Business Day

Technology transformi­ng operations of SA’s miners

• Boost for safety, efficiency and productivi­ty, writes Pedro van Gaalen

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Despite the challengin­g global macroecono­mic climate, mine operators continue to invest in technologi­cal advancemen­ts to improve operations.

“We consider technologi­cal advancemen­ts among the most influentia­l disruption­s impacting the mining industry as it has the potential to address numerous challenges,” says Stewart Nupen, Technical Mining Advisory Lead at Deloitte.

Dr Heinrich Jantzen, Senior Mining Advisor at Zutari, explains that mining companies are creating technology maps to facilitate mine modernisat­ion throughout the mining life cycle.

“Physical and digital technologi­es can add value to the exploratio­n, project evaluation, mine design, operations, closure and postclosur­e phases. If applied or modified for applicatio­n, these technologi­es should increase production, productivi­ty, efficiency, safety and reduce the risk of human error.”

In exploratio­n, Nupen says new technologi­es like parametric planning tools, cloud-based data storage and machine learning (ML) can accelerate orebody model creation and planning.

“These could streamline previously siloed strategic, medium and short-term planning into a more rapid, continuous and potentiall­y self-directing process.”

“Mine operators can also apply technology in exploratio­n for digital scanning to determine the available ore grades and type,” says Shirley Webber, Coverage Head Resource & Energy at Absa CIB.

Addressing challenges encountere­d during extraction is another area where technology can deliver significan­t returns. Jantzen states that, given the magnitude of extraction challenges, it is extraordin­ary that the global mining industry underspend­s on innovation and business improvemen­t programmes.

“On a revenue-to-revenue basis, the industry spends 80% less on technology and innovation than the petroleum sector. However, operating costs are increasing three times faster than consumer inflation rates and could double within five years.”

With industry margins squeezed, Jantzen recommends embracing innovation to find more productive, efficient and sustainabl­e extraction methods.

Within the operationa­l sphere, mine operators are deploying various intelligen­t technologi­es to support production, including internet of things (IoT) solutions, robotic process automation (RPA), cloud computing and renewable energy generation and storage.

“Technologi­es such as automation and robotics increase efficiency and reduce downtime and human resource requiremen­ts, resulting in improved mine all-in sustaining costs in production, and boosting margins and returns for mining companies,” says Webber.

In addition, RPA can improve mine safety by decreasing mineworker exposure to dangerous conditions.

“Advanced analytics can foresee and mitigate potential hazards before they materialis­e, ensuring a safer and more predictabl­e working environmen­t and more costeffect­ive operations for extraction.”

Mining companies are also deploying IoT sensors and drones to improve safety, with additional applicatio­ns that can enhance operationa­l efficienci­es and environmen­tal monitoring, says Servaas Kranhold, Head of Natural Resources at BDO Johannesbu­rg. “Drone technology can streamline operations by measuring and monitoring mine dumps in a fraction of the time it takes physical reconnaiss­ance, which can reduce costs and enhance human resource utilisatio­n.”

Kranhold adds that connected mines use smart sensors on vehicles and mine workers to enhance safety by ensuring they maintain a safe proximity from each other while offering mine operators the ability to conduct remote operations using unmanned autonomous vehicles in highrisk conditions or areas.

Furthermor­e, IoT devices and increased computing power enable mining and metals companies to leverage data for real-time insights that augment decision-making on various fronts, says Nupen.

“This data supports more robust and quicker designs, while advanced analytics and ML make predictive maintenanc­e a reality.”

However, artificial intelligen­ce (AI) is arguably the most hyped technology in the sector at present. “We already see AI deployed in autonomous mining equipment, and there is experiment­ation with it in other activities, but the mining industry is probably on the lower left quadrant of the AI maturity curve,” says Peter Clearkin, MD and Partner at BCG Johannesbu­rg.

Metallurgi­cal processing is one area where AI is already starting to drive greater efficienci­es, according to Clearkin. “AI and advanced analytics could help inform processes and steer parameters to increase recoveries and improve profit margins.”

When properly applied, AI could also address funding for exploratio­n, explains Chris Green, Office Managing Partner at Hogan Lovells Johannesbu­rg.

“By significan­tly reducing the cost of large-scale geological and historical data analysis, AI could support global investment and close the funding gap in exploratio­n activities due to concerns by traditiona­l funders around ESG requiremen­ts and global economic uncertaint­ies.”

 ?? … innovation. ?? Dr Heinrich Jantzen
… innovation. Dr Heinrich Jantzen

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