5 March 2020
Conrad Steyn, Executive Partner, Mineral Resource, Energy and Industrial Sectors, iOCO
From improved safety, to improved productivity and improved operations, technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) have been promoted as game-changers in the sector for many years.
While mining is still seen as a largely `analogue’ business, the reality is that mines started their digital transformation journeys a long time ago. The mining industry has been deploying programmable logic controller (PLC) and supervisory control and data acquisition (SCADA) systems for industrial processes and automation for years. However, these systems were not designed to communicate with each other or within a larger system, leaving gaps in mines’ ability to leverage the benefits of machine connectivity.
Conrad Steyn, Executive Partner, Mineral Resource, Energy and Industrial Sectors, iOCO points out that while digitisation is an ongoing exercise for mines, many mining operations still have a way to go on their digital transformation journey. “Digital transformation is about reimagining the business. It’s about using technology to re-envision process, culture, customer experience, and employee experience. We tend to get stuck in the conversations about the technology, and do not put enough focus on what the technology should be achieving,” he says.
“For example, blockchain has become a technology many companies are looking at to improve financial operations. If there is a good use case for mines to use blockchain to improve cashflow or transfers across borders, that should be the focus of the conversation.”
He adds that many mines are implementing and experimenting with new technologies, but in many instances, it’s still difficult to prove a business case. “There are a number of POCs being done, a lot of development, but there is still a long way to go, for a number of reasons. This is not a world where there can be assumed that there is communication available, because we may be talking about operations kilometres underground. That’s coming, but it’s a limitation right now.”
Another limitation is the fragmented nature of the business of mining. Operating across different countries and geographies, mining companies are unable to create a common strategy, thus having to find different solutions for specific needs.
In addition, the structure of the business poses challenges. “The question is often who owns the digital transformation projects. Is it the CDO? The CIO? Structure plays a big role in transformation initiatives, and there needs to be buy-in across the organisation. For example, the mine manager has the power to stop any new projects in their tracks, so he has to be an integral part of the process,” Steyn says.
“That being said, digital transformation is here. It’s happening. Safety has been one of the biggest drivers in the mining sector, with new technologies ensuring that there are fewer injuries, and mining companies are also enjoying productivity boosts from their technology implementations.”
According to Steyn, mining is essentially a big logistics exercise. It’s about getting people to the rock face, and bringing the minerals and people back. “Using technology to get the people there quicker, and making the operation safer, allows mines to be more productive while using the same number of people,” he says.
“Mines need to focus on the value chain to get the full benefits of digital transformation. Few companies have the luxury of a greenfield design, so all of their initiatives should be using open and agnostic tools to make sure everything is connected. In many cases, suppliers are promoting their own platforms, which are essentially their view of the world. Open and agnostic tools will ensure that adding tools and technologies to the environment is simpler.”
Steyn points out that as mines continue to invest in digital transformation, there is a new area for them to focus on: security. “As everything becomes more interconnected, there is a new level of risk that must be taken into consideration. Security must become a core part of any digital transformation initiative,” he concludes.
Comments
Hi dear collaborators, I am happy to belong to this working group. I am a Consultant in Mining Governance and Management of Protected Areas in Central Africa.
+243995081117
yannickrajabu@gmail.com
Hi Conrad,
You make several very good points, which if you don't mind, I'll summarise as:
Digital transformation has been promoted in mining for many years but has struggled to gain traction due to:
I agree with every point. The key question now, is how to we achieve this during and after a pandemic? I think that the easiest prediction to make for mining in a post pandemic world is that there will be a much much greater uptake of digital technologies. In particular, those technologies enabling remote operations and automation, in order to reduce people on the ground and increase remote working, much of which can be done from home when necessary.
We have the necessary technical tools (technologies, systems and processes) and so I think the biggest challenge will be the shortage of expertise to make the transformation. This is exacerbated by the lack of open interoperability, leading to the need for brute force systems integration. So rather than spend any time sharpening the innovation axe (eg. by working on better ways to architect and connect systems and data), I'm pretty sure there here will be an absolute scramble to duplicate what the leaders have already been doing in remote operations and automation. The leaders will also be constrained on expanding on their initial successes by having to fight for expertise, since their best people will be headhunted.
Best regards - and I hope you and your family are well. We've weathered the initial storm in Au, so good luck in RSA
Colin Farrelly https://www.linkedin.com/in/colinf/
Good Day Conrad,
Thanks for a very insightfull post.
At Ya Batho we focus on providing the much needed communication link between the underground operations and the management on surface. We have developed wired and wireless communication solutions that provide a highway for data. This includes camera, VOiP, PDS, corporate networks, leaky feeder, BLE wearables and machine data. Reliable connectivity right upto the face.
I would like to share more information with you, please connect with me on Linkedin or send me an email.
Looking forward to your reply.
Best regards,
Dick Myburgh
Dick@yabatho.co.za
Hello Conrad,
I completely agree with you, for this reason, at ExaMine we have developed the right software to improve safety of large mine operations by combining Artificial Intelligence and Satellite Images.
I invite you to connect with me on LinkedIn and check out the blog post that I have posted here.