The mining industry is currently undergoing a significant transformation, spurred by the Fourth Industrial Revolution (4IR).
This era of advanced connectivity, analytics, automation and manufacturing technologies is poised to revolutionise the sector at nearly every stage of its value chain.
From production to processing, adopting AI and automation unlocks efficiencies and redefines operational standards.
At the production level, autonomous vehicles enhance safety while delivering greater precision, improving efficiency. AI-driven systems provide businesses with enhanced control and monitoring capabilities in the processing phase.
These technologies optimise performance, reduce energy consumption, provide safer operations and improve output quality. For instance, a recent study on robotics in mining revealed that 24/7 operation of autonomous trucks reduced fuel consumption by 10%, boosted productivity by 30%, and decreased the risk of accidents by 80%.
The South African perspective
Zamani Ngidi, business unit manager for M&A and cyber solutions at Aon South Africa, highlights a unique challenge in the South African mining context. Mining rights are often negotiated within communities where job creation is a key part of the agreement. This dynamic can sometimes conflict with the narrative of automation.
Nevertheless, the analytical capabilities of AI can significantly benefit mining operations in several ways:
- Minimised maintenance downtime: AI analytics can predict equipment failures, assess machinery conditions, and schedule maintenance to prevent disruptions.
- Optimised supply chains: AI enhances logistics and demand forecasting, streamlining supply chain management.
- Enhanced human capital management: AI aids in recruiting, onboarding and training employees. It also helps employers improve performance management and create more engaging Employee Value Propositions (EVPs).
Addressing cyber vulnerabilities
While AI adoption offers transformative benefits, it also introduces new cyber risks.
Expanding attack surfaces can make businesses more vulnerable. For example, a new AI-powered reporting process might inadvertently expose previously isolated risks to more significant threats, potentially disrupting operations.
Whether through a cyber-attack on a remote operations centre or an espionage campaign targeting highly sensitive and valuable exploration data, the results of a cyber breach can have catastrophic consequences on operations, safety and reputation.
As digital environments become more pervasive, protecting intangible assets like Intellectual Property (IP) also becomes paramount.
Integrating legacy systems with emerging technologies
Successfully integrating AI and new technologies requires a strategic approach to managing legacy systems.
This is particularly critical in addressing Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) priorities that are central to the mining sector.
The evolving cyber landscape and the role of data and analytics are tightly interwoven with these efforts. To embrace technological shifts effectively, the workforce must be empowered to develop solutions that mitigate emerging risks and seize new opportunities.
Key strategies for managing technological transition in an evolving risk management environment include:
- Use data analysis to assess cyber risks.
- Quantify cyber exposures linked to new technologies.
- Strengthen controls to reduce the likelihood of cyber incidents.
- Regularly test defences and simulate attacks.
- Determine whether to retain or transfer specific risks.
- Leverage technology and data to enhance risk management.
Embracing the Future
“As the mining sector prepares for the next frontier of technological advancements, digital tools and sophisticated data analytics will be crucial for staying ahead of current and future risks,” says Zamani. “With the pace of change accelerating, technology – if harnessed and managed correctly – can serve as a catalyst for businesses to achieve their growth ambitions.”
The future of mining lies in leveraging AI and other innovative technologies to not only navigate challenges but also unlock new opportunities for growth and sustainability.