Roy Hill: Harnessing AI to Maximise Operational Efficiency
Roy Hill isn’t just embracing the future with AI, but creating it, thanks to the foresight and backing of Mrs Gina Rinehart, the company’s Executive Chairman.
From the moment planning commenced for this massive mining operation, there was a steely determination to deliver the capability needed to be a trailblazer in the sector. By focussing on innovation and the use of cutting-edge technology, Roy Hill has not only developed solutions that have revolutionised its own operations but has also led the way on many fronts across the broader mining industry.
Delivering annual iron ore production capacity of more than 60 million tonnes a year from a single mine and ensuring a reliable product is delivered to markets all over the world, Roy Hill’s operations are not just vast but also highly complex. They include a mining fleet with almost 100 haul trucks (currently being converted to autonomous use), remote operated drills, advanced mineral processing facilities (including a Pilbara-first wet high-intensity magnetic separation unit extracting highly value ore from tailings material), 344km of heavy-haul rail line (with delivery of the industry’s first battery-powered locomotive due in 2024) and a purpose-built port facility. All of the above is connected to a state-of-the-art Remote Operations Centre (ROC) more than 1,200km from the Pilbara mine in the Western Australian capital, Perth.
It paints a clear picture in which precision is paramount to keeping this massive beast humming effectively and efficiently, and where leveraging the latest technologies becomes essential.
To that end, Roy Hill is harnessing the power of AI to revolutionise its daily operations. Last year, Roy Hill achieved a ground-breaking milestone, becoming the first mining company globally to develop an in-house AI Language Model, called RoyBot.
RoyBot is not just a tool, it's a game-changer, turning heads even at tech giants like Microsoft. There is no doubt embracing advances in technology will provide Roy Hill with a competitive advantage and the technology team works closely with trusted partners to accelerate the opportunities.
“We’re embracing rapid and efficient development processes which have positioned Roy Hill at the forefront of technological innovation within the mining industry,” says Kate Flanagan, Roy Hill’s Executive General Manager Information Management & Technology.
“Through the drive of Mrs Rinehart and the dedication of the Executive, Roy Hill is embracing its position as a digital innovation leader. We aim to maximise the value of our resource base through efficient and innovative mining practices, so that we can continue to underpin the economic prosperity and high living standards in Australia.”
“This is reinforced by a commitment to excellence and continuous improvement in all aspects of our operations.”
A culture of innovative thinking
Roy Hill can rightly consider itself to be at the forefront of technological innovation in the mining industry.
In recent years, the business has implemented a host of advanced automation and robotics technologies, including autonomous drilling, the world’s first interoperable autonomous haulage system and drone seeding for rehabilitation – all of which have improved operational efficiency, reduced costs and enhanced safety by minimising human exposure to hazardous environments.
In fact, across the board, agility and innovation are an integral part of company culture. From autonomous vehicles and AI, to safe and more efficient mining equipment, advancements in resources technology are seen as essential to making progress in the field.
Gerhard Veldsman, CEO for Group Operations at majority owner Hancock Prospecting, previously revealed that, from day one, Mrs Rinehart had encouraged a culture of innovative thinking and the use of leading technologies across the iron ore operation.
"Roy Hill is powered by smart people, using data-driven insights with integrated technology and systems to ensure safer operations, higher productivity and predictable execution,” he told the West Australian newspaper in 2023.
“Not only are we helping to develop and integrate advanced technologies and capabilities that keep our people safe, but we are also making our business more efficient, and demonstrating Roy Hill's progressive and forward-thinking approach.”
Among Roy Hill’s successful recent innovations was the implementation of an AI-driven system for generating and sending daily timesheets to top vendors in near-real-time. These are checked against contract agreements to provide transparency of any irregularities that may exist.
“This innovative and collaborative approach has streamlined the process, ensuring accuracy and efficiency in reporting hours and strengthening our vendor relationships – including being able to pay them quicker,” Kate continues.
“It also has the added benefit of improving the safety of everyone working on site by simply knowing exactly who is working where and when.”
Maximising operational efficiency
It’s not just with automated timesheets that AI is helping Roy Hill to reduce costs and optimise operations.
Another significant area is predictive maintenance, which sees AI and machine learning (ML) leveraged to analyse large volumes of data collected from sensors and equipment, thus identifying patterns and predicting equipment failures.
By taking such a proactive approach, Roy Hill can schedule maintenance activities before a breakdown occurs, minimising downtime and reducing maintenance costs.
AI-powered algorithms are also analysing complex datasets and variables to optimise production schedules, resource allocation and logistics, enabling Roy Hill to maximise operational efficiency, reduce waste and, ultimately, lower costs.
On the automation front, the power of AI and ML are also being harnessed to carry out a variety of repetitive and time-consuming tasks.
“By automating processes such as data entry, report generation and data analysis, Roy Hill can free up valuable human resources to focus on more strategic and value-added activities,” Kate adds.
“This not only improves productivity, but also reduces the risk of errors and enhances decision-making capabilities.”
But the most used AI-powered development at Roy Hill is RoyBot, which can help Roy Hill solve problems more effectively and drive innovation.
Following the success of the initial release, a range of new features are in the development pipeline. The latest function enables employees to upload an image taken within Roy Hill’s operation into the RoyBot chat in Microsoft Teams, where it is analysed for hazards associated with the company’s critical risks criteria. Within seconds, RoyBot provides an assessment of the current situation, as well as advice regarding potential future hazards, providing an ongoing, proactive approach to job set-up and safety management.
The power of partnerships
Always seeking ways to enhance its technological capabilities and boost operational efficiency, Roy Hill initially formed a partnership with Insight to take advantage of its skills and creative solutions.
Over the past few years, Insight’s leading-edge technologies and industry experience have not only been supporting the mining heavyweight’s digital transformation, but also improving business processes.
Through data analysis delivered by the Fortune 500 solutions integrator, Roy Hill can identify patterns, trends and anomalies in various aspects of its business, such as production, maintenance and logistics. In turn, this allows the company to make data-driven decisions that optimise processes, reduce costs and enhance overall performance.
“Insight has played a crucial role in helping Roy Hill drive better business outcomes,” comments Kate.
“By helping set up and deliver a platform to leverage data analytics and advanced technologies, Insight has enabled Roy Hill to gain a deeper understanding of its operations, leading to improved decision-making and operational efficiencies.”
Additionally, Insight has facilitated predictive analytics, enabling Roy Hill to anticipate and mitigate potential issues before they occur.
By analysing historical data and real-time information, Insight can identify early warning signs of equipment failures, production bottlenecks or supply chain disruptions – yet another example of being proactive to minimise downtime and optimise resource allocation.
Summarising, Kate says: “Insight has provided Roy Hill with a powerful tool to unlock the value of its data.”
Working with giants
It’s not just Insight lending Roy Hill a helping hand on a daily basis.
Strong vendor partnerships have been formed with various industry-leading organisations, including Microsoft, Nokia, Vocus, Databricks and Cisco, to name a few.
Kate explains: “These alliances are vital for fostering innovation, improving operational efficiency and ensuring the smooth integration of technology solutions within Roy Hill's operations.”
Working with Microsoft, Roy Hill draws on the tech giant’s immense knowledge in cloud computing and digital transformation, using Azure's strong infrastructure and services as the basis for scaling operations, securely storing and analysing data, and creating innovative applications.
Roy Hill and Microsoft are also exploring emerging technologies, using AI capabilities to drive further progress in mining.
Databricks is another partner assisting in this area, working with Roy Hill to extract the value of data through advanced analytics and ML. By using Databricks' platform, Roy Hill can analyse large amounts of data, find patterns and gain valuable insights to drive continuous improvement.
Nokia and Vocus, meanwhile, are important partners in delivering reliable and efficient communication infrastructure. Their skills in network solutions ensure uninterrupted connectivity across Roy Hill's mining sites, enabling real-time data transmission, remote monitoring and effective communication between teams. This partnership is essential to maintaining operational consistency and maximising productivity in all departments.
Finally, Cisco – a global leader in networking and cybersecurity – partners with Roy Hill to provide strong and secure network infrastructure. As a result, Roy Hill's operations are supported by dependable and resilient networking solutions, enabling seamless communication, data transfer and cybersecurity measures.
“Roy Hill has access to state-of-the-art technologies, expertise and support through our trusted partner network,” says Kate. “They have our back and are invested in our success.”
A vision for success
Kate is optimistic that Roy Hill is poised for continued growth and success over the next couple of years.
The organisation is set to remain laser-focused on optimising operations, leveraging advanced technologies and implementing innovative solutions to enhance productivity and efficiency, while prioritising safety and all-round excellence.
All this puts Roy Hill in a strong place in its mission to remain an industry leader.
“With a commitment to innovation, collaboration and continuous improvement, Roy Hill is well-positioned to navigate challenges, seize opportunities and deliver value to its stakeholders in the years ahead,” Kate concludes.
“I also think you’ll see more examples of Roy Hill leading the industry in leveraging emerging technologies to add value, particularly around AI – so watch this space.”
What’s more, Kate is unequivocal about the need for Roy Hill to monitor the continued advancement of automation and robotics to explore their potential application and gain a competitive advantage.
Further integration of AI and ML inevitably comes into this conversation, as do data analytics and visualisation tools – technologies already taking Roy Hill’s operations to the next level.
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