Seeing Machines to roll-out DSS to Freeport’s Safford mine in Arizona under framework deal

Seeing Machines Ltd (AIM: SEE) has been awarded a contract to supply its DSS driver monitoring equipment to Freeport-McMoRan’s (NYSE: FCX) Safford mine in Arizona, following the previously agreed framework-agreement signed in February 2010.

“We anticipate further DSS progress arising from the other DSS pilots currently underway across a variety of operators and locations throughout the 2010 calendar year, and will announce those to the market in due course".

The contract win follows the success of an earlier pilot of the DSS equipment, conducted at the Safford mine in late 2009. This second contract for the Safford mine is to complete the fit-out of the entire haul truck fleet at this mine, Seeing Machines stated.

"Following the original pilot of DSS equipment conducted at the Safford it is very pleasing to move on to complete the rollout of DSS equipment, bringing the total to 19 DSS systems, covering full operational deployment at the mine”, Seeing Machines chief executive Nick Cerneaz commented.
London-based stockbroker Daniel Stewart noted that at Safford, Freeport details 23 trucks, and the 235-ton heavy-weight scale amount to 4% of Freeport’s 600 (E) heavy truck inventory. Furthermore, this excludes the range of support vehicles for which DSS is also applicable.
With the latest deals, the DSS is now on the map and the broker expects further demand from mining and resources operators, and also from commercial fleet operators. The broker noted that mining operators are now interested in DSS to prevent expensive equipment loss, improve safety and reduce production disruption. Indeed Daniel Stewart highlighted that the DSS alarm and monitoring equipment could prevent the loss of a 500-ton, US$5m ore carrier, and a US$1m/hour disruption to mining extraction.
In February, Seeing Machines concluding a Master Purchasing Agreement (MPA) with international miner Freeport. Through the MPA framework, the companies intend to deploy the DSS technology on a mine-by-mine basis. Today’s deal marks the second agreed deployment, following the first deal for Freeport’s Grasberg mine in Indonesia.

In addition to the Freeport contracts, Seeing Machines has also had success with another major international mining group, BHP Billiton (LSE: BLT, ASX: BHP). In March, the company was awarded contracts to supply the DSS suite to Billiton subsidiaries BHP Navajo Coal Company and the San Juan Coal Company - which form part of Billiton’s Energy Coal business unit.

The DSS is an active system that directly monitors the driver of a vehicle for distraction and fatigue events and provides a series of interventions aimed at managing these events and averting potential disasters.

With a remote sensor on the dashboard, the vision-based, DSS system measures the eyelid opening of the driver and based on this data derives the drowsiness state. The DSS also monitors the driver's head movements and positioning, when the driver has not been focused on the roadway ahead for a period, the DSS-IVS detects this event and generates instant alarms including audio alerts and seat vibration feedback.

The DSS product suite also includes options to link the alerts with dispatchers and controllers located in central control rooms.  Furthermore, the integrated data management, analysis and reporting system gives fleet managers the information they need to manage their vehicles and drivers effectively, Seeing Machines said.

Last week the company announced a 3.3 million institutional fundraising, through the placing of 93.6 million new shares at 3.5p each, to accelerate the roll-out and sale of the DSS product into the mining industry.

Seeing Machines plans to invest in its sales and support presence in Australia, Africa and the Americas. The company noted that it has already identified a number of new personnel to build on its recent successes, and additionally the proceeds will be used to further develop the DSS product suite as well as provide general working capital.

http://www.proactiveinvestors.com.au/companies/news/6408/seeing-machines-to-roll-out-dss-to-freeports-safford-mine-in-arizona-under-framework-deal-6408.html