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March 2021 v| miningglobal.

com

Newmont:
The Future
of Mining
CIO Luis Canepari is
digitally transforming
the mining life cycle
FIND OUT MORE

Silvercorp:
Mining a Bright
Future in China
READ NOW

AI: The Power to


Discover, Operate, WOMEN IN
Maintain and Predict MINING
READ NOW FIND OUT
READ NOW

SupplyChain Digital Magazine is proud to launch


a celebration of women in Global SupplyChain.
Brought to you in association with:

A BizClik Media Group Brand Creating Digital Communities in SupplyChain


EDITOR'S LETTER

EDITOR-IN-CHIEF MANAGING DIRECTOR


DOMINIC ELLIS LEWIS VAUGHAN Is mining immune to COVID-19?
EDITORAL DIRECTOR EXECUTIVE ASSISTANT
That’s not to diminish the impact
SCOTT BIRCH JORDAN HUBBARD that the pandemic has had on
CREATIVE TEAM MEDIA SALES DIRECTOR companies and staff, but written in
OSCAR HATHAWAY MARK CAWSTON the context of some eye-catching
SOPHIA FORTE
2020 results recently released by
HECTOR PENROSE SALES AND MARKETING

SAM HUBBARD
DIRECTOR
Rio Tinto and BHP, and bumper
JASON WESTGATE
MIMI GUNN dividend payouts to shareholders.
JUSTIN SMITH CHIEF OPERATIONS
OFFICER
PRODUCTION STACY NORMAN You would have to draw the conclusion that, compared
DIRECTORS
GEORGIA ALLEN PRESIDENT & CEO with many industries, mining looks in good shape. Rising
DANIELA GLEN WHITE iron ore and copper prices have certainly played their
KIANICKOVÁ
part, fuelling cash flows, and operators have embraced
PRODUCTION
MANAGERS
remote monitoring and new technologies, such as
OWEN MARTIN wearables, which are enhancing efficiencies and safety.
PHILLINE VICENTE Analysts at Commonwealth Bank of Australia, Fitch
JENNIFER SMITH
Solutions and Capital Economics are now warning prices
PRODUCTION EDITOR are likely to fall in the second half of 2021 as policymakers
JANET BRICE
de-prioritise growth in China’s commodityintensive sectors.
VIDEO PRODUCTION But then again, countries embarking on infrastructure-led
MANAGER
KIERAN WAITE post-pandemic recoveries will need plenty of minerals; as
DIGITAL VIDEO
with so much of 2020, strategizing looks a difficult science.
PRODUCERS Whether the economic momentum is maintained or
SAM KEMP
reversed, the demand signs point towards production
EVELYN HUANG
MATTHEW EVANS growth. With soaring demand for lithium with the boom
TYLER in electric vehicles, and the rebound in Asia, there are
LIVINGSTONE
grounds for more optimism and growth.
DIGITAL MARKETING
EXECUTIVE
Yet with the industry responsible for 4-7 percent
KAYLEIGH of greenhouse gas emissions globally, pressure from
SHOOTER governments, investors, and society to reduce them
GRETA
ANDREJEVAITE will not let up. More electrification, decarbonisation and
partnerships will be essential. The to-and-fro with the
PROJECT DIRECTORS
GLEN WHITE
UK’s Cumbria coal mine project illustrates the challenges
LEWIS VAUGHAN of squaring economic and environmental matters.
MICHAEL BANYARD Smart executives will continue to prepare, not predict
STUART IRVING
KRIS PALMER – and focus their attention on digital transformation,
MIKE SADR automation and analytics, ensuring they are equipped
for all eventualities.
MINING GLOBAL MAGAZINE
IS PUBLISHED BY
DOMINIC ELLIS
dominic.ellis@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

Miningglobal.com 3
CONTENTS

07 Big Picture
Move over Tesla – and say hello to
the world’s largest EV Elektro Dumper

08 The Brief
By the numbers. Three of the best
for Glencore. Cumbria coal mine.
Ups and downs

10 Global News
Mining news from around the world
in the last month.
18
12 People Moves
Who is moving around the mining
employment world

14 Timeline
Rio Tinto & BHP, profit and earning
curves for the mining giants

16 Five Mins With...


Ren Zhengfei
28

36

16
4 March 2021
CONTENTS

48

72
18 Newmont
Making Technology the Future
of Mining

28 Ai in Mining
AI: The Power to Discover,
Operate, Maintain and Predict

36 Silvercorp Metals
Mining a Bright Future in China

48 Industry X.O
Autonomous Trucks Boost
Productivity and Attract Funding

56 CRU Group
Data-driven commodities digital
transformation

72 Technology
Smart mining era Benefits from
Digital Solutions

82 Source to Pay
Automation and Digital Key
to Post-COVID Procurement

56 88 Top 10
Women in Mining

Miningglobal.com 5
THE PROFESSIONAL
DRILLING EXPERIENCE
Drillon is a newly established drilling company with a
globally experienced, highly focused and motivated
multinational team from the drilling industry. With a
success-oriented team our aim is to give our clients
“the professional drilling experience”.

ADVERT PAGE
DRILLING CONSULTANCY

MEDIA SALE
EQUIPMENT SUPPLY

VISIT OUR SITE

CONTACT US

6 March 2021
BIG PICTURE

Elektro Dumper The Komatsu HD605-7 base machine is


powered by a 710 kWh lithium ion battery
and in the current operation, records diesel
Move over Tesla – and say savings of about 44.8t annually, equivalent
hello to the world’s largest EV. to 140t CO2 reduction.
It produces its own energy through
The Elektro Dumper is a converted regenerative braking on downhill runs
mining truck and product of a partnership and can motor up to 38kmh, while its
between Kuhn Schweitz and Lithium Stor- tyres alone are six foot high.
age, which can carry up to 62 tonnes of Turn to page 48 to read more on
lime and marl when operating at a quarry autonomous vehicles and how they
in Biel, Switzerland. are revolutionising mining.

Miningglobal.com 7
THE BRIEF
“We will have to create
deeper mines in the
future. We can’t send
BY THE NUMBERS
humans to these Kaz Minerals’ increased cash offer:
depths and automation
will be the only option”
Prof. David Sjödin,
Associate Professor of Entrepreneurship
640p 780p
and Innovation at the Luleå University of
Technology in Sweden
October February

2020 2021
READ MORE

“The mining sector


can only benefit
from adopting digital
technologies and data
analytics to optimise
the efficiency and
effectiveness of
mines” Three of the best for Glencore
Boris Ivanov, Production dipped in most categories
Global Commodities Expert
 for the mining giant in 2020 but not:

Zinc Gold Silver


READ MORE

“It’s possible for any Up 9% to Up 3% to Up 2% to


company to get a 1,170.4kt 916koz 32,766koz
good amount of
value from AI if it’s
applied effectively Did you know? 90% of mining executives
in a repeatable way”
continue to process data manually and
Michael Chui,
Partner, McKinsey Global Institute only 11% use a digital platform (The State
of Contractor Management in the Mining

READ MORE
Industry report from MCi)
8 March 2021
ACQUISITIONS
 XIMEN MINING
CORP.
has acquired the
Running Wolf gold
property located 20kms
west of Cranbrook in U
P
the Fort Steele Mining
Division in southern
British Columbia.

 GR SILVER MINING
has signed a definitive
S
UPS AND DOWNS binding Share Purchase
Agreement to buy
Marlin Gold Mining

Cumbria coal mine


from Mako, with the
transaction expected
to close by the end of
Background Last October, Cumbria
County Council voted 12-3 in favour of the
March.
MAR21
Woodhouse Colliery in Whitehaven, which  TACORA
will generate 500 jobs, bring much-needed RESOURCES,
investment and mark the UK’s first coal mine the iron ore and mineral
in 30 years. processing company
What’s the UK government’s position? They
didn’t overrule the decision, saying planning
decisions should be made at a local level
based out of Grand
Rapids, Minnesota, has
bought Sydvaranger
D
wherever possible.
What’s been the reaction? Environmentalists
Mining and its
subsidiaries. O
W
say the mine is incompatible with Britain’s
greenhouse gas emission targets – especially
with the Cop26 conference coming up in
Glasgow in November. That’s led Cumbria
County Council to back track and reconsider
 $2BN FINE FOR
NORNICKEL N
S
its planning permission decision. A Russian court has
What’s lost in the noise? The mine will ordered MMC Norilsk
actually produce coking coal that will be Nickel (Nornickel),
used for steel production – so it could be which was involved in
more emissions-friendly than importing a massive Arctic fuel
raw materials from overseas, plus have a spill last year, to pay
knock-on effect in supporting operations approximately $1.96
and jobs at Port Talbot. billion in compensation.

Miningglobal.com 9
GLOBAL NEWS
BRITISH COLUMBIA, CANADA

Kore Mining spin off

Kore Mining is to spin off its


British Columbia exploration
assets under Karus Gold
Corp, following overwhelming
shareholder approval, which
will now raise seed capital in
a rights offering.

MEXICO
NEVADA, WESTERN US
GR Silver Mining buys
Marlin Gold Mining Abacus starts diamond
drilling
GR Silver Mining has signed
a definitive binding Share Abacus Mining & Exploration
Purchase Agreement to buy Corporation is about to start
Marlin Gold Mining from Mako, a diamond drilling program at
with the transaction expected to Jersey Valley, within the Battle
close by the end of March. Mountain trend of north-central
Nevada. Four holes will be
drilled, ranging in depth from
250-300 metres.

10 March 2021
UK

Controversial Cumbria
coal mine gets go ahead
but uncertainty remains
INDIA
A controversial coal mine in
Cumbria is set to move forwards India’s Larsen & Toubro
following the UK government’s lands largest mining
refusal to intervene in the equipment order
planning process for the project,
meaning the country could have The Construction and Mining
its first new colliery in 30 years. Equipment business of Larsen &
Toubro (L&T) has secured one of
the biggest orders in its history
to supply 46 units of Komatsu
Mining Equipment to Tata Steel.

QUEENSLAND, AUSTRALIA

New safety sensors

New sensors made from silicon


carbide, under development
at University of Southern
Queensland in Toowoomba,
Australia, are 5-100 times
smaller than the width of a
single human hair. Six years in
the making, they can withstand
heat up to 600 degrees Celsius.

Miningglobal.com 11
PEOPLE MOVES
"I am truly
delighted and
humbled to
be given the
opportunity
to lead this
tremendous
company"

JAKOB
STAUSHOLM
FROM: RIO TINTO
TO: RIO TINTO

WAS: EXECUTIVE DIRECTOR


& CHIEF FINANCIAL OFFICER
NOW: CHIEF EXECUTIVE

The 52-year-old Dane replaced


incumbent Jean-Sebastien Jacques
in January. Prior to joining Rio
Tinto, Jakob was the Chief Strategy,
Finance and Transformation Officer
for the Maersk Group, with oversight
of the Group’s strategy, digitisation,
IT, legal as well as the transformation
and shared services functions.

12 March 2021
JACO CROUSE
FROM: DETOUR GOLD CORP
TO: AEX GOLD INC

WAS: CFO
NOW: CFO

Jaco Crouse has replaced George Fowlie


who has stepped down as the CFO but
remains on the AEX Gold Board as a Director.
A seasoned mining executive with nearly
20 years’ experience, the board intends to
propose Crouse as a director of the company
at the next annual general meeting.

CYNTHIA CARROLL
FROM: BAKER HUGHES AND PEMBINA
PIPELINE CORPORATION
TO: GLENCORE

WAS: NON-EXECUTIVE DIRECTOR


OF HITACHI
NOW: INDEPENDENT NON-EXECUTIVE
DIRECTOR

Cynthia Carroll has over 30 years’ experience


in the resources sector. She began her career
as an exploration geologist at Amoco before
joining Alcan, and held various executive
roles, culminating in CEO of the Primary Metal
Group, Alcan’s core business. From 2007-2013
she served as CEO of Anglo American.

Miningglobal.com 13
TIMELINE
RIO TINTO PROFIT AND
EARNING

& BHP
CURVES FOR
MINING GIANTS
TINTO
RIO

Underlying earnings Underlying earnings


for 2016:  for 2017: 

$5.1bn  $8.6bn

2016 2017
BHP

BHP Billiton Full year attributable


full-year loss 2016:  profit 2017: 

$6.4bn $5.9bn

14 March 2021
Underlying earnings Underlying earnings Underlying earnings
for 2018:  for 2019:  for 2020:

$8.8bn $10.37bn $12.4bn

2018 2019 2020

Full year attributable Full year attributable Attributable profit full


profit 2018: profit 2019:  year to June 30 2020:

$3.7bn $8.3bn $8bn

Miningglobal.com 15
FIVE MINS WITH...

REN
ZHENGFEI
16 March 2021
"In 2020, we illuminated one coal
mine, one iron and steel plant, and one
port. Over the next two to three years,
we aim to illuminate hundreds of coal
mines, iron and steel plants, and ports"
Ren Zhengfei established in the coal industry deliver more
Huawei with a capital of social value (other novel commercial
CNY21,000 in 1987. He Shanxi's
avenues the company is exploring
became CEO in 1988 and mines reduce include adopting AI for pig farming).
has held the title ever since staffing in fully
mechanized
Huawei is also working with industry
– and today has a net worth and intelligent partners to develop compact wireless
of around $1.5 billion mining
scenarios by
base stations that are resistant to
dampness, dust, and explosions,
While more synonymous with
consumer tech, Huawei has bold
60% and support a 3:1 uplink/downlink
bandwidth ratio.
and the number
plans for the mining sector – recently of workers Envisioning a more digitized era
opening an Intelligent Mining going down for coal mining, Zhengfei foresees
to mining pits
Innovation Lab in Taiyuan, Shanxi each shift by workers “will wear suits and ties at
Province, together with Jinneng work, with fewer workers, greater
Holding Group, Shanxi Cloud Era 10%- safety and higher efficiency.”

20%
Technology Co and Shanxi ZhiChuang The lab ultimately aims to help
City Technology Development Co. Shanxi's mines reduce staffing in fully
The lab will be staffed with 220 ICT mechanized and intelligent mining
and coal mining experts, seeking to scenarios by 60% and the number of
make breakthroughs in areas such as workers going down to mining pits
information networks, automation each shift by 10%- 20%.
enablement, intelligent sensing
technologies, and big data generated
by coal mines, as well as related
"Workers will wear
suits and ties at work,
ecosystem collaboration opportunities.
In addition to promoting digital
transformation of the global coal
industry, Huawei has announced with fewer workers,
its intention to act as "a technology greater safety and
higher efficiency"
enabler", working with partners to
create healthy industry and business
ecosystems and helping its customers

Miningglobal.com 17
NEWMONT

Luis Canepari
CIO, Newmont

18 March 2021
NEWMONT

Newmont:
MAKING TECHNOLOGY
THE FUTURE
OF MINING
How the world’s leading gold miner is digitally
transforming to rethink the mining life cycle,
unlock productivity, improve safety, reduce costs
and support sustainability

WRITTEN BY: PRODUCED BY:


DAN BRIGHTMORE GLEN WHITE

N
ewmont’s considered implementation The process of automation is well underway
of technology is a key part of the at Newmont’s Boddington Mine in Australia,
digital journey towards operational which will be the first open pit gold mine in
efficiency and sustainability across its global the world with an autonomous haul truck fleet
operations. Chief Information Officer, Luis (AHS). Boddington’s autonomous haulage
Canepari, is championing the company’s digital trucks feature rigorous safety controls to
transformation efforts as it seeks to embrace reduce employee exposure to potential
automation and electrification. vehicle interactions. Newmont is also executing
a robust people strategy at Boddington,
Automation providing opportunities for reskilling and
“The era of manual processes in mining is over,” redeployment of haul truck drivers to other
states Canepari. “Blasting, drilling, hauling, the roles supporting the AHS.
processes at mills – all will become increasingly
automated over the next 20 years. Whether Artificial Intelligence
we like it or not as an industry, that's where “Artificial intelligence and predictive analytics
we're going to have to go if we want to go hand-in-hand with automation,” adds
remain competitive.” Canepari. “Access to data is key for our

Miningglobal.com 19
NEWMONT

Luis Canepari: Newmonts biggest challenges

operations. Correlating our drill data with Rapid Discovery with IBM
the block modelling allows us to make faster Digital transformation has been a major
decisions based on real insights. If you look at undertaking for the IT department at
the success ratio for exploration in mining, it's Newmont. “The partnership with vendors like
pretty low; if we can improve that by a couple IBM, supports our work to consolidate our
of percentage points, it will have a significant systems and further realize the synergies we
impact on our reserves. With data being have across the business since the acquisition
generated across our organization, the ability of Goldcorp in 2019.”
to use artificial intelligence to tell us where our IBM was brought in through a rigorous RFP
next drill site should be is a game-changer.” process. “We demonstrated to Newmont
that we would bring top talent, and keep
Digital Transformation them there, to effect the changes needed
Compared to other industries, mining has been successfully and bring these two companies’
slow to adapt to new technologies. Canepari systems together across finance, master data
pledges Newmont is aiming to rethink the and supply chain management,” recalls Gene
mining lifecycle. “We’ve had a huge success Allen, a Partner at IBM Global Business Services.
with our first electrified mine at Borden, and “We had to learn how to dance together. We
we’re taking all the lessons learned from are both 100-year-old companies, but we used
projects like these, and making them part of Rapid Discovery, an Enhance Program Launch
our Newmont mining model. Every new mine and Agile methodology to help us deliver
we're building, we're trying to re-create that successfully together smoothly and efficiently.”
digital transformation experience from our IBM implemented Rapid Discovery to
other mines.” support this delivery. “We were looking at

20 March 2021
NEWMONT

the five-year roadmap for Newmont to plan


how everything should be sequenced and LUIS CANEPARI
budgeted to accelerate this digital journey TITLE: CIO
together,” explains Allen. Because change is
INDUSTRY: MINING
rapid in the mining industry, it was important
to identify the different constituencies in LOCATION: USA
Newmont and how the move to a digital core
should be sequenced to modernize, eliminate Luis Canepari joined Newmont
redundancies and sequence their systems in April 2019 as Vice President
changes in years to come.” and Chief Information Officer; having
Canepari highlights that Newmont most recently served as Goldcorp’s Vice
piggybacked on IBM’s M&A experience to President, Technology since 2012.
place all systems into one single landscape. As CIO, Luis leads Newmont’s
“Rapid Discovery was about bringing our key information technology organization and
stakeholders together across every business is responsible for driving and overseeing
function for the most optimal outcome.” enterprise-wide plans to further realize
value from Newmont’s strategic business
Operational & Technological Alignment and technology investments.
Canepari’s team are focused on catering to all Luis has a history of leading major
stakeholders, from the mining sites to the back transformation and innovation initiatives.
office. “We build trust and reliability. For us to He was honored with a 2017 CIO 100
enable automation, AI and push forward with Award for business and technology
this digital transformation our system needs innovation, and the 2014 Business in
to be reliable, even during a global pandemic, Vancouver Forty Under 40 Award.
and our networks need to remain operational Before joining Goldcorp, Luis was
at all sites, no matter how remote their Director of Engineering and Construction
locations,” he says. at AES Corporation, responsible for
leading major capital projects in Latin
America and recognized for his significant

“With the migration community contributions. Prior to


that, he held various IT leadership
of all our systems roles at AES and ExxonMobil

to the cloud, we’ve


Corporation. Luis holds an MBA
from Georgetown University. He

managed to shut
EXECUTIVE BIO

also holds a Bachelor in Science


in Systems Engineering
down five data from Universidad

centers already.”
Metropolitana. He is also
a Certified Information
Security Manager and a
Certified Information
LUIS CANEPARI
CIO, Security Auditor.
NEWMONT

Miningglobal.com 21
NEWMONT

The pressure of the global pandemic has


allowed Canepari’s IT team to test out new
ideas. “With so many of us working remotely
it's been the biggest experiment for remote
operations that we’ve ever had as a company,”
he notes.
“We have thousands of employees working
from home. It has completely shifted the
mindset from the idea that we all needed to
be sitting at the mine site. This past challenging
year has given us the opportunity to learn
how to make our operations more efficient.
Everything we’ve invested in, is beginning
SUSTAINABILITY to pay off. We have resilient networks and
a reliable infrastructure backbone that allows
Technology will continue to us to work remotely. And now that we have
support Newmont’s sustainability tested them to the fullest, we can factor these
efforts as the business looks to develop into our operations.
onsite renewable power generation and Working remotely is also enabling
energy efficiencies. It’s all part of a new Newmont’s IT organization to attract
ethos for the business spearheaded a more diverse workforce and overcome the
by CEO Tom Palmer. The work from challenge of what Canepari identifies as the
home/work from anywhere paradigm misconceptions around the risks of a job in
prompted by the global pandemic the mining industry. “By widening the net for
has seen Newmont, like many other outsourcing we’ll be able to attract even more
businesses, embrace proven methods talent to our IT organization.”
of business interaction offering the
flexibility that connects the boots on Strategic Partnerships
the ground to the boardroom. How the Consolidating the approach to partnerships
business is powered, both by people since the merger with Goldcorp has been
and fuel, is under constant review. vital for Canepari and his team. “At the end of
“Both new and existing mines are going the day, more than half of my IT organization
to significantly reduce our emissions is outsourced,” he says. “Therefore, it’s really
in the future. We have committed to important to work with the right partners to
DID YOU KNOW...

a 30 percent reduction in greenhouse create lasting collaborations that can support


gas (GHG) emissions by 2030, with an ERP and our business transformation. Our
aspiration of reaching net zero carbon partners are helping us drive the outcomes
emissions by 2050,” says Canepari. we’re expecting in the short term. They allow
“It’s one of our biggest priorities and us to scale and de-scale, depending on our
will be supported by the continued needs. Just as important is how they culturally
electrification of our mines.” fit with our organization. We aim to work with
companies who can easily adapt to our style
and understand our requirements for a higher

22 March 2021
NEWMONT

Luis Canepari: Newmonts Digital transformation

level of detail. It is that higher level of detail that


keeps our employees safe.” “Blasting, drilling,
To leverage automation and artificial
intelligence, a robust and stable network
hauling, the
is key. Newmont is working with Starlink
and other private LTE providers to enable
processes
connectivity across all areas of its mines and
at remote exploration sites across the globe.
at mills – all
“Starlink doesn’t rely on traditional ground aspect of mining
will become
infrastructure,” says Canepari. “This type
of satellite connectivity can deliver high-

increasingly
speed broadband internet ensuring the
low latency that can support our efforts in

automated over
remote locations.”

the next 20 years.”


Innovation in the cloud
“The migration to SAP S/4HANA and bringing
our infrastructure to the hybrid cloud - has
given us more agility; we can deliver projects
LUIS CANEPARI
faster and move more rapidly,” reveals CIO,
Canepari. “It also gives us the opportunity NEWMONT
to experiment with proven tools from
other industries. We’re getting out of the

Miningglobal.com 23
NEWMONT

Luis Canepari: Newmonts Latest Achievements

“Borden’s electric
underground
fleet eliminate
diesel particulate
matter from the
underground
environment and
lower greenhouse
gas emissions.”
TOM PALMER
CEO,
NEWMONT

24 March 2021
NEWMONT

infrastructure business and re-training our


team to move away from supporting servers
to focus on finding opportunities to make our
operations more efficient.”
Canepari adds that cloud adoption is driving
value by allowing him to deploy his team on
more meaningful projects. “With the migration
of all our systems to the cloud, we’ve managed
to shut down five data centers already.
We're starting to explore the possibilities
of Edge Computing and what that means
for our mines.”
BORDEN – ‘MINE OF THE FUTURE’
Technology is the future of mining
Mining companies are becoming technology In 2019 Newmont inaugurated
companies and Canepari is excited by the its Borden Gold Project,
chance to both boost production levels as Ontario’s mine of the future, featuring
well as ensure the safety of employees across state-of-the-art health and safety
the globe. “With more and more sensors and controls, digital mining technologies
and processes, and low-carbon
energy vehicles.
Anchored in a mutually beneficial
partnership with local communities,
Borden achieved commercial
production on schedule within budget.
At 1,000 square kilometres, Borden’s
land package represents additional
exploration upside, as the deposit
remains open at depth in a favourable
mining jurisdiction.
“Borden opened a new gold mining
district in Ontario and profitably
extended operations at the Porcupine
complex near Timmins,” explains
DID YOU KNOW...

Newmont CEO Tom Palmer. “In


addition, Borden’s electric underground
fleet eliminate diesel particulate matter
from the underground environment
and lower greenhouse gas emissions.
This will help reduce energy costs,
protect employee health and minimize
impacts to the environment.”

Miningglobal.com 25
NEWMONT

CYBERSECURITY

Cybersecurity has taken on greater


significance for Newmont in the
age of autonomous trucks and drills.
Canepari points out that, unlike securing
SAP or payroll data, safety is at stake.
“As CIO, I’m focused on how we ensure
the right controls in place to secure this
new technology, when just ten years
ago it wasn’t even on the agenda. We
need to provide true segmentation
across the network with innovation and
compartmentalization so we don't have
the entire company exposed at any
given time. A production system in Africa
needn’t be exposed to a risk that we may
have in Australia and so forth. We’re trying
to contain risk to smaller components and
manage it better.”
Canepari measures success more in
his team’s ability to respond rather than
DID YOU KNOW...

their ability to prevent. “It’s not just about


firewalls,” he says. “We must develop
the ability to quickly identify the risk, any
breaches, and respond rapidly to them.
That’s the biggest change in culture that
I see from a cybersecurity perspective.
It’s about really focusing on the response
time, and the recovery is paramount.”

26 March 2021
NEWMONT

“We had to learn how to dance together.


We are both 100-year-old companies, but we
used Rapid Discovery, an Enhance Program
Launch and Agile methodology to help us
deliver successfully together smoothly
and efficiently.”
GENE ALLEN
PARTNER,
IBM GLOBAL BUSINESS SERVICES

devices connected to our operations we can


analyze the data via the cloud in real time to
improve efficiencies and safety at every level.
The role of a CIO has changed significantly;
from providing systems to providing the value
that delivers safer working conditions.”
Canepari also sees it as his team’s
responsibility to enable the company to meet
its emissions reduction targets and allow
operations to become more environmentally
friendly. “As CIO, system abilities are part of my
DNA and I believe as a company, we need to
leverage technology to develop our systems to
better harness energy management, emissions
controls and water management as they will be
significant drivers in terms of the success of a
mining company over the next 20 years.”

Miningglobal.com 27
AI IN MINING

AI: The
Power to
Discover,
Operate,
Maintain
and Predict
28 March 2021
AI IN MINING

Artificial intelligence is no
longer in the realms of sci-fi
but an invaluable technology
tool for mining companies

C
WRITTEN BY: ontrary to the stereotypical
DOMINIC image of a traditional mine
ELLIS characterised by a large
workforce and slow-moving
processes, modern mines
are quickly becoming complex, machine-
intensive environments that centre their
operations around heavy equipment and
computer-driven technology.
Driving much of the changes are rapid
advances in analytics and AI tools, which
are improving planning and operational
efficiencies, mine safety and workflow
productivity as well as stimulating the
integrated supply chain and predicting
future outcomes.
For example, by using smart data
and machine learning, a single operator
can now remotely control several drill
rigs simultaneously, with autonomous
vehicles taking over pit-to-pit operations.
AI can also be used to identify new and
potentially valuable areas to mine. By using
pattern matching and predictive analysis,
AI programmes can analyse significant
quantities of geological data and identify
where to find resources.
Another major benefit of AI’s use in mining
operations is minimizing the ecological
impact of mining operations and lowering
the environmental footprint. Mining sites
can be easily monitored and environmental
parameters such as temperature and
groundwater tracked to assess the impact
of mining operations.

Miningglobal.com 29
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AI IN MINING
“The starting point of any
organisational strategy
should never be the
technology. Instead, it has
to begin with identifying
the business problems,
corporate objectives,
and strategic goals.”
BILL SCUDDER,
GM OF AIOT SOLUTIONS,
ASPEN TECHNOLOGY

Mining is a highly disruptive activity, Schmelzer said related to AI is the growth


operating in hostile environments, which in digital mining, instrumenting mining
requires significant investment and precise equipment with IoT and devices. Autonomous
drilling to achieve ROI. devices can make 24/7 inspections and raise
Cognilytica analysts Kathleen Walch and site safety. “We see the use of AI systems
Ronald Schmelzer, discussing the merits of helping to make mines safer, in the way
AI in a podcast, said AI can help at the outset inspections are happening. They can provide
by separating valuable minerals from debris, more frequent inspections and save a lot of
saving time and money. time in the inspection process.”
“One area where AI is already being used Walch said while we can’t “sugar coat” the
is in gold – it helps improve data targeting environmental damage that mining occurs,
for new deposits, analyse previous data cognitive technologies can help reduce the
collected, and improve geologists’ planning impact and focus minds on future land use
skills and capture new information from strategies. On a day-to-day, AI computer
existing data,” said Walch. vision solutions can spot discrepancies in
AI Today Podcast #80: AI in Mining -- real time, avoiding serious environmental or
Use Case Series | Cognilytica operational issues.

Miningglobal.com 31
AI IN MINING

Artificial intelligence –
is the mining industry ready?

Early days but adoption rising fast believes 2021 will be the year AI becomes
McKinsey’s Global Survey on AI in 2020 more mainstream. “There will be increased
found more organizations are using AI as deployment in edge devices, including
a tool for generating value, with highest cameras, thermographic cameras, radar
percentages allocated to product and and LIDAR sensors and entry point readers.
service development and service operations Additional algorithms will be developed,
(24 percent). greatly expanding the use and function as
Michael Chui, partner, McKinsey Global video surveillance transitions from a forensic
Institute, said it’s clear we’re still in the early tool to real-time analytics,” he said.
days of AI use in business with less than a In its Future of mining with AI paper,
quarter of respondents seeing significant Deloitte/Norcat concludes: “The growing
bottom line impact. “However, those seeing evidence of their benefits indicates AIbased
AI contribute more than 20 percent to technologies in the mining industry are here
earnings before interest and taxes are not to stay, allowing companies to make more
just from the tech sector. So it is possible accurate decisions faster, improve health and
for any company to get a good amount of safety, boost efficiency and ensure human
value from AI if it’s applied effectively in errors are almost negligible, all while helping
a repeatable way. We do think AI is worth create smaller environmental footprints.”
the investment, but it requires effective Bill Scudder, GM of AIoT Solutions at
execution to generate significant value, Aspen Technology, said there has been
particularly at enterprise scale.” much investment in AI technologies in
Tim Brooks, VP of Sales and Vendor recent years among capital intensive
Management at PSA Security Network, industries as they look to improve

32 March 2021
AI IN MINING

efficiencies and enhance processes. But BOX AI’s wide-ranging benefits:


the challenge can be bridging theory and
practical application. • Discovery processes and drilling
“Across the capital intensive industries, operations
this disconnect between an appreciation • Detecting defects and predictive
of the benefits AI can bring, and a lack of maintenance
understanding of how to extend those • Detecting driver fatigue, distracted
benefits across an entire organisation has behaviour and lane positioning
been especially acute. There is often a • Analyzing the energy buyer market and
divergence between the well-understood predicting operational outcomes
theoretical benefits of AI and the challenge • Improving workplace safety and
of putting these into practice across a whole monitoring the workplace
organisation,” he said.
“Over 2021, however, we would expect
to see this beginning to change. We will see a focus on business outcomes. Yet, even
industrial organisations begin to move to a though exploring and identifying industrial
more business first mindset. We expect to AI-enabled use cases may be a source of
see them increasingly applying AI technology fascination to some, the starting point of
to domain-specific industrial challenges with any organisational strategy should never be

Miningglobal.com 33
AI IN MINING

the technology. Instead, it has to begin with to working with Oqton and finding ways to
identifying the business problems, corporate expand our offering for increased customer
objectives, and strategic goals.” productivity by creating new products
Sandvik recently acquired a minority stake that take advantage of Sandvik’s extensive
in the privately owned American software know-how about manufacturing processes
company Oqton, a leading provider of and Oqton’s AI-powered manufacturing
AI-powered manufacturing solutions that solutions”, said Stefan Widing, President
allows manufacturers to manage, optimize, and CEO of Sandvik, which completed
and automate their workflows. the previously announced acquisition of
“This investment is in line with our US-based CGTech, a leader in software for
strategic agenda to broaden our offering in numerical control simulation, verification
digital manufacturing. We are looking forward and optimization, at the end of last year.

Case studies:
RockMass Technologies has deployed
the latest generation of sensors to
capture realtime data to identify
potential failure planes on rock surfaces,
using handheld hardware to analyze rock
surfaces and providing the data to the
user within minutes (18 times faster than
current manual methods).
Leveraging AI capabilities is at the
core of ThoroughTec’s simulator based
training platform, where wearable
sensors continuously monitor worker
behaviour, generating data that is
then automatically analyzed to spot
problematic behavioural trends and
recommend highlyfocused remedial
training in a simulatorbased environment.
Ionic Engineering’s use of machine
learning to vastly enhance image
recognition used in identifying the
copper grades reduces “to negligible”
the error rate compared to employees
doing the work.
Drawing on more than six years of data,
Shyft Inc. is using machine learning to
forecast energy peaks.

34 March 2021
AI IN MINING

“Those seeing AI contribute more than 20


percent to earnings . . . are not just from the
tech sector. So it is possible for any company
to get a good amount of value from AI if it’s
applied effectively in a repeatable way.”
MICHAEL CHUI,
PARTNER, MCKINSEY GLOBAL INSTITUTE

Five phases to Rare Earth Elements mining


There are five phases within REE mining:
prospecting, discovery, development,
operation/production, and reclamation. In
the operation/production phase companies
answer the question of how to mine, mill,
and process the discovered ores. It is here
that AI has the most impactful presence.
According to a recent research paper from
Pixeplex, The Kore Geosystems company
won $500,000 in funding for their idea of
leveraging AI in combination with installing
measurement instruments onto drill rigs
for real-time automated geological data
acquisition and decision making. This will
fast-track exploration campaigns and
vastly reduce costs. For Chinese mining
companies, this equates to efficiency and
informed decisions about which plots of
land they will use for drilling and which plots
they will reserve.
Ozius Spatial, a company utilizing machine
learning, has figured out practices to better
prevent environmental destruction – the
root cause of Chinese restraints on mining,
the paper adds. By deploying satellite
imagery and drones, companies don’t have
to be on-site and can use remote-sensing
algorithms, supported by machine learning, to
enable them to assess large tracts of land.

Miningglobal.com 35
36 March 2021
SILVERCORP METALS INC.

Mining a
Bright Future
in China
How the Canadian miner is balancing
profitability, social and environmental
responsibility, employee wellbeing and
sustainable development

S
WRITTEN BY: ilvercorp is an innovative and unique
DAN BRIGHTMORE Canadian mining company with roots in
the far east. Founder Dr. Rui Feng took
PRODUCED BY: his early geological studies in China before
completing his doctorate in Saskatchewan,
RICHARD DEANE
where he was drawn to Canada’s mining
industry. After settling in Vancouver, and
working on technical reports for junior
mining companies that were going public,
Dr. Feng fell in love with the idea of building
an entrepreneurial mining company. By
taking control of a listed shell company,
and using his network of contacts in China,
he set about finding attractive assets to
put in it.
Dr. Feng is a successful entrepreneur and
explorer with over 25 years of global industry
experience acquiring mining opportunities
worldwide. He was integral in discovering
Jinshan Gold’s CSH Gold Mine in China in
2002, which was acquired by China Gold
International. Dr. Feng founded Silver-corp
in 2003 and acquired early-stage projects
in China’s Ying mining district. Through

Miningglobal.com 37
SILVERCORP METALS INC.

discovery and development, Silvercorp


RUI FENG has become one of the most profitable
TITLE: CHAIRMAN AND CEO Canadian mining companies, with multiple
COMPANY: SILVERCORP METALS INC. mines in China.
“The Ying Mining District was well-known
INDUSTRY: MINING
for having high-grade mineralization at
surface,” recalls Silvercorp’s Vice President
Dr. Rui Feng is a successful Lon Shaver. “But, until Dr. Feng assessed its
entrepreneur, explorer, and potential, nobody had ever really cracked
mine builder with over 25 years of global the code to determine how to address what
mining industry experience. His passion were effectively nest-like swarms of ore
for discovery has led him to explore bodies with many narrow, very high-grade
and acquire mineral opportunities veins. Silvercorp brought a new perspective
worldwide. He was integral in discovering to the project in terms of how to explore
Jinshan Gold’s CSH Gold Mine in China and delineate enough material, in substance
in 2002, which was acquired by China and size, to begin a profitable, sustainable
Gold International. Dr. Feng founded operation. And that’s what the Ying project
Silvercorp in 2003 by acquiring early-stage was founded upon.”
properties in China. Through discovery
and development, Silvercorp has become Maximising opportunities at Ying
one of the most profitable Canadian A joint venture was originally established
mining companies, with multiple mines
in China. As a director and former CEO
of New Pacific Metals, Dr. Feng led the
“Mines are depleting
company to Bolivia in 2017 and acquired assets but, despite the
the Silver Sand project which has recently
led to a significant discovery. In addition
years of production,
to delivering value to employees and recent drilling results
shareholders through discovery and
development, Dr. Feng also believes a brought our inventory
sustainable operation requires innovation at Ying, in terms of
and more effective management.
He pioneered a reserves, back up
digital information
to roughly the same
EXECUTIVE BIO

management tool for


Silvercorp’s mines, level as in 2016, with
which has contributed
to improved a renewed 20-year
organizational mine life”
performance and
operational
LON SHAVER
profitability. VICE PRESIDENT,
SILVERCORP

38 March 2021
SILVERCORP METALS INC.

at Ying in 2003 by Silvercorp making a $5m is going to be,” explains Shaver. “Our last
investment to kickstart operations. The report was based on drilling up to June
mines across the property have remained 2016, and this report brings that forward to
self-funded ever since through operations December 2019. Mines are depleting assets
that have delivered profits of $480m to but, despite the production that took place
shareholders. A recently-published technical over that timeframe, drilling results brought
report, completed by AMC Consultants our inventory at Ying, in terms of reserves,
(AMC) in 2020, highlights a bright future back up to essentially the same level. We
for the mining of silver, gold, lead and zinc had a 20-year mine life that would have
at the Ying property. Shaver notes that in been reduced by the depletion that took
addition to the current inventory of reserves place, but that life has been restored to 20
of around 12 million tonnes there is also the years again.”
potential for further incre-ases if additional
drilling can convert known resources to Quality not Quantity
reserves, as well as identify more resources. Silvercorp currently operates six mines
“Everything in the report ties back to the across three of its four licences in the Ying
resources and then the reserves, because it’s mining district - SGX, HZG, HPG, LME, LMW,
upon those reserves that the mine plan was TLP. The Ying Technical Report confirmed
established, and that dictates the projected that Ying is proving to be a prolific producer.
economic contribution of what the mine “Over the years, we’ve established the ability

Miningglobal.com 39
10+ YEARS
Proudly supporting and advising
Silvercorp on resource/reserve
estimation processes and reporting
across its operations.
Industry leaders in geology, mining, and
geotechnical engineering - AMC Consultants’
due diligence and feasibility studies are relied
on by the world’s major investment banks and
mining companies.

“ AMC has been Silvercorp’s trusted advisor for


Mineral Resource and Mineral Reserve estimation
since 2009. With AMC’s continuing guidance,
we are now looking forward to yet further
streamlining our estimation processes for both “
internal site operations and external reporting.
- RUI FENG, CHAIRMAN AND CEO

MORE ABOUT AMC

amcconsultants.com
SILVERCORP METALS INC.

to define higher grades and prioritise those


grades during the mine’s life,” adds Shaver. YING 2020 TECHNICAL
“This of course brings the production to REPORTS – HIGHLIGHTS
a higher level in the earlier years, which
contributes more when calculating our Effectively replacing reserves
net present value. Recent drilling appears since the last report in 2017,
to have identified zones of traditional the latest technical report (carried
mineralization, with high grades and close out by AMC Consultants) re-confirms
to existing infrastructure, but also potentially a 20-year mine life at Silvercorp’s
a different type of mineralization that was flagship operation and shows:
the source of anomalous gold results from
drilling that occurred in the past.” • 18% Increase in Measured and
Silvercorp’s recent technical report also Indicated Silver Resources.
introduced the potential for a seventh • 4% Increase in Proven and
mining unit and the current Ying operations Probable Silver Reserves, on
have excess mill capacity. “Right now, Top of 21 Million Ounces of Silver
the existing six mines are operating at Produced between June 2016 and
sustainable production rates,” explains December 2019 at the Ying Silver-
Shaver. “We don’t really want to push lead-zinc Mining District.
them for much higher tonnage, if anything • In comparison with the 2017
we’re looking at creating opportunities Technical Report, Inferred Resource
for higher quality tonnage out of those tonnes have increased by 78%,
mines, and pursuing the development of and contained metal has increased
a seventh mining area, the DCG Project by 42% for silver, 38% for lead,
(which would be the first mine on the 32% for zinc and 450% for gold.

“The Ying Technical


Significant aspects of comparison
of Mineral Reserve estimates between

Report has further June 2016 (previous Technical Report)


and December 2019 (Ying 2020

confirmed our Technical Report):

ability to define • Increase in total Ying Mineral

higher grades and


Reserve silver, lead, and zinc grades
DID YOU KNOW...

of 7%, 2%, and 11% respectively.

prioritise those • Increase in total Ying Mineral


Reserve metal content for silver
grades during the and zinc of 4% and 8% respectively;

mine life”
1% decrease in total lead content.

LON SHAVER
VICE PRESIDENT,
SILVERCORP
Miningglobal.com 41
SILVERCORP METALS INC.

2003
Year founded

$166m
LTM revenue
in dollars.

1,200+
Number of
employees

42 March 2021
SILVERCORP METALS INC.

fourth licence). When that does come


online it may contribute to production
growth and flexibility in terms of the overall
operating plan.”
It’s early days, but Shaver explains there
was work done historically on the Ying
property’s fourth mining licence, which
shows the potential of the veins that
Silvercorp is looking to develop into new
production zones. “We’ve been driving

“Given the pressures of the pandemic


on the global economy, the metals
markets should benefit from the
fiscal stimulus being put forward. The
inflationary pressures we’re seeing
will be positive for precious metals”
LON SHAVER
VICE PRESIDENT, a tunnel towards that fourth licence and
SILVERCORP with recent drilling efforts we’ve hit some
interesting zones,” he confirms. “If it all proves
to be positive, the next steps would be to
develop additional access and infrastructure
to develop another mining operation.”

The Market
“Like every other miner in the metals
industry, we are in a commodities market
where all the producers are price takers,”
says Shaver. “The key focus then is how
to create and sustain an operation at the
low end of the cost curve, so that in good
times when prices are high, you make
money, but then when prices are low you
can survive those tough times, continue
to generate positive cash margins and
be self-sustaining.”
Shaver sees a strong future for precious
and base metals: “Given the pressures of

Miningglobal.com 43
SILVERCORP METALS INC.

THE ENTERPRISE BLOG

The Enterprise Blog (EBlog) is blog to read or comment on the daily results
Silvercorp’s social media platform under their responsibility.
for the transparent distribution and flow of With the Enterprise Blog, information
work-related knowledge across multiple collection, assessments are fair and timely,
locations within the business. In the system, and each team member is responsible
each of the mining stopes, development for their work distribution, retrieval, and
faces, or major pieces of equipment is monitoring has become transparent and
assigned a blog name. Daily results of onsite immediate. The knowledge collected by
inspection by responsible engineers are the frontline technicians or engineers
required to be published on their blogs. The freely flows throughout layers of the
results are listed in a structured data format management structure. Management have
DID YOU KNOW...

in a checklist table, containing information the incentive, and tools, to make prompt
and supporting photos. Related parties at and more accurate decisions that can be
different levels of the management team instantly delivered to responsible parties.
can directly access the daily blog for each The benefits of the system are that team
workplace, for first-hand information in member collaboration becomes easy, KPI
real time. Meanwhile, the EBlog system also assessments are fair and timely, and each
records when a manager has accessed the team member is responsible for their work.

44 March 2021
SILVERCORP METALS INC.

Silvercorp Metals Inc. Ying Mines

the pandemic on the global economy,


the metals markets should benefit from
“We trust the
the fiscal stimulus being put forward. The
inflationary pressures we’re seeing will be
expertise AMC
positive for precious metals, and silver will Consultants
benefit from that, along with the part it
plays in the electrification of society and brings on technical
its growing use in renewable energy such
as solar. At Ying there are many positives
reports and look
as the mining is relatively straightforward, forward to their
input on assessing
with good ground conditions, and little
mitigation needed. Metallurgy is strong and
our concentrates are in high demand from
smelters so we are in a good position to be
the viability of our
a sustainable producer of silver, gold, lead
and zinc.”
future projects”
LON SHAVER
AMC Consultants VICE PRESIDENT,
“AMC have been working with us for a SILVERCORP
number of years and understand the nature
of the ore bodies, the information we’re

Miningglobal.com 45
SILVERCORP METALS INC.

46 March 2021
SILVERCORP METALS INC.

“AMC have been working


with us for a number of
years and understand the
nature of the ore bodies,
the information we’re
collecting, how we collect
it, how it gets processed
and how we apply that
picture to the operations”
LON SHAVER
VICE PRESIDENT,
SILVERCORP

collecting, how we collect it, how it gets


processed and how we apply that picture to
the operations,” explains Shaver. “We record for the mining industry in China. “Across our
some of these nuances on our Enterprise mine sites we’re continually re-greening and
Blog; our in-house platform allows us to re-vegetating and right now we’re building
store, share and access information in real an aggregate plant within the Ying mining
time across the business. AMC have made district,” explains Shaver. “Working with the
a number of site visits and combined with community and local government we’re
the flow of information we can share they’re aiming to upcycle waste rock stockpiles from
in a great position to chart the process our mines into useful building materials.”
and come up with what we believe are Silvercorp’s involvement with local
reasonable conclusions for this latest report. businesses is creating economic opportunities
They’ve also worked with us on reports for in synchronicity with its mine life plan.
the GC mine. We trust the expertise AMC Setting the standard for others to follow
brings on technical reports and look forward in China’s mining industry bodes well
to their input on assessing the viability of for a productive and bright future for
our future projects.” the company.

A Sustainable Future
A holistic and sustainable philosophy is
key to Silvercorp’s growth strategy. From
reducing waste to minimising mining’s
footprint on the surrounding environment,
the company is proactive in its efforts to
lead the conversation around sustainability

Miningglobal.com 47
INDUSTRY X.O

AUTONOMOUSTRUCKS
Boost Productivity
and Attract Funding
The latest self-driving models are cuttings costs, raising
efficiencies and setting the foundations for fossil-free
mining operations in the mobile fleet sector

T
WRITTEN BY: he words ‘electric’ and ‘autonomous’
DOMINIC ELLIS are largely synonymous with compact
passenger cars to most of us but
technological developments are taking place
at top speed across the transport spectrum
– including in the large mining vehicle sector,
which has the almost unique capability
of combining scale and invisibility at the
same time.
As befits these novel times, this year’s
Consumer Electronics Show (CES) was not
only the first digital showcase but also marked
Caterpillar’s debut as it promoted its self-
driving fleet equipped with Cat MineStar and
data-sharing subscription product, MineStar
Edge. If nothing else, it raised the supersized
truck into consumer consciousness.
“People may ask why a manufacturing
company like Caterpillar has decided to
participate in CES,” said Denise Johnson,
Group President, Resource Industries. “The
real question is ‘why not?’ We’re proud of our
reputation for building some of the biggest,
most productive machines in the world. But
the technology that goes along with those
machines is built by Caterpillar, too.”

48 March 2021
INDUSTRY X.O

Miningglobal.com 49
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INDUSTRY X.O

Let's talk mining:


Caterpillar and saving the world -
CES Livestream

Caterpillar has been investing seat passenger planes – and


in the development of best- can move 4.91 trillion pounds
in-class mining technology of material.
The Cat 797F autonomous
solutions for more than 30 haul truck weighs in at “The CES show is filled with

284.6 tons
years, developing the building- innovators who are always
block offerings that surface and looking for the next technology
the equivalent of
underground mines use every breakthrough,” said Johnson.
day to improve consistency 15 “We’re proud to be on that
and efficiency, enable safer 189-seat passenger journey, too. But while we
planes!
operations and reduce overall continue to innovate for
operating costs. the future, the technologies
It’s been a long journey. The company’s Caterpillar has developed are doing real
first research into autonomous vehicles work and delivering real results to our mining
began in the 1980s, with prototype customers every day.”
autonomous Cat trucks running in a quarry CES wasn’t just a hardware-come-software
as early as the 1990s. The first official opportunity for Caterpillar but an opportunity
MineStar Command for hauling site began to attract more talent to its technology team.
operating in 2013 and today Caterpillar has “We are committed to making investments in
more than 350 trucks operating 24/7 on technology research and development,” said
three continents. Johnson. “We need the best and the brightest
The Cat 797F autonomous haul truck engineers, developers and tech experts to
weighs in at 284.6 tons, rising to 687.5 tons help us turn those investments into solutions
on a full load – the equivalent of 15 189- for our customers.” 

Miningglobal.com 51
INDUSTRY X.O

Autonomous truck benefits:

• Operations are up to 20 percent


more efficient
• Mines record up to 30 per cent
more productivity
• 24/7 operations with zero
‘lost time’ incidents
• Large upfront capital offset
by savings over time

Caterpillar Chairman & CEO Jim Umpleby


added that for many mines of a certain size,
most customers now want an autonomous
fleet. “We’ve had customers publicly state
that they’re seeing productivity increases in
the range of 30 percent, which is obviously
very significant to their bottom line. We have
about 340 autonomous mining trucks running
and expect to reach 400 by the end of the
year. We like to say that we have more actual
autonomous miles on our mining trucks than
any car manufacturer has out there.”
“We have about 340
Oxbotica secures autonomy autonomous mining
software funding
Oxbotica, a leader in autonomous vehicle
trucks running and
software, recently announced the completion expect to reach 400
of a $47 million Series B investment with
partners across the globe, led by bp ventures.
by the end of the year”
The funding will accelerate Oxbotica’s
commercial deployment of its autonomy JIM UMPLEBY,
software platform across multiple industries CHAIRMAN & CEO, CATERPILLAR
and key markets.
It follows the signing of an MoU between
Wenco International Mining Systems and the first Open Autonomy solution for
Oxbotica last year to develop a world-first the mining industry.
Open Autonomy solution for mining. Initial The system will provide customers
trials are underway, and the companies flexibility and efficiency in autonomous
are actively recruiting mining partners with mining deployment, allowing them to
appropriate testing grounds. It’s billed as operate any open standard-based vehicle

52 March 2021
INDUSTRY X.O

Caterpillar
Chairman &
CEO Jim Umpleby
- many mines of a
certain size, most
customers now want
an autonomous
fleet.

30%
increase in
productivity

340
autonomous mining
trucks running and
expect to reach

400
by the end of the
year!

and integrate it into their existing fleet, and operations while backed by a proven expert
meet growing demand for autonomous in the industry.
haulage trucks, which are projected to grow A wholly owned subsidiary company of
by more than 300 percent by 2023. Hitachi Construction Machinery, Wenco,
Wenco and Oxbotica both support an has 30 years’ experience in developing
open and interoperable ecosystem of technology solutions that assist mining
partners that integrate solutions alongside companies in maximising resource
existing mine infrastructure. Both companies value from their operations. This latest
believe this provides customers with the advancement builds on the vision of Open
greatest flexibility and control for integrating Autonomy – first publicly announced by
new solutions while reducing associated Wenco and its parent, Hitachi Construction
risks and costs. Machinery, at the Canadian Institute of
This approach also notably avoids vendor Mining, Metallurgy and Petroleum (CIM)
lock-in and offers customers the freedom to Convention in Montreal in May 2019.
choose preferred technologies, independent Andrew Pyne, Wenco President and
of their primary industrial systems. CEO, said it was confident that combining
Furthermore, it enables highly skilled Oxbotica’s proven capability in autonomy
autonomy suppliers that may be new to with its 30-year experience in interoperable
mining to integrate with customers’ existing fleet management systems for large mining

Miningglobal.com 53
INDUSTRY X.O

“We have the opportunity to develop an


aspect of fossil-free mining operations,
a step towards achieving a fossil-free
society and basic industry”
MARIA LINDBERG,
MANAGER, HEAVY ELECTRIFIED
TRANSPORT AT VATTENFALL

customers enables it to create the industry’s


first full-function Open Autonomy platform.
“Regardless of the strategies of other
industrial autonomy vendors, Wenco and
Oxbotica believe firmly in the principle
of open systems and consider it the
primary way to bring about our joint goals
of widespread adoption of autonomous
technology and safer, more productive
industrial operations. Our joint platform
will allow customers to choose any open
standards-based vehicle and integrate it
into their existing operations.”

Scania steps on autonomous pedal Electric truck tackles Arctic conditions


Scania – which has been testing self- Kaunis Iron is collaborating with Vattenfall,
driving trucks for mining transport in Volvo Trucks, ABB and Wist Last & Buss in a
Australia since 2017 – has the cab-less pilot project to develop a sustainable logistics
AXL fully autonomous concept truck in system with electrically powered heavy
its fleet, which is powered by renewable trucks functioning in -44 degree Celsius in
biofuel. Claes Erixon, Head of Research northern Sweden. Volvo Trucks is contributing
and Development at Scania, said the its own heavy truck, an all-electric Volvo FMX
model “changes the game significantly”. prototype, to evaluate how battery-electric
“The development in self-driving vehicles trucks including charging systems function in
has made great strides in the past years. We Arctic conditions.
still don’t have all the answers, but through Maria Lindberg, Manager, Heavy
concept vehicles like Scania AXL we break Electrified Transport at Vattenfall, said:
new ground and continue to learn at great “Our fossil-free electricity and services for
speed,” he said. Scania was recently granted charging infrastructure, where we install,
permission by the Swedish Transport Agency operate and maintain charging functions,
to test self-driving trucks on the E4 motorway play a self-evident role in the development
between Södertälje and Jönköping. of electrified transport, and we are very

54 March 2021
INDUSTRY X.O

Sandvik scoops
Global Product
Leadership award:
Based on its recent analysis of the global
pleased with this cooperation. Here, we mining automation market, Frost &
have the opportunity to develop an aspect Sullivan has recognized Sandvik with the
of fossil-free mining operations, a step 2020 Global Product Leadership Award
towards achieving a fossil-free society and for its advanced mining automation,
basic industry.” teleoperation and digitalization solutions
Vattenfall and Kaunis Iron signed a portfolio, AutoMine and OptiMine.
letter of intent to develop fossil-free and ”Sandvik is the only mining equipment
electrified mining operations at the iron and solutions company that was awarded
ore mine in Pajala, Sweden, in January. in our 2020 Class of Top 50 Digital Best-
"The Swedish mining industry is facing practitioners across the Industrial and
major changes to reduce dependence on Energy Space,” says Rohit Karthikeyan,
fossil fuels and develop climate-efficient Industry Analyst at Frost & Sullivan.
and responsible mining operations,” said The AutoMine system is an innovative
Klas Dagertun, CEO, Kaunis Iron. “Kaunis automation solution that comprises
Iron wants to take active responsibility AutoMine Underground and AutoMine
for this development, and that is why Surface Drilling, enabling customers
this collaboration with Vattenfall is to scale up the mining automation at
very important.” their own pace.

Miningglobal.com 55
CRU GROUP

56 March 2021
CRU GROUP

DATA-DRIVEN
COMMODITIES
DIGITALTRANSFORMATION
Will Blake, Director of Technology & Analytics at
CRU Group, discusses how data and data analytics
are driving change in commodities

WRITTEN BY: PRODUCED BY:


MATT HIGH CAITLYN COLE

T
he digital transformation of every Understandably, delivering such a
industry sector means that an comprehensive suite of services requires
immeasurable amount of data is a robust and innovative technology and
being generated by businesses, industries analytics strategy. Will Blake is responsible
and consumers worldwide every day. The for driving this strategy. Will is a highly
effective harnessing and analysis of that data experienced technology leader, having spent
can generate significant value to companies more than 15 years at CRU and, previously,
through the greater understanding and close to two years working as a geophysicist
insight of trends, and better prediction and in a seismic exploration team. Data has been
forecasting that allows robust strategies to an overarching theme throughout his career,
be delivered. as he explains: “Geophysics is a data intensive
The latter is where CRU comes in. The role that requires the handling of large
London-headquartered company uses data volumes of information – the oil industry was
to offer unrivalled business intelligence really one of the first that exploited the value
on the global metals, mining and fertiliser of data in this way, so that experience has
industries through market analysis, pricing certainly given me a greater understanding of
assessments and consultancy services. The the challenges around information and data,
content and insight provided by CRU gives as well as how we can effectively solve the
a complete view of the commodity market, issues our customers face.”
enabling operators and industry participants During his 15 years at CRU, Will has
to make critical business decisions. witnessed data, and the effective analysis

Miningglobal.com 57
CRU GROUP

CRU’s strategy on data gathering

“COMPANIES
of that data, play an increasingly important
role in the business strategies of customers.

ARE PRODUCING “It’s been a huge transformation,” he notes.


“Generally speaking, data is a lot more
REAMS OF DATA prevalent and is consumed from a host of
different and new sources, such as increased
AND, AT THE automation and so on. Volume wise, we’re

SAME TIME, USING


dealing with so much more information that
we analyse, so it’s a significant change.

A LOT MORE “Take the mining industry as an example,”


Will continues. “Companies are producing

TO IMPROVE THEIR reams of data and, at the same time, using


a lot more to improve their operations.
OPERATIONS” There’s a big increase in IoT devices at
mining sites and satellite geospatial analysis
for monitoring purposes, for example,
WILL BLAKE,
DIRECTOR OF TECHNOLOGY which help to boost productivity, eliminate
& ANALYTICS, unnecessary costs and allow for the move
CRU GROUP towards predictive maintenance. At the same
time, we’re seeing an acceleration in the drive
towards automated mining and self-driving
vehicles, which can operate around the clock.
Not only can they improve production rates

58 March 2021
CRU GROUP

and safety, but provide greater availability


of data and information to analyse.” WILL BLAKE
CRU has been operational for just over TITLE: DIRECTOR OF TECHNOLOGY
50 years. And while the company has & ANALYTICS
always been at the forefront of primary COMPANY: CRU GROUP
research and analysis, Will explains that the
INDUSTRY: COMMODITIES RESEARCH
exponential growth of data and innovative
technology has led to the company’s own AND ANALYSIS
digital transformation journey. “We started LOCATION: LONDON
as a paper-based publisher that would
publish thousands of industry reports Will has over 12 years of
each year. And, because we have clients experience in technology
in 90 countries worldwide, we’d have to across a range of disciplines including
transport that information to them by courier. data analytics, cybersecurity, digital
Similarly, the data collection was also quite product development and cloud
a manual process. infrastructure. He is currently
“What’s really changed is the accessibility Director of Technology & Analytics at
of data,” he continues. “Clients used to be CRU and has responsibility for digital
happy receiving a report once a year, or once development initiatives and global
a quarter, but now we’re no longer willing to technology services. He is also a
wait for that information – technology makes member of the CRU executive team
everything instantaneous, so our whole and has wider responsibilities across
cycle has had to change in terms of what the business including product
we produce and how we produce it. It’s no development and compliance. Prior
longer about pulling information together to CRU, he worked as
and presenting it to the customer, people can a geophysicist for a
often find that information easily elsewhere. seismic exploration
company in the oil
industry. He holds a
MSc in Geophysics
from Durham
University and a
BSc in Geology from
Bristol University.
EXECUTIVE BIO

Miningglobal.com 59
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“We’re now in an environment where data
is an absolutely critical asset—if you want “We’ve spent a lot of time working with
to have a competitive advantage and to CRU to help them democratize and
capitalise on any opportunities in the visualise their data and achieve real
market, you need to leverage all data consistency across the organisation—
available to you. It’s the most significant ultimately transforming sales revenue
cultural change in how people develop reporting and driving portfolio growth.
and scale companies. Just look at CRU is now able to more accurately
Facebook, Google and Amazon, they’re all forecast profit margin and influence how
hugely successful and all driven by data.” and what they sell. We are honored to be
a trusted partner in their digital
CRU Group, a valued Pyramid customer transformation and congratulate them on
and leading commodities analysis their tremendous success.”
company, has undergone a significant
digital transformation of their own. CRU pyramidanalytics.com
offers analysis, forecasting and pricing
services for the mining, metal and fertiliser
industries. As such, its business is built
around the effective analysis and use of
data. “We’ve been working with CRU for
roughly five years, enabling them to scale
and provide effective data to their
customers,” says Steve Cowell, Head of
UK & Ireland. “At that stage, the company
was embarking on its own digital
transformation and had a lot of data in
CRU GROUP

To be successful, we have to add value and


interpretation on top of that information,
which CRU is very good at.”
To manage this transformation and add
value, Will explains that CRU “pulled back to
the information and the content, rather than
focus around the technology, which people
do have a tendency to do. The latest tools
don’t necessarily matter that much, for us
the focus has always been the accessibility
of data and information, the understanding
of what our customers need to help them
make effective business decisions, and how
often and in what format do they need it.
Only once we have the answer to those
questions do we consider the technology
necessary to deliver on them.”
One essential implementation was a cloud-
first strategy, he explains. CRU consumes

62 March 2021
CRU GROUP

An insight into how CRU gathers


content for its consumers

“OUR CLOUD
STRATEGY
PROVED
TO BE VERY
RESILIENT AND
WAS A KEY
ENABLER IN
ALLOWING
BUSINESS TO
CARRY ON
EFFECTIVELY”
WILL BLAKE
DIRECTOR OF TECHNOLOGY
& ANALYTICS,
CRU GROUP

Miningglobal.com 63
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CRU GROUP

500+
sets and commodities
prices published
each week

300+
employees spread over
8 offices on 5 continents

40
different commodities
analysised

66 March 2021
CRU GROUP

content from a multitude of locations


globally, and by working in the cloud the
business is able to achieve the flexibility
and technical delivery to maximise on any
investment. Similarly, Will notes that the
business has focused on building on its
core in-house technical and data skill sets
in order to deliver effectively to customers.
“Data is pivotal, so we keep that expertise
within the business. We partner with other
companies on things that we don’t see as
core to our direct business, so networking
communications, front-end website
development,” he adds.
CRU specialises in market-leading
research built on robust and transparent

“FOR US THE FOCUS HAS ALWAYS


BEEN THE ACCESSIBILITY OF
DATA AND INFORMATION”

WILL BLAKE,
DIRECTOR OF TECHNOLOGY
& ANALYTICS,
CRU GROUP

methodologies. Regardless of specific sector


or operation, its customers typically use the
content and information provided to inform
critical business decisions such as whether
to enter a certain commodity market, for
example. It also offers price assessments
from a team of specialists in London, Beijing,
Mumbai, Pittsburgh, Shanghai, Singapore and
Santiago. Will explains that primary research
in these areas covers supply, demand, price
and costs analysis; the content is also
used to build proprietary models that
inform CRU’s forecasting under the strapline
of ‘where commodities meet economics’.

Miningglobal.com 67
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hello.global.ntt
CRU GROUP

NTT: supporting
global enterprises in
the new digital era

We speak to Mo Meah,
Client Partner at NTT
with 25 years experience
An insightsales
in the technology into how CRU efficiently
dealt
environment, onwith
the the global pandemic
company’s partnership
with CRU Group

“W E’RE
Joining ALSO
NTT in 2014, Mo Meah currently holds
Information provided by CRU helps
Group’s collaboration tools, which in turn has led
organisations navigate challenging market
LOOKING TO
the position of Client Partner at the company. to NTT looking at other areas of the business
“NTT is a global ICT provider with a revenue conditions. This hascloud
such as security beenand evidenced
making usemostof digital
of$11bn. As the 11th largest company in the recently events.in thethecompany’s
relationshipwork during
DRIVE A LOT OF
“So is moving in the right
world, NTT’s focuses on supporting global the global COVID-19 pandemic. Like all needs.
direction to support their future business
enterprise companies that are looking to utilise companies,
One of theCRU keyfaced
areas,the considering
challengethe of global
AUTOMATION
the new digital era of intelligent solutions, both pandemic that we’re currently experiencing,
locally and regionally, as well as globally. NTT shifting to aable
is being remote workingand
to support business
work with their
AND TO IMPROVE
operates in over 50 countries, working with model. remote
customers to build very long trusted relationships highlights,
“It’s been very
workers.
the ability“but as we
to allow
challenging,”
We were Willtogether
able to put
have offices
employees in Beijing
to work from home

OUR RANGE OF
as a managed service provider,” comments Meah. and at Shanghai,
very short which
notice,”both
he adds.
enforced home

DATA SOURCES,
working in January, we were better placed to
NTT’s relationship with CRU Group began four Meah details that NTT’s partnership with CRU
years ago, originating from an event hosted plan for any
Group potential
is one wheredisruption.
they have On been23able
March to build

INCLUDING
by NTT. “Cloud Expo allowed CRU Group to wea moved
assess who they could go to market and who around with them
the whole global
strong relationship.
to really
300 people
“We havebusiness
– tounderstand
home working
worked
where
– closely
andthey’re
SATELLITE
would support them in establishing a more agile going as a business and being able to address
it’s worked remarkably well. Our cloud
and robust network. We actually bid on XXXX at some of those issues in terms of having better
the time, and as part of that we effectively strategy proved totools be very
and resilient and was
ANALYTICS”
communication allowing them the data
delivered a brand new infrastructure for an a key andenabler
the voicein allowing business
to operate overtoone
carrynetwork
environment to support their business and oninterface. effectively.”
Our partnership makes their job a lot
consolidate their connectivity across the globe. easier becausehas
The company they can
also beenrelyengaged
on their trusted
Our network
WILL BLAKE, has enabled them to communicate in dedicated
partner to worry about infrastructure, which
more effectively
DIRECTOR OF TECHNOLOGY with both employees and allows themCOVID-19 analysisonto the
to concentrate better
key areas
customers,”
& ANALYTICS, comments Meah. understand
of actually how the virus
optimising andis impacting
being more effective
CRU GROUP commodities. “Disruption
in their business to supplyMeah.
roles,” concludes chains
As a result of this initial partnership, NTT has had has been significant,” Will states, “as well as
the opportunity to branch out and unify CRU

Miningglobal.com 69
CRU GROUP

70 March 2021
CRU GROUP

short-term demand reduction. Alongside Will. “We still have work to do to harness the
this, we’ve been tracking operational status volumes of data we need and make it more
of mines, smelters and refineries with accessible – it’s a never ending evolution in
our dedicated disruption tracker service, that respect. We have just purchased a new
which has been embedded in our existing data platform that will drive this growth and
products. Our economics team has offer a greater range of analysis. We’re also
been closely analysing the impact of looking to drive a lot of automation and to
this disruption on global GDP and other improve our range of data sources. The latter
economic indicators as our outlook shifts includes satellite analytics, which provides
from what’s happening now to what the an enormous wealth of information at a
future looks like for our customers.” global scale.”
As to that future, Will describes a rapidly “In terms of our business, there are two big
changing market that is showing the first signs trends that will drive what we do: increasing
of stability. Forecasting, he notes, always has electrification of transport and the changing
a degree of flexibility, but CRU is experiencing structure of power generation, and carbon
commodities customers seeking answers to emissions and environmental sustainability.
longer term questions, which demonstrates Both will contribute hugely to how our
the response to COVID shifting from a customers operate and they’ll form a key
survival mentality to one of strategically strategic area for us to move into.”
planning for the future.
For CRU, future plans revolve around
continuing to develop core services and the
implementation of new technologies, says

Miningglobal.com 71
TECHNOLOGY

72 March 2021
TECHNOLOGY

SMART MINING ERA


Benefits from Digital Solutions
Digital innovation is innovations that could transform and
strengthen the industry. However, an
shaping the mine of Accenture Consulting report found that 82
the future per cent of the mining industry is looking
to increase investments in technological
WRITTEN BY: DOMINIC ELLIS innovations over the next few years.
From AI and spatial visualisation data

O
to GIS systems and automated drones,
ver the past decade, the mining digital technologies are set to make
industry has faced increasingly mining operations around the world more
difficult scenarios to improve productive, efficient and sustainable,
efficiencies, raise safety and reduce costs, whilst significantly reducing the risks
whilst also demonstrating an increased involved and improving worker safety.
environmental and social awareness The global smart mining market size
among local communities. is expected to reach $24,047.6 million
The recent China gold mine explosions in 2027, from $9,256.7 million in 2019,
in Shandong Province were a stark growing at a CAGR of 13 percent over
reminder of the dangers faced by miners the next six years, according to Allied
working 400 meters below ground, Market Research.
even in today’s more safety-aware and Changes are now filtering through. At
technologically equipped 21st century. the end of last year, Epiroc agreed to buy
Against the wider challenges of 2020, MineRP, a software company specializing
the pressure to get the balance right has in increasing productivity for mines
only intensified and the pandemic has through integrated planning, execution
triggered many countries to re-assess the and analytics.
long-lasting impacts of their mining and “The combination of MineRP’s platform
metal projects. As a result, new processes capabilities with Epiroc’s digital solutions,
must be developed to meet the increasing partners and global presence has the
demand for materials and low-carbon potential to transform the way that mines
technologies. operate,” said Helena Hedblom, Epiroc’s
On all fronts, this is where the new President and CEO. “MineRP is a high-
digital era can offer solutions. quality software provider with significant
Traditionally, mining has been slow to experience of connecting mines from pit
adopt new technologies and embrace to port, and together we will continue to

Miningglobal.com 73
TECHNOLOGY

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TECHNOLOGY

“The mining sector can


only benefit from adopting
digital technologies
and data analytics to
optimise the efficiency
and effectiveness of
mines, boost asset
performance, reduce
risk and mitigate against
environmental concerns”
Shaping the future of mining
BORIS IVANOV
GLOBAL COMMODITIES EXPERT after COVID-19 | Axora
In a paper entitled The Digital Mine:
make mining customers’ operations even connected, optimised, sustainable, Prof.
more smart, safe and seamless.” David Sjödin, Associate Professor of
Axora launched an online Smart Mining Entrepreneurship and Innovation at the
resource centre to help companies rebound Luleå University of Technology in Sweden,
from, and thrive after, the global Coronavirus said: “We will have to create deeper mines
pandemic. The Smart Mining centre provides in the future. We can’t send humans to
the latest industry insights and access to these depths and automation will be the
digital solutions and technologies which only option. To be automation-ready,
mining companies can adopt to accelerate mines will first have to get digitalisation
their business growth, reduce wasted right.” The World Economic Forum has
investment, and avoid duplication. identified four key digital themes that are

Miningglobal.com 75
TECHNOLOGY

expected to be central to the digitalization “The current silicon technology can’t be


of the industry over the next decade. used in harsh environments because they
can’t survive a long time in conditions of
Safety sensors high temperature and corrosion,” Dr Dinh
A researcher at the University of Southern explains. “The sensors I have developed can
Queensland in Toowoomba, Australia, has operate in up to 600 degrees Celsius for a
developed new super sensors that could wide range of applications, including oil and
significantly improve mining safety, in another gas industries and aerospace technologies.”
clear example of technology redrawing the
conventional mining environment. Big data and spatial data visualisation
Designed to prevent injury and death on Smart mines are mines where the major
mining sites, Dr Toan Dinh’s sensors assets are digitized via embedded sensors
detect early mechanical issues in oil and gas that transmit data to a centralized location
pipelines while being able to withstand harsh through a wireless network. The value
and corrosive environments – an ability that of a smart mine lies in exploring the
has even caught the attention of NASA. clear and robust data available across
Dr Dinh, a mechanical engineer at the the mine workflow to provide real-
University of Southern Queensland, has time insights. Once analysed, the data
spent the past six years developing the can identify production issues, manage
sensors, which are made of silicon carbide. inventory and quality, track production
He says that they are five to 100 times and asset performance and costs. This
smaller than the width of a single human can help mining companies make optimal
hair, and that they perform "a thousand decisions to generate efficiencies across
times better" than conventional sensors. its production and operations.

76 March 2021
TECHNOLOGY

“The current
silicon technology
can’t be used in
harsh environments
because they can’t
survive a long time
in conditions of
high temperature
and corrosion”
DR DINH,
MECHANICAL ENGINEER
THE UNIVERSITY OF SOUTHERN
QUEENSLAND

Spatial data is becoming increasingly work in a mine without being in the field and
valuable across the mining sector, with for companies to train new miners remotely.
three-dimensional modelling, virtual reality In particular, developments in augmented
and augmented reality software’s enabling reality now allow miners to be trained using
companies to plan new mines without virtual simulators and provide an immersive
being on the ground. For example, three- experience – letting employees to prepare
dimensional modelling allows companies to for difficult events in a safe environment.
create a realistic model of a new mine, with This reduces costs, risks and negative
viewable depth perception, which enables impacts to the environment.
them to assess and test potential issues
before plans are deployed in the real world. Autonomous mines
In addition, these new technologies allow Mines have always been considered
individuals to experience what it is like to dangerous environments to work in.

Miningglobal.com 77
TECHNOLOGY

However, as the exploration of new deposits self-controlled machines to take charge


become increasingly complex, including of the operations in hostile environments.
lower ore grades, deeper deposits and This move will not only significantly
high-stress environments, the number reduce the threat to miners’ lives,
of injuries and fatalities in mining however, the rise of the ‘digital mine’ is
remains persistently high. This is where also set to boost overall productivity with
technological innovations offer a lifeline. machines able to work 24/7. China’s coal
The World Economic Forum projects that mines have been boosting intelligent
automation and robotics could prevent mining technologies to reduce accidents
10,000 injuries in the mining and metals with more robots working underground.
industries in the decade to 2025. The number of pieces of machinery
Through the implementation of equipped with smart mining technologies
AI-powered autonomous systems, reached 494 at the end of 2020, up 80
mining companies are now able to use percent on 2019. Nineteen kinds of robots

78 March 2021
TECHNOLOGY

“We will have to create deeper mines in


the future. We can’t send humans to these
depths and automation will be the only
option. To be automation-ready, mines
will first have to get digitalisation right.”
DAVID SJÖDIN
ASSOCIATE PROFESSOR OF ENTREPRENEURSHIP AND INNOVATION,
THE LULEÅ UNIVERSITY OF TECHNOLOGY IN SWEDEN

were working in underground coal mines Drones and surveillance


for mining, drilling and patrolling at the Mining by its nature has a negative impact
end of 2020, according to the National on the environment. Whilst this is an
Mine Association. unavoidable reality, mining companies can
The Syama underground gold mine considerably reduce this impact by tracking
in Mali became the world’s first fully how resources are extracted and disposed of.
autonomous mine operation. Designed For example, automated drones can be used
in partnership with Swedish engineering to monitor excavation and extraction projects,
company Sandvik, the mine operates with keeping detailed accounts on the spread
fully automated trucks, loaders and drills. of waste products and harmful materials. By
The fully autonomous operation means introducing an element of accountability,
that the mine can operate 24 hours a day, mining companies will become more
with all operations overseen from a remote mindful of their activities and assess and
operation centre. minimize subsequent knock-on effects.

Miningglobal.com 79
TECHNOLOGY

80 March 2021
TECHNOLOGY

On top of documenting the mine’s impact Future opportunities


on its surrounding ecosystem, drones can Without doubt, the ongoing Covid-19
also be used to assess pipeline infrastructure pandemic has highlighted how important
and retention ponds, whilst also providing technological innovation is to delivering
safety surveillance in hazardous areas and cost efficiencies, enhancing sustainability
asset management across multiple sites. By and providing new solutions to keeping
providing a detailed account of what cannot workforces safe across all sectors. The
be seen by eyes on the ground, drones are only mining industry is no exception.
set to become more important to the smooth Boris Ivanov, Global Commodities
and successful running of mining operations. Expert, said: “The mining sector can only
benefit from adopting digital technologies
and data analytics to optimise the
efficiency and effectiveness of mines,
boost asset performance, reduce risk and
mitigate against environmental concerns.
In addition, shifting human-run operations
to autonomous or semi-autonomous
remote-controlled mines will only work
to enhance the process along the entire
value chain.”
Technology is not just a factor in the
future of mining operations, it’s also
affecting the market output. For example,
the growing use of smartphones, tablets,
batteries and the push for electric vehicles
has led to a rise in demand for rare earth
elements and lithium.
“Ultimately, by delivering modern, safe
and productive mines, technological
innovations have the capacity to help
make mining a valuable enterprise. Now
it’s up to industry leaders to connect
people, equipment, data and insights by
harnessing digital technologies to drive
operational excellence,” added Ivanov.
In a rapidly changing world, mining
companies need to be more agile,
resilient, and transformative. Accelerating
the digitization of the mining industry has
several advantages.
The only question remains the speed
of adoption.

Miningglobal.com 81
SOURCE TO PAY

Automation
and
Digital Key
to
POST-COVID
Procurement

82 March 2021
SOURCE TO PAY

Data enrichment and


M
ost companies have some form of
automation in place in their current
advanced analytics are source-to-pay (S2P) operations
transforming source and the concept is certainly nothing new
to most leading companies. But depending
to pay processes and on how developed they are, what sort of
the way companies business initiatives are prioritised, and where
track data throughout budget is allocated, some organisations are
far further along in their automation journey
their supply chain and than others.
operations The global pandemic has also placed
pressures on procurement and supply
WRITTEN BY: DOMINIC ELLIS chains like never before.
Historically, what held back capable
organisations from automating further was a
lack of understanding of what full automation
looks like in practice and what this futuristic
S2P environment entails. But now, in a
remote-working world, digital efficiencies
are essential from the mine to the office.
The benefits of automation of the
procurement function are varied, but
typically alleviate staff from manual,
time-consuming tasks such as:
• Addressing user search queries
• Generating a purchase order
• Confirming three-way matching
• Routing and tracking requests
• Analysing supplier performance
• Flagging areas of increased risk
concerning supplier sanctions
As with any sourcing, once tasks such as
these are automated, your team can focus
on strategy and analysis, bringing value
to procurement and your organisation
as a whole.
Procurement leaders play a central role
in mitigating supply-chain risks, protecting
cash, enhancing productivity in operations,
and making strategic choices that will help
the company bounce back with a more

miningglobal.com 83
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Managing the operational and supply-chain


impact of the coronavirus

resilient and competitive cost Industry benchmarks


base, according to McKinsey. suggest that most
The steps that Chief organizations waste 3 to
Organizations
Procurement Officers (CPOs) waste 4 percent of their overall
take now can also cement their
positions as critical creators
3-4% external spend on excessive
transaction costs, inefficiency,
of their overall
of value and true strategic external spend and noncompliance. For an
on excessive
partners in the organization. transaction costs,
organization with an annual
It recommends: inefficiency, and spend of $2 billion, eliminating
noncompliance
• CPOs can consider rolling out that leakage could send $70
a contract digitization solution million a year straight to the
For an organization
that will allow them to map, with an annual
bottom line.
query, and monetize contract spend of Companies must identify
terms going forward.  $2bn the best targets for automation
• Rethink the supply chain - eliminating that within their own processes.
CPOs may need to accelerate leakage could send Organizations can do this by
the onboarding of new $70mn first evaluating the current
suppliers while working million a year level of automation they have
on a safe and efficient straight to the implemented, compared with
bottom line
qualification process. what is technically achievable
• CPOs can build resilience in the supply for each task in the source-to-pay process.
chain by leading a comprehensive analysis They can then estimate the value of
across the entire supply-chain life cycle.  closing each gap.

miningglobal.com 85
SOURCE TO PAY

This value will come both from the Two PRGX data and technology experts
amount of work that can be automated and recently discussed how analytics and data
from likely improvements in compliance, enrichment can help companies overcome
cycle times, and payment terms associated S2P challenges.
with each step. Any gains must be set against “Whether it is applied to factors such as
the cost and complexity of implementing True Net Cost or Days Payable Outstanding,
suitable technologies. Robotic process data enrichment and advanced analytics
automation and smart work-flow solutions have the power to transform how companies
are likely to be quicker and cheaper to track, categorize and analyze spend data,”
implement than sophisticated machine- said Daniel Ebert, Senior Manager of
learning technologies and cognitive agents, Analytics at PRGX.
for example.
The emerging picture of the end-to-end Procurement challenges during pandemic
process will provide a comparison of the COVID-19 has acted as a massive restraint
relative benefits of addressing each step on the agriculture, construction, and mining
within it, set against the relative cost and machinery manufacturing market in 2020
difficulty of automating those steps. as supply chains were disrupted due to

86 March 2021
SOURCE TO PAY

“Whether it is applied to factors such


as True Net Cost or Days Payable
Outstanding, data enrichment and
advanced analytics have the power
to transform how companies track,
categorize and analyze spend data”

trade restrictions and manufacturing activity to your customers to understand how


declined due to lockdowns imposed by their needs may have shifted
governments globally. Accenture recommends a five-point
Deloitte has highlighted four key areas as procurement list; put people first; secure
companies structure their procurement: the supply base; unlock funds intelligently;
• Visibility is precious: Enhance the visibility build resilience for the future; and innovate
of your supply network to identify risks and with purpose.
capacity constraints Across the world, costs are escalating.
• Supply is diversified: Assess the financial South Africa's mining industry estimates it
health and reliability of your suppliers, and will cost around R300 million to help the
strengthen the collaboration to leverage government roll out Covid-19 vaccines to
cost optimisation potential mineworkers and community members as
• Stock is rebalanced: Rebalance stock the country battles a surge in infections.
levels and reassess your category Company heads are adding up the collective
strategies to align with post-COVID costs of procurement, transportation, and
supply chain planning storage of the vaccines - but costs can fall if
• Customer demand is changing: Be close companies club together on logistics.

miningglobal.com 87
TOP TEN

88 March 2021
TOP TEN

WOMEN
IN MINING
Mining Global profiles ten women making a WRITTEN BY:
difference to the global mining industry through DOMINIC ELLIS
their leadership, advocacy, and abilities. All 10
women have been chosen from the 2020 edition
of the ‘100 Global Inspirational Women in Mining’
list from the Women In Mining UK Advocacy Group

F
ounded in 2006, Women in of executives and board members.
Mining UK is an advocacy They fill only about 12.9 percent of
group that promotes the C-suite positions in Europe, while
employment, retention, and in the US and Canada, they occupy
progress of women in just 11.5 percent of C-suite roles.
the mining industry. . However, they are more likely
Leveraging partnerships with to have better representation in
leading mining companies and executive roles more broadly, and
other industry participants, WIM on company boards.
aims to push the business case Mining Global presents 10
for diversity, inclusion, and the women leaders in the global mining
economic advancement of women industry who are shaping the way
in the sector. One of its key the industry moves forward, while
initiatives is the biennial ‘100 Global also providing inspiration to other
Inspirational Women in Mining’. women about the opportunities
Such initiatives are incredibly for success in this challenging and
important with women filling less demanding sector.
than one-fifth of leadership roles All 10 women have been chosen
across global mining companies, from the 2020 edition of the ‘100
according to a recently released S&P Global Inspirational Women in
Global Market Intelligence analysis Mining’ list.

Miningglobal.com 89
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TOP TEN

09
AMANDA LACAZE

10
CEO and managing director
Lynas Corporation

Although Amanda Lacaze has had


a diverse and successful career in
marketing and telecoms, she is perhaps
BONNIE LIU best known for leading the remarkable
CEO turnaround of Lynas Corporation,
GF Futures bringing the company back from a 99
percent drop in its share price.
Bonnie Liu has worked in the Lynas is an integrated source of rare
commodities market since 2002 and earth, being the only producer of
joined GF Future HK from Hong Kong scale of separated rare earths outside
Exchanges and Clearing. GF Futures of China, and the second largest in
operates as a futures brokerage company, the world. The company’s rare earths
serving customers in Hong Kong. Shortly deposit in Mt Weld, Western Australia
after stepping into the role of CEO, Liu is one of the highest-grade rare earth
convinced management to diversify their mines in the world; and Lynas also
business into bulks and other types of operates the world’s largest single rare
energy products within the sector. Driving earths processing plant in Malaysia.
the project, Liu oversaw everything The company’s success is testament
from designing the business model and to the work Lacaze has put in since
forecasting financials, through to building stepping in as CEO six years ago. The
the team and finding the customers. turnaround isn’t just limited to the
After three years of hard work, GF Futures balance sheet, with the company’s
has become the biggest iron ore house in female workforce growing from 51 to
the Chinese market and was rewarded by 120 – mainly in operational roles, while
the SGX as the best performing Chinese there is a strong focus on retaining
house (iron ore) for 2019 and 2020. and promoting qualified women into
positions of leadership.

92 March 2021
TOP TEN

08 07
NATALIA KAYBALINA GAY HUEY EVANS
Managing Director Chairman
Taseevskoye, Highland Gold London Metal Exchange
Natalia Kaybalina manages the Tasee- As chairman of London Metal Exchange,
vskoye mine in Siberia, one of the largest Gay Huey Evans has led a major
gold mines in the world. Born in Eastern technology infrastructure rebuild and
Kazakhstan, Kaybalina moved to Russia in steered LME’s diversity and inclusion
2009, working initially in the Trans-Baikal agenda and sustainability initiatives. She
Territory before moving to Moscow. also sits on a number of boards, is a Trustee
Kaybalina oversees the Taseevskoye of the Beacon Collaborative and Wellbeing
deposit, which includes two adjacent of Women, serves on Chatham House’s
sites – the Baley tailings project and 20th Century Committee, while she
the Sredniy Golgotay deposit. The is also a member of the US Council on
predominantly underground mining Foreign Relations. She serves on the boards
operation is staffed almost entirely by of Standard Chartered, ConocoPhillips,
a male team of about one and a half IHS Markit and HM Treasury.
thousand persons. Over the course of a 30-year career,
In addition to being a surveyor by Evans has worked within the finance
training, Kaybalina is also a sociologist, and commodity industry as both an
having completed a masters programme established market practitioner and
at Transbaikal State University’s School regulator, giving her deep expertise
of Sociology. across commerce, risk, governance,
policy, and regulation in capital markets.
In 2016, she was awarded an OBE for
services to the financial service industry
and diversity.

Miningglobal.com 93
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TOP TEN

05
AIDA DIOP NDIAYE

06
President
Women in Mining Senegal

A geologist by training, Aida Diop Ndiaye


is the president of Women in Mining
FLORENCE DRUMMOND Senegal and an activist who pushes for
Co-founder and CEO social progress through action. Since 2012,
Indigenous Women in Mining she has worked to promote women’s
and Resources Australia leadership, inclusion, and participation
in mineral resource governance. She
Florence Drummond is the co-founder has actively been involved in science
and CEO of Indigenous Women in and technology education for girls, and
Mining and Resources Australia, a a defender of women’s rights, as well as
network created with her sister Jessica, minority populations.
to showcase Aboriginal and Torres Strait Ndiaye is a founding member of Women
Islander women in the mining sector. in Mining Senegal and is also responsible
A Dauareb Wuthathi woman, Drummond for the portfolio of external relations and
is focused on working with the communications committee of Women
mining industry to create sustainable in Mining of West Africa (WIMOWA).
opportunities for Aboriginal and Torres She has ten years of experience in
Strait Islander people in Australia’s mining the extractive sector (mining, oil and
sector. Having joined the industry as a gas) which has allowed her to acquire
mine operator, Drummond aims to create skills ranging from exploration, to the
a platform for voice and visibility for governance of extractive industries
Indigenous women in Australia’s mining through the management
sector and globally. She believes that and development of
relations with host communities mining projects.
and indigenous people are
foundational to the industry’s
future, and she hopes to use
her perspective, experience,
and position to advance
that cause.

Miningglobal.com 95
TOP TEN

04
03
SERPIL DEMIREL
CEO
Esan

Metallurgical engineer Serpil Demirel


first began her career in the mining
ZENZI AWASES
industry in sales, and gradually President
moved up the corporate ladder into Women in Mining
leadership roles. She is known for her Association of Namibia
focus on developing company culture
and shaping that culture to meet the Zenzi Awases is the president of the
changing needs of both the company Women in Mining Association of
and the broader business environment. Namibia. A geologist with 15 years
Since her appointment as CEO, Demirel of experience exploring and mining a
has focused on preparing the company paleo-placer diamond deposit along the
for the future – profitable growth, southwestern coast of Namibia, Awases
sustainability, digital transformation, entered the mining industry almost by
research and development and accident, having dreamed of wanting to
innovation are particularly high on her be a lawyer.
agenda. Furthermore, she also is keen Since then, she has gone from strength
to ensure that women feel welcome at to strength, becoming a vocal leader,
Esan and has tailored recruitment and mentor and advocate for gender diversity
workplace policies in support of her in mining. Awases was named founding
ambitions to turn the company into a president of the Women in Mining
diverse, forward-looking entity. As a Association of Namibia (WiMAN) in
result, Esan currently has the highest April 2017, and in November 2019, was
percentage of female employees across elected to the Board of the Association
the entire Turkish mining industry. of Women in Mining Africa (AWIMA), as
the representative for Southern Africa.

96 March 2021
02
TOP TEN

EVA ARIAS
Executive president
Compañía Minera Poderosa

Eva Arias is the executive president


(board and company) of Compañía
Minera Poderosa in Peru. Although
coming from a family with a long
history of being involved in mining,
Arias is originally an architect by
trade. Early on her career, she, along
with two friends, opened a small –
but successful – architecture and
construction company. It was only
in 1977 that she decided to join her
family’s mining business and set about
carrying on her father’s legacy.
As executive president, Arias focuses on
preparing her company, workforce and
industry for the many challenges that are
rapidly converging. These include social
challenges around the mine’s relationship
with its community, government and However, the most challenging moment
workers; the challenges around operational of Eva Arias’ mining life has been driving
efficiency with minimal environmental Poderosa’s recovery from crisis, where
impact and the highest possible safety within three five-year cycles, she oversaw
standards; and the technology challenges the evolution of the company from a
highlighted by the pandemic, where bankrupt entity to the most profitable
ways of working and living have been company in Peru by 2019 – not just in
transformed completely. mining, but across all sectors.

Miningglobal.com 97
TOP TEN

98 March 2021
TOP TEN

HILDE MERETE AASHEIM


President and CEO
Hydro

Hilde Merete Aasheim became president she became executive vice president of
and CEO of Hydro – the world’s largest staff functions and corporate services in
integrated aluminium business – in StatoilHydro.
May 2019. Prior to the company’s In her role as president and CEO of
reorganisation of business areas in March Hydro, she is focused on the company
2009, Aasheim served as executive playing an important role in the global
vice president for the Aluminium Metal green transition, stating that while
business area since November 2008. Hydro has amongst the lowest carbon
She joined Hydro in October 2005 as footprints for aluminium production in
executive vice president for Leadership the world, she intends to lower it further.
and Culture (human resources, health, Aasheim adds that the mining industry
environment, safety, and corporate needs to ‘walk the talk’ when it comes to
social responsibility). In January 2007, sustainability by educating consumers
she led the planning of the integration and encouraging them to demand more
between Hydro’s oil and gas activities information about the origin of the
and Statoil. When the merger closed, materials they are buying.

Miningglobal.com 99
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