Internet of Things World Forum Chicago John McGagh – Head of Innovation October 2014 2 October 2014 About this presentation I will address three points during our time together: 1 2 3 Our world Connectivity Our internet of “big” things ©2014, Rio Tinto, All Rights Reserved 3 October 2014 Who are we? A journey from 1873 to 2014 From To ©2014, Rio Tinto, All Rights Reserved 4 October 2014 Mining is physical, it is connected to “places” Mining is a physical activity, the ore bodies cannot be moved. This drives a locally focused self-sustaining management culture that has been very successful over time. Large mines trigger significant parallel development through towns, schools, hospitals, roads etc. This further drives the concept of self- sufficiency. ©2014, Rio Tinto, All Rights Reserved 5 October 2014 Technology enablers reduce geographic boundaries Power & cost of computer chips Cost & capacity of data storage Cloud-based systems Interconnectivity & cloud systems are interconnecting “everything”, the physical world is becoming part of the data pool Sophisticated mathematics is being developed to interpret large data sets to develop new insights Proliferation of sensors ©2014, Rio Tinto, All Rights Reserved 6 October 2014 Stepping out – our location experiences 2009 – regional 2014 - global Western Australia, the world’s first and largest integrated Iron Ore operations centre Integrated global multi commodity Processing Excellence Centre Collaboration Skills leverage Productivity Value add Exploit Big Data Distance irrelevant Human systems Advanced models Intelligent analytics Network partners ©2014, Rio Tinto, All Rights Reserved 7 October 2014 Snapshot – remote operations and autonomy ©2014, Rio Tinto, All Rights Reserved 8 September 2014 Rio Tinto and Autonomous Haulage (today*) x58 x5 x3,500 x1,000 We own and operate the world’s largest autonomous haulage fleet operating in full production mode on three mine sites Our autonomous fleets have covered ~3,900,000km hauling material in our operations (x 5 trips to moon and back) We have moved >200,000,000 tonnes using autonomous technology (~ 3,500 Sydney Harbour Bridges or 540 Empire State Buildings) We have over 1,000 Rio Tinto person years of experience operating autonomous haulage embedded in our business *Correct as of August 6 2014 ©2014, Rio Tinto, All Rights Reserved 9 October 2014 Two worlds - fixed and mobile infrastructure Mining – Mobile Concentration – Fixed ©2014, Rio Tinto, All Rights Reserved 10 October 2014 Fixed infrastructure, connected sensors Concentration Fixed infrastructure Significant capital investment Low levels of uncertainty Well instrumented Processes reacting to changes in mineral feed driven by geology Significant theoretical process models developed by academia over decades ©2014, Rio Tinto, All Rights Reserved 11 October 2014 Mobile infrastructure, machines are sensors Mining Mobile infrastructure Individual operating units High levels of uncertainty Machines individually instrumented Equipment used on board the machine Operating within a constantly changing geographic/geologic landscape ©2014, Rio Tinto, All Rights Reserved 12 October 2014 Value, frequency and use of information Typical plant High Typical mine Future mines Relative information value for decisions Low s min hr d Information time scale m y The information required to make the “correct” decision has a significant time driven value component ©2014, Rio Tinto, All Rights Reserved 13 October 2014 Mines look simple - how hard can this be? Grab the (sensor) data Turn into information Improve shorter-term decisions ©2014, Rio Tinto, All Rights Reserved 14 October 2014 Multiples of the weight of a 737 (take off weight) Thinking model - the 737 index 100 20 x107 x21 737 weighs 79 tonnes t/o x7 10 x2 x6 x2 x1 Machines commonly used in the mining industry ©2014, Rio Tinto, All Rights Reserved October 2014 15 Grasping the scale ©2014, Rio Tinto, All Rights Reserved 16 October 2014 Machines are our mobile sensor platform(s) example 32 Sensors Rio Tinto has ~900 HME trucks Useful data produced by trucks 120 Sensors ~4.9 Tb/day (fleet)* Significant value to leverage 40 Sensors * Note; 70% utilized fleet, x5 overhead wrap on raw sensor data ©2014, Rio Tinto, All Rights Reserved 17 October 2014 An integrated strategy – data is the glue • Rio Tinto Mine Automation System (MAS) − A seven year programme, partnership with University of Sydney − Embed many learnings and technologies from the defence sector • One version of the “truth” in mining − Autonomy is one component in the mine − One part of our Sense/Think/Act strategy Stitching it all together Vehicles are components in the wider complex mine landscape. Rio Tinto believes we have to integrate many mining systems to capture most value Run 2 min MAS Video ©2014, Rio Tinto, All Rights Reserved 18 October 2014 Mine Automation System (MAS) CAT - Aquila™ Vulcan™ Visualization Mine Automation System Dispatch – (i.e. Modular®) Plants – control & historian Sensors Anything, anything, anything SENSE THINK ACT ©2014, Rio Tinto, All Rights Reserved October 2014 19 Mine Automation System (MAS) ©2014, Rio Tinto, All Rights Reserved 20 October 2014 Summary I addressed three points during our time together: 1 2 3 Our world is physically connected to an ore body Connectivity provides new opportunities to improve Our internet of “big” things Fixed v/s Mobile - MAS I hope the presentation was interesting and challenging. The world is wired and the internet of “big” things is upon us. This is the end of the beginning. ©2014, Rio Tinto, All Rights Reserved Internet of Things World Forum Chicago John McGagh – Head of Innovation October 2014