MINING IN FOCUS
Although 3D viewing is far from the top of the agenda for
digitalising the mining industry, 27% of companies that
responded the WWDX in the Mining Maturity Scope Benchmark
Survey noted that they had invested in 3D viewing.
Smart sensors
Additional operational software that has gained traction
in the mining industry is smart sensors. Smart sensors are
combined with human geospatial tracking to turn on and off
the lights to detect when people are, or not, in a particular
area of the mine.
Newmont Goldcorp's deployment of smart sensors at its
Éléonore mine is a case in point. The single multiservice
IP network provides secure wireless communications to
reduce maintenance and operating costs and improve the
safety and efficiency of the workforce. By using the tracking
system, Newmont Goldcorp can ensure that workers are
clear of planned blasting work and manage the mine's air
filtration system by sending fresh air to areas that need it
the most. Meanwhile, Freeport-McMoRan has modified
military-grade drones to monitor and evaluate rock-face in
real time. These drones are used to instantaneously survey
highwalls, blasting operations, tailings, large mill buildings
and power lines.
The value of technology
Although the digital technologies discussed above are
at varying stages of maturity and usefulness, the value-
at-stake analysis and assessments reveal that mining
companies that are digital first-movers have benefitted real
value from new technologies and such companies' pro-
forma projections have shown a substantial increase in the
EBITDA margins.
According to a report prepared by the World Economic
Forum's Mining and Metal's DTI Advisory Group, the digital
transformation initiatives in the mining and metals industry
could generate USD425-billion value for the industry,
customers, society and the environment over the next 10
years. This translates to 3 to 4% of industry revenue over the
same period.
Jessa, the mining company's considerable investment in new
technology has, among other things, integrated its mining
operations spanning several countries, achieved sustainable
health and safety value, improved the maintenance of
its assets, expanded production capacity and ultimately,
generated more than USD20-million in savings.
Challenges
Although new technological trends in the mining industry
offer the promise of nimble and profitable businesses,
improved decision-making, increased employee
empowerment, improved health, safety and environmental
impact and the creation of an estimated USD56-billion of
additional value for the mining industry, there are a number of
challenges that need to be overcome.
As new technology empowers some workers and creates
new jobs, it could also threaten traditional roles such as the
workforce of a typical open-cut, iron-ore mine and operators
in open pit mines, especially in developing countries.
According to a study published by the International Institute
for Sustainable Development, new technologies in the mining
industry will have a tremendous impact on low-middle income
host countries and host communities. The productivity gains
from new technologies will reduce the amounts that mining
companies contribute to government revenues in low-middle
income host countries by USD284-million, and ultimately, the
host countries' gross domestic product.
Additional impacts of adopting new technologies on low-
middle income countries will be in terms of the displacement
of approximately 330 000 job opportunities that require
unskilled and semi-skilled personnel and a reduction in
employment-related local procurement over the next 10 years.
The World Economic Forum has noted that overcoming these
challenges will require collaboration amongst industry leaders,
communities and policymakers. To this end, mining companies
are encouraged to invest in alternative ways to work with
and compensate local stakeholders and communities for the
responsible use of their resources.
Itumeleng Mukhovha is the Corporate M&A Associate at Baker
McKenzie.
For example, Vale
International's implementation
of a digital transformation
programme, which includes
a number of technological
innovations such as the
Internet of Things (IoT),
advanced analytics, robotics,
automation, machine learning,
artificial intelligence and
mobile applications, has
yielded a number of great
benefits. According to the
Vale International's digital
transformation director, Afzal
www. africanmining.co.za
In addition, the quantifiable
value of the different digital
initiatives and projects could
result in an improvement in
safety and the reduction of
610 million tonnes of CO 2
emissions, with an estimated
value to society and the
environment of USD30-billion.
Newmont Goldcorp has deployed smart sensors at its Éléonore gold mine in North America.
African Mining Publication
African Mining
African Mining October 2019
45