Will Rio Tinto's ‘Mine of the Future’ Be a Game Changer?

Rio Tinto's decision to automate some of its iron ore mines in Western Australia's Pilbara region could be a game changer for the industry, say analysts.

Aaron Bunch | Getty Images Rio Tinto Iron Ore's Western Australian Pilbara rail network.

As miners continue to battle skill shortages, cost blowouts and stringent safety measures, Rio Tinto has embarked on a strategy to streamline its operations by using automated trucks and trains at two of its Western Australia operations.

"Rio Tinto believes that in the years to come and even today we require productivity as well as a better safety record and we have to improve our environmental footprint and for that you need a variety of technology," Rio Tinto's Head of Innovation, John McGagh, told CNBC.

As Rio Tinto showed off its “Mine of the Future” at a weekend event at its West Angelas mine, analysts agreed the shift to automation was a positive step forward for the industry.

David Lennox, Resources Analyst at Fat Prophets, says driverless trucks and trains will allow miners to better control their costs.

"Now that the technology is proven, we will likely see it rolled out across the entire sector," Lennox told CNBC.

Five Komatsu autonomous trucks are on trial at Rio Tinto’s

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[RIO-LN  Loading...      ()   ] West Angelas operation and it hopes this number will swell to 150 by 2015. It has also announced a plan to convert its entire fleet of trains to the driver-less technology by 2014.

But Research Analyst at Lime Street Capital, Andrew McLeod, believes it will take a long time for this technology to become a feature across the mining landscape.

"It will take a long time to feed through to the rest of the sector. The big miners can afford the technology but it's unlikely we will see even the mid-cap miners adopt similar types of systems," McLeod said.

No Job Losses

Analysts don't believe the move will see the sector shed jobs as union groups fear.

"Miners are likely to change the composition of their hiring, and while it's true they may shed some workers, as they won't require drivers, you will likely see a significant amount of back-end infrastructure to support the systems," Lennox said.

Despite the technological advancements, Rio Tinto doesn't appear too concerned by the possibility it may experience teething problems or an increase in system breakdowns.

"We have to develop technologies that are robust. But I would say that's not a problem that's limited to these new technologies that we are rolling out. It's the same sort of issues we are having with existing technologies that we have," Preston Ciaro, Group Executive, Technology and Innovation at Rio Tinto, said.

Lennox agrees saying once the technology is bedded down it will likely prove successful.

"The lack of human involvement in parts of our lives has generally proved to be a blessing," Lennox said.