Next generation technology enabling a revolution in resources

"Next generation technology is enabling a revolution in the way mining is conducted and how value is extracted from resources," Rio Tinto Iron Ore, President - Pilbara Operations, Greg Lilleyman, has told a CEDA audience in Perth.

"It is not only about new technologies, it's about piecing them together to find innovative solutions to challenge ourselves and find better ways to manage complex operations," he said.

"We are using innovation to produce better employment options, increase safety and decrease our environmental footprint."

Core to Rio Tinto's future program is the operations centre, which is a central control room for synchronising 14 mines, 80 mining pits, three port terminals, and generating and producing power across Rio Tinto's mines, towns, infrastructure and accommodation.

In the future, Mr Lilleyman expects to see the operation centre continue to be central to the management of mines, with further development and application of new automation technology across the value chain.

"This (operations centre) is not only to be used as central control for rail and port operations, but also for performance strategic analysis such as asset health, supply chain optimisation and utilities management structures," he said.

Mr Lilleyman emphasised autonomous haulage plays a key role in improving efficiency, reliability and safety performance.

The use of autonomous trucks, remotely operated drill and blast activities, automated train systems, ship loading, and remote train loading are all aimed at increasing productivity.

In future operations, Mr Lilleyman outlined a number of capabilities machinery will have including:

• Predictive decision systems to optimise scheduling and dispatching;
• Collision avoidance and proximity detection systems with 360 degrees views of surroundings and GPS  technology;
• Geologists will use remote control survey helicopters to carry out topographical and geophysical pit analysis;
• Reclaiming equipment will be fitted with rock recognition devices with maintenance plans updated automatically through an online system; and
• Autonomous haulage through the rail network will continue, and train load outs will be conducted autonomously and monitored remotely from the operations centre.

IBM, Australia and New Zealand, Global Business Services, Managing Partner, Sarah Adam-Gedge, said $700 - $900 billion worth of future capital expenditure resources programs would be lost if we don't innovate.

Opportunities with technology, combined with faster broadband role out and innovation in mining are essential, she said.

Ms Adam-Gedge said IBM's report, A snapshot of Australia's digital future to 2050, forecasts integrated operations with faster broadband, and how information technology and communications would assist in improving productivity in the resources industry long term.

She highlighted three technological changes crucial to the future of resources including:

• Cheap and smart senses on mining machinery;
• Machine to machine, to computer communication; and
• Proactive decision making and smart analytics.

With advancements in information technology, business practices and the role of people will also change, she said.

"People should be co-located in terms of the multidisciplinary chain. (You need to) expand globally and no longer rely on people close to Perth's airport," she said.

Shell, Vice President Prelude Floating LNG Project, Bruce Steenson, said Australia has an opportunity to utilise technology to enable the development of stranded gas.

He said Shell's Prelude floating LNG facility, located north of Broome, is the first of its kind in the world and will meet the demand for gas from across the globe.

This is an opportunity to develop other pockets of gas, more economically, quicker and with a lower risk because we can bring in the facility, produce gas and then have the ability to move on somewhere else, Mr Steenson said.

"It brings a number of economic benefits, we'll spend $12 billion in Australia over the life of the project, and there will be 1000 direct and indirect jobs," he said.

"It reduces the environmental foot print and there is no pipe work coming to shore, no shore crossings, and no site works on shore."

BHP Billiton, Vice President Planning, Tony Ottaviano, said BHP Billiton have taken a holistic approach to mining with an emphasis on process and improving technology to extract the best value.

Like Rio Tinto, he said BHP Billiton has a remote operations centre providing them with the ability to coordinate operations.

He said innovations such as remote operated equipment and automated train loading have allowed BHP Billiton to achieve three key objectives:

• Make our operations safer;
• Embedded increased business growth; and
• Maintain competitiveness.