CITIC Pacific Mining optimises operations through digital innovation with SAP Leonardo

SAP’s real-time insights helps drive CITIC’s goal of becoming the lowest cost, large-scale magnetite miner in the world. CITIC Pacific Mining (CPM), developer and operator of Australia’s largest magnetite mining and processing facility, is gaining new insights, and improving cost-effectiveness and safety through digital innovation with SAP Leonardo.

SAP Leonardo enables businesses to adopt new capabilities and business models by integrating breakthrough technologies – including Internet of Things (IoT), machine learning, blockchain, big data and analytics – via the cloud to accelerate digital transformation.

As it ramps up production and seeks to put the Sino Iron project on a sustainable footing, CPM required a system that would streamline its business processes by collecting, mapping and analysing fleet and vehicle data in real time. By using real-time insights, it aims to increase vehicle utilisation to 80% and reduce maintenance costs by 10%.

CPM chose SAP Leonardo IoT for SAP Vehicle Insights to accelerate its three strategic objectives – detect and monitor real-time changes, make informed decisions and execute on plans quickly and efficiently.

The technology was implemented across 230 light vehicles, buses and service trucks at Sino Iron, south of Karratha in Western Australia’s famed Pilbara region, in July. CPM is among the first organisations in the Asia Pacific Japan (APJ) region to go live with SAP Leonardo technology.

“SAP Leonardo has enabled us to use IoT, analytics and integration technologies to achieve greater insights into the utilisation and maintenance of our fleet,” said Ray Achemedei, General Manager Information Services, CITIC Pacific Mining. “Physically, we’re one of the largest mining operations in Western Australia – with fully-integrated mining, processing and port terminal facilities, as well as standalone accommodation precincts. At any given time, we’ve got hundreds of vehicles and pieces of plant operating around the site.

“By harnessing real-time vehicle data, we can monitor accurate odometer and engine hours to help reduce maintenance costs, prevent failures and avoidable consequences, improve safety, and provide opportunities to optimise scheduling and reduce our impact on the environment.”

Additionally, CPM can streamline the way it calculates and claims monthly fuel tax credits.

Achemedei added: “SAP Vehicle Insights is driving greater operational efficiencies within the business, which will underpin our long-term sustainability. For example, knowing when, where and how our mobile fleet is being used provides huge scope to deliver better operational outcomes.

“Greater efficiency mean lower overall costs. For our industry, this is absolutely critical.”

Colin Brookes, President and Managing Director, SAP Australia and New Zealand, said, “SAP Leonardo has empowered CPM to improve maintenance processes, reduce reliance on rented vehicles and minimise its environmental impact. We share a vision of delivering value by streamlining processes. This is amplified by the innovation delivered via SAP Leonardo’s real-time capabilities.

“It’s exciting to have one of the APJ region’s first implementations of SAP Leonardo here in Australia. We’re helping CPM deliver meaningful change and look forward to applying these learnings to other projects in a broad range of industries.”

CPM is a wholly-owned subsidiary of Hong Kong-listed company, CITIC Ltd. Headquartered in Perth, the company was established to manage the construction and operation of the Sino Iron project, an integrated magnetite mining, processing and port operation that will secure a long term stable source of quality feedstock for steel mills, including CITIC’s special steel facilities in China.

As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to the boardroom, warehouse to the storefront, desktop to a mobile device – SAP software empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition.