ABB survey shows majority of utilities see IoT as key to asset management

iotA global survey of executives at leading utility companies by power and automation technology specialist ABB has revealed the increased importance of integrating information technology (IT) and operational technology (OT) for effective asset management.

According to the study, which covered over 200 executives at leading electricity, gas and water utilities, IT-OT integration is considered a key component of any effective asset management strategy. While 80 per cent of the respondents believe IT-OT integration is valuable for asset management, 58 per cent either have or are planning to have, a strategy leveraging the Internet of Things (IoT) for asset management. About 55 per cent of those surveyed reported that the importance of asset management had increased over the past 12 months.

The internet allows things, services and people to be interconnected, improving data analysis, boosting productivity, enhancing reliability, saving energy and costs, and generating new revenue opportunities through innovative business models. The industrial internet and cloud services also offer the benefit of bringing world-class analytics within reach of smaller production facilities. For over a decade ABB has been developing and enhancing process control systems, communication solutions, sensors and software that support the concept of the Internet of Things, Services and People (IoTSP).

Massimo Danieli, Managing Director of the Grid Automation business unit within the company’s Power Grids division observes that utilities, now more than ever, see the need to bring together once disparate technologies and systems to better understand their increasingly complex asset base and share those insights with people across the organisation, in order to improve planning, productivity and safety. Commenting that it was very much in line with ABB’s focus on IoTSP as part of their Next Level strategy, he added that the company’s comprehensive portfolio put them in an ideal position to support their customers in integrating the worlds of information and operational technology.

Respondents to the survey see numerous benefits in the IT-OT integration. On a scale of 1-5, they ranked better long-term planning (4.86) as the highest priority, followed by increased staff productivity (4.43), improved safety (3.98) and better use of capital (3.68).

The study ‘Bridging IT and OT for the Connected Asset Lifecycle Management Era’ was conducted in collaboration with Microsoft Corp. and market research firm Zpryme.

MAJOR QUARRY SUPPLIER OPENS NEW GLOBAL PARTS FACILITY

Terex-global-parts-facilityA major international quarry plant supplier has opened a new global parts facility that could have flow-on benefits for Australian quarry customers.
Terex Materials Processing Systems recently invested more than $USD7.2 million ($AUD9.4 million) to establish a state of the art facility in Dungannon, Northern Ireland.

Terex Materials is a global division of the Terex Corporation that encompasses the Powerscreen, Terex Minerals Processing Systems, Terex Finlay, Terex Washing Systems and Terex Environmental Equipment brands.

The new Terex Materials facility includes a 957m2 office space, where a team of parts experts will field technical and sales inquiries.

The facility is expected to be able to house more than 86,000 live inventory parts. In addition to having a warehouse capacity of 5463m2, the facility has a 650m2 external canopy that can provide overhead storage for larger product.

The facility has also been fitted with “leading edge” technology to help the company “expedite all orders efficiently”. This includes three Hanel Lean-Lift automated storage and retrieval systems, which will operate with the facility’s 168 bays of high-bay racking; three dock levellers designed to improve ease of access for deliveries and container shipments of large-scale parts; and a range of Linde electric material handling equipment, including an order picker and aisle masters capable of working at a height of 9m.

Australian distribution
Within Australia, Terex quarry equipment is distributed through four dealers: OPS Screening and Crushing Equipment, Finlay Screening and Crushing, Terex Minerals Processing Systems (MPS) and Lincom Group.

Terex Finlay mobile plant and Terex Washing Systems products are available through OPS in Western Australia and the Northern Territory, and through Finlay on the east coast of Australia, including South Australia and Tasmania. OPS is also the local distributor for Terex Environmental Equipment.

Terex MPS is responsible for the provision of fixed and modular crushing and screening plant to the Australian market and Lincom is the local distributor for Powerscreen.

Terex parts for each of the brands are available through their respective local distributors, and a Terex Materials spokesperson confirmed this would continue to be the case with the introduction of the new global parts facility.

However, the spokesperson noted the new facility would increase the inventory available to Australia’s local dealers, and improve Terex Materials’ response time to those local distributors, which could result in benefits for quarry customers further down the supply chain.

Mt Cattlin begins lithium production

WebsiteGalaxySM_000Galaxy Resources has officially begun production at its Mt Cattlin mine.

“Production has commenced, with both mining and processing operations having started up,” Galaxy said in a company statement.

“An initial 5-week program will sequentially recover and stockpile spodumene and tantalum concentrates from the fines circuit ahead of crusher and HMS (coarse circuit) commissioning in the June quarter,” the miner stated.

“Given the quantities of ore already mined and available for processing, the immediate focus at restart through to May 2016, is on the processing circuit. This work shall including progressive commissioning of the primary and secondary feed preparation circuits, thickener, fine and coarse circuit screens, mica removal screens, the tantalum spirals and tables, as well as the fines reflux classifiers and filter belt.”

As part of this restart of production, mining of blasted ore in the Dowling Pit has also begun and will be stockpiled, with feed for the processing circuit sourced from existing stockpiles.

Galaxy is aiming to reach a throughput rate of 800,000 tonnes per annum by the end of June.

First delivery of concentrate is on target for July/August.

Sandvik forms new mining division

Sandvik has unveiled a new business division, Sandvik Mining and Rock Technology.

The division was formed through the merging of the Sandvik Mining and Sandvik Construction divisions.

According to Sandvik, the new division “will be organised in a de-centralised business model with separate product areas based on the product offering”.

“Each product area will have full responsibility and accountability for its respective businesses.”

Bjorn Rosengren, Sandvik’s CEO, explained the reasoning behind the merger.

“Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering,” Rosengren said.

“In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralised business model enables an even clearer focus and faster response to our customers.”

The new structure will begin operation in July.

Current head of Sandvik Mining, Lars Engstrom, has been appointed president of the new division, while current president of Sandvik Construction, Dinggui Gao, will leave the company on 1 July.

The five industries where businesses are most at risk of default

Businesses that operate in the Australian construction industry are at most risk of defaulting in the next 12 months, according to a report prepared by advisory firm SV Partners.

The SV Partners Commercial Risk Outlook March 2016 report places firms that offer professional, scientific and technical services as the next most likely to experience financial distress, while retail is the third most likely industry in which businesses are at risk of default.

Manufacturers and transport, postal and warehousing providers are also in the top five industries most at risk of default.

According to the report, which analysed retrospective commercial data, the next 12 months will be trying for Australian retailers.

The report predicts as many as 14 large and medium size retailers are at serious risk of financial distress, following in the high-profile cases of Dick Smith and Laura Ashley.

Three of these unnamed retailers have turnover of at least $1 billion in turnover, which SV Partners said “implies further adverse impacts within the retail industry with key retail players in financial distress”.

A further 11 unnamed retailers with annual turnover between $100 and $500 million are in the “highest risk category of financial failure”, according to the report.

Overall, SV Partners predicts close to 50,000 or 2.1% of Australia’s 2.34 million operating businesses will face “adverse financial events” within the next year.

Approximately 10,000 businesses are placed under external management in Australia each year, with the rate of external administrations appearing to be on the rise.

Appointments of external administrators increased by 8.3% in the September quarter of 2015, compared to the previous quarter, with retail appointments increasing by 9.8% in the same period.

Of the appointments in the September quarter, the construction industry accounted for 16.7% of administrations and the business and personal services category accounted for 41.2% of appointments.

The regions at most risk of default

According to the SV Partners report, businesses in the Northern Territory and Queensland are under financial pressure, with the two regions indicating the highest levels of potential defaults relative to the number of businesses operating there at 2.8% and 2.4% respectively.

However, specific locations along the east coast of Australia top the list of the locations where businesses are most at risk of default.

Melbourne’s inner suburbs lead the way, where 2% of the 2,552 businesses operating are at risk of financial distress.

Next in line is Queensland’s Gold Coast, where 3% of the 2,027 businesses are at risk, followed by Sydney’s city and inner south, where 2% of the 1,938 businesses are at risk.

Businesses operating in Sydney’s inner south west also make the top five (2.8% of 1,792 businesses, as well as businesses in Melbourne’s south east (2.6% of 1,730 businesses).

Why now is crunch time for many SMEs

Colin Porter, managing director of CreditorWatch, told SmartCompany March and April are often critical months in terms of cashflow for many SMEs.

One reason for this is tax returns to the Australian Tax Office are often due in March.

“Tax returns are critical large payments that some businesses hope to finance through miracles,” Porter says.

“The Tax Office is generally a good creditor and will provide funding, however at certain times they won’t and don’t.”

Porter says the first quarter of the year can also present cashflow problems for some businesses if invoices have not been issued and paid following the Christmas slow-down.

One a more personal level, Porter says the new year is often a time when business owners will also re-evaluate their business.

“There can be a realisation that this is how my business is and with starting the year, they will consider what needs to be done,” he says.

Expert: impact of Whyalla Arrium closure would be worse than Holden shutdown

1455666281558_1The closure of Arrium’s loss-making Whyalla steelworks would have a greater impact on its community than the closure of Holden’s Elizabeth factory next year would, according to Professor John Spoehr.

The academic from Flinders University’s Business School told the ABC that the federal and state governments should formulate an assistance package for the company. 1,100 are employed at the steelworks and a tenth of the workforce in Whyalla – population 22,000 – work at Arrium.

“It’s important that we explore every possible option for keeping the plant in operation in the years to come,” Professor Spoehr told the ABC.

An estimated 4,000 jobs would be at risk due to the factory’s mothballing, which is being examined by the company. Studies on this are due to finish in April, as announced when the company released its half-year profit results last month. A steelworks shutdown would see many in the community relocate.

“It would have a devastating impact on the local economy, because it’s such a significant employer, and in some ways it would have a more detrimental impact than the closure of Holden is going to have in Adelaide, because it represents a much larger proportion of total employers in the area,” said Professor Spoehr.

MEDIUM-SIZE WHEEL LOADER ARRIVES ON THE MARKET

hero1 (1)Following the announcement in late 2015 that Sydney-based AWD Group will distribute LiuGong Machinery Corporation plant and equipment along the eastern seaboard and in the Northern Territory, the first of the new machines under AWD Group’s leadership is now available in Australia.
The 18-tonne 856H wheel loader increases productivity and serviceability to the Australian market. It is powered by a 162kW, 9.3-litre Cummins diesel engine, with net power of 160kW at 2200 rpm, offering improved torque and efficiency over previous models. It features a 3m3 bucket and 12.5-tonne straight tipping load, coupled with a standard breakout force of 180kN and a standard dump clearance of nearly 3000mm.

Other features include closed circuit pumps for hydraulics and steering, larger cab with improved visibility, a forward hinged hood for improved access, a stack cooling pack for better cooling, and ground level access for easy maintenance.

Modern ZF technology is applied in the driveline system, and the axle housing and main transmission system are reinforced to improve strength and load capacity, with carrying capacity increased by 40 per cent.

The 856H has a long service life, with the average life cycle increased by 250 per cent compared with the previous model. The transmission works efficiently with the machine to achieve an optimal power output, and an automatic shift transmission with kick down function and electric proportional forward-neutral-reverse lever make operating more convenient and reduce operator fatigue. This feature, along with high quality genuine parts, ensures the 856H maximises productivity for the customer.

The cab design improves all-round visibility for safety. Frequently used controls are placed within easy reach of the operator and curved glass in the cab decreases sound levels. A constant temperature function can adjust the temperature automatically. The cab features ROPS and FOPS in compliance with ISO International Standards.

Maintenance of the 856H is simple and convenient. It adopts a ground maintenance approach, which means technicians can replace and check various filters and fuels by standing on the ground, without climbing up and down. The forward tilting engine hood is equipped with an electric lifting device, which alleviates the need to manually open the engine hood, and will ultimately prevent any occupational health and safety issues occurring. It also allows for ground level access to service points, to increase accessibility to components, thereby reducing daily and scheduled service times while increasing the machine’s availability to work. The hydraulic driving fan motor can be reversed for cleaning, and the water and oil drains are placed together to realise easier, faster maintenance and service.

Quarry-spec offerings
The LiuGong 856H wheel loader can be purchased from the AWD Group. The dealer has previously informed Quarry that a range of other quarry-spec earthmoving machines will be gradually introduced to the market, including the 20-tonne CLG862G, the 24-tonne CLG877G and the 30-tonne CLG890H. The loaders are also equipped with Cummins diesel engines, have net power of 165kW to 248kW and feature bucket sizes between 3.5m3 and 5.4m3, with breakout forces from 198kN to 251kN. “LiuGong’s 890H wheel loader gives its operator maximum control over the equipment,” an AWD Group spokesman told Quarry. “The machine’s engine matches its multiple working and gear shifting modes, providing maximum traction and speed.

“The electronic fuel injection system offers a wide range of combustion options and helps to reduce cost in use. It features a Cummins engine and the latest ZF automatic electro-hydraulic transmission, making the loader’s shift a smooth process.

“With a bucket capacity of 7m3, this machine suits duties in quarrying applications and can be used for loading blasted material at the face into haul trucks.”

The largest of AWD Group’s excavators will be the 45-tonne CLG945E, the 48-tonne CLG950E and the 70-tonne CLG970E. They are equipped with Cummins diesel engines, have net power of 280kW to 338kW and dig depths from 6.5m to 7.8m.

“LiuGong’s products include some big machines which are ideally suited to large scale quarrying and mining operations, such as the 50-tonne and 70-tonne excavators,” the spokesman said. “Built with the latest component technologies and many advanced processes, and developed with LiuGong’s product development process and product life cycle management tools, the 970E delivers a customer focused, high quality 70-tonne excavator, which is ideally suited to large scale quarrying operations.”

Source: AWD Group

Thyssenkrupp wins coal port contracts

port-kemblaThyssenkrupp Industrial has won two contracts to replace materials handling equipment at the Port Kembla Coal Terminal.

The $100 million contract involves the design, supply, construction and commissioning of the replacement materials handling equipment, consisting of around 560 tonnes worth of primary structures.

It has awarded the subcontract to Civmec.

“Our colleagues from thyssenkrupp Marine Systems recommended Civmec as they are highly experienced in the delivery of complex heavy engineering projects and have state of the art facilities based in Henderson with a highly skilled workforce,” thyssenkrupp Industrial Solutions Australia CEO Greg Breakell said.

“They clearly demonstrate how capable Australian manufacturing is when it comes to heavy and industrial engineering.”

Yancoal’s Donaldson coal to shut down

Yancoal’s Donaldson coal operation will go into care and maintenance from June this year, which will result in 92 redundancies.

An announcement from the Chinese miner said one of three mining units at the Abel coal mine would be shut down from March 14.

The move will immediately affect ten roles, which the company will endeavour to redeploy in the Ashton coal mine.

A round of voluntary redundancies will commence at the Abel, Ashton and Austar mines prior to the change in operations.

Donaldson currently employs 103 people, which will be reduced to eleven employees to keep the mine on care and maintenance.

Care and maintenance will include the ongoing rehabilitation of the Donaldson site and management below ground in anticipation of future mining operations.

The Abel mine produced 1.34 million tonnes of salable thermal and soft-coking coal in 2015.

Yancoal recently secured a $1.32 billion debt financing deal in exchange for handing over control of the Ashton, Austar and Donaldson mines to a Chinese consortium.

Yancoal’s full year loss for 2015 was reported as $291.2 million.

The Internet of Mining Things delivers the next wave of productivity

The Internet of Things (IoT) is increasing the connectedness of people and things on a scale that once was unimaginable. The magnitude of this evolution is momentous with more than 80 billion Internet-connected devices projected to be in use in 2024, up from less than 20 billion in 2014. When we then couple the data produced, and processes involved, in the interaction of things-to-things and things with people, what results is a powerful model upon which to drive the digitisation and transformation of companies, industries and whole nations.

The ability to use standard Internet technologies, such as unmodified Ethernet, throughout, from the enterprise all the way down to individual field devices, enables new levels in connectivity, providing greater productivity, better utilisation of assets, and improved decision-making to industrial companies.

According to Michael Boland, distinguished systems engineer at Cisco, “The IoT is connecting people in more relevant, valuable, and meaningful ways; delivering the right information to the right person or machine in real time. Data is being leveraged in more useful ways for better decision-making.”

The mining industry has a lot to gain from the connectivity that the IoT delivers. Mining operations around the world are on an automation curve – they are applying technologies to automate their key functions to gain efficiencies in production. However, these initiatives are often focused and restricted within production silos.

“We see a significant number of mines that have data locked away in individual systems but now want to federate that data together, instigate new processes, involving their people in new ways to achieve better outcomes. Mining generates big data because the number of sensors are growing rapidly and systems involved are becoming more intelligent, so the challenge ahead is to federate that data,” said Boland.

Productivity and safety are two key drivers in mining. Removing people from the mine site and into remote operating centres helps companies achieve both. By leveraging IoT technologies, the interaction between people, process, data and things can be securely and reliably monitored, modified and maintained remotely.

Turning big data into meaningful information
“The next big boom in mining is going to be connecting a lot more ‘things’. There are going to be more wireless and mobile devices that will be able to be instrumented, sensed and controlled more effectively,” said Boland.

This results in a lot of data being generated that needs to be analysed to generate useful information. Data needs to be intelligently captured, correlated and analysed to optimise systems.

Not only does this data need to be captured and analysed, but also to be available as useful information in real time so that the mine’s remote operating centre can modify processes, asset utilisation and maintenance to optimise production rates in relation to dynamic market demands. Through IoT, this next level of optimisation can be achieved for a single mine or a federation of mines, rail and ports. IoT enables the digitisation of the entire mining supply chain for optimisation.

Centralised control
The complete mining operation, from pit to port, involves many functions with many specialist devices and equipment. Centralising control allows mining operations to pool resources to optimise production and reduce costs.

“The other trend here is that we are arriving at a point where instead of doing everything ourselves, we are starting to contract out particular roles that require specialist expertise provided it makes commercial and economic sense and the miner is in full control,” explained Boland.

“However, it is becoming apparent that mining systems that have been implemented to date have not been designed for this concept of integrated but outsourced services. We need to have these roles inside the integrated operations systems, yet others may actually perform them in a secure and controlled way. Through well designed IoT infrastructure, the ability for remote experts to analyse information and real time systems securely,” he said.

The next wave of productivity
The IoT is taking the world by storm and opening new and exciting possibilities to businesses, government and industries. The mining sector also has much to gain from the benefits that IoT can provide, particularly in light of the current challenges.

Through IoT, mining operations can save energy, downtime and costs associated with production and transportation of resources. Remote operations remove people from potentially hazardous situations. The IoT provides the platform for the integration and optimisation of the entire supply chain.

“On a national scale, for Australia, the benefits that the IoT can deliver are most important because as a country we are not going to win on efficiency gains based on cheaper labour to drive down costs. We are going to use our expertise and knowledge of mining and automation systems to continually improve the most efficient and cost effective mining capability in the world,” said Boland.

Leveraging a unique solution
Together, Rockwell Automation and Cisco have developed a unique value proposition for mining customers to help bridge the gap between mining operations and business systems through network and security products, Converged Plantwide Ethernet (CPwE) reference architectures, training courses, services and solutions.

“By developing reference architectures for mining we are reducing risk for our customers. We are developing full guides on how to facilitate convergence of information technology and operational technology so that our customers do not have to do all the heavy lifting and have all the expertise themselves, yet still inherit the capabilities for safe, compliant and sustainable operations and performance,” explained Boland.

“We are unique in that we develop solutions that leverage our expertise in operational technology, through the Rockwell Automation offering, and then combine this with the deep networking, datacentre and security capabilities of Cisco,” he said.

Connecting people, process, data and things above and below the ground
A mine in Canada has established a new technology benchmark for future mines by applying IoT technologies throughout the site. A detailed evaluation process recognised that the Rockwell Automation and Cisco offering was capable of delivering the complete integrated solution. The central operations centre utilises IoT technologies and combines systems monitoring and control with remote equipment control and tracking.

The mine deployed the latest advances in controls and communications, including comprehensive Wi-Fi communications for surface and underground phone, data, asset and personnel tracking; and a Radio Frequency Identification-based wireless tracking system, used to create ‘ventilation-on-demand’ underground.

Combining operational technology with networking and security capabilities provided the inherent flexibility for the mine to adapt to changing requirements in real time.

According to Geoff Irvine, mining industry manager at Rockwell Automation, “Using standard Ethernet components really adds significant value in being able to combine control, safety, voice over IP, video, people tracking and also applications such as ventilation on demand.”

IoT technologies provide the capability to integrate and analyse data from various processes such as remote sensing of objects and the environment, images from cameras deployed for monitoring and maintenance, scheduling preventative maintenance procedures and monitoring power usage.

“Together with Cisco we help customers leverage technology to better gather and analyse data, and transform it into actionable, real time insightful information. By converging information technology (IT) with operational technology (OT) into a single unified architecture, mines can benefit from establishing a ‘Connected Enterprise’ and leveraging the power of this information to optimise operations and take their productivity to the next level,” explained Irvine.