The adoption and implementation of exponential technologies will increase productivity and ensure greater efficiencies throughout the mining sector globally, asserts advisory firm Deloitte digital transformation in Africa head Gareth Rees.

He points out that the mining sector has been developing automated technologies for decades, which has resulted in a level of sophistication in this regard. However, Rees is concerned these systems sit in isolated pockets, or “islands of automation”.

“For example, we recently completed a project at a large South African mine, which has an advanced truck dispatch system with radio signalling that can provide machine operators with in-depth diagnostic reports. However, this valuable data is not fully unlocked as it remains in this silo and is not used to forecast requirements further down the value chain,” he explains.

However, through the use of Internet of Things (IoT) platforms, the aggregation of information to where it is needed in the company’s operating structure is being simplified.

Rees says that the conversation Deloitte is currently having with its clients is “about deploying an IoT middleway layer, what is known as Edge Gateway capability, to retrieve information from the edge so it can be used to create value”.

He elaborates that edge computing occurs by pushing the frontier of computing applications, data and services away from centralised nodes to the logical extremes of a network.

Rees remarks that what is required is that an “ingestion device” be placed at the edge point, which allows a company to cleverly filter the most important data that is required to realise business value.

This, in turn, allows companies to make calculations and determinations across multiple systems and drive meaningful value-adding workflow.

Once all the information is stored in one place and it is normalised (formatted into a standardised format), then the analytics can be undertaken, such as energy management, truck dispatch, logistic systems and customer management.

What Should be the Focus?

The concern Rees has regarding the current discourse relating to IoT is that the focus is on high-tech sensors, drones and other similar application bases. However, Rees says what is referred to as the middleway layer should be the focus for industries as it enables companies to gather process-applicable information, make appropriate decisions and then push the resultant workflow optimisation analytics back into the system to improve the way the business operates overall.

“Ultimately, there are two main concepts that need to be understood by companies as they are different, namely digitisation and digitalisation. The IoT in many ways is just digitisation as it equips a company with the data tools to make better decisions, but only by changing process and acting on this data can a company digitalise.”

Rees comments that mining companies need to drive operational efficiencies in a “very big way” and, in Deloitte’s view, visualising an entire internal value chain using IoT is a “really good way” to achieve that. This is not just internally on the mine, but also into the company’s value chain, he emphasises.

Rees says that, in a mining environment, one does not expect to have fibre-optic cable in place across the entire mine site. Therefore, the principle is that companies need to make use of very thin networks, such as commercial third-generation – commonly known as 3G – cellphone technology or other narrow band networks.

He highlights that the implementation of IoT technologies from pit to port, through a centralised data control system, allows mining operations to pool resources to optimise production and reduce costs. “It will also enable mine managers and executives to monitor all aspects of their operation in real time,” Rees states.

IoT in Action

IoT systems can be deployed in a matter of weeks, which indicates the agility and flexibility of implementing these solutions. “The challenge is not implementing the solution, but transforming your business to take advantage of this new insight-rich environment.”

Rees informs Mining Weekly that Deloitte has established a partnership with South African software company IoT.nxt, which has developed a platform to integrate multiple systems, applications, protocols and ‘things’ into a single operational and management framework, which “creates a seamless bridge between data sources and brokers’ data availability across multiple platforms and things, driving informed decision-making and delivering real-time organisational visibility”.

He emphasises that this is not a capital expenditure undertaking, but rather a software application matter. Rees says IoT.nxt’s software has been built as a scalable nimble service whereby devices and networks are seamlessly integrated with interoperability that protects companies’ existing investment.

He highlights that another important technological development is the use of blockchain systems. A blockchain is a distributed ledger database that maintains a continuously growing list of transaction records or blocks. This allows for seamless transaction with third parties that are not known or trusted, as all information regarding the transaction will be stored in multiple locations across the entire blockchain.

In September, diversified major BHP Billiton revealed at the second yearly Global Blockchain Summit, in Shanghai, China, that it intended to use blockchain to record movements of wellbore rock and fluid samples, while also better securing the real-time data that is generated during delivery. The company said that the system would improve its supply chain processes, while also allowing it to work more effectively with partners.

Rees points out that blockchain would be well suited for use in the diamond sector as he explains that each diamond has its own unique identity, which can be registered on the blockchain. Once the diamond’s information is on the system it will be there forever and people will be able to track all the relevant information including, but not limited to, who purchased it and at what price, and where and when it was mined.

He says this would help companies comply with the Kimberley Process Certification Scheme (KPCS) - the process established in 2003 to prevent conflict diamonds from entering the mainstream rough diamond market. The KPCS was set up to ensure that diamond purchases were not financing violence by rebel movements and their allies seeking to undermine legitimate governments.