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John McGagh Rio Tinto- Resources & Energy Symposium 2012

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John McGagh Rio Tinto- Resources & Energy Symposium 2012

  1. 1. Resources and Energy SymposiumJohn McGaghHead of Innovation22 May 2012
  2. 2. Why Innovate? Improve Productivity, to .. • Improve safety • Find new ore bodies • Improve recovery rates • Recover from difficult ore bodies • Remove process waste • Improve capital productivity • Improve labour productivity • Reduce energy use22 May 2012 © 2012, Rio Tinto, All Rights Reserved 2
  3. 3. The productivity challenge The Productivity Commission report indicates declining multi-factor productivity is a challenge for the Australian mining sector Index of mining industry yield (1974-75 to 2006-07)31 May 2012 [Name of conference] 3
  4. 4. Demand outlook Shenzhen 1982 Shenzhen 200722 May 2012 © 2012, Rio Tinto, All Rights Reserved 4
  5. 5. Supply picture22 May 2012 © 2012, Rio Tinto, All Rights Reserved 5
  6. 6. Rio Tinto’s Mine of the Future™ programme How we will: Explore better. Exploit the resource better. Go underground deeper, and faster. Recover more from difficult deposits. And achieve all of the above more safely22 May 2012 © 2012, Rio Tinto, All Rights Reserved 6
  7. 7. Rio Tinto Innovation network model Rio Tinto presence No presence 5 3 6& 2& 1 4 2 1 8 Europe NorthAmerica Asia 1 Africa 6 Rio Tinto centres Technology partnerships Formal long term (around 5 years) Strategic partnerships and MoUs alliances with world class institutions with leading global suppliers to help provide Rio Tinto access to stable develop technology to commercial research resources to pursue targeted outcomes. 1 Komatsu Rio Tinto programmes. 1 Centre for Underground Mine Construction 2 Aker Wirth 2 Centre for Advanced Mineral Recovery 3 Atlas Copco 4 1 7 3 1 3 Centre for Materials and Sensing 4 e2v 5 1 4 Centre for Advanced Mineral Sorting 5 Tomra Australasia 5 Centre for Mine Automation 6 University of Nottingham 6 Innovation Centre 7 University of Western Australia 8 Herrenknecht 7 22 May 2012 © 2012, Rio Tinto, All Rights Reserved
  8. 8. Protecting our intellectual property Idea Proof of Pilot Demo Deploy Support Concept • Structured control & governance • Data management & security • Rigorous investment proposals • Freedom-to-operate • Patent families and walls • Trade secrets, copyright & trademarks, individual contracts Innovation without intellectual property protection is philanthropy22 May 2012 © 2012, Rio Tinto, All Rights Reserved 8
  9. 9. Innovative technologies are a key differentiator Our Mine of the FutureTM is shaped by four significant value levers Find Develop Mine Recover• Find future tier one • Develop future block • Optimise resource • Recover more from ore bodies cave mines safer, productivity mineral deposits• VK1 in initial flight faster, better • Expansion of • IronX™ iron ore trials • Tunnel boring system driverless truck fleet recovery pilot plant to• Complex testing trials to commence at • Operations Centre be scaled up in 2012 programme in 2012 Northparkes in 2012 • Smart drilling and • NuWave™ copper blasting sorting pilot plant • Autonomous trains being commissioned (AutoHaul™) at KUC Innovation networks created through long term strategic alliances Protection of Intellectual Property is key to sustaining competitive advantage 9
  10. 10. Mine of the Future™ – surface 2008 2008 2010 2010/11 2012 2012 Atlas Copco Alliance Automated train Drillers Aid trial Automated drills trial Cab-less Drill Advanced Survey trial 2007 2009/10 2010 2011 2012Trials starts on the Operations Automated trucks Operations Centre Komatsu MOU for 150 Automated TrainCentre Automated truck project Pilbara ‘A Pit’ trial commissioned autonomous trucks Deployment starts in Western Australia deployment 22 May 2012 © 2012, Rio Tinto, All Rights Reserved 10
  11. 11. Mine of the Future™ mining practiceClosed process loops – machine coordinated/driven Unprecedented Precision & Control • Holistic view of the operations • Integration of islands of autonomy • Integrated, near real-time information • Remote supervision & operation • Improve decision making • High levels of predictability • Improved productivity and profitability • Improved safety22 May 2012 © 2012, Rio Tinto, All Rights Reserved 11
  12. 12. Operations Centre: aligning systems…22 May 2012 © 2012, Rio Tinto, All Rights Reserved 12
  13. 13. …for greater productivity Reduce schedule variability (2008 = 100) The integrated model has given far better end-to-end visibility of the value chain 100 66 • Reduced schedule variability by 52 53 • More reliable planning and execution functions • Managing scheduling deviations 2008 Average 2009 Average 2010 Average 2011 Average • Improved train dumper productivity by Improved train dumper productivity • Our ability to keep trains (2008 = 100) scheduled to the system 127 131 bottleneck (in-load) • 115 100 Tonnage throughput at dumpers 2008 Average 2009 Average 2010 Average 2011 Average22 May 2012 © 2012, Rio Tinto, All Rights Reserved 13
  14. 14. Automation can address declining productivity • Investment in automation technology can address declining productivity in the mining sector • Step-change innovations can deliver process and systems efficiencies and significantly reduce the risks to human health and safety, as well as delivering process and systems efficiencies, and environmental benefits • This investment may sustain Australia’s longer- term competitiveness in the mining industry31 May 2012 © 2012, Rio Tinto, All Rights Reserved 14
  15. 15. Questions?

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