How are you using big data and analytics to improve your business area?
Well, big data, machine learning and analytics are a trio of buzz words which are quite often bandied about to make people sound special or forward thinking. But to Rio Tinto, and my area of Copper and Diamonds, what they are doing is allowing us to optimise and improve our operations by improving the quality of our analysis of the complex systems we use and by allowing us to operate in a more integrated way. Basically, it allows us to break down silos between discrete systems and areas of business and act in a more integrated fashion.
An example is our very complex Pilbara Iron Ore operation that has multiple very remote pits feeding an integrated rail network through to multiple ports. Big data and complex analytics allows us to better understand and monitor the systems, to quickly respond to and manage production events without compromising quality or quantity of output.
Our Kennecott mine in Utah is one of the largest open pit mines in the world. The mine feeds a whole integrated system comprising open pit, concentrator, smelter and refinery with 40 different ore types. As you can imagine, small changes in the mining sequence can produce large changes in downstream performance. Our complex analyses give us more detailed feedback on performance, allowing us to respond more quickly. By improving our understanding of the system, we can build in control measures to minimize variability.
How can METS firms and big miners work together to drive innovation in the resource industry?
My working hypothesis is ideation without application is mainly an academic exercise. Our group is constantly on the lookout for new ideas that can be applied to our business to create value. We have several approaches: we have an open-door policy on sales pitches, we often approach original equipment manufacturers (OEMs) to see if they have a product or concept stashed in their bottom drawer that may not have made it to market, or we approach OEMs with a problem and ask them for a solution. We are constantly asking ourselves how we can test interesting concepts as quickly and cheaply as possible.
Using a couple of examples, my team visited MINExpo in Las Vegas, which is a huge mining convention spanning acres of buildings. We came away from that convention with at least 10 high quality ideas just by looking at the displays. We also recently approached OEMs in a specific field looking for equipment concepts that may have been developed, not with our specific problem in mind, but that can be repurposed to solve our particular problem.
Basically, we have an open-door policy for ideas and also actively reach out to solve problems.
Are there any differences in how METS firms deal with Rio Tinto in the US compared to Australia? Are there any lessons that can be learned from American METS operators and vice versa?
Australia, Chile and Brazil are all very mining focused countries which is a direct contrast to America with its much more diverse economy. Mining in America makes up a far smaller percentage of the economy than in Australia. America is also a huge economy: more than 15 times the size of Australia. The big opportunity here is to look at the R&D being done across the whole of the many diverse industries in the US, such as automotive, aeronautical, energy, biomedical and IT industries.
Australian miners probably need to angle themselves more toward non-mining industries to gain greater opportunities to solve problems.
I’ve been approached by companies marketing really sophisticated software systems to improve the management of innovation. Innovating by improving innovation! I’ve also recently come into contact with people marketing a unique intellectual property and patent search engine, originally for the biomedical field, designed to mine obsolete patents for opportunities.
I also recently participated in an innovation workshop in Silicon Valley. Listening to the way non-mining companies approach innovation was an absolute eye-opener. Especially, talking to innovation executives whose company’s survival depends on innovation. I also got to see Tesla’s assembly line in California where innovation is essential to their business.
Rio Tinto is a huge operator, how can small businesses and start-ups with perhaps little more than a good idea or a prototype get in front of the right people?
It’s pretty easy. As I have said before, my proverbial door is always open. I can be contacted by email, snail mail, on the phone or in person. If the idea is applicable to my corner of the organisation, I will put you in front of the people who can help make it happen. If it’s applicable more broadly within Rio Tinto, I will direct you to our Central Growth and Innovation Group that manages and coordinates innovation across the whole organisation.
A small company came to us with a great idea about how to improve haul truck engines and reduce fuel burn which are large maintenance and operational costs. They had been trying to engage with Operations for two years without success as Operations is very focussed on the day to day challenges of mining. The CEO found my profile on LinkedIn, and six months later we’re rolling out a proof of concept trial.
My open door policy for innovation is also why I accepted the invite to present at Austmine 2017.
How does necessity breed opportunity with reference to METS firms? Does Rio Tinto work with innovative METS firms to solve problems in their business?
The short answer to the second question is “Yes”. The first part takes a little bit more explaining.
I think it’s very important for METS firms to understand the problems that need solving. Sometimes suppliers approach us looking for an application for their technology. I prefer going from the other direction and approaching a METS firm with a defined problem and asking them to develop a solution. By and large these problems are not a corporate secret and often they are critical for our business so they can come with a few zeroes attached. We’re not backwards in coming forwards when we are looking to solve a critical issue.
When we’re constructing large-scale deep block cave mines, heavy-duty ground support is absolutely necessary. Heavy-duty mesh, cables, bolts and shotcrete are often used but the process can be time consuming. We approached a range of OEMs with our “problem” of wanting to speed the process up, and we received back a number of interesting solutions. Some of these have moved forward into proof of concept trials.
A few years ago, our Kennecott mine experienced a massive landslide. It was the largest non-volcanic landslide in history. It displaced 150 million tonnes of matter. After that incident, it quickly became apparent that we needed to be able to better model pit wall stability and understand how different wall designs and mining sequences impact that stability. This is one of those previously mentioned critical issues, when you’re dealing with walls a mile from top to bottom and two to three miles long. We approached a number of companies, starting conversations about what we wanted to achieve. They came back to us with a number of very impressive solutions.
That’s why we have Translators on staff. Due to increasing specialisation, we needed to translate quite complex solutions to our Operations and senior investment executives who then decide whether to spend money on fixing this particular problem. The Translators have become indispensable as conduits between the technical expertise of the external specialists and our senior executives.