Tag Archives: digitalisation

Sandvik enters LKAB-led SUM project as Volvo Group departs

Automation, Communications in mining, Environmental, IoT, Mineral project development, Mining equipment, Mining services, Mining software, Power supply for mines, Sustainable mining, , , , , , , , , , , , , , , , , ,

Sandvik has joined the Sustainable Underground Mining (SUM) project being run by LKAB at the same time as the Volvo Group has exited the Sweden-based collaboration.

The moves come as the iron ore miner looks to “further strengthen a joint endeavour towards sustainable underground mining at great depths”, it said.

To develop the digitalised, autonomous and carbon-dioxide-free mine of the future, in collaboration with other globally leading Swedish companies, LKAB initiated SUM in 2018.

After 2030, LKAB must be ready to mine iron ore deeper in the mines in Kiruna and Malmberget, in northern Sweden. For this, one of Sweden’s biggest industrial investments ever, decisions will have to be taken in the mid-2020s.

“This type of strategic collaboration project is very complex, each company contributes its specific expertise, and the partners will link together both digital systems and operations,” LKAB says. “Providing unique possibilities for SUM, the test mine, Konsuln, in Kiruna will serve as a real mine environment where technology, machines and working methods will be tested.”

Sandvik will be joining LKAB, Epiroc, ABB and Combitech in trying to achieve this goal. The Volvo Group’s earlier partnership in SUM will now take the form of other collaboration with LKAB, the miner said.

Jan Moström, President and CEO of LKAB, said: “In the coming years, LKAB must have a solution in place to be able to mine iron ore at depths approaching or exceeding 2,000 m in a cost-effective way by employing technology that is safe, autonomous, electrified, digitalised and carbon-dioxide-free.

“To enable this, collaboration with other leading industrial companies will be decisive. Sandvik’s longstanding experience of producing underground vehicle systems will complement the ongoing work in an important way.”

Stefan Widing, President and CEO Sandvik, said: “LKAB has used automated equipment from Sandvik for many years and we look forward to the opportunity to extend our collaboration and introduce new and advanced solutions that will set an industry standard.”

Epiroc and Sandvik will be relied on for battery-powered, autonomous and efficient mining equipment and related solutions that will ensure improved productivity and safety in LKAB’s mines. ABB’s role is to contribute knowledge and solutions for electrification, automation, service and maintenance. Combitech, meanwhile, will bring broad expertise and experience when it comes to connecting autonomous processes and people via so-called digital ecosystems.

LKAB says significant progress has been made on the project to date, including:

  • Successful establishment of the test mine, Konsuln, in Kiruna, where testing is carried out in a real mine environment;
  • An integration and collaboration platform, ‘LOMI’ (LKAB Open Mine Integrator) has been developed to enable an open systems architecture whereby all partners can develop modules and solutions that work together;
  • ABB has delivered ABB Ability System 800xA, the control-room console Extended Operation Workplace and a “Collaboration table” for visualising key functions and key figures in the mine, allowing the operator to monitor and control equipment in the best, most sustainable way. The ambition is that everything that is done in the test mine can be approved, planned and controlled via a project office at surface level, so that underground work can be done more efficiently;
  • Epiroc has delivered the drill rig Easer L and Scooptram ST18 LHD, both equipped for automation functionality, for the test mine, and operators and service personnel have been trained. The Easer L, commissioned in 2019, has shown good results in drilling over 50-m-long holes in the test mine, which is an important step for planning the future mine layout. For the loader, during Autumn 2020, the plan is to conduct tests with increasing complexity in terms of automation and interoperability; and
  • Combitech has delivered new solutions for systems platforms on an ongoing basis together with LKAB’s IT department. The aim is to synchronise new technology with existing systems.

In March 2020, the “Testbed for integrated, efficient and carbon-dioxide-free mining systems”, a part of SUM, received funding amounting to 207 million Swedish kronor ($23 million) from the Swedish Energy Agency.

Sandvik debuts fully autonomous, battery-electric, cabin-less AutoMine Concept vehicle

Automation, Environmental, IoT, Mining equipment, Mining services, Mining software, Power supply for mines, Sustainable mining, , , , , , , , ,

Sandvik Mining and Rock Technology has unveiled the direction it thinks the underground mining industry is heading: fully-electric, autonomous and cabin-less.

During its virtual Innovation in Mining event on September 29, David Hallett, Global Product Line Manager, Automation, and Jussi Puura, Research and Technology Development, Digitalization Lead, unveiled its next-generation AutoMine® Concept vehicle to back up this view.

Based on the latest technologies and equipped with completely new sensing capabilities and artificial intelligence to enhance mining operations, the AutoMine Concept vehicle perceives its surroundings and environment in 3D and reacts to it in real-time, Sandvik says.

These technologies provide clear customer advantages by allowing vehicles to adapt and plan their own routes, and to find the most suitable paths even in continuously changing environments, according to the company. The obstacle detection, collision avoidance and 3D online mapping capabilities, meanwhile, improve adaptability and increase flexibility.

During a demonstration of the machine tramming, loading and dumping material at the Sandvik Test Mine in Tampere, Finland, Hallett and Puura explained how this cabin-less, fully-electric machine worked.

“With this concept vehicle, we have the ability to not only showcase our future technologies, but build the platform and foundation for our next-generation automation products,” Hallett said.

“Subsequently, we will start to gradually deploy these technologies to our existing AutoMine products providing opportunities for our current customer base to realise value with the products they have today, and make them readily available for future customers, as well.”

Sandvik says the vehicle represents a foundation for using the AutoMine technology in various equipment types and can be applied to any vehicle.

Hallett added: “The AutoMine concept is not a manual machine we have adapted for automation, but rather the opposite in which the machine has been designed for automation in mining.”

Puura stated a key differentiator of this concept vehicle compared with the company’s existing AutoMine range.

“Our target is to make these autonomous machines work safely with people and manual machines in the same area without the need for area isolation or safety gates.”

Riku Pulli, Vice President, Automation at Sandvik Mining and Rock Technology, said the AutoMine Concept is the world’s first fully autonomous underground mining machine built specifically for automation.

“This technology raises ease-of-use, effectiveness of asset utilisation and adaptability to a new level, resulting in higher productivity,” he said. “These technologies will truly change the face and pace of autonomous mining.”

Opt2go and Tata Consulting Engineers combine engineering and digital expertise

IoT, Mining services, Mining software, , , , ,

Opt2go Pty Ltd has signed a strategic alliance with Tata Consulting Engineers (TCE) aimed at providing the latest proven engineering expertise and digital solutions to the energy, metals & mining and oil & gas sectors in Australia and Oceania.

The combined expertise of the professional service company and digital enabler (Opt2go) and the leading engineering company (TCE) will enable customers to access world-class, cost-effective engineering, digital transformation and optimisation solutions, which will significantly improve business bottom-line performance and operational costs, they said.

Steve Hyslop, Opt2go CEO, said: “Our unique approach, combining process engineering, automation & control and software is not only what differentiates us, but also what makes us successful. We provide a broad range of services and solutions to help organisations facilitate change, achieve their vision and optimise the financial performance and productivity of their assets.”

Rajat Kaushal, VP International Marketing and Sales at TCE, said: “Coming from one of India’s largest and most respected business groups, we are recognised amongst the most reliable engineering consultants, known for several first-of-its-kind projects. The interdisciplinary skills of our 3,000+ engineers substantially support our problem-solving DNA. With our extensive experience and expertise, we are looking forward to scaling new frontiers with focus on industry 4.0.”

One recent mining project TCE has contributed to is the Vedanta Resources-owned Gamsberg zinc project, in South Africa (pictured).

Sandvik underlines interoperability policy for mining’s digitalisation journey

Automation, Communications in mining, IoT, Mining equipment, Mining safety, Mining services, Mining software, , , , , , , , , ,

The COVID-19 pandemic means less people in the mining area, working to achieve the same output; this makes digitalisation no longer a nice-to-have but a vital efficiency mechanism for survival, according to Niel McCoy, Business Line Manager for Automation and Digitalisation at Sandvik Mining & Rock Technology.

McCoy says the challenge when it comes to applying digitalisation successfully is often getting the ‘vision’ right from the outset.

“Most mining companies have for years been working to digitalise their operations, but the difficulty is to know exactly what this process is meant to achieve and where managers want their mines to be in the future,” McCoy says. “Bringing in new technologies means fundamentally changing the way your operation runs, so you need to be ready for the change management that this will require.”

The result is many mines still struggling to develop and apply digital strategies, the company says.

Effective digitalisation, McCoy says, involves nothing less than moving away from the traditional style of management. It means bringing everything towards a more centralised point.

“Digitalisation allows the whole underground mining operation to become visual – as if the ‘roof’ has been lifted off the mine – and to be managed from an operational management centre,” he says. “This gives management a view of all operations in real time, and the ability to optimise the various processes.”

Before any digital implementation can begin, the goal must be clear in everyone’s minds – a picture of what their ‘mine of the future’ looks like, he says. This will then guide the roadmap to be followed for adoption of digital tools.

“Without an end in mind, this will become just another initiative,” McCoy says. “Operations people will be unable to contextualise what the digital solutions mean within the big picture, and how it will improve their day-to-day activities and outcomes. This is mainly due to the data not being used in day-to-day management and decision making. It can never be a ‘side project’.”

McCoy emphasises that digital solutions are not just for managers to see more clearly what is happening on their mines; it is also vital for the people on the ground to run their operations more effectively and efficiently. As a result, there needs to be full buy-in from the start if the intended efficiencies are to be realised in practice.

“The only way of making mining operations more efficient is to understand what is happening and where, and to react accordingly as quickly as possible,” he says. “One of the main shortcomings with traditional, hard copy reporting methods on mines is that it simply takes too long for managers to sort through the raw reports from each shift and identify problems in time to make a meaningful intervention.”

This means that operations can never be properly optimised, according to Sandvik. Digital tools play a valuable role in addressing this challenge, helping mines achieve their key performance indicators.

“A good example of a key performance indicator in the context of the COVID-19 pandemic is this: how do we get the best out of a reduced workforce?” he says. “Once a mine has clarified how it plans to approach this, it can start selecting the appropriate digital tools to achieve its goals.”

Niel McCoy, Business Line Manager for Automation and Digitalisation at Sandvik Mining & Rock Technology

Change management is at the heart of the process, based on short interval control and process management, according to the company, with Sandvik Mining & Rock Technology’s core focus in digitalisation being process management and optimisation, through its OptiMine® product.

There are five different modules within OptiMine that we offer customers, depending on their digital requirements,” McCoy says. “Further digital solutions are also available, relating to aspects including telemetry of non-Sandvik equipment, face utilisation, ventilation monitoring, personnel tracking and ventilation-on-demand through our Newtrax platform.”

McCoy says Sandvik’s experience in this field is substantial, demonstrated by the fact that OptiMine has been installed at about 66 sites worldwide.

He also emphasises that, while industry technology providers have their own specific focus areas, mines need to ensure the different systems integrate effectively.

“As a manager on a mine, you don’t want to have dozens of different login points and dashboards to manage your operational data,” he says. “Rather, you want just a few key interfaces from which you can gather the overview you need. That is why it is so important to have your digital vision and understand what solutions you will require to achieve this vision.”

Interoperability is, therefore, a vital aspect of this digitalisation planning – this is, again, an area Sandvik has been working on, with many of its digital solutions now able to be integrated into platforms supplied by other vendors.

“Sandvik Mining & Rock Technology’s leading interoperability policy commits the company to working with any other type of information system that a customer has on site,” it says. “This is to achieve the effective transfer of data between systems, to make it more useful for the customer.”

McCoy added: “We are very proud of this policy, and are one of the first original equipment manufacturers to make such a policy public. It shows our understanding of the bigger digital picture and our role within it – aimed at ensuring that the customer is empowered to use their data the way they choose.”

Epiroc in Q2: Australia service business, automation/digitalisation projects stay strong

Automation, Communications in mining, IoT, Mining equipment, Mining finance, Mining services, Mining software, Power supply for mines, Sustainable mining, , , , , , , , ,

There were some bright spots in Epiroc’s latest COVID-19 affected quarterly results that bode well for those companies serving the mining industry.

The headline figures were a 23% year-on-year drop in orders received to SEK8.105 billion ($913 million), a 20% fall in revenue to SEK8.458 billion, and a 37% cut in operating profit to SEK1.418 billion.

As President and CEO, Helena Hedblom, explained in the quarterly results: “The COVID-19 pandemic impacted us significantly in the quarter, yet we managed to quickly adapt our way of working, lower our costs, show resilience in our profitability, and deliver a strong cash flow.”

This cash flow – SEK1,963 million – was actually 30% higher than a year ago, which has no doubt been helped by its rationalisation and cost cutting.

Epiroc is a slimmer organisation than it was a year ago. As of June 30, 2020, 13,967 employees and 1,145 consultants/external workforce employees were on its books. This is 702 people lighter than it was at the same time in 2019.

On June 2, Epiroc announced it was giving notice of termination to 425 employees in Sweden in response to lower global demand from mining and infrastructure companies amid the pandemic and to position the company better for the future.

This followed an announcement in April that it was to consolidate the manufacturing of exploration drilling tools in Canada, gradually moving its base from North Bay to Montreal and Sweden over the course of 2020, with 65 employees affected.

Outside of Europe and North America, there were some positives for the company and the wider mining industry to consider.

For the company’s service business, which makes up the majority of its revenues, the orders received decreased 3% organically (year-on-year) to SEK3.719 million. This is a mild contraction compared with the 29% year-on-year organic drop it experienced for equipment orders.

This shows that while companies are not, on the whole, buying new equipment, they are still spending the money to keep their fleets going.

Compared with the previous year, service orders in local currency decreased in all regions, except Asia/Australia, another brightspot.

Helena Hedblom expanded on this trend when speaking to IM: “In general, the activity levels in mining in Australia have kept up very strong in the quarter. That is the only region where there has not been a big drop in the activity level; if we look at the other regions in the world, there are only a few countries with the same development, maybe Chile and Brazil as I said on the call (with analysts and investors).

“Mining in Australia has held up better than the rest of the world.”

With its main workshop and distribution centre for parts in Perth, Western Australia, servicing major gold and iron ore mines in the state, and various other facilities across the country, the company’s deliveries have also not been affected by the border issues related to COVID-19, Hedblom said.

Australia was arguably quickest out of all mining regions to adapt to COVID-19-related operational changes and its government has prioritised keeping the sector open throughout the entire pandemic.

With commodity prices such as gold and copper relatively strong and more governments in various countries now realising mining’s positive contribution, one would expect other places to follow suit in the upcoming months and quarters.

Epiroc’s quarterly results also provided some evidence of COVID-19 potentially speeding up the digitalisation and automation trend.

“In the quarter, we received multiple orders for automation solutions for both underground and surface applications, including a large order in Chile of equipment with 6th Sense solutions for automation, connectivity and information management,” Hedblom said in the results statement.

The Chile order referenced was for Codelco’s Chuquicamata underground mine, which included multiple units of Scooptram ST1030 and ST18 loaders, the Boomer S2 face drilling rig, the Boltec M bolting machine, and the Minetruck MT65.

On top of being equipped with 6th Sense, these machines come with Epiroc’s Rig Control System, RCS, which makes the equipment ready for automation and remote control, and Epiroc’s Certiq system, which allows for intelligent monitoring of machine performance and productivity in real time.

Speaking to IM, Hedblom said: “I think the pandemic has clearly increased the interest [in automation and digitalisation]. The mining companies, of course, are trying to minimise the number of people on site, and here digitisation, tele-remote, as well as automation, can offer support for that work. We are seeing more and more interest in that.”

She added: “We have been able to continue to deploy our automation projects because we have invested in automation centres regionally out in the different markets, on most continents. That has supported us to continue with this journey even though we can’t travel from Sweden to other countries at the moment.”

Summing up the results and the company’s broader offering during these pandemic-hit times, Hedblom concluded: “We have been focusing on lowering our cost in light of the pandemic and, as we have talked about, investing more in innovation than we have ever done. That is our commitment to the industry; to continue to come up with new products with better solutions from a productivity, safety and sustainability standpoint.”

Epiroc slims Sweden workforce following COVID-19 related demand drop

Automation, IoT, Mining consumables, Mining equipment, Mining maintenance, Mining services, , , , , , , , , , , ,

Epiroc has provided a notice of termination to 425 employees in Sweden as it looks to adapt to the changing COVID-19 demand situation in the mining and infrastructure sectors.

The move is in response to lower global demand from these sectors amid the pandemic, and to position the company better for the future, it said.

Some 350 positions are expected to go at the company’s Örebro facilities, with 75 positions being removed in Fagersta, Sweden, of which half are positions in production, the company said.

Örebro is a main manufacturing and research and development hub for Epiroc’s underground and surface equipment as well as for service and spare parts supply, while Fagersta is home to Epiroc’s rock drilling tools business. Epiroc has about 3,100 employees in Sweden, out of a global workforce of some 14,000.

Epiroc said: “The action is the result of Epiroc facing a significant drop in demand from customers due to the COVID-19 pandemic’s effects on the global economy. The work reductions are also part of Epiroc’s continuous effort to become as agile and efficient as possible and follows various efficiency measures taken worldwide since 2019.”

The company, in April, announced it would consolidate the manufacturing of exploration drilling tools in Canada, gradually moving its base from North Bay to Montreal and Sweden over the course of 2020, with around 65 employees in North Bay, Ontario, being affected.

Helena Hedblom, Epiroc’s President and CEO, said: “We are taking these actions to adapt to the new market situation following the COVID-19 pandemic and to make us stronger and more resilient for the future. Unfortunately, we must take such a drastic action as giving notice of termination. We regret the negative consequences this will have for our colleagues and those close to them, and we will support our employees in this difficult situation.

“These actions will allow us to continue to prioritise innovation and to develop our technology leadership in order to support our customers’ operations and improve their productivity.”

Epiroc’s innovation investments have led to the mining and infrastructure industries becoming more productive, safe and climate friendly, according to the company, following the adoption of its automation, digitalisation and electrification solutions.

Epiroc posts Q1 results as it braces for future COVID-19 impacts

Automation, Communications in mining, Equipment maintenance, Mineral exploration, Mining consumables, Mining equipment, Mining maintenance, Mining policy, Mining safety, Mining services, Power supply for mines, , , , , , , ,

“We expect that the demand both for equipment and in the aftermarket will be lower and that the effects of the pandemic will have a significant negative impact on revenues and profit in Q2 (June quarter).” That is the headline quote from Epiroc CEO, Helena Hedblom, in the mining OEM’s March quarter results.

While the prospects for the current quarter look far from rosy, the results for the March quarter were reasonably strong: revenues dipped only 7% (SEK9.134 billion ($903 million)) year-on-year, profits rose 3% to SEK1.4 billion and operating cash flow jumped 225% to SEK1.5 billion.

Despite Epiroc’s China business being hit in February, and its manufacturing facilities for consumables in India, South Africa, and Canada (Quebec) being temporarily closed from the end of March, there were limited COVID-19-related effects on its March quarter results, the company stated.

As the impacts of the pandemic continue to grow with restrictions from various governments and authorities, the impact has started to be felt more acutely by Epiroc. Hedblom told analysts after the results release that the commissioning of new equipment was becoming harder with such restrictions in place, as was the transportation of its products. On the latter, the company commented that its costs had risen.

Fortunately, the company is in the middle of a wide-ranging revamp to its supply chain that is seeing key parts and service personnel redeployed to hubs near its major customers. Although this program is not yet complete, the availability of local inventory has somewhat dampened the impact of the COVID-19-related restrictions to date.

Similarly, the company has managed to navigate a supply shortage of certain components in Europe, Hedblom said. Speaking to IM after the analyst call, she said the manufacturing teams were utilising existing component stockpiles to complete outstanding tasks.

Just how many future tasks the manufacturing team has all depends on how long mine stoppages in the likes of South Africa, Canada, Peru and India continue. While South Africa miners are set for a phased ramp up of operations and those miners in Quebec have been given the go ahead to reopen, there are many mines that remain on care and maintenances.

Hedblom said these dynamics were very different to financial downturns where specific commodities and companies with lower margins were hit due to cashflow issues.

“It is evenly split between different commodities,” she said referring to the shutdowns. “There are plenty of gold mines in there, for instance, and that is despite the gold price holding up well.”

During this time – and factoring in potential future supply chain issues – Epiroc is prioritising its aftermarket customers to keep existing mines operating.

One would estimate the percentage of revenue associated with aftermarket sales would, therefore, grow beyond the 72% registered in the March quarter (which itself is an 8% rise from the December quarter) based on the assumption mining companies would defer new equipment purchases until restrictions had been lifted and global economies had stabilised.

This would also mirror the March quarter results where Epiroc recognised a 12% organic increase in service orders, compared with the previous year, at the same time as orders for equipment, rock drilling tools and attachments decreased.

Yet, this all depends on how long existing mine stoppages are enforced.

Epiroc said: “Mining is deemed essential in many countries, which means that most mines continue to operate, but in some cases mines have temporarily stopped operations or operate at reduced capacity due to restrictions from governments and authorities.

“As a consequence, Epiroc estimates that revenues from the aftermarket will be negatively impacted in Q2. The magnitude of the impact will depend on how the restrictions will develop during the quarter.”

While the company is up front in its assessment that revenues and profits will be affected by the COVID-19 pandemic in the June quarter, the new CEO said the company would continue to invest in R&D throughout this period.

“We have consolidated in admin and marketing, in addition to manufacturing (see the latest announcement on its North Bay facility), but I am protecting R&D,” Hedblom told IM. In late November, Hedblom said the company was currently investing 2-3% of revenue in R&D.

Previous R&D investments have led to the development of many innovative products from Epiroc – mainly geared towards automation, digitalisation and electrification – and Hedblom said some “very exciting products” would be launched later this year, regardless of COVID-19 restrictions.

Some of these new products will likely help miners continue operating in environments such as those being experienced now, with Hedblom seeing the automation trend the company recognised, pre-COVID-19, picking up where it left off, post-COVID-19.

“The more people you can remove from the mine site and the more you can control the environment in which they work (remote operations, for instance), the better,” she said.

Epiroc trusting its 6th Sense on mine automation, electrification, digitalisation developments

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During an enlightening Capital Markets Day, in Stockholm, Sweden, Epiroc backed up its credentials as a leader in the mine automation, digitalisation and electrification spaces, outlining its progress to date and its medium- and long-term plans to capture more market share.

A few weeks after putting on the investor showcase – but before Helena Hedblom was announced as the incoming President and CEO – IM spoke with President and CEO, Per Lindberg, and Senior Vice President of Corporate Communications, Mattias Olsson, to get some detail behind the presentation slides.

IM: Automation featured very widely in the capital markets day (CMD) presentations earlier this month: In general, how would you characterise the mining industry appetite for this new technology? Where is the average customer on your automation scale?

PL: First of all, the appetite is very large; most customers are looking at automation in one way or another.

It is hard to do a mathematical average when it comes to where the industry currently is, but the average miner is probably down on the left-hand side of that scale (pictured below) – somewhere in between tele-remote and single machine automation.

IM: Over the next five years, where do you see most potential growth for autonomous solutions in terms of underground or open-pit mining? What market dynamics are accelerating this uptake?

PL: Most likely it will happen in both surface and underground. The potential for productivity and safety improvements is probably greater in underground, though.

This trend is clearly driven by productivity, cost efficiency and safety. Those would be the key drivers for automation. It is about taking people out of the line of fire, as well as having close to 24/7 production.

IM: Following the 34% stake acquisition of ASI Mining last year, would you say the project Epiroc and ASI are working on at Ferrexpo’s Yeristovo mine is representative of how you envisage doing business together in the future?

PL: That is the reason that we initially acquired the 34% stake in ASI Mining; we wanted to go in that direction. In that respect, I think the Ferrexpo example is representative of how we will cooperate with ASI.

Of course, ASI can also offer a standalone solution without Epiroc being present on the automation side, so we are also promoting their offering too.

IM: How does Epiroc, as an OEM, balance its machine building and maintenance service offering? Does the ability to keep machines working longer through sophisticated monitoring systems and better manufacturing somewhat inhibit your ability to sell new machinery?

PL: To a certain extent, we are probably cannibalising our new machine sales with increased service intensity and improved servicing products. That is most likely the consequence. On the other hand, we also feel that it is only right to offer this type of aftercare and servicing.

Yet, you cannot continue to prolong the life of a piece of equipment forever. It needs to be replaced at some point.

Overall, the servicing offering works well for us and, we think, it is good for our customers in terms of increasing the life of their equipment.

IM: Factoring this in, what percentage of revenue is your aftermarket business likely to represent in the next 10 years (from 65% today)?

PL: It’s difficult to say if it is going to be higher, or not, but it is likely that the volume of service will increase. That is based on what we are talking about – the intensified servicing we are offering, the products we have developed and the fact that we are increasing the market share within our own fleet.

Whether it continues to be 65% of the overall business depends on activity in the rest of the group.

IM: Along these lines, how long does the company anticipate its new battery-electric loading fleets lasting compared with, say, the diesel-powered fleets you were selling 10 years ago?

PL: The wear and tear of the actual machine will be the same – that is not going to change because of the drivetrain.

But, having an electric drivetrain is different from diesel; we have to see what the long-term maintenance needs are compared with diesel. The life of the drivetrain also depends very much on the utilisation of the machine.

IM: Of the recent innovations the company has launched (or is about to launch) – 6th Sense, a semi-automated explosives delivery system (with Orica), Scooptram Automation Total, Powerbit, etc – which has the strongest business case in mining?

PL: I think 6th Sense is really a packaging of all of our different offerings within automation. In that regard, it is has the highest potential. Which components of 6th Sense have the highest potential? We’ll have to wait and see.

The semi-automated explosives delivery system with Orica is a very specific innovation, but we very much believe in automating this mining process because of the safety and productivity benefits it brings. But we are only just starting this development compared with 6th Sense, which has already launched.

Powerbit is, again, very specific, but…allows us to deliver a complete offering both in terms of machine and consumables that will enable higher productivity and automation. That should have a high potential in the market.

IM: What does the Epiroc mining roadmap look like for the next 10-30 years? I imagine wider adoption of hard-rock cutting, automation, electrification and digitalisation are in there, but what other technology evolutions are being planned for?

PL: We have to continue to work with all of those three – automation, electrification and digitalisation – as they will deliver significant benefits for the industry. That is where we need to focus over that 10-year timeframe.

These three also have the potential to further integrate the value chain in mining within the future digitalisation space. We need to both continue to work with these technologies and our customers to ensure we have greater market penetration in all these areas.

IM: And, hard-rock cutting? Is this as important as these three?

PL: For specific applications, mechanical cutting and the Mobile Miners have their relevance and work well. But we believe for the foreseeable future, the majority of hard-rock excavation will be carried out by drilling and blasting in the mining and tunnelling sectors.

IM: During the CMD there was mention of “cost per measure” contracts under the digitalisation heading. Could you go into some detail about how the company is offering these and if they are tied in with financing agreements for your equipment?

PL: In terms of cost per measure, one example would be cost per metre contracts in consumables and rock drilling tools.

MO: We also provide finance for equipment and it could be that the equipment is financed and we have a cost per metre contract in place. Those two are not connected or tied, though.

It could be that there is more of this ‘pay-for-performance’ type of contract in the future – where you charge per tonne of ore excavated, for example – but, if it does come, I don’t think it will happen quickly.

IM: Similarly Epiroc talked about “new business models” in 2020 for underground equipment at the CMD. What might these new business models be? What is the need for them?

PL: It could be revenue streams into software, to information management, to advanced service agreements, to Batteries as a Service for battery vehicles.

The reasons for establishing these models is the continuous development of software, new updates for machines, etc that require different models.

When it comes to Batteries as a Service, it is a different model again looking to transfer the energy cost of the battery from capex to opex in order to facilitate the timely decisions for customers and reduce the cost of operation for our customers.

These new models are all based on development of technologies.

Costerfield gold-antimony mine firing on all cylinders thanks to RCT solution

Automation, Communications in mining, Equipment maintenance, Explosives and blasting, IoT, Mine operation news, Mining equipment, Mining maintenance, Mining safety, Mining services, , , , , , , , , , ,

Removing personnel from underground loading operations at Mandalay Resources’ Costerfield gold-antimony mine in Victoria, Australia, through RCT’s ControlMaster® Teleremote and Guidance Automation, has led to time and cost savings, as well as maintenance and safety benefits, according to a recent case study from the automation specialist.

Costerfield produces ore via a single portal underground mine with narrow vein mining carried out to extract vertical veins of ore. The mine produces up to 80,000 gold-antimony-equivalent ounces per year in a concentrate comprising around 54% antimony and 60 g/t gold.

The nature of narrow vein mining dictates that ore drives are quite thin to reduce the amount of waste material that is captured, with Costerfield’s drilling and blasting program designed to maximise ore recovery by throwing the ore towards the draw point. Historically, however, the site could only recover 75% of the ore, according to RCT, due to the remaining ore sitting in the stope void out of reach of the underground LHD as manually operated loaders could not exceed the stope brow.

Looking to increase productivity, Mandalay investigated implementing a loader that could be managed remotely to extract additional ore and to safeguard equipment operators from hazardous situations at the mine face. This led to it, in 2015, engaging RCT to implement its ControlMaster Teleremote and Guidance Automation product on a Sandvik LH203 LHD.

The automated loader enabled Mandalay Resources to retrieve significant amounts of ore that were previously unreachable, RCT said.

In recent years RCT has increased the autonomous fleet at Costerfield by commissioning ControlMaster Teleremote and Guidance Automation on a second Sandvik LH203 as well as a Sandvik LH151D.

The machines are managed from Fibre Optic Control Stations at secure locations in the underground mine protected by Laser Guard Containment Units as well as stations on the mine’s surface.

Jayson Guzzo, Major Projects and Innovation Manager – Costerfield, Mandalay Resources, said removing operators from the machine is the “best outcome” as it eliminates their exposure from one of the highest risk jobs, which is working at a stope brow.

“The small loaders we use are very rigid which has the potential for repetitive strain injuries,” he said. “They also have open cabs and, in this environment, dust, machine exhaust and debris can be an added safety concern.”

In mid-2019, Mandalay made the decision to implement a digital mine communications network to accommodate future technological growth.

Guzzo said: “Given that we are a narrow vein operation we may have to access ore a significant distance from the mine access point so we are looking at going to a digital platform so we can run a fibre backbone and autonomously operate machines over a vast distance.

“In a traditional mine, you might spend a whole week bogging a single stope before moving, but at Costerfield we might bog three or four headings in one shift, so the number of sites that we have to have set up at any one time are multiple, hence a digital system will significantly speed up the process of commissioning new drives.”

Mandalay has reported that ControlMaster Guidance Automation enabled them to carry out bogging and firing operations simultaneously, saving them substantial time which was previously spent clearing personnel to a safe distance, RCT said.

Guzzo said the solution has enabled the company to reduce shift changeover time by two thirds – which is a significant cost saving – and the site has also experienced less unplanned machine downtime.

“At Costerfield, the drives are roughly 2 m wide so Guidance Automation keeps the machines off the walls and stops them bouncing around the tunnels, so the damage to the machines is a lot less and results in significantly reduced unplanned maintenance time,” he said.

Guzzo concluded: “Relocating operators from the cab of our loaders to safer environments on the mine’s surface is essential and being able to continue bogging during firing as well as significantly reducing shift changeover time is critical to improving site productivity.

“Plant automation is definitely the way of the future in the mining industry and RCT are the leaders in that area, which is why they are our preferred supplier with this equipment.”

Growth and innovation on the agenda, Epiroc’s incoming CEO says

Automation, Environmental, Equipment maintenance, IoT, Mining equipment, Mining maintenance, Mining people, Mining services, Mining software, Power supply for mines, Sustainable mining, , , , , , , , ,

The timing of the announcement of Helena Hedblom becoming Epiroc President and CEO might have caught investors off-guard, but the actual appointment is no big surprise.

The news came just 12 days after the company held its second annual Capital Markets Day where Hedblom and Per Lindberg, current President and CEO, gave investors an update on the progress the company has made on its strategy since starting operations under the new brand in November 2017.

Hedblom, who currently heads up the mining and infrastructure divisions for Epiroc and is due to take on the top role from March 2020, has been a major part of Epiroc’s Group Management team since it was formed. Her ties to Atlas Copco, meanwhile, date back to 2000, with her roles including Head of Research and Development and General Manager for rock drilling tools business Secoroc and, then, becoming President of Atlas Copco Rock Drilling Tools.

Epiroc has launched a number of new initiatives in the mine automation, digitalisation and electrification spaces since the end of 2017, and Hedblom has been instrumental in all of these, spelling out the business case to investors, making sure the engineering capacity is available and taking all of the technical questions that may come Epiroc’s way.

With mining making up 76% of order intake for Epiroc in the nine months to the end of September – and the company keen to build on its leading position in the sector – it is logical for someone with Hedblom’s experience to take the top job following the successful establishment of Epiroc under Lindberg.

On a conference call today following the announcement, Ronnie Leten, Chairman of Epiroc, said current company head, Per Lindberg, had achieved the goals set for him by the board and that Hedblom had been given a new mission: to achieve “higher levels” of growth for Epiroc.

That is a bold statement considering the company has achieved a compound annual growth rate (CAGR) of 10% over the period from 2015 to 2018 through a number of organic and inorganic investments, and a 14% CAGR in the 12 months to end-September 2019. This is all while retaining a comparatively high average operating margin of 18.3% and 20.1%, respectively, over those same timeframes.

Hedblom, speaking to IM shortly after that call, explained the growth mission given to her by her incoming Chairman.

“It’s a combination of organic initiatives within the company, as well as inorganic initiatives,” she said. “But, of course, within that, the big technology shifts with automation, digitalisation and electrification give us an opportunity to help our customer gain safety, productivity and energy benefits. That is a big focus area for us.”

She is also looking to grow the company’s aftermarket business – which already accounts for 65% of revenue – explaining: “This is where we can make a difference with our customers and really be a productivity partner. It also gives us resilience across the cycle.”

Looking to the “initiatives”, specifically, she said there could be some organic product developments to close some “gaps we have in the portfolio”, but also strengthening “our presence… in some areas where we don’t have the market reach today”.

While these growth initiatives will most likely be in markets the company has already deemed to be core, she said all divisions within the company had a roadmap looking into opportunities that are “adjacent to core”.

One area of Epiroc investment Hedblom was keen to talk up was R&D, which in recent years has enabled the company to retain a leading position in the likes of autonomous surface drilling, battery-powered underground vehicles, and mine digitalisation and automation.

“We have a good level of investment in R&D,” she said, adding that, at the moment, it is heavily skewed towards automation, digitalisation and electrification.

“Bear in mind that 65% of our revenue is in the aftermarket and we are already investing 2-3% of revenue in R&D – that represents quite a big investment on the capital equipment side,” she said.

She concluded: “That (R&D investment) is needed. For me, innovation is key. That is how we stay ahead of technology leaders in all of these areas.

“I expect R&D investments to stay at this level, and this is extremely important to creating sustainable growth for the company over the long term.”