Editor's Choice


Mining industry collaboration is vital

November 2022 Editor's Choice

It was interesting to read that ‘productivity and costs’ recently dropped from the third highest business risk for mining companies in 2021 to number ten in 2022. The most recent survey by Ernst and Young[1] interviewed senior decisionmakers at the C-suite level across mining and metals companies. The finding was that, despite fears that COVID-19 would slow progress, there is now an urgent and pressing emphasis on environmental, social, decarbonisation and ‘licence to operate’ factors for mining companies. Today, the sustainability theme dominates the top three strategic priorities for mining and metals.

The time to act is now, and fast!

Responding to these challenges requires a mining company to be highly responsive, move quickly and innovate. But mining, by its nature, is characterised by a few pockets of excellence, with many operations lagging. The best operations are already well advanced along a path towards integrated operations and digitalisation. But the laggards are still struggling with change management and the need to get the basics right before taking on any advanced technologies.

The journey towards integrated, responsive mining operations requires harnessing the fast-increasing volumes of data and managing this as a critical resource to drive improved performance. The results of embracing advanced digital technology can be impressive: Deloitte worked with one organisation that transitioned its operating model and saw unit cost reductions of over 25% and improved productivity of more than 10% with almost no capital investment.[2] These are impressive results.

Despite beacons of light in some areas, the industry remains under pressure to clean up its act. An evolving regulatory environment is putting increasing pressure on mining companies of all types to operate more sustainably. There is, therefore, a need to seek alternative energy sources that reduce the reliance on fossil fuels. These transitional strategies involve electrifying vehicles, self-generating power, and cleaner energy sources such as solar, hydrogen and natural gas.

A more collaborative approach

When entire industries are challenged, as is the case for mining and metals, it is worthwhile looking at ways to leverage the wealth of experience within companies to the advantage of all. Non-competitive collaboration, sharing of knowledge, and standardisation, can benefit everyone. As streams of business-critical data extend beyond the boundaries of the mine to the upstream and downstream supply chain, standardisation is no longer optional.

With the need to automate, there are industry-wide challenges around data integration. Currently, operational data is coming from multiple disparate sources. There is a growing opportunity for mining companies to collaborate – in consultation with vendors and OEMs – on appropriate standards for data integration and standard message formats. Operational practices can be standardised, making mergers and acquisitions more efficient. Standardising on agreed best practices also makes benchmarking of operational performance more accessible across companies and regions.

Another significant challenge for mining is the increasing number of retiring skillsets, leading to a loss of institutional knowledge. In some regions, the industry is characterised by growing numbers of part-time contractors who move between companies as demand dictates. With online training becoming the norm, this provides opportunities for an industry-wide collaboration to develop a common approach to technical curricula, skills development and certification of temporary personnel.

The common challenges in the industry above are just a few examples. A mature approach to collaboration, even between competitors, can lead to the entire industry responding more effectively to these challenges. Forums for discussing shared problems and solutions can be invaluable in this regard. Sharing case studies (successes and failures) can help guide companies, to the mutual benefit of all who participate. Shared industry-wide standards, frameworks and technology roadmaps can also be advantageous when working with technology vendors, making future integration along the value chain more straightforward.

Organisations serving the need for mining collaboration

There are, of course, several organisations that exist to encourage a collaborative approach. These organisations bring together stakeholders across the sector. An example is the Global Mining Guidelines Group (GMG), formed by the Canadian Institute of Mining, Metallurgy and Petroleum. In South Africa, the Chamber of Mines has become the Minerals Council. In Australia, there is also a Minerals Council. The International Council on Mining and Metals (ICMM) in the United Kingdom has set out strategic priorities that “put members on course towards achieving breakthroughs for the mining and metals industry in the critical areas of climate and environmental resilience, social performance, governance and transparency, and innovation for sustainability”.

Closer to home, the recently announced merger of MESA Africa (Manufacturing Enterprise Solutions Association) into the SAIMC (Society for Automation, Instrumentation, Mechatronics and Control) is another exciting development with much potential to be useful and relevant to the mining industry as mines increasingly embrace automation.

Many of the larger mining organisations will hold membership in more than one of these industry associations. In short, there is no shortage of collaboration opportunities in pursuit of sustainability and enhanced performance.

Take advantage of the opportunities

The proliferation of independent organisations focused on common challenges in the mining industry can feel overwhelming. Do they compete? Which one should I join? As individuals and engineering professionals, we need to think beyond the boundary of our organisation and be very aware of the different professional forums in our industry worldwide. The next step is to proactively become more active in these forums, leverage the wealth of shared resources, and apply these to your situation. This next step is, of course, entirely up to you!

[1]Top 10 Business Risks and Opportunities for Mining and Metals in 2022, EY, www.instrumentation.co.za/*nov22-gh1

[2]Trend 7: The path towards integrated operations, Deloitte, www.instrumentation.co.za/*nov22-gh2


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About Gavin Halse


Gavin Halse.

Gavin Halse is a chemical process engineer who has been involved in the manufacturing sector since mid-1980. He founded a software business in 1999, which grew to develop specialised applications for mining, energy and process manufacturing in several countries. Gavin is most interested in the effective use of IT in industrial environments and now consults part time to manufacturing and software companies around the effective use of IT to achieve business results.




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