Why miners are more prepared for digitalisation than they might think
How miners adapt to advanced mining technologies could shape their future success. Shweta Saxena, CEO of MachineMax, explores why data that mining sites already have may be the key to accelerating digitalisation.
Key Takeaways
Many miners do not feel well-equipped to handle the emergence of new advanced equipment. But, by building on a strong foundation of data with their existing technologies, they can drive operational efficiency while preparing their sites for a digitalised future.
Mining operations generate a wealth of data. How effectively sites can implement and deploy new digital solutions depends on their ability to harness and maximise the potential of their data.
Digitalisation in mining is not just about bringing in brand-new tools. With advances in connectivity and data storage, existing technologies (including GPS, drone footage, weather etc) offer a rich source of efficiency gains.
Once miners begin their digitalisation journeys, progress can be rapid. With the right connected tools in place, miners can see the benefits of digitalisation on their operations 鈥 and start exploring the possibilities available in more advanced technologies.
Shweta Saxena, CEO, MachineMax
Shweta is the Co-Founder of MachineMax, a connected data solution for on-site operations, where she currently serves as the CEO. She has more than twenty years of experience in product development, growth, and strategy across established companies such as Lego, Dell International, and BCG-DV. Today, she works with talented teams to transform the $60 billion data-driven market.
The ongoing digitalisation of mining has a critical role to play in driving operational efficiency across the sector. Back in 2015, research from McKinsey & Company showed that more data was generated on mines every day than had existed in total through 2003. With huge amounts of sensor data being produced, that would potentially enable them to obtain a more accurate and consistent picture of reality at the rock face. They conclude that rarely is this information used to generate insight; in some cases, miners were using less than 1 percent of the information collected from their equipment.
This is echoed by the fact many miners do not feel they are set up to effectively implement or optimise the advanced technologies and equipment that are becoming available 鈥 a situation that puts their ability to deliver more productive and more sustainable operations at risk.
Miners are not as poorly equipped for developing new digital practices as you might think. By using data as a foundation for building on their existing technologies, miners can begin to achieve significant improvements in operational efficiency 鈥 whilst preparing themselves for the arrival of more advanced mining technologies.
Creating the right foundation to drive mining digitalisation
As the mining industry looks to overcome its biggest commercial and environmental challenges, it is no surprise that digitalisation is seen as an effective route to greater operational efficiency. When it comes to costs, the age of smart mining could help the sector to save up to $390 billion each year by 2035.1 Also, if brought to scale, the tools behind smart mining could reduce emissions by 20% by 2050 across the sector鈥檚 three highest-emitting sectors: energy, materials, and mobility.2
No wonder 75% of miners are investing in digital tools to drive operational efficiency, or plan to do so in the next two years.3 This is according to 鈥Breaking New Ground: Shaping a Successful Future for Mining鈥, the latest whitepaper from Shell Lubricant Solutions. However, seven out of ten miners also say they are not ready for the emergence of more advanced mining technology and equipment.3
So, how can they prepare for the next wave of digitalisation? And how can they use the tools they already have to improve operational efficiency. For Shweta, CEO, MachineMax, the answer lies in creating a strong foundation of data on which to build.
鈥淲hen we speak to our customers, they want the ability to make better operational-level decisions,鈥 she says. 鈥淭hey want safer sites, to operate more sustainably, to be more efficient, and more productive. And for that, they need data.鈥
75% are investing in digital tools to drive operational efficiency, or plan to do so in the next two years鲁
Shweta Saxena, CEO, MachineMax鈥淒ata is more complex in industries like mining. There's a lot of geospatial and contextual data that you collect 鈥 and making sense of it requires a certain level of expertise and experience.鈥
7/10 are NOT ready for the emergence of more advanced mining technology and equipment鲁
Mining sites have a wealth of data being generated by their operations. The key to unlocking opportunities for greater operational efficiency is understanding how to make the most of that information.
鈥淲hat we have seen over time is that there is no dearth of data in mining,鈥 explains Shweta. 鈥淲hat gets in the way of effective decision making is the unevenness of data. Either there is too much or too little data in each area. For example, the machines are either fully connected or they鈥檙e not 鈥 and sites want 100% of their fleets connected because they need the right data coming through to the right people.鈥
Driving digitalisation is not all about autonomous vehicles and drones
With so much data flowing around their sites, miners could be better equipped to adapt to the future of digitalisation than they might think. How they harness that data will be the difference between them adapting swiftly to new technologies or struggling to keep up.
The sector is keen to adapt. A quarter of miners see the arrival of more advanced and autonomous mining equipment as their top digitalisation priority. But making the most of digitalisation is not all about bringing in exciting new tools. As Shweta highlights, the technologies that sites have had for a while still offer efficiency gains
鈥淢ining has used GPS and telematics technology for a long time, but there are different levels to its use,鈥 she says. 鈥淩ecently we have been working with customers to use GPS and telematics to provide the trip details for mining fleets. So, how long are vehicles queuing? How long does it take to load them? It is based on the information that is already available, but we are delving further into a site鈥檚 operations to help businesses make informed decisions.鈥
1/4 see the arrival of more advanced and autonomous mining equipment as their top digitalisation priority鲁
Shweta Saxena, CEO, MachineMax鈥淚f even one or two of a site鈥檚 machines are being missed, it means that businesses aren鈥檛 getting 100% of their fleet data 鈥 and that potentially undermines their decision making.鈥
So, if mine sites have had these tools for years, how do they still yield so much potential now?
鈥淲e are seeing that technology advancements are unlocking new opportunities in this area,鈥 Shweta explains. 鈥淲ith 3G and 4G, data from everything is now available. Plus, you can store the data more easily. There is an element of timing to all this that means sites are now able to significantly improve the availability, reliability, and accuracy of their data.鈥
Developing the mine of the future with digital technologies
The reason that miners might be better equipped to handle advanced technologies is that, once they get going with digitalisation, progress can be swift. It all depends on where they currently are on their journey.
鈥淪ome companies are way ahead on this and are discussing autonomous vehicles. They are also talking about wearables,鈥 says Shweta. 鈥淭here are also companies who have not even started with digitalisation. So, there is no point in those companies looking at advanced tools because they are still working on getting their data in order.鈥
For Shweta, this means that miners need a spectrum of solutions to support businesses at various stages of their digitalisation journey.
鈥淥nce businesses are on the journey, demand for digitalisation is high and they want to move quickly,鈥 she explains. 鈥淲e start with connected fleets, and we immediately see people wanting more reporting and cameras. They start asking for wearables. They quickly start to scale up because they can see the return on investment, and they can see the benefits of digitalisation on their operations.鈥
Shweta Saxena, CEO, MachineMax鈥淏usinesses should ask themselves, if they get the data they want today, what are they going to do with it? What decisions will this data drive?鈥
The data foundations behind this rapid progress are important for making effective decisions at a pivotal moment for mining. Shweta highlights equipment operations as an area in which data and digitalisation are critical for driving decarbonisation.
鈥淪ites know the energy requirements of their internal combustion engine (ICE) machinery. They know the amount of energy needed to get a loaded truck up a specific gradient,鈥 she says. 鈥淏ut, with electrification, how you redesign the mine of the future depends on how you map your energy needs. You need a lot of data to achieve this, which is why digital technologies are fundamental to mining decarbonisation.鈥
Digitalisation is happening, so miners need to adapt now
Even if miners do not feel ready to adapt to new digital technologies and tools, it is positive that 78% are already working to train their workforces on digitalisation and sustainability practices. After all, these are the people who will be tasked with maximising mining鈥檚 potential for operational efficiency.
鈥淔or me, digitalisation is no longer an option. It is the default way of operating now,鈥 says Shweta. 鈥淗owever, change management remains a key element in the journey. The sooner new tools and technologies are normalised, the better 鈥 and that requires businesses to bring their people along with them. So, a top-down approach will not work. You need to help people understand the benefits by providing training and listening to their concerns.鈥
For Shweta, it is also important for miners to recognise that digitalisation will affect every part of their operations.
鈥淚t can help to take a step back and spend time understanding their specific needs,鈥 she concludes. 鈥淭here is no one-size-fits-all approach, and it will not help to copy competitors. The suggestion I would give is to look at your systems and figure out which tools will truly work for you before setting off on this journey.鈥
Discover more about how the ongoing digitalisation of mining is helping the sector to drive operational efficiency on the path to more productive and more sustainable operations. Read the full 鈥楤reaking New Ground鈥 whitepaper:
Disclaimers:
1 Mining Digital. 鈥.鈥 2022.
2 WEF. 鈥.鈥 2022.
3 Based on a survey to 561 decision makers in the mining industry across the globe in July 2022. The survey was commissioned by Shell Lubricants Solutions and conducted by research firm Edelman Intelligence.
