Home-grown Solutions: Catching Up in Automation Adoption
Leveraging local research and development to address Arizonian and global industry challenges
Environmental commitments agreed upon by previous Conference of the Parties’ (COP) stakeholders and UN agencies, such as net-zero carbon by 2050, are gathering pace. As regards mining, meeting these will require surface and underground equipment fleets to transition to hybrid or fossil fuel free solutions to reduce reliance on diesel. In recent years, the southwestern US has seen a high volume of deals between original equipment manufacturers (OEMs) and mining companies seeking to switch to battery electric solutions and autonomous fleets. In that quest, companies in Arizona can rely on the homegrown skills and technologies found amongst the state’s service companies. State capital Tucson counts among the fastest growing technology workforces in the US, and the state is home to several R&D facilities of some of the largest equipment manufacturers, making it an epicenter for innovation as North American mining firms scramble to catch up with their Australian and South American counterparts.
Shifting gears in automation
Much like the rest of the US, Arizona has lagged behind other global key mining jurisdictions on the automation front. A February 2022 survey of global mining sites by GlobalData showed that, following a similar trend since 2018, Australia led technological penetration rates in major markets, with the Americas arriving fifth behind Europe, Middle East, Africa and Asia.
“Traditionally, within political and philosophical reflections in the U.S., we have looked negatively at the mining community. Now, that 'not in my backyard' syndrome seems to be changing. There appears to be an enlightening of the general population that everything there is in the house comes either from a farm or a mine.”
Eric Ownby, Regional Business Development Manager, Ames Construction
Things finally seem to be moving in 2022. Producers and developers have begun introducing autonomous fleets and solutions particularly useful for the efficiency, safety and sustainability of their underground mining sites and projects. Arizona is home to several underground mines and projects - from Energy Fuels’ Pinyon Plain, Freeport’s Bagdad, to the proposed Resolution Copper mine – where inflows of water and high rock temperatures can make excavation dangerous, reinforcing the need for autonomous haulage. Service providers’ expertise will be in high demand to dig ever deeper to meet the need for minerals. On 20 September, Stantec was awarded a US$16 million feasibility study contract to provide technical engineering at Resolution Copper. The proposed underground mine would leverage automation to operate at depths of up to 2,100 m and temperatures above 70 degrees C. Eagle Mountain CEO Tim Mason explained some benefits of leveraging autonomous fleets to reduce the Oracle Ridge underground copper mine’s carbon footprint: “Having an electrical fleet allows for reduced emissions underground, which then also reduces the amount of ventilation required inside the mine.”
Dozens of past-producing mines that are currently being put back into production will also drive demand for engineering firms’ expertise. Currently, a core focus of Arizona’s mining industry is on modernizing existing infrastructure, and engineering firms are key to meeting the technological challenge of switching to automated equipment and electric mobility. Caltrol, a leading provider of automation, is helping some of Arizona’s older mines to upgrade. Speaking of the developments that will drive its growth, Scott Bedell, Caltrol president, explained: “One of the trends is modernizing existing automation infrastructure. The West Coast is also leading the country in innovation around the energy transition, the transition to electric vehicles, and other alternative processes. We are partnering with leading companies to help automate their innovations”
High-tech geospatial engineering provider Darling Geomatics also saw innovation-related services at past-producing properties drive growth: “A lot of our recent work has involved using our 3D scanners to give the owners a very accurate 3D model of their assets so they can retrofit and upgrade all the components that are part of the start-up process,” explained Jon Heidmann, 3D scanning project manager at Darling Geomatics.
“The pandemic and mobility restriction accelerated the need for digitalization to connect, operate, and implement outcomes and solutions. One of the solutions Honeywell offers is remote operation settings where we provide the capability for our clients to consolidate their workforce in centralized locations across a remote site or multiple sites.”
Darren Wyllie, Americas Director, Honeywell
Leveraging the state’s assets
Several world-leading equipment constructors and service providers have chosen the Arizona desert to grow technology and innovative designs to be used by the state’s thriving producers and explorers. This is partly due to the benefits of being close to major mines, but also for R&D facilities to be able to leverage the state’s abundant solar and wind force to create power. Caterpillar chose the Sonoran Desert as a testing ground for its innovative large mining equipment at its Tucson Proving Ground (TPG). Leading equipment manufacturer Komatsu chose Sahuarita, north of Tucson, as a home base to focus its research and development efforts to carry out the testing of its innovative autonomous haul vehicles. The Arizona-grown FrontRunner Autonomous Haulage System (AHS) now operates worldwide. Innovation-focused company Honeywell saw increased interest in implementing a remote operations center and automation solutions in Arizona, as explained by Americas director Darren Wyllie: “Not just in Arizona itself, but in many regions, we are seeing more interest from our clients about implementing remote operation centers (…) Part of our vision is to look how we can support the trend of autonomous mining to improve the productivity and safety of operations.”
The trend of transitioning towards autonomous requires powerful communication and connectivity tools. Introduced to the Arizonian market in 2019, Starlink, a constellation of satellites in Low Earth Orbit (LOE), appears to be an answer for the lack of affordable and omnipresent cable connections at remote mining sites in the southwest that are necessary to enable teleoperation and autonomous operations. Clayton Thayer, business development manager at KP Exploration, an Arizona-based company that owns and operates RC and diamond core drill rigs, expanded: “KP Exploration utilizes a Starlink system at each of our project locations and an electronic app to stay in touch real-time with our exploration crews. The Starlink system allows our remote crews to always be in touch with emergency services. We believe it is a safety requirement."
“The reason why mines are currently reopening is because we have a critical shortage of certain minerals that are necessary for electric vehicles, solar power, wind power, and more broadly with goals that have to do with climate change.”
Mary Darling, CEO and Principal Owner, Darling Geomatics
Converging engineering expertise and digital capabilities
In a context of inflationary pressures and greater scrutiny from shareholders, process optimization is as crucial as ever for mining operations. Understanding this challenge, engineering firms continue to invest in innovation to achieve this. Bob Hoey, president at CAID Industries, whose main customer is Freeport McMoran, Arizona’s biggest copper producer, explained: “We have supported Freeport with large automation projects in Tyrone, NM, and Sierrita, AZ. Projects like these (…) often bring a very attractive ROI due to labor savings and increased throughput.”
Emerging technologies add value to engineering firms’ services throughout the full life cycle of mining projects. In Arizona particularly, where majors have been at the forefront of driving further production plans in 2022 (Freeport McMoran is in the process of releasing a PFS at its Bagdad operation, and Arizona Sonoran completed its PFS in July 2022 for the Cactus copper project), technology is an opportunity to optimize engineering studies. By taking autonomous vehicles, advanced analytics and digital tools into consideration at the earlier stage of projects, engineers can safeguard firms from the risk of running mines with outdated technology when the asset comes into production. Construction engineering firm Stantec covers the full life cycle of mining: “We are assisting a client with a PFS to expand its open pit (…) and assisting a major copper producer from small engineering studies to full EPCM execution,” said Paul Stockburger, sector leader of strategic pursuits at Stantec.
Besides boosting production efficiency and enhancing financial output, investing in technology also means investing in worker safety. According to Deloitte consultants, mining companies are increasingly relying on contractors to create the next generation of integrated predictive safety systems. As the trend of remote mining gradually gains importance in Arizona, engineering firms increasingly rely on emerging technologies to carry out occupationally hazardous work from a distance. Jon Heidmann, 3D scanning project manager at Darling Geomatics, provided an example: “With a laser scanner, I was able to scan and model the large overhead cranes that are right next to the roof of the flotation building without having to climb a ladder to get there. This is an example of being able to capture something without having to get close to a dangerous situation.”
“Typically, we find that our design/build projects that integrate new technologies and machinery transform a dangerous and labor-intensive process to become not only far safer, but also more efficient and economical.”
Bob Hoey, President, CAID Industries
Mine closure and reclamation stages are under more scrutiny than ever before. Several mining sites throughout Arizona are currently in the reclamation phase, with some open pits remaining hazardous. Besides that, water shortages and arid desert land make ecological restoration crucial to community and wildlife affected by mining. Operators are proactively taking stock of those dynamics.
As ESG now tops key business risks for mining companies, the latter are turning towards engineers that offer “greener” versions of mining components and that can help reduce their environmental footprint. This is particularly the case for scope 1 and 2 emissions – the first two categories of greenhouse gas emissions used by the accounting tool Greenhouse Gas (GHG) Protocol – as the power consumption of extracting and refining metals along with electricity purchases contribute to most mining firms’ carbon heavy footprints. Ausenco currently carries out EPCM work at Hudbay’s Rosemont project, and according to the director of minerals and metals, Jim Norine: “We have recently committed to growing our efforts in Arizona by hiring someone dedicated to supervising our ESG practices. Hudbay will be able to produce finished copper without ever transporting their concentrate to a smelter, which is crucial from an environmental standpoint.”
Dams and tailings continue to present both technical and reputational engineering risks. As put by Eric Ownby, regional business development manager at Ames Construction: “Finding mining engineers focused on tailings is very difficult right now, because of the level of accountability that comes with it. Lots of companies will not touch such a project, because the risk associated with working with tailings is too high.”
No longer considered the “waste can” of mining operations, tailings are now at the forefront of mining firms’ considerations, and service providers see an increase in the demand for their mine waste services. The Global Industry Standard on Tailings Management (GISTM) is a driver towards reducing harm to people and the environment. But like other key initiatives seen throughout the mining life cycle, the GISTM and the evolution of tailings management also expose a generational challenge for the mining industry; that of finding the right expertise. As put by Stantec vice-president of power and dams Jason Hedien: “The GISTM also exposed the talent gap when it comes to tailings engineers. How academia trains the next set of engineers is going to be critical for GISTM implementation.”