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Digitalisation trends in the mining industry

Digitalisation in the mining industry is well underway. Emerging technologies like Cloud, AI, Robotics and Big Data are enabling mining organisations to optimise production and exploration processes, improve supply chain and logistics and increase sustainability. But despite the increasing spread of digital technologies in the sector, many organisations (especially the smaller ones) are still struggling to adapt. Why is that? And how have some of the big mining players like Anglo American been leading the digital evolution? Find out in our blog below. 

State of digitalisation in the mining industry

Automation is nothing new in the mining sector. Most companies have been automating certain parts of their processes for years now, so they already have some of the prerequisites to utilise digitalisation. However, according to BCG’s 2021 Digital Acceleration Index (DAI), the metals and mining industry is still far behind its peers in comparable sectors like automotive and chemicals and are about 40% less digitally mature.



This is consistent with Rockwell Automation’s recent industry research which further revealed that “most mines are in the pre-implementation phase of their journey. In fact, nearly one-third are still in the initial exploration and fact-finding stage – and only 10% have completed at least one digital implementation”.

Most common technologies used in the mining industry

In terms of types of technologies, the World Economic Forum has outlined the following four major mining digitalisation trends and themes:

  • Automation and operational hardware - Deploying digitally enabled hardware tools to automate and optimise any inefficient, manual and risky operational activities and processes. These include sensors, robots and 3D printing solutions.

  • Digitally-enabled workforce - Using connected mobility, and virtual and augmented reality to enable field, remote and centralised workers to perform better and at any time. A sample initiative is the development of remote operating centres.

  • Integrated enterprise, platforms and ecosystems - Interconnecting operations, IT layers and systems that are currently working in isolation to improve operational efficiencies, logistics and financing. This often involves integrating information technology (IT) and operational technology (OT), asset cybersecurity and sourcing, and data exchange like blockchain.

    Cygnetise’s blockchain-empowered signatory management application, for example, can help mining organisations streamline operations, improve governance, and contribute to ESG by eliminating the manual management and distribution of delegated authorities and authorised signatory data.

  • Next-generation analytics and decision support - Leveraging technologies to process data from sources within and beyond the traditional value chain to provide real-time decision support and future projections. Key applications include advanced analytics, simulation modelling and artificial intelligence.



Case study: Anglo American used video, artificial intelligence and augmented reality to create its first Integrated Remote Operation Centre (IROC) in Chile

In 2021, Anglo American opened its first Integrated Remote Operation Centre (IROC) in Chile, deploying all the latest digitalisation and remote-control technologies “under one roof”. The centre uses video, artificial intelligence and augmented reality to manage operations at the Los Bronces mine, located 55km away in the Chilean Andes.

Determined to be at the forefront of digitalisation in the sector, Anglo American has also developed its own Advanced Process Control models (APCs) - virtual operators that implement the company’s operating model across all plant control systems, which allows for greater performance optimisation. The IROC in Los Bronces has over 100 APCs facilitating the grinding process of the mine’s semi-autogenous grinding (SAG) mill. According to Anglo American’s latest reports, the APCs have improved the stability of the process by 32% and reduced the energy per tonne milled by 17%.

But the company’s digital efforts didn’t stop there. Recently, the company launched its new project VOXEL – “the mining industry’s first digital transformation platform for data-driven decisions”. According to Arun Narayanan, Group Chief Data Officer at Anglo American, the platform uses machine learning and artificial intelligence for the implementation of its Operating Model:

“[Volex] encompasses the entire value chain for Anglo American and it helps us really move forward into the future. A platform built in the cloud... It is a very modern platform looking at all of the data that exists in our operations and trying to bring that all together is the first step."


Digital investments in the mining sector

Despite the slow adoption of technologies in the mining sector, more and more organisations are starting to realise the importance of digitalisation for their future growth and operational resilience. According to Rockwell Automation’s study, the top digital priorities for miners in the next three years are:

  1. To invest in new software and hardware to improve operational efficiency, decrease energy usage for enhanced sustainability, and reduce costs

  2. To seek professional services to guide management thinking and forward decision-making whilst driving innovation and facilitating supply chain integration

  3. To increase internal resources and attract skilled labour 

Challenges of integrating digital technologies in mining organisations

The harsh and complex environmental conditions including remote and underground operations have historically made technological advancement in the mining sector extremely difficult. However, the biggest problem for organisations seems to be effectively integrating data across their multiple legacy systems and equipment. As per Rockwell Automation’s survey, 63% of senior mining executives struggle to integrate data across multiple systems, whilst 39% are challenged to integrate their legacy equipment.

Securing a budget for less tangible data investments like cloud-based infrastructure can also be tricky in an industry that has typically been focused on physical assets. Financial officers often find it difficult to justify any digital transformation investments that are “not readily apparent on a balance sheet”. The global uncertainty due to the COVID-19 pandemic and the volatile commodities market have made this even harder. 

The lack of a clear digital strategy and employee skills in most mining organisations creates a further obstacle to the overall digitalisation of the sector. Over 30% of surveyed executives in Rockwell Automation’s study identified the lack of a digitalisation strategy and required skills as major limitations to their progress toward transformation.


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Best practices for easing mining’s digitalisation journey

The World Economic Forum has outlined the following 5 key steps for mining organisations to take during their digital transformation journey:

  1. Align strategy and operations with a clear strategy – To be successful in their digital evolution, mining organisations need a clear strategic roadmap that effectively integrates people, processes, and technology in a holistic way. Every change in an organisation should start with the people and consider all stakeholders in the value chain.

  2. Look outside the business – Firms should look for new ways (outside of their current value chain) to better connect with their buyers, suppliers, customers or value-added activities and products.

  3. Improve data access and relevance – Executives should focus on gathering real, applicable insights from data and sharing them clearly and effectively across their organisations.

  4. Attract and train tomorrow’s digital workforce – To be able to attract and retain the digital workers of tomorrow, mines should aim towards a drastic cultural change.

  5. Explore new partnerships and strengthen existing ones – Finding and working with the right partners is the foundation for best-in-class digitalisation, stronger integration with local stakeholders, and even new models of operation.

How can Cygnetise help mining organisations drive digital transformation?

Cygnetise provides a digital solution as an alternative to the paper-based management and distribution of delegated authorities and authorised signatories. It allows firms to streamline their operations and improve their governance controls by bringing all their signatory data into one golden source digital repository and unleashing the power of the latest blockchain technology. 

Key areas where Cygnetise can help mining organisations:

  • Treasury

  • Trading (Authorised traders for OTC and physical trading)

  • Company Secretary

  • Supply Chain Management

  • Procurement


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