Mining 2.0: The rise of smart mining

Innovation is propelling the mining industry into a new era, streamlining processes, economising, and addressing the pressing social and environmental concerns of our time. The digital transformation sweeping through the sector is being driven by cutting-edge technologies such as automated machinery, sophisticated monitoring systems, and advanced data analytics, which are collectively redefining the industry's operational landscape.?

Efficiency is being supercharged through optimisation tools and processes that bolster supply chain throughput by 10 to 15 per cent (1), all without altering existing assets or configurations. Companies like Polymathian are at the forefront, having developed an optimisation tool for a vast, multi-user mining value chain in Australia/New Zealand (2). This innovative tool empowers stakeholders to automatically generate optimal plans and schedules, boosting efficiency by an impressive 10 to 30 per cent. The result is a marked improvement in supply chain planning, decision-making, and overall operational efficiency.?

Nanoprecise Sci Corp has joined forces with a global mining, metals, and petroleum company to pioneer a remote condition monitoring solution (3). This system, powered by battery-operated wireless sensors, allows for the real-time health monitoring of equipment. By harnessing artificial intelligence (AI), the Internet of Things (IoT), and LTE-enabled monitoring, coupled with advanced sensors and prescriptive diagnostics, Nanoprecise's predictive maintenance solution is significantly reducing downtime and associated costs.?

Predictive maintenance, leveraging AI and remote sensors, is revolutionising the industry by analysing real-time data to foresee issues, enabling timely repairs that prevent breakdowns and minimise downtime. This not only boosts equipment availability but also reduces maintenance expenses.?

Blockchain technology is stepping in to enhance the traceability of minerals. MineHub Technologies has developed an online platform that uses blockchain to streamline documentation and manual processes across the mining and metals industry, from extraction to end buyer (4). This innovation fosters greater transparency and collaboration within the supply chain, yielding cost savings, bolstering security, and accelerating the downstream journey of minerals.?

Moreover, MineHub has established a consortium with leading industry players, including those in mining, technology, and banking, to construct a blockchain platform that manages high-value assets throughout the supply chain. This platform grants consortium members secure access to real-time data, facilitating more informed and expedited business decisions.?

Robotics is another area where mining is making significant strides, with autonomous trucks, drilling robots, and robotic conveyor systems enhancing both efficiency and safety. Rio Tinto, a mining industry giant, has been using autonomous trucks since 2008, achieving remarkable productivity gains and reducing accidents (5). These autonomous haul trucks operate non-stop, optimising routes to cut fuel consumption and mitigate accident risks.?

The Industrial Internet of Things (IIoT) is poised to transform mining by digitising manual processes, allowing organisations to collect and leverage real-time operational data to enhance on-site efficiency. AI and ML are playing pivotal roles in this transformation by enabling predictive maintenance, which uses algorithms to analyse data and preempt equipment failures (6)(7). This proactive approach promises substantial cost savings and reduced unplanned downtime. AI-powered systems are also optimising mining operations by sifting through massive data sets to pinpoint new mineral deposits and refine key value chain segments.?

Despite these advancements, the mining industry's digital maturity still trails behind other sectors by 30 to 40 per cent, hindering the full realisation of these technological benefits (9). Although progress has been made with autonomous vehicles, automated drilling, and AI, the industry's overall digital adoption remains patchy.?

Global trends, especially the escalating demand for rare earth elements and the volatility of commodity prices, are exerting a significant influence on mining innovation. The demand for rare earth elements, crucial for green technologies and advanced electronics, is projected to skyrocket by 400-600 per cent in the coming decades (8). This burgeoning demand, coupled with potential supply shortages, is spurring mining companies to innovate with AI and ML for predictive modeling and the development of eco-friendly extraction methods. These companies are striving to secure supply chains, adopt cleaner production technologies, and invest in training and development to stay competitive on the global stage.?

The potential of AI to analyse extensive data sets, refine value chain segments, and enhance commercial outcomes is vast, yet its integration into mining is still in its infancy. The industry is wrestling with a skills gap, with 73 per cent of companies identifying it as a barrier to embracing new technology (10).?

To successfully navigate this digital era, the mining industry must bridge the digital maturity gap and cultivate skill development. A recent survey underscored that 73 per cent of companies view local labor market skills deficiencies as the main obstacle to technology adoption (11). This gap extends beyond technical skills to include the effective utilisation of technology.?

The sector is also grappling with a talent shortage, with 71 per cent of mining leaders recognising that this deficit is impeding their ability to meet production goals and strategic objectives (10). In response, mining firms are prioritising talent as a strategic imperative, promoting skills advancement and compelling employee value propositions.?

As the mining industry evolves, new competencies in data analysis, robotics, and automation will become indispensable. Workers must develop advanced engineering and maintenance skills to sustain sophisticated systems and machinery.?

Leading companies are setting the pace, deploying automated mining vehicles and sensor-equipped smart shovels for swift ore identification and sorting. The integration of data analytics, AI, and IoT enables real-time monitoring and predictive maintenance, optimising material flow, preventing failures, and enhancing productivity.?

However, as digital transformation advances, the industry confronts an expanding cybersecurity threat landscape. The convergence of IT and OT networks heightens the risk of cyberattacks. Acknowledging this, the industry is taking proactive steps to fortify its systems with IT-like resilience (12).?

While the mining industry has made strides in digital adoption, it has not yet reached full technological maturity. Addressing the skills gap, uneven technology uptake, and AI integration is essential for capitalising on these innovations. This requires investment in skill-building, a strategic approach to technology adoption, and a commitment to the social implications of automation. The industry must tackle these challenges decisively to flourish in the digital age.?

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(1) McKinsey https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-mine-to-market-value-chain-a-hidden-gem?

(2) Polymathian https://polymathian.com/case-studies/using-optimisation-and-simulation-to-maximise-mine-productivity/?

(3) Nanoprecise https://nanoprecise.io/industries/mining/?

(4) MineHub https://minehub.com/mining-metals-blockchain-platform-minehub-technologies-launches-contract-management-solution/??

(5) RioTinto Scania and Rio Tinto agree to develop autonomous haulage solutions supporting a pathway to lower emissions mining?

(6) Picterra How AI & machine learning are revolutionizing mining efficiency - Industries Picterra?

(7) K-Mine Proactive Measures: Machine Learning in Predictive Maintenance - K-MINE Articles?

(8) BCG Racing Toward a Digital Future in Metals and Mining | BCG?

(9) Columbia Climate School The Energy Transition Will Need More Rare Earth Elements. Can We Secure Them Sustainably? – State of the Planet (columbia.edu)?

(10) McKinsey Mining industry employment and talent challenges | McKinsey?

(11) Word Economic Forum Emerging and declining skills - The Future of Jobs Report 2020 | World Economic Forum (weforum.org)?

(12) Deloitte gx-deloitte-managing-the-successful-convergence-of-it-and-ot.pdf?