While technology-enabled transformation shows great promise in the mining industry, some companies are still struggling to adopt digital advancements. These companies often forget two other important steps when adopting new technology. These are:

1. Embedding the change into the team’s culture.
2. Implementing management systems that support the new technology.

The adoption of digital technology can only truly live up to its potential when implemented with management and mindset changes.

Global consultancy McKinsey & Company lists three interdependent engines that drive either a transformational or small-scale technology-enabled operating system change. These are:

1. Harness technology, including digital, analytics, and automation across the organisation, to solve the key challenges of productivity, safety, customer satisfaction, and supply chain management.

An example McKinsey provides is a metal mine that used Industrial Internet of Things sensors combined with a centralised data repository and advanced machine learning, to boost chemical recovery from the extraction process by 10-15%. Sensors collected real-time data from the waste, and the machine learning model calculated the optimal parameters for recovering (for instance) sodium hydroxide, boosting performance above that of which operators were able to achieve previously. This saved millions-of-dollars’ worth of chemicals and reduced the environmental impact of the tailings.

2. Adapt the management systems (such as work processes) to enable the company to realise the potential offered by the new technologies.

A mining company that used advance analytics to increase yield and throughput would also need to modify how metallurgists, plant operators, and maintainers work together to embed the new tools and insights into their daily workflow. Otherwise, as McKinsey states, the actual operation of the plant does not change, and the bottom-line benefit can not be achieved. Operationally the organisation needs modifying too – with teams working together and not in silos to ensure they are not isolated from the data that drives innovation.

3. Overhaul the culture and capabilities to achieve a more agile, responsive organisation that can get value from and adapt to modern technologies.

A change-management program will help employees to understand how a technology-enhanced system will make their lives better, safer, and more productive. As McKinsey explains, a technology-enabled transformation calls for “a break from ingrained habits, and changing mindsets, behaviours and capabilities. This understanding has to be reinforced through formal mechanisms, and managers must model new behaviours.” Harnessing technology also means training employees and hiring new staff with advanced skillsets to fill new roles.

Keep transformation going

Tech-enabled transformation requires a continued and determined effort, and it’s important to keep at it. While there isn’t a silver bullet way to achieve goals, and some initiatives will work and others will not, it’s important miners start by looking at what will provide a high return on investment. Automated equipment, optimised scheduling and control, yield optimisation and digitilised planning are just some of the technological advancements that can bring significant business benefits when embedded effectively.

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Source: McKinsey & Company Metals & Mining