Reuters reported that miner Rio Tinto will launch a trial automated iron ore mine in November 2008, part of a plan to cut costs and allow huge expansion despite a severe labor shortage in Australia.

Mr John McGagh head of innovation said that the plan is to automate fully the test mine using high tech robotic trucks fitted with computers, lasers and advanced GPS systems. He added that "We are facing tremendous labor shortages in the Pilbara. That's why we're doing this thing."

Mr McGagh said that "Running 15 mines at 320 million tonnes is a very challenging, complex operation. You are drilling over 1.8 million blast holes a year. We have to apply technology if we want to get where we want to go."

Rio has been working on various technologies to automate mines for some years and will seek to bring them all together at the trial project at new Pit A at the West Angelas operation in the Pilbara. The first commissioning starts in November 2008 and we start ramping up over the Christmas period. The pit is due to produce 31 million tonnes of ore over 15 months.

Mr McGagh said that "We have looked at other industries that have implemented high levels of robotics and we see great efficiencies in terms of maintenance of this equipment. We are looking for significant cost savings as well."

At the trial mine, automated drills will create holes, another machine will insert explosives before robotic loaders and trucks scoop up and cart away the ore to be transported by driverless trains hundreds of km to ports on the coast.

At the Rio Tinto Institute for Mine Automation at the University of Sydney, a team of post doctoral academics are working an artificial intelligence program. The move to automated mines is not aimed at cutting jobs at current operations, but to make possible the ambitious expansion plans without additional labor.