Tag Archives: digitalisation

Siemens looks at the future of mining in Africa as it launches SIDRIVE IQ

Siemens has launched its SIDRIVE IQ industrial IoT monitoring solution for drive systems at its Virtual Smart Mining Forum, seeking to showcase how the solution can increase drive uptime to improve mine site productivity.

The SIDRIVE IQ Suite has a powerful dashboard to minimise unplanned downtime with automated failure notifications, improve data transparency with easy access to recent and historical data, and troubleshoot faults.

The Virtual Smart Mining Forum the company is using to launch SIDRIVE IQ will explore new trends and the impact of technology on the African mining sector.

Taking place from August 3-5, the event brings together the mining community, industry experts, decision makers, thought leaders, technology providers, consumers, users, engineers and designers to discuss topics affecting the mining industry, with all participants exploring ways in which technology can drive effective change in the sector, Siemens says.

“COVID-19 has prevented the industry from having progressive conversations about how to move the mining sector forward,” Tim Walwyn – Head of Mineral Solutions, Siemens Southern and Eastern Africa, said. “This three-day event is an opportunity for us to bring the mining community together to reignite the dialogue and share knowledge to help us sustainably transform the future of mining in Africa. As a partner to African mines, our electrification, automation and digitalisation portfolio offers a combination of deep understanding of the mining industry with state-of-the-art technologies.”

Sabine Dall’Omo, Siemens CEO for Southern and Eastern Africa, says: “Our main objective with this event was to initiate a forum for knowledge transfer to the industry and raise awareness of the opportunities created by technology. We’re excited to bring this collaborative forum, where we can showcase the latest technological innovations for the industry and explore their effects on the African mining landscape.”

Siemens has invited various South African universities and will introduce them to Mendix, a low-code rapid application development platform that enables users to build and continuously improve mobile and web applications at scale. During the forum, Siemens will launch a hackathon using the Mendix platform.

As part of the company’s commitment to enterprise and supplier development, Siemens will also provide 10 industrious SMMEs that deliver solutions and services to the mining industry a chance to showcase their companies and expertise in a separate virtual showroom.

Dall’Omo said: “The future of mining and the transformation of the mining industry depends highly on staying abreast of advancing technology and industry trends. It also depends on the sustainable development of new enterprises, collaborations, and ongoing conversations among relevant stakeholders in the public and private sector and educational institutions. Now is the time to contribute to small business growth, promote job creation and develop critical job skills required for the transformation in the mining industry.”

Jeffrey Dawes looks forward to a sustainability-focused MINExpo 2021

As the world’s largest mining event, MINExpo INTERNATIONAL is used as an industry barometer for the health of the sector. While this year’s event will be a little different given the impacts of COVID-19, the anticipation continues to build for an in-person gathering that will highlight the biggest and best mining has to offer.

Ahead of this year’s event, sponsored by the National Mining Association (NMA) and due to take place on September 13-15, in Las Vegas, IM put some questions to Jeffrey Dawes, MINExpo INTERNATIONAL 2021 Chair. Dawes is also VP of Komatsu’s Global Mining Business Division and President and CEO of Milwaukee-based Komatsu Mining Corp.

IM: How will this MINExpo be different to previous editions? How are companies planning to ‘open up’ their exhibits and presentations to the widest audience possible considering COVID may restrict some of the in-person international attendance seen in previous years?

JD: MINExpo offers the mining industry the unique opportunity to experience, in person, the newest mining equipment and talk directly with the technical experts behind the most innovative technology and solutions. NMA has done a great job adapting plans this year as COVID restrictions have evolved, so they were prepared for a very different experience if need be, but fortunately it looks like we will be able to have a fairly normal show experience, albeit from a North American perspective – we will be missing some of our international friends who cannot join this year’s event. Part of what has always made our industry great is a strong sense of community, so it will be great to be able to get together in person after such a long time.

To accommodate our friends and colleagues who won’t be able to make the show in person, exhibitors this year have plans to utilise the latest in virtual technology to showcase what will be at the show. Exhibitors will also be able to upload product information, videos and other materials to the online directory, which will be available and open to anyone for a year after the show. Finally, the Opening Session will be live streamed.

Jeffrey Dawes, MINExpo International 2021 Chair

IM: What will be the big innovation themes at the event and what do these themes say about the future direction of the mining industry? 

JD: Digitalisation, electrification and automation will be the big innovation themes this year. Full enterprise optimisation can only be achieved by connecting tasks, processes, systems and people across the value chain. Solutions that leverage digitalisation, electrification and automation are the key to that full enterprise optimisation. They also play a crucial role in creating sustainable systems that support society’s growing needs in the most environmentally responsible ways.

IM: In a general sense, what positive impacts do you think COVID has had on the mining sector’s innovation/technology uptake? Has it accelerated the rate of innovation through necessity (remote working, increased HS&E considerations, shift to cloud-based network infrastructure, etc)? Is this likely to shine through at MINExpo in terms of what companies are showcasing and talking about?

JD: COVID really gave the mining industry a chance to reflect on its goals and take a deeper look at the tools now available to help it reach those goals. I think it also helped us gain a better understanding of the importance of aligning our business objectives – to extract the minerals needed by society – with society’s need for us to do that in the most sustainable, efficient and least intrusive ways possible. I’m certain that the products and solutions presented by the exhibitors at MINExpo this year will centre on the innovations and technology available now and in the near-term future that will help mines meet both their own and society’s needs.

IM: How do you see Komatsu’s contribution shaping/influencing the event? Are your solutions likely to be the ‘talk of the show’?

JD: We think so, yes. This year at MINExpo, Komatsu will focus on the power of smart technology and connected systems, the freedom of interoperability on an open platform, and the equipment and solutions that will help our industry move forward toward a more sustainable future. I’m particularly looking forward to sharing our newest haulage concepts, which are designed to help meet our customers’ needs for autonomy and the drive toward zero emissions. We’re also excited to give attendees their first in-person look at our newest surface blasthole drill, with 122,000 lb (55,338 kg) of pull-down force, the ZR122. Also, our newly branded WE1850 Gen3 wheel loader with switched-reluctance hybrid drive technology, with a bucket capacity of 60 tons (54 t), and our latest offerings for underground hard-rock and soft-rock operations.

Ultimately, at Komatsu we believe in providing our customers with the technology, solutions and flexible support they need for the lifecycle of their equipment and mining operations. Our customers need a reliable partner they can trust with whom to invest for the future of mining. We aim to be that partner.

IM: Aside from being a topic of discussion on the stands and in the conference rooms, how will sustainability be on show at MINExpo? Will this be the most ‘sustainable’ MINExpo yet in terms of organisation, emissions, etc?

JD: Mining has always been an essential part of keeping modern society moving forward. As we say, if it’s not grown, it’s mined. As an industry we have to focus on how to evolve to continue to meet those needs sustainably. The mining industry is already finding new ways to extract the minerals needed to meet the requirements of the world’s more energy conscious and environmentally friendly future. I am sure that many of the exhibits at this year’s show will showcase those new sustainability-focused solutions.

IM: Are you able to provide any preliminary expectations of attendee numbers?

JD: Varying country restrictions – and the US’ own restrictions – are obviously making this a year unlike any other, placing unusual limitations on attendance. However, we were pleased to have nearly 90% of our 2020 planned exhibitors re-book for this year and new exhibitors are booking space every day. We’re looking forward to welcoming representatives from 32 countries as both exhibitors and attendees. We hope to see even more attendees register as vaccination rates continue to rise, case numbers fall and an increasing number of countries lift travel restrictions as evidenced by recent changes in Canada.

International Mining is a media sponsor of MINExpo INTERNATIONAL 2021

Epiroc prepared for more order records after strong Q2

Record orders received, high revenue growth and improved profitability were all part of Epiroc’s June quarter financial results as the OEM also made significant headway on its diesel-to-battery-electric retrofit plan to help electrify the mining sector.

Orders received increased 37% to a record high of SEK11.07 billion ($1.27 billion). This corresponds to 45% organic growth compared with the June quarter of 2020, the company said, noting that the 2020 three-month period was significantly impacted by the COVID-19 pandemic.

Within this, equipment had the highest organic order growth of 76%, supported by a few large orders, such as an underground mining equipment order from Mexican contractor CoMinVi for use at several mines throughout the country.

The aftermarket also had a strong development, with organic growth of 26% for service and 42% for Tools & Attachments, Epiroc noted.

On the electrification front, Epiroc also highlighted that the June quarter had seen the company win several orders for battery-electric equipment, including one from Ivanplats for the Platreef project in South Africa, while receiving the first orders for its diesel-to-battery retrofit solution. The latter is starting with the conversion of diesel ST1030 loaders to battery-electric versions.

Revenues increased 15% to SEK9.733 billion in the June quarter, while operating profit and operating margin rose 54% and 22.4% to SEK2.182 billion and 22.4%, respectively.

The period was also characterised by several acquisitions, including the purchase of Australia-based Kinetic Logging Services, Canada-based 3D-P, and South Africa-based MineRP. Chile-based Mining TAG and Meglab, based in Canada, also came into the Epiroc fold in earlier July.

Speaking to IM just after the results came out, Helena Hedblom, Epiroc President and CEO, said the company had seen the automation, digitalisation and electrification trends observed across industry accelerate in these regions, among others, since the emergence of COVID-19.

“We see that different regions are ahead in terms of different capabilities,” she said. “We have seen a lot around digitalisation and automation in Australia, and, in Canada, when it comes to electrification, there are a lot of things happening. South Africa is strong when it comes to software and, on top of that, there are some regional players serving the sector like Mining TAG.

“We, as Epiroc, can come with our global footprint and help these regional players go abroad and roll out the technology on a global level.”

These acquisitions have seen the company’s staffing contingent swell in the last year. At the end of June, Epiroc said it had 14,569 employees across the globe, compared with 13,967 a year earlier, tied mainly to these acquisitions. Indeed, the three companies acquired during the June quarter came with 430 employees in total.

At the end of 2019, prior to the global onset of the pandemic, Epiroc had 14,268 employees on its books.

While Hedblom acknowledged much of the staffing increase was on the back of acquisitions, she did say the company was ramping-up additional workforce in “manufacturing, in supply chain and in service”.

And looking back to the rationalisation carried out across the company during the height of COVID-19 worries – which saw a notice of termination provided to 425 employees in Sweden and the consolidation of the manufacturing of exploration drilling tools in Canada – Hedblom said the company had since repositioned itself for the type of growth it was now experiencing.

“When we did the correction last year, we addressed a lot related to, mainly, admin and back office. With these acquisitions coming on board, of course, the majority of employees are technology-related people…software developers and service people to manage the technology out in the field.”

And, lastly, when it comes to the capacity to keeping up with record orders, Hedblom said: “We have a very flexible manufacturing setup where we do the final assembly, in house, and a lot of the pre-assembly is done by some external suppliers. That is how we are – and have always – managed swings in order volumes.

“We can also add more capacity if needed in our assembly lines. We are not regionally limited there; being able to use the different facilities we have in both the US and Sweden, in addition to China and India. We can balance that demand between the sites.”

Epiroc Canada launches RAC Teams, Control Tower to aid mining’s digital transformation

Epiroc Canada, adapting to changing technological trends in the mining sector, has introduced Regional Application Center (RAC) teams to, it says, assist in the industry’s new digital transformation.

“Across the board, mining projects are continually pushing for increased production while prioritising safety,” the company said. “With this in mind, Epiroc has assembled specialised automation and digitalisation support systems in strategic locations across the globe to help improve customer processes and boost productivity.”

The result, Epiroc says, is a heightened level of production that keeps workers out of danger zones on site while providing enhanced strategic direction for customers. Interoperability improvements have reduced variability and allow project planners to move towards their targets with renewed confidence.

Martin Champagne, Application Center Manager at Epiroc Canada, said: “Our RAC team gives new perspectives on achieving efficiency for the organisations we partner with. The team itself utilises members from a wide range of disciplines; from data analysts and project engineers to network specialists, software developers, IT specialists and digital product managers – the support system is always available when customers need it.”

Epiroc’s Canadian Customer Center has successfully applied this technology since the late 1990s, when the RCS Rocket Boomers with advanced boom controls and autodrill features were first introduced. In 2005, Canadian operations implemented one of the first Epiroc Scooptram Radio Remote Controls using long-range Bluetooth technology; 2009 for the first fleet of semi-autonomous Epiroc Scooptram implementations; 2012 for the first fleet of Pit Viper 235s with tele-remote systems; and 2019 for the first SmartROC D65 autonomous drill.

With Epiroc’s 6th Sense offering, the shift towards automation, digitalisation and interoperability is already underway, and the Regional Application Centers work collaboratively with many industry partners across the globe to achieve their goals, Epiroc said.

It added: “While working together with customers, Epiroc has initiated the move from machine autonomy to process autonomy, which consists of automating a complete process and allowing different kinds of equipment to communicate with each other effectively.”

To help support these functions, a newly renovated Control Tower located at Epiroc’s Lively, Ontario facility now acts as a home base for the RAC team, who are continually collecting data and developing innovative techniques to improve performance.

“Customers utilising this service for their projects can now turn their focus to other areas of the business with the knowledge that Epiroc’s team of experts are carefully monitoring progress on site and offering solutions in real time,” Epiroc concluded.

IMDEX on the importance of cyber security in the digital age

As the resources sector is adopting innovation, in particular digital technologies, at an increasingly rapid rate, mining companies should consider the cyber-security risks inherent with leveraging this innovation, according to mining technology company IMDEX.

Paul House, CEO for IMDEX, says the take-up of new technologies is happening on a scale that has not been seen in the past – a confluence of the effects of the COVID-19 pandemic and the need to replace depleted existing mineral reserves.

“This is partly by necessity, to enable remote working, and partly by opportunity, as these technologies will enable faster drilling, more efficient drilling, and better decision making,” he said.

But every tool and technology that is added to a mining company’s arsenal – from exploration to production – increases the attack surface for hackers, according to the company.

IMDEX says it has countered this by achieving the “gold standard” in data security – certification against the exacting standards of ISO27001, an international information security standard recognised in 161 countries. The company received recognition for this information security standard in early 2020.

House said increasingly clients were asking for such security protocols to be in place.

The threat of cyber attacks intensifies as competitors, organised crime, and “state-based actors” seek to gain advantage by malicious means – searching for vulnerabilities in business systems that will allow them access a company’s most important secrets, according to the company.

The Australian Cyber Security Centre (ACSC) has warned that the likelihood and severity of cyber attacks is increasing because of the growing dependence on new information technology platforms and interconnected devices and systems.

“Cyber crime is one of the most pervasive threats facing Australia, and the most significant threat in terms of overall volume and impact to individuals and businesses,” the ACSC said in its annual report last year.

Global communications company Inmarsat, in a 2020 report examining the rise of IoT in mining, said the majority of mining organisations were struggling to meet the security challenges presented by the IoT.

The report found that while respondents in their research were aware of the damage a cyber attack could trigger, the response so far to the threats had been minimal.

IMDEX Information Security Manager, Sameera Bandara, said cyber threats come from various sources, including hackers doing it for fun, criminal enterprises, competitors, and nation states.

“They use proxies and zombies to mask who and where they are and, even if we found them, prosecution would be a problem,” Bandara said.

IMDEX’s approach was that its systems needed to be secure to protect its data and that of its clients.

“IMDEX spends A$20 million ($15 million) a year on research and development,” Bandara said. “If competitors could get access to technology or tools in development by hacking our systems, the financial and reputational costs to IMDEX would be significant.

“But we also needed to protect our clients’ information by making our systems as secure as possible. We can then say if we have your data, then it is secure to a point where an attacker would have to spend considerably more resources to exploit than the value of the data.”

IMDEX supplies a range of technologies and tools that deliver data from exploration through to production, with the data uploaded to cloud-connected management tools and analytic software.

The company addressed the security issue by maintaining an Information Security Management System certified against ISO27001 security certification that covers:

  • Software development processes;
  • The product development lifecycle for its real-time subsurface intelligent solutions;
  • Manufacturing and deployment of products and technologies;
  • Client support processes; and
  • Information technology systems for supporting these activities and digital functions.

Bandara refers to it as the “gold standard” of data security – achieved after an assessment of its information security management system and processes.

“Many companies say they are aligned with the ISO27001 requirements without actually being certified and that’s because a lot more rigour needs to go into getting certified,” he said.

Maptek looks back on 40 years of mining software advances

Maptek is looking back on its roots, 40 years after geologist Bob Johnson laid foundations for the company to become a leading provider of innovative software, hardware and services for the mining industry.

In the mid-1970s, Johnson opened a small bureau service above a row of shops in suburban Sydney, New South Wales, Australia, to computerise coal seam drafting. That venture was the precursor to Maptek, which today develops, sells and supports innovative mining solutions to more than 20,000 users worldwide.

In 1981, Johnson then formed a company to allow customers to do their own computer work. That became Maptek, which today employs 350 staff in 18 offices to support a customer base including the world’s biggest mines across more than 90 countries.

“The transformation from startup to global technology developer did not happen overnight,” Maptek founder Johnson acknowledges, as he reflects on what defines Maptek today. “Innovation results from many small increments – it rarely happens from an epiphany.

“We started off by computerising the plotting of boreholes and mapping of coal deposits, which, until then, was a very tedious manual process. People were asking if it worked for all commodities, not just coal, and I realised we needed to put the software in the hands of the users. This was how Maptek came about.”

Johnson states that Maptek sets and continuously strivers to hit a high standard.

“Early computing in the 1980s was the breeding ground for automating manual tasks and it was a challenge to convince some people to replace existing practices,” he said. “Tradition dies hard!

“Maptek integrated multiple steps in the computerisation of mining applications. In this way we were able to own the workflow and it’s probably key to why our first customer, BHP Coal, remains a customer today.”

He added: “Do something different and stay in front is a guiding principle that remains a key business value for Maptek.”

Fast forward to 2021 where CEO Eduardo Coloma is embracing the vision, with a long-term technology development roadmap to deliver state-of-the-art solutions and exceptional customer experience, the company says.

“Maptek intends to stay ahead by continuing to be a disruptive influence and affect change for the betterment of the mining industry,” Coloma says.

The new Mining 4.0 paradigm has five characteristics, according to Coloma.

“Vast amounts of data; delivering that data to the right people at the right time; efficient data storage and universal access to it; using technology for computationally-intensive tasks; and data-driven decision making…all need to be balanced,” he said. “Add to that the challenges that the pandemic unleashed!”

He added: “With challenge comes opportunity. Miners are continually on the lookout for smarter processes.

“Maptek was conceived 40 years ago at the start of the digital revolution. Customers today have an ever-growing appetite for technologies to enable digitalisation and automation. They are not afraid of new technology and look to us to lead them.

“It’s not just technology that is fast-evolving, the people and organisations who consume it must also be open to adopting new ways of working. Digitalisation has provided the conduit for data to be universally accessible and dynamically updatable.

“We want to make sure our customers get the most of their data, sharing it across the organisation in such a way that everyone benefits. Data is being democratised!”

A data-driven culture embraces systems which are robust, repeatable and user-independent, according to Coloma.

“Crucially these systems meet the needs of a mobile, shift-based and geographically dispersed workforce,” he said.

“We build technology solutions that allow our customers to turn their data into knowledge and use that knowledge to support business improvement. We provide an automated decision support ecosystem…they provide their individual experience and intuition to make that knowledge relevant to their business.

“Already we are exploiting machine learning and digital twinning to connect the planning cycle to production performance data for comparing performance against plans.”

With fewer barriers to extending technology within mines, companies are looking at the entire value chain to make improvements. Maptek can help connect processes, functions and data to enable more accurate, predictable and profitable operation of mines, it says.

In closing, Coloma explains why Maptek is well placed to help mining companies use their data as a bridge to continuous improvement.

“Our unique culture, instilled by our founder Bob Johnson, gives staff a great amount of freedom to be innovative,” he said. “It fosters imagination everywhere and is the key to continued success.

“We give our customers the freedom to dream and ask for solutions to their real world problems.

“Our enduring relationships with customers are hugely important in our ability to solve these challenges. Bob mentioned our first customer, who remains a customer today. But accepting that change is inevitable is a reminder to us not to rest on tradition.”

Anglo American Platinum’s modernisation drive to continue into 2021

Anglo American Platinum says it is looking to deliver the next phase of value to its stakeholders after reporting record EBITDA for 2020 in the face of COVID-19-related disruption.

The miner, majority-owned by Anglo American, saw production drop 14% year-on-year in 2020 to 3.8 Moz (on a 100% basis) due to COVID-related stoppages. Despite this, a higher basket price for its platinum group metals saw EBITDA jump 39% to R41.6 billion ($2.8 billion) for the year.

As all its mines are now back to their full operating rates, the company was confident enough to state PGM metal in concentrate production should rise to 4.2-4.6 Moz in 2021.

Part of its pledge to deliver more value to stakeholders was related to turning 100% of its operations into fully modernised and mechanised mines by 2030. At the end of 2020, the company said 88% of its mines could be classified as fully modernised and mechanised.

There were some operational bright spots during 2020 the company flagged.

At Mogalakwena – very much the company’s flagship operation – Anglo Platinum said the South Africa mine continued its journey to deliver best-in-class performance through its P101 program.

Rope-shovel performance improved to 26 Mt in 2020, from 15 Mt in 2019, while drill penetration rates for big rigs increased from 15 m/h, to 16.7 m/h. Alongside this, the company said its Komatsu 930E truck fleet performance improved to 298 t/load in 2020, from 292 t/load in 2019.

These were contributing factors to concentrator recoveries increasing by two percentage points in 2020 over 2019.

During the next few years, the company has big plans to further improve Mogalakwena’s performance.

In 2020, the mine invested R500 million in operating and capital expenditure, which included commissioning a full-scale bulk ore sorting plant, coarse particle rejection project and development of the hydrogen-powered fuel-cell mining haul-truck (otherwise referred to as the FCEV haul truck).

First motion of the 291 t FCEV haul truck is still on track for the second half of 2021, with the company planning to roll out circa-40 such trucks from 2024.

Anglo Platinum said the bulk sorting plant (which includes a Prompt Gamma Neutron Activation Analysis and XRF sensor-based setup, pictured) campaign at the Mogalakwena operation is due to end this quarter.

The company’s hydraulic dry stacking project is only just getting started.

This project, which involves coarse gangue rejection before primary flotation for safer tailings storage facilities, is expected to see a construction start in the June quarter, followed by a campaign commencement and conclusion in the September quarter and December quarters, respectively.

On another of Anglo Platinum’s big technology breakthrough projects – coarse particle rejection for post primary milling rejection of coarse gangue before primary flotation – the company plans to start a campaign in the December quarter of this year and conclude said campaign by the end of the March quarter of 2022.

The company also has eyes on making progress underground at Mogalakwena, with a hard-rock cutting project to “increase stoping productivity and safety” set for Phase A early access works this year. This project is set to involve swarm robotics for autonomous, 24/7 self-learning underground mining, the company said.

Lastly, the company’s said the digital operational planning part of its VOXEL digital platform had gone live at Mogalakwena. VOXEL is expected to eventually connect assets, processes, and people in a new digital thread across the value chain to create a family of digital twins of the entire mining environment, the company says. Development is currently ongoing.

Looking back to 2020 performance at the Unki mine, in Zimbabwe, Anglo reflected on some more technology initiatives related to R26 million of expenditure for a digitalisation program. This included installing underground Wi-Fi infrastructure, as well as a fleet data management system to track analytics on primary production equipment. The company says these digital developments will enhance real-time data analysis, improve short-interval control and overall equipment effectiveness.

To step up mechanisation of its PGM operations at Amandelbult, Anglo American Platinum is also investing in innovation.

This includes in-stope safety technologies such as split panel layouts to allow buffer times between cycles, creating safer continuous operation and reduced employee exposure; improved roof support technology and new drilling technologies; a shift to emulsion blasting from throw blasting; and safety enhancements through fall of ground indicators, 2 t safety nets, LED lights, and winch proximity detection.

Meanwhile, at the company’s Mototolo/Der Brochen operations, it is working on developing the first lined tailings storage facility at Mareesburg in South Africa to ensure zero contamination of ground water. The three-phase approach adopted for construction of this facility will be completed this year.

MST Global on the rise of remote operating centres in mining

The spread of COVID-19 has seen renewed interest in remote operating centres (ROCs) and how they can be better managed to maximise efficiencies and reduce the number of personnel required on a mine site at a time, according to MST Global.

Rio Tinto was one of the early adopters of ROCs, introducing the world’s first fully autonomous haul trucks at its Pilbara iron ore operations in 2008 followed by the launch of an automated hub in Perth, Western Australia, in June 2010, which controlled its rail systems, infrastructure facilities and port operations, 1,500 km away from site.

In July 2013, BHP followed suit, opening an automated ROC in Perth for its seven Pilbara mines. Today, all the major players globally have introduced similar ROCs to their operations.

“As an underground mining technology provider, it has been an exciting time to be a part of the industry as we develop hardware and software solutions that help our mining partners through this digital transition,” MST Global said.

In a recent report, McKinsey & Company confirmed MST’s observations, citing, in the middle of the COVID-19 pandemic, mining executives had shown a greater interest in ROCs to unlock further value for their operations.

“As mining companies seek to mitigate the impact of the COVID-19 pandemic and act to safeguard employees, some have started to relocate around 15-20% of their on-site workforce by setting up ‘control towers’ to facilitate remote working (especially for non-frontline roles like subject-matter experts),” McKinsey & Company stated.

“This is helping the industry develop more resilient, responsive and flexible operating models suited to an increasingly uncertain environment.”

MST Global says it has seen this first-hand, with many existing and new clients reaching out to the mining tech provider to assist in streamlining their operations, and looking at ways to effectively increase remote work capabilities.

MST Global CEO, Haydn Roberts, said the discussion has also centred on the transition to a smart mine, where systems and processes in place on site work together to unlock greater value for ROCs.

“COVID has really focused our minds on the importance of having enough bandwidth underground and adopting IoT and digitalisation strategies so we can have a smart mine where our sensors and video cameras are connected, and we can operate in a remote way,” Roberts said.

“Remote operation centres have become really key because of all those things, so that’s driving the change.”

The challenges

Mining companies are admittedly still in the early stages of their digital transformation, continuously looking at ways to improve to deliver on objectives.

McKinsey & Company said: “Some companies have implemented cloud-based systems that aggregate site data into a single data lake that can be accessed, analysed, and visualised for decision support, creating a ‘room of screens’; other companies manage and actively control plant automation systems, fleet management systems, and remote-controlled machines from the ROC.

“The most sophisticated companies manage all these functions on a larger geographic scale, covering the value chain from end to end, optimising post-processed ore logistics and port facilities used by multiple mine sites within a region, with regional parts and supply warehouses monitored across multiple assets for supply-chain optimisation.”

McKinsey said while the technology adoption was “the easy part”, its research revealed a common challenge: “insufficient emphasis on and investment in developing a robust change-management strategy and subsequent implementation.”

It highlighted the importance for leaders to set clear expectations of bottom-line impacts from ROCs to measure value and the need for a new decision-making structure to allow ROCs to reach their full potential.

“Without a new mandate, a new way of working, and a new decision-making structure, the ROC staff will struggle to capture the frontline team’s attention,” the report stated. “And, although the ROC is implemented and functional, it never reaches full potential for value. Without a conscious focus on organisation, a ROC can be counterproductive, creating redundant organisational structures.”

It added careful consideration must also be given to data and systems reliability, location of primary physical storage infrastructure, back-up systems and having a robust cybersecurity approach to protect ROCs from potential threats.

“These decisions can impact connectivity, bandwidth, and latency, each of which must be sufficient to enable the ROC to effectively control on-site operations in real-time: for example, adjustment of plant processing parameters or remote control of mobile equipment and process optimisation tools, such as machine-learning algorithms,” it stated.

“With the right technology foundation, the ROC can function as the analytical centre of excellence, setting data standards, creating and updating analytical optimisation models, building analytics capability and driving partnerships to co-develop solutions aligned with the new planning process for optimising site-level profit. Such actions can move the organisation toward new ways of thinking about hierarchy, decision rights, and ways of working.”

Digitalisation: what this means for jobs

There was also the issue of jobs, and how transitioning to autonomous operations and ROCs will impact workers on site.

MST Global’s Roberts said from his experience, so far with ROCs, this wasn’t something the industry should be too concerned about.

“I know some people talk about a fear that we’re going to take people out of mining and people will lose jobs,” he said. “I actually see the exact opposite of that. I think it is going to bring more people together in more meaningful work, more productive relationships.

“We’ll focus on things that will bring a new lease of life to mines. Yes, we will remove people out of harm’s way and perhaps machines, but the amount of upside there is to actually work with these solutions, from AI to big data analysis to automating and adopting more smart sensors, this is going to create a more interesting future for a lot of people.

“Mining is not going away. We obviously have to adapt it and change it to these new technologies and solutions that we have available. The people that we’re bringing into this industry expect that.”

MST Global concluded: “At MST Global, we are proud to be helping our mining partners globally embrace the transition to the smart mine and ROCs – no matter where they are at in their journey – through our leading software and hardware solutions.

“Our brand-new software platform HELIX helps underground miners create a complete digital ecosystem underground, connecting all their hardware and third-party integrations into one single platform that provides real-time data anywhere, anytime, on-site or thousands of kilometres away in a ROC.”

Epiroc continues to build equipment order book in Q4

Epiroc continued to register strong demand for its equipment in the December quarter, with the mining OEM’s order intake increasing both in the underground and surface mining segments, the company reported today.

Headline numbers from the December quarter included a 1% year-on-year increase in orders received to SEK9.3 billion ($1.1 billion), a 5% drop in revenues to SEK9.8 billion, a 10% increase in operating profit to SEK2.2 billion and a higher operating margin of 22.6%, compared with 19.6% a year earlier.

In terms of its equipment, Epiroc said orders received increased 26% organically to SEK2.97 billion in the last quarter of 2020.

Speaking to IM shortly after the results were released, Helena Hedblom, Epiroc CEO, explained: “The equipment orders…were across our portfolio, and the good thing is there were not that many large orders in the quarter; it was many small- and medium-sized orders.”

This would imply the strength in equipment demand – which came from both the underground mining and open-pit mining segment – is broad across the industry, coming not just from the major miners.

This pattern was also seen in the September quarter of 2020 when the company recorded a 25% year-on-year organic increase in equipment orders in the period, with the majority of orders coming from small- to medium-sized contracts of, say, one or two pieces of equipment, Hedblom said at the time of the results release.

Looking at the wider equipment and service segment of the business – which provides rock drilling equipment, equipment for mechanical rock excavation, rock reinforcement, loading and haulage, ventilation systems, drilling equipment for exploration, water, oil and gas, as well as related spare parts and service for the mining and infrastructure industries – Epiroc said the share of orders from equipment in this segment was 43% in the December quarter. Service, meanwhile, represented 57% of the orders.

Epiroc said it expected demand, both for equipment and aftermarket, to remain stable in the near term, while cautioning: “Uncertainty, however, still remains regarding the COVID-19 development and any further related restrictions.”

In the results release, Hedblom said automation, digitalisation and electrification solutions were in high demand over the quarter, with the company connecting more and more machines over this time frame.

“We continue to win orders and we are proud of our market-leading solutions that are globally deployed and proven,” she said. “They enable increased productivity, safety and sustainability for our customers.”

When questioned about the planned acquisition of MineRP, announced late in the quarter, Hedblom said the combination of the MineRP platform with its own digital solutions would allow Epiroc to “become a better productivity partner” in a mine’s digital journey.

IM also got Hedblom’s thoughts on if there was a regional difference in the speed of uptake of ‘new technology’ in the face of the COVID-19 outbreak. She said: “I see this technology shift coming in a different light with the pandemic. Sustainability is coming in; digital tools are becoming more and more natural as we need them.

“There is maybe an acceptance that the technology is here to stay, is available and customers want to jump on this journey now. I see it across all regions, which is a bit different to how the mining industry has adopted new technologies in the past.

“We have good traction everywhere now when it comes to new technologies.”

And, on the subject of ‘new technology’ uptake, IM asked Hedblom if she saw any parallels between the evolution of automated equipment adoption in the mining sector – which started with solely new autonomous equipment purchases to improve operations and moved towards a combination of retrofits and new equipment as the technology gained traction – and how companies may look to leverage mine electrification underground.

She answered: “I think it is too early to say yet. If I look into the coming 5-10 years, conversion of existing fleet will be one way to speed up the electrification journey. That is also why we are investing and developing these types of products to allow us to offer retrofits as part of the mid-life rebuild process, for example.”

The company confirmed back in November that its battery-electric retrofit solution for diesel-powered machines is expected to launch in the March quarter of 2021.

LKAB selects IFS enterprise asset management solution as part of digital transformation plan

LKAB has asked IFS to deliver an enterprise asset management (EAM) solution capable of helping the company set a new world standard for data-driven mining, the enterprise applications company says.

To achieve carbon dioxide-free sponge iron production by 2045, LKAB recently launched one of the largest industrial investment plans in Swedish history.

To reach its productivity and environmental goals, the company has embarked on a holistic digital transformation journey to ensure business process transparency, consolidation and harmonisation of processes and data, as well as access to high-quality insights to drive improved decision making, IFS says.

“Launching a comprehensive evaluation process, LKAB scanned the market for a best-in-class EAM solution that could support its mission-critical mining operations while offering an open architecture for easy integrations,” the company explained. “Another key consideration was to equip its workforce with intuitive, easy-to-use mobile technology to ensure a positive user experience.”

Based on its capabilities in key areas such as maintenance and logistics, as well as its RESTful APIs based on the OData standard and browser-based user interface, the IFS cloud-based solution was selected by LKAB, IFS explains.

“The journey LKAB has embarked on will transform the global iron and steel industry and set new standards for how mines are digitised and managed,” Markus Petäjäniemi, Senior Vice President, Market and Technology, said. “To lead the industry toward more responsible, resource-efficient mining practices, we need the very best technology to make sure our people and assets are working efficiently and safely. IFS is an open solution that will connect to our technological backbone and support our current and future needs.”

Elni Kullmer, IFS Managing Director, Nordics, added: “This is a landmark agreement for IFS and we are honoured to have been chosen by LKAB to help usher in a new era of efficient mining. We have been supporting EAM processes in asset-intensive industries since the 1980s and we are thrilled to be able to bring our experience to bear on this exciting project.”

The IFS solution will be used by some 4,000 LKAB employees working in Sweden, England and Norway, according to the EAM vendor.