Tag Archives: Robotics

Mining and space sectors collaborate to solve the biggest challenges

A quiet revolution is underway in the mining sector as innovations and knowledge gleaned from space exploration help improve productivity, reduce emissions and create better outcomes for workers and communities, AROSE* Program Director, Michelle Keegan, explains.

The extreme demands of Space exploration and the drive for efficiency in the mining industry is creating new forms of cross-sector collaboration not seen before. The transfer of expertise and technology between these two sectors is also delivering solutions to some of humanity’s greatest challenges.

There are many commonalities between modern resource businesses and space exploration. Both require a focus on a smaller footprint, the delivery of zero-carbon emission operations and a reliance on substantial amounts of data to support decision making. They both operate in sensitive and challenging geographic environments and need to work in a way that reduces risks to their employees and the environments in which they operate.

The space industry provides a rich learning platform for the resources sector, for new approaches to increasingly difficult challenges. But the benefits of collaboration are not all one way. The space sector too is benefitting from the technological innovations and experience of miners here on Earth.

Technology developments in exploration precision, resource planning, advanced mineral detection sensors, in-situ extraction methodologies and advanced safety systems, present opportunities for insights and application in space.

Deep thinking around regulatory frameworks for responsible and sustainable space exploration and development will be enhanced through the experiences, both positive and negative, in terrestrial resource development.

Diversity of thinking

The opportunity to transfer technology and drive diversity of thinking from the space sector into mining will accelerate in the years ahead. Global demand for the critical minerals required to meet the world’s ambitious decarbonisation goals illustrates the need to leapfrog current approaches across the mining project lifecycle, from exploration through to production.

Rio Tinto CEO, Jakob Stausholm, recently described the global mining giant as a “technology company”.¹ In saying this he recognises Rio’s success in tackling the big challenges will rely on the miner’s ability to integrate new technologies and novel approaches to problem solving.

In a world where mining is becoming more complex, more difficult and more expensive, the ability to reduce costs (and emissions) and win the support of governments and local communities will rely on the ability to deploy technology to mine and process ore more efficiently and more safely, both for people and the environment.

Many post-carbon technologies, such as solar energy and battery storage systems, have been advanced through space exploration. Also, it is the systems engineering approach to project design, pioneered for space exploration, that increasingly is being adopted by terrestrial resources, technology and services companies.

Australia’s leading mining and oil and gas operators, as well as their major service companies, are aligning themselves with space-focussed businesses, researchers and industry organisations because they recognise the value of cross-sector collaboration. This new collaboration model is leading to greater technology and expertise transfer between space and resources. Miners also recognise the benefits of their best people being exposed to new knowledge and new ways of problem solving.

Trailblazer Lunar Rover project

The AROSE consortium was created for exactly this type of collaboration – to drive the growth of Australia’s space industry and bring together companies from resources and other industries, to leverage their collective capabilities and go after the toughest challenges in new ways. The Trailblazer Lunar Rover project is a first significant focal point for our space capable businesses and like-minded resources companies to pursue shared technology opportunities.

The AROSE Resources Advisory Board, established in 2022, creates an ongoing opportunity for the most innovative mining company leaders to provide input into the rover project, while taking learnings back to their businesses at the same time.

NASA understands well the benefits of this type of collaboration. Earlier this year AROSE participated in the first of a series of workshops with NASA and the United States Geological Service to look specifically at the areas of intersect between the resources and space sectors.

The mining industry is at a turning point in its decarbonisation journey. It has a once-in-a-generation opportunity to build new capabilities that will lay the foundations for long-term, sustainably driven growth. With an aggressive timeline to zero emissions, a great opportunity for the mining industry to solve this tough challenge is the successful building of relationships with uncommon partners like those in the space sector.

However, a broader partnership opportunity exists between mining and space. The domains we see as offering the best collaboration opportunities between space and mining include:

  • Automation and robotics;
  • Remote operations and control;
  • Geoscience;
  • Satellite communications and imagery;
  • Artificial intelligence;
  • Systems engineering;
  • Waste minimisation;
  • Digital design, including user experience and user interface; and
  • Data analytics.

It is evident space and mining projects are approached very differently. The design of a resources project is most typically achieved by bringing together the experiences of past projects, with a focus on budget and schedule. Operating concept or operating philosophy often takes second priority and does not drive the project design. As a result, an integrated systems design is never achieved. And while available technology enables some level of electrification, automation and digital decision making, the value that could be derived is never fully realised.

Andrew Dempster, Director at Australian Centre for Space Engineering Research at the University of NSW, says, “the high-level difference between the approaches of the two industries is that the mining (and oil and gas) decision points are all and always commercial, whereas the agency-driven space projects have more technical ‘system engineering’ decision criteria.”²

Dempster states “a fundamental observation about the difference between mining engineering and the space engineering disciplines (electrical, electronic, software, mechanical) is that the latter designs a product…while the former designs a business. It appears this is the fundamental disconnect”.

For many years the mining industry value chain has been unchallenged. Valuable resources are mined, processed then moved to a distribution point via rail or road and then shipped to a customer. However, there are several collaboration opportunities that could lead to mining companies rethinking value chain design, and these opportunities have the potential to alter the mining flowchart.

Perhaps the ideal approach we can use in mining is an integration of both approaches, and in this way adopt systems engineering thinking at the outset.

AI and data analytics

With an increasing need to build in automation, sensing and electrification, underpinned by digital platforms, the concept of operations needs an integrated approach more than ever. The growth in the application of AI and data analytics techniques to quickly interpret geological and physical properties of rock in mining has been exponential. As data streams become more complex and decision pressures more acute the demand for more sophisticated approaches to AI will only increase.

The space industry has had an even greater need to manage and interpret a plethora of complex data in real time to support mission critical decisions and there are obvious crossover opportunities to be explored in this arena.

With the hunt underway to locate resources on the moon or other planets to extend human life into outer space, the opportunity exists for mining technology companies to assist with rock knowledge acquisition and mineralogical interpretation of data required for successful space exploration.

Robotics and automation

The application of robotics and automation is expanding in the resources sector with the drive to remove people from harm and increase efficiency and precision in the mining process. Mining technology company IMDEX was motivated to partner with AROSE as a way of bringing space insights to the development of its BLAST DOG technology (pictured below), an automated logging system that collects detailed geoscience data from blast holes.

Major challenges IMDEX faced during the BLAST DOG development phase included: autonomous navigation over rough terrain; locating and positioning accurately over a blast hole; lowering and retrieving a sensitive, high-tech probe down the hole; and managing the transfer of high volumes of data through remote communication systems. IMDEX is refining its approach based on insights gleaned from companies involved in addressing these same challenges in space.

The recent affiliate agreement between AROSE and the Robotics Australia Group will increase this application across the industry.

Autonomous vehicles

In mining, the scale of operation has been linear until recently. If you wanted to increase mining output, you purchased more large equipment. Then came the introduction of fleet automation technologies, developed first by Caterpillar in 1996 and refined in partnership with Rio Tinto and other early adopters in the early 2000s.

Of the 1.5 million vehicles in use across heavy industry globally, only 1,200 vehicles are autonomous.³ Australia has the largest fleet of autonomous haul trucks in the world, with more than 700 in operation across 25 mines.4 Clearly the market potential is enormous.

These remotely operated technologies are challenging the need for ever larger truck sizes. The largest autonomous truck today might be the last of its kind as mining organisations consider what the ‘right size’ truck is for the future.

Smaller size trucks would allow miners to fully electrify their operations much sooner. In addition to the environmental benefits, there are operational and cost benefits that support this approach. The large autonomous trucks currently in use need enormous bi-directional roads. Reducing the size of mining vehicles can have a direct impact on strip ratios, and with a mine that can be up to 1 km deep, the roads that service the mine contribute significantly to the overall footprint.

While every mine design is different, there is a growing body of evidence that smaller autonomous vehicles can lower mine development costs (narrower benches, steeper pits, etc), speed operations and boost overall fleet utilisation.

The space industry has similar challenges with its autonomous vehicles. Where the mining industry is an expert at moving billions of tonnes of material by operating hundreds of autonomous vehicles all year round, the space industry today has only operated 11 semi-autonomous vehicles on a planetary body. This observation isn’t to diminish the significant achievement, as space exploration is extremely difficult, but to highlight the convergence of terrestrial and space objectives. For the space industry to perform in-situ resource utilisation activities anywhere off-earth, there is an opportunity to adopt learnings from the mining industry.

Likewise, the mining industry is moving towards smaller more specific/targeted mining practices and can learn from space industry experience in developing small-scale highly efficient and robust robotic solutions.

The space industry also provides a rich learning platform for the resources sector for new approaches to minimise and utilise the waste stream, with the ultimate goal of zero waste mining operations.

The companies which provide technology and services to the mining majors also realise they need to diversify their offering to include space. This ‘full stack’ approach may be a matter of business survival in a competitive future.

Remote operations specialist Fugro is a leader in this area. Fugro’s new SpAARC (Space Automation, Artificial Intelligence and Robotics Control) remote operations centre in Perth, Western Australia, has been specifically designed to share facilities between its established oil and gas and mining business and its fledgling space offering.

Fugro’s new SpAARC remote operations centre in Perth, Western Australia, has been specifically designed to share facilities between its established oil and gas and mining business and its fledgling space offering

Fugro and Nova Systems are leading the AROSE consortium’s Trailblazer Lunar Rover design team. Woodside Energy and Rio Tinto are also supporting the AROSE Trailblazer effort by providing knowledge transfer of their terrestrial robotic and automation capabilities.

Woodside has also formed a collaboration with NASA on robotics and remote operations. NASA sees Woodside as a great test bed of robotics in harsh environments, as Woodside is doing similar tasks at its operations which NASA envisages doing on the Moon and Mars.5

The largest challenges facing the mining industry are the need to get to zero emissions, the need to get to zero harm and zero waste. There’s urgency in the call to solve all of these. It is now well-recognised that we need more collaboration not just within our sector, but across sectors. With the Moon to Mars program now underway, and the Trailblazer Lunar Rover program in place, this really is a tangible point in time where things are moving forward, a tangible point where people realise that this isn’t a dream, this is a reality.

* AROSE (Australian Remote Operations for Space and Earth) is an industry-led not-for-profit organisation dedicated to ensuring Australia is the trusted leader in Remote Operations science, technology and services on Earth and in Space.


Sources:
1. ‘Solving our largest on earth challenges through the benefit of technology transfer between space and mining,’ Michelle Keegan, Gavin Gillett, Clytie Dangar, World Mining Congress 2023.

References
1. ‘We’re a tech company’: Rio boss draws on lessons of history, Australian Financial Review, 2 August 2023. https://www.afr.com/chanticleer/we-re-a-tech-company-rio-boss-draws-on-lessons-of-history-20230801-p5dt2p
2. Integrating the approaches to space and mining project life cycles, Andrew Dempster, 5th International Future Mining Conference 2021. https://www.ausimm.com/publications/conference-proceedings/fifth-international-future-mining-conference-2021/integrating-the-approaches-to-space-and-mining-project-life-cycles/
3. No swarming yet in trillion-dollar market, Investmets, 4 August 2023. https://www.investmets.com/no-swarming-yet-in-trillion-dollar-market/
4. Global autonomous mining truck population tops thousand mark, to reach 1,800 by 2025, Mining.com, 18 May 2022. https://www.mining.com/global-autonomous-mining-truck-population-tops-thousand-mark-to-reach-1800-by-2025-report/
5. https://cciwa.com/business-toolbox/growth/why-woodsides-partnership-with-nasa-is-a-win-win/

Western Australia invests in new robotics, automation facility

Work has now started on the Australian Automation and Robotics Precinct (AARP) in Neerabup, Western Australia, which will form, the state government claims, one of the biggest test facilities of its kind in the world.

The 51 ha precinct, around 40 km north of Perth, will be a major hub for testing and research into the latest developments in automation, remote operation and robotic systems.

A broad range of industries including mining and resources, defence, oil and gas, agriculture, space, logistics, construction, advanced manufacturing and the education sector are expected to use AARP.

It will provide suppliers and operators of automation and robotics equipment or systems with access to specialist infrastructure including:

  • Common user test beds, with multiple areas and roadways for physical testing;
  • A common user facility operation building; and
  • Supporting research and development facilities.

The McGowan Government committed A$20 million ($14.5 million) towards the precinct as part of its WA Recovery Plan announced last year with the aim of creating jobs and diversifying the economy.

Development of the facility will generate at least 70 construction jobs as the precinct is built over the next three years, and up to 5,000 ongoing jobs in the fields of robotics, automation and remote operations, according to the government.

The facilities will enable companies and researchers the opportunity to accelerate technology and analytics testing and scaling without interrupting on-site production and activities, it says.

The site has the potential to expand to 94 ha to accommodate future growth and will not be sub-divided – remaining a long-term common user facility asset for Western Australia.

An Industry Advisory Group has also been established, while the AARP will collaborate with university and industry research sectors by offering doctoral top-up scholarships for projects that support the Western AustraLIA economy and the precinct’s objectives.

The precinct will also support the resources industry’s bid to transition to net zero carbon status by providing facilities for the testing of new technologies, it says.

Western Australia Innovation and ICT Minister, Don Punch, said: “This exciting precinct represents a A$20 million investment by the McGowan Government in further enhancing Western Australia’s position as a world leader in the growing fields of robotics and automation, and puts us in the best possible position to meet the opportunities and challenges of the future.

“Western Australia is a recognised world leader in the field of automation for the mining sector, and this new facility will see this same success mirrored across a range of industries.

“This builds on the A$100 million Investment Attraction and New Industries Fund announced in the recent State Budget to support and accelerate a range of emerging industries to diversify our economy and deliver the Western Australia jobs of the future.”

Robotics on its way to the exploration industry, QR’s Scott says

Mining has entered a robotics boom as developers take substantial strides in artificial intelligence (AI), use of drones, and data capture and analysis technology that will deliver safety improvements and better managed mines, Queensland Robotics Executive Chairman, Andrew Scott, says.

Speaking at the IMDEX Xploration Technology Symposium, he said that with the development of autonomous haulage and drilling technology, the mining industry had moved through a “trough of disillusionment” around robotics and was rapidly accelerating towards the “plateau of productivity”.

The two-day online conference brought together experts in mining innovation and exploration industries to discuss the latest in new technologies, tools and advanced analytics.

Scott said acceptance of new technologies had been aided by restrictions caused by the COVID-19 pandemic, with the development of some digital transformation projects planned for the next three to five years being executed in three months.

“COVID is a significant accelerator and robotics is no exception,” he said.

Capital was available to fund new and emerging projects and was another clear indicator of a robotics boom, which Scott said would undoubtedly mean more jobs not less.

“There’s a lot of work that’s underway right now to really bring to the forefront a lot of automation and robotics to deal with enhanced data capture and execution of exploration programs and also within the mining environment,” he said in an interview ahead of the symposium.

“In the mining environment, we’ve seen the proliferation of automation in the form of autonomous haulage and autonomous driving, but now we’re seeing all the other ancillary services that are requiring automation and robotic solutions to take people out of danger but also to enable a highly efficient and productive system.

“We’re starting to see some of those capabilities move across into exploration, including the ability to deploy smart sensors in the field robotically, the collection of samples, and the analytical processing of those samples.”

He told the symposium the increase in robotics was aided by a reduction in sensor and computational costs, and, with more tools and technology available, there was increased adoption and acceptance.

“Robots are helping with the dirty, dull and dangerous, and distance challenges,” he said. “Applying robotics can definitely remove people from harm’s way. It can also augment what they are able to achieve by being able to explore in environments where until now we’ve been limited.”

This included in Australia, with areas subject to extreme heat, the high altitudes of the Andes, and subsea exploration.

“Robotics is surfing the wave of AI,” he said. “There’s a huge amount of development and growth in this area. We’ve gone past the AI winter, as they call it, and the acceleration of tools, and the ease of use of those tools is becoming a critical enabler.

“My prediction is that we’re going to see more and more solutions where they’re highly engineered highly capable, robust, highly configurable and easy to use.”

Hitachi CM looks for access to resource industry start-ups with Chrysalix fund investment

Chrysalix Venture Capital, a global venture capital fund with a history of commercialising innovation for resource intensive industries, has announced Hitachi Construction Machinery Co Ltd has invested in the Chrysalix RoboValley Fund.

Hitachi Construction Machinery, a leading manufacturer of construction and mining equipment, joins a cluster of mining and metals players such as South32, Severstal and Mitsubishi Corp in the fund, and “will leverage Chrysalix’s extensive network in the mining field to strengthen open innovation by connecting with start-ups that possess the latest technologies for mining in areas such as robotic systems, IoT, AI and data analytics”, the company said.

“Chrysalix has made step-change innovations in the metals and mining, manufacturing and machinery industries, through digital solutions and advanced robotics technologies, a major theme of our fund, and we are delighted to welcome Hitachi Construction Machinery to the Chrysalix RoboValley Fund,” Alicia Lenis, Vice President at Chrysalix Venture Capital, said.

Just some of the companies included in Chrysalix’s portfolio include Novamera, which is developing its Sustainable Mining by Drilling technology for narrow-vein mines; and MineSense Technologies, a Vancouver-based start-up developing real-time, sensor-based ore data and sorting solutions for large-scale mines.

Naoyoshi Yamada, Chief Strategy Officer at Hitachi Construction Machinery, said: “We identified Chrysalix as having a valuable network of start-ups in its global innovation ecosystem, and a unique window on innovation opportunities in the mining industry.

“With the trends toward digitalisation, the autonomous operation and electrification of mining machinery, as well as the growing need for solutions to streamline and optimise not only mining machinery but also overall mining operations, many start-ups offer novel technologies and services, and our investment in the Chrysalix RoboValley Fund will enable Hitachi Construction Machinery to tap into these new breakthroughs.”

The Chrysalix RoboValley Fund, Chrysalix says, seeks to achieve significant returns for its investors by enabling resource intensive industries, including energy, mining, construction, infrastructure and mobility, to tap into innovation from high growth start-ups.

METS Ignited to fund four collaborative mining technology projects

In line with the Federal Government’s recently published Modern Manufacturing Strategy, METS Ignited has announced the latest award of projects as a part of its Industry Growth Centre collaborative project funds.

It has announced the award of METS Ignited Tranche 4 Collaborative Project Funds, with the combined investment of over A$6 million ($4.3 million) from METS Ignited and industry partners going to AMOG Pty Limited, Gekko Systems, Polymathian, and Universal Field Robotics.

The fourth round of the funds focused on the application of analytics, automation and robotics in the mining industry. The selected projects have originated in the local market, are industry-led, and are projected to deliver a high degree of global impact potential and substantial benefits to the METS sector, according to the group.

The success of these four projects with over 17 industry partners in total is projected to deliver almost two hundred new roles, and generate a combined revenue contribution of over A$100 million for the sector, it said.

“METS Ignited’s role as an Industry Growth Centre is to lead collaboration between Australian mining equipment technology and service (METS) companies, global suppliers, mine operators, research organisations and capital providers to support the improved productivity, competitiveness and innovative capacity of the Australia’s world-leading METS sector,” METS Ignited said.

METS Ignited Chief Executive, Adrian Beer, says the quality and capability of the funding applicants is becoming increasingly more sophisticated, with a number of the solutions having broader applicability across a number of sectors.

“This round of project fund recipients demonstrates just how capable our leading global METS sector is, and what is possible within our local technology sector,” Beer said. “We are extremely proud of what has been achieved by the project fund recipients to date, and this new addition to the project funding shows that we have a huge potential to build upon.”

(pictured is Polymathian’s ORB mining optimisation software)

Australia has much to gain from resource sector technology advances, report says

Harnessing new technologies in the mining, oil and gas industries will add A$74 billion ($50 billion) to the Australian economy by 2030 and create more than 80,000 new local jobs, according to a new report from METS Ignited and NERA.

Titled ‘Staying Ahead of the Game Report’, the report says data analytics, automation and robotics technologies continue to transform the resources sector and Australia needs to be at the forefront of technological progress or risk other countries taking the lead.

The report was designed to attempt to predict the nature and scale of how Australia’s resources industries, including both the producers and their supply chains, might change if they fully embraced the latest advances in operational technologies such as analytics, automation and robotics.

It further analysed what these changes mean for employment and workforce development (especially in the operations areas across regional Australia), and the wider economy.

To estimate the impact of these technological changes, the report analysed 30 types of technological innovation considered most relevant and carried out more than four dozen interviews with industry and technology experts to support the findings.

It also laid out a four-step roadmap that, it said, will lead Australia to success. The four steps were around strengthening collaboration, creating and supporting national cross-industry automation technology clusters, expanding the “entrepreneurial ecosystem” and boosting skills and research and development.

Australia’s Minister for Industry, Science and Technology, Karen Andrews, said Australia has one of the most competitive mining, oil and gas industries in the world which will continue to boost its economy as it transforms.

“A vibrant and competitive resources sector is vital to Australia’s economic future and the adoption of Industry 4.0 technologies will be a key driver of industry transformation,” she said. “The use of analytics and robotics not only provides significant safety and environmental benefits, it is also rapidly increasing job opportunities.”

Andrews added: “This kind of technology opens up new, unexplored opportunities for the resources sector and what this report shows is the huge economic opportunity if new technology is embraced.”

The report was produced by METS Ignited and NERA, two industry growth centres established to drive innovation, productivity and competitiveness.

It comes shortly after a A$2 million Future Technology Project Fund was made available through NERA for projects that accelerate the commercialisation of science and technology, improve the uptake of innovative digital technologies, and encourage future investment, productivity and global trade, in the oil, gas and energy sector.

EU-funded robotics project to confront underground mining challenges

The European Union (EU) has agreed to fund a project through its Horizon 2020 program looking into the development of a “bio-inspired, modular and reconfigurable robot-miner” for small and difficult to access underground mineral deposits.

The 48-month ROBOMINERS project held its kick-off meeting in Madrid, Spain, on June 13-14, 2019.

The project has been set up with the long-term strategic objective to facilitate EU access to raw materials – including those considered strategic or critical for the global energy transition – from domestic resources. This is all in an effort to decrease the EU’s import dependency.

ROBOMINERS’ approach combines the creation of a new mining ecosystem with novel ideas from other sectors, in particular the inclusion of disruptive concepts from robotics, the European Commission said.

“The use of the robot miner will especially be relevant for mineral deposits that are small or difficult to access,” it said. “This covers both abandoned, nowadays flooded mines, that are not accessible anymore for conventional mining techniques, or places that have formerly been explored but whose exploitation was considered as uneconomic due to the small size of the deposits or the difficulty to access them.”

Within the project duration, the consortium aims to:

  • Construct a fully functional modular robot miner prototype following a bio-inspired design, capable of operating, navigating and performing selective mining in a flooded underground environment;
  • Design a mining ecosystem of expected future upstream/downstream raw materials processes via simulations, modelling and virtual prototyping;
  • Validate all key functions of the robot-miner to a Technology Readiness Level 4, and;
  • Use the prototypes to study and advance future research challenges concerning scalability, resilience, re-configurability, self-repair, collective behaviour, operation in harsh environments, selective mining, production methods as well as for the necessary converging technologies on an overall mining ecosystem level.

Led by the Centre for Automation and Robotics of the Universidad Politécnica de Madrid and the Spanish National Research Council, ROBOMINERS will be implemented by a consortium of 14 partners from 11 EU countries, that covers a wide range specialities, consisting of geo-scientific SMEs, academics covering both mining and robotics, non-governmental organisations, and governmental bodies.

The European Federation of Geologists, which has a network of more than 45,000 geoscientists across Europe, will lead the dissemination and communication efforts within ROBOMINERS.

METS Ignited backing analytics, automation and robotics technology developments

METS Ignited, an industry-led, Australia government-funded, growth centre for the mining equipment, technology and services (METS) sector, is making A$4 million ($2.8 million) available to companies focused on the application of analytics, automation and robotics in mining operations.

The investment is part of the fourth round of METS Ignited Collaborative Project Funds for METS solutions able to help demonstrate the productivity, competitiveness and innovative capacity of the sector in Australia.

METS Ignited Acting CEO, Ian Dover, said: “Australian METS companies have a long history of supplying reliable and innovative solutions to the mining sector. This round of funding is focused on accelerating the adoption of analytics, automation and robotics into Australian METS and mining with the objective of making a significant contribution to the economy and creating more jobs in our domestic mining supply chains.

“The time is now, for Australia to get ahead of the curve and make the most of our home-grown advantage.”

Round four of the Project Funds invites METS companies to collaborate with a minimum of two other METS companies and an end user, to deliver projects with real commercialisation potential, METS Ignited said.

FLSmidth completes laboratory mining solutions line with IMP Automation Group buy

FLSmidth says it has completed its portfolio of automated laboratory solutions for the mining industry with the takeover of IMP Automation Group.

The market for automated laboratories is growing due to a combination of high exploration activity and an increased focus on productivity, automation and digitalisation, according to FLSmidth.

“IMP is the global leader in automated laboratory solutions for the mining industry and has a strong foothold in Australia and South Africa. Its solutions complement the products FLSmidth offers for quality control and optimisation for the mining process,” the company said.

The acquisition includes more than 130 IMP employees, including the Managing Director, Boyne Hohenstein.

Hohenstein said: “In FLSmidth, we have found a partner with the right global sales network to take us to the next level. For years, we have combined profound laboratory process knowledge with automation skills and developed novel and innovative solutions. I am very excited that we now can reach a global audience with our offerings and solutions.”

Manfred Schaffer, President Mining for FLSmidth, said: “Knowing your ore characteristics from the mine and all the way through the processing plant is of increasing importance in mining as declining ore grades make it necessary to increase productivity by process optimisation. We see a strong match between some of our digital initiatives in FLSmidth and IMP’s automation solutions that will help miners get better data on their ore and assist in optimising the processing.”

Included in the transaction is IMP’s 50% share in a joint venture, which provides complete operations and maintenance-based solutions for automated labs.

The acquired parts of IMP Automation Group, including the JV, generated revenues in excess of DKK250 million ($38 million) in 2018, with the acquisition expected to be accretive to FLSmidth Group margins.

The takeover is subject to customary closing conditions and closing is expected in the June quarter.

IMP says it works with like-minded customers to provide innovative robotics and automation solutions from sampling to analysis that improve ergonomics, health and safety for laboratory operators, improve integrity, quality and precision of analytical data and improve efficiencies.

It designs and supplies manual, semi- and fully-automated robotic sample preparation and process control laboratories, turnkey sampling systems and laboratories for mining, metallurgical, cement, non-ferrous industry and steel plants.

Its customers include Anglo American Platinum, Freeport McMoRan, BHP and Rio Tinto

ABB reaffirms four pillar strategy following Power Grids sale to Hitachi

Hitachi has agreed to acquire 80.1% of ABB’s Power Grids division in a deal that come with an enterprise value (EV) of $11 billion.

ABB says this divestment is an expansion of its existing partnership with Hitachi that dates back to 2014. The EV is equivalent to an EV/operating profit EBITA multiple of 11.2 x 1, ABB said.

ABB said: “Since 2014, Power Grids has been significantly improved under the ownership of ABB. The latest results (Q3, 2018) are at the target margin corridor, having more than doubled margins, with positive third party base order development recorded for the last six consecutive quarters.”

The Power Grids division serves utility, industry, transportation and infrastructure customers and is focused on addressing key areas such as the integration of renewable energies, growing network complexity, grid automation, and micro-grids.

ABB continued: “In the fast-changing world of energy infrastructure, with a shifting customer landscape and the need for financing and increased government influence, ABB believes Hitachi is the best owner for Power Grids.

“As a stable and long-term committed owner, with whom ABB has developed a strong business partnership since 2014, Hitachi will further strengthen the business, providing it with access to new and growing markets as well as financing. Hitachi will accelerate Power Grids to the next stage of its development, building on the solid foundation achieved under ABB’s previous ownership.”

As part of the deal, ABB will initially retain a 19.9% equity stake in the joint venture, but the transaction agreement includes a pre-defined option for ABB to exit the retained 19.9% share, exercisable three years after closing, at fair market value with floor price at 90% of agreed EV.

The joint venture will be headquartered in Switzerland, with Hitachi retaining the management team to ensure business continuity.

ABB says this deal is all part of its efforts to simplify its business model and structure. Effective April 1, 2019, ABB will discontinue its “legacy matrix structure”, allowing its four leading businesses to serve customers even better, it said.

These businesses are the Electrification, Industrial Automation, Robotics & Discrete Automation and Motion.

“Each business will be either the global #1 or #2 player in attractive markets with strong secular drivers. ABB’s established domain know-how, world-class engineering and technology expertise, will position the four businesses well to deliver innovative products and solutions for enhanced customer value,” the company said.

“Based on ABB’s common digital platform ABB Ability™, the businesses will provide tailored digital solutions, driving enhanced customer value. Building on emerging technologies including artificial intelligence and its strong software offering, ABB Ability will meet the increasing demand from ABB’s customers for digital solutions in the rapidly changing industrial world.”

ABB CEO, Ulrich Spiesshofer, said: “Our four newly shaped businesses, each a global leader, will be well aligned to the way our customers operate and focus stronger on emerging technologies such as artificial intelligence. The continued simplification of our business model and structure will be a catalyst for growth and efficiency in our businesses. Our businesses will be further supported through the transfer of experienced resources from today’s country organisations.”

The Electrification business, which presently has an addressable market of $160 billion, will have strong exposure to rapidly growing customer segments including renewables, e-mobility, data centres and smart buildings, ABB said. It will be led by Tarak Mehta, currently President of the Electrification Product division.

The Industrial Automation business will include ABB’s industry-specific integrated automation, electrification and digital solutions, control technologies, software and advanced services, as well as measurement and analytics, marine, and turbo-charging offerings. The addressable market of $90 billion is expected to grow on average by 3-4%/y over the long-term. The business will be led by Peter Terwiesch, currently President of the Industrial Automation division.

The Robotics and Discrete Automation segment has digital solutions and services that provide customers with enhanced safety, efficiency, up-time and speed, and cater to the growing customer demand for flexible and integrated manufacturing solutions, ABB says. It will be led by Sami Atiya, currently President of the Robotics and Motion division.

The Motion business, meanwhile, will provide customers with a range of innovative electrical motors, generators, drives, and service, as well as integrated digital powertrain solutions. It will be the number one player in the sector and be led by Morten Wierod, currently Managing Director Business Unit Drives.

ABB intends to host a strategy update alongside its December quarter results, expected on February 28.