MINING 4.0 HOW DO WE GET THERE?
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— The fourth industrial revolution has begun
“The adoption and implementation of the fourth industrial revolution is not an option, it’s a requirement for every mining organisation,” says Nik Gresshoff, Head of Mining for ABB Australia. “Firstly, sustainability objectives are simply not achievable without the interconnectivity that digitalisation and automation enable – these form the foundation of the all-electric mine. Secondly, miners need to leverage the operational efficiencies and productivity gains that digital and automated solutions provide to remain competitive.” Gresshoff’s opinion is neither radical nor singular. KPMG’s Global Mining Outlook 2022 states that the adoption of new technologies is “an important way of reducing carbon footprint” with 87% of executives surveyed for the report “believing that technology has a key role to play in solving ESG challenges” 7 . Similarly, Deloitte’s ‘Tracking the Trends’ in both 2021 and 2022 contend that the true power of digital transformation comes through interconnectivity and integrated operations – in other words, interoperability. In the 2021 report, authors ask and answer
the question: “Why is this important? It not only facilitates a cost advantage, but also drives more predictable outcomes, which creates long-term trust with key stakeholders. 8 ” They revisit the point again in 2022, arguing that miners need to make better use of digital transformation to drive understanding and efficiencies and unlock value from integrated operations 9 . As to whether miners have a choice from an economic standpoint, statistics speak for themselves. Analysis by McKinsey in 2015 established that mining productivity was down 28% compared with the decade before 10 . However, in 2020, they found that mining productivity had begun to reverse from this downward trend – particularly in the Oceania region where Australia is located – which they attribute to the adoption of new technologies and autonomous solutions to optimise maintenance 11 . In another McKinsey report, it is estimated that the implementation of digital technologies has the potential to save the mining sector $373 billion by 2025 through reducing waste, increasing productivity and improving safety 12 .
What does this say? That the modern mine needs to leverage the operational efficiencies that come from digital transformation to stay in the game. “
The big three imperatives
• Environment – The ‘burning’ need to address climate change, decarbonise and make sustainable mining a reality • Social – Achieve safety outcomes and improve worker wellbeing • Governance – Conserve resources, reduce wastage, and improve the efficiency of operations
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