Many mining businesses and executives are hesitant to adopt new technologies due to the high cost of deployment. However, appropriately selected and deployed technology can have a favorable effect on the operating expenses of a company.
FREMONT, CA: The mining industry is at a historical crossroads due to technological advancements that could revolutionize the business. Recent pressures from the COVID-19 epidemic, supply chain issues, and dropping commodity prices have increased the need to reevaluate how mining operations are conducted.
Digital transformation can assist mining companies in reducing costs and increasing revenues by optimizing their work processes and delivering greater data insights to inform strategic decisions.
Digital transformation in mining is incorporating digital technology into all facets of a mining organization to optimize operations and value delivery. Identifying and employing technology in novel or enhanced use cases provide a significant competitive edge. An essential element of a digital transformation in mining is a cultural shift; mining organizations must particularly question the status quo and differentiate themselves.
Enhanced Operational Efficiency: By analyzing the data flows between mining machines and the output of various mining process phases, businesses can get valuable insights to influence the future planning and coordination of mining activities.
Reduction of Costs: Over the past decade, material costs, a higher workforce, and new procedures necessitated by regulations have led to a significant increase in mining expenses. Technology can aid in cost reduction by increasing process efficiency and decreasing waste.
Enhanced Exploration and Discovery: The mining sector primarily relies on the capacity to locate new supplies of raw minerals and metals. Unfortunately, due to financial constraints, exploration expenditures are currently half what they were in 2012. Technology can facilitate the efficient discovery of new mining deposits.
Innovations in the field of muon tomography, for instance, enable mining corporations to conduct deep ground scans that improve their capacity to locate mineral reserves, as opposed to "blind" drilling for core samples. As 55 percent of exploratory costs are related to drilling, this can substantially impact the bottom line.
Impact of Market Changes Lessened: Technology and raw materials application changes can significantly affect the industry. For instance, discovering a new type of material could change the utilization of particular metals.
Technology can facilitate the execution of scenario-based simulations so executives can anticipate significant business disruptions.
Human Risks: The mining industry poses considerable threats to the safety of its employees. Businesses can lower the high death and injury rates by introducing safety-oriented technologies, such as automated machinery and monitoring sensors.
Improved Contact: The mine operators who maintain regular lines of communication with their workers, mine supervisors, and machinery operators can benefit greatly from using technology.