Giuseppe Di Marco, ABB: Automation technologies - key for integrated mine to port solutions

Automation technologiesKey to integrated mine to port operations

Guiseppe di Marco, President ABB in Mining, 6th Americas Iron Ore Conference, Rio de Janeiro, 12 Nov 2013

© ABB GroupNovember 11, 2013 | Slide 2

A global leader in power and automation technologiesLeading market positions in main businesses

§ 145,000 employees in about 100countries

§ $39 billion in revenue (2012)

§ Formed in 1988 merger of Swiss andSwedish engineering companies

§ Predecessors founded in 1883 and1891

§ Publicly owned company with headoffice in Switzerland

How ABB is organizedFive global divisions


PowerProducts

PowerSystems

DiscreteAutomationand Motion

ProcessAutomation

$10.7 billion36,000

employees

$7.9 billion20,000

employees

$9.4 billion29,000

employees

$8.2 billion27,000

employees(2012 revenues)

Low VoltageProducts

$6.6 billion31,000

employees

§ Electricals, automation, controlsand instrumentation for powergeneration and industrialprocesses

§ Power transmission

§ Distribution solutions

§ Low-voltage products

§ Motors and drives

§ Intelligent building systems

§ Robots and robot systems

§ Services to improve customersproductivity and reliability

§ ABB’s portfolio covers:


Power and automation are all around usYou will find ABB technology…

crossing oceans and on the sea bed,

orbiting the earth and working beneath it,

on the trains we ride and in the facilitiesthat process our water,

in the fields that grow our crops andpacking the food we eat,

in the plants that generate our power andin our homes, offices and factories


Ground-breaking and nation-building projectsPushing the boundaries of technology

Longest undergroundpower link

Longest and highestcapacity power link

Longest underwaterpower link

Largest gearless milldrive (for crushing ore)

Largest SVCinstallation

Most remote offshorewind farm linked to grid

First platform connectedto mainland grid

Europe’s largestthermal solarpower plant

First commercialwave power plant

First 600 kVpower link

Longest conveyor belt

Substation in world’stallest building

Power and automationof largest chemicalcellulose plant

Automation of largestalumina plant

Largest battery

Mine hoist forlargest potash mine

Largest reverse-osmosisdesalination plant

Largest SCADAnetwork


Innovation is key to ABB’s competitive advantageLeadership built on consistent R&D investment

§ More than $1.4 billion invested annually in R&D§ 8,000 scientists and engineers§ Collaboration with 70 universities

§ MIT (US), Tsinghua (China), KTH Royal Institute ofTechnology (Sweden), Indian Institute of Technology (NewDelhi), ETH (Switzerland), Karlsruhe (Germany), AGHUniversity of Science and Technology (Poland)

© ABB GroupNovember 11, 2013 | Ver. 1.1 Slide 7

Content

§ Introduction

§ ABB’s system approach - iron ore value chain

§ ABB Ventyx solution suite

§ Integration of information und operation technology

§ Conclusions

IntroductionIron ore value chain


ABB in miningKey facts

§ Offers comprehensive market-leading packages of ABB competencies,products and services for the complete production chain in mining andmineral processing industries

§ Combines global and local ABB competencies and resources to ensureoptimum service

§ About 3000 employees in 35 operating countries

§ > 60 complete plant electrification systems

§ > 120 gearless mill drive systems

§ > 300 belt conveyor solutions

§ > 600 mine hoist systems

§ > Automation for all the above

The top challenges for global mining companies


Source: 2012Mining ExecutiveInsights Ventyxsurvey

Iron ore market hasbecome more volatileand short-term oriented

Reserves in remote areaswith a lack of infrastructureand political andenvironmental risksrequest rising CAPEX

Labour is more costly,energy costs are going upand volatile prices putpressure on margins andcash flow

The bottom line: How to continue to deliver high returns to shareholders


Iron ore value chainFrom mine to market

Exploration,assessment

Planning,scheduling

Drill and blast Load andhaul

Processing

Shiploading

Stockyardload out

Railtransportation

Trainunloading

Stockyardblending

Achieve overall optimization of quantity and quality of suppliedmaterial, eliminate suboptimized islands

Integrated Automation

§ Should provide all data required to manage the valuechain at all times along the whole production process

§ Should supply a consequential sequential effect analysison the entire process when one of the items within thatprocess defaults or gets changed

§ should permit immediate remedial actions to maintain therequired level of productivity and plant availability at alltimes.

§ Should promote collaboration along the whole ProductionProcess

§ Should permit Remote Operations favouring the un-manning (less people underground) and un-trucking(truckless) of Mines


ABB system approachIron ore value chain


Iron ore processing portfolio (1 of 2)ABB integrates solutions …

Beneficiation TransportationMining

Electrification and automation withSpecial mining drive solutionsGearless conveyor drivesDouble drum & friction hoistsIncl. brake systems & shaftsElectric UGM trucks, ventilation on demandPower generation, conversion& distribution

Integrated electrification, automation, control, instrumentation, drives & CPM solutions

Gearless mill drives (GMD)Ring-geared mill drives (RMD)High pressure grinding rolls (HPGR)applications – variable-speed drivePlant infrastructure & optimization

Services

Rolling stock & rail networksConveyor systemsLoading and unloading facilitiesStockyard managementCollaborative production management

Flotation / Separation

Screening

Ball mill

SAG mill

Railway systems

Slurry pipeline

Belt conveyor systemsCrushing

Mine hoists

Stockyard systems

Belt conveyors

Shovels

Fleet management

Inpit crushing

Stockyard systemsStockyard mgt system


Iron ore processing portfolio (2 of 2)… to optimize productivity and efficiency

Terminal Melt shopPelletizing

Electrification / automationVariable speed drivesPower distributionProcess control &optimizationInstrumentationCollaborative productionmanagement

Integrated Electrification, Automation, Instrumentation & Drive Solutions

Conveyor systemsUnmanned operation of S/RStockpile managementQuality managementLogistics and sales management

Compressor drivesPower distributionEx protection equipmentProcess, safety controlInstrumentation, valvesCollaborative productionmanagement

Balling, induration

Grinding

Dewatering, filtering

Blast furnace

Electric arc furnaceTrain loading/unloading

Blending

Ship loader / unloader

DRI

Gas supply

Direct reduction

Hot briquetting

Furnace transformersStatic Var compensationPower distributionHV/MV substationsRectiformersDC/AC furnace electrificationMetalurgical steerers & breaks

ServicesIntegrated electrification, automation, control, instrumentation, drives & CPM solutions

ABB road map - strategyHollistic view to information

Drill rigs Truck/fleetmanagement Crusher Benefication Pelletizing Stockyard Terminal

Control system Control system Control system Control system Control system Control system

Shovel

Control system

Electrical powerdistribution

Control system

One operation

”Set points” Real time data

Production Work Material People FinanceAssetsDesign

Production plan Asset availability Real time report Status on-line

Control, monitor in real time

Optimize based on plan and demand

Demand

Control system


Enabling collaboration and integrated decision making


ABB portfolioExtended automationSystem 800xA

Extended Automation System 800xAIntegration: One common automation platform

Benefits include§ Efficient engineering§ Organization of information§ Shared data§ Data that comes from various sources can be accessed

by multiple applications without separate interfaces!

Control room

Control system

Control

Process

Protection &control IEDs

Promoting collaborationIntegration of process and power automation

Controller

Plant network

Controller

Profibus/Profinet

Substation automation

Process control server

IEC 61850

Process and power workplaces

Instruments

LV switchgear,drives, motorstarters

Process electrificationProcess instrumentation

Plant-wide sequence ofevents for better rootcause analysis

Same operations interfaceand engineering for sharedinformation and knowledge

Centralized historianand data archiving

CentralizedHistorian andData Archiving

Common, integratedasset managementstrategy

Electrical integrationbased on open standardssuch as IEC 61850,Profinet/Profibus…

Common systemtherefore reduced spareparts, training etc…

Standardized procedures,settings, control logic and

libraries

Standardized procedures,settings, control logic andlibraries


Integration of automation and electrical devicesOne system approach

800xA based integrated sub systemsMain process and power control

Drive systems forgrinding

Automatic stockpileloading, unloadingtransport

ECS, ISA-95, OPC…

System servers

Extended operatorworkplace

WirelesscommunicationHigh integrity control

safety shutdownfire and gasAC800 M

process controller

Operation, engineering& Ventyx maintenance

Processoptimization

Ventyx productionmanagement

HeadquarterERP and business systems

Firewallrouter

Sub system controllerAC800 M

Corporate network

Automation system networkMobile / remote operation

engineering and maintenance


ABB Ventyx solution suiteMining

ABB - Ventyx solution suite

800xA - Process Control

Geological, mine plan,mine operations Ore & metal processing Product handling

& transport Shipping & sales

MineScape – Geologicalmodeling, mine planning,mine operations

CCLAS – Production quality and laboratory management

Ventyx Production Accounting – Mass balance & reporting

MineMarket – Product logistics and sales

Ellipse - Asset and work management


MineScape: geologic modelingCreating a 3D map of the ore body


MineScape: mine plan and scheduleDecisions support for optimal mine operations


Ventyx Production AccountingConsolidate information: one single auditable version of the truth

Financial management system (e.g. ERP)

Mass, KPIs, metal content, inventories

Wet tons, volume, assay, mass, moisture, density, transaction, shift, day, week, monthWet tons, volume, assay, mass, moisture, density, transaction, shift, day, week, month

Metal accounting business processMetal accounting business process

Acquire Validate Authorize Calculate Report Publish Analyse Audit


MineMarket: inventory managementKnow where and which material you have in the value chain


MineMarket: ship loading and unloadingEnsure optimal ship loading according to market demandand enterprise capacity


MineMarket: sales and marketingAutomatically generate correct invoices and certificates


MineMarketVisualize logistics through the value chain



ABB and Ventyx joint valueIT/OT case studies

Grinding optimizationVariable-speed drives and advanced process control

Value proposition§ Variable-speed mill drives enable real

time mill speed optimization for highergrinding efficiency

Technology§ Combine variable-speed drive and

advanced process control to increasegrinding process performance

§ Mill fill “indicators” as key measurement

Benefits§ More production§ Higher energy efficiency§ Longer liner lifetime


Use case Advanced Process Control in grindingInventory management & APC for optimal ore grinding


Concentrator operationsLeveraging IT/OT convergence

The old way

§ Production, equipmentand other controlsystems not integrated

§ No information onrelative product pricing

§ No information on feedmaterial

§ Plant set points static

Value propositionIncrease plant recoveryand optimize product mixbased on current pricingand ore feed propertiesthrough leveraging APCacross processes andbusiness systems

(OT)Advanced processcontrol (APC)manages blending,grinding, flotation inreal-time

(IT)Geological model andreal-time materialtracking providesshort term feedcharacteristicschedule to APC

(OT)Advanced processcontrol (APC) usesthe information toincrease performanceand quality in real-time

(IT)Sales systemperiodically providesrelative pricingupdates to APC

(OT)APC refines controlset points tomaximize recoveryand energy efficiencyfor current feedmaterial and productpricing

(OT)Online analyzers andblending algorithmsreconcile actual feedwith qualityspecifications for betterpredictability


Example: Stockyard managementManless operation, blending and material tracking

Value proposition§ Fully automatic stacking/reclaiming§ Material tracking and blending with

3D online visualization§ Task scheduling

Technology§ Laser scanner and GPS based

control (BulkExpertTM)§ Microsoft technology for visualisation

Benefits§ Less personnel§ Higher efficiency and throughput§ Lower wear and maintenance efforts


Stockyard operationsLeveraging IT/OT convergence

The old way

§ Production, equipmentand other controlsystems not integrated

§ No exact information onmaterial distribution byquality and location

§ No synchronizationbetween train and shiplogistics

§ stockyard set pointsstatic

Value proposition

Increase stockyardthroughput with optimizedproduct mix based oncontract demands andmine output

(IT)3D modelling with realtime reconcilations by3D –laserscanners

(OT)Task scheduling tosynchronize train andship logistics

(IT)Sales systemperiodically providescontracting updatesto stockyardManagement

(OT)Stockyardmanagement refinescontrol set points forblending algorithmand routing pathselection

(OT)Online analyzerintegration andmaterial trackingproviding real-timedata


(OT/IT)ore blending torequested qualitybased on qualitymanagement and pilevisualisation


Integration of Ventyx Ellipse in 800xA workplaceMaintenance information available in real time


Conclusions

ABB’s integrated mine operating modelIT and OT enable collaboration and optimization

Monitor & control

Collaborate


ABB TechnologiesMine enterprise management from mine to port


Giuseppe Di Marco, ABB: Automation technologies - key for integrated mine to port solutions

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