MINING SOFTWARE
Hexagon ’ s Mining division and Phoenix Drill Control are in the advanced stages of commercialising a semi-autonomous drilling solution
occurring across the software space , Batkin looked to integration and plan compliance in the operations side of each mine “ planning horizon ”.
“ Using longer-term plans to guide the operational space in each planning horizon , and then validating the progress back to those plans , has provided huge benefits for the organisations that have invested in technology ,” he explained .
Such developments have been witnessed by not just RPM but the wider software sector in the decarbonisation space , with Batkin noting increased demand for the simulation of alternative trucking fleets through such solutions as RPM ’ s HAULSIM .
“ As more operations look to replace their diesel fleets with a more sustainable alternative , we are seeing them turn to discrete event simulation as a way of testing and quantifying what that looks like for their individual operation without any financial outlay ,” he said . “ Many organisations are in a position where they need to retire fleets in the next five years , but the traditional diesel replacement won ’ t achieve the
sustainability goals that the company has set .”
Being able to simulate different options then schedule and cost those options to a “ zero-based budget ” is proving to be critically important to satisfy many stakeholders , according to Batkin .
It is this simulation capability that also showcases RPM ’ s openness to collaboration across the mining technology space , with the company having one of the largest adaptor libraries to third-party systems in the industry , along with predefined APIs available for hundreds of systems .
Batkin added : “ We have been working with the likes of SAP , Accenture , Komatsu , Hitachi , CAT , Wenco and Modular for many years to provide integrated and data-driven solutions for our combined customers .”
Centralised vs decentralised
Derek Cooper , Managing Director USA / Canada at Hexagon ’ s Mining division , is expecting the mining software and technology space to buck the recent trend of declining premiums in the wider technology M & A space , thanks to robust demand and a lack of supply options for mining customers .
“ Mining technology is a bit of a different story to the rest of the financial markets : our customers are large , producing mines and commodities have been fairly resilient , especially for companies supporting the ‘ electrification ’ push ,” he told IM . “ Quite simply , although capital may be harder to find , many of the technology acquisitions in our space are profitable businesses selling productivity and / or safety solutions to big profitable companies .” Requiring very specific knowledge , very specific products and a certain level of product maturity from its customer base prior to deployment , the software sector is not a space just any company can enter successfully .
“ That ’ s difficult for new entrants to overcome , so , honestly , acquisitions are – and likely will continue to be – a viable option for many in our space ,” Cooper said .
For the acquirer , M & A is a way to expand product offerings without incurring years of R & D effort , according to Cooper , who acknowledges Hexagon ’ s own transaction history in the mining technology space .
“ There are also advantages for the acquired company as well : Hexagon has brand recognition and a large pool of resources we can leverage in terms of technical product development , and we also have economies of scale that allow us to secure raw materials ( computer chips ) in quantities that might be impossible for smaller players ,” he said .
In terms of the mining company demand dynamic , Cooper has witnessed a huge change in the way companies collect , analyse and act on
FEBRUARY 2023 | International Mining 35