FRANCOIS DU TOIT Employing technology early in the mining process is a key component to mitigating business risks
Mining companies need to adopt an increasingly sustained and strategic approach to their operations, using end-to-end processes and systems to enhance the productivity and profitability of their ore deposits, says France-based software company Dassault Systèmes.
Speaking at the Southern African Institute of Mining and Metallurgy’s Surface Mining 2014 conference, which took place at the Electra Mining Africa trade show last month, Dassault Systèmes Geovia Africa strategic account manager Francois du Toit highlighted the focus required for end-to-end mining strategies to ensure efficient operation.
He noted that, while growing company profits remains a priority for investors and mining industry executives, the recent downturn in the price of and demand for mining commodities has exposed the commonly deployed mining strategy of producing at any cost.
Du Toit explains that from early 2001 to the beginning of 2012, most mining companies focused on extracting as much material from the ground as quickly as possible to take advantage of the mining supercycle.
“Many companies were mining at any cost to get the material to market as quickly as possible to satisfy customer demand,” he says.
However, with the dramatic end of the latest cycle, many mining companies were not adaptable enough to augment production to match the rapidly changing commodity prices and rising costs. “This left many mining companies vulnerable, and those that could not adapt quickly either went out of business or mothballed projects requiring large expenditure,” says Du Toit.
Mining companies are starting to actively seek help from vendors and companies with experience in business transformation in other industries. He says many companies actively aim to learn from industry experience, instead of pioneering new fields, which may lead to losses. “The new generation of mining CEOs has started to look for answers in more innovative industries, such as aviation, automotive and manufacturing.”
Du Toit believes that employing technology early in the mining process is key to mitigating business risks, as it provides better control over processes from feasibility to customer delivery.
He adds that if mining operations can leverage technology to monitor the entire life of a mine – to visualise, from conception to construction, production, mine closure and reclamation, when the mine is ultimately turned back to nature – the entire mining industry can be “revolutionised”, with the ability to home in on controlling costs and eliminating inefficient production.
Du Toit highlights simulation as one of the benefits of implementing high-end technology early in the mining process, as it can be used to identify potentially costly problems before they occur. “This is proven in other industries, which have identified significant opportunities to increase efficiency by employing broader and deeper simulations.”
He highlights Dassault Systemès’ Mining Execution Management framework, which provides an approach that combines technology with processes and systems for mining companies to leverage global three-dimensional collaboration to substantially boost productivity across operations, as well as capture and communicate best practice.