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Technology can assist in preventing mining fraud

STREAMLINING OPERATIONS With Dariel’s Weigh Bridge Connectivity solution, drivers who transport minerals have a radio-frequency identification card and vehicle number-plate recognition to prevent fraud

Photo by Bloomberg

CURBING ILLEGAL ACTIVITY Manually keeping track of natural resources and minerals is no longer a viable option

Photo by Bloomberg

28th August 2015

By: Bruce Montiea

Creamer Media Reporter

  

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Technology is increasingly being used in the mining industry to reduce fraudulent activities, says software development company Dariel.

Dariel MD Malcolm Rabson notes that, while illegal mining is a significant challenge, it is not only these undertakings that result in fraud, as “much of it happens on the road between the mine and the processing plant”.

Manually keeping track of natural resources and minerals is no longer a viable option because it is too time consuming and is susceptible to human error and inaccuracies, he adds.

“As such, the use of tailor-made software solutions specifically developed for mining production houses is being used to not only optimise processes but also mitigate risks. Such software can identify gaps in legacy systems and assess the risks that might impact on its future operations and expansion.”

Rabson says these software solutions are integrated into companies’ in-house systems, allowing mines to benefit, as operations are always running, faster turnaround can be achieved and reporting is more accurate, which eliminates delays.

“This results in a central view of all operations, which can translate into cost savings. Additionally, irregularities can be identified immediately and the necessary action can be taken,” he notes, adding that such solutions can also be used to monitor good or bad business patterns to the benefit of the business.

Rabson adds that Dariel saw a gap in the market for a business system that can help eliminate fraudulent activities. This resulted in the company introducing its Weigh Bridge Connectivity (WBx) solution in 2013, after an exhaustive development process that had started in 2009. The company launched WBx to addresses fraud and improve business processes for mining companies.

He says the solution was initially launched as a pilot product in 2011, and became a full-blown installation at diversified miner Assmang’s Cato Ridge ferromanganese works mine, in 2013.

“WBx was designed to move away from the inefficient system of manual data capturing and, therefore, to enhance the business process. WBx enables weighbridge operators to enter data into a computer, as opposed to drafting data on paper,” says Rabson.

In addition, drivers who transport minerals have a radio-frequency identification card and vehicle number-plate recognition. There are also traffic lights with sensors, which enable weighbridge operators and supervisors to focus on their primary job function of overseeing the processes and identifying exceptions, instead of spending time capturing data.

Modernising Technology
Rabson tells Mining Weekly that mines still using legacy technology are not receiving the full benefit that new technology can offer them.

He says legacy systems can no longer serve the industrial sector efficiently and, as markets and market conditions change, businesses need to adapt to the changes accordingly.

“While technology is adaptable, like every- thing, it has a sell-by date, after which it becomes more of a burden than a value-adding component in a business.”

Rabson says business leaders are faced with the challenge of knowing when it is time to “bite the bullet” and retire their legacy systems.

“If one asks information technology practitioners, the answer will usually be to move to a new system since they make a judgment based on technical functionality. However, this may not always be the best business move. Business leaders need to examine the situation properly before they can decide whether to retire their legacy systems or not.”

Rabson says business leaders should examine seven measures when deciding to keep or discard their legacy technology.

Scalability refers to how the system handles growth in terms of new users or number of transactions, or both. Maintainability considers the degree of difficulty for staff when trying to understand the legacy code and make any required changes. Extensibility refers to the business having to develop new components to handle market demands.

Further, integrity considers the capability of a system to detect and manage invalid data, whether it requires third-party software, “or worse”, manual coding. Security assesses a system in terms of its five pillars of information security – authentication, authorisation, integrity, confidentiality and nonrepudiation – and whether it requires additional work to secure data to acceptable twenty-first-century standards. Flexibility considers the ease with which the software can be deployed in different environments.

“However, replacing a legacy system is never simple or cheap, owing to the time, effort and money invested in it,” cautions Rabson.

Rabson says new technologies increase the effective control of access to a mining operation and present the mining sector with the prospect of more efficient ways to conduct daily operations, which ultimately saves a lot of money for the mining companies.

“Modern technologies also help industrial companies improve their corporate governance with respect to processes and keep these processes within the parameters of legislation, which enables the company to focus on the core business aspects,” he concludes.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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