Contractors
Providing automated solutions to the US industry
As we have seen throughout this report, constructing a mine in Western US is no easy feat. The shift towards energy independence, coupled with recent policy shifts aimed at reducing reliance on foreign sources, has created urgency around accelerating mining projects into production. However, the retirement wave among skilled workers over the next five years could leave a significant workforce gap, stressing the importance of operational efficiency with limited resources. As inflation drives mining costs up, firms are squeezed to maximize efficiency.
The firms responsible for mine construction face additional challenges due to unique conditions in the US, explained Gareth Sheppard, chief operating officer at Master Drilling: “The US mining industry tends to offer shorter-term contracts, often just for one or two holes at a time. This is different from other regions where longer-term contracts of a year or more are common, providing better planning and stability. This difference impacts the sustainability and planning of mining operations.”
There is no doubt that long term contracts provide greater benefits: “long-term relationships allow us to understand our clients, their employees, and their operations in greater detail. Familiarity helps us address their sustainability goals and operational challenges more effectively, making us a valuable partner in their long-term success” expanded Dagny Odell, owner of Practical Mining.
However, the US mining industry favors shorter-term contracts due to economic, regulatory and operational challenges. US mining firms prioritize flexibility to adapt to volatile commodity prices and stringent environmental regulations, which can disrupt projects. Short-term contracts allow companies to manage capital risk by avoiding prolonged financial commitments and focusing on specific project milestones. Labor shortages and high turnover in the industry make it difficult to maintain long-term commitments, while short-term agreements shift financial and operational risks onto contractors. These challenges increasingly drive contractors toward adopting automation as a solution.
Automation is becoming a necessary investment, particularly in the US and Canada, where clients—especially large-scale operators—are recognizing its long-term benefits, noted Eric Smith, managing director of Cementation Americas, a firm serving both regions. “Both US and Canadian clients, particularly larger ones, demand high levels of sophistication from contractors and understand that new technology may require upfront investment but yields long-term payoffs.”
The payoffs of autonomous technology are indeed substantial, said Darrell White, group executive – Americas at Thiess: “Autonomous technology is a significant focus as it increases efficiency, leading to lower consumption of diesel and, ultimately, fewer emissions. It also reduces safety risks for workers during drilling and blasting activities and when operating machinery. We are increasingly seeing mines trialing and adopting autonomous technologies.”
Mining Magazine Intelligence’s Automation Report provides tangible evidence of these benefits. One study found that a Caterpillar automated truck model drove a 30% improvement in productivity, reduced operating costs by 73%, and significantly lowered emissions. Epiroc’s automated drill trial further illustrated automation’s advantages, with equipment utilization rising from 45-50% to 80%, alongside a 30% increase in productivity. In addition, automated loaders showed a 24% reduction in operating costs, with daily tons per loader increasing by 23%, and loader utilization rising to more than 22 hours/day due to automation. These compelling results of automation are driving market growth, with projections indicating the mining automation sector could expand from US$2.2 billion in 2017 to US$4 billion by 2026, as reported by Statista.
Underground automation
Connectivity has historically been a significant bottleneck in automating underground mining operations. Traditional communication systems, such as Wi-Fi, often struggled with the complex and evolving layouts of underground mines, leading to unreliable connections and limited coverage. This unreliability hindered the deployment of automation technologies that require consistent and robust communication networks. “Fortunately, underground internet connectivity is becoming increasingly common, facilitating data flow and timely responses,” said Smith.
Advanced communication technologies, especially 4.9G/LTE and 5G networks, are beginning to resolve these issues by providing improved coverage, higher data transfer rates, and lower latency, all of which make these technologies more suitable for demanding underground environments. This shift is enabling innovations in underground automation.
Lok Home, president of Robbins, said: “Our goal is to automate machines and reduce the number of people needed underground, aiming to minimize human presence per kilometer or meter of tunnel.”
The machines he is referring to are Tunnel Boring Machines (TBMs), which can be three to four times quicker at tunnel creation than the traditional drill and blast alternative, honed Home, a company that invented TBMs for civil industry but is adapting this technology to mining. “These machines offer several advantages: enhanced safety, reduced underground workforce, and TBMs act as primary crushers opening better options for efficient rock transport. The rock comes away from the tunnel face already crushed, ready to be conveyed up shafts or vertical conveyor belts.”
Automation continues to expand within the industry, with companies like Small Mine Development benefiting from the technology. “We employ autonomous mucking and computerized long-hole drilling, where machines execute engineered drill plans. Face drilling is becoming more automated with these systems although human input remains crucial due to varying geological conditions,” said Keith Jones, the general manager.
While automation can reduce the need for human intervention, the technology still relies on human oversight for accountability and safety, as Smith explained: “While the machines make more autonomous decisions, each one still operates under human supervision for accountability and safety.”
The remote control enabled by automation has been beneficial in the raise boring space said Sheppard: “This allows us to remotely control equipment from the surface or anywhere in the world, provided there is adequate internet connectivity.”
Collaboration between contractors and OEMs is essential in delivering automation benefits. “We rely heavily on the latest equipment technology from OEMs and dealer partners for specialized support. A prime example is our Komatsu mining fleet we recently procured in Arizona, equipped with the iVolve system. This system provides real-time production data, enhancing operational efficiency, safety and maintenance monitoring remotely from our Indiana office,” said Keaton Turner, founder, president and CEO of Turner Mining.
Adoption
Autonomous technology adoption is poised to grow in North America. White predicts: “We see a tremendous opportunity for autonomous technology adoption in both North and South America. The South American market is more mature, with more functioning autonomous installations, and almost all OEMs and technology providers operate on the continent. North America has been lagging somewhat in adopting autonomous technologies, but we are seeing mines transforming into the autonomous space.”
Automation efforts in other markets have paved the way for the US, as Jon Torpy, general manager and president at Epiroc USA, observed: “Technology has matured, and companies better understand its business benefits, making adoption easier. US companies are increasingly ready to embrace automation, especially in the last two to three years, having observed and learned from automation's evolution in Australia.”
By integrating automation, the industry can offset workforce challenges, control rising operational costs, and enhance safety. As the US mining sector continues to embrace automation, it can anticipate improved productivity and a more sustainable approach to resource extraction.
Article header image courtesy of Idaho Strategic Resources