One of the key ways to overcome these challenges is to implement digital business transformation. It allows improving resource management methods, accelerating project development and optimizing production processes in accordance with environmental, social and corporate governance (ESG) rules. To achieve a successful result, GDC managers need to adhere to one or more of five key initiatives.
Aveva experts have published a study describing the core essence of each of these business principles. In this article, we will provide a brief description of each of them with implementation examples.
The mining industry faces a number of unprecedented challenges. Changing demand and market fluctuations make it difficult to plan and execute operations. In an effort to reduce greenhouse gas emissions, minimize waste, and conserve natural resources, governments and industry organizations continue to impose increasingly stringent environmental regulations, presenting mining companies with an uncertain target as they strive to stay ahead of new requirements and improve the sustainability of their operations. And an aging workforce is creating a real skills shortage, forcing companies to find new ways to transfer institutional knowledge and train new workers. At the same time, companies must reduce costs by investing heavily in upgrading physical assets. All of this is squeezing already slim profit margins.
To overcome these challenges, companies can use digital tools. Digitalization can improve collaboration within the company and increase overall efficiency, as well as enable remote work for employees, which is especially important in the context of labor shortages. With tools for centralized visualization, operators can collaborate on the same data set, which helps identify bottlenecks and optimize processes.
Despite market turmoil and instability, some GDC leaders are finding success by implementing new ways of collaborating in a digital environment. These new methods, based on single platform data sources and global visibility, are helping companies become more profitable and advance the circular economy.
Principle #1: Accelerate the time from concept development to implementation
Capital projects in the mining industry are often subject to delays and cost overruns, which negatively impact profitability. In the context of sustainability and a lower carbon footprint, mining companies need to adapt quickly to change, deliver projects on time and within budget. Digital approaches to project management, including access to real-time operational data, can speed up processes and make informed decisions based on data analysis.
An example of the successful application of digital tools is the K+S Potash mine project, where a single information management platform was implemented. It allowed the €3.1 billion project to be completed and commissioned without significant delays.
Principle #2: Empowering the Workforce
The problem of an aging workforce and high turnover in the mining industry requires the implementation of new approaches to HR management. To attract the next generation of workers, companies must implement digital tools that ensure transparency and accessibility of information. This allows for the optimization of work processes and the improvement of staff training.
Italpress Gauss, a manufacturer of machines and automated work cells for light alloy casting, has implemented a human-machine interface using AR/VR technology to improve situational awareness on site and enable some employees to work remotely. Teams can now collaborate online to solve any problems with the site, wherever they arise.