MAINTAINING AGILITY IN
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MAINTAINING AGILITY IN MINING
With integrated mine, rail and port facilities, which have the capacity to deliver 55Mtpa, Roy Hill is one of the world’s major resource based operations, which will deliver enormous benefits to the broader community for years to come. Barry Fitzgerald, Chief Executive Officer, explains more
A Day in the Life of a Truckie
“R
oy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year. Headquartered in Western Australia, we are the only independent iron ore operation with significant local ownership,” advises Barry Fitzgerald, Chief Executive
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Officer of Roy Hill Holdings. The industry has suffered a difficult time of late, and one set to continue according to HSBC, which predicts that prices will likely correct further in the current quarter, seeing the benchmark price for 62% fines fall below US$60 a tonne over the first half of next year. As the single biggest player within
“Our unique and best-inclass integrated demand to supply chain operating, reporting and monitoring system ensures a holistic view across the entire organisation from mine to port” – Barry Fitzgerald, Chief Executive Officer Australia’s iron sector, Roy Hill has understandably taken measures to protect against the negative effects of any market volatility. “When we set up our business four years ago, market conditions were very different. At Roy Hill, we regularly review our business strategy and work within the parameters of the changed market environment. We act,
refocus and maintain our agility so we can adapt and respond to market changes,” Fitzgerald comments. “Our unique and best-in-class integrated demand to supply chain operating, reporting and monitoring systems ensures a holistic view across the entire organisation from mine to port. We maintain constant contact with our customers on
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The perfect partner; Knowledge, responsiveness, innovation & complete solutions
Schenck Process Australia Pty Ltd Ground Floor, 65 Epping Road, North Ryde NSW 2113, Australia T+ 61(0)2 98 86 6800 Australia Wide: 1300 724 362 sales@schenckprocess.com.au www.schenckprocess.com.au www
It is the many years of experience supporting the mining industry, especially in the Pilbara region, that positions Schenck Process to be supplier of choice; proudly delivering vibrating equipment, including integrated gates, hoppers and feeders to the Roy Hill Mine and Port. The complete performance solution included our Screenex panels to work in harmony on every Schenck Process vibrating screen. A highpoint was the Roy Hill Train Load Out. Schenck Process adopted an innovative hybrid technology for this system. The silo and structure were manufactured and delivered to site in large modules to minimise site resources and installation time. Schenck Process is extremely proud to be part of the Roy Hill project and safeguarding the future success of this operation through our continued service and support.
Roy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year
matters of product quality. “As a margin driven business, we focus on innovation and business improvement methodology to foster efficiency, effectiveness and engagement regardless of price. This discipline and drive to recruit people who understand our values of Lead, Care, Think, and Perform positions us well to weather an uncertain market.”
Embracing change Western Australia accounts for about 98% of Australia’s Economic Demonstrated Resources (EDR) of iron ore, which is around 28bn tonnes. As such, the state government plays an important role in the operations at Roy Hill. “In addition to continuing to drive our costs lower, it is imperative that both the state and commonwealth
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Roy Hill Launches Second Wave of Pink Trucks in Support of Breast Cancer Research and Awareness
Downer Proud Partner to Roy Hill Downer Mining has been supporting the Roy Hill Project since the commencement of mining on site and is proud to be continuing that successful relationship into the future. With a broad range of services from mining consultancy through to specialised blasting and tyre management, Downer provides a full and comprehensive service offering in-house. Focused on delivery of high performance and cost efficiency, Downer is able to deliver consistent results in close collaboration with our customers.
For more information go to downergroup.com
Address: Level 6, 130 Stirling Street, Perth WA 6000 Phone: 08 6212 9500
governments continue to work with also limited by the capacity of its the industry to reduce compliance leadership to thrive in a world that is costs and the regulatory burden that increasingly volatile and complex. is imposed on the sector,” Fitzgerald It is imperative that organisations continues. “Collaboration with prioritise vertical leadership other companies and engaging with development over horizontal skills government to ensure that policy development,” observes Fitzgerald. shifts occur to support future growth, expansion and investment is key.” The digital economy The compliance costs and Australia has the world’s largest regulatory burden – Western estimated reserves of iron ore with Australia has enacted 54bn tonnes, 28% of health and safety regimes the world’s estimated that apply specifically 190bn tonnes. As such, to mining workplaces, the country’s majors can which impose strict rules benefit from effectively aimed at establishing a supporting METS high level of safety and (mining equipment, carry significant penalties technology and Number of for non-compliance – services). “Increasingly, Employees at often impact the viability Roy Hill Holdings METS are seeking to of mining projects. adapt and position “The willingness to themselves as relevant embrace change, consider innovation in the digital economy. This is in design and identify modern creating opportunities for them technologies must be improved. to play a more substantive role This approach to improvement and within the value, or supply chains, innovation should be integrated into of majors,” states Fitzgerald. organisational culture. The ability “Investments by METS into research for organisations to transform is and development and data analytics
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has the potential to unlock value in the supply chain.” Indeed, supply chain development is seen by many to be key to the future of the mining industry. “Our integrated operating model has redefined how Roy Hill works day to day. Our unique approach breaks down traditional barriers by realigning everything we do according to five interdependent and interconnected systems (supply, demand, people, improvement governance), allowing us to take a holistic view of our operations,” Fitzgerald elaborates. “Supply places our maintenance teams as core business and optimises the flow of parts, contractors and Building the Roy Hill Project Time Lapse
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equipment to maximise availability and reliability. We recognise that the digital economy is offering greater opportunity to change the world of work and this has led to improvements in supply chain capability.” Driving innovation Not content to follow the crowd, Roy Hill has pioneered the use of new practices within its operations. “In a shift from standard industry practice, we have decided to ‘in-source’ our supply system – centralising our maintenance planning and engineering services then housing all supply system functions together to increase collaboration. This is a critical step in
improving the throughput relationships between our suppliers and our customers,” reveals Fitzgerald. “At Roy Hill, we have been futureproofing from the start with significant investments in technology and attracting and developing our people. With technology as a foundation of our business, we have been driving key innovations by collaborating with suppliers to stretch software and services beyond the limit of current thinking, thus providing bestpractice across the business.”
Fe iron ore of which 1.2bt is +55% Fe, enough to sustain a mine life of more than 17 years. With this in mind, Roy Hill is already looking to the future. “We are focused on reaching sustainable 55Mtpa production, and continuing to get the best results from our people and our assets every single day,” enthuses Fitzgerald. “Over the next 12 months, we will bring on another 300 employees, taking our total to around 2,000 employees.”
Sustainable production Roy Hill has a defined mineralisation of more than 2.2bt of +50%
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5 Whitham Road PERTH AIRPORT WA 6105 Tel. +61 (0)8 6242 1000 www.royhill.com.au