UPDATE: Rio Tinto, IGate Patni Partner On Technology Center
March 27 2012 - 6:55AM
Dow Jones News
Rio Tinto PLC (RIO) Tuesday opened a center in India with
engineering research firm iGate Patni that will seek to adapt
technology developed by the mining company for broader use in
different locations and for other commodities across its global
operations.
The move is part of the Anglo-Australian company's push to adopt
automated mining technology to improve the efficiency of its
operations, lower production costs and improve safety. A number of
mining companies have looked at automated mining systems, but Rio
is at the forefront with plans to roll out a fleet of driverless
trucks, trains and drill rigs in Australia's remote, iron ore-rich
Pilbara region.
Rio Tinto plans to spend $60 million-$80 million in the
partnership over five years to provide engineering research and
development services at the new center in Pune. The partnership
will aim to find practical ways of applying what is developed at
Rio's five technology centers in Australia, Canada and the U.K.
"This partnership will enable us to move our innovations from
concept stage to reality more efficiently through the work of a
dedicated team of specialized engineers," said John McGagh, Rio's
head of innovation.
The Indian operation will have about 300 employees, mainly
engineers, Rio said.
"We are eager to cross-leverage our experience in engineering
and technology deployment across diverse fields such as industrial
automation, logistics, imaging and human factors designs," said
Satish Joshi, head of engineering services at iGate Patni, the
common brand of Patni Computer Systems Ltd. (532517.BY) and
majority owner iGate Corp. (IGTE).
Rio last month said it would invest US$518 million in autonomous
trains for its rail network in Western Australia, with the first
driverless train expected to begin running in 2014 on the
1,500-kilometer network. In November, it signed an agreement to buy
at least 150 driverless trucks from Komatsu Ltd. (6301.TO) over the
next four years for its Pilbara iron ore mines, adding to the five
trucks currently being tested at one of its mines.
India provides a suitable location for Rio Tinto's technology
center because of the country's highly skilled labor pool and the
fact that the new center will be able to facilitate communication
between Rio's other centers in different timezones, a Rio
spokesperson said.
Rio Tinto reported $2 billion in sales to India in 2011 and
currently has a diamond project and an iron ore project in the
country. It also employs 850 people in India through contract work
primarily focused on legal and mining development, the Rio
spokesperson said.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
(Alex MacDonald in London and Dhany Thoppil in Bangalore
contributed to this story.)