New BHP miners give tunnels the shaft
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 that staff its "Integrated Remote Operations Centre" in Perth.
The centre, which will operate 24 hours a day, was officially launched on Tuesday by West 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 like train scheduling and mine fleet management.
While BHP's centre is located in Perth's central business district, Rio's version is sited next to Perth Airport, where it can take advantage of the higher than usual 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.
Mr Wilson said he wasn't bothered that the concept had been adopted from a rival company.
"I concede that Rio's ahead of us in this particular space," he told reporters at the launch of the centre on Tuesday.
"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 increase exports from 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 is a Perth-based control hub that uses technology to manage much of the logistics and mining work for BHP’s seven Pilbara mines. Staffed by about 70 people and operating 24 hours a day, the centre lets operators work remotely — in some cases more than 1,000 kilometres from the mine sites.
Remote operations centres create significant productivity gains by giving a complete view of operations such as train scheduling and mine fleet management. That wider visibility helps coordinate logistics more efficiently without eliminating all on-site roles, according to the article.
Yes. BHP says the new centre will help increase exports from Port Hedland to 220 million tonnes in the 2014 financial year, supporting the company’s ability to boost shipments through improved operational coordination.
The concept was borrowed from Rio Tinto, which has been controlling its iron ore mines from a Perth remote operations centre for several years. Rio’s centre is located next to Perth Airport (taking advantage of higher electricity connections there), and BHP’s iron ore boss Jimmy Wilson conceded that Rio is ahead in this space.
Yes. The article notes that Rio Tinto already operates a remote centre and that Gina Rinehart’s Roy Hill Holdings is joining the trend, planning to locate its centre next to the airport as well.
Remote centres do not remove all jobs from mine sites. While they move many logistics and control roles to centralized hubs, the article emphasizes that on-site jobs remain and the centres are intended to improve productivity rather than eliminate every site role.
For the year to June 30, a record amount of iron ore was exported from Port Hedland: about 288 million tonnes in total from companies including BHP, Atlas Iron, Fortescue Metals Group and BC Iron — approximately 17% more than the previous year. Monthly shipments in June were 28.2 million tonnes, slightly down on May.
For investors, the trend shows major miners are using technology to drive operational efficiency and support higher export capacity. While remote centres can be a competitive advantage, BHP’s Jimmy Wilson warned they aren’t the only differentiator in the business — so investors should view them as one piece of a broader operational and strategic picture.
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