The Future of Mining
Jorge Fernando Lozano
Founder BeE3 LabTech & Mining AI Tech & IMSS |Msc Computer Science | Artificial Intelligence | Optimization & Simulation|
Mining and agriculture, two seemingly disparate industries, have the potential to converge in an innovative approach that not only optimizes resources but also promotes long-term sustainability. In a context where sustainability has become an essential pillar for the future of companies, strategic decisions cannot be limited to traditional operational improvements or the implementation of technologies like Artificial Intelligence. This article proposes a solution that goes beyond current tools, exploring the use of underutilized spaces in open-pit mines to transform them into agricultural labs. This approach, in addition to contributing to the financial value of the company, could mark a turning point in how we understand mining and its environmental impact.
Mining & IA
I believe that Artificial Intelligence will eventually help all industries, including the mining industry, but how much will it actually help? Mining companies and Digital Transformation executives in mining should know this. Well, here are my estimates:
? 0.1% to 1% of the NPV considering improvements in extraction operations.
? 1% to 5% of the NPV considering Maintenance and Processing areas.
? 5% to 10% of the NPV considering a scenario where recoveries over 95% and availability and utilization over 92% are possible.
I want to remind you that innovation is not about applying LLMs (Large Language Models) as many executives claim, saying they are optimizing their operations. That’s not innovation, that’s accommodation. Getting back to the point, using Digital Twins and Artificial Intelligence, in the best-case scenario, can improve business value by 5%, and it takes at least 3 years of ramp-up to reach those levels, not to mention the cultural change required.
Let’s put this into numbers: if the company is worth 10 MMUSD and improves by 5%, then it’s now worth 10.5 MMUSD. The question is: were improvements made? Well, yes, but they are almost imperceptible. And the other question is: what about the famous sustainability?
Let’s talk about that. The industry is not sustainable in the long term, because we are talking about non-renewable resources. So, to make it sustainable, we have to transform it from the ground up. Let’s use this concept:
Re Imagine the Mining Process
Imagine reconstructing a mine, but where? That’s the big question. I’ve always thought that Mother Nature is a serial creator, there’s no one better or more creative, and she always intends to be discovered, leaving breadcrumbs… The breadcrumbs are the clues, but they’re not easy to find. Sometimes, what seems to be the strongest part of something is actually its greatest weakness. In a mine, the most difficult thing to eliminate is the footprint we leave behind, but perhaps in that footprint lies the solution, and the catch benches might offer a possible answer.
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Catch benches are typically 5 meters wide, so technically, there is enough space to use them as agricultural labs. These rings, 5 meters wide and 2 kilometers in diameter, represent space that no one is using, but which the Incas once used to domesticate and study different temperatures and crops.
Technically, we would need to build a wall with geotechnical angles that are stable, incorporating agriculture. We’re talking about a mine providing 10 hectares per ring, and mines have at least 20 rings, which gives us 200 hectares. Geotechnical experts might debate the issue, as stability could be at risk, but it’s an engineering problem that can be solved if the right angle is found to place these labs in situ.
Financial experts will say that we might lose 1 MMUSD by increasing the wall’s angle. However, what they fail to consider is that if we use Real Options as a financial model for this proposal, the value of having an agricultural lab will cause the mining company’s stock to skyrocket, as the positive impact is real. If without agriculture you were worth 10 MMUSD, now with agriculture you would be worth 9 MMUSD, but with Real Options, you would be worth 15 MMUSD. That represents a 50% increase in value, an increase that even AI couldn’t achieve.
Conclutions
Integrating agriculture into underutilized spaces in mines presents a unique opportunity to transform the mining industry into something more sustainable and socially responsible. While Artificial Intelligence and other advanced technologies can enhance operational efficiency, their impact on the overall business value is limited and often requires long implementation periods.
On the other hand, applying innovative financial models like Real Options, combined with the creation of agricultural labs in the catch benches, offers a disruptive approach that can significantly increase the value of mining companies. Furthermore, this synergy between mining and agriculture not only opens up new revenue streams but could also improve the public perception of an industry facing challenges in terms of sustainability and environmental responsibility.
The key lies in moving beyond traditional solutions and envisioning a future where extractive industries not only exploit resources but also become catalysts for sustainable solutions. In this way, mining companies that embrace this innovative vision will not only survive but thrive in a world increasingly aware of environmental impact.
CEO & Founder BeE3 Tech & Mining AI Tech I Startup & Innovation I Speaker I Women in Tech I Sustainability
4 个月??????????????????
Superintendente de Planeamiento Mina
4 个月Buen artículo Jorge. La innovación y las ideas disruptivas son claves para hacer la minería más sostenible.