Tag Archives: original equipment manufacturer

ICMM looks to align mining industry on cleaner, safer vehicles

When the International Council on Mining and Metals (ICMM) launched its Innovation for Cleaner, Safer Vehicles (ICSV) program just over a year ago, some industry participants may not have realised how much progress could be made so quickly by taking a collaborative approach.

The ICMM has proven influential across the mining industry since its foundation in 2002 in areas such as corporate and social governance, environmental responsibility, and stakeholder relations, yet it has rarely, until this point, engaged directly as an industry group with original equipment manufacturers (OEMs) and service providers.

Close to 12 months after being established, it’s clear to see the program and the council itself has been successful in bridging a divide.

It has been able to corral a significant portion of the mining and mining OEM market players into a major industry discussion on core focus areas set to dominate the sector for the next two decades.

Now 27 of the world’s leading mining companies and 16 of the best-known truck and mining equipment suppliers are collaborating in a non-competitive space “to accelerate the development of a new generation of mining vehicles that will make vehicles cleaner and safer,” the ICMM says.

The ICSV program was created to address three of the most critical safety, health and environment performance issues in the ICMM’s mission towards zero harm and decarbonisation. Achieving this goal would involve the industry introducing and adopting the next generation of equipment to respond to the challenges.

More specifically, the program aims to:

  • Introduce greenhouse gas emission-free surface mining vehicles by 2040;
  • Minimise the operational impact of diesel exhaust by 2025; and
  • Make collision avoidance technology (capable of eliminating vehicle related collisions) available to mining companies by 2025.

In all three, it seeks to address the industry’s innovation challenge of ‘who motivates who’ or the chicken and egg analogy, according to Sarah Bell, Director, Health, Safety and Product Stewardship for the ICMM.

“You can imagine a mining company saying, ‘we can’t adopt technology that doesn’t yet exist’ or an OEM saying, ‘we can’t invest in development because we’re getting mixed market signals’. This is, of course, why this program has been set up in the way it has,” she told IM. “Bringing both the mining company and OEMs together, they have been able to work through these normal innovation challenges and align on defining the direction of travel and critical complexity to be solved for each of the ambitions set.”

High-level participation

The list of companies the ICMM has been able to involve in this program is impressive.

It is being guided by a CEO advisory group of six; three from the mining community – Andrew Mackenzie (CEO, BHP), Mark Cutifani (CEO, Anglo American) and Nick Holland (CEO, Gold Fields) – and three from the mining equipment supply side – Denise Johnson (Group President of Resource Industries at Caterpillar), Max Moriyama (President of the Mining Business Division at Komatsu) and Henrik Ager (President of Sandvik Mining and Rock Technology).

On the mining company front, ICMM membership makes up around 30% of the total metal market share, with some 46% in copper, 27% in gold and 42% in iron ore. Participating OEMs and third-party technology providers, meanwhile, include the three majors above, plus Cummins, Epiroc, Wabtec Corporation (formerly GE), Hexagon Mining, Hitachi Construction Machinery, Liebherr, MacLean Engineering, MTU, Modular Mining Systems, PBE Group, Nerospec, Future Digital Communication and Miller Technology.

Bell says the high-level participation builds the “widespread confidence” needed to accelerate investment in these three key areas”, while the ICMM’s focus on the leadership side of the technology integration equation and change management has proven “absolutely key”.

She clarified: “This collaboration operates under anti-competition and anti-trust rules. Our role is to convene the parties, motivate action and promote solutions.”

The program offers a “safe space for the OEMs and members to work openly in a non-competitive environment”, she added, explaining that the aim is not to come up with “preferred technologies”, but define the “functional and operational pathways required to meet the ambitions set”.

Vehicle interaction (VI)

Some of the ambitions look easier to achieve than others.

For instance, collision avoidance and proximity detection technology has made huge strides in the last decade, with the ICMM arguing its 2025 target is like a “sprint”, compared with the “10,000 m race” that is minimising DPM underground by 2025 and the longer-term aim to introduce GHG-free surface mining vehicles by 2040.

“There are regulations that require implementation of collision avoidance and proximity detection technology by the end of 2020 in South Africa,” Bell said. This will undoubtedly provide a catalyst for further developments to speed up.

The ICSV program is also leveraging the work of the Earth Moving Equipment Safety Round Table (EMESRT) in its development of fundamental functional/performance requirements for operators and technology providers.

These requirements were updated and released by EMESRT in September and are known as ‘PR5A’.

Credit: Hexagon Mining

Bell delved into some detail about these requirements:

“The EMERST requirements are designed around a nine-level system that seeks to eliminate material unwanted scenarios such as – equipment to person, equipment to equipment, equipment to environment and loss of control,” she said.

“The fundamental change with this newly released set of functional requirements by EMESRT is that the mining industry users have defined the functional needs for levels 7-9 (operator awareness, advisory controls, and intervention controls). That stronger level of collaboration hasn’t necessarily been there.”

EMESRT and its guidelines have been given an expanded global platform through the ICMM’s ICSV, with the program, this year, providing the convening environment for users and technology providers to help finalise these updated requirements, according to Bell.

With all of this already in place, one could be forgiven for thinking the majority of the hard work involved with achieving the 2025 goal is done, but the working group focused on VI knows that while OEMs continue to retrofit third-party vehicle collision and avoidance systems to their machines the job is not complete.

“Let’s think about the seatbelt analogy: you don’t give buyers of vehicles a choice as to whether they want a seatbelt in their car; it just comes with the car,” Bell said.

“At the moment, by design, vehicles don’t always have this collision and avoidance systems built in, therefore there is a big opportunity for collaboration between OEMs and third-party technology providers.”

Underground DPM goals

“The DPM working group have recognised that, in the case of the DPM ambition, ‘the future is already here, it’s just unevenly distributed’,” Bell said.

“Bringing together the OEMs and the mining companies this year through the ICSV program has enabled the group to explore the variety of existing solutions out there today,” she added.

These existing solutions include higher-tier engines, battery-electric equipment, tethered electric machinery, fuel cell-equipped machines for narrow vein mining and solutions to remove DPMs and other emissions from the environment like Johnson Matthey’s CRT system.

And, there are numerous examples from North America – Newmont Goldcorp at Borden, and Glencore and Vale in Sudbury – South America – Codelco at El Teniente Underground – and Europe – Agnico Eagle Mines at Kittilä (Finland, pictured) – to draw from.

Bell also mentioned some examples from Australia where regulatory changes have seen miners apply existing technology and carry out changes in their work plans and maintenance practices to minimise DPM emissions.

Haulage and loading flexibility, battery charging and mine design have all come under the spotlight since these new generation of ‘green’ machines have emerged, so achieving the 2025 goal the ICSV stated is by no means a foregone conclusion.

“There remains more work to do in achieving diesel-free vehicles underground,” Bell said.

The interested parties are aware of this and the program’s DPM maturity framework is helping miners and OEMs plot a course to reaching the target, she explained.

“The DPM maturity framework promotes existing solutions available today that would enable a mining operation to reduce their DPM emissions to a level that would meet the ambition level (shown as Level 4 – transition to zero),” she said.

These frameworks are useful for starting a “change conversation”, Bell said, explaining that mining companies can assess within their organisations where they currently sit on the five-level chart and discuss internally how to move up the levels to meet their goals.

These same frameworks look beyond minimising “the operational impact” of DPM emissions underground, with Bell explaining that Level 5 of the maturity framework involves “non-DPM emitting vehicles”.

GHG-free surface mining vehicles

Even further in the distance is the longer-term target of introducing greenhouse gas emission-free surface mining vehicles by 2040.

This ambition, more than any other, is less clearly defined in terms of technological solutions across the industry.

While battery-electric solutions look like having the goods to reach DPM-free status underground with expected developments in battery technology and charging, the jury is still out on if they can create a GHG-free large-scale open-pit mining environment.

The world’s largest battery-electric haul truck – eMining’s 63-t payload eDumper (pictured) – may have proven its worth at a Ciments Vigier-owned quarry in Switzerland, but the world’s largest open-pit mines require a solution on another scale altogether.

As Bell said: “There is a lot of work to do to develop batteries at scale for surface fleet that suit the different operating conditions.

“That’s a key point because that lends itself to the fact that we don’t want one solution; we will need multiple solutions. We don’t want to stifle innovation; we want to encourage it.”

ICMM member Anglo American has hinted that hydrogen power could be one solution, and the miner is looking to show this next year with the development of its hydrogen-powered 300-t payload haul truck.

There has also been in the last 18-24 months a mini renaissance of trolley assist projects that, ABB’s Gunnar Hammarström told IM recently, could, in the future, work in tandem with battery-powered solutions to provide a GHG-free solution.

The ability for industry to pilot and validate technology options like this “within the boundaries of anti-competition” is crucial for its later adoption in the industry, Bell said.

She said a key enabler of industry decarbonisation is access to cost competitive clean electricity, which would indicate that regions like South America and the Nordic countries could be of interest in the short and medium term for deploying pilot projects.

It is this goal where the industry R&D spend could potentially ramp up; something the ICMM and the ICSV is aware of.

“For the OEMs and mining companies to effectively minimise capital expenditure, optimise R&D expenditure and reduce the change management required by the industry, there needs to be a careful balance of encouraging innovation of solutions, whilst managing the number of plausible outcomes,” Bell said.

In terms of encouraging the development of these outcomes, carbon pricing mechanisms could provide some positive industry momentum. Vale recently acknowledged that it would apply an internal carbon tax/price of $50/t when analysing its future projects, so one would expect other companies to be factoring in such charges to their future mine developments.

Industry-wide GHG emission caps could also provide a catalyst. In countries such as Chile – where up to 80% of emissions can come from haul trucks, according to ICMM Senior Programme Officer, Verónica Martinez – carbon emission reduction legislation could really have an impact on technology developments.

Forward motion

While 2019 was a year when the three working groups – made up of close to 50 representatives in each work stream – outlined known barriers or opportunities that might either slow down or accelerate technology developments, 2020 will be the year that regional workshops convened to “encourage first adopters and fast followers” to move these three ambitions forward take place, Bell said.

A knowledge hub containing the previously spoken of maturity frameworks (delivered for all three groups) will allow the wider industry outside of the ICMM membership to gain a better understanding of how the miner-OEM-service provider collaboration is working.

Bell said the ICMM already has a number of members testing these group frameworks on an informal self-assessment basis to understand “how they are being received at an asset level and feedback insights to the group in an effort to understand how we may portray an industry representative picture of where we are today”.

Such strategies bode well for achieving these goals into the future and, potentially, changing the dynamic that has existed between end users and suppliers in the mining sector for decades.

Bell said: “The feedback that we got from OEMs is that mining companies had completely different objectives, but they have now greater confidence that we are aligned on the direction of travel towards the ambitions set.”

Austin Engineering looks to set dump truck body benchmark

A unique ‘V’ profile floor, designed to actively channel the load to the centre of the tray, is one of the standout design features of Austin Engineering’s new Ultima dump truck body.

Designed and manufactured by the Australia-based engineer, the new body also features improved structural integrity and payload advantages, the company said.

Based on Austin’s WESTECH, JEC and JEC-LD series of bodies, the new tray is lighter and stronger than current original equipment manufacturer (OEM) bodies, which translates to a 10-15% weight saving without sacrificing payload, according to the company.

This is the next generation in mining dump bodies, Austin Engineering says, with the Ultima carrying a greater payload, meeting all OEM dump truck specifications and delivering the industry’s lowest cost per tonne.

“By channelling the payload to centre line of the tray, the unique V-floor, with its lower centre of gravity, improves machine stability and safety and reduces overall tray wear,” the company said. “The floor design also reduces dump cycle times (empty is achieved at 3/4 tipping).”

The body also features large radius transitions to assist in the reduction of material carry-back, which also provide superior impact resistance and substantially extend operating life, Austin said.

“Overall the optimIsed shape of the Ultima body means better material distribution within the structure while maintaining the payload/weight advantage,” Austin Engineering said.

The new body’s increased structural integrity gives superior impact and wear resistance, extends fatigue life and lowers maintenance costs, according to the company. Tapered sides run the full length of the body to minimise wear, assist in carry-back reduction and reduce side spillage in the dumping cycle, while a low-profile rear floor shape, combined with a reduced height bolster, provide additional ground clearance when dumping.

The body is available in both ‘Straight Floor’ or ‘Flow Control Combo’ designs to cater for fixed or varying SG values and is designed to operate as a liner-less configuration.

“It can be adapted to suit any mine specific application, is suitable for any current OEM dump truck chassis and is designed to comply with all OEM haul truck operating limitations,” the company concluded.

The ‘value add’ in mining equipment finance and leasing

In the last decade or so, there has been a big change in the way mining companies source equipment for new and existing operations, with finance, leasing and rental now major parts of the system.

IM spoke with some of the major finance, leasing and rental companies around the globe as part of a feature (to be published in April) on the subject.

This is what Björn van den Berg, Director Customer Finance, Sandvik Mining & Rock Technology, had to say about demand for equipment finance and leasing solutions from the mining industry:

“If you have a look at the growth rate for customer finance, it has grown substantially,” he told IM.

“There are two underlying trends here. One is we see increased usage of contractors in mining, with contractors having a totally different cash position to producing mines. That’s one of the reasons why we see increased demand for different types of finance options – a trend we have seen occurring over a longer period of time,” he said.

“A more recent trend is what I would call the subscription-based economy, or ‘product as a service’. In the past, customers had an original equipment manufacturer (OEM) that would supply them with the machine and maybe some after-market services and they would own and use the machine until it fell apart. We are shifting more and more towards where the customer is not necessarily looking for an OEM that can provide a piece of equipment or machine. They are looking for a partner that can provide a solution, preferably, for the duration the customer requires.”

“In terms of the subscription-based economy trend, that normally includes a form of financing on the OEM side. That’s an emerging trend that has led to increased demand for different types of financial products.”

On these different types of financial products, van den Berg said: “We offer a finance-lease, loan – always asset-backed – and trade finance solutions, but what we also see is an increased demand for operational leases, or short-term rental type of solutions including or excluding services.”

The way customers are being charged is also changing, as their own internal cost structure evolves, he added.

“They might look for cost per hour, cost per tonne, cost per metre, etc,” he said. “Whatever defines a customer’s cost structure is the way they want to be charged.”

When it comes to providing not just a financial product, but a solution, van den Berg provided an example of how Sandvik’s equipment finance arm differentiates itself.

“We get requests from mines operating outdated machines where production levels and, therefore, cash flow isn’t where it can be. Sandvik comes in with a multi-disciplinary team, analyses the situation, assesses what the best alternative is for the mine, applies what impact that alternative will have on the cash flow and then structures a financial product around it that will let them achieve that cash flow.”

“A bank or generic financial institution might just look at the current balance sheet and profit and loss and decide not to finance the same initiative as the customer’s credit score does not support it.

“That is where we can add value over the customer’s house bank or other financial institution,” he said.

This interview is part of a wider feature on equipment finance, rental and leasing to be published in the upcoming April issue of International Mining

Volvo CE to acquire ‘construction and mining equipment adaptor’ CeDe Group

Volvo Construction Equipment is to acquire special application partner CeDe Group for an undisclosed sum, the Sweden-based company has said.

CeDe Group, based out of Malmo, Sweden, has a good reputation in the Nordic region as a low-volume adaptor of construction and mining machinery for special applications, according to Volvo CE. It has worked with several original equipment manufacturers (OEMs), including Volvo CE and its dealers, developing new bodies for haulers (eg fuel, water, waste), rail conversions for wheeled excavators, as well as conversions for underground mining applications.

The deal, which is expected to come into force by mid-March, will include CeDe’s intellectual property, operations, other assets and staff of around 45 full-time employees. As the annual volumes produced are relatively low, the deal will have no material effect on the income or financial position of Volvo CE, the company said.

Interestingly, CeDe, formed in 2000, can trace its roots back to Volvo’s original excavator business, Åkerman.

“Under Volvo CE ownership, the vision is that CeDe will remain an agile, entrepreneurial, standalone business,” Volvo CE said. “Volvo CE will make available its considerable competences to the company and add additional resources to allow it to expand its market reach and customer bases, becoming a European leader in this specialised field.”

A strengthened partner will also support Volvo CE’s objectives of expanding its product offering into new segments and applications, as well as providing a partner who can deliver low volume prototypes and production runs, Volvo CE said.The company will continue to provide and expand its engineering services to non-Volvo CE customers, it added.

Volvo CE President, Melker Jernberg, said: “This acquisition makes sense on a number of strategic levels. CeDe has already proven that it has a depth of engineering talent in adapting our machines for specialised applications. This closer relationship will allow Volvo CE to grow our product offerings while, at the same time, boosting CeDe’s ability to expand into new markets and segments, both with Volvo CE and its other OEM customers.”

CeDe Group’s Chief Executive, Krister Johnsson, said: “We are extremely pleased to be joining the Volvo CE family of companies. With our already long and good relationship with Volvo CE and deep understanding of its products, we are excited at the opportunities to develop our services and expand our reach into new markets.”