Pioneering the future of fleet management

am-may-16-truck-miplan2-300x225With the rise of production costs in mining reaching almost 30 per cent over the past few years, the translation of constantly changing fleet data into understandable information in real time is essential for efficiency and productivity.

Fleet management provides vehicle tracking, diagnostics, and the assessment of driver behaviour to ensure the effective running of operations. It also decreases overall production costs by lowering downtime through scheduled maintenance, and preventing the wastage of fuel by enforcing fuel management, as well as identifying discrepancy problems of specific trucks and the workers responsible.

The use of next level technology in the areas of safety, maintenance, and productivity is expected to rise in this area, with a survey by Timetric Mining Intelligence indicating that 85 per cent of respondents have invested in fleet management technology as well as predictive maintenance.

As the Internet of Things (IoT) expands into the mining industry, efficiency has increased, enabling all equipment data and tracking information gathered to provide predictive (or preventative) measures for maintenance. The collation of these immense resources of information – referred to as Big Data – means traditional database management systems (often just excel spreadsheets) are unable to compete. These require more innovative systems for fleet management; this has seen companies such as Rio Tinto open a ‘Big Data’ Analytics Excellence Centre in 2015 to predict and prevent equipment failures, lower maintenance costs, and heighten productivity.

In an effort to improve fleet productivity, decrease operational costs, and reduce administration time for data capturing and management, Whitehaven Coal implemented the MiPlan MiFleet solution at one of their Gunnedah Basin operations in north west New South Wales.

MiFleet, one of MiPlan’s range of apps for monitoring fleet management, uses tablets to gather performance and productivity data of truck fleets. The apps are part of the MiApps suite, which includes MiDrill, MiBlast, MiDig, MiFleet and MiTime, that collectively offer monitoring of an operation’s excavation, material logistics, drilling and blasting, human resources, and maintenance.

am may 16 truck miplan2MiFleet features time allocation capabilities which track the state and activity of equipment during each shift in order to calculate utilisation and availability KPIs. Vertical and horizontal distances are able to be measured in real time dollars per kilometre, enabling planning and tracking of any variations. Truck activity is improved by the system’s complete cycle time, which can track their load and haul cycle times. The system features a GPS map to determine the current location, status and activity of a fleet in one view. It also enables offline capability for as long as necessary, automatically syncing all data collected once it comes within range of an internet connection.

The system was trialled in October 2015 at Whitehaven’s Tarrawonga mine in Boggabri, approximately 30km west of Gunnedah.

After two months of successful operation alongside their normal paper management approach, the system was ready to ‘go live’. It began with the installation of a single tablet for the workers to understand how it worked.

Over the following two weeks, they purchased Samsung Galaxy Tab S tablets – their tablet of choice – and installed brackets into all their fleets. Engineers, supervisors, and operators were provided with onsite training on how to use the system, after which a trial run parallel to their normal paper system. At the end of each month, MiPlan went back onsite to assist with the increased data streams and aid better data reporting and management processes.

Tarrawonga mine manager Anthony Margetts said, “After conducting a proof of concept of MiPlan’s MiFleet, we decided the application was a good match. It was simple and readily accepted by all.”

“MiPlan was onsite to engage with equipment operators and helped us through the transition to a paperless system. The use of conventional consumer products like Samsung tablets represents a low cost technology solution for managing the equipment fleet.”

Since implementing the system, Whitehaven reaped several benefits such as achieving more production and performance data, enabling them to analyse and action that data in almost real time. This also allowed faster communication about production decisions with operators.

The trial discovered significant discrepancies between the paper-based and real time data, highlighting another advantage of the app. Additionally, it limited lengthy data entry processes, saving time and costs incurred when supervisors and site clerks are required to manually process paperwork. This led to the saving of paper, printing, and administration time and costs.

The system allowed for the consolidation of the operation’s wider production data into a single source, improving the flexibility of reporting.

Supervisors found that they were able to make in-field decisions on the way their fleet is used with the system’s real time data feeds.

After the first year, return on investment is expected due in a large part to the low product purchase and implementation costs.

This is the first collaboration between Whitehaven and MiPlan, with Tarrawonga now looking to implement the MiDrill and MiBlast (MiD&B) applications offered. This will ensure their whole operation is managed in real time and render their operation paperless.

How the Federal Budget affects mining

budget-550x270With the release of the latest Federal Budget there have been fewer changes than expected, with small business and middle income tax payers the big winners, but how will it affect the mining sector?

The outlook, broadly for the industry, isn’t overly favourable with mining investment expected to fall by 27.5 per cent in 2015-16 and 25.5 per cent in 2016-17, as the industry still reels from the downturn.

Mining itself has also dealt a major blow to budget estimates, being directly blamed for a shortfall in expectations.

“The largest contributor to the expected forecast error in 2015-16 is from the shortfall in company tax. In 2015-16, company tax is estimated to be $3.5 billion (5.1 per cent) lower than expected in the 2015-16 Budget. This is primarily driven by the fall in commodity prices in recent years, lowering profitability in the mining sector,” the budget papers stated.

Yet the government is pinning forecasts for the domestic economy using what may be inflated spot prices.

It has forecast a spot price of US$55 per tonne for iron ore, a rise from previous estimates of US$39 per tonne; US$91 per tonne for coking coal compared to US$73 per tonne in the last budget; and US$52 per tonne for thermal coal, which remains unchanged from previous budget estimates.

Despite this negative forecast – or because of it – the government is stepping in to build a new foundation for the next wave of mining.

The resources industry has been supported by the federal Government with one of the largest major national initiatives, a program designed to reinvigorate exploration.

The National Resources Development Strategy – Exploring for the Future, is a $100.5 million program designed to boost productivity and competiveness of the sector.

“The 2016-17 Budget delivers a strong boost to the productivity and competitiveness of this sector with $100 million provided to Geoscience Australia for mapping mineral, energy and groundwater potential in northern Australia and South Australia,” national minister for resources and energy Josh Frydenberg said.

According to the government, “The $100 million Exploring for the Future programme will produce pre-competitive geoscience data, to be released on an annual basis over the next four years. Geoscience Australia estimates that around 80 per cent of Australia remains under-explored, in particular, areas in the Northern Territory, Queensland, Western Australia, and South Australia, which will be the focus of this initiative. This will improve Australia’s long term exploration prospects and help address declining new onshore exploration.”

Frydenebrg added: “The benefits for doing so are clear. In 1996, Geoscience Australia undertook $3 million of analysis in the Browse Basin. This helped identify the Ichthys field, which will produce more than $70 billion in export earnings over the next forty years.”

“Further, data compiled across South Australia in the 1960s, costing around $350,000, helped identify the resource potential of the Olympic Dam and ultimately to the discovery of ore more than 300 metres underground.,” he said.

“At a challenging time for the resources sector, this important initiative will help ensure that Australia’s strength in innovation is furthered, and that we maintain our competitive edge in this world-leading sector.”

The initiative was welcomed by mining lobby groups.

The Minerals Council of Australia called it a “strong pro-growth budget”.

“It balances a careful approach to spending, the maintenance of a strict approach to tax integrity and lays out a medium term plan to promote investment and growth,” Minerals Council chief executive Brendan Pearson said.

“The minerals sector welcomes the Government’s commitment to a $100.5 million initiative over four years to produce mineral, petroleum and groundwater resource data in targeted areas in northern Australia and South Australia to help identify new greenfield exploration sites.

“This is a critical investment to identify the next sources of Australia’s minerals wealth. “

The Queensland Resources Council echoed the Minerals Council, stating “it is pleasing the Turnbull Government has an eye to high-tech jobs of the future in the resources sector”.

Exploration is the R&D, or building blocks, for the resources sector, getting the sector ready for the inevitable future upswing,” QRC chief Michael Roche said.

However, greener mining initiatives have been scrapped in the new budget, with the Low Emissions Technology Demonstration Fund and the Coal Mining Technology Abatement Support Package closed, while the Carbon Capture and Storage Flagships funding has been reduced.

Anglo American sells off phosphates and niobium

anglo_2-604x270Anglo American has sold its niobium and phosphates business to China Molybdenum for US$1.5 billion.

The miner was first slated to exit it’s the phosphate and niobium operations in Brazil in February, when the assets were estimated to be worth around US$3 billion.

Anglo American will use the proceeds to pay down debt.

The phosphates business consists of a mine, beneficiation plant, two chemical complexes and two further mineral deposits.

The niobium business consists of one mine and three processing facilities, two non-operating mines, two further mineral deposits and sales and marketing operations in the United Kingdom and Singapore.

Together, the businesses generated EBITDA of US$146 million in the year ended 31 December 2015.

Commenting on the sale, Anglo American CEO Mark Cutifani said, “The sale of our niobium and phosphates businesses is another positive step forward in the strategic reshaping of Anglo American that we set out in February.

“The proceeds from this transaction, together with the ongoing productivity and cost improvements we are driving through the business, will enable us to continue to reduce our net debt towards our targeted level of less than $10 billion at the end of 2016. This transaction confirms our commitment to creating the new Anglo American, positioned to deliver robust profitability and cash flows through the price cycle.”

The sale to China Molybdenum is still conditional upon Chinese government approvals, and that of the company’s shareholders.

Outotec process equipment set for Houndé gold operation

Endeavour-720x400Outotec has been awarded a contract by Houndé Gold Operation SA, a subsidiary of Endeavour Mining Corporation, for the delivery of process equipment to the greenfield Houndé gold project in Burkina Faso. Outotec’s contract value is approximately €13 million and the order has been booked in the second quarter 2016 order intake.
Outotec’s scope of work includes the design and delivery of a 6 MW SAG grinding mill, a 6 MW ball mill, a pre-leach thickener, and services including spare parts. The new plant will process annually 3 Mt of ore. The equipment will be delivered during the second quarter of 2017 to ensure the first pour of gold for by the end of 2017. “Outotec has a large portfolio of offerings for treating various gold ores. We are pleased have been the opportunity to deliver our energy efficient grinding mills and advanced thickener technology to Endeavour’s Houndé gold project”, says Kalle Härkki, head of Outotec’s Minerals Processing Business Unit.

2016年1 – 4月澳洲市场:铁矿石上涨,澳元升值。

从1月中旬到4月底,澳元兑美元从0.6830最高飙升至0.7828,涨幅近15%。澳元的升势与一系列经济事件吻合,包括商品全面复苏、市场对美联储政策预期的转变、日本实施负利率、欧洲进一步降息,以及因澳洲联储(RBA)上半年降息预期减弱,澳大利亚债券利率上涨了25个基点。

澳元强势反弹是哪三大因素造成的?
1. 大宗商品暴力反弹
大宗商品方面,年初至今,铁矿石价格呈现一波暴力反弹,从而拉动商品货币澳元不断升值。从1月低点算起,芝商所 (CME Group) 旗下62%品位铁矿石期货价格迄今大涨65%,至57.41美元/吨。这波价格反弹的支撑因素可能主要来自于中国钢厂趁着钢价反弹之际开足马力生产,从而带动原材料采购,且澳大利亚部分矿石供应出现中断。

原油价格近期一路走高亦助推澳元升势,虽然多哈会谈的失败导致油价一度大幅跳空回落,但是油价随后强势反弹,甚至仍不断刷新今年以来的高点。鉴于市场风险情绪回归,以原油为首的大宗商品价格在未来的一段时间里仍有望持续上涨。
2. 美国推迟加息打压美元
大宗商品价格上扬是一个原因,澳元的涨势主要还是源自于美国推迟加息,美联储对市场安抚的一种鸽派姿态,导致短暂的全球投资者风险偏好的上升,使得大宗商品以及部分高风险资产都得到了一些比较明显的反弹机会,这是影响包括澳元在内的高风险资产的深层次原因。

美元方面,美国统计局4月中旬公布了美国3月新屋开工率,录得-8.8%,远低于预期的-0.7%,这表明一季度美国房地产已经开始降温,经济也大幅下滑,给投资者对于美国加息的预期又增添了额外的顾虑。美联储对未来的加息犹豫不决,美元一落千丈,澳元等非美货币价格乘胜追击,纷纷扩大涨幅。

3. 本地向好数据提供支撑
回到澳洲国内,近来本地经济数据普遍向好是澳元表现坚挺的另一重要原因。最新数据显示,澳洲的经济增长率已经加速至3%,主要得益于国内消费需求走强,失业率也由1月高点6%回落至5.8%,就业岗位增加2.6万,远好于预期值1.7万和前值0.03万。种种迹象表明,本地经济正逐渐从矿业衰退中恢复过来,同时彻底打消了澳洲在一两年内出现经济衰退的疑虑。

国内经济继续增长,矿业投资增加,非矿业产业需求可观,劳动力市场改善,然而全球低通胀和低利率,导致澳元走高,打压了澳洲通货膨胀以及劳动力成本增速,这在一定程度上增加了日后澳洲联储降低利率的可能性。
澳洲联储拒绝强势澳元
针对澳元近期的强势表现,澳洲联储主席史蒂文斯(Glenn Stevens)再现口头干预,称澳元或有上涨过度的风险,并暗示外汇市场将再度成为联储决策的风向标。其他联储高级官员也对澳元高企表示关切,并表示全球其他央行都希望实现自己本币汇率更具竞争力。

最新公布的澳洲联储会议纪要显示其对澳元强势不怎么满意。联储甚至为了澳元走高讨论适当的货币宽松政策。无论如何,这复杂化了经济再调整并对通胀造成压力。似乎联储此次的说辞比之前更强硬一些。

FLSmidth enters into strategic agreement with Wirtgen Group

EventsGlobal cement and minerals processing leader FLSmidth has partnered with Wirtgen Group company Kleemann for the supply of cone crushers for mobile applications in the construction industry. Kleemann is the global technology leader within the road and construction machinery segment.

The long-term cooperation agreement between the two industry majors leverages FLSmidth’s technology leadership in cone crushers and Kleemann’s lead position in mobile crushing in the construction and aggregate industry.

Group Executive Vice President of the Minerals Division in FLSmidth Manfred Schaffer described the alliance as a part of FLSmidth’s strategy to develop technology in partnership with leading peers. With FLSmidth being the main provider of productivity within the minerals and cement segment, and Kleemann having a strong foothold in the construction industry, it presented a unique opportunity for FLSmidth to expand into adjacent markets, he added.

Keeping Whyalla open essential to Arrium survival, says administrator

r390_54_1013_842_w1200_h678_fmaxA first meeting of Arrium’s creditors is being held today, with the iron and steel business’s administrator saying the future hinges on the Whyalla’s steelworks.

Mark Mentha of insolvency firm KordaMentha said most of the company, which owes around $4 billion, is in good shape, but was exposed to the survival of Whyalla. Arrium, which entered voluntary administration this month, has said it was undertaking studies on the effects of mothballing the loss-making plant.

Turning the steel factory around was vital to both Arrium and the community, Mentha told the ABC.

It’s the front end of the business where we dig the ore out of the ground and feed that into the mill starts the whole steel process,” he told AM.

In Whyalla, in particular, many of the businesses in that town are in some way connected to the steel works. So it’s a business that is very much interwoven into the fabric of that community and the state of South Australia.

The creditors meeting is being held in Sydney and streamed to workers in SA.

Meanwhile, the Australian Workers Union has called on the federal government to consider co-investment in the steel facility, with modernising to supply the upcoming offshore patrol vessels a “golden opportunity” for Arrium.

In the case that Australian steelmaking operations, like the Whyalla steelworks, would require an upgrade to manufacture the grade of steel required, the Government should look to enter into a co-investment arrangement,” AWU national secretary Scott McDine told The Advertiser.

Record numbers attend Bauma 2016

bma_pr_2016_bauma-2016-aus-der-Vogelperspektive_IMG_800-604x270Approximately 580, 000 people from 200 countries attended bauma, highlighting continued strength in the global mining industry.

This attendance figure is an increase of more than nine per cent compared to previous years, with a total of 3423 exhibitors from 58 different countries showcasing their developments, innovations, and products. They presented over a record exhibition space size of 605 000m2, while 63 per cent of exhibitors came from outside of Germany, higher than previous fairs.

Chairman and CEO of Messe München, Klaus Dittrich said, “The response from the participants this year was amazing. The visitors at bauma always come looking to invest, but this year the exhibitors’ order books filled up much faster than expected.”

“Many exhibitors are talking about a record level of demand at bauma 2016; that is an extremely positive sign in this current uncertain climate.”

Managing partners in the Wirtgen Group, Jürgen and Stefan Wirtgen, saying, “Bauma as the leading trade fair has always been a kind of barometer for the industry and from the start it had a very special significance for our company. Our presentation at this year’s bauma is the most successful so far in the history of the company.”

The fair is also a major platform for debuting the latest innovations for a worldwide trade audience.

The VDMA Association for Construction Machinery and Building Material Machines chairman Johann Sailer said, “Bauma is the ideal platform for presenting innovative new developments, because it has a big impact in the industry around the world. Again in 2016 the world’s largest show of construction machinery will deliver impetus for further growth in our sector.”

Managing Director and CEO of Komatsu Europe Masatoshi Morishita said, “We make use of the attention bauma attracts to present our innovations. This event is a milestone for the industry. It’s not only Komatsu that tries to get certain machines ready in time for bauma. This trade show really drives the entire industry forward.”

The next bauma will be held in Munich between April 8 and 14 in 2019.

A $100 million “global first” innovation precinct is coming to Sydney

Malcolm-Turnbull-china-640x332Australia is set to get a “global first” $100 million innovation precinct that will foster innovation, support local startups and drive commercialisation.

Malcolm Turnbull announced the partnership between the Chinese Ministry of Science and Technology and the University of New South Wales during his first trip to China as prime minister.

The deal will see a $100 million Torch Precinct established on the university’s campus.

The Torch precincts have been operating in China for nearly 20 years and now generate 7% of the country’s GDP.

The UNSW precinct, the first of its kind outside of China, could contribute $1 billion to Australia’s GDP in its first ten years, according to a Deloitte study.

UNSW president Ian Jacobs says the precinct is a “global first”.

“[It] has the potential to reset the Australia-China bilateral relationship and boost the nation’s innovation system,” Jacobs says in a statement.

“This is about future-proofing our national competitiveness by strategically positioning Australia as China becomes the world’s largest investor in R&D and the 21st century’s science and technology superpower.

“The Torch partnership is an important milestone in the further development of Sydney as Australia’s global innovation city.”

A group of eight Chinese companies have already committed $30 million to the program, with an aim to build investment to $100 million.

The industry partners will establish incubator spaces on the Kensington campus before the precinct is constructed by 2025.

During his trip to China, Turnbull also officially unveiled the startup landing pad in Shanghai, joining other locations in Silicon Valley and Tel Aviv.