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What I will talk about
© 2017 Boliden GroupNovember 20174
Part 1: Mine Automation
1. Why Volvo autonomous Trucks are like Kinder Eggs
2. Charging Robots
Part 2: Digital Strategy
3. Why we can’t se the sun because of all the clouds
4. Pictures of my grandchild
Whyinnovate?
© 2017 Boliden GroupNovember 20175
Key drivers for innovation in Sweden
High labour costs
Strict environmental regulations
Low tolerance for work related injuries
Mine Automation- The short story
© 2017 Boliden GroupNovember 20176
The Mine Automation Program is a prioritized cross
functional research program hosted by the
Technology Department.
The main goals are to improve
• Productivity and Utilization
• Mine safety
What’s the problem?
© 2017 Boliden GroupNovember 20177
The face utilization (the bottleneck) today in a Boliden underground mine is typical 25%.
In open pit is utilization up to 80%, but the economical impact of small improvements are large.
Reason
Blast ventilation, machine breakdowns, shift changes, lunch breaks and travel time within mine
reduce face utilization.
The complex sequencing of mine operation combined with a variable environment challenges
optimization of production.
Solution
Mine Automation makes it possible to run the underground mine 24/7 and enhance the face
utilization. Open pit mines and underground can optimize machine utilization.
Improved Productivity
© 2017 Boliden GroupNovember 201710
Productivity can be improved on many levels and
the first 2 we are familiar with
• Better performance on unit level
• Optimization on system level
Now we can add a third level
• The combination of IoT and Big Data
1
2
3
Better Performance on unit level- Volvo claims:
50% cost reduction on transports
© 2017 Boliden GroupNovember 201711
1
Transport cost today:
1/3 Labour cost
1/3 Fuel
1/3 Capex etc.
50% cost reduction is quite a lot given the fact that the labour
cost for the driver is 33% Volvos calculation is based on lower
fuel consumption, higher payload with no cabin and less
maintenance needed.
Optimization on System level
© 2017 Boliden GroupNovember 201713
2
Imagine a remotely controlled wheel loader, loading an autonomous truck when the mine is empty due to blasting. A good example on how to improve the utilization on both the machines as well as on the production faces.
3D mapping
© 2017 Boliden GroupNovember 201716
Yes it is a lot of data...
But you will gain a new level of control
The mine as a Factory running 24/7
© 2017 Boliden GroupNovember 201717
The question is:
What to automate?
4a. Inspection/Clean up4b. Loading
3. Blasting
7. Bolting 1. Drilling
2. Charging
5a. Scaling
5b. Clean up
6. Shotcrete
Activities in a
cut and fill mine
November 2017© 2017 Boliden Group
18
Technology readiness for the machines- our subjective view
© 2017 Boliden GroupNovember 201719
<=4 5 6 7 8 9
1. Tunnel Drill Rig
2. Stope Drill
3. Open Pit Drill
4. Charging
5. Loader not mixed traffic
6. Scaler
7. Shotcrete
8. Bolter
9. Haul not mixed traffic
Mine automation today
© 2017 Boliden GroupNovember 201720
1. > 2500 Access Points underground (4 mines in Sweden)
2. IP telephony
3. Messaging services
4. 3D Wi-Fi positioning
5. VOD (ABB) in 2 mines
6. 2 mines with Sandvik Automine Lite
7. Volvo testing Autonomous Trucks
8. Volvo testing remotely controlled wheel loader
9. Ericsson Testing 5G
10. A lot of projects with Atlas Copco autodrill etc
11. A lot of projects with ABB
12. Gamification project
13. Remote Scaling
14. And more …
Latency Fördröjning (lagg)
Network Slices Säkrad kvalité och prestanda
Energy Performance Energieffektivitet
Cost Kostnad
Our Partners
© 2017 Boliden GroupNovember 201726
Our partners are the key to success. When you look at our
roadmap, never forget that it is our partners that are doing the
bigger part of the investment.
Part 2: Digital Strategy
3 Why we can’t se the sun because of all the clouds
4 Pictures of my grandchild
© 2017 Boliden GroupNovember 201736
Chalmers IoT Report
© 2017 Boliden GroupNovember 201737
Six out of the seven companies stated that IoT will somehow better the
relationship between them and the customer. Boliden is the exception to this,
…. For them the main interest in implementing IoT is the optimization of
production.
A stable customer!
© 2017 Boliden GroupNovember 201738
0
500
1 000
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2 000
2 500
3 000
3 500
4 000
4 500
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 2013 2014 2015 2016 2017
MSEK
EBIT ex PIR and production
R4Q EBIT excl PIR, Group R4Q Ore production, Aitik
R4Q Ore production, Tara R4Q Cu feed, Rönnskär
R4Q Zn feed, Kokkola
ktonnes/ktonnesx10 (Aitik)
• Recurring investments stable
• Service and spare parts stable
• Project contracts are large and volatile
• Committed suppliers in good and bad times
Conclusion I
© 2017 Boliden GroupNovember 201740
Boliden:
• Is a Customer
• Have no digitalization strategy
The Digitalization DilemmaOR the potential service provider dilemma everybody talks about
© 2017 Boliden GroupNovember 201744
Push Pull
Boliden strategy
© 2017 Boliden GroupNovember 201748
• We own all data
• All data should be open
• Always one integration point for
data inside our intranet
Improved Productivity
© 2017 Boliden GroupNovember 201749
Productivity can be improved on many levels and
the first 2 we are familiar with
• Better performance on unit level
• Optimization on system level
Now we can add a third level
• The combination of IoT and Big Data
1
2
3
Open data is a must
© 2017 Boliden GroupNovember 201754
”We’re going to see more change in the next five to ten years than we’ve seen in the
last 50”
Mary Barra, CEO General Motors
Summary
© 2017 Boliden GroupNovember 201755
• The value will be created on 3 levels
• Electrification and Automation goes hand in hand
• IoT - team up with your competitors
• The speed of change will accelerate
November 201758
Thank you!
Boliden Mine Automation Program
For more information please contact [email protected]