, and in 1958 Clessie filed a patent for the famous Pressure Time fuel system - the foundation of today’s common rail fuel systems.

Throughout the decades, Cummins has been involved in a number of agricultural ‘firsts’ – Versatile’s largest prairie tractor Big Roy fitted with a 19 litre, 600 hp Cummins engine; world records featuring Cummins powered machines; and John Deere’s most powerful forage harvester powered by a Cummins QSK19 832 hp engine, to name just a few. 

What’s next?

This week we continue our spirit of innovation, launching the new F3.8 and F4.5 structural engines at the Agritechnica, the world’s leading trade fair for agricultural technology.. Signifying an extension to our agriculture lineup, Cummins’ new structural engines provide compact and capable four-cylinder options for tractors in the 67 – 149 kW (90 – 200 hp) power band. 

Cummins StageV F38 and F4.5 structural engine
Cummins new structural 4-cylinder engine will debut at Agritechnica 2019 in Hanover, Germany.

The engines on display at Agritechnica are the company’s latest innovations for tractor applications and, alongside the six-cylinder B6.7 engine, expand Cummins structural product coverage from 67 to 243 kW (90 – 326 hp). 

“For Stage V, Cummins technology significantly improved the capabilities of our F3.8 engine, with 33% more power and 31% more torque versus its Stage IV predecessor.  Pushing it up to 173 hp has made it a leader in its class,” said Ann Schmelzer, General Manger Global Agriculture at Cummins. “We are now making this product available with a structural block and oil pan for agricultural tractor applications.  As part of our Performance Series range, it will deliver more machine capability and substantial productivity benefits for the farmers who operate Cummins powered equipment.” 

A global technology leader

While the basic physics of the engines remains the same, the precision engineering and technology has changed significantly since Clessie launched the HVID. Cummins has developed key enablers in-house; combustion, air handling, fuel systems, filtration, electronic control and exhaust aftertreatment to get to where we are today. 

The company has made significant strides for Stage V, but the innovation won’t stop there. As a 100-year old company committed to powering a more prosperous world for our customers, end users and the communites we operate in, Cummins will continue to develop clean diesel technology,complimented by our alternative power solutions, that meet the needs of our customers and the environment in the future.

Learn more

Agritechnica attendees can see first-hand Cummins’ full structural engine line up at Agritechnica, hall 16, stand D19 in Hanover Messe. More information on Cummins F3.8 and F4.5 structural engines can be found in our press release.

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

Machine of the Month: Kubota M8 series tractor

Kubota M8 Cummins

From material handling to a variety of field work, the Cummins-powered M8-series tractor is Kubota's most powerful tractor line to date. 

Earlier this year Kubota unveiled its largest tractor, the 19,510 lb. (8550 kg) M8. Powered by a 190 hp (141 kW) or 210 hp (156 kW) Cummins B6.7 Performance Series engine, the M8 delivers the power and reliability that Kubota customers expect.

Kubota M8 Cummins

"The M8 Series is Kubota’s most powerful and advanced tractor line to date,” said Todd Stucke, Kubota senior vice president of marketing, product support and strategic projects. "The M8 allows us to aggressively fill a higher-horsepower customer need across the large utility and mid-size row crop tractor market – for material handling and hay tool application on dairy and livestock operations as well as a variety of field work. Built with an operating experience focused on easy-to-control comfort, confident workability, and intuitive controls for precision farming, the M8 will maximize return on investment for Kubota customers today and well into the future.” 

Built with the ‘office with a view’ concept, this tractor has 148 cubic feet of cab space along with features that are designed with comfort and fatigue reduction in mind. Cummins’ latest B6.7 Performance Series engine offers high power and torque capability, while the removal of EGR facilitates a simpler design, easier packaging and less maintenance.

Learn more about Cummins' B6.7 Performance Series engine
 

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

Clessie Cummins' Grandson hits 300K miles on cross-country drive

Cummins High Mileage Club - 300K
During his cross-country trek to Columbus and back, Matt Cummins asked veterans to add their signatures to his tailgate.

Matt Cummins and his life-long friend Pete Hazel were outside of Bozeman, Montana, when the odometer on his 1999 Dodge Ram quad cab, long bed with a Cummins 5.9L ticked over 300,000. “That was exciting. It was a big deal that lasted for one mile,” he said. 
 
Hitting 300,000 was just one of many highlights of that trip, which had Matt driving cross-country in June from his home in Portland, Oregon, hopefully to join in with some of the Turbo Diesel Rally activities in Columbus, Indiana, held during the Cummins’ Centennial Celebration. Why? Because this 56-year-old mechanical engineer Freightliner manager is not only a member of the Cummins High Mileage Club, he’s also the grandson of Cummins founder Clessie Cummins. 
 
Invited to attend as part of Cummins’ 100-year anniversary celebration, Matt wasn’t satisfied to just fly in.  He decided to drive there. According to him, the journey was “kind of in line with some of the things that my grandfather had done with cross-country trips to show the dependability of his engines and their fuel mileage. I definitely wanted to honor the company, but I also wanted to make the effort, trust my truck, and wind my way into Columbus and stand next to my dad and be there for him while his father was being honored”. 
 
Prior to the journey, a Cummins marketing group applied a wrap to the truck and at Matt’s request,  provided space on his tailgate to honor veterans and ask them to sign it as they were encountered along the way. It took Matt and Pete four days with stops at Cummins’ distributors in Salt Lake City, Denver and Kansas City.

Cummins No. 8car Matt Cummins
Matt's truck with the No. 8 Cummins Diesel car. 

While the days were long (often driving 11 to 12 hours a day), Matt said his Ram handled the roads like a champ. “There were plenty of hills. The truck worked great - never had to downshift. I set the cruise control at 60 and headed east – even with steep grades and high altitudes, it never slowed down”. 
 
Unlike Matt, his parents, wife, two of his children, two sisters and a cousin flew in for the 100-year anniversary festivities, where he and his father presented a gift to the company: It was the coat that had been worn by Freddie Agabashian, the driver of the 1952 No. 28 Cummins Indy 500 car that set a qualifying one-lap record at 139.104 mph that year. Following the race, the driver had given the coat to his grandfather.
 

Cummins No. 28 Car - Alex Cummins
Matt’s daughter Alex, wears Freddie Agabashian’s driving coat one last time. The family gave the jacket to Cummins so it can be displayed with the #28 car Agabashian drove in the 1952 Indy 500. 

"My dad and I thought it was time to let the coat go so it could be displayed along with the car, reuniting the two things," he said. However, one of his daughters had asked if she could put the coat on one more time before we gave it to Cummins, and of course they agreed. 
 
"We walked over to No. 28 where there was a Cummins photographer, and all of a sudden the people started backing away. Then, someone says, ‘Alex, why don’t you get in the car?’ So, she gets in with an enormous smile. And then - 'Put the helmet on.’ And then on goes the whole gear with her sitting in the car and taking all these pictures, and it was great. That’s on Instagram. So, my daughter’s famous." 
 
Another high point for Matt, a weekend mechanic, was spending time at Cummins’ restoration center because they had 2 old diesel powered sedans and all the Cummins Indy race cars ( 3 were his Grandfathers). “The guys at that restoration center were just really nice people. They were so proud to show everything, giving up their evening after a full day’s work,” he said. “It was cool to be able to see it all and experience a piece of my grandfather again because we knew he had had his hands all over those cars.”

Matt Cummins and Clessie Cummins
A young Matt Cummins celebrates a birthday with his grandfather and Cummins founder, Clessie Cummins. Clessie passed away when Matt was five years old. 

Matt's one regret during his time in Columbus was that he didn’t get to tour the Columbus Mid-range Engine Plant. He had agreed to take part in an onboarding activity for new employees so he couldn’t tour the plant with the rest of the TDR Rally participants; however, he did get to visit the Indianapolis Motor Speedway Museum.

Matt says he’s glad he made the trip. "When I’m in Portland, nobody knows who my grandfather was. So, when you visit a Midwest town like Columbus and everyone knows his name and what he did, it’s pretty humbling - Columbus, Indiana is a special place. It was great for my dad to see his dad being honored. And my kids now have a whole new perspective of who their great-grandfather was." 

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

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