Part of the Leaders series published with Mining Magazine • JULY 2015

Operations

Integration is pivotal
Fleet simulation, scheduling and optimisation,
and maintenance planning
Hexagon Mining

Faced with fluctuating energy costs, volatile commodity prices, and tighter profit
margins, mines must make the most of their equipment, data and people to
succeed.
Hexagon Mining believes that by integrating design,
planning and operations technologies, mines can be
safer and more productive. Fleet management is central
to this mission because it represents a huge opportunity
for mines to become safer, minimise energy consump-
tion, reduce carbon footprints and save money.
That’s why Leica Jigsaw technology is pivotal to
Hexagon Mining’s vision of smart change and an
integrated life-of-mine solution. Jigsaw is the world’s
5
most comprehensive fleet management production
optimisation and high-precision guidance solution. Now
it is aligned and integrated with Hexagon Mining’s
planning software, MineSight, and safety technology, Hexagon Mining VP
SAFEmine. So people and processes traditionally Global Services,
separated into silos are becoming connected and more Matt Desmond
productive.
Hexagon Mining has wasted little time in incorporat-
ing Jigsaw into new products HxM Blast, for precision
“Fleet manage­
drill and blast, and HxM Athena. HxM Athena is the ment represents
company’s business intelligence and business analytics a huge
tool for linking mine planners to operational informa-
tion. It complements Leica’s existing Jview Business
opportunity
Analytics suite for Operation data. Jigsaw will also be for mines to
central to the company’s LIVEmine ethos of harnessing become safer,
real-time technology to connect mine operations with
mine planning and mine safety.
minimise energy
In this chapter, we will look at the key technologies consumption,
behind fleet management; its transition from best reduce carbon
practice to standard practice; its applications in the
mining industry today; and the exciting future ahead.
footprints and
To properly assess fleet management’s direction, we save money”
first need to assess its origins and its importance.
Hexagon Mining VP Global Services, Matt Desmond, offers this perspective: “At

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the core of what we do in mining, both in open pit and underground, we manage
fleets and it’s critical to the business that we optimise those fleets and monitor
what they’re doing. So, in Hexagon Mining’s vision of a life-of-mine solution, we
see fleet management at the core of real-time production monitoring and
optimisation. Fundamentally, that is going to improve safety, productivity and,
therefore, lower the cost of mining.”
The 1970s saw the introduction of mainframe computers and true to Moore’s
Law, computing power has been doubling every two years since. Communications
technology, speed and bandwidth have increased significantly over the past 50
years. The late 1980s and early 90s saw the
“In Hexagon Mining’s development of GPS for commercial applica-
tions. Meanwhile, equipment has simultane-
vision of a life-of- ously become smaller but more robust. All of
mine solution, we see this has had a profound effect on fleet
fleet management at management in the mining industry.
Today, fleet management systems (FMS)
the core of real-time exploit advancements in computing, commu-
6
production monitoring nications and positioning technologies to help
and optimisation” optimise ore extraction and processing.
In advanced FMS systems, optimisation is
used to allocate trucks to shovels, accounting
for many variables. Remote operating centres and autonomous control systems
are becoming more common so more data is available than ever before. What was
once best practice is now standard practice. Now Hexagon Mining is working on
elevating a standard practice to a greater level of safety and product­ivity.
“Hexagon Mining is moving fleet management beyond standard practice
to what we would call mission-critical practice,” says Desmond. “So we are
integrating safety and connecting mine planning and scheduling systems to
close the loop.
“Mining is not only capital-intensive but also relies on people, and people need
information to make decisions. So it is critical that all of the information we are
capturing from the various databases on board equipment, and in the mine
planning systems, is centralised and put into a system such as HxM Athena.
The soon-to-be-released HxM Athena will pull information from a multitude of
databases and allow mines to connect information from production with planning
and scheduling.
The next step, says Desmond, is operational intelligence, “where we are actually
getting information in real time from the equipment and people working in the
field and we have the algorithms to act on it in real time.
“We are pushing the boundaries of business analytics into what we see is the
real future of operational intelligence, acting on information in real time and
creating smart change.”

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Integral to that smart change will be HxM Live Terrain, a product due for release
next year.
“When fleet management began in the 80s and 90s, we were really capturing
information about production, about hours, about grade, about material and
transactional data,” says Desmond. “What was missing from that was terrain
information because everything we do in mining is about moving terrain safely
and productively.
“Live Terrain will combine real-time “We are pushing the
terrain information, which we are boundaries of business
capturing with sensors in the field, with analytics into what we
HxM Athena, which will connect produc-
tion information with planning informa- see is the real future of
tion. Similarly, HxM Blast is connecting operational intelligence”
the drill and blast workflow between fleet
management and the drilling department and mine planning. This will improve
fragmentation, reduce the need for as much explosives, and improve the overall
process down the road, which will lower the cost of processing.”
So, how are Hexagon Mining fleet management solutions helping companies to
7
address rising capital expenditure and operating costs? Here are three examples.

1. Optimising gold production with African Barrick Gold

African Barrick Gold (ABG) contacted Hexagon Mining to address the issues of
volatile energy costs and tightening profit margins at its North Mara mine in
Tanzania. North Mara is a high-grade open-pit gold mine with a life-of-mine
estimated at 10 years, and the potential to process 8,000t/d of ore.
In September 2010, North Mara implemented the Leica Jigsaw Mine Manage-
ment Solution on 70% of its production fleet. The goal was clear: improve time
management; increase production; reduce costs.
The results surpassed ABG’s expectations.
ABG installed the solution across North Mara’s entire production fleet and, by
2012, Leica Jigsaw was at work across all three of the mine’s open-pit deposits.

Improved time management

North Mara’s scale and size presented several challenges. Production spans sever-
al large pits 15km apart. Supervisors could not be present to constantly monitor
all fleet-related activities in all of the pits.
Leica Jigsaw’s introduction reduced average collection time of the first load
truck and shovel cycle times by a third. North Mara’s hourly output of 2,000t was
boosted by an additional 450t/d. The tools used to complete this analysis satisfied
one of the major goals set by North Mara dispatch supervisors: to produce
up-to-the-minute, end-of-shift reports and loading details.

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Figure 2, below, illustrates the improvements in time management, post-training.

Figure 1: Initial operator time management report for first shovel load

Figure 2: Operator time management report post training

Increased production
Within six months of adopting the Leica Jigsaw Mine Management Solution,
North Mara mine reported a marked improvement in equipment usage and
efficiency.
Isaac Yiadom, FMS manager at ABG North Mara Mine, said the expectation had
been “that if we could increase our equipment usage, then production would also
be increased by about four times that amount”.
“This has been accomplished just by improving time management alone.”
ABG uses a variety of Leica Jigsaw’s tools, including Joptimizer. Before North
Mara mine could benefit from using Joptimizer, it was important for the mine to
understand the variables affecting production. The system had to be configured
to account for these variables. Vehicles had to be assigned to circuits, according
to Joptimizer’s results.
Previously, supervisors would appoint assignments to truck operators regardless
of their route after unloading at the dumping location. Trucks would go to their
respective dumping locations and return to where they had originally loaded the
truck.

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Using Joptimizer, trucks now dump loads at the dumping location; then receive
new assignments leading them to alternate loading units with shorter distances.
Assignment routes are shorter and more efficient. With Joptimizer, only 13 trucks
were needed to accomplish assignments, compared to 15 trucks that were
previously necessary to complete the isolated circuits. Time is saved and
productivity is increased.

Figure 3: Leica Joptimizer solution utilises 13 trucks to complete a cycle, not 15

Reduced costs
Originally, consultants created the North Mara mine design and recommended
routes to and from each location. In one project, the consultants relocated a
stockpile with an estimated 1Mt of sensitive material to a more adequate location.
The original route assigned to move the material is labelled Old Route.
After implementing Leica Jigsaw, North
Mara mining engineers ran a simulation “In one project, the
using Leica Joptimizer tools. The findings consultants relocated a
presented the Proposed New Route, as
the shortest path that yielded the best
stockpile with an estimated
output. 1Mt of sensitive material to
Operators began using the Old Route a more adequate location”
and recorded an average 21-minute travel
time between points A and B. Joptimiz-
er’s Proposed New Route cut that time by a third. The optimised route meant
increased truck productivity and significantly more output tons.

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Figure 4: Mine design to relocate 1 million tons from point A to point B

10
“We aimed for moving about 40,000t per shift, by improving on the road
network and identifying the shortest routes, thus improving productivity,” said
Yiadom. “We moved 925,000t in 18 days instead of the 25 days that were originally
planned. This means equipment that was scheduled to work for 25 days can now
do something else for seven days. These seven days are a big cost saving in terms
of equipment.”
It costs US$236 per hour to operate a dump truck at North Mara mine; about
$814 per hour to operate a Terex 170 shovel. Over 25 days using the Old Route,
ABG would have spent $965,345. Using Leica Jigsaw, and specifically Joptimizer,
ABG actually spent $663,068, saving more than $300,000.
Photo: Shutterstock

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2. Mastering data at Cobre del Mayo

In 2013, Mexico’s Cobre del Mayo (CDM) was attempting to solve common, yet
complex issues at its open-pit copper mine in southern Sonora, 21km from the
town of Alamos. That’s when the company started using Hexagon Mining’s Leica
Jigsaw fleet management solution.
The results are impressive.
First, the issues:

1. Geology
CDM produces grade-A
copper cathode, supplied as
refractory, and vein-type ore
for processing into concen-
trate. The mine is a copper
porphyry system, structurally
controlled by shear faulting
with mineralisation stockwork,
disseminated and varia- Map showing the location of CDM in Mexico
11
ble-depth ranging oxidation.
Oxidation is from the surface down to 430m, with chalcocite from 40m to 430m.
The challenge lies in two types of minerals that cannot be processed the same
way. The dominant alteration is quartz-sericite and sporadic areas with intense
argillic alterations, meaning that close control is essential in the dilution and the
selectivity of the ore.

Figure 5:
Cobre del
Mayo is
Mexico’s
third-largest
copper mine,
and is located
in southern
Sonora

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2. Fleet management
CDM’s fleet comprises the following:
• Three hydraulic shovels, Komatsu and Terex, and two retro excavators, Komatsu
and Caterpillar
• Three loaders and three high-precision first loaders
• 26 haul trucks, (twenty 789s and six 777s)
• Three drills, Sandvik, D75KS, and a high-precision dozer
• Auxiliary equipment, including dozers, graders and water trucks
• Retro excavators, which are roughly the size of the ore polygons (deposit areas).

The potential 2,000t in one polygon make a system for dilution control essential.
Photo: Shutterstock

12

3. Tracking and reporting

CDM must deal with waste in various forms, from low grade to medium and high
grade. Constant awareness of waste type is important because the loading
equipment can be working with three or more polygons simultaneously, requiring
frequent changes from truck to truck. So, like any mine, fleet management is
important to CDM. The complicated ore distribution means CDM’s teams of
operators must use the best tools to avoid dilution and improve selectivity.
However, even great systems and great tools can fall short if reliable and
accurate reporting is not part of the process. Since CDM began commercial
production in 2006, operators had compiled reports manually in the absence of
an automated reporting process. Truck operators would include their cycles from
origin to destination, and the dispatcher would capture all the information from
the operators by hand and compile them.
CDM tracked usage times and equipment delays by hand and by radio.

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Real-time alerts of delays were unavailable and receiving reliable data from the
drill operator was difficult.
Without a system to automate tracking and reporting, time management is a
challenge.

13

Leica Jigsaw technology helps Cobre del Mayo address complex ore distribution

In June 2013, Leica-Jigsaw was among six systems evaluated by CDM to help
solve these issues. After a technical economical study of Leica-Jigsaw, Micromine,
Modular, Wenco, Logimine, and Caterpillar, CDM made its decision.
“The best option was Leica Jigsaw,” said
CDM’s Dispatch Manager, Victor Rodriguez. “On October 1, 2013,
“The evaluation process was done in the form
CDM went live with
of a cost evaluation, as well as with a group of
people who visited various mines. Most of Leica-Jigsaw. On
them were in Chile and observed first-hand January 6, 2014, CDM
the Leica Jigsaw working.”
began officially logging
Less than two months later, initial hardware
and software were deployed and on October reports with Jview,
1, 2013, CDM went live with Leica-Jigsaw. On Leica-Jigsaw’s business
January 6, 2014, CDM began officially logging
intelligence suite”
reports with Jview, Leica-Jigsaw’s business
intelligence suite.
Jview converts operational machine data into usable, actionable information via
a suite of reports and dashboards that deliver a real-time view into mine opera-
tions. Jview allows decisions to be made, based on accurate data, drastically
improving site productivity practices on numerous levels.

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Paola Flores and Francisco Bustamante put Hexagon Mining’s fleet management
solution to work
14
For CDM, the core implementation time frame from first instalment to go-live
was roughly three months. Like most mines, CDM’s overriding objective is to
produce more while lowering costs. Armed with Hexagon Mining’s fleet manage-
ment solution, CDM was quickly able to increase safe mining operations and
production output, while managing cost, quality and control.

Dispatchers Francisco Bustamante and Paola Flores are Leica-certified

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The chart right shows

an average of 1,818 Average
additional tonnes per tonnage per
first hour, representing a early shift
21% increase in product­
ion for the month of
March 2015, compared
to December 2014.
“Leica Jigsaw present-
ed the strongest
technical offering, with
its flexible and robust
software all supported
with remote problem solving,” said Rodriguez. A flexible user-permits policy also
helped, said Rodriguez. The base licence permits access to all users on site.
“Although various people see the reports, and many departments contribute
information, licences were not needed for everyone so this was a benefit,” he said.
“So, as far as navigational systems, Leica Jigsaw products are the leader in the
15
field. Therefore, the solutions for the satellite navigation in the high-precision
products are the most advanced in the market. This was a decisive part for us,”
said Rodriguez.
The system installation included a room for the dispatch in the highest part of
the mine. This offered a full view of mine operations via visual controls. Three
52-inch screens were installed to display different dashboard views of the mine.
Each dispatcher was supplied with three additional 32-inch screen displays. The
smaller screens manage the roads on Jview and allow for real-time reports. The
other dispatcher handles control of the operation and production equipment,
including loaders and trucks.
Now CDM has designated maintenance dispatchers equipped with the proper
notification systems, preventing maintenance issues from draining time and
resources. Operators needing support or experiencing problems with equipment
can speak directly with maintenance or text messages from the system, thus
reducing radio-frequency demands.
CDM enjoys numerous benefits from Leica Jigsaw. The primary crusher is now
monitored in real time. Any delay generates an immediate alert, avoiding the
need for phone calls or radios, which can sometimes be unreliable. Individual
dumps in the crusher, waste, leach pads, and stockpiles are monitored and
reported on. With multiple destinations, every truck is unloading exactly where
and when it needs to be.
“Prior to partnering with Hexagon Mining Operations, it had been extremely
difficult for us to achieve precision in our extraction, given the size of our equip-
ment,” said Rodriguez. “Since the implementation, significant improvements have

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been achieved in our ore control, as can be seen in our current production
increases.”
Daily plans can also be visualised via a quality tracker in each loader. Short-term
planners load the plan in 12-hour increments so loading machines display their
hauling requirements. This is a significant improvement on the old process, which
involved marking surveyors with flags – flags that would sometimes be washed out
in the rain.
“The solution provides reliable and flexible and automatic reporting, for
production, productivity, availability, drilling information, and many other aspects
of the mine operation,” said Rodriguez. The chart below shows an increase of
19,963t from July 2014 to August 2014, representing a 9% increase in overall
production.

Implementation by
region (t/d)

16

The road hazard alert equips each truck to recognise dangerous rocks on the
road. A road hazard alert is sent, the co-ordinates are tracked via GPS, and a signal
is sent to the graders who immediately know when and where they are needed.
“In contrast to the past, we now
have real availability metrics on all
equipment, and when equipment
goes down, the operator pushes
one button and reports it to the
maintenance people, who may be
out for maintenance somewhere
but can react quickly and re-
spond, effectively while minimis-
ing lost time,” said Rodriguez.
CDM has seen great benefits in
time management. The chart left
shows an average decrease of
Statistical comparison between manual 35% on time-consuming, yet
control in 2013 and Jigsaw in 2014 crucial activities, such as fuelling,

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shift changes, and food services. Before the system, the average time required for
truck haul was 2.6 hours, compared to 1.7 now.
CDM now monitors the authorisations of each worker and ensures only author-
ised personnel operate the machinery. Information on their ability and authorisa-
tion to operate equipment is stored and retrieved in real time, ensuring safety and
efficiency.
CDM is implementing automatic shift changes to remove the paper reports
generated by operators. Soon, employees will simply use a CS screen to know
which truck they will be operating that day, and which mode of transport will get
them to the pit.
“This will eliminate paper reporting and will greatly improve the process, as we
eliminate some 12 or 15 reports that we did by hand,” said Rodriguez. “That’s
great for us. We will use that time for doing other things.”
The chart below shows the July and August improvements in time saved on
daily shift changes, after Leica Jigsaw implementation and staff training.
Delay in
shift change
(minutes) 17

The new software helps CDM deal with its data. “Because with Hexagon Mining
Operations, with the Leica Jigsaw tool, I simply make a simple filter from Day 1 to
Day 30 and I have all the information from the dispatch I need,” said Rodriguez.

Pictured in Cobre
del Mayo’s
dispatch centre:
Carlos Favela,
Paola Flores,
Angelica Almada,
Victor Rodriguez,
and Francisco
Bustamante

All images courtesy Cobre del Mayo

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3. Jigsaw transforms data into knowledge at Pueblo Viejo

The Pueblo Viejo gold mine, in the Dominican Republic, is a joint venture between
Barrick Gold and Gold Corp., which own 60% and 40%, respectively. The mine is
operated by Barrick Gold and 2013 was the mine’s first full year of production.
Efficient fleet management and production optimisation is a priority.
Photo: Leica Geosystems

18

Leica Jigsaw makes sense of the data deluge, helping mine staff to solve
problems in near-real time

Pueblo Viejo purchased the entire suite of Leica Jigsaw software in January
2011, and is running Jmineops, Jview, and Jhealth. In the pit it has implemented
Jtruck, and J²guidance for high precision on shovels/loading units, production
blast drills, dozers and track dozers.
“One of the biggest benefits of the Jmineops system is the amount of data it
captures,” said Shane Boak, former FMS administrator at Barrick Gold.
“Everything that’s happening in the pit, in the mining environment, whether it be
time-based information, where the material is being picked up, where it’s getting
dumped, who’s operating the equipment, how fast it’s going, or what’s happening
with the engine.”
In addition to Jmineops, Leica’s complementary software modules and hard-
ware components provide more precise measurement, enhanced operations
logic, and wider ranges of equipment usage in run-of-mine (ROM) processes. The
Universal Hardware Platform (UHP) also allows numerous OEM independent
interfacing options and integration potential for further equipment diagnostics,
maintenance, and life-cycle management all within the same system.
“We’re using these tools to pull all this information together so we can make
more informed decisions,” said Boak. “We’re keeping trucks running longer and

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faster, optimising our production and better managing risks.”

Jview is then utilised to expand data collection and information management
into knowledge. This improves processes, production efficiency and management
decisions, all of which helps the mine stay on budget and achieve or exceed goals.
“It’s all recorded and this is where the BI tools come in really handy to come
back and analyse all of this information and use it to make more informed deci-
sions,” said Boak. “We can then improve our use of the FMS and our processes
based on past performance and benchmarking results with goals.”
Jview scales data and focuses the content. Information delivery is tailored
to many levels of user and data consumer, from mine fleet dispatchers up to
managers and analysts. The standard report suite combines dashboards for
near-realtime information, static reports for common daily and operational
reports, dynamic reports for common longer-term analysis, and OLAP database
cubes for ad-hoc reporting and in-depth analysis. Standard functionality is
available out of the box. The platform is extensible and content is easily expanded
and modified so you can own and interact with the data.
“Jview makes it easy to draft a report, show the manager, get feedback and
then redesign the report to come up with the customised information requested,”
19
said Boak. “We use these systems in a lot of areas. One recent project was looking
at visualising the information. A table of data is one thing and we needed different
perspectives. Putting it into a visual context and then manipulating the scenario,
we can see how the data relates and gives a lot of benefit, a lot faster.”
Applying diagnostics information together with production events provides vital
insight. This is where detailed historical information from the FMS on operators’
working hours, cycle times and travelling speeds is extremely valuable. With
high-sample-rate GPS data, actual speeds and equipment orientation can be
determined before and after an incident. When played back, the equipment path
and activity can be reviewed.
Photo: iStockphoto.com/Jason Bennee

Leica Jmineops allows mines to track vehicles in explicit detail, helping to reduce
idle time, fuel burn, engine hours and tyre wear

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“Accidents on the mine site are the last thing anyone wants, but when they do
happen, it is important to analyse what was happening in the lead-up to the
event,” said Boak. “Jmineops combined with Jhealth and use of conditional virtual
alarms, operational sensor context and snapshots, make it possible to determine
use of brakes, gear selection, and engine throttle position, giving you a ‘black
box’-type analysis around many situations.”
Data from Jmineops’ general equipment time utilisation and availability can also
be analysed to identify areas of improvement in planning. This allows for transpar-
ent decisions by management, shift supervisors, and maintenance crews concern-
ing equipment use, rotation and requirements throughout operations. Tracking
these details to reduce idle time, fuel burn, engine hours, tyre wear and other
metrics increases efficiency and saves time and money.

The Hexagon advantage

The mining industry is on the cusp of a profound change, and Hexagon Mining is
leading the transformation. Built on the wider foundation of Hexagon AB, a
leading global provider of information technologies, Hexagon Mining is well
positioned to turn tomorrow’s trends into today’s
20 “We are really solutions: neural networks and artificial intelligence,
starting to see operational intelligence and business analytics,
some of the things remote operating centres, autonomous machines,
we only dreamed nano-technology and virtual reality, advanced sensor
fusion, open standards, plus the rise of point clouds,
about 20 or 30 UAVs and laser scanners – these are all technological
years ago coming advances within Hexagon’s grasp. Their applications
for Hexagon Mining clients excite Desmond.
to fruition” “We have spent the last several years working
closely with our customer base to educate them about
Hexagon and the life-of-mine strategy,” said Desmond. “It has taken off with the
formation of Hexagon Mining and the combination of these great technologies.
This has really closed the loop with our customers.”

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Contributor biographies

Hexagon Mining
Faced with rising energy costs and tighter profit margins,
companies are turning to Hexagon Mining for solutions.
Hexagon Mining unites the innovative technologies of Devex
Mining, Leica Geosystems Mining, MineSight and SAFEmine. It
seamlessly links mine planning, design, fleet and production
management, optimisation, fatigue monitoring, and collision
avoidance software for a comprehensive flow of data across all
operations. Hexagon Mining will focus on business intelligence
and business analytics, (BI/BA) identifying non-productive time.
By analysing such information and feeding it back into
MineSight’s planning and operational programs, customers can
plan and schedule around real-time information coming from
their mine.
Essential to Hexagon Mining’s solutions is safety. SAFEmine is
the global benchmark for solutions that prevent mining
accidents. More than 20,000 mining vehicles in 45 mines
worldwide are equipped with SAFEmine’s Collision Avoidance
Systems (CAS). Now SAFEmine has launched FatigueMonitor,
32
which is integrated with CAS.
Website: hexagonmining.com

Marcelo Romero
FMS Product Manager
Marcelo Romero oversees integration of the Leica Jigsaw fleet
management solution with Hexagon Mining’s other
technologies, MineSight, SmartMine UG, and SAFEmine.
Marcelo joined the Tucson, Arizona office of Leica
Geosystems Mining in July 2014, bringing more than 15 years’
fleet management experience. Previously, he was an account
manager for Mexico and the United States, a machine guidance
specialist, a global technical expert engineer for health
maintenance solutions in the US, and deployment and support
engineer in Chile. His goal is to help create a life-of-mine fleet
management solution, incorporating shovels, trucks, auxiliary
equipment, and office applications. Marcelo has an electronics
engineering degree with a major in automation from Federico
Santa Maria Technical University in Chile.

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