Autonomous Vehicle Tech and Digitization to Revolutionize Mining
The mining industry is a very interesting segment to watch out for since autonomous tech and digitization could transform it for the better.
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Successful investing and stock trading also depend on looking to the long term and near term future. The mining industry is one to watch out for in the coming years since it could be transformed, or made more efficient, by another hotly talked about industry, autonomous vehicle technology. When you think of autonomous vehicle tech, it’s the self-driving cars and the experiments by the various tech giants and cab services that come to mind. Sure, urban transportation could significantly be modified in one or two years from now, but autonomous vehicles are also being introduced to an unlikely industry - mining. In the coming years this could gradually revolutionize this very old industry, bringing about increased efficiency at lesser costs.
Autonomous Haulers and Mining Machinery Motley Fool analyst Maxx Chatsko reports that Rio Tinto ($RYO) has deployed self-driving 416-ton haulers for mining in Australia while Barrick Gold ($ABX) is using semi-autonomous haulers underground in Nevada. Chatsko believes that these investments could bring about transforming changes in the
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mining industry 10 years from now. Autonomous mining machines have already inaugurated the age of digital mining. That makes it a long term investment option.
There’s More Chatsko quotes a MIT Technology Review report that described Rio Tinto’s mining efforts. The company operates a fleet of home-sized 416-ton self-driving haulers in four mines located above the ground in northwest Australia. While the company’s employees - who oversee the operations of the mines - are located 750 miles away, the haulers communicate with rockdrilling robotic rigs for efficient operation. If that sounds like the script of a science fiction movie, there’s more to this. From 2018, self-driving trains will transport the ore gathered by these self-driving haulers to the ports located more than 100 miles away.
Improved Efficiency and Stock Price Hike If systems like these get adopted on a wider basis in mines around the world, efficiency would multiply. The key to greater automation is reliability of the equipment. Unreliability takes www.tradezero.co
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away the advantages. Rio Tinto’s machines seem to be performing flawlessly, which is why it is looking at greater automation. The increased automation can help companies save on labor and human resources while ensuring improved efficiency that brings increased earnings, greater profitability and the resultant share price hike. • Many of these autonomous mining vehicles can operate round-the-clock,
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productivity. • Company employees don’t need to be onsite and they can thereby avoid potentially hazardous situations. Companies can therefore reduce injury claims and related legal issues arising from dangerous working environments. That’s possible thanks to remote supervision. • One of the concerns with autonomous cars operating in urban environments is their interaction with careless pedestrians and unpredictable drivers. Well, no such concerns here since mines are usually situated in remote locations and there are no dangerous interactions with other humans to worry about.
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The economics of autonomous mining vehicles seem attractive.
Digitization Spreading in Mining with Tech Partners Chipping In Sure enough, other companies are also adopting this strategy of digital mining. BHP Billiton ($BLT) has deployed autonomous vehicles for iron ore mining in Australia. Suncor Energy ($SU) is also planning autonomous machinery for its Canadian oilsands which have recently been shut down due to effluent release. Barrick Gold is serious about adopting these strategies, and it has a partner in tow – Cisco Systems ($CSCO). Cisco will be developing all the software for autonomous technology including underground Wi-Fi and also a software hub to house the company’s software team. All these efforts have resulted in Barrick Gold developing the Forge digital management app to create and send job orders for its underground autonomous machines, and also monitor their progress.
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Digitization
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Investors to Ignore Chatskoquotes a source and reports that these efforts have resulted in Barrick Gold moving a further 360 tons per day in September 2017. More gains are on the way with further innovations. There are also plans for the software to be licensed to peers having subterranean operations. The company ultimately plans to lower its AISC (all-in sustaining costs) from $772 per ounce of gold in 2017 to $700 per ounce. Digitization is spreading all through the mining industry. There is a silent revolution in the making, which is why Chatsko recommends this as a worthy shot at long term investment.
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