Performance
Strategy
T&I's strategy is to underpin operational excellence in the business units and to increase the contribution of technology to the Group's vision of industry leadership. T&I's objectives include:
- Working with the business units to deploy technology solutions that increase earnings.
- Developing a pipeline of valuable new investment projects.
- Positioning the Group to develop orebodies that are likely to require innovative mining solutions.
Key achievements
The Improving performance together (IPT) asset management programme that started in 2004 was instrumental in assisting Iron Ore Company of Canada in making significant improvements to its mining and ore delivery fleet performance in 2008. Production is affected in winter months by issues with reliability of mine equipment. At extremely low temperatures, most mechanical and electrical systems are stressed. In mid 2007 the T&I team working together with the IOC asset management team implemented the IPT programme to help address these reliability issues. In 2008, mine production fleet availability improved to 78 per cent from average historical levels of 75 per cent. This improvement in mine fleet performance coupled with similar improvements in the reliability of the ore delivery system contributed to improvements in production at IOC in 2008.
The Asset Management Centre Mine Monitoring and Control programme was implemented in early 2008. This includes the installation of real time, on line equipment monitoring systems. By the end of 2008, over 400 monitoring systems had been installed on haul trucks across the Group. Significant benefits are already in evidence. For example, at Rio Tinto Coal Australia Hail Creek Mine, the ability to monitor and influence the truck operators' use of the service brake is expected to save over US$250,000 annually in brake repair costs. With this same programme, Rio Tinto Iron Ore has also targeted savings in excess of US$900,000 and other business units such as KUC have been able to identify and prevent component failures. The consequence is safer operations, more productive use of equipment and lower maintenance costs.
During 2007, RTIO completed order of magnitude studies on a further expansion to 320 million tonnes per annum (Mt/a). T&I applied the IPT Strategic Production Planning (SPP) approach at RTIO, commencing in August 2007 which delivered results in March 2008. T&I, together with RTIO developed strategic scheduling and valuation models and evaluated a variety of options in order to identify the most valuable resource development sequence and mining/ processing approach, which increased the expansion base case valuation substantially. In addition, the possibility of a further potential expansion beyond 320 Mt/a was explored. The work was recognised in 2008 when the RTIO/SPP team was awarded the Terry Palmer Award, an internal Rio Tinto award, for its achievements in innovation, collaboration and contribution to the business.
The payload management initiative which is led by the IPT Mining team was instrumental in improving haul truck fleet performance at a number of the Group's mines in 2008. At the seven Pilbara Iron sites where payload management is in special focus, the average load carried by each truck has increased by more than five per cent. Also, load variability has reduced on average by more than ten per cent. Closer operation to design limits and avoidance of overloading were the basis for an additional 15 million tonnes of material movement in 2008 without risk of increased equipment damage.
