Higher Ground
Through a combination of high quality products and matchless service, Cummins has positioned itself at the heart of the new energy shaping the future of the European mining sector
From the Balkans to northern Scandinavia, Cummins is demonstrating its value to specialist original equipment manufacturers (OEMs) and the increasingly demanding mine owners they serve.
The mining industry has come a long way since a Cummins Model F engine powered the very first diesel shovel in 1926. Today, Cummins provides a variety of power solutions that can perform in any environment in Europe, from two kilometres below the surface to open pit mines in the Arctic tundra.
Cummins engines for mining machinery applications provide power rating from 37 kW (49 hp) to a colossal 3,281 kW (4,400 hp), with displacement from 2.8 to 95 litres. From compact machines tailored for underground mining to mighty excavators and dump trucks, Cummins is the answer to the question ‘who can I trust for reliable performance and minimum downtime?’
The European mining industry has shaken off its image as short-term and unsophisticated and is seen as an innovation hub where operations feature the latest technology, from remote control equipment to autonomous trucks that run without a driver at the wheel.
Cummins is well placed to capitalise on the number one consideration for any progressive mine owner, which is how to achieve the lowest sustainable cost of production.
One of those mine owners is the Chinese giant Zijin Mining Group, a multi-national business specialising in the prospecting, exploration and mining of gold, copper, zinc and other mineral resources. Among its portfolio are two mines in Serbia – Bor (copper) and Majdanpek (copper and gold) in which it has pledged to invest more than $1 billion.
Zijin has also acquired the Cukaru Peki Upper Zone gold and copper field which it hopes to make ready for production by 2023. Analysts have forecast the three Serbian mining sites could yield up to 250,000 tonnes of copper a year.
Cummins entered into discussions with Zijin about a strategic partnership in Serbia in the wake of the privatisation of the mining sector when Zijin became a major shareholder.
Goran Galic, Regional Leader for Eastern Europe and Balkans, takes up the story: “The old RTB Bor mines were under state ownership, and it was through the efforts of Cummins’ distribution team that we were able to get our engines into a couple of old 150-tonne dump trucks."
“There was a noticeable improvement in performance and the miners were more than satisfied, so we were then able to get QSK60 engines into some of their 220-tonne BELAZ trucks.”
Cummins started its own greenfield operations in the West Balkans early in 2015 and was keen to take things further with RTB Bor when it was lined up as one of the heavily indebted public sector businesses that could be attractive to an investor.
The mining sector accounts for around one percent of Serbia’s gross domestic product. But over the past two decades, more than 40 foreign companies, including big names like Rio Tinto, Nevsun, Mineco and Zijin have either started to extract or prospect for minerals in Serbia. The Serbian Government has said the mining industry could expand to five percent of GDP if foreign investment is maintained.
“Mining is one of the most Higher ground Through a combination of high quality products and matchless service, Cummins has positioned itself at the heart of the new energy shaping the future of the European mining sector dynamic sectors in Serbia,” said Goran Galic. “It’s been identified as a sector of strategic importance, and the Government is making things as easy as possible for investors to play their part."
“The potential for us at Cummins is plain to see: our products are world class and we are now dealing with mine owners who are in a different league compared to what’s been before in terms of their expectations, their focus and their skills. They also have the funding, of course.”
Under Zijin’s stewardship, Zijin Copper Bor’s copper concentrate output has grown substantially, helped by the reliability of Cummins engines, now featured on around 30 heavy trucks, and the availability of swing (instant replacement) engines to ensure downtime is kept to a minimum.
“Some of the trucks powered by QSK60 at Zijin Copper Bor are achieving up to 40,000 hours without major fail or overhaul,” said Goran, “and recently, Zijin Copper Bor took possession of seven new trucks fitted with the QSK60 and modular common rail fuel (MCRS) fuel system.”
This story features in The Cummins Magazine;