MINING TYRES minerals at the lowest cost possible . It ’ s a winwin model and this is achieved by an integration into the production process and the mine value chain , and then seeking the maximisation of fleet reliability ; minimisation of downtime ; load factor optimisation ; reduction of cycle times and other upsides .”
Carrillo and Santo said that the TK offer transcends the product choice and supply and goes further by assuming the ownership and the administration of the complete tyre life-cycle , including all of the services around tyres as well as tyre recycling since 2023 . TK , they say , is delivering a seamless experience and one that also provides peace of mind in the event of a tyre supply shortage . Santo : “ Mining tyre supply is very complex and for some sizes there can from time to time be shortages for various reasons – TK customers , naturally , will be higher on the priority list , which brings great peace of mind for them , such as during the pandemic when there were global logistical issues focused on ocean freight .”
As part of the contract follow up , the Michelin team prepares a comparative balance of the situation with TK versus that without TK validated by the customer . This serves not only Michelin but also the client when evaluating the contract ’ s performance and added value delivered . Carrillo : “ We are not only comparing costs , but also the delivered value in terms of decreased downtime , fleet reliability , innovations in products , services , and processes , data analytics and initiatives related to sustainability , such as recycling and community involvement . We also evaluate the value delivered and the contribution of Michelin to the implementation of the client ’ s strategy .”
She adds that the customer ’ s strategy is fundamental because the TK model is oriented to a customer segment whose focus is not the tyre price and a short-term vision , but rather customers who seek a long-term partner to enable innovation and technologies to improve their safety , sustainability , efficiency , productivity , and as a consequence , reduce their costs globally . “ Customers using new technologies to achieve productivity gains , including AI and autonomy , are focused on the total cost of ownership ( TCO ).
Moreover , the solution is a ‘ tailor-made ’ offer formed together with the client adapted to the context and specificities of each customer .”
But is it not more difficult to implement TK on those sites that for strategic reasons use both Michelin and Bridgestone tyres ? Santo : “ It is not more difficult , in fact , it is equally interesting . As part of the Michelin TK contracts , the company allows for the customer to test tyres from other brands which are treated under the same maintenance management model as Michelin brand tyres . It is interesting for the customer and
Michelin to compare the tyre performance outside of the most used metric in the mining industry ‘ hours .’ TK is a complementary tyre performance metric , that allows the measurement of how much the tyre contributed to the customer ’ s overall productivity .”
Of course , TK also includes TPMS which in Michelin ’ s case is MICHELIN MEMS 4 . “ For us , MICHELIN MEMS 4 is a very important tool to ensure tyre and fleet reliability . It allows us to monitor tire pressures and temperatures by tyre serial number with reliable , liquid-proof sensors mounted inside the tyres . MICHELIN MEMS 4 has a functionality that also allows you to identify sectors of the mine that are causing more problems for tyres such as higher temperatures . Plus we use all the MICHELIN MEMS 4 data for our own in-depth analytics .”
Santo : “ Another really important point is that since we are completely integrated in the operation , we are also able to , with them , innovate much more and get more involved in decisions that directly affect the tyres . For example , for mines with slippery conditions , such as those with icy roads in the winter , we can get involved in their chain selection and application as well as their repair . We don ’ t make or supply tyre chains , but we know that if they are not chosen well to match the tyres and conditions , or if they are not fitted properly , this can be to the detriment of the tyres .”
As stated , the TK model does involve a third party and that is a tyre management service provider – in Chile today there are two main players active at most of the minesites , namely Bailac and Kal Tire . Currently at AMSA Los Pelambres , Michelin is working with Bailac with the TK model but it has also worked in the past applying the TK approach with Kal Tire at BHP Spence . At Collahuasi mine , the service provider is Bailac sister company Bailac Thor . These are big mines , with very large truck fleets and challenging conditions , but the TK approach has still delivered .
Santo : “ We can work with any service provider – we don ’ t push for a particular one . And in addition to the service company , we will also work with logistics companies , nitrogen suppliers etc – any other services that complement the tyre supply and management .
The overall governance of the TK model is with Michelin , however , and we decide on the maintenance and repair program as our requirement is to keep the tyres running as productively as possible and so this is an important part of that – but the actual maintenance and repair work is done by the service provider .”
At these TK sites , Michelin has staff permanently based there , working alongside the mine operator and tyre management service
provider . These Michelin experts include topographers , who specialise in surveying and monitoring the haul roads .
Overall TK is a close partnership with common goals . Carrillo : “ Under TK , we all share the same goals and objectives to utilise the tyres to help move more tonnes at the lowest cost . It is no longer about the cost of a tyre , it is about the total cost of ownership of that tyre and reducing the mine ’ s working capital .”
Recycling and REP Law
Michelin as one of two major importers of mining tyres to Chile is responsible today to recycle 25 % of those tyres , a requirement which will increase to 75 % in 2027 . But Michelin as a group is not just looking at the future in Chile where tyre recycling has been mandated for both mining and other tyres , it is looking to a greener global future .
Santo : “ Michelin Group has a clear strategy and vision on sustainability and we call it our All- Sustainable approach which always takes into consideration three Ps – People , Profit and Planet . Michelin has committed as part of its Michelin in Motion strategy that by 2030 , our tyres will be 40 % made of renewable or recycled materials and this includes mining tyres with this rising to 100 % by 2050 . We want to be able to reuse the steel , the recovered carbon black and the pyrolytic oil from our tyres to manufacture new tyres – to work towards circularity . In Chile we installed a mining tyre cutting and shredding facility to produce 30 mm rubber chips . This facility is located in the La Negra area , Antofagasta , and is expected to start up potentially in July 2024 or soon after , following the acquisition of all the necessary permits . All the rubber chips to be produced by that plant can be used in various markets and the Michelin Group is looking actively to find partners locally in South America to transform the chips into recycled materials .”
In tandem with that , R & D is being done to look at how materials from used tyres can be used in the future to make new tyres . “ A major challenge today is how to take recovered carbon black and upgrade it to what we need to make new tyres – we even partnered with our main competitor in mining tyres , Bridgestone , in a study to work towards this that included a white paper titled ‘ Bridgestone & Michelin : Recovered Carbon Black Guidelines ’ that was released in November 2023 .”
Kal Tire and recycling - potential for exponential growth
During Exponor 2024 , IM Editorial Director Paul Moore also had the chance to catch up with Carlos Zuniga , General Manager of Kal Tire Chile , focusing on progress with its pioneering mining
JULY 2024 | International Mining 27