HOUSTON, TX - Richard Verkley,The digital revolution
is transforming the global mining industry, which is a key driver of the world
economy and valued at $750 billion in 2017. Artificial intelligence (AI) is
already being applied to process vast amounts of data to increase the success rate
of mineral discoveries, notesRichard Verkley, CEO of Eco
Metals Recovery UK
The
World Bank’s Metals and
Minerals Price Index rose 16% from 2015 lows to average $87/tonne last
year. It is expected to further increase by 8.5% in 2018 on strong global
demand for raw materials. “Mining companies are required to remain competitive
in low commodity price environments while positioning themselves for growth in
periods of rising prices. The application of AI technology to the automation of
operations has become vital for enterprises looking to gain a competitive
edge,” Richard Verkley points out. An increase in efficiency due to automation
helps companies to reduce costs and extend the life of productive assets. In
addition, these technologies lower the energy intensity of mineral extraction
and transportation, reducing companies’ environmental footprints.
Gains from automation can be made across the project life cycle.
In 2017, Canada’s Goldcorp partnered with IBM’s Watson to enhance exploration in its mines. Watson’s
analytics were applied to survey data, guiding geologists to high-value target
areas and providing better information for modeling. Automation can also
drive down extraction costs once mineral discoveries are made, and autonomous
trucks and drills decrease personnel costs while increasing productivity.
Mining giant Rio Tinto announced last year it was expanding its autonomous fleet by 50%,
commissioning over 130 trucks by 2019.
Digital monitoring systems can also manage company risk and
increase the safety of an active mine. The ability to process timely
information from operations and learn from historical records allows the system
to predict safety breaches. The creation of Digital Twins, or virtual models of
physical assets that collect real-time data through sensors, enables companies
to conduct predictive planning and stress-testing exercises. Machine learning
algorithms, which can respond to patterns within large datasets without
pre-coded instructions, are key to linking automation with the complex
operations of miners, says Richard Verkley.
Global business consultancy Ernst & Young advises mining companies to consider a multi-step,
integrated approach to digitalization and automation. Looking beyond short-term
operational gains, miners should employ a digital strategy across the value
chain and adapt their business approach to capture full value from
technological disruptions.Richard Verkley, Current trends suggest
that future capital spending in the sector will shift in favor of AI. A recent
survey by Accenture revealed that 54% of executives consider robotics and
automation an important area for investment. The World Economic Forum reported
that digital transformation efforts will add $190 billion in value to the mining
industry over the decade ahead.
Richard Verkley is the CEO of Eco Metals Recovery
UK and Farpoint
Metals & Mining, both of which are ventures focused on
environmentally-sustainable business practices.Richard Verkley is
also the founder of the Hearts of Gold Foundation, a registered Ecuadorian non-profit
organization dedicated to capacity building within local communities. The
charity project offers workshops and mentorship to community leaders who serve
populations in need.