Miners look to a future of automated operations – by Brenda Bouw (Globe and Mail – February 6, 2012)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Most mines are already desolate, vast landscapes filled with the hum of haul trucks and only a few humans. But in years to come they will be even more deserted, as more companies find ways to run their operations from control centres thousands of kilometres away.

The industry’s ongoing efforts to increase automation are expected eventually to improve safety, increase production and lower maintenance costs. Remote operations could also ease labour shortages by moving hard-to-fill jobs in the middle of nowhere to more desirable urban centres.

So far the technology is only being tested by a few big-name mining companies, and it’s too soon to tell just how much money it will save, particularly when expenditures are a closely guarded secret. Still, miners are confident a move toward automation, which is happening across all industries to improve efficiency and costs, will have the same impact on mining.

Companies such as Anglo-Australian miner Rio Tinto PLC (RIO-N62.700.080.13%), considered the industry leader in remote mining technology, are racing to be first with a fully automated mine.

One major hurdle is fine-tuning the creation of robots or remote vehicles capable of precise, repetitive tasks. Another is cost.

Rio refuses to disclose how much it has earmarked to advance its “Mine of the Future” automation program, citing confidentiality for competitive reasons, but said the investment has been made possible by rising commodity prices over the past several years. The goal is to save money down the road.

“With the improved fortunes of the mining company we thought it was time to see if we could take advantage of our position of actually reinvesting in technology to improve our mining operations and give us an edge in the marketplace,” Andrew Stokes, global surface mining leader in Rio’s technology and innovation department in Australia, said in a recent interview.

Analysts who have visited Rio’s robotic site, called A Pit, at the West Angelas iron ore mine in Australia’s Pilbara region describe the technology as impressive. However, it won’t likely lead to a revolutionary change in mining costs any time soon, they say, given the high price of making it a commercial reality.

For the rest of this article, please go to the Globe and Mail website: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/miners-look-to-a-future-of-automated-operations/article2327209/

Comments are closed.