To achieve effective digital transformation in the mining industry, there needs to be a focus on foundational systems and processes, and most importantly, putting the right capabilities in place. In a challenging market, digitization has become a business necessity as mining industry companies leverage the latest technology to improve operations to stay competitive, reduce risk and enhance operations and business performance. For example, simulation-based planning using digital automation allows mining companies to analyze their virtual environment operations and project operational performance, thus reducing time and cost during prospecting, exploration and mining operations.
Artificial intelligence and advanced analytics are applied to drive process improvements, identify and remove bottlenecks, increase asset savings and reliability, improve cost, and reduce overall EHS footprint. BHP Billiton, an Australian mining company, has deployed advanced sensors in the extraction phase to provide greater information about the availability of mineral ores, and the company states in one of its reports that there is an opportunity to predict drilling, allowing more accurate copper extraction and better processing to reduce waste. There are also digital solutions that can improve the performance of operations and mitigate risks, such as self-driving trucks and trains, as well as monitoring equipment that operates with sensors or Internet of Things technology.
Big Data, obtained through real-time monitoring of people working in mines and equipment, can provide relevant insights and translate them into strategic plans. For example, human labor effort can be monitored through wearable technologies and the extent of human-machine interaction through real-time sensors. Not to be missed is Virtual Reality and Augmented Reality technology, which are increasingly popular in the mining industry to train and hone the workforce in safely executing high-risk tasks and solving key operational problems. Indeed, experiential learning and realistic reinforcement are more effective in supporting the development of competencies and measuring impact, which enables companies digitally. Unmanned Aerial Vehicles can be used to manage inventory, survey the site, manage traffic, and maintain. 3D Printing can also provide spare parts to reduce downtime and ensure production levels are maintained.
Veritis, an American consulting firm, mentioned some considerations for mining companies to thrive in the digital future. The most important of which is the development of a sound digital strategy at the company level, clearly defining the values that will be created by digital initiatives and platforms, and taking into account all products and platforms that provide a complete solution for the entire digital mine. One consideration is the automation of processes and the digitization of assets through the deployment of a wide range of digital capabilities to automate core processes in the mining value chain.
For example, the Internet of Things and machine learning should be used to automate and improve the reliability of mining equipment and trucks. One consideration is to build plans and decision-making driven by digital data. While the direct benefits of automation and digitization are significant, greater value will only be achieved when data is used to plan, optimize and integrate activities across the value chain.
Mining companies must develop and deploy data and analytics skills as well as core data platforms and analytics tools to aggregate data across the value chain. One of the considerations towards mining companies thriving in digital transformation is to re-image the ERP and automate back-up processes. The impact of digital transformation will undoubtedly extend beyond the core mining operations to support processes and systems such as sourcing, human resources and finance. Companies must reimagine Enterprise Resource Planning with digital solutions that enable low cost of ownership and the latest user interfaces, as well as use what is called Robotic Process Automation to automate repetitive manual activities and reduce costs and errors in shared service support processes.
Finally, Vertis stated that the most important consideration is to review the impact of the digital strategy on the workforce, because the digital transformation in the mining industry will greatly affect the labor intensity of the site, so the digital mine can employ a diverse workforce with multiple skills.
In conclusion, digital transformation shows great promise for the mining industry and some call it digital mining, because it can make businesses more flexible and profitable, especially with improved decision-making and employee empowerment. Digitization will reduce geological uncertainty, market volatility and operational risk and improve health, safety and environmental impacts. The path to digital mining is not only about taking advantage of new technologies, it requires real leaders to build new models of work and make decisions based on data and diverse skills and capabilities.
But it will be a daunting task for the mining industry, which often finds itself with a dearth of digital talent or poor digital skills. Therefore, mining industry companies must employ new skills while supporting an experienced workforce to make the proper transition to digital mining and actually start creating academic programs with specific goals. We will see that the concept of digital mining exploration is linked to the development of the digital scene with all its capabilities and components, which is moving at the speed of light, and this is what we hope to see on the local ground.