The Future of Mining

is Digital
Digital technologies allow todays mining
operations to reach new levels of performance from pit to port, across the whole
mine value chain.

The digital opportunity

Mining companies are shifting their strategies and adopting new business and operating
models to include new technologiesand are doing so on a more rapid and global basis
than ever before. Why? A combination of market volatility, changing global demand,
radically different input economics, new locations in search of more reserves, a focus
on a longer asset lifecycle and a commitment to operational excellenceas well as
policy shifts around the globeare all contributing to a seismic shift in the industry.

KEY DIGITAL TECHNOLOGY ENABLERS

Automation
Analytics/Big Data
Mobile
eCommerce
Connected Everything
Internet of Things
Cloud
Active Defense
Social Media/Collaboration

Decades of cost reduction and the aging workforce has left mining companies with
limited resources to adjust. To seize the opportunity, mining companies must leverage
digital tools and capabilities to improve operating efficiency, develop more accurate
and agile planning, heighten vendor awareness and collaborate with business partners
throughout the value chain.

The digital journey

Digital transformation can turn industry challenges into real business value.
INDUSTRY CHALLENGE

POTENTIAL BENEFITS OF DIGITALIZATION

Effective capital project execution

Projects executed on time and within budget

Effective contractor management controls

Excess capacity

Improve modeling and business portfolio

Rationalize controls and capital expenditure

Exploration of new frontiers

Go remote and autonomous

Reduce onsite personnel and contractors

Resources nationalism and "Green"

Maximize safety
Optimize sustainability
Maximize stakeholder engagement via analytics on social networks and

collaboration tools

Demand/price uncertainty

Integrate trading and planning operations to maximize value

Cost management and cash control

Improve mine, plant, rail and port integration

Improved data capturing and modeling
Reduce transitioning within mine, remote access to information, increased

productivity
Improve CAPEX and OPEX
Better cash flow and working capital

Competition for talent

Greater leverage of expertise to solve issues

Improved training methods and improved support at the point of need
Change the working environment to attract the next generation workforce
Address aging workforce and knowledge capture issues

Maintaining longer asset life cycle

with low operating cost

Longer asset life cycle, better return on assets

Improved availability and utilization of assets
Improved safety in operating heavy machines

Increasing productivity

Integrate mine to port processes

Create decision-oriented information out of increased data density from

geological data
Optimize available resources in alignment with market and shipment needs

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Industry chokepoints
The mining value chain is full of chokepoints that can be eliminated with intelligent use of digital enablers.
Mine
planning

Exploration

Comminute

CAPITAL EFFECTIVENESS

Processing

OPERATIONAL EFFECTIVENESS

Non-optimal portfolio strategy

Challenges in capital project execution (budget &

Inbound fleet
management

schedule)
Lack of effective collaboration across teams
Lack of controls in project reporting and execution

across geographies

Low performing and underutilized fleets

No integrated/optimized planning
Limited manual intervention in fleet operations
Long lead time between sampling and modelling
Poor simulation capabilities to optimize overall

mining plan
Lack of accuracy on mass and quality of materials

moved/on hand vs. plan

Inability to access real-time information on people,

Mine
development

EFFECTIVE MAINTENANCE
Low maintenance support in on machine operations
Low collaboration levels among teams
Most operations based on on-site interventions
Highly reactive maintenance causing disruption to

assets, operational performance

Ineffective inventory management
Increasing cost of production and depleting ore

reserves and grade

No visibility of ores across the supply chain nodes

operations

Thickening
and mineral
concentration

Stockpile
management

Shipping

WORKFORCE EFFICIENCY &

TALENT RETENTION

FINANCIAL CONTROLS

Contingent labor to be managed at a

and controls at the operational level

Period-end closing can be slow
Lack of integration of financial
reports across SBUs at the enterprise
level

large scale
Difficult/costly replenishment of
workforce
Skill imbalance
Mature vs. frontier markets
Changing skills profiles due to process/
technology innovations
Most work done onsite
Challenging to address skill shortage
due to aging workforce and talent
competition with other lucrative
sectors

Lack of effective financial monitoring

HEALTH SAFETY ENVIRONMENT

& COMMUNITIES

COMMERCIAL OPTIMIZATION
Demand uncertainty and increasing

volatility

Risky frontier markets

Poor safety performance
Increasing pressure to meet

Minimal demand-led decision making

Lack of pit-to-market integration
Poor cost information to support

environmental constraints
Limited ability to track/identify

hazardous situations
Disperse teams/lack of personal
tracking

trading decisions
Low integration of trading and

planning
Weight and grade variability from

source to destination

The digital landscape

The potential impact of these digital plays is significant across the mine value chain.
Digital Mine

DESCRIPTION

KEY BENEFITS

Increased sensoring, automation and data intensity across all mine

operations to facilitate better integration and flow synchronization.
Applied analytics for better decision making. Mobility to decrease
people movement, increase self-managed transportation means
and reduce need for people on site. Increased operations managed
remotely. Better tracking of people and anticipation of safety risks.

Decrease operating costs

Increase project/mine NPV
Increase revenue
24/7 anytime, anywhere asset performance information
Increase paperless maintenance
Decrease cost per work order and downtime
Increase EBITDA, free cash flow and ROI
Meet planned project close out expenditure and

schedule

Digital Sales &

Marketing

Using analytics, achieve improved trading and mine planning

integration by leveraging new revenues and profitability
opportunities based on updated maket and plant-relevant
information.

New sales opportunities/increase revenue

Improve profitability through better leverage of

Digital Supply
Chain

Monitor stock across the value chain (both blend and quantity).
Improved visibility of the stockyard. Increased automation of rail
and fleet transport load and tracking. Applied analytics for improved
sourcing. Use of deep market intelligence and analytics for improved
supplier search and selection process supporting better negotiations
and improving overall TCO.

Optimize throughput
Reduce supply chain operational costs and working

Digital portfolio strategy that simulates financial and operations

scenarios and evaluates bottlnecks and interdependencies. Use of
big data and analytics for improved tracking and control of capital
projects costs including material and contractors, as well as an
improved integrated view of project execution. Improved data
management across and post-project.

Reduce project leadtimes/delays

Improve budget control and reduce overall project

Leverage digital technologies to improve enterprise function

efficiency through better visibility, financial performance and
workforce collaboration/engagement. Move support functions
to remote operating centers. Use of social networks to identify
stakeholder-related risks and opportunities and better engage
employees and local communities.

Decrease cost of hiring and training

Decrease travel and personnel costs
Increase talent retention
Improve employee and stakeholder satisfaction

Digital Capital
Projects

Digital
Organization

The path and approach for digitalization

Align the organization, define

accountabilities,
governance model
and focus areas.

Agree on a roadmap,
based on business
need and technical
maturity.

Define a business
case for change
that includes a
prioritized set of
initiatives addressing
the roadmap.

Address the
skill gaps to get
started on your
digital journey.

trading opportunities

capital
Reduced sourcing costs/TCO

costs
Integrated project planning

Start execution
on 1 or 2 digital
initiatives to
get value.

FOR MORE INFORMATION

Copyright 2014 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.

Please contact Manish Panjwani, Industry

Technology Lead at manish.panjwani@accenture.com
or Rachael Bartels, Global Mining Industry Lead
at rachael.bartels@accenture.com. Or, visit us at
www.accenture.com/mining.