130103 final report - rise of the machines ritc view final jan 2013

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Rise of the Machines?
Adoption of automation technology in the Australian resources industries and its implication for vocational education and training and higher education
November 2012

Adoption of Automation and Remote Control Technologies
In the Australian Resources Industries and Implications for
Training and Higher Education
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Disclaimer
This document has been prepared by Australian Venture Consultants Pty Ltd (ACN: 101 195 699) (‘AVC’). AVC has been commissioned to prepare this publication by the Resources Industry Training Council (RITC) and has received a fee from the RITC for its preparation.
While the information contained in this publication has been prepared by AVC with all reasonable care from sources that AVC believes to be reliable, no responsibility or liability is accepted from AVC for any errors, omissions or misstatements however caused. Any opinions or recommendations reflect the judgment and assumptions of AVC as at the date of the document and may change without notice. AVC, its officers, agents and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law. Any opinion contained in this publication is unsolicited general information only. AVC is not aware that any recipient intends to rely on this document or of the manner in which a recipient intends to use it. In preparing this information it is not possible to take into consideration the information or opinion needs of any individual recipient. Recipients should conduct their own research into the issues discussed in this document before acting on any recommendation.

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Acknowledgements
The analysis that forms the basis of this report was in part reliant on input and insights from a range of automation and resources industry technology experts, operational managers and resources sector training and education experts.
The authors thank the following individuals for their invaluable contributions to this report:
 Timothy Berryman, Mine Technical Services Manager, KCGM
 David Cavanagh, Managing Director, Integrated Energy Pty Ltd
 Adrian Clement, Technology Manager, Westrac
 Professor John Dell, Dean, University of Western Australia Faculty of Engineering
 Peter Ebell, Executive Director, Engineering Technology and Business, Central TAFE
 Greg Guppy, Director, Applied Engineering, Challenger TAFE
 Peter Henderson, Principal Electrical Engineer, Xstrata Coal
 Matt Hollamby, Brisbane Manager, Terminals Division, Patrick Corporation
 Professor Hugh Durrant-Whyte, (former) Research Director, Australian Centre for Field Robotics, University of Sydney
 Simon Hehir, Principal Development Engineer, Woodside Energy
 Derek Hunter, CEO, Kinetic Group
 Jill Jameison, General Manager, Training Services, Challenger Institute of Technology
 Neil Kavanagh, Chief Science and Technology Officer, Woodside Energy Limited
 Bill Knight, Manager of Mines, Alcoa World Alumina Australia
 Peter Knights, Executive Director, Mining Education Australia
 Michael Lehman, General Manager, Westrac Institute
 Peter Lilly, Senior Manager, Research and Development, BHP Billiton
 Ross McAree, Director, CRCMining
 Rudrajit Mitra, Director – Undergraduate Studies, School of Mining Engineering, University of New South Wales
 Fred Pearce, Installation Coordinator, Woodside Energy Limited
 Peter Wilson, former Business Development Manager, Patrick Stevedoring

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CONTENTS
Executive Summary ................................................................................................................................................ 8
Introduction and Background ............................................................................................................................... 19
The Australian Resources Industry: An Overview ................................................................................................. 20
Automation Technology and The Resources Industry .......................................................................................... 23
Automation Technology and Its Components .................................................................................................. 23
Definition of Automation, Remote Control and INtegrated Operations ...................................................... 23
What Are the Key Technologies Used in Automation Systems? .................................................................. 24
Other Characteristics of Resources Industry Automation Systems .............................................................. 30
The Evolving Challenge for the Resources Industry Workforce ................................................................... 32
Key Centres of Excellence in Resources Industry Automation and Robotics ............................................... 33
The Adoption of Automation in the Australian Resources industries .................................................................. 40
A Framework for Assessing the Dynamics of Innovation Adoption.................................................................. 41
Factors that Determine the Rate and Extent of Adoption of an Innovation ................................................ 41
The Market For New Innovations ................................................................................................................. 42
Adoption of Automation in Other Industries .................................................................................................... 43
Case Study: Automated Port Conatiner Terminals ....................................................................................... 44
Case Study: Automation and Agriculture ..................................................................................................... 51
Is Automation a Compelling Solution for Port Freight Terminals and Agriculture? ..................................... 54
General Drivers of Adoption of Automation in the Resources Industry ........................................................... 56
Improved Productivity .................................................................................................................................. 57
Improved Resource Access ........................................................................................................................... 63
Occupational Health and Safety ................................................................................................................... 64
Reduced Reliance on Conventional Resources Industry Labour Markets .................................................... 64
Reduced Environmental Externalities ........................................................................................................... 65
Detractors To Adoption of Automation in The Australian Resources Industry ................................................ 65
Higher Capital Investment and Impact on Project Economics and Switching Costs ..................................... 66
Technological Uncertainty ............................................................................................................................ 67
Organisational Change .................................................................................................................................. 67
New Operational Risks .................................................................................................................................. 69
Planning for Automation .............................................................................................................................. 69

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Australian Resources Industry and Adoption of New Technology ................................................................... 69
Minerals Industry .......................................................................................................................................... 70
Oil and Gas Industry...................................................................................................................................... 71
Status and Trajectory of Adoption of Automation in Specific Operation Types and Sectors that Comprise the Australian Resources Industry .......................................................................................................................... 73
Type of Resources Operation ....................................................................................................................... 74
The Case for Adoption of Automation in Specific Sectors – Some Examples ............................................... 79
Automation and Workforce Structure .................................................................................................................. 85
The Impact of Automation on New Skills Requirements, Organisational Culture and Workforce Structure ...................................................................................................................................................................... 85
The Automation Technician .......................................................................................................................... 86
Mechatronics Engineer ................................................................................................................................. 90
Production Managers and Process Optimisation Experts ............................................................................ 91
The Market for New Resources Industry Automation Roles ........................................................................ 91
Implications for Vocational Education and Training ............................................................................................. 93
Vocational Education and Training Programs ................................................................................................... 93
Central TAFE – Diploma in Engineering – Technical (Mechatronic).............................................................. 94
Challenger TAFE – Australian Centre for Energy and Process Training ........................................................ 96
Charles Darwin Univeristy ............................................................................................................................ 99
Central Queensland University ................................................................................................................... 100
Westrac Institute ........................................................................................................................................ 101
Implications for Higher Education ...................................................................................................................... 103
Current University Engineering Programs ...................................................................................................... 104
University of Western Australia .................................................................................................................. 104
Curtin University ......................................................................................................................................... 107
University of Queensland ........................................................................................................................... 109
University of New South Wales .................................................................................................................. 112
University of Sydney ................................................................................................................................... 114
Programs for Production Process Optimisation manager .............................................................................. 115
Appendix 1: Automation Technician Tasks ......................................................................................................... 117

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Table of Figures
Figure 1 - Gross Value of Australian Resources Production by State (2008-09) ................................................... 20
Figure 2- Estimated Capital Cost of Advanced Minerals, Energy and Related Infrastructure Projects by State (2011).................................................................................................................................................................... 21
Figure 3 - The Resources Industry Automation Continuum ................................................................................. 24
Figure 4 - Networking Hierarchy ........................................................................................................................... 28
Figure 5 - A Typical Remote Operations Centre ................................................................................................... 32
Figure 6 - The Key Challenge Presented by Automation ...................................................................................... 33
Figure 7 – Segmentation of the Market for New Innovations .............................................................................. 42
Figure 8 - Western Australian Rural Land Values 1981 - 2005 (Selection Regions) .............................................. 53
Figure 9 - Extent of Adoption of Automation in the Livestock, Cropping and Port Container Terminal Industries .............................................................................................................................................................................. 56
Figure 10 - General Drivers of a Decision to Adopt Automation in the Resources Industry ................................ 57
Figure 11 – Multifactor Productivity Growth 1974-75 to 2006-07: Resources Industry versus Other Sectors of the Australian Economy ........................................................................................................................................ 62
Figure 12 - General Detractors to a Decision to Adopt Automation in the Resources Industry ........................... 66
Figure 13 - Historical Adoption of Certain Underground Mining Technologies by the Australian Mining Industry .............................................................................................................................................................................. 71
Figure 14 - Technology Development in the Oil and Gas Industry ....................................................................... 72
Figure 15 - Progressive Depth of Petrobas Wells in Offshore Brazil ..................................................................... 73
Figure 16 - Development of Subsea Processing Technology ................................................................................ 79
Figure 17- Support Required by the Automation Technician Role Today ............................................................ 88
Figure 18 - Support Required by the Automation Technician Role within 15 Years............................................. 89
Figure 19 - Certificate III Engineering - Technical Program - Central TAFE ........................................................... 95
Figure 20 - Diploma in Engineering – Technical (Mechatronics) .......................................................................... 96

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Table of Tables
Table 1 - Sensor Technologies Applicable to Resources Industry Automation .................................................... 26
Table 2 - Networking Technologies Applicable to Resources Industry Automation ............................................ 29
Table 3 - Mechatronics Technologies Applicable to Resources Industry Automation ......................................... 29
Table 4 - Major Research Themes at the Australian Centre for Field Robotics .................................................... 35
Table 5 - CRC Mining Partners .............................................................................................................................. 36
Table 6- Application of Automation in the Agricultural Industry ......................................................................... 52
Table 7 - Factors Influencing the Adoption of Automation in the Port Freight Terminal and Agricultural Industries .............................................................................................................................................................. 55
Table 8 - Factors that Contribute to Decreasing Quality of Minerals and Petroleum Resources ......................... 59
Table 9 - Current Skills Requirements of an Automation Technician ................................................................... 87
Table 10 – Automation Technician Soft Skill Requirements ................................................................................. 90
Table 11- Australian Centre for Energy and Process Training Process Operations Programs .............................. 98
Table 12 – Example of VET Course Structure at Charles Darwin University – Diploma of Engineering and Associated Degree in Process Engineering ......................................................................................................... 100
Table 13 - University of Western Australia - Mechanical, Electrical and Electronics and Mechantronics Engineering Course Content ............................................................................................................................... 106
Table 14 - University of Western Australia - Mining, Petroleum and Mechatronics Engineering Course Content ............................................................................................................................................................................ 107
Table 15 - Curtin University Mechanical, Electronic and Communication and Mechatronics Engineering Course Content ............................................................................................................................................................... 108
Table 16 – Curtin University Mining, Petroleum and Mechatronics Engineering Course Content .................... 109
Table 17 - University of Queensland Mechanical, Electrical and Mechatronics Engineering Content ............... 110
Table 18 - University of Queensland Mining and Mechatronics Engineering Course Content .......................... 112
Table 19 - University of New South Wales Mechanical, Electrical and Mechatronics Engineering Content ...... 113
Table 20 – University of New South Wales Mining, Petroleum and Mechatronics Engineering Course Content ............................................................................................................................................................................ 114
Table 21 - University of Sydney Mechatronics Engineering Course Content ..................................................... 115

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EXECUTIVE SUMMARY
Background
The Resources Industry Training Council’s primary purpose is to provide strategic advice to the Western Australian State Training Board and the Department of Training and Workforce Development regarding the development and implementation of innovative solutions to address skills shortages and the changing workforce needs of the Western Australian resources industries.
In 2011 the Australian resources industry exported minerals and energy commodities with a total value of A$190 billion. Australia is in the top five producers of most of the world’s key mineral commodities. While Australia’s vast and diverse natural resources endowment has underpinned this world-class industry, as with resources industries world-wide, it has been technological advancement in exploration, production and processing methods that has resulted in Australia being one of the world’s most important and advanced resources industries.
As the Australian resources industries expand in response to unprecedented and likely sustained demand for commodities from the growing economies of the developing world, issues of improved productivity, labour market constraints, OH&S, and access to resources that increasingly present significant technical, environmental and social challenges are strategic and operational issues that are ‘front-of-mind’ for resources company executives. A component of the solution to addressing each of these issues resides in the development and implementation of remote controlled and automated systems that improve both capital and labour productivity, remove humans from harmful or dangerous environments and reduce the externalities that result from resources operations.
The increasing implementation of remotely controlled and automated systems in resources industry operations, either incrementally or on a step-change whole of operation basis, has implications for workforce structure, skills requirements, organizational structure and culture, and ultimately, the vocational education and training (VET) and higher education programs and qualifications that provide the industry with an appropriately skilled workforce.
The Key Issue: A Workforce that Supports New Technologies and a New Operating Environment
Automation can be broadly defined as the intelligent management of a system, using appropriate technology solutions, so that operations of that system can occur without direct human involvement.1 The term automation is used somewhat clumsily in industrial applications to describe systems and processes that are characterized by a range of direct human involvement intensity, including processes and systems that have high levels of human involvement through remote control. It is also used to describe the application of information and communication technologies to achieve integrated operations.
1 Mining Industry Skills Centre (2010), Automation for Success

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For the purposes of this report, the term automation is used to describe automated and remotely controlled systems as well as the application of information and communications technologies to effect integrated operations.
Automation involves a system of integrated technologies, analytical and processes logic software that intelligently perform a function within a discrete process, across an entire process or across an entire system. Specific technologies that typically comprise an automation system in a resources industry operation include:
 Sensor technologies
 Database and data fusion technologies
 Logic software technologies
 Visualisation and simulation technologies
 Collaboration technologies
 Networking technologies
 Mechatronic technologies
Automated systems in a resources industry operation involve field robotics technology, high levels of ‘ruggedisation’ and/or ‘marinisation’, and for mission critical and high OH&S risk tasks, very high levels of systems reliability.
Perhaps the most important aspect of automated mining and petroleum production systems is that it creates the opportunity to centralize the monitoring and control of all the processes that comprise the operation to a single physical location. The ability to locate some front-line workers to a central, and increasingly remote, Operations Centre (OC) where they can apply their knowledge to analyzing and interpreting operational data streams from sensors attached to equipment in the field, historical and real-time operational data from across the operation, and other third party data sets, creates a decision environment for effective and efficient problem solving, and opportunities to optimize operations that has not previously existed in many sectors of the resources industry
They challenge that automation presents to the resources industry, particularly the mining industry, is that the current conventional resources industry workforce does not support the new technologies that are being deployed or the integration of those technologies and the skills, work patterns, leadership models and culture of a typical resources operation is not designed to achieve the optimisation benefits that can accrue from an integrated approach to operations management. This is illustrated conceptually in the figure below.

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Adoption of Automation by the Australian Resources Industry
The current level of adoption of automation in the resources industry exists on a continuum spanning from the gradual implementation of off-the-shelf technologies to various aspects of operations (nominal automation), to almost total automation and remote control of discrete stages of the production process (partial automation), to mining and petroleum operations that involve very high levels of automation of the process from extraction to market delivery.
As automation systems move along this continuum in the resources industry, the extent of current adoption decreases (more profoundly in the minerals industry than in the petroleum industry). Typically, the proprietary nature of intellectual property associated with the automation system increases, as does the need for new skills and structural and cultural change in the organization to support the automated environment and optimize its benefits through putting into effect integrated operations. This is illustrated conceptually in the figure below.
Main Implication for the Resources IndustryWorkforceSensor TechnologiesDatabase and DataFusion TechnologiesLogic SoftwareVisualisation & Simulation TechnologiesNetworkingTechnologiesMechatronicsTechnologiesGPS, Precision GPS, mmRadar, Scanning Laser Range Finder, Infrared Spectrometer, StrainGauges, Resolver and Encoders, LVDT Sensors, IntertialSensors, RFID etcPLCs. Embedded PCs, multi- Core computers etc2D & 3D media, virtual reality etc Predictive software that determineslikely whole-of-operations outcomesfor a set of actionsInternet, satellite, microwave, fibre optics, communicationsProtocols etcElectric Drive Systems, Hydraulic Drive Systems, Robotic Task Allocation, SCADA Control etcField roboticsStorage and interrogation of vastQuantities of data Code that facilitates the integrationand interrogation of hetrogenousdata setsCollaborationTechnologiesVideo, audio and data connectivitybetween mobile devices and devicesIn fixed locationsOperations CentreSystems that facilitate the monitoringand control of the entire operationfrom a single central locationMany of these technologies, and the integration of thesetechnologies is not supportedby a conventional resources industry workforce ororganisational culture

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Estimating the extent and rate at which automation will be adopted across the many different sector and operations types that comprise the Australian resources industry is difficult. This is because there is a tremendous amount of variety in strategy, operational layout, upstream and downstream integration, OH&S issues, environmental issues and general suitability to various degrees of automation across the many operations that comprise each sector of the Australian resources industry, rendering the degree to which automation is compelling to specific operations complex and multifaceted.
Generally speaking, the principal factor that drives a decision to adopt automation relates to addressing the following unique factors associated with improving productivity in the resources industry:
 The resource Depletion Effect
Mineral and hydrocarbons have a unique aspect as a natural resource – they are non-renewable. Because commercial enterprises are motivated to extract the highest quality resources first, as these resources are extracted, the quality that remains in-situ decreases. This means there needs to be a concomitant increase in productivity for resources operations to remain viable.
 Cost of Labour
Resources industry workers generally receive higher remuneration packages than many other industries. This is reflective of the specialised nature of the work and the hardships, including working in isolated environments, that are associated with many roles. On-costs associated with resources industry staff are also typically higher than with those associated with other industries by virtue of the additional costs associated with transferring and accommodating staff at remote locations.
Nominal AutomationAutomation of an individual device or systems componentE.g. Remotely operated equipmentOff-the-shelf solutionsPartial AutomationSubsystem operated by a control roomE.g. Milling circuit that is operated via a central control roomOff-the-shelf solutions with some proprietary designTotal AutomationFully integrated, automated and remote controlled extraction, processing and logistics operationE.g. Rio Tinto Future MineLarge component of proprietary designDegree ofAutomationRelativeLevel ofAdoptionIntellectualPropertyHighLowMineralsPetroleumHighLowMineralsPetroleumHighLowMineralsPetroleumMinimalSomeSignificantNeed forNew Skillsand Culture

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Automation addresses the cost of labour by improving the productivity of labour, and potentially reducing the number of staff required on remote sites.
 Capital Effect
Resources projects are capital intensive. Furthermore, there are long lead-times between final investment decision for a project and when the capital actually becomes productive. This has a negative effect on project Net Present Value. Automation addresses this by increasing the productivity of the capital once it is operational.
Automation also improves productivity by facilitating integrated operations, which provides opportunity for whole-of-operation optimisation, and by allowing more predictable maintenance planning and scheduling.
There are other drivers of automation that are linked to improving productivity, but which also deliver other benefits including improved resource access, reduced reliance on conventional resources industry labour markets, reduced negative environmental externalities and improved OH&S. The general drivers of a decision to implement automation are summarised in the figure below.
As there are general drivers of a decision to adopt automation in the resources industry, there are also general detractors to that decision. Principally, these are a set of related factors that potentially have a negative impact on project finance and/or operational risk. The general detractors to a decision to implement automation are summarised in the figure below.
ProductivityResource DepletionEffectCost of LabourCapital EffectWhole of OperationsOptimisationMaintenanceAutomation counters thenegative effect on productivity caused byadecreasing quality ofin-situ resourcesLabour costs in theresources industries arehigh and automation improves the productivityof labourResources projects arecapital intensive and subject to long productionlead times. Automationimproves the productivityof capitalAutomation providesproduces enormousamounts of operationaldata that can be used tooptimise operationsAutomation may notreduce the amount ofmaintenance requiredbut may improve thepredictability of maintenance schedulingImproved ResourceAccessReduced Reliance onConventional Resource Industry Labour MarketsReduced NegativeEnvironmental ExternalitiesImproved OH&SAutomation facilitates accessto resources in environmentsthat cannot be safely accessedby manned equipmentThe change in job functions andlocation that results fromautomation provides access toamore diverse employmentmarketAutomation facilitates moreprecise operation leading to decreased energy consumptionand smaller operational footprintAutomation removes peoplefrom dangerous operatingenvironments

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Despite the entire resources industry sharing these common drivers and detractors, the oil and gas industry has been a far more rapid implementer of new technology than the minerals industry. The higher propensity for the oil and gas industry to invest in technology development and deployment has most likely been a result of the more rapid depletion of its global resources, and the need to develop technology that enables entry into significantly more challenging exploration, production and processing frontiers and the more globally integrated nature of the oil and gas industry’s supply chain.
While the case for adoption of automation is most certainly company and site specific, we can make some slightly more specific observations at a resources operations type and resources sector level. The figure below summarises current adoption of specific automation technologies and the likely next phase of automation implementation for different resources operations types.
Impact on ProjectEconomicsImpact of higher capital cost on NPVfor greenfieldsprojectsImpact of switching costs on NPV forbrownfieldsprojectsTechnology RiskMany new technologies that haven’tbeen extensively trialled in resourcesindustry applicationsRisk associated with equipment andautomation OEM support integrationNew OperationalRisksOver-reliance on automated processesPassive operator riskOver-reliance on systems redundancyapproach of OHSOrganisational ChangeNew roles and work patternsMulti-site integrationNew modes of communicationNew reward systemsWorkforce retrainingNew leadership modelsProject Finance RiskOperational RiskOperational Risk

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Similarly, more specific observations can also be made with respect to the status of adoption and specific issues facing adoption of automation for sectors of the resources industry. To date, the adoption of automation within the mining industry has been most prolific in the bulk commodity sectors, particularly with respect to iron ore and coal, with adoption across other sectors being more sporadic. While the case seems adequately compelling for large complex iron ore and coal operations, it is less so for bauxite operations, and highly variable across other sectors. This is illustrated conceptually in the figure below.
Minerals ExplorationOffshore O&G ExplorationOpen Pit MiningUnderground MiningPlatform, FPSO, FLNG ProductionSubsea Production & ProcessingCurrent Automation: •Processing of remotesensing data•UAVsfor dataacquisitionNext Phase? •Automation of drill rigoperations•Automated real-timeassayingCurrent Automation: •Automated systems onexploration platformsNext Phase? •Automation processing ofseismic and other geophysical data forfaster turnaroundCurrent Automation: •Loaders that operate fromblast block data•HaulageNext Phase? •Loaders that operate frombucket sensors•Drilling and blastingCurrent Automation: •LHDs•Haulage•Long-wall miners•High-wall minersNext Phase? •Continuous miners•Tunnel developers•Bolting and meshingCurrent Automation: •Normally unmanned production platforms•FPSOsand FLNG involvehigh levels of automation•ROVs•ROCsNext Phase? •Still over 1,000 operationsthat are performed manuallyin a state-of-the-art petroleum system•Limited scope for processvariationCurrent Automation: •High levels of automationby necessity•Reliability of processes issuper-criticalNext steps?: •Pre-programmed IMRROVs

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Because the case for automation is not equally compelling across all styles of operation or sectors that comprise the Australian resources industry, the adoption of automation by the Australian resources industry is likely to be sporadic and incremental in most cases, rather than the rapid transformation that is sometimes predicted.
Automation and Workforce Structure
As automation is progressively adopted by the resources industry, new technologies will be deployed that are not supportable by the current resources industry workforce skill base, particularly in the case of the minerals industry. The culture of operations that adopt extensive automated systems will change dramatically, again, particularly in the case of the minerals industry. The new culture will be one that is based on a higher incidence of remote control, workforce diversity and integrated, multidisciplinary, data rich problem solving.
There is no doubt that automation will render certain roles in resources operations redundant as it has in other industries. However, there is little evidence to suggest it will result in significant reduction in overall employee numbers. Obvious candidates for redundancy are operators of the equipment that becomes automated, such as drill rigs, loaders, haul trucks and trains. However, even in these obvious cases, some of that workforce will most likely be retrained to operate equipment or sets of equipment remotely, and to oversee components of the automated system. Some unskilled and semi-skilled roles may also be replaced by automation.
The event of automation is unlikely to result in a significant reduction of tradespersons that are employed on a conventional resources operation, as most of the technical issues addressed by tradespersons will remain. For example, while automated equipment may be designed for a higher incidence of ‘change-out’ style
Underground Coal IndustryIron OreAlumina-BauxiteOther SectorAutomation Development ProgramsSignificant industry collaboration with research organisationsthrough Australian Coal Association Research ProgramPrimary ApplicationsPrimarily around long-wall operationsHigh-wall mining is also highly automatedBenefitsAutomated long-wall shearer face alignment and retreat hasresulted in significant productivity improvementOH&S benefitsAutomation Development ProgramsIndividual company collaborations with equipment OEMs andresearch organisationsPrimary ApplicationsTotal value chain automation (‘blasting to port’) Fundamentally, automation of complex logistics exerciseBenefitsSignificant improvements in productivity only attributable tolarge, multi-mine operationsOH&S benefitsLabour market benefitsAutomation Development ProgramsIndividual company collaborations with OEMsPrimary ApplicationsHaulage only as haulage routes are long, but mining iscomplicated by significant vertical grade variation anddownstream processes are already highly automatedBenefitsLimited because mining is a relatively small portion of the totalcost of producing aluminaComplicated by significant diversity in a range of factorsIncluding: •Physical scale•Throughput•Mine life•Ratio of mining cost to total costs•Production goals•Operational layout•Type of mining process•Degree of OH&S risk that can be mitigate by automation

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maintenance where malfunctioning components are removed and sent off for repair and replaced by a spare component on site, there is already a high incidence of this style of maintenance in modern resources industry equipment. Routine mechanical issues such as oil leaks will still require maintenance attention on site. Increased automation may result in an increase in the number of electrical tradespersons required on site to support change-outs and other ICT systems. However, different demands from tradespersons will most likely be best addressed through modifications to trade qualifications and additional training. The removal of driver error may result in improved predictability of maintenance scheduling.
While the precise impact of automation on workforce size and structure is not entirely clear, there is general consensus among operators that the following three roles that are not usually associated with resources industry, particularly mining operations, but are commonplace in other automated environments, will become increasingly important operational roles in the resources industry:
 Automation Technician
The role of an automation technician is to build, install and maintain automated machinery and equipment. It is largely a systems integration role, with electrical tradespersons still being required to perform functions such as wiring and mechanical tradespersons still required to address mechanical issues. If deployed on an operating environment today, it is expected that an Automation Technician would be heavily reliant on support or direction from other experts (engineers and tradespersons) to perform many of the tasks.
 Mechatronics Engineer
Mechatronic technologies are central to field robotics and the application of automated and remote control systems to resources industry operations. Mechatronics engineering is a multidisciplinary field that combines electrical, mechanical, computing and software engineering to create expertise in designing, building, deploying and maintaining electromechancial devices such as robotics. A particular skill set that is common to mechatronics engineers that is crucial to many resources operations automation programs is data fusion expertise. Because highly automated resources industry operations produce enormous volumes of data from heterogeneous data streams, the ability to write software code that can interpret and integrate those heterogeneous data streams is critical to not only the operation of automated systems, but also optimizing their benefits.
 Operations Optimisation Manager
As resources operations become more automated and the immediate benefits of the automation program are realized, significant additional benefits can be attained through optimization, as has been the experience of other largely manual processes that have achieved high levels of automation. This role applies expertise in logistics and process optimization to achieve optimal whole of operations productivity and other benefits, and is performed by an operations optimization manager.
Previous analysis has estimated that on the basis that 50 percent of the 500 resources industry sites in Australia required 3 to 5 automation technicians, that 1,500 such roles would need to be filled. In light of the discussion in this paper on the complexities associated with the adoption of automation in the resource industry, it is unlikely that demand for automation technicians will emerge to this extent in the short term. Anecdotally, it would seem that the functions of an automation technician are currently being filled by resources companies implementing automation from two key sources:

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 Electrical tradespersons who acquire the additional skills required to perform the automation technician role through experience and some on-the-job training. It was noted from the interviews associated with this report that this pathway will not be adequate in the longer-term because many trade staff may struggle to attain the higher-level skills that are required for the job; and
 Technicians operating in other industries that have higher-level automation related skills. In the mining industry a significant portion of such technicians seem to be recruited from the Army, and in the case of the oil and gas industry, from the Navy’s Submarine Service.
Implications for Vocational Education and Training
The current absence of a resources automation technician qualification is primarily the function of the following two factors:
 Absence of an immediate market
The development and delivery of courses by training and education organizations is a function of the market demand for those courses. It is likely that there is currently not a big enough employment market for graduates with a comprehensive set of skills in resources industry automation and as such limited student demand. This is a function of the fact that extensive automation is currently not widely adopted, and that where extensive automation is adopted, skills and expertise gaps are being filled by electrical engineers, or engineers and tradespeople with automation skills that have been developed in other industries such as defense. It is unlikely that institutions will invest in resources industry automation programs to any great extent until there is an adequate addressable market for the courses.
 Commercial-in-Confidence nature of many automation programs
Most of the extensive automation programs that are currently being developed and deployed are being done so by large multinational mining companies seeking first mover advantage in automation. As such, the intellectual property associated with these programs is being treated as commercial-in- confidence. The training of deployment and maintenance staff for these programs is typically conducted in collaboration with an equipment OEM or under an exclusive arrangement with a specific institution of training and/or education. This makes it difficult for other institutions to develop and validate general resources industry automation curricula.
At a mechanical trade qualification level (Certificate III), it is possible to cover some basic electrical concepts and to obtain a restricted electrical license. However, this is significantly deficient with respect to the skills required of an automation technician. An electrical trade qualification covers the required electrical skills more comprehensively including control technologies such as PLC, but still falls short of the required skill set. While a dual trade qualification (mechanical and electrical) would substantially progress a tradesperson toward the required qualified skill set, it will also still be deficient.
It is therefore not surprising that both public and private Registered Training Organisations are trending toward creating a qualification for an automation technician as a post trade qualification, typically at Diploma level, but in some cases associate degrees. There is also a view that most of the material for this post-trade qualification could be compiled by combining content from a range of existing electrical and mechanical

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Certificate IV and Diploma qualification curricula. Additionally, some course structures offer units in working and communicating in different cultures, and facilitate remote delivery of the course.
Implications for Higher Education
Generally speaking, it would seem that two different pathways are possible for the training of engineers with adequate skills and expertise to work with more automated resources industry systems:
 Mechatronics Engineering in Resources Undergraduate Degree
It would seem that the main challenge that resource companies face in employing a mechatronics engineering graduate is the lack of expertise in mining or hydrocarbon production processes possessed by the graduate, as conventional mechanical and electrical engineering can be harnessed by employing mechanical or electrical engineers. As such, there is a possibility that a specialised mechatronics engineering in resources undergraduate degree may emerge. This is unlikely to eventuate until the adoption of automation is adequately comprehensive so that a specific new resources industry technical profession in automation emerges.
 Post Graduate Qualification
In the short to medium term, it is more likely that a post-graduate qualification such as a graduate diploma or masters degree in mechatronic engineering that is focused on developing the required automation expertise in mechanical, electrical, mining or oil and gas engineering graduates will be the most practical pathway for relevant formal qualifications.
The high incidence of commercial confidentiality that surrounds proprietary automation programs is making it difficult for universities to assess future skill needs and determine the capability that needs to build into faculties for the delivery of future programs. While some industry automation programs are working directly with specific universities and other training organizations to develop packages for their employees, it is unlikely that wider consultation will occur until automation is more widespread.
An analysis of Australian universities that offer programs in mechanical, electrical, mechatronic, mining and petroleum engineering highlights the following:
 Within the combined curricula at each institution there appears to be a plethora of course material that subject to the requirements of the specific institution’s academic council and Engineers Australia, could potentially be reconfigured to at least form the basic formal qualifications at either an undergraduate or graduate level to meet the foreseeable technical professional needs of the resources industry as demand dictates;
 In all cases, the electrical and electronic engineering curricula most closely resembles that of the mechatronics curricula, noting that in some cases, a limited number of subjects more typically taught as part of a mechatronics or electrical engineering degree are also taught in the mechanical engineering degree; and
 In all cases, the content in the mining engineering and petroleum engineering curricula is the most removed from the mechatronics degree curricula. However, at least one university is contemplating developing an elective mechatronics stream as part of their bachelor of mining engineering program

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INTRODUCTION AND BACKGROUND
The Resources Industry Training Council (RITC) is a Western Australian Government funded joint venture between the Chamber of Minerals and Energy, Western Australia (CMEWA) and the Australian Petroleum and Exploration Association (APPEA). The RITC’s primary purpose is to provide strategic advice to the Western Australian State Training Board and the Department of Training and Workforce Development regarding the development and implementation of innovative solutions to address skills shortages and the changing workforce needs of the Western Australian resources industries2.
As the Australian resources industries expand in response to unprecedented and likely sustained demand for commodities from the growing economies of the developing world, issues of improved productivity, labour market constraints, OH&S and access to resources that increasingly present significant technical, environmental and social challenges, are strategic and operational issues that are ‘front-of-mind’ for resources company executives. A component of the solution to addressing each of these issues resides in the development and implementation of remote controlled and automated systems that improve both capital and labour productivity, remove humans from harmful or dangerous environments, and reduce the externalities that result from resources operations.
The increasing implementation of remotely controlled and automated systems in resources industry operations, either incrementally or on a step-change whole of operation basis, has implications for workforce structure, skills requirements, organizational structure and culture and ultimately, the vocational education and training (VET), and higher education programs and qualifications that provide the industry with a skilled workforce.
This report examines:
 The nature of remotely controlled and automated systems that are used in the resources industries and the discrete technologies that comprise those systems;
 The application of remote controlled and automated systems in other industries, and the issues that have been encountered in those industries with respect to adoption and implementation within those industries;
 The current extent of adoption of various remote controlled and automation systems throughout the value chain of different sectors of the Australian resources industry, and the current adoption trajectory of such systems in these sectors;
 Changes in workforce structure, skills requirements and organizational structures and cultures that will be required to facilitate the effective adoption of remote controlled and automated systems in resources industry operations;
 The implications of any new skills requirements on VET and higher education programs, and ultimately, the qualifications that institutions delivering these programs will need to be able to issue so that tradespeople, technicians and technical professionals can safely and effectively deploy, maintain and operate remotely controlled and automated resources industry systems; and
 The readiness and capacity of the VET and higher education sector to deliver these qualifications to the Australian resources industry.
2 In the context of the RITC and this report, the meaning of ‘resources industries’ is taken to include all minerals and hydrocarbon exploration, extraction, processing and exporting activity.

20
THE AUSTRALIAN RESOURCES INDUSTRY: AN OVERVIEW
In 2011 the Australian resources industry exported minerals and energy commodities with a total value of A$190 billion.3 Australia is in the top five producers of most of the world’s key mineral commodities. It is the world’s leading producer of bauxite, alumina, rutile and tantalum; the second largest producer of lead, ilmenite, zircon and lithium; the third largest producer of iron ore, uranium and zinc; the fourth largest producer of gold, manganese and nickel; and the fifth largest producer of aluminium, diamonds, silver and copper.4 It is currently the world’s 19th largest producer of natural gas and 29th largest producer of oil.5 The Nation’s Liquified Natural Gas (LNG) industry is set to surpass Qatar as the world’s largest exporter of LNG within the next few years.
Exploration, production, processing and/or export activities for minerals and/or hydrocarbons occur in every State and territory of Australia. However, minerals and petroleum operations in the states of Western Australia and Queensland collectively account for around 75 percent of the total value of the Australian resources industry’s output. This is illustrated in Figure 1 below.6
Figure 1 - Gross Value of Australian Resources Production by State (2008-09)
3 Bureau of Resources and Energy Economics (2011), Resources and Energy Statistics: December Quarter 2011, Australian Government, Canberra
4 Minerals Council of Australia (2010) The Australian Minerals Industry and the Australian Economy
5 British Petroleum (2011), BP Statistical Review of World Energy: June 2011, British Petroleum, United Kingdom
6 Bureau of Resources and Energy Economics (2011), Resources and Energy Statistics 2011, Australian Government, Canberra
$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Western AustraliaQueenslandNew South WalesNorthern TerritoryVictoriaSouth AustraliaTasmania AUD millions Gross Value of Australian Resources Production by State (2008-09)

21
In 2010-11 the Australian resources industry spent A$5.9 billion on exploration. Approximately 60 percent of this expenditure represents brownfields exploration (exploration around existing or known deposits)7 and the majority of exploration expenditure is associated with exploration for hydrocarbons, reflecting the much higher costs associated with offshore exploration activity.
In real terms, exploration expenditure in 2010-11 is expected to be the highest on record and nearly double the average exploration expenditure of the past 30 years,8 albeit this is, at least in part, the result of higher exploration costs.
Both the minerals and oil and gas sectors of the industry are in the midst of an unprecedented period of expansion. As at the end of April 2011, there were 94 minerals and oil and gas projects at an advanced stage of development with an associated record capital expenditure totaling A$173 billion.9 Again, the majority of this activity is occurring in the states of Western Australia (63 percent of capital expenditure) and Queensland (28 percent of capital expenditure). This is illustrated in Figure 2 below.
Figure 2- Estimated Capital Cost of Advanced Minerals, Energy and Related Infrastructure Projects by State (2011)
In Western Australia expansion is being driven primarily by major investment in natural gas developments in offshore Western Australia and associated onshore processing and export facilities, as well as a number of new
7 New, R., Ball, A. and Copeland, A. (2011), Minerals and Energy Major Development Projects – April 2011 Listings, Australian Bureau of Agricultural and Resource Economics and Sciences, Australian Government, Canberra
$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Western AustraliaQueenslandNew South WalesVictoriaNorthern TerritorySouth AustraliaTasmania AUD millions Estimated Capital Cost of Advanced Minerals, Energy and Related Infrastructure Projects by State (2011)

22
iron ore mines and logistics operations and expansion programs for existing iron ore mines and logistics operations. In Queensland, growth is being driven primarily by new coal projects, logistics operations and the expansion of existing coal projects and logistics operations, as well as the State’s rapidly growing coal seam gas industry. However, there are advanced projects in a wide range of commodities across Australia.
While Australia’s vast and diverse natural resources endowment has underpinned this world-class industry, as with resources industries world-wide, it has been technological advancement in exploration, production and processing methods that has resulted in Australia being one of the World’s most important and advanced resources industries. It is this technological advancement that has allowed the Australian industry to competitively exploit resources that are increasingly being found only in complex and deep geologies, demonstrate challenging mineralogies or reservoir characteristics, need to be accessed from challenging terrain or deep water and need to be developed in areas that are characterized by environmental or social conflicts. In this context, the increasing prevalence of remote controlled and automated systems in some sectors of the Australian resources industry is no more than a continuation of this trend.

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AUTOMATION TECHNOLOGY AND THE RESOURCES INDUSTRY AUTOMATION TECHNOLOGY AND ITS COMPONENTS
DEFINITION OF AUTOMATION, REMOTE CONTROL AND INTEGRATED OPERATIONS
Automation can be broadly defined as the intelligent management of a system, using appropriate technology solutions, so that operations of that system can occur without direct human involvement.10 The term automation is used somewhat clumsily in industrial applications to describe systems and processes that are characterized by a range of direct human involvement intensity, including processes and systems that have high levels of human involvement through remote control. There are very few truly fully automated industrial processes. Indeed, for many processes full automation is not desirable for reasons associated with complex and sometimes partially subjective judgments that are required to ensure optimum efficiency, accuracy and safety performance of a process.
Automation is also often used to describe integrated operations. The term integrated operations refers to the integrated management of people, work processes and technology through the sophisticated application of information and communications technologies to optimize operations. It facilitates the use of real-time data, collaborative techniques and multiple expertise across disciplines, organizations and geographical locations.11
For the purposes of this report, the term automation is used to describe automated and remotely controlled systems as well as systems that support integrated operations.
The current level of adoption of automation in the resources industry exists on a continuum spanning from the gradual implementation of off-the-shelf technologies to various aspects of operations (nominal automation), to almost total automation and remote control of discrete stages of the production process (partial automation), to mining and petroleum operations that involve very high levels of automation of the process from extraction to market delivery.
As automation systems move along this continuum in the resources industry, the extent of current adoption decreases (more profoundly so in the minerals industry than in the petroleum industry). Typically, the proprietary nature of intellectual property associated with the automation system increases, as does the need for new skills and structural and cultural change in the organization to support the automated environment and optimize its benefits through putting into effect integrated operations. This is illustrated conceptually in Figure 3 below and discussed in more detail in later sections of this report.
10 Mining Industry Skills Centre (2010), Automation for Success
11 Cavanagh, D. (2012), Integrated Operations, Integrated Energy

24
Figure 3 - The Resources Industry Automation Continuum
WHAT ARE THE KEY TECHNOLOGIES USED IN AUTOMATION SYSTEMS?
Automation is not a singular technology. Rather it is a system of integrated technologies, analytical and processes logic software that intelligently perform a function within a discrete process, across an entire process or across an entire system. Specific technologies that typically comprise an automation system in a resources industry operation include:
 Sensor technologies
 Database and data fusion technologies
 Logic software technologies
 Visualisation and simulation technologies
 Collaboration technologies
 Networking technologies
 Mechatronic technologies
Technologies deployed in a typical resources industry automation system, and the automation system itself, often require several important characteristics:
 Many systems involve field robotics technologies (see later section), which are technologies that allow highly automated pieces of mobile equipment to operate in an outdoor environment often in the vicinity of people. This implies the need for rigorous safety features; Nominal Automation
Automation of an individual device or systems component
E.g. Remotely operated
equipment
Off-the-shelf solutions
Partial Automation
Subsystem operated by a control room
E.g. Milling circuit that is operated via a central control room
Off-the-shelf solutions with some proprietary design
Total Automation
Fully integrated, automated and
remote controlled extraction, processing and logistics operation
E.g. Rio Tinto Future Mine
Large component of
proprietary design
Degree of
Automation
Relative
Level of
Adoption
Intellectual
Property
High
Low
Minerals Petroleum
High
Low
Minerals Petroleum
High
Low
Minerals Petroleum
Minimal Some Significant
Need for
New Skills
and Culture

25
 The systems are typically deployed in harsh environmental conditions where they are exposed to the elements (heat, dust, water etc). This implies a need for ‘ruggedisation’ or ‘marinisation’ of technologies and systems; and
 For mission critical and OH&S reasons, many automated processes in the minerals industry have to demonstrate very high levels of reliability, and often require multiple levels of redundancy and a high frequency of operator intervention.
The following sub sections describe some of the technologies that are common to resources industry automation systems.
SENSOR TECHNOLOGIES
A sensor technology is a device that measures or detects a real-world condition and converts that condition to an analog or digital representation that can be interpreted by another device or instrument or systems software. Real-world conditions that can be measured by sensors include:
 The identification, location and proximity of two-dimensional or three-dimensional physical or biological objects ranging from nanometers in size to very large objects;
 The direction and speed of motion of the device in which it is embedded or an external object;
 Temperature, pressure and mass of liquid, gaseous and solid phases;
 Viscosity of liquids;
 Light, including the intensity of red, green or blue colour spectrums; and
 Signatures of chemical entities in solid, liquid or gaseous phase.
Table 1 below describes some of the sensor technologies that are applicable to resources industry automation systems.
.

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Sensor Technology
Description and Application GPS Global Positioning System (GPS) is a satellite navigation system that provides location and time information in all weather, anywhere on or near the Earth’s surface where there is an unobstructed line of sight to four or more satellites. It is maintained by the United States Government and is freely accessible to anyone with a GPS receiver.
Precision GPS
Precision GPS systems augment a conventional GPS algorithm by integrating other data sources and accounting for common errors to provide a high probability of precise location. Precision GPS is used by mobile automated machinery to determine position and to navigate. mmRadar Millimetre (mm) wavelength radar is used as a sensor for the anti-collision systems on mobile autonomous equipment. It uses a very narrow pencil beam to detect the presence and speed of biological or physical objects in the pathway of the equipment.
Scanning laser range finder
Scanning laser range finders use lasers to scan an environment to create a two dimensional map of the proximity of nearby objects. Infrared spectrometer Infrared spectrometers detect the infrared region of the electromagnetic spectrum and are used to identify chemical elements. These sensors are used to identify ore and waste in digging and loading operations.
Strain gauges
Sensor measuring the strain of an object Resolvers and Encoders A resolver is an analog sensor used to measure degrees of rotation and an encoder is a digital sensor used to measure degrees of rotation.
LVDT sensors
Liner Variable Differential Transformer (LVDT) sensors are used to measure linear displacement. Inertial sensors Inertial sensors are sensors based on inertia and cover a range of sensors including MEMS and gyroscope technologies
RFID
Radio Frequency Identification (RFID) use radio frequency electromagnetic fields to transfer data from a tag attached to an object to a receiver for the purposes of identification and tracking.
Table 1 - Sensor Technologies Applicable to Resources Industry Automation
DATABASE AND DATA FUSION TECHNOLOGIES
A multitude of data is produced by automated resources equipment both from its sensors and operating logs. Significant amounts of data are also produced through the exploration, production system design and development phase. The ability of software to interrogate and analyse this data is central to both the operational integrity of the automation system and optimizing its benefits.
A database is an organized collection of digital data in the form of files, records, fields and other objects. A database management system is a software package that controls the creation, maintenance and use of a database. Data mining and data semantic tools refer to software that allows a user to analyse and interpret data by drawing relationships between data and analyzing those relationships. These technologies are integral to the use of data produced by automated systems.
In a large automated system such as a resources operation, data is derived from a wide range of sources and is rarely homogenous. Development of software code that effects the fusion of these heterogeneous data streams is necessary to effectively analyse and interpret the data.

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PROCESS LOGIC SOFTWARE TECHNOLOGIES
Process logic software technologies are collections of algorithms that may receive information from, sensors and databases, and perform step-by-step problem solving computational procedures and then initiate an action based on the outcome of that procedure. In a resources industry automation system this ranges from relatively simple Programmable Logic Controllers (PLCs) that perform this function for a discrete action or process, to software on embedded PCs and multi-core computers that control a number of processes in a piece of equipment, to very sophisticated and robust software systems that control entire processes or significant amounts of an entire operation through a very powerful integrated computing system.
VISUALISATION AND SIMULATION TECHNOLOGIES
Visualisation technologies refer to software that creates two and/or three dimensional images, diagrams or animations to communicate information through digital media. They range from simple two-dimensional displays to three-dimensional interactive media and virtual reality. Visualisation technologies perform a range of functions in resources industry automation systems including facilitating accurate remote control of processes and equipment, and supporting analysis of complex problems by operations staff.
Simulation technologies are software algorithms and associated visualization systems that predict the outcome of an action or set of actions based on the interaction between the action and all aspects of the operation. They determine factors such as likelihood and extent of the impact caused by the action(s), by processing the vast amount of operational data that is generated from the automated systems. Simulation technologies are critical to decision-making as they reduce the risk associated with a new action and facilitate whole-of-operations optimization.
COLLABORATION TECHNOLOGIES
Collaboration technologies facilitate video, audio and data connectivity between mobile devices and devices in fixed locations and are critical to facilitating integrated operations, as they allow mobile staff to interact deeply with a centralized operations centre or other fixed location.12
NETWORKING TECHNOLOGIES
Networking technology refers to software and hardware that allows devices to communicate with each other. They include wireless communications mediums such as Internet, satellite and microwave, hard wired mediums such as copper-wire and fibre options, communications protocols and the software and hardware for making connections and sending and receiving data. They facilitate the Local Area Networks and Wide Area Networks that are critical for the function of automated systems.
12 Cavanagh, D. (2012), Integrated Operations, Integrated Energy

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Competent networking presents one of the most significant technical challenges to the automation of many mining and petroleum operations. Because these operations tend to be in remote locations, often with significant physical distances between elements of the value chain, ensuring adequate bandwidth and necessary connectivity reliability can be a technically challenging and capital intensive exercise. In most resources automation applications, there is a hierarchy of connectivity reliability needs based on the OH&S and mission critical implications of the process that requires the connectivity. This is illustrated in Figure 4 below.
Figure 4 - Networking Hierarchy
Typically, high OH&S risk, and mission critical functions are hard-wired. Sub-packages such as PLC integration are typically hard-wired, or based on reliable wireless technology. For supervisory control and data acquisition there is a greater tolerance for less reliable wireless technologies such as the Internet.
As wireless technologies become increasingly reliable, it is highly likely that a substitution of wireless communications in traditionally hard-wired applications will occur, driven by the lower capital cost and greater flexibility that is facilitated by a wireless system. There is a significant risk that in areas where there is a high intensity of operations, such as the Pilbara and Goldfields regions of Western Australia, obtaining necessary proprietary rights to limited frequency spectrum will become a challenge for later adopters of automated systems.
Table 2 below describes some of the networking technologies that are applicable to resource industry automation systems.
Significant OH&S RiskWhole of operation Mission CriticalLow OH&S RiskSubsystem Mission CriticalNo OH&S RiskNon-Mission CriticalHard-wired (copper or fibre optic) Reliable wireless such as microwaveRange of wireless options including Internet

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Networking Technology
Description and Application Fieldbus A family of industrial computer network protocols used for real time distributed control of complex systems
Fibre optics
Optical fibre used for connecting devices through hard-wiring where communication is over long distances and/or high bandwidth is required Wireless networks Computer and other hardware networks that are based on radio waves rather than physical cables
Radio frequency networks
Networks based on radio frequency that support technologies such as RFID 3G and 4G Systems High bandwidth digital networks that operate through the cellular telephone network
Satellite Data Networks
Networks that transfer data between devices using a satellite system as the direct intermediary Microwave Network Radio frequency based network that is typically used for point-to-point connection because the small wavelength allows conveniently-sized antennas to direct a very narrow beam that can be pointed directly at the receiving antenna allowing nearby independent networks to use the same microwave frequency without causing interference
Table 2 - Networking Technologies Applicable to Resources Industry Automation
MECHATRONICS TECHNOLOGIES
Mechatronic technologies incorporate electronic and mechanical functions into a single device to perform robotic actions. It represents an interdisciplinary area of engineering that integrates mechanical and electrical engineering with computer science. A typical mechatronic technology is a device that receives a signal from a sensor, processes that signal through a software algorithm that then commands a mechanical device to perform an action. Examples of mechatronic systems are robots, digitally controlled combustion engines, machine tools with self adaptive tooling, contact-free magnetic bearings and automated guided vehicles.
Table 3 below describes some of the mechatronics technologies that are applicable to resource industry automation systems.
Networking Technology
Description and Application Electric Drive Systems Actuators that use electricity to create a mechanical motion
Hydraulic Drive Systems
Actuators that use hydraulics to create a mechanical motion Robotic Task Allocation Software that determines the priority of specific robotic actions depending on certain variables
Robotic Task Scheduling
Software that determines a schedule for the performance of various robotic actions depending on certain variables SCADA Control Supervisory Control and Data Acquisition (SCADA) generally refers to industrial control systems that monitor and control industrial processes
Camera Viewpoint Planning
Software that determines the field of vision required by a camera to provide information to an operator of a robotic device
Table 3 - Mechatronics Technologies Applicable to Resources Industry Automation

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OTHER CHARACTERISTICS OF RESOURCES INDUSTRY AUTOMATION SYSTEMS
Perhaps the two most distinguishing characteristics of resources industry automation systems are the extensive application of field robotics in a technically challenging environment, and the critical nature of a centralized, often remotely located operations centre that is necessary for whole of operation optimisation.
FIELD ROBOTICS
There is a long history of automation technology being successfully developed for use in clean, stable and predictable industrial processes such as on a manufacturing line. Field robotics is distinguished from more traditional automation by its focus on large-scale outdoor autonomous systems in applications that are characterised by relatively unstructured, difficult and often hazardous environments. It draws together the most advanced research areas in robotics, including navigation and control, sensing and data fusion, safety and reliability and planning and logistics. It aims to develop autonomous robotic systems capable of operating in highly challenging applications including mining, construction, cargo handling, agriculture, subsea and aerospace systems.
Central to most field robotics applications is the concept of an autonomous vehicle. It is this component of a field robotics system that presents the greatest operational challenges. Terrestrial, marine and aeronautical applications require the machines to operate in rain, snow, fog, humidity, dust, day and night. The sensors used for automation must be functional under these conditions, and robust to tolerate the water, dirt, mud, vibration and shock they can encounter as the machine engages the environment.
In many terrestrial applications the terrain is uneven or otherwise treacherous, and can be characterized by hazards such as potholes, ruts, thin branches and rocks that are occluded by features such as tall grass or steep slopes that are difficult to detect for such equipment, but necessary for ensuring safe passage. The operational environment may be uncontrolled in the sense that people, other biological entities and other machines can enter the environment. Furthermore, rigging the environment with infrastructure to assist vehicle automation may be challenging or prohibitively expensive. For example an underground coal mine will require new infrastructure continually, as material is progressively removed and the coal-face advances.
The ability to detect humans is the most important capability for the safe operation of autonomous vehicles.13 It is generally accepted that for safety reasons humans should be prohibited from entering an environment where autonomous vehicles are operating. This is typically ensured by electronic lockouts or physical barriers that ensure automatic shutdown of automated systems before humans approach them for inspection, maintenance, or to perform tasks in their vicinity. In mining, particularly underground mining, this can prove problematic. For example, lockout measures have limited the use of mobile mechanised equipment to the production phase of block caving operations.14
In the petroleum industry, operating remote and automated equipment in very deep water presents a range of problems associated with extreme pressures, temperatures and visibility. In aeronautical applications air- safety precautions particularly in areas of high air-traffic frequency or ground populations are paramount. However, it is the reduced risk of obstacle collision in many marine and aeronautical applications combined with the significant OH&S and cost savings that occur from removing humans from devices in such
13 Steiner, J., JPL Robotics Technology Applicable to Agriculture, NASA Jet Propulsion Laboratory and USDA Agriculture Research Service
14 Noort, D. and McCarthy, P. (2009), Automated Underground Mining, International Mining January Edition

31
environments that have seen a higher level of adoption to date of field robotics in these applications for the resources industries (subsea ROVs and airborne survey ROVs) than in terrestrial applications.
The range of tasks performed by a single field robotics device may be quite large, making full automation a difficult task at best. Also it is not enough for automation machines to merely function, they must also perform such that they are faster, less expensive, and/or safer than the human equivalent. In light of the fact that even so called unskilled labour is quite adept at the logic and motor skills that robotics seeks to imitate, this competition is significant. 15
THE CENTRAL OPERATIONS CENTRE
Perhaps the most important aspect of automated mining and petroleum production systems is that they create the opportunity to centralize the monitoring and control of all the processes that comprise the operation to a single physical location. The ability to locate some front-line workers to a central, and increasingly remote, Operations Centre (OC) where they can apply their knowledge to analyzing and interpreting operational data streams from sensors attached to equipment in the field, historical and real-time operational data from across the operation, and other third party data sets, creates a decision environment for effective and efficient problem solving, and opportunities to optimize operations that have not previously existed in many sectors of the resources industry.16 An OC is a major facilitator of integrated operations.
Having multi-disciplinary experts from different components of the production system sitting in the same room can deliver significant productivity improvements, as can having experts of the same discipline, say plant operators, from different sites sitting in the same room sharing ideas and learning from each other.17
In effect, an OC allows operators to overcome the ‘fog-of-mining’ and facilitates ‘whole-of-operations’ optimization, similar to the way that an Electronic Warfare Operations Centre overcomes the ‘fog-of-war’ in a military context. In one particular iron ore sector ‘whole-of-operation’ automation trial, the OC has been credited with:
 Identifying bottlenecks in car dumpers in the ports;
 Allowing continuous operation during an extreme weather event, by virtue of its dynamic rescheduling software re-routing trains to part of the logistics system not disrupted by the weather event;
 A 70 percent improvement in schedule reliability over a three year period; and
 A 200 percent improvement in the proactive initiatives from maintenance staff, where ‘whole-of- operation’ visibility has allowed them to better align maintenance tasks. 18
An OC will most likely deliver the greatest benefits where a single company owns the entire operating infrastructure, say from mine to market delivery. This explains the significant prevalence of OCs in the oil and gas industry, and the current significant investment in whole-of-operation automation in the Pilbara iron ore sector.
15 Stentz, A. (2001), Robotic Technologies for Outdoor Industrial Vehicles, Robotics Institute, Carnegie Mellon University, Pittsburgh
16 Crozier, R. (2012), Humans key to automated mines,
17 Dyson, N. (2012), ‘Robominer’, Mining Monthly, April Edition
18 Dyson, N. (2012), ‘Robominer’, Mining Monthly, April Edition

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The challenges associated with implementing an OC are primarily ones of orgnanisational structure and culture, rather than technology. Because an OC is a very different working environment to a typical mine, or even a typical on-site control room, significant change in the culture of the organization, team structures and work patterns and internal communication is required. This issue is discussed in detail in a later section of this report. Figure 5 below is an illustration of the Woodside iOps OC, designed for Woodside by Integrated Energy. This is clearly a very different environment to a typical production platform, LNG plant or mine operation. The Woodside iOps OC is distinctive in the industry in that it covers the full value stream (reservoir, drilling, production and production off take), with real-time process control, tactical collaborative support and decision making, as well as health, safety and environment functionality within the single OC.
Figure 5 - A Typical Remote Operations Centre19
THE EVOLVING CHALLENGE FOR THE RESOURCES INDUSTRY WORKFORCE
The increasing adoption of automation presents a critical challenge to the resources industry, as many of the technologies discussed above, and the integration of those technologies is not supported by a conventional resources industry workforce. Additionally, the skills, work patterns, leadership models and culture that are necessary to support an integrated operations approach to optimizing the benefits from automation are typically not present in a resources company, particularly in the mining sector. This is illustrated conceptually in Figure 6 below.
19 Figure used with the permission of Integrated Energy

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Figure 6 - The Key Challenge Presented by Automation
As a result, over time, vocational education and training, higher education and internal professional development programs will need to evolve to facilitate the required change in workforce skills and culture. In the interim, it is likely that resources companies will complement their existing workforce by sourcing skills from other industries. This is discussed in detail in a later section of this report.
KEY CENTRES OF EXCELLENCE IN RESOURCES INDUSTRY AUTOMATION AND ROBOTICS
The application of field robotics to develop highly automated outdoor processes is at the cutting edge of the science of robotics. This section of the report briefly summarises robotics research programs in Australia, together with some of the World’s leading robotics research centres. This is relevant to the subject of this report because many of these research centres are involved in robotics undergraduate and graduate education programs, and in some case delivering proprietary training to specific operations.
Main Implication for the Resources Industry
Workforce
Sensor Technologies
Database and Data
Fusion Technologies
Logic Software
Visualisation &
Simulation Technologies
Networking
Technologies
Mechatronics
Technologies
GPS, Precision GPS, mmRadar,
Scanning Laser Range Finder,
Infrared Spectrometer, Strain
Gauges, Resolver and Encoders,
LVDT Sensors, Intertial Sensors,
RFID etc
PLCs. Embedded PCs, multi-
Core computers etc
2D & 3D media, virtual reality etc Predictive software that determines
likely whole-of-operations outcomes
for a set of actions
Internet, satellite, microwave,
fibre optics, communications
Protocols etc
Electric Drive Systems, Hydraulic Drive Systems, Robotic Task Allocation, SCADA Control etc
Field robotics
Storage and interrogation of vast
Quantities of data Code that facilitates the integration
and interrogation of hetrogenous
data sets
Collaboration
Technologies
Video, audio and data connectivity
between mobile devices and devices
In fixed locations
Operations Centre
Systems that facilitate the monitoring
and control of the entire operation
from a single central location
Many of these technologies,
and the integration of these
technologies is not supported
by a conventional resources industry workforce or
organisational culture

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AUSTRALIAN ROBOTICS RESEARCH
In the past 15 years, Australia has come to lead the world in the development and application of robotics in large-scale outdoor field applications. Robotics and autonomous systems will be one of the most important and transformational technologies in the future of Australia. In the future, one of the next big applications from robotics will be in the stewardship of the natural environment, both in the marine domain and for terrestrial ecosystems. Australia has the skills and opportunity to lead the way in these endeavours. There are also many opportunities in remote healthcare, infrastructure maintenance and management of disasters including bush fires.20
The key robotics research centres in Australia are the Australian Centre for Field Robotics (which includes the Rio Tinto Centre for Mine Automation), the Cooperative Research Centre for Mining’s Automation Program and the CSIRO’s Transforming the Future Mine Program.
THE AUSTRALIAN CENTRE FOR FIELD ROBOTICS AND THE RIO TINTO CENTRE FOR MINE AUTOMATION
The Australian Centre for Field Robotics (ACFR) is based at the School of Aerospace, Mechanical and Mechatronic Engineering at the University of Sydney. Its research focuses on the development, application and dissemination of autonomous and intelligent robotics for operations in the outdoor environment.
The ACFR was established in the early 1990s with ten staff. In 1999 it became an Australian Research Council (ARC) Key Centre, and in 2003, an ARC Centre of Excellence. Today, the ACFR has over 100 academic, research and engineering staff members. It is recognised as being one of the world’s largest robotics research groups.
Researchers at the ACFR have been instrumental in the development of a number of the core technologies that form the foundation of field robotics today, including the SLAM algorithms which have become arguably the most important single piece of international robotics research in the past 15 years. This project was critical to establishing the international reputation of the ACFR.21
The AFCR has substantial experimental facilities including three laboratories and a field test site, a range of experimental and production vehicles, industry-quality mechanical and electrical design and fabrication facilities, and the latest embedded computing, sensing and control technologies. It has established a number of leading research centres that are funded by the Australian Research Council (ARC), mining, security and defense and environmental agencies.
The AFCR undertakes fundamental and applied research in field robotics and intelligent systems that encompass the development of new theories and methods, and the transfer of these to industrial, social and environmental applications. The research program at the AFCR focuses on enabling field robotics in the four areas summarised in Table 4 below.
20 Durrant-Whyte, H. (2010), The Robots are Coming: The Robotics Revolution in Australian Industry, The Warren Centre for Advanced Engineering

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Sensors, Fusion and Perception
Actuators, Control and Decision
Modeling, Learning and Adaptation
Architecture, Systems and Cooperation  Sensing  Representations of information  Modeling and management of uncertainty  Data fusion  Perceptual interpretation  Of individual micro and macro machines  Of heterogeneous groups of platforms and sensors  Of contact and interaction with the environment and each other  Supervised and unsupervised learning in unstructured and dynamic environments  Multi-agent learning  Pattern recognition  Concept formation and adaptation to the environment  Design and optimization of ‘systems of systems’  Modeling and management of complexity  Large scale systems theory  Modeling of information flow, negotiation and cooperation between platforms and intelligent systems
Table 4 - Major Research Themes at the Australian Centre for Field Robotics
The AFCR also supports education programs across the university. In particular it supports post-graduate students, and industry training programs. AFCR staff deliver various subjects for the degree of Bachelor of Engineering in Mechatronics Engineering at the University of Sydney (this is discussed in detail in a later section of this report).
The AFCR has a very strong industry focus. It works with industry to build and maintain links with both system developers and end-user industries. The AFCR has four affiliated centres, including the Rio Tinto Centre for Mine Automation (RTCMA). This centre was established in 2007 with Rio Tinto committing $21 million for an initial five year period. The aim of the RTCMA is to develop and implement the vision of a fully autonomous, remotely operated mine. It aims to automate surface mining as a process, especially focusing on issues of data fusion, systems architecture and integration of platforms and information into the mining operation.
The RTCMA has a range of programs underway that cover sensing, machine learning, data fusion and systems engineering. It is working closely with Rio Tinto on the implementation of its Mine of the Future program (discussed in a later section of this report). The RTCMA program is structured according to three main sub- programs:
 The technology program has the objective of applying and developing existing and new technology to the automation of current mining operations in the areas of drilling, loading, haulage and to integrate these into a coherent mining automation system;
 The research program has the objective of developing key enabling technologies for automated and remote mining including, sensing, data fusion, machine learning, machine control and mine systems engineering.
 The training program aims to deliver new skills and trained graduates in mining automation, enabling Rio Tinto to support and make best use of automation across its global operations.
The AFCR is discussed again in the case study section of this report.

36
CRC MINING AUTOMATION PROGRAM
The CRC Mining was established under the Australian Government’s Cooperative Research Centres (CRC) program in 2003, with initial Federal Government funding of $27 million over seven years that is leveraged against approximately $100 million of funding and in-kind support from university and industry partners in the CRC Mining. In 2009, the CRC Mining received a $12 million five year extension from the Federal Government. Table 5 below summarises the current partners in the CRC Mining.
Industry Partners
University Partners Anglo American AngloGold Ashanti Barrick Gold Corporation BHP Billiton Caterpillar CSC Herrenknect Tunnelling Systems Newcrest Mining Limited Newmont Mining P&H Minepro Services Peabody Energy Sandvik Xstrata University of Newcastle University of Queensland University of Western Australia Curtin University
Table 5 - CRC Mining Partners
The CRC Mining’s research program is organized according to the themes of:
 Rock fragmentation;
 Drilling processes for fugitive emissions;
 Equipment and power management; and
 Automation.
The automation program undertakes fundamental and applied research in the areas of:
 Control strategies that enable automated machines to operate independently with other equipment;
 Situational awareness capabilities;
 Integration of automated machinery into mine systems; and
 Workforce skills that must be enhanced to support the deployment of high-end automation technologies
The CRC Mining has successfully commercialized a number of outcomes from its automation program through a spin-out company, Acumine, including:
 Haulcheck – a system using lasers to maintain large haul trucks on a roadway;
 mm-wave radars for monitoring stopes and ore-passes in underground mining;
 Proximity monitoring systems for mine operations to ensure safety22

130103 final report - rise of the machines ritc view final jan 2013

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