Mining Mirror June 2019 | Page 23

digital workforce and workers in the more traditional role that labour has played in mining and metals. This will be especially true in emerging economies. digital offers an opportunity to better model and plan the extraction of ore bodies. Figure 7: Digital Impacts and Responses to Industry Challenges Mining in focus INDUSTRY CHALLENGE INTENSIFIED / ACCELERATED BY DIGITAL POTENTIAL INDUSTRY DIGITAL RESPONSES Forum/Accenture WEAK GLOBAL DEMAND •  Slower demand growth due to digitally •  Improved products and value-chain enabled consumer sharing models (e.g. efficiencies to win share from other materials Uber), ‘products as services’, improved or value chains. supply-chain efficiencies, and the circular •  New business models based on value-chain economy. disruption. PERSISTENT EXCESS CAPACITY •  Digital may improve the viability of weak assets and operations, thereby prolonging excess capacity. •  Fast adoption by industry leaders can increase the slope of the industry cost curve, further marginalizing weak players. INCREASING CUSTOMER REQUIREMENTS •  Huge disruptions emanating from end- user markets will flow back through the value chain, creating new requirements. •  Faster product innovation, new forms of customer service, and closer customer collaboration. •  Not apparent. •  Digital tools to increase agility and mitigate impacts of volatility on operations. TRADE FLOW DISRUPTIONS DECLINING RESOURCE •  Not apparent. ACCESS AND QUALITY •  Digital technologies for locating and optimally extracting and processing ores. INCREASING RESOURCE •  Digital enables greater visibility and NATIONALISM AND monitoring of operations and societal REGULATION impacts. WORKFORCE SKILLS •  Gap between existing workforce skills and increasing technical requirements, especially in emerging economies. •  Tools to improve stakeholder engagement and reporting. •  Digitally enabled workforce. •  Automation, robotics, and hardware. Digital impacts and responses to industry challenges. Source: World Economic Forum/Accenture analysis 26 Digital Transformation Initiative: Mining and Metals Incorporating smart workflow technologies that highlight process deviations, will trigger the desired response mechanisms, as well as supporting the required behavioural change. and valuation, through mining, ore processing and metals production, to downstream sales and distribution, digitalisation is blurring traditional industry lines and challenging the business models of the past,” the paper states. It’s almost impossible not to mention automation when talking about digital infrastructure. In addition to efficiency, the move towards digital infrastructure and the use of automation have provided many opportunities for efficiency and safety improvements. This equates to using technology to take people out of unsafe environments. According to The Future of Mining in Africa, a report by Deloitte, digital infrastructure in a mine will address challenges associated with structural variability in the orebody, lack of visibility of what should be done, and management induced variability. The report highlighted that although mining companies cannot do anything about structural variability in the orebody, faster and better-informed response mechanisms enabled by digital technologies can be created. www.miningmirror.co.za Digital infrastructure will also play an important role when it comes to decision- making in mining operations, as it enables real-time monitoring. Gibson mentioned that rather than waiting for daily or weekly production results to make decisions, digitalisation makes it possible to analyse data and make adjustments in real-time using sophisticated computer algorithms. These data analytics will lead to better decision- making overall. According to the report, complete, timely, insightful information and leading indicators enable the leadership and frontline teams to intervene more proactively. In addition, the report mentions that incorporating smart workflow technologies that highlight process deviations, will trigger the desired response mechanisms, as well as supporting the required behavioural change. Implementing digital infrastructure and challenges Gibson says there are various factors to consider before a mine can implement digital transformation. Each mine is unique and therefore has different requirements for adopting digital infrastructure. These include a clear view of the benefits of digital, the right team at site and support requirements, mine location, existing technologies, and remaining mine life. Most importantly there must always be a clear digital strategy and business case for moving towards implementing digital infrastructure. “These days mining companies are looking very carefully at how they invest their limited resources of time, money and people,” Gibson says. He explains that there is a super boom in the industry between 2000 and 2008, until the global financial crisis when things slowed down. Prior to 2013, most mining operations were investing in expansion projects. “After that there was a significant focus on how they [mines] could reduce capital costs.” Today, mining companies are emphasising capital rationalisation and operational efficiency. Once a business case has been presented and approved, an onsite audit would take place at the mine to identify the digital infrastructure requirements. The audit entails working with operations management and the team on the ground who understand the mine’s current systems, to identify the current risks and identify exposure, as well as any potential risks by not implementing changes. Gibson believes that building a solid business case would be critical to implementing digital infrastructure, and that an audit will help to identify areas of opportunity and risk. The report also mentions that the work, JUNE 2019 MINING MIRROR [21]