Performance
2008 Operating performance
Safety
T&I is committed to the safe operation of its facilities and to the safe deployment of its personnel. As a consequence of a single, low severity injury, the T&I all injury frequency rate was 0.24 for 2008 compared with 0.00 in 2007.
Innovation
T&I's Innovation Centre aims to implement Group wide change improvements in the application of technology on behalf of the Group.
The Group has adopted a strategic programme entitled Mine of the FutureT. This comprises an interlinking set of projects aimed at delivering demonstrable step change improvements in productivity, cost performance and product quality in both surface and underground mining operations and associated mineral recovery technologies.
A key strategy in pursuit of the Mine of the FutureT is the establishment of long term relationships with world class research and development providers. For example, the Group has established an exclusive long term strategic partnership with the Australian Centre for Field Robotics (ACFR) at the University of Sydney which resulted in the formation of the Rio Tinto Centre for Mine Automation.
The first breakthrough delivered by the Centre for Mine Automation is the successful development and deployment of autonomous blast hole drilling in the Pilbara. This exclusive partnership also leverages the Group's progress in the deployment of driverless haul trucks through a partnership with Komatsu.
Through Mine of the FutureT, the Group is also focused on the operation of the first Autonomous Iron Ore mine, designated "Pit A", which is located at the West Angelas mine in the Pilbara. Pit A combines autonomous drilling with autonomous trucks and is fully integrated with the RTIO remote operations centre in Perth which controls the movement of equipment. Pit A achieved a significant milestone in December 2008 when the autonomous truck fleet was commissioned alongside the Group's autonomous drill rig, providing a launch platform for full operation in 2009.
A long term partnership with Curtin University was established in early 2008, resulting in the formation of the Rio Tinto Centre for Materials and Sensing in Mining. The partnership explores the use of advanced materials in mining applications to increase the operational life of equipment. The partnership also facilitates the transfer of advanced oil industry sensing technologies into mining applications.
Innovation's underground mining activities in 2008 continued to focus on the block cave method which is of particular relevance to the large copper orebodies currently under development. Technologies progressed include rapid mechanical development of shafts and tunnels, remote monitoring in underground mining and innovative underground crushing and sizing solutions.
The Group's capabilities in the field of processing and recovery were enhanced by the formation of the Rio Tinto Centre for Advanced Mineral Recovery, which is a long term partnership with Imperial College London. Progress was made on advancing breakthrough technology targeted to remove barren material from copper ore in order to significantly lift head grades. In addition, breakthroughs in flotation control offer the potential to materially increase recovery in copper applications.
Production Technology
The Production Technology Centre addresses core mining and processing production processes. The IPT programme for Production Technology continued to deliver strong results in 2008. The programme assisted the operating business units in realising over US$400 million in pre-tax cash flow benefits in 2008 and will remain a key programme in 2009.
Specific mining initiatives included haul truck payload management, off road tyre demand reduction, and the development of an explosives safety standard in surface mining.
The Production Technology Centre also focuses on core metallurgical capability and delivery of processing improvements. During 2008, the Centre focused on the implementation of a structured methodology to identify and eliminate specific points of loss (throughput, recovery, and grade) at the Group's processing operations. Common measures for the performance of concentrators and other fixed plant were introduced globally to enable monitoring and sustain improvements.
Asset Management
The Asset Management Centre focuses on the effective choice and deployment of the Group's equipment for mining and processing. During 2008, it focused on the continued reliability and performance of equipment across the Group, including the implementation of asset management standards, technical systems and global metrics to compare and monitor the performance of both heavy mobile equipment and fixed plant.
The IPT programme for Asset Management continued to deliver strong results in 2008, assisting the business units to realise over US$200 million in pretax cash flow benefits. Installation of real time on line equipment maintenance monitoring systems has led to continued improvement in areas such as heavy mobile equipment availability and economic extension of engine and component life.
The Centre also introduced a comprehensive suite of training programmes in 2008 to ensure the functional development of asset management professionals across the Group. Several new asset management Communities of Practice were introduced in 2008 to improve collaboration and knowledge sharing.
Strategic Production Planning
The focus of the Strategic Production Planning (SPP) Centre is to establish leading practice and develop Group wide solutions in mineral resource development, orebody knowledge and mine planning. Attention is directed to developing the skills of staff who are involved in these processes. The Centre also oversees the Group's resource and reserves estimation and reporting process as well as the core technical systems.
A key element of the Strategic Production Planning process is SPP's cooperation with business units to develop comprehensive plans and valuations of strategic development options. Development options which are considered typically include mining and processing methods and capacities, infrastructure alternatives and blending/marketing opportunities.
Results from SPP provide a logical resource development framework for more detailed studies and investment decision making.
Project Development
The Project Development Centre provides guidance, support and training for all aspects of capital projects, from prefeasibility through to execution and commissioning. It also performs a governance function by conducting project reviews and reporting back to Group operations. The Centre manages capital projects on behalf of the business units and is responsible currently for the execution of the Argyle Diamond underground project, Kestrel mine extension and the Clermont coal mine project. With construction now largely complete, responsibility for the QMM project in Madagascar was handed back to the Minerals product group at year end.
Technical Risk Evaluation
The Technical Risk Evaluation Centre, whose staff are deliberately reserved from involvement in the formulation of major investment proposals, provides independent review and advice on the adequacy of risk identification and mitigation at key points in the project approvals process. The Centre also sets standards for Risk Analysis and Management more generally across the Group and in 2008 initiated the development of a Group wide risk management and reporting system.
Production Technology Services
Production Technology Services comprises the central team of technology professionals deployed from five regional hubs who provide the breadth of experience and a multi-disciplinary approach to support existing business activity and the pursuit of new, profitable growth. The staff are deployed at the request of business units and the technology centres within T&I.
