Jose Moschioni, ABB Mining Sweden, 2016 ABB Mine to Market How to improve efficiency and safety. ABB Group February 19, 2016 Slide 1

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1 Jose Moschioni, ABB Mining Sweden, 2016 ABB Mine to Market How to improve efficiency and safety February 19, 2016 Slide 1

2 The mining industry today Main challenges Four key mining industry requirements Productivity Safety Environment sustainability Reliability Mechanization Automation Optimization Standardization of processes Mechanization means dramatic shifts in production capabilities Operation of equipment still requires human interaction Integrated modeling and planning for higher quality yield Greater visibility into parts of the value chain More detailed information coming from equipment and plant to enable remote mining More responsive demand and supply Higher level of automation driven by labor shortages and remote mining locations Limiting bottlenecks by adopting more continuous processes High levels of visibility across the value chain and between operations ABB

3 Next level mining attractive changes moving forward Mines of the future will have people further away from processes Reduce cost, increase productivity, and safety by remote monitoring, diagnostics and interventions equipment closer to processes Move automation and electricity to where the ore is extracted, minimize haulage, and transport The old way Remote monitoring of equipment, preventive maintenance The old way Underground electricals and autonomous equipment enabled by integrated operations from pit to port, fully automated, and remotely controlled Key features of future mining operations Limited human presence in production area Continuous production and mechanical excavation Central control room Collaboration of systems, people and equipment ABB

4 The future of mining extended automation Bringing things, services and people together Analyze Plan Schedule Monitor Automate Communicate Control Sense Sales / Contracts Corporate headquarters Minerals / Metals price volatility Electrification Mine Ore feeder Concentrator Concentrate transport Smelter Transmission & Distribution E-houses MCC & Drives Drilling, charging Loading and transport Crushing and blasting Ore hoist Grinding and feeding Flotation Thickening Filtering Dryer Furnace Converter

5 ABB integrated mine automation and electrification Mine Operation Center Substations GIS Substations Transformer E-Houses MCC & Drives Communication network Wired & wireless Supervision IP Telephony, video Asset & people tracking Mine ventilation Mobile assets Stockyard management Hoisting systems (SIL 3 compliant) Water handling Drainage system Water pumps Remote monitoring Production reporting Work order mgmt. Crushing and conveying Loading pockets Crushers Feeders Conveyors February 19, 2016 Slide 5

6 Integrated Mine Operation Mine operation center Production management Fleet management Energy management Asset Management Asset & personnel tracking Video and voice Commuication network Process control Tele-remote control Access control

7 ABB MineInsight Logical structure 3:rd party mine planning server Mine engineer Shift manager client MineInsight Server Scheduling & dispatch client Vehicle data logger Mine operator Vehicle client MineInsight TM Shift manager Machine operator

8 ABB MineInsight Value proposition Maximize equipment availability by moving from reactive to predictive maintenance. Achieve production targets and produce to plan by reducing variability and improving responsiveness to unplanned activities and disturbances. Maximize production flow from face, through blast cycle activities and crushing and haulage to surface. Track and control ore inventory for maximal flow and optimal grade. Increase operation awareness for all personnel of the current mine status. Source: A pragmatic approach to mine automation, ABB Mining Conference Cape Town, 2013 "Estimated to increase production capacity with 10-20% with same resources" February 19, 2016 Slide 8

9 ABB Smart Ventilation NRC Study: Energy consumption by mining activities AVG total consumption of 10 mines = 90.4 kwh / tonne ore hoisted, 44,3 kw in ventilation Ref: 2005, Natural Resources Canada, Benchmarking the Energy Consumption of Canadian Underground Bulk Mines February 19, 2016 Slide 9

10 ABB Smart Ventilation Complete solution with Ventilation On Demand functionality Improved air quality by providing fresh air where needed Energy savings up to 30-50% per year Efficient use of the ventilation system - delay investment in current infrastructure due to mine expansion The solution is fully integrated into system 800xA and highly modularized. Easy to maintain and expand, reduces costs and improves avaliability Standard 800xA engineering tools makes it easy to adapt to specific customer requirements Safe operation - system wide data are propagated to local controllers to ensure proper control in non-network situations Investment can be done in stages February 19, 2016 Slide 10

11 ABB Mine Location Intelligence Global Tracking System Positioning >350 Access Points in the mine Global Location Tracking Information from any global location tracking system can be used by ABB Smart ventilation to generate presencedriven ventilation demand calculation This can be used instead of, or in combination with, the Local vehicle tracking instrumentation ABB Mine Location intelligence system Provides a complete location based decision system adapted to underground mines Reuse of your existing data/telecom solution into a technology agnostic RTLS solution ABB Smart ventilation integration provides an efficient way of configuration and maintaining ventilation zones February 19, 2016 Slide 11

12 Process and Power Integration Boliden Garpenberg The Boliden Group operates mines and smelters in Sweden, Finland, Norway and Ireland. Boliden has a total of approximately 4,900 employees and a turnover of 40 SEK billion. Project details: New concentration plant and new underground facilities Production started in Feb Full production in end of 2015 CAPEX ~580 MUSD trough 4 years Profitable investment with robust financials Productivity increases to high levels The ramping up of production at Garpenberg continued according to plan and by the end of the Q4 2015, the annual production rate in milled volume totaled 2.5 M tones Production cost per tone of ore decreased by approx. 25% On budget and on time Source: Boliden February 19, 2016 Slide 12

13 Process and Power Integration Boliden Mineral Garpenberg 2.5 High level of productivity Zinc Underground mines 2014 Source: Boliden February 19, 2016 Slide 13

14 Production in focus Integrations Integrations Stop reporting Maintenance system Operator notebook An Using integrated, one system, unified and efficient the user operator in the environment center Documents Drawings The base the process control system 800xA Process displays History & Trends Alarms and Events February 19, 2016 Slide 14

15 Process and Power Integration Boliden Mineral Garpenberg 2.5 ABB delivery as preferred supplier: Grinding mill drive solution. Mine hoist complete solution. Automation of concentrator plant Automation of underground crushers, conveyors and loading station. Mine ventilation solution ventilation-on-demand Motors & drives. ABB 800xA control system: 18 Operator and 3 Engineering workplaces; 10 remote clients; Mobile PDA clients based on remote clients Almost 130 AC800M controllers (17 for concentrator;12 for underground; 100 for mine ventilation) Electrical integration from HV, MV to LV Device integration with Profibus & HART Asset optimization and CMMS integration (Maximo) Integration with Boliden document system ABB has together with Boliden developed the functionality of automation concept February 19, 2016 Slide 15

16 ABB Mine to Market Securing the future of mining ABB portfolio provides visibility and optimization across the total value chain ABB products and systems will drive fundamental change in the way a mining enterprise works, creating dramatic increases in Process productivity Predictability of operations Asset reliability Energy efficiency Health, safety Protection of the environment

17 February 19, 2016 Slide 17

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