Dig this, BHP's new nerve centre leaves no stone unturned
The rise of technology means much of the logistics and mining work on BHP's seven Pilbara mines can now be conducted by the 70 people who staff its "Integrated Remote Operations Centre" in Perth.
The centre, which will operate 24 hours a day, every day of the year, was officially launched on Tuesday by Western Australian Premier Colin Barnett and BHP iron ore boss Jimmy Wilson.
The concept is borrowed from BHP's old rival Rio Tinto, which has been controlling its iron ore mines from a remote operations centre in Perth for several years.
While the centres do not remove all jobs from the mine site, they do create significant productivity gains by allowing a complete view of things such as train scheduling and mine fleet management.
While BHP's centre is located in Perth's CBD, Rio's version is sited next to Perth Airport where it can take advantage of the higher than normal electricity connections in the airport precinct.
Gina Rinehart's Roy Hill Holdings is joining the trend, and also plans to locate its centre next to the airport.
Jimmy Wilson said he wasn't bothered that the concept was adopted from a rival company.
"I concede that Rio's ahead of us in this particular space," he told reporters. "But at the end of the day, I'm not sure that this is the only differentiator in the business."
The new centre will help BHP lift its exports out of Port Hedland to 220 million tonnes in the 2014 financial year.
A record amount of iron ore was exported from Port Hedland in the year to June 30, with companies such as BHP, Atlas Iron, Fortescue Metals Group and BC Iron exporting 288 million tonnes; about 17 per cent more than the previous year. But the 28.2 million tonnes shipped in June was slightly less than the May export result.
Frequently Asked Questions about this Article…
BHP’s Integrated Remote Operations Centre in Perth is a 24/7 control hub staffed by about 70 people that remotely manages much of the logistics and mining work for BHP’s seven Pilbara iron ore mines. It centralises tasks like train scheduling and fleet management so decisions can be made from the city rather than only at each mine site.
The centre creates significant productivity gains by providing a complete, centralised view of operations — for example train scheduling and mine fleet management — allowing tighter coordination across BHP’s Pilbara operations and more efficient use of assets.
According to the article, remote operations centres do not remove all jobs from mine sites. They change how work is done and can shift some tasks to city-based teams, but they are intended to improve productivity rather than eliminate every on-site role.
Rio Tinto has been running a remote operations centre in Perth for several years and is generally seen as ahead in this space. BHP borrowed the concept and located its centre in Perth’s CBD, while Rio’s facility sits next to Perth Airport where it benefits from higher-than-normal electricity connections.
Yes. The article notes that Rio Tinto pioneered the model in Perth and that Gina Rinehart’s Roy Hill Holdings plans to locate its remote operations centre next to the airport, joining the broader industry trend toward remote control hubs.
BHP says the new remote operations centre will help lift its exports out of Port Hedland to 220 million tonnes in the 2014 financial year.
The article reports a record amount exported from Port Hedland in the year to June 30, with companies including BHP, Atlas Iron, Fortescue Metals Group and BC Iron exporting a combined 288 million tonnes — about 17% more than the previous year. It also notes June shipments were 28.2 million tonnes, slightly less than May.
Location matters for practical reasons cited in the article: Rio’s centre near Perth Airport benefits from higher-than-normal electricity connections in the airport precinct, while BHP located its centre in the Perth CBD. Proximity to reliable power and infrastructure can support the continuous, 24/7 operation these centres require.
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