Hancock Iron Ore’s smart mine of the future

Mining is entering a new era where AI is transforming how decisions are made, risks are managed and operations are optimised.

By Hancock Iron Ore chief technology and information officer Kate Flanagan

Imagine a world where artificial intelligence (AI) helps maintenance engineers anticipate equipment failures before they happen, where microscopic rail defects can be identified automatically, and where massive datasets can be analysed in seconds to support faster and safer decisions.

At Hancock Iron Ore, that is not a future concept – it is happening now.

While many organisations are still exploring what AI could mean for their business, our executive chairman Mrs Gina Rinehart AO made it clear very early on that we should lean into the opportunity.

That direction encouraged us to start experimenting with AI across our operations several years ago, focusing on where it could genuinely improve safety, efficiency and decision making.

Everything we do in this space is grounded in value. We are not pursuing AI for the sake of technology; every initiative is tied to a clear operational outcome, whether that is improving safety, increasing reliability, lifting throughput or supporting better decisions.

Building our own capability

One of the biggest differences in our approach has been building capability inside the business rather than relying entirely on external tools.

In early 2023 we established a dedicated digital innovation team and supported it with structured investment and governance. The team works closely with operational and engineering teams across the business to identify real problems where AI can make a practical difference.

Since then, we have expanded this technology focus with established AI resources embedded in the maintenance and operational teams on site.

Mining is a complex environment with its own language, systems and operational realities. Developing capability internally has allowed us to design solutions around our operations, our data, our workflows and the needs of the people using them.

The team quickly began delivering outcomes. One of the first was the development of our own in-house AI language model, making Hancock Iron Ore the first mining company globally to deploy one internally.

That platform became RoyBot, a secure AI tool built specifically for our companies. RoyBot connects to our internal systems and allows employees to search documents, analyse reports, retrieve production data and access operational insights far more quickly than before.

It has become an everyday productivity tool across the business and has helped lift efficiency, safety and decision-making across multiple teams. The work behind RoyBot also attracted the attention of Microsoft’s global AI specialists and went on to win the 2024 Australian Business Award for Best AI Innovation.

Beyond RoyBot, our technology and digital innovation teams have been working closely with operations to embed AI directly into how we run the business. AI is now embedded across safety, maintenance, daily operations and planning at Hancock Iron Ore.

Computer vision models are detecting rail and train wheel defects with far more accuracy, measuring sizer-teeth wear and estimating stockpile volumes from drone imagery. Predictive maintenance is being rolled out on rotating equipment to help anticipate failures before they occur.

In the process plant, models such as CrusherIQ, DeviationManagerX, BlendManagerX and our short-term regressions suite are helping optimise operational parameters in real time, improving yield, product quality and throughput.

Bringing our people with us

Technology alone does not create transformation – people do. We know rapid advances in technology can create uncertainty, so we have been clear from the beginning: AI is about giving our teams better tools to do their jobs.

When used well, AI removes repetitive tasks, accelerates analysis and provides insights faster, allowing our people to focus on judgement, problem-solving and teamwork, and improving how we run our operations.

To support this, Mrs Rinehart requested we introduce an internal AI literacy and capability program to help employees build practical skills and confidence in using AI.

The program follows a belt structure inspired by Six Sigma methodology, from white belt to black belt, providing a structured pathway for employees to develop capability. Participants move from foundational understanding through to applying AI techniques and tools to help real operations.

Engagement across the business has been strong, with more than 1050 employees already completing the white belt level and many progressing through the higher levels. Importantly, the program focuses on practical application, helping teams identify where AI can improve safety, efficiency and decision-making in their day-to-day work.

We have also placed strong emphasis on responsible use. Clear governance, ethical guardrails and leadership oversight help to ensure AI is deployed safely and appropriately across the organisation.

Mrs Rinehart earlier requested we encourage employees to put forward ideas where AI could be used productively, and this year we also launched an AI and Automation Shark Tank, a company-wide initiative where employees pitch ideas directly to senior leadership, with the opportunity to have their concepts trialled and, if appropriate, developed. More exciting ideas have already emerged.

Some of the best ideas come from the people closest to the work, so creating a pathway for those ideas to be surfaced and supported has been an important part of how we approach innovation.

Innovation has long been part of Hancock Iron Ore’s story.

From autonomous haul trucks and robotic drilling to integrated systems that help us better understand and manage our ore body, we have consistently adopted technology that improves safety and productivity.

And AI is a further step in that journey.

For us, AI is not just about efficiency; it is about improving teamwork and building a safer, smarter, future-ready operation, one where technology supports more helpful and faster information, enabling our people to make better decisions and continuously improve how we run the business, always with a clear focus on maintaining that our company is the best mining company to work for. AM