Scientific and technological innovation promotes high-quality development of mining industry

-- From the era of mining 4.0 and enterprise strategy

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In order to help domestic mining companies better solve the technical bottlenecks that restrict their development, this newspaper launched in the first edition.The "Frontiers of Mining Science and Technology" column reports the research results of the Mining Science and Technology Research Group of the International Mining Research Center of the China Geological Survey, mainly including new trends, new developments and new trends in the frontier technology fields of international mining exploration, mining, selection, and metallurgy. Help mining companies achieve high-quality development.

1.The Fourth Industrial Revolution is transforming the entire mining value chain

McKinsey Consulting (McKinsey) pointed out that artificial intelligence (AI), robotics, IoT, autonomous vehicles,3DPrinting, nanotechnology, biotechnology, materials science, energy storage and quantum computing are key elements of the Fourth Industrial Revolution. All of these factors could completely "upend" traditional manufacturing, blurring the boundaries between the physical, digital and biological realms. However, the fourth industrial revolution is generally driven by three major technological trends, namely connectivity, intelligence, and flexible automation (Figure1）。

Figure1 Three major technological trends

The Fourth Industrial Revolution in manufacturing remains a top priority for many leaders in the private and public sectors. This has a hugely disruptive impact on value chains, industries and operating models, represents the next engine of economic development, and opens up opportunities for capturing value in ways not seen in past industrial revolutions.

The prosperity of technological innovation is not only in mining companies, but also in other industries around the world. What they have in common is digitalization. Although there are many different definitions related to digitization, it is essentially to increase the acquisition and processing of real-time data in all aspects of today's world.

through higher processing power, stronger and faster networks, better sensors (includingGPS, radar and lidar) applications, as well as improved software and algorithms, are being digitized. Digitalization ensures the analysis and understanding of data and allows feedback within the system (manual, automatic or artificial intelligence), which can be used to immediately visualize, control and optimize commercial operations with real-time data, applied to all aspects of mine operations.

Many believe that what hinders digital transformation is no longer the technology, but the ability to adapt to an increasingly advanced and changing environment, sometimes also depends on cost. In order to be successful in business and digital applications, technological innovation in the mining equipment, technology and services industries must be strong, sustainable and cost-effective. In addition, the interface with management must be practical and concise.

McKinsey & Company2015Year11month to make a forecast: estimates in2025By increasing production capacity, reducing waste and improving safety, the potential economic impact of mine digitization can reach3700Billions of dollars. Among themThe $250 billion comes from a deeper understanding of the resource base, optimization of material and equipment flows, increased mechanization based on automation, and real-time monitoring of performance under the plan.

2017Year1In September, the World Economic Forum's collaborative research with Accenture Consulting pointed out that in2025Years ago, the mining industry could save4280Billions of dollars. The largest sources are expected to be integrated procurement, data exchange and trade, followed by wearable devices (850US $100 million), remote operation center (840billion dollars), and automated operations and robots (560billion dollars). They believe that this will reduce the labor force by nearly5%.

Accenture believes that cognitive networks are a new generation of technology being adopted by all industries around the world. Through the analysis of unstructured data, machines are equipped to think and act like humans, thus driving a real transformation of the entire mining value chain. The use of artificial intelligence will provide a path for human-computer interaction and the creation of an environment with self-improvement, self-learning, self-healing and self-control, which is also the development goal of future mines.

2. Scientific and technological innovation leads the mining industry into the 4.0 era

In recent decades, the mining industry has made very few major technological breakthroughs. In mineral processing, the major technological breakthroughs are flotation technology 100 years ago and solvent extraction technology 50 years ago. In mining, revolutionary developments include the invention of explosives, the introduction of carbide drill bits, the adoption of underground large-scale mining methods, and the upgrading of open-pit mining equipment. Despite the lack of major technological breakthroughs, due to the continuous upgrading of production systems, current mining is safer, more efficient and more "green" than 25 years ago ". The main trends include: first, the continuous mechanization of mines; second, the establishment of maintenance, management and supply systems; third, optimization software for geological and engineering technology; fourth, the expansion of mines and mineral processing plants; and fifth, the wide application of information technology in process control, which has realized the connection between mining and mineral processing. The fourth industrial revolution is no longer a process of gradual improvement, but a step change.

2.1 digital mine is the future development direction

At present, digital technology has been used to different degrees in different environments of mines. While digital technologies are still being refined, they are already widely used and are beginning to be integrated into the value chain. The success of mining enterprises is not only to adopt the latest applications and technologies, but also to integrate digital and innovative ideas into business strategies.

Deloitte's 2019 Trends report points out that technology and artificial intelligence will play an important role in the mining industry, not only helping companies predict the future, but also helping them identify risks and change the supply chain. In addition, financial platforms, sensor technologies, autonomous vehicles, cloud-based solutions, and data analytics will also facilitate the design of digital mines.

Rio Tinto, one of the forerunners in the mining industry, launched the "Mine of the Future" program in 2008. The plan aims to reduce environmental impact and further improve safety while harvesting minerals from the depths of the earth. In 2010, Billiton (Boliden), KGHM Mining in Poland, LKAB Mining in Sweden, and several global suppliers and academic institutions initiated conceptual studies for a shared vision of the future of mines. In 2018, Anglo American launched the "Smart Mine of the Future" program, and many other mining companies have also started informal activities and programs.

Nick Holland, chief executive officer of South Africa's Gold Fields, has spoken for several years about the future of mines, including in 2018 the need for mining companies to "embrace" technology as it becomes harder, longer and with declining ore grades to discover and develop mines. He believes that technological innovation is like a tsunami to the mining industry, and "you" may "ride the wind and waves" or "be washed away". Goldfields aims to achieve full remote control of open-pit or underground mines by 2028. He believes that collaboration with technology companies will provide solutions to achieve the goals.

Australia's Resolute Mining has built the highly automated Syama underground gold mine in Mali based on the Future Mine concept, which began production in December 2018. Mine design requires the use of optimal mining, transportation and processing technology at the beginning, and allows operators to install advanced mobile equipment monitoring and control systems, and these technologies will gradually be integrated into the use of the entire mine, which is conducive to improving mine safety and productivity.

A video from ABB Group presents their views on future mine concepts, including digital twin technology (digital twin). The group plans to develop digital technologies for future mining at its co-operation center in the Swedish city of Stross. GE's digital division (GE Digital) also gave its perspective on digital mines, which is to build an industrial internet in conjunction with its Predix platform to connect all mining assets to reduce unplanned downtime, optimize operations, and ensure proactive processes.

Rio Tinto has introduced digital twin technology at its Koodaideri mine in Western Australia, which uses data from the design, construction, commissioning and operation of the plant to build a digital factory to improve real-time decision-making.

Accenture Consulting believes that digital mining is the use of the best digital technology, the Internet of Things and cloud or internal application platform (on-premise platform), connecting the mining value chain from the mine to the market and sensors to the board meeting, integrating data from isolated databases (such as fleet management, scheduling, historical development and enterprise resource planning solutions). The use of unified and effective analysis methods to achieve operational intelligence and trend analysis, comprehensive visualization on tablets, remote control of intelligent devices, etc., which enables users to better plan the development of enterprises according to customer and market conditions, understand the operation of enterprises, and improve production capacity.

At present, the mining industry is only in the early stages of digital transformation. Although the pace of development is still slow, mining industry executives are beginning to realize that data visualization and application of new technologies through the entire data chain can achieve increased production capacity.

2.2 digitalization will revolutionize the mining industry

The World Economic Forum report pointed out that the continuous reduction of technological costs has accelerated the pace of social development, and the comprehensive utilization of digital technologies can ensure that these technologies play their maximum role. Industry experts say that the adoption of new technologies that enhance the profitability and sustainability of mines has a significant impact on the mining industry in crisis, but in order to realize value, new technologies must be adopted in an effective and sustainable way.

Jean-Sebastian Jacque, CEO of Rio Tinto Group, said that digitalization will revolutionize the mining industry. New digital technologies, from artificial intelligence to the Internet of Things, as well as new biotechnologies, will make management more creative. In marketing and trade, digital technology, big data technology and blockchain technology will play an important role in helping users (from governments to consumers) verify the ethics and value of all products and their environmental certification.

The Boston Consulting Group believes that the further development of emerging digital technologies will revolutionize the mining industry in almost unimaginable ways. Among them, drones are used for in-situ observation, genetically modified bacteria or nanorobots are used for mining at the molecular level, deep water robots are used for underwater mining, big data and algorithms are used for end-to-end tracking and communication and real-time supply and demand management ...... These new technologies may in the future disrupt existing business models and the traditional roles and relationships between mining companies and users, suppliers and competitors.

3. Technological innovation is the key to the rapid development of mining enterprises

Mining companies are gradually adjusting their strategies and business models, including technological innovation as the cornerstone of their development strategies. At present, the key innovation that can make a step change in mine operating capacity is the adoption of digital technology.

Some companies have proposed the concept of "mines of the future" for decades and have developed, tested and applied new digital technologies. However, there are still some enterprises have been slow to move, affecting the "future mine" to achieve the process.

3.1 technological innovation "leader" will gain competitive advantage

McKinsey's analysis shows that the application of artificial intelligence in the mining industry will bring a cumulative 122 per cent change in cash flow for technological innovation "leaders" and only a 10 per cent change in cash flow for "runners.

The "front-runners" will have an initial competitive advantage that will bring their cost curve down and give them an advantage over their competitors, such as higher profits and market value. Arguably, the industry as a whole will be acutely aware that digital technology will be a cost-reducing factor that can drive down the industry's cost curve and ultimately keep mineral prices low.

Obviously, the key to the long-term development of mining enterprises is to stay ahead in innovation. It should be noted that digital accessibility is "open" to enterprises or operators of all sizes and small and medium-sized enterprises, and will not be exclusive to developed economies.

3.2 technological innovation to make the mining industry better, faster and more efficient

Rio Tinto, one of the pioneers in the mining industry, launched its "Future of Mines" initiative in 2008 to find advanced ways to harvest minerals while reducing environmental impact and further improving safety. This concept sounds a bit broad, but as one of the industry's technology innovation leaders, they have focused on four areas in recent years: the autonomous truck haulage system, the automated drill system, the automatic rail (rail) transportation system from mine to port (AutoHaul) and its remote operations center in Perth, Australia. Rio Tinto put into operation its first driverless railway system in late 2018, achieving the development goals in the above four areas. Chris Salisbury, CEO of Rio Tinto Iron Ore, said that Rio Tinto's pioneering laboratory in Brisbane, Australia, will help the realization of Rio Tinto's 4.0 concept and ultimately make the mining industry better., Faster and more efficient.

In 2018, Anglo American launched the "Smart Mine of the Future" initiative, which aims to apply innovative thinking and technological developments to the key challenges facing the mining industry. They established four guiding concepts to carry out their work: the first is an intensive mine (concentrated mine), which integrates advanced rock breaking technology, large-scale ore sorting technology and coarse particle recovery technology to maximize mine production (metal to ore ratio) while minimizing mine operating and capital costs and its environmental impact. The second is modern mine (modern mine), which is developing and testing automatic and continuous rock cutting equipment to safely mine deep underground mines without the need for explosive blasting, thereby creating a safer mine environment, reducing operating costs and increasing the value of mineral resources. The third is intelligent mine (intelligent mine), which uses massive data for intelligent prediction. The main focus is on using real-time drilling analysis, hyperspectral core imaging, and comprehensive analysis of 3D and virtual reality geological simulation to identify mineral and material properties. At the same time, customized learning methods are developed to predict the control parameters required by the factory, and strive to achieve monitoring and predictive maintenance. The fourth is the anhydrous mine (waterless mine), which is reducing the use of fresh water in the mining process through large-scale closed loop methods, especially the separation and transportation of ore and waste rock (tailings).

3.3 Many Mining Enterprises Implement Technology Innovation Strategy

Although BHP has not announced formal plans for its stockholders, the center of its technology strategy is integration. Their integrated strategy is to connect everything by 2025 to create a "bridge" between the present and the future, as well as a foundation for fully integrated and highly automated operations.

BHP Billiton has achieved the globalization of technological development, and now applies research and development, solution implementation and technology operation to the entire value chain. The company is applying a "systems engineering" approach and analyzing the life cycle of the mine in relation to its assets to identify constraints and optimize investment items. This facilitates rapid replication of best practices throughout the company's operations.

An important pillar of BHP's technology strategy is to build an ecosystem of partners with established and new companies (many from OEMs). These partnerships can give BHP access to leading technology and external talent to help it find solutions to complex problems. BHP Billiton has invested in partnerships with universities, including a $3 million contribution to an alliance of the University of Melbourne, Stanford University and the University of Cambridge to draw global attention to CO2 storage and support the establishment of future large-scale carbon capture and storage projects.

In Canada, Teck Resources has four research and development centers covering a variety of technology development and innovation efforts, including the evaluation of the effectiveness of current technologies and the development of new breakthrough technologies. Teck Resources' technology innovation focuses on four key areas-safety, sustainability, capacity and growth-and the ongoing digitalization of operations will underpin these four areas.

Teck Resources has strategic partnerships with regional and global enterprises to develop and implement pioneering technologies such as open source fleet management systems, the first electric semi-autonomous drilling system, virtual reality mines, and the first shovel-and-load ore sorting technology. At the same time, Teck Resources has formed a dedicated interdisciplinary field team to examine and promote the opportunities of new technology research and development and innovation, which helps to analyze the benefits of new technologies and plan for technology testing, verification and demonstration.

In 2017, Goldfield began implementing a new technology innovation strategy aimed at modernizing, integrating and optimizing existing systems and processes. Once this is achieved, the company will consider a more comprehensive push to fully automate mines. The ultimate goal of the strategy is to build Goldfield's mines of the future, which will be based on automation, integrated digital data platforms, remote machine operations, virtual reality, and reduced mining waste (tailings). In addition, partnerships with industry-leading information technology companies and OEMs will be critical to the successful implementation of the strategy.

Newmont Mining opened its exploration of innovative technologies with investment in early 2018. At present, the company is developing a 5-to 10-year enterprise technology innovation strategy. Their digital integration approach focuses on the promotion of reliable mining practices to maximize sustainable corporate value. A team of professionals targeting strategic digital opportunities to build an integrated architecture of information and business on technology and infrastructure through interconnectivity, streamlines and comprehensive analysis. Mine monitoring and control teams focus on wearable technology to improve operational efficiency and safety, while machine control and automation teams aim to improve equipment performance, safety and compatibility through artificial intelligence and other tools.

Goldcorp Canada has targeted the digital transformation of its new mines by equipping them with robust and reliable technology. One example is the deployment of a multi-server IP network in the éléonore underground mine to improve safety and reduce operation and maintenance costs through secure wireless communication. As part of the company's digital transformation strategy, six areas are identified as new technology development opportunities, namely big data and machine learning, connected mining equipment (connected miner), automated mining operations, more sustainable mines with fewer environmental impacts, operations and reclamation (reclamation), and safety and environmental reengineering (re-engineering), covering every stage of the mine life cycle, from exploration and development to operation and reclamation.

Goldcorp Canada is one of the leaders and founding partners of the# DisruptMining event, a mining technology innovation competition. The event provides a platform for innovators and entrepreneurs to apply disruptive and exponentially evolving technologies to the mining industry.

3.4 Innovative Technology Test Site to Promote Strategic Landing

In Europe, KGHM, Boliton and LKAB have been working with several major suppliers and academic institutions since 2010 to achieve a common vision of building the mines of the future by 2030. The vision has 7 main features, namely a control room, unmanned production areas, continuous mechanical excavation (mechanical excavation), ore pre-enrichment, maximization of the intrinsic value of the ore, and systems that can describe the rock and its structure to assist process control, And the sustainability of the final product of the mine. The academic institution has carried out research and development projects and has obtained data from LKAB's Kiruna mine and its concentrator, Boliton's Kristineberg mine and its concentrator, and KGHM's Lubin, Polkowice and Rudna mines and its concentrator.

In Canada, the NORCAT Underground Center in Sudbury, Ontario, is an operating underground mine that serves as an innovation and training center to facilitate the development, testing and demonstration of technology and conduct practical training. Each year, the center supports nearly 50 mining technology projects and hosts nearly 50 global mining companies to learn about the latest technological developments in the mining industry.

In Australia, the Kalgoorlie-Boulder Mining Technology Innovation Centre, established by the Australian Institute of Mining Research (CRC ORE), aims to develop and deploy new mining technologies. The Institute promotes the development of innovative solutions through a global consortium of mining companies, as well as mining equipment, technology and service companies and research institutions.

The Alta Ley program, launched by the Chilean government in 2015, aims to bring together all entities that can play a role in the innovation process and continuously promote the progress and development of mining technology.

4. Factors influencing the adoption of innovative technologies by enterprises

At present, although there are doubts about whether some innovative technologies are effectively implemented and cost-effective than expected, the mining industry has seen positive effects and is full of enthusiasm. This road will certainly not be "flat", and the return will not be "static".

Many innovations are not widely used, and one of the most important reasons is the lack of skilled talents. Generally speaking, there is a lack of in-depth understanding of technology. Specifically, there is a lack of automation operators and developers with skilled operation experience. Therefore, it is necessary to strengthen the skills training of personnel at different levels in the mining industry and continuously improve the comprehensive quality of industry personnel.

Another factor comes from the original equipment manufacturer, which has limited inventory and limited capital investment, which has imposed restrictions on updating equipment and vehicles. However, existing suppliers must improve equipment performance as soon as possible to enhance market competitiveness in case other competitors gain opportunities.

At the same time, the availability of capital in the mining industry is also an issue, but this has declined in recent years. In addition, the "conservatism" of the mining industry is also a reason that cannot be ignored. Some companies in the industry are themselves reluctant to adopt new or unproven technologies because of the high capital cost and high operational and reputational risks. risk. Technological innovation in the mining industry also faces a problem, that is, how to develop and how to obtain the final benefits. Most mining enterprises are still relatively confidential about their actual strategies and ongoing projects. There is also a potential problem in the mining industry's cooperation with OEMs, how to share the benefits of intellectual property, although both can gain a lot of knowledge and experience, but the latter is usually more profitable.

(Author: China Geological Survey International Mining Research Center, China Geological Survey Geosciences Documentation Center)

资料来源：RFC Ambrian. Report 1Mining 4.0 and Corporate Strategy. 2019.4.

Website Editor: Gong Li