The World’s First Smart Mine: A Robot Army Built by a Global Mining Giant at a Cost of 2.2 Billion!
Release time:
2018-05-15
Source:
Wall Street Insights, May 2, 2018
Fifty driverless trains shuttle between four ports and 16 mines, while 1,200 driverless trucks speed through billowing red dust... This is the world’s first smart mine, planned by iron ore giant Rio Tinto with an investment of $2.2 billion—a project that puts it a full decade ahead of its competitors. Photo courtesy of Rio Tinto Group.
In an era when emerging technologies such as artificial intelligence and machine learning are permeating many industries, the mining sector is no exception. Today, the world’s first “smart mine” is poised to embark on its journey.
In a recent interview with The Economist, Jean Sébastien Jacques, CEO of global mining giant Rio Tinto, revealed that the company will seek board approval later this year for an investment of up to $2.2 billion in what will be the world’s first fully “smart mine” project.
The aforementioned project will be supported by a network of smart devices—comprising robots, driverless mining trucks, unmanned trucks, autonomous drilling rigs, and driverless freight trains—that will handle the daily production at the Pilbara iron ore mining region in Western Australia.
According to the introduction, this system consists of four major subsystems: the Operations Center, the Automated Haulage System (AHS), the Automated Drilling System (ADS), and the Automated Train System (AutoHaul?). Jacques stated that, regardless of whether this project receives board approval, Rio Tinto is already a full decade ahead of its competitors in the field of intelligent mining.
The Bright Blueprint for Smart Mines
In the eyes of Rio Tinto’s management, the prospects for smart mines are truly remarkable—they are safe, efficient, and significantly reduce labor costs.
Just imagine: At Rio Tinto’s Hope Downs 4 iron ore mine in Western Australia—the world’s eighth-largest iron ore deposit—there’s no longer a single human figure to be seen, no drivers at all. All that remains is the roar of machinery, as 300-ton mining trucks hurtle through billowing red dust, operating in fully autonomous mode.
At the Rio Tinto Operations Control Center, located about a two-hour flight from the mine and situated in downtown Perth, engineers remotely control mining equipment using computers. From here, they monitor on screens two sets of machines—each consisting of six autonomous drilling rigs—extracting ore.
Chris Salisbury, head of Rio Tinto’s iron ore business, said that compared to human-operated drilling, unmanned mining operations last nearly one-third longer on average and achieve a 10% greater drilling distance per hour on average.
Rio Tinto management stated that, when measured over a 12-hour period, manned vehicles are more competitive. However, when the duration stretches to 24 hours or even longer, machines have a distinct advantage: they don’t need coffee, don’t get tired, and eliminate the downtime caused by driver shifts. Unmanned trucks only need to stop once a day for refueling.
After the introduction of machine automation, labor costs at the mine have been reduced by one-third. With the help of 76 autonomous vehicles in a fleet of 400 heavy-duty trucks, operating costs at the Pilbara mine are expected to be about 15% lower than those at other mines.
Rio Tinto hopes that next year regulatory authorities will approve their groundbreaking project to launch the world’s first truly driverless mine, achieving full automation. Fifty autonomous trains will shuttle between four ports and 16 mines, covering a total distance of approximately 1,700 kilometers. Last September, the company completed a 100-kilometer test run. These autonomous vehicles can achieve an average speed increase of 6% compared to human-driven trains. The project also includes 1,200 autonomous ore trucks.
Jean Sébastien Jacques stated that technological advancements will only increase the anticipated additional free cash flow over the next five years—currently projected at $5 billion—by one-third. However, starting from 2021, new technologies, especially autonomous driving technology, will become a greater driver of investment returns. They plan to begin truly intelligent ore production at the Koodaideri mine in the Pilbara region at that time, with costs estimated at around $2.2 billion.
Rio Tinto, which is undergoing a transformation toward智能化 (smartification), continues to accelerate the expansion of its autonomous fleet. According to Australian media reports in early March, Rio Tinto CEO Chris Salisbury stated that they will expand their autonomous trucking project later this month, with a fifth mine in the Pilbara region set to adopt this type of truck.
In addition, Rio Tinto plans to further expand its fleet of autonomous trucks in the future. Starting in May, the West Angelas mine operated by the company will be equipped with 15 smart trucks featuring automated traction systems, accounting for 25% of the mine’s total equipment fleet.
Challenges Facing Mine Digitalization
As Western Australia’s mines move toward automation and智能化, the mining industry is facing two new challenges: mechanical automation and a shortage of skilled personnel.
To this end, Rio Tinto plans to invest $2 million in vocational education, enrolling both current and prospective workers in the company’s training programs to ensure they are well-prepared for technological innovation and advancement.
Chris Salisbury, CEO of Rio Tinto Iron Ore, said: “To enhance the skills and capabilities of our company and employees in the face of smart mining, we are providing more opportunities for both our current and future workforce.”
According to the U.S. consulting firm Future Market Insights, the automation and intelligentization of mining equipment are key to helping mines overcome their challenges. This includes automated ore loaders, driverless trucks and freight trains, as well as other automated solutions.
To this end, major mining machinery manufacturers such as Komatsu and Caterpillar have already joined forces with mining giants like Rio Tinto to develop intelligent equipment and technologies.
Following the automation of mining systems, the global mining industry is now moving toward fourth-generation automation—automated vehicles.
Japan’s Komatsu has developed the first commercially available autonomous vehicle for mining applications, equipped with the AHS (Autonomous Haulage System). These vehicles feature a wireless network system, a high-precision GPS system, a vehicle controller, and obstacle detectors. They can be easily integrated into other components of automated mining systems.