China's Mining Revolution: How Driverless Electric Vehicles Are Reshaping the Future

A coal mine in Inner Mongolia exemplifies Beijing's resolve to revamp conventional sectors using cutting-edge technologies.

At the Yimin open-pit coal mine in Inner Mongolia, a procession of heavy-duty haul trucks traverses the arid, rugged landscape. This sight is typical for this region in northern China, known for hosting many of the nation’s largest mineral reserves. However, upon closer inspection, one notices an advanced technological element amidst this traditional industry—the trucks navigate autonomously, devoid of human operators.

Yimin ranks among the top five largest opencast coal mines in China. At the height of operations, approximately 300 trucks driven by roughly 1,200 shift-working operators were needed to convey coal from Yimin to processing facilities and haul soil, sand, and rock debris to disposal areas round-the-clock during peak seasons.

However, according to managers at the mine, they were grappling with a scarcity of truck drivers. Hazardous driving environments contributed to elevated turnover rates, further exacerbated by decreasing enthusiasm for this career path amongst younger people. "The demanding nature of their workload frequently causes significant health problems for these truck drivers," stated Shu Yinqiu, who serves as the director of the Yimin mine.

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Earlier this year, a fleet comprising 100 photovoltaic-battery-operated, driverless trucks was introduced. These vehicles mark the biggest rollout of autonomous electric mining trucks globally, underscoring China’s commitment to modernize conventional sectors through cutting-edge technology. This move comes as the country faces challenges such as a declining workforce and an aging populace.

In line with China’s efforts to digitize its vast coal sector—the biggest globally—Yimin became one of the pioneers in establishing “smart coal mines.” This drive originated from directives released in 2020 by multiple central governmental bodies, such as different ministries and the National Development and Reform Commission. These guidelines detailed plans for building smart mines and set out autonomous vehicles as a key objective.

The guidelines targeted achieving "smart production," which should make up at least 60 percent of overall output in coal mining by 2026. Additionally, they aim to replace 30 percent of jobs dealing with strenuous labor or dangerous environments with automated machinery or robotics.

In May, Yimin introduced its initial batch of one hundred self-driving trucks called Huaneng Ruichi, aiming to have up to three hundred operational within the coming three years for completely automated transportation services. Major collaborators in this initiative encompass Huawei Technologies, Xuzhou Construction Machinery Group, State Grid, and the Beijing University of Science and Technology.

Currently, only 24 individuals split into four groups are required to manage the operation of the 100 newly acquired trucks. These personnel oversee and regulate the vehicles remotely from a comfortable control center equipped with numerous monitors showing live video feeds and up-to-date traffic data.

Experts credit Yimin’s rapid shift to a mix of strategies, such as beneficial industry policies. According to Wen Shang from the Chinese consulting firm LeadLeo, these initiatives highlighted particular technologies and offered tangible assistance along with a schedule for meeting Beijing’s goals.

According to Rebecca Arcesati, the lead analyst at the Mercator Institute for China Studies, financial incentives and the nurturing of high-technology companies and skilled professionals have played a crucial role in speeding up the automation and digital transformation of conventional industries.

Zhang Pingan, CEO of Huawei Cloud, stated at the unveiling ceremony held in May in Hulunbuir City, Inner Mongolia, that the deployment of Huaneng's self-driving trucks has not only served as an exemplar for China but also set a global tech standard.

Ruichi trucks have established global benchmarks for parameters like load-carrying ability, travel velocity, and resilience in freezing climates. These vehicles can function effectively at temperatures as low as -20 degrees Celsius (-4 degrees Fahrenheit) during typical winters and down to -40 degrees under severe conditions, as stated by Huaneng.

High-tech solutions such as 5G networks, lidar systems, various sensors, instant mapping technology, cloud computing services, and artificial intelligence (AI) each contribute their role. It’s worth mentioning that, as stated by Shu, every single piece of tech and component utilized in these vehicles has been developed domestically.

These vehicles are not only efficient but also economical; with a solar-driven collection of 100 units, they could potentially conserve up to 15,000 tons of diesel fuel and cut down CO2 emissions by roughly 48,000 tons, as estimated by Huaneng.

As part of Beijing’s significant drive towards modernizing conventional sectors through technology, Yimin shares this objective of automating processes. According to data from the China National Coal Association (CNCA), intelligent tech now makes up about fifty percent of all coal output in China. The count of coal mines employing these advanced methods surged from less than 200 to more than 1,000 over the past year.

By September, the CNCA reported more than 1,500 autonomous mining trucks operating in China. The organization forecasts that this figure will increase threefold to around 5,000 by the close of this year and surpass 10,000 by 2026.

Arcesati noted that the nation's substantial investments in digital infrastructure have clearly yielded benefits. He explained that China’s advancements in artificial intelligence, robotics, sensors, and cloud platforms actively facilitate industrial upgrades through improved automation, efficiency, and competitive edge.

She mentioned these advancements increase the need for home-grown manufacturing capabilities, thereby decreasing dependence on external providers. This shift leads to a stronger and more independent industrial base.

Huaneng’s implementation of autonomous vehicles syncs with China’s larger initiative to incorporate cutting-edge technologies into conventional industries such as ports, mines, factories, and data centers. According to Arcesati, this approach mirrors the national leadership's aim to foster an economically robust, environmentally friendly, and internationally leading sector through technological advancement.

For instance, the manufacturing sector is undergoing a digital revolution, as illustrated by the "black plant" model of leading home appliances company Midea, says Lu Xiaomeng, an analyst from consulting firm Eurasia Group.

These extensively automated facilities, referred to as "lights-out factories," leverage AI, robotics, and sophisticated communication systems with limited human involvement to attain high efficiency and reduce operating expenses. Such digital enhancements have revolutionized processes that were once heavily reliant on labor and decreased dependence on manual tasks, as stated by Lu.

According to CNCA estimations, a fleet of 100 autonomous trucks might help coal mining companies save approximately 40 million yuan ($5.6 million USD) per year in salary expenses for drivers. This cost reduction could be advantageous for China’s coal sector, which has faced decreasing revenues and profits.

In the previous year, the CNCA reported an 11 percent decrease in revenue along with a 22 percent reduction in profits within the nation's coal mining and washing sector, not including enterprises below a specified scale.

Even with the possible advantages, industry specialists warned about the financial feasibility of endorsing self-driving technologies in less extensive mines. Lin Qiao, who serves as the vice president at autonomous mining truck firm Eacon, suggested that smaller mines might consider the investment needed for this tech too costly compared to its rewards.

As cited in a November report from China Energy News, a government-supported energy industry journal, Lin stated, "The smaller the mine, the more intricate the infrastructure becomes, and the harder it is to implement autonomous driving technology."

Implementing autonomous driving technology required substantial upgrades to existing infrastructure, translating to higher costs per autonomous truck for smaller operations, he added. Consequently, some may find that the economics simply do not add up, making investment unfeasible.

Experts cautioned that an accelerated drive towards digital enhancements might lead to unproductive expenditures. As Arcesati pointed out, "Similar to previous infrastructural endeavors, China’s rapid deployment of what is termed as new infrastructure has been accompanied by significant waste and inefficiency."

Nevertheless, numerous professionals within the sector remain optimistic about the prospects for autonomous mining trucks, believing they hold promise both in China and internationally.

Jack Chen, who serves as the vice-president of marketing and solutions for oil, gas, and mining at Huawei, mentioned that this technology might attract potential clients in international markets like Africa and Latin America.

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