Digital Mining

Jeffrey Dawes PhD.

President & CEO
Komatsu mining Corp.

Comminution 2019
Lima, Peru

Introduction

SLIDE 1 – Comminution 2019 Title Page

Thank you for being here today. I’m excited to share with you Komatsu’s vision of our
future together.

SLIDE 2 – Komatsu Title Page

The bottom line is that we believe mining is here to stay. Mining is part of a holistic
approach to a circular economy in which we responsibly take from the Earth, and then
give back, helping society progress in a balanced and sustainable way.

The key to doing all of this, is full mine optimization – maximizing the entire process,
minimizing waste, and keeping all people out of harm’s way.

In this time of great transformation – and opportunity – the industry requires innovative,
collaborative solutions to drive productivity, sustainability and safety.

We believe that success can only be achieved by increasing collaboration. Together, we

can optimize the way we mine for a sustainable future.

A Value Proposition

SLIDE 3 – First video

As you know – but society at large is still learning each day - mining is necessary to do
anything and everything modern life requires. Essential minerals are used to create the
clothes you wear, toothpaste to brush your teeth, and create phones, computers, cars,
roads, schools and more.

We all need to help make clear that minerals are essential to the development and
production of all energy sources.
Comminution 2019 – Digital Mining – Jeffrey Dawes

- 12% of the world’s electricity is generated from mined uranium

- More than 40% is generated from coal
- Even newer renewable energy sources require mineral resources. Did you know it
takes more than 15 different types of mined metals to make solar panels? And that
582 tons of coal are required to make the steel and concrete needed for a 2-
megawatt wind turbine?

- A Komatsu Joy continuous miner can produce that coal in about 30 minutes and a
Komatsu Joy longwall shearer can do it in less than 10 minutes, efficiently
producing the minerals required to power these new energy sources.

- A Komatsu P&H 4800XPC rope shovel can produce that coal in just 6 1/2 minutes,
efficiently producing the minerals required to power these new energy sources.

If it’s not grown, it’s mined. So together we must find ways to sustainably produce these
essential building blocks of modern life.

An Unsustainable Trajectory

SLIDE 4 – Unsustainable Trajectory

Unfortunately, we are also faced with declining ore grades, forcing us to look further and
deeper for mineral seams.

This also means increasing waste and water usage, and greater effort to meet demand.
We are going deeper into the earth to produce the essential minerals society needs,
creating greater risk to both people and our environment.

This is an unsustainable trajectory that we need to change.

The Digital Revolution of Society

SLIDE 5 – Digital Revolution

Fortunately, we are addressing these issues. We’re in an exciting time for our industry
right now where technology and innovation are intersecting with social trends and
demand, bringing about a step-change and a very bright future for mining.

(CLICK)

The digital revolution of society has impacted absolutely everyone. We see former third-
world countries skipping the industrial revolution entirely, going direct to digital.

This increased digitalization is rapidly transforming the mining industry as well.

In the process, mines are using data to:

2
Comminution 2019 – Digital Mining – Jeffrey Dawes

- Find patterns, bottlenecks and opportunities

- Streamline and eliminate wasted efforts and
- Identify issues before they happen

Advancements in data analysis and connected systems will help us drive all other
innovation in our industry.

(CLICK)

Autonomy, especially in the auto industry, is getting plenty of media coverage these days.
What you don’t hear much about, but we all know, is that mining has been implementing
autonomous technologies for years.

Our industry, and Komatsu in particular, has been on the forefront of automation for more
than two decades. We see autonomy as a key component to the future of mining,
balancing the need for natural resource sustainability with the demands of society.

Autonomy is the gateway to a fully connected, intelligent mine ― for longer life,
productivity, and unsurpassed safety.

(CLICK)

Electrification is another general technology trend bringing about transformation.

Shifting from diesel powered equipment to hybrid technologies and fully battery-powered
equipment is significantly reducing:

- Carbon emissions
- Environmental footprint and
- The drain on traditional energy sources

Much of mining’s surface equipment has been electric for decades, but as battery
technology continues to rapidly accelerate in other industries, we have the opportunity to
apply those innovations in mining, especially underground to improve air quality and
environmental health.

Other trends in sensory technologies, robotics and gamification can help us drive truly
disruptive change in mining that will dramatically shift the ways minerals are extracted.

(CLICK)

The industry is rapidly driving towards precision technologies that minimize mining’s
footprint in responsible, sustainable ways. Some examples we are already seeing include:

• Highly advanced drone technology to more precisely determine the location, size
and shape of ore deposits

3
Comminution 2019 – Digital Mining – Jeffrey Dawes

• Real time sensing technology to extract only what is needed and

• Mechanical cutting systems that replace drill/blast methodologies to minimally
disrupt the surrounding environment

(CLICK)

And of course, our ultimate need is Safety and removing people from harm’s way. We
are mining more than ever in history and we are doing it in more remote areas, deeper in
the earth. This creates far greater risks than in the past and challenges us to ensure we
are considering safety in all innovation, design, and operational practices.

Integrated Mining Solutions

SLIDE 6 – Mine Map

With the integration of our brands (P&H, Joy, Montabert, MineWare, Modular and
Komatsu), we can offer a full line of mining products, services, technologies and solutions
designed to help our customers achieve their goals in a safe and sustainable way.

Our vision is to help customers optimize their entire operations with connected
technologies, data-driven decision making and automation. And, to do it in a way that
minimizes our impact on people and the environment.

Working Together

SLIDE 7 – Lasting Partnerships

But we can’t address these challenges and drive towards this future alone. Only through
lasting partnerships can we make the significant changes needed to progress sustainably.

We believe that long term success will be achieved by increasing collaboration across
our unified global mining ecosystem.

By working together, we can:

- Amplify our investments in new technologies

- Share the knowledge and expertise needed to bring these ideas to life
- Ensure that all stakeholders have a voice in defining the future of mining
- Better meet the rapidly evolving needs of society

Mine optimization

SLIDE 8 – Mine Optimization

4
Comminution 2019 – Digital Mining – Jeffrey Dawes

When it comes to a given mining operation, how can we optimize across the entire value
chain? For each operation, the answer is likely different. That’s why we believe we need
to think of optimization on a sliding scale.

(CLICK)

On one end are your Tasks – the individual pieces that help get the work done.

On the other end, is System optimization. This is the holistic view of an entire mine site
or of all operations from mine to port.

In the middle are the Processes – these are the connections between pieces that link
Tasks to Systems.

But where do we start? And how does it all come together? The answer depends entirely
on each operation’s specific needs.

(CLICK)

One answer is to start with Tasks since they are the building blocks. These are individual
machines, the small data, the tangible items. To optimize at the task level, we start by
visualizing one piece of the puzzle at a time.

Examples of task optimization include machine productivity, safety, or data monitoring. It

could be also be operator training or consumables or collision awareness.

(CLICK)

Another approach is to look at the Processes. Often referred to as Mine to Mill, or even
a bigger picture – Pit to Port – this includes every major activity in the mining process
from planning to customer delivery.

Optimizing at this level usually means looking at the various subprocesses, or areas
within the mine.

(CLICK)

By chunking and visualizing the interaction of some of the puzzle pieces, and how they
work together, we can often improve productivity, increase safety and lower costs.

(CLICK)

5
Comminution 2019 – Digital Mining – Jeffrey Dawes

Examples of Process Optimization may be Drilling, Blasting and Excavating an open pit;
Loading and Hauling in a hard rock mine; Collision Avoidance between multiple machines;
or Cutting, Loading and Crushing soft rock underground.

(CLICK)

Another possible entry point is the big picture – starting by looking at the entire System.
This is your big data and data flow between various parts of your mine operation.

To optimize at this level, we need to step back and visualize the interaction between all
pieces of the puzzle.

This may include cloud computing analysis, connected business systems, full fleet
management through an open data platform or contention management at an entire site.

(CLICK)

We all tend to dive in where we feel more comfortable, but we must keep in mind that
optimizing at one point, in isolation, may cause a ripple effect through the system. For
example, if I am trying to optimize the load-haul process by blasting everything to the size
of tennis balls, what effect will that have on the semi-autogenous mill efficiency?

That’s why long-term, we have to partner together to balance our efforts and optimize the
entire value chain.

Working together, with our customers, and the other links in the mining value chain, we
have developed new technologies - leading the industry in Safety, Automation,
Digitalization and Sustainability innovation.

Let’s take a look at each of these Innovation Focus Areas in turn.

Innovation Focus Areas

SLIDE 9 – Mine Optimization - Safety

Safety

Our first and most important innovation focus is safety. Obviously, the safest solutions
would be fully autonomous, human-less operations. However, that may not be the
appropriate goal or even possible for many sites.

Thus, our vision is to help our customers remove people from harm’s way by applying
advanced technologies, sensor data, and remote operation capabilities to all of our
equipment.

6
Comminution 2019 – Digital Mining – Jeffrey Dawes

By having a deep understanding of any given mine operations, we are able to help identify
risks and implement solutions that increase operators’ awareness, automatically detect
risks, avoid danger zones, manage contention areas and even operate machines or entire
processes remotely.

Automation

SLIDE 10 – Mine Optimization - Automation

Automation is another key innovation focus area that goes hand-in-hand with zero harm.
Imagine a step-change in mine operations that simultaneously increases production and
improves safety.

Our roadmap of development from a manual mine to full autonomy is flexible to each
mine’s needs. Setting a strategy based on the various levels of autonomy enables a
gradual transition at each mine over time, as it applies to that operation.

One of the distinctions in Komatsu’s vision is an open supervisory platform that will
communicate with all machines, makes and models, to achieve interoperability at the
system level. The plan for this architecture is to allow for:

- Mixed fleets (multiple OEMs)

- Manned and unmanned equipment to operate alongside each other and eliminate
the need to ‘retrofit’ other OEM machines

Our global team of experts have been leading the way in automation innovation and
service for longer than any other company in this space.

Digitalization

SLIDE 11 – Mine Optimization - Digitalization

In the digital space, our overarching goal is to provide actionable insights, to the right
people, at the right time. The key to this is the sharing of data and connected systems.

To do this we are already leveraging cloud and edge computing capabilities, sensing
technologies and communication systems to help customers analyze, proactively
prevent, rapidly respond and measure results.

Continuous improvement then comes from the feedback loops built into the processes to
optimize and drive new levels of productivity.
With edge computing (small data analysis) you get the actionable insights at the operator
level, providing immediate feedback from data and sensors that improves the operator
and maintainer experiences and performance.

7
Comminution 2019 – Digital Mining – Jeffrey Dawes

Cloud computing (big data analysis) is helping us visualize the mine-wide trends. As we
continue to advance in this area, our goal is a unified analytics platform and global
knowledge base to share valuable insights and trends. Then, by connecting critical
business systems (ERP, mine planning, processing, shipping, etc.) we can help optimize
your entire mine value chain.

Again, this can only be done through broad partnerships with other OEMs and Tech
companies, suppliers, research groups and industry leaders like yourselves.

For example, if we can provide accurate information on tonnage, grade and minerology
on a truck by truck basis, it’s processing plant that should be driving the truck dispatch
system, deciding on whether that truckload should go direct to the crusher, to a stockpile,
or the waste dump.

Sustainability

SLIDE 12 – Mine Optimization - Sustainability

And lastly, we believe that we can value our Earth as much as we value all people. Society
expects mining to be safer, cleaner and have far less impact on the environment.

As we continue seeking the social license to operate and adapt to new regulations, we
must work together to find out how to produce our product in more sustainable ways.

Our vision for this topic focuses on three areas of innovation:

- Leveraging electrification technologies to reduce CO2 emissions to help reduce

the mining footprint and lower costs in the long-run
- Develop and integrate precision mining techniques that enable ore recognition,
grade control and eventually highly-selective mining practices, and
- Reduction of waste wherever possible – in water usage, oil and fluid disposal,
tailings and slurry reduction, and noise pollution – to minimize mining’s impact on
the environment and surrounding communities, while continuing to deliver the
essential minerals needed for our modern world.

Mine of The Future

SLIDE 13 – Mine of The Future

So, let’s take a moment to dream a little bit, and imagine what the mine of the future might
look like.

(CLICK to Play video)

8
Comminution 2019 – Digital Mining – Jeffrey Dawes

While some of those concepts are still a way in the future, we want you to know that
Komatsu is moving mining forward - through step-changing innovation, connected and
scalable technologies, strong partnerships, and a full suite of systems and solutions that
add value by optimizing the entire mining enterprise.

We believe that together, we can create a more sustainable future for generations to
come.

Thank you.