After a major increases to its ore reserves late last week, Rio Tinto Limited (ASX: RIO) is reportedly looking to introduce driverless trains in its Pilbara mine sites in efforts to improve safety, reduce downtime, and cut costs.
Fairfax media reported this morning that Rio conducted its first successful trial of driverless trains at its Pilbara mines in December of 2014.
In addition to developing driverless trains, Rio already employs 57 driverless trucks, and is pioneering automated drilling at its Hunter Valley and West Angeles operations among others.
The focus on automation, despite a high initial investment, should theoretically save Rio a lot of money over the years as efficiency improvements pay big dividends.
While also reducing the potential for human error, automated machines are purportedly safer, cheaper to run, and have less downtime (due to operator handovers, among other things) than human-operated equipment.
In addition as machinery requires no lunch breaks, no food, showers, or accommodation (not to mention no rest), Rio might find itself saving extra money on its services contracts in addition to improvements in efficiency and machine up-time.
Rio said (as quoted in Fairfax media) that its 'effective utilisation' of autonomous trucks in the Hope Downs 4 iron mine was 14% better than its best human-staffed mine in the Pilbara, and 13% cheaper to run.
With another 500+ people employed to run the iron ore trains, there is the potential for further big savings when automated trains enter full service.
BHP Billiton Limited (ASX: BHP) is also working on improving automation at its sites, but it is some way behind Rio thanks to a later start and a diversified focus on other minerals in addition to iron ore.
Nevertheless both companies are slashing costs and boosting production, and it will be interesting to see where the iron ore market goes from here.
