Mining Journal > Finance > Rio Tinto to invest US518M in driverless trains

Rio Tinto said US$518 million will be invested in driverless trains for Pilbara iron ore rail network in Western Australia, to create the world's first automated long-distance heavy-haul rail network, helping the company to meet its expansion targets.

Rio Tinto, which will invest US$478 of the total, said the first driverless train will be launched in 2014 with the AutoHaul automated train programme scheduled for completion a year later. It plans to use about 150 driverless trucks.

Rio Tinto’s chief executive Australia and Iron Ore Sam Walsh said: "Automation will help us meet our expansion targets in a safe, more efficient and cost-effective way.”

The company runs 41 trains from mines to ports, comprising 148 locomotives and 9,400 iron ore cars, on its 1,500 km rail network. Rio Tinto said automating the trains will allow it to expand Pilbara production capacity without the need for a substantial investment in additional trains.

"Automation also helps us address the significant skills shortage facing the industry, providing a valuable opportunity to improve productivity. However, as we expand our business we will see an overall increase in job numbers and this will provide new opportunities in the rail division and elsewhere.  As always, we will engage directly with those affected as we gradually make the transition to automation over the next three years," said Mr Walsh.

However, the move has prompted concerns from the Construction, Forestry, Mining and Energy Workers' Union that workers will lose their jobs.

Rio Tinto said the automation is also expected to increase flexibility in train scheduling and more efficient fuel use, resulting in lower energy costs and a reduction of carbon dioxide emissions for each tonne of iron ore produced.

The overall expansion of the rail operations is subject to state government and other approvals.

Earlier this month, Rio Tinto said a further US$3.4 billion (Rio Tinto's share $2.9 billion) will be spent on expanding its Pilbara iron-ore operations. It has full approval for its plans to lift capacity to 283Mt/y in the second half of 2013, from the current 225Mt/y, and could potentially raise capacity to 353Mt/y in 2015.