MANAGEMENT

Miners increase digital spend

New research from Accenture points to miners increasing their spending on digital technologies

Staff reporter

This article is 7 years old. Images might not display.

Based on a survey of approximately 200 mining and metals executives and functional leaders worldwide, the Digital Technology in Mining report shows that the convergence of information and operational technologies (IT/OT) and adoption of cloud computing are advancing the digital agenda, prompting the need for more-stringent cybersecurity measures.

Mining and metals executives said their companies have applied and will continue to apply digital technology over the next three to five years predominantly in mine operations, but also in exploration, mine development and other areas. Most of the investments in mining operations target robotics and automation, named by 54 percent as a top spending area, along with remote operating centers, drones and wearable technologies, each at 41 percent.

“As miners continue to face weak global demand, excess capacity and increasingly limited access to resources, the desire to innovate through digital technologies emerged as a key finding of our research,” said Rachael Bartels, global managing director for Accenture’s Chemicals and Natural Resources practice. “Cost reduction is still on the agenda for miners, but the focus is squarely on better performing operations. Digital technologies enable operations to adjust to changing geology and market conditions, while still delivering returns.”

Organization-wide, the most often cited benefit from current digital technology investments was improved workforce productivity, driven most by mobile/tablet devices (32 percent), automation of mobile and/or fixed assets (30 percent) and simulating physical environments (30 percent). Cost savings across the organization ranked lower as a benefit than improved workforce productivity in general.

The relatively early stages of adoption for certain digital technologies might make it a challenge to identify all areas of bottom-line benefits of digital. However, digital transformation could actually unlock USD $190 billion in value industry wide over the next 10 years, according to an analysis by the World Economic Forum with Accenture Strategy: “Mining and Metals Digital Transformation and the industry’s ‘new normal.’”

Overall, almost all executives (97 percent) said they were satisfied with their digital investments over the past 12 months, with almost two-thirds (64 percent) ‘relatively satisfied’ and one-third (33 percent) ‘extremely satisfied.’

Cybersecurity Measures

Asked to identify the top three barriers to gaining more business value from digital technologies, executives most often cited cybersecurity concerns (37 percent), followed by volatile commodity prices (29 percent), internal data management capability (27 percent) and lack of funding (27 percent).

However, executives cited cybersecurity as the most-widely adopted technology across the organization-wide (32 percent). In addition, 25 percent said they are testing pilot programs for cyber security, and 33 percent have developed or are defining strategies for it.

“As we see an increasing uptake of technologies like cloud computing, the Internet of Things and the convergence of IT/OT, the industry recognizes its rising exposure to cyberattacks,” said Amy Callahan, a managing director in Accenture’s Mining practice. “The data these technologies can provide will allow for more timely, informed and better decisions, but it’s crucial to ensure that the appropriate security is in place to manage cyber risk and protect critical assets across the value chain.”
Regarding IT/OT integration, more than half of the respondents (56 percent) reported that their organizations are considering merging their IT and OT departments in the next 12 months, which would advance this trend.

Mining and metals companies are also continuing to adopt cloud computing technologies broadly. Four in five respondents (81 percent) said their companies have implemented some form of public, private or hybrid cloud, and another 17 percent said their company is exploring the use of cloud technology.
 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production