Page 25 - EngineerIT November 2022

TRANSFORMATION IN MINING

Understanding the importance of

digital transformation in mines

By Wilhelm Greeff, business manager at Decision Inc. South Africa

t the end of last year, the world’s leading 40 mining companies had a combined are continually challenged to innovate in
revenue of approximately $925 billion. In fact, the net profits of these environmentally friendly ways while still
Aorganisations grew by 127% on the back of high commodity prices and prudent driving profit.
cost management. Closer to home, mining production shrank by almost Simply put, mines must keep up
8% year-on-year in May. This is significant considering mining is with the pace of change required
the cornerstone of the country’s economy, employing almost Metals and in today’s digital business
500 000 people and contributing R481 billion to the mining companies are landscape. Even though
country’s GDP. investing in digital technologies mines have been pushing
Even though the PwC forecast sees mining across the value chain, from operations transformation efforts,
revenue growth globally, rising costs are putting the Boston Consulting
pressure on margins. This has contributed to to procurement to sales and marketing. Digital Acceleration
the market for mining materials reconfiguring Unfortunately, many of these investments Index has found
in fundamental ways. For instance, the energy have fallen far short of their potential: that they are still
transition and the race to reach net-zero emissions according to BCG’s Digital Acceleration almost 40% less
are creating a surge in demand for critical minerals. Index (DAI), the metals and mining industry digitally mature than
is roughly 30% to 40% less digitally comparable industries
Bridging the digital divide for mines mature than comparable industries, such as automotive or
Within this context, global geopolitics continue chemicals.
to present a range of risks. Combined with rising such as automotive or That is a significant
expectations for environmental, social and governance (ESG) chemicals. deficit, especially considering
compliance, mining companies both locally and internationally the enormous benefits digital

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