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The world’s first “smart” mine: Rio Tinto’s $2.2 billion “robot army”

Author:Wall Street Insights Time:2018/04/12 Read: 5967
Abstract: 50 driverless trains shuttle between 4 ports and 16 mines, and 1,200 driverless trucks speed through the billowing red smoke... This is the iron ore […]

Summary: 50 driverless trains shuttle between 4 ports and 16 mines, and 1,200 driverless trucks speed through billowing red smoke... This is the world that iron ore giant Rio Tinto plans to invest US$2.2 billion to build. The first smart mine is a full decade ahead of its competitors.

Today, as emerging technologies such as artificial intelligence and machine learning flood many industries, mining is no exception. Now, the world’s first “smart mine” is preparing to embark on its journey.

Jean Sébastien Jacques, CEO of global mining giant Rio Tinto, recently revealed in an interview with The Economist that they will seek board approval later this year to invest US$2.2 billion in the world's first pure "smart mine" "project.

The above-mentioned projects will consist of a network of intelligent equipment including robots, driverless mine cars, driverless trucks, driverless drill rigs and driverless freight trains. They will be responsible for daily production in the Pilbara iron ore mining area in Western Australia.

Jacques said that regardless of whether the project is approved by the board of directors, Rio Tinto is already a full decade ahead of its competitors in the field of smart mining.

A beautiful blueprint for smart mines

In the eyes of Rio Tinto's management, the prospects of smart mines are so wonderful. They are safe, efficient and save a lot of labor costs.

Think about it, Rio Tinto's main iron ore mine in Western Australia's Hope Downs 4, one of the eight largest iron ore bases in the world, no longer has people or drivers. All it has is the roar of machines, 300-ton mining trucks and Speeding in unmanned driving mode in billowing red smoke.

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At the Rio Tinto Operations Command Center in downtown Perth, about a two-hour flight from the mine, engineers use computers to remotely control mining equipment. Here, they monitor two groups of machines consisting of six unmanned mining equipment digging ore from the screen.

Chris Salisbury, head of Rio Tinto’s iron ore business, said that compared with human operations, the average operating time of driverless diamond mines is nearly one-third longer, and the average drilling distance per hour is 10% longer.

Rio Tinto management said that on a 12-hour basis, manned vehicles are more competitive, but on a 24-hour or longer basis, machines have the advantage because they don’t need coffee, they don’t feel tired, and they don’t Operation pauses due to driver handover. Self-driving trucks only need to stop once a day to refuel.

Labor costs at mines have been reduced by one-third after machine automation. With the help of 76 driverless vehicles in a fleet of 400 heavy trucks, the Pilbara mine's operating costs are expected to be around 15% lower than other mines.

Rio Tinto hopes that next year regulatory authorities will approve them to open the world's first truly unmanned mine project and achieve true automation. 50 driverless trains will shuttle between 4 ports and 16 mines, with a total mileage of approximately 1,700 kilometers. In September last year, it completed a 100-kilometer test. The average driving speed of this kind of car can be 6% higher than that of human driving. The project also includes 1,200 driverless ore trucks.

Jean Sébastien Jacques said that technological progress will only add one-third to the expected US$5 billion in additional free cash flow over the next five years, but starting in 2021, new technologies, especially autonomous driving technology, will become a bigger Return on Investment Drivers. They plan to start real smart ore production at the Koodaideri mine in the Pilbara region at a cost of approximately US$2.2 billion.

Rio Tinto, which is transforming towards intelligence, is still accelerating the expansion of its driverless fleet. Australian media reported in early March that Rio Tinto president Chris Salisbury said they would expand their driverless truck project later this month, and a fifth mine in the Pilbara region would be equipped with such trucks.

In addition, Rio Tinto will also expand its fleet of driverless trucks in the future. The company's West Angelas mine will be equipped with 15 smart trucks with automatic traction systems from May, which will account for 25% of the mining equipment.

Challenges facing mine digitalization

As Western Australia's mines move towards automation and intelligence, the mining industry is facing two new problems: mechanical automation and the lack of related skilled personnel.

In this regard, Rio Tinto plans to invest US$2 million in vocational education funds to include existing and potential workers in the company's training programs to prepare them in advance for technological innovation and progress.

Rio Tinto Iron Ore chief executive Chris Salisbury said: “To improve the skills and capabilities of our company and our employees in the face of smart mining, we are providing more opportunities for our current and future workforce.”

According to Future Market Insights, an American consulting company, automation and intelligence of mining equipment are the key to helping mines solve problems. This includes autonomous ore loaders, driverless trucks and freight trains, and other automated solutions.

To this end, large mining machinery manufacturers such as Komatsu and Caterpillar have joined forces with mining giants such as Rio Tinto to develop intelligent equipment and technology.

Following the automation of mining systems, the global mining industry is currently moving towards the fourth generation of automation, namely automotive automation.

Japan's Komatsu has developed the first commercial unmanned vehicle for mining, equipped with an AHS (autonomous traction system). These vehicles have wireless network systems, high-precision GPS systems, vehicle controllers and obstacle detectors. They can be easily integrated into other components of automated mining systems.


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