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Digital transformationstrategiesfor the mining industryBEGIN
Industry outlookFor mining companies, the overwhelming goodnews is the expected increase in demand forminerals and metals. The world’s increasinglyurban and more affluent populations requireresource-intensive goods of all sorts. Coupledwith a shift toward clean energy prioritizationmeans the need of critical materials to supportthese areas is driving demand higher and higher.On the other hand, the mining landscapecontinues to grow increasingly complex as theindustry faces new and changing challenges.Mining companies are shifting the ways inwhich they do business. What worked a decadeago is no longer sufficient in the currentenvironment, and the changes haven’t stopped,exacerbated by a global pandemic. Only thosecompanies working to reposition to betteraddress challenges and take advantage ofnew opportunities will reap the benefits.The World Bank estimatesproduction of critical minerals usedin the clean energy transition willincrease 500% by 2050 to meetdemand for new technologiesSources: Worldbank, Cochilco. Miningglobal.comIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 102
Adapting to a constantlychanging market-5.2%Challenges:Market volatility is the new normal: The mining industry is poised forgrowth, but companies must navigate a market characterized by constantdisruption and community expectations.Access to resources: As mineral resources become exhausted, miningcompanies must either master new technologies for extraction andprocessing, or venture into more remote locations.Sustainable operations: Mines have a lasting impact on a community’sair, water, and land. Prioritizing sustainable operations is becomingimperative to being successful.Increased capital and operational costs: Over the past decade, miningproductivity has declined, meaning mining companies need to dig andmove more material today than they were ten years ago to retrieve thesame amount of sellable materials. This decline stands after adjustingfor external factors such as deteriorating ore grades and mine costincrease, including escalations in the prices of mine inputs such as fueland explosives.Changing workforce demographics: Today’s workforce is changingdramatically, with baby boomers making way for millennials andgeneration z to lead. The retreat of previous generations mean thatknowledge, skill sets and values are heading for the exits, while newergenerations are typically more tech-savvy and place corporate socialresponsibility in high regard.Industry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 630%contraction inglobal GDP in 2020copper ore grades declineover the last two decadeswater consumption1m3/ton copper cocentratorup to50%5yearsof mine site total operatingcosts are maintenanceof experience is requiredof a mine operatorCase StudiesPG 103
Strategies for mining companies to meet challengesWhile the challenges facing the industry are significant, mining companies have options tomitigating the associated risks. By focusing on strategic, action-oriented responses to trendsand implications, mining companies can get ahead of setbacks. Reaction-oriented responsesoften occur too late and expose mining companies to unnecessary risks.Market volatilityas a new normalAccesss toresourcesSustainableoperationIncreased capitaland operational costsChanging workforcedemographicsImplementing effectivemaintenance strategiesLeverage technologymaking the workplacemore attractive and saferSTRATEGIC OPTIONSAn integrated view ofoperations allows betterproduction responsedue market changesIndustry outlookPG 2Ability to processlow-grade ores in themost economical fashionSolutions meeting industry challengesPG 3Better monitoring andoptimized usage ofwater and energyThe connected mine and enabling technologiesPG 6Case StudiesPG 104
From strategies to solutionsTurn your strategic concepts to realistic solutionsMine-to-market integrationSupporting and automatingbusiness decisions based onreliable and contextualinformation around production,assets and inventoryAsset performancemanagementMonitor and predict whenan asset is about to failand autonomously managemaintenance activitiesProcess efficiencyConnected workerAutomate processes andequipment and optimizeoperations while savingenergy, water and reagentsDigital technologies forremote collaboration,knowledge transferand mobilityTHE CONNECTED MINEThe Connected Mine links business, processes, assets and people to provide a holistic viewof your entire mine operation. View contextualized asset information, optimize operationsto deliver savings and reduce downtime by smartly managing your maintenance activities.Industry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 105
The connected mine at workThe connected mine can improve all areas of mining operationsMINE-TO-MARKET INTEGRATIONPROCESS EFFICIENCYAn integrated operations center brings all the information to onecentralized location. Access production performance, report onasset utilization and manage downtime inventory and mineoperations easily.Focus on process control and optimization from your processingplant and refining areas to plant electrification and ancillaries(compressors, ventilation).TLO decision automation solution generated a 4% production uplift.Iron ore miner was able to step up flotation production of the mostvaluable concentrate type from 46% to 73% on averageASSET PERFORMANCE MANAGEMENTCONNECTED WORKERKeep an eye on your material handling assets and be notified of an issuebefore a dangerous breakdown occurs.Empower and support your workforce through tools like remotesupport and expert capture that put the veteran knowledge at inyour workers’ hands.Online condition monitoring is able to identify gearbox issuesin conveyors before breakdownIndustry outlookPG 2Solutions meeting industry challengesPG 3Digital technologies reduced time in creating new technical documents,reducing effort by 60%. (Source: PTC)The connected mine and enabling technologiesPG 6Case StudiesPG 106
Enabling technologiesRockwell Automation solutions use the latest and greatest in digital technology tools to solve your business challenges.The strength of technology that companies are focusing on today – digital twin, IoT platform, extended reality, artificialintelligence, predictive analytics and more — doesn’t lie in the technologies individually. The value stems from howcompanies integrate technology to transform the business and how you work.INTEGRATEDOPERATIONCENTERMOM (mining operationsmanagement) IIoT platformDigital twinRepresentation of a physicalentity or system across itslifecycle using data, analytics,simulations and emulationsAggregate, contextualizeand display information fromdissimilar systemsCYBERSECURITYMINESIndustry outlookPG alyticsSmartsensorsDecisionautomationMobility, VR and ARtechnologies enhancesituational awarenessof field workersTo support minersin the processes ofproblem solvingIdentify potential qualityand downtime eventsbefore they occurMonitor conditionssuch as temperature,vibration, emissionslevels and particulatematterUses business rulesand data to makedecisions in a processwithout the need forhuman interventionSolutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 107
“Accelerating technology adoptionDespite clear benefits, many miners are facingobstacles to embrace digital transformation.Projects may never get approval, and if they do,don’t deliver on the expected results.Why is that?Without a clear business case highlightingreturn of investment (ROI), many projects aredenied by company leadership. Developing aclear strategy roadmap is complex, but missingthis key step often leaves plans at a standstill.We can do even morewhen we effectivelycombine our capabilitiesand bring multiplepartners to collaborateon shared problems.”Mining companies also struggle with attractingtalent and developing new skills. A proliferationof in-house applications, lack of scalable plansand difficultly integrating legacy infrastructureis also to blame.The truth is, mining is lagging behindwhen it comes to digital transformationimplementation. But we can look to otherindustries for best practices and lessonslearned.Pat Bourke, VP of Technology forMinerals Australia at BHPOther roadblocks to project success involvefocusing on exciting new technology without aclear direction on the problems it will litiesEducationChemicalsCost optimization andproductivity gainsIndustry outlookPG 2Solutions meeting industry challengesPG 3Cost optimization and productivitygains customer relationsThe connected mine and enabling technologiesPG 6Replacement of conventionalbusiness modelsCase StudiesPG 108
Enabling competenciesthrough LifecycleIQ ServicesTo deliver the successful implementation of a project from start to finish, mining companies canwork with partners to couple their challenges and identify the proper solutions and technologiesaccording the where they are in the life of their operations.Professional servicesConnected servicesEXPEALONATIEROPSEdesignRTIEXPEDESIGNCHSE IT / OT Integration Automation Front-End Engineering Design Modernization and MigrationTEIRTPEEXoperateNOLOGYONSolutions meeting industry challengesPG 3IATICIndustry outlookPG 2PL Operational Analytics Process Optimization TrainingDigital Transformationstrategy and roadmapSEAPOPERATEWorkforce servicesINNOVATEIRTmaintainRemote AssistanceManaged ServicesSafety AssessmentsNetwork SupportServices CybersecurityPEEX innovateRYSTMAINTAINField servicesDUINRTISEConsulting servicesThe connected mine and enabling technologiesPG 6Case StudiesPG 109
Enabling competencies through consulting servicesThe connected mine can improve all areas of mining operationsConsulting servicesProfessional servicesCONSULTINGConnected servicesDATA SCIENCEField servicesTECHNOLOGYBUSINESS PROCESS Strategy Advanced analytics Digital twin Operations Machine learning Organizational changemanagement Artificial intelligence Product & data lifecyclemanagement Project and productportfolio management AutomationWorkforce services Process managementand outsourcing Managed services Internet of things (IoT) Applications Extended reality (AR/VR) Support Cloud infrastructureDelivering the digital thread that brings The Connected Mine to lifeIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1010
CASE STUDYTechnology roadmapfor an iron ore companyCHALLENGEOUR ANSWERThe user had clear business objectives butrequired some guidance on creating a digitaltransformation roadmap.We provided a consulting-based approachto understand customer business needs,existing technologies, the state ofautomation, operational pain points andgrowth opportunities to address the userchallenges.The customer set out with goals to optimizeutilization of assets to increase throughputand minimize operating cost.They were also looking to increase operationalvisibility, which allows better and fasterdecision making.ESTIMATED BENEFITS:Throughput increase to be between 2 – 5%15% reduction in production variationSoft benefits include improved safety,upskilling operators, operational visibility,decisions support and standardization.Industry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1011
CASE STUDYMine-wide processcontrol systemCHALLENGEOUR ANSWERThe customer was looking for a way to achievestandardization across operations and controlbetween areas.We provided a standardized control systemacross four areas: mine and the concentrationplant, pipeline, filtration plant and the port.But with large distances between thedifferent areas and an outdated controlsystem with more than 20,000 instrumentsand motors, the task felt overwhelming.The solutions included intelligentinstruments and motor controls, a modernasset-management system, enhancedalarm system and powerful reportingcapabilities: including water management,production vs. energy consumption.RESULTSEnsuring operational and controlstandardization across the plant.At the end of the project, the user madeits first shipment of ore ahead of scheduleand at a lower cost than estimated.Industry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1012
CASE STUDYSafety solution foroverland conveyorCHALLENGEOUR ANSWERThe user was not satisfied with the offerof a conventional solution citing the highcosts of implementation and maintenance ofmechanical switches.A unified safety solution combining conveyorautomation and smart devices (I/Os andemergency stop) - distributed across a safetynetwork backboneThe user was also disappointed withunnecessary stops due to materialaccumulation or variation in the tension of thesafety switch strings by thermal expansionand the lack of diagnostics.RESULTSReduced cost of installationFewer false tripsGreater operational availabilityof the conveyorIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1013
CASE STUDYIntegrating underground coppermine in a single backboneCHALLENGEOUR ANSWERA massive underground expansion projectwas shifting from open pit to undergroundmine operation in a short period of time. Thegoal was to restore disconnected assets(caused by such quick expansion) to improvevisibility and safety.We supplied detailed engineering, supply,configuration and assembly of systems thatmake up the mine’s control system. Thisincluded integrated operational platform,security system, supervision and controlnetwork, predictive maintenance and ageneral administrative network.RESULTSThis integrated solution will help to extendthe life of the mine by at least 40 years,improving its asset utilizationIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1014
CASE STUDYDecision Automation for TrainLoader Operation (TLO)CHALLENGEOUR ANSWERThe operation needed to ensure the trainswere filled in the shortest possible time torelease the right product at the right time.The execution management (EM) solutionorchestrating the TLO decision-makingprocess with less human intervention.Operators can be easily overwhelmed, sincenumerous variables and interlocks betweenareas must be managed to achieve the desiredproduct loading and train turnaround time.EM does this by integrating with ERPand/or the site’s job managementsystem to automatically convert a jobinto a list of all the equipment neededto correctly execute the job.RESULTS 4% production improvement due toexecution managementThis improvement can be translatedto approximately 900M USD per yearIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1015
CASE STUDYMine haulage digital twinCHALLENGEOUR ANSWERThe customer was looking to reducetransportation costs, identify andreduce bottlenecks (large numberof mobile assets)and standardizepractices across multiple mines.A powerful simulation tool able to comparearound 100 scenarios using differentroutes, equipment, and proceduresand matched scenarios to mine exportplans to find the most efficient.RESULTSProvided a tool for daily decision makingand equipment utilization analysisEstimated cost savings of 4 million/yearIndustry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1016
CASE STUDYDigital twin conveyorintegrating field and operationsCHALLENGEOUR ANSWERThe customer was dealing with a lackof efficiency to address maintenanceevents, ineffective communicationbetween the remote operations centerand site technician. It was a scavengerhunt to locate all information necessaryto solve maintenance problems.Integrated virtual environment solution:1. VR experience : Remote flybyassessment of conveyor2. AR experience (Overlaid onto the VRexperience, or the actual equipment on site- Brings up live operating data, in context)3. Integrated repository of informationProcess Data, Drawings, Technicaldocuments Alarms, Work ordersAnd most important, it kept legacy systemsinstead of requiring a complete overhaul.RESULTSThe digital twin enabled technicians to make,faster, simple and safer decisions. Allowing remotelocated staff and operations to be on the same pageinstantaneously with full situational awareness.Industry outlookPG 2Solutions meeting industry challengesPG 3The connected mine and enabling technologiesPG 6Case StudiesPG 1017
BACKexpanding human possibility Expanding human possibility, LifecycleIQ and Rockwell Automation are trademarks of Rockwell Automation, Inc.All other trademarks are property of their respective companies.Publication MIN-BR008A-EN-P - March 2021Copyright 2021 Rockwell Automation, Inc. All Rights Reserved. Printed in USA.
in conveyors before breakdown Industry outlook 6 PG 2 Solutions meeting industry challenges PG 3 The connected mine and enabling technologies PG 6 Case Studies PG 10. Enabling technologies Rockwell Automation solutions use the latest and greatest in digital technology tools to solve your business challenges.
