Kinross Gold Corporation October 2019 by Business Chief Middle East

Setting a gold standard for mining communications

Kinross Gold is utilising IT as the backbone of its innovation strategy WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

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KINROSS GOLD

A flexible IT strategy is helping Kinross Gold plan for the future of its diversified operations

ounded in 1993, Kinross Gold (Kinross) is a senior gold mining company with a diverse portfolio of mines and projects in

the United States, Brazil, Chile, Ghana, Mauritania, and Russia. Headquartered in Toronto, Canada, Kinross employs approximately 9,000 people worldwide. The company is focused on delivering value through operational excellence, balance sheet strength, disciplined growth, and responsible mining. 04

Kinross’ diverse portfolio of mines stretches from Africa to Russia. The senior gold mining company has embraced the challenge of developing its operations at remote locations across the globe where it has a strong track record of either meeting or exceeding production guidance targets for the past seven years, while regularly meeting or coming in under annual cost and capital expenditures guidance. A key component to delivering on its goals is a flexible IT strategy capable of planning for the future of Kinross’ operations. Regional IT Projects Manager – Africa, Néstor Alemán Esteban has been working for the company for almost seven years. Alemán is based in the Canary Islands at the company’s Las Palmas program management office (PMO) for IT Projects in Africa, where he oversees all projects; also taking

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KINROSS GOLD

“ There needs to be an IT strategy behind advances in mining. To make the most of the features available from the latest software and automated hardware the technology can’t exist in silos” 06

— Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold

responsibility for the financial control of the capital budgets of the IT department. “Much of my work has been focused on the expansion of the Tasiast mine in Mauritania,” explains Alemán. “We also run projects in the main office of Kinross in Mauritania’s capital city, Nouakchott, where we’re working on connectivity for employee accommodation.” What challenges does the company face to develop and support communications infrastructure when establishing mining projects in such remote areas? “When you’re examining the status of the mining industry everybody is talking about innovation and automation but nobody speaks about IT,” laments Alemán. “It’s the communication behind the technology initiatives that makes them work. In developed countries IT is taken for granted, but what if you are in the middle of a remote area with zero coverage from any telecom provider? In most cases that’s the story with a new mining operation and the company has to find a way of working around this. It’s important that IT and cybersecurity are not left behind, because without them you can’t support innovation safely. It’s a big risk.” Kinross was fortunate that when

CLICK TO WATCH : ‘KINROSS PROCEEDING WITH TASIAST 24K PROJECT’ 07 it acquired Tasiast from Red Back, a

to achieve the installation of a 60km

telco provider had infrastructure in the

aerial fiber optic, plus a 1km buried fiber

area. However, it was necessary to

optic, to get the site connected to the

start from scratch and negotiate with

underground main fiber connection of

the provider to boost bandwidth at the

Mauritania, connecting the south with

site. “We started with a 25mb micro-

the north.” Alemán believes satellite

wave connection with around 1,000

communication offers a viable reach-

people on site,” recalls Alemán. “When

back approach, but it’s typically more

activity at the site ramped up we were

costly than microwave or fiber. While

hosting around 2,500 employees with

satellite can solve the connectivity

a 45mb connection and then man-

problem from day one, communica-

aged to get that increased to 90mb

tions infrastructure offered by local

when the workforce reached 4,000.

providers over time may provide more

We now have a fiber optic connec-

cost-effective alternatives.

tion of 155mb+. It was challenging

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KINROSS GOLD

headquarters of Kinross in Toronto

and from across Mauritania, carrying

handles the perimeter security of the

with them old and unsecured devices

company’s network bubble. “We are

being connected to the network.

responsible for the security of the mine

Alemán believes innovation should

site. We have Las Palmas, Ghana, and

be about much more than modernisa-

Mauritania connected together via

tion with equipment. “There needs to

Toronto, so when somebody enters our

be an IT strategy behind advances in

network through the perimeter secu-

mining,” he urges. “To make the most

rity of Toronto it’s our responsibility to

of the features available from the latest

ensure they don’t behave maliciously in

software and automated hardware the

our network,” adds Alemán. The chal-

technology can’t exist in silos.” Alemán

lenge for his team is maintaining those

champions the concept of interoper-

levels of security when contractors are

ability to ensure value reaches across

arriving from Morocco, Mali, Senegal

the operation. “Mine management

need to ask themselves where they

chasing new systems and machinery

see operation two years from now in

that might not be compatible with each

terms of innovation and modernisa-

other.” He argues IT should have a seat

tion. Long-term strategies are im-

at the decision-making table, they’re

portant. For example, to implement

not just the guys providing WiFi but the

autonomous vehicles you need to set

team who ensure systems can commu-

your goals by changing mindsets and

nicate with each other.

processes way before you start pur-

Kinross has made big steps forward

E XE CU T I VE PRO FI LE

Néstor Alemán Esteban Néstor Alemán Esteban has been an IT Project Manager at Kinross, the world’s fourth largest gold mining company, for almost seven years. Prior to that he worked for NXP Semiconductors (formerly Philips Semiconductors) and Blacktrace Holdings (a world leader in productising science). A PMP and PRINCE2 certified Project Manager, Alemán holds an MSc in Telecommunications Engineering as well as completing multiple postgraduate courses in Technology, Business and Project Management. “One of the things I’ve discovered during many years working in Africa is that I have learned more about project management, people management and communication protocols, by working every day on the field of battle than I have from any academic certificates,” says Alemán. “I’ve worked in the chemicals and microelectronics industries but what fascinates me about mining is the crossover in specialties and the need to keep up with all of the new innovations with technology each department, from geology to operations and processing would like to implement.”

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KINROSS GOLD

$3.3bn+ Approximate revenue

1993

Year founded

9,000

Approximate number of employees

2-3

GUIDED SPOTTING RESULTS:

100

Billion additional TONS of optimized haulage*

* Achieved at customer sites

DECADES of value-driven results

ADDITIONAL Loads per Hour*

150 INCREASE

Mean Time Between Failure (MTBF)*

Doing More to Deliver More

11 to alert IT of new business cases that require its supervision with a telematics process. Alemán sees further room for improvement with communication protocols. “The mine operation should be understood as a unique entity,” he says. “This is why a holistic approach is so important. If you upgrade one part of a system then it needs to be connected to the rest. It’s an issue that needs to be addressed in the industry.” He believes, when it comes to innovation, while mining is keen to catch up with other industries like aerospace

“ The mine operation should be understood as a unique entity. This is why a holistic approach is so important. If you upgrade one part of a system then it needs to be connected to the rest” — Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold

there has been a pressure to adapt quickly which heightens the need for w w w.k i nro s s . com

KINROSS GOLD

workarounds. “The problem with mining is that it’s a mission critical operation so the pressure to make things work regardless is greater,” he says. “The extreme costs associated with exploration, production and operation mean that network downtime can destroy profitability.” Tasiast is undergoing major expansion in two phases to increase the size of the operation. IT plays a vital role in the execution of all projects and one that Alemán notes could be enhanced in the mining industry by making it a 12

part of the early stages of the decisionmaking process. “Vendors need to collaborate more in our industry, because in others like aerospace or the military they have solved the interoperability puzzle,” he says. “They have standardisation with protocols so any vendor that wants to sell any equipment or hardware systems to these industries has to work to those requirements which enhances collaboration.” Kinross has a longstanding partnership with Modular Mining. The global leader in the delivery of real-time computer-based mine management solutions for surface and underground mining operations supplies the

“ Vendors need to collaborate more in our industry, because in others like aerospace or the military they have solved the interoperability puzzle” — Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold

gold miner with its DISPATCH Fleet Management System (FMS). “It has optimised operations at Tasiast, saving time and reducing costs,” confirms Alemán. The system gives mines automated, real-time monitoring, management and visibility of their operations whether above or below ground. “We connect the data received to our mobile maintenance workshop,” explains Alemán, highlighting the use of predictive analytics to drive efficiencies across the fleet. Kinross also deploys Caterpillar’s Terrain applications for precision drilling, while guidance and tracking tools are used to control the stability of the slopes. “All of this is running wireless so we have to ensure all the machinery is connected across our IT network,” he says. While innovative applications are helping deliver huge operational improvements, Alemán points out that mines are traditionally run on controlled, isolated networks which, though the technology was old, made them safe. “Now with the Internet of Things (IoT) and cloud applications the temptation is to connect the mine all the way to the internet,” he says. “It’s a big security risk for mining operations opening up the control network to the w w w.k i nro s s . com

KINROSS GOLD

S TAT I S T I C S

Tasiast local network

• +30,000 devices connected • 10 GB backbone network • +100 Km of fiber optic pulled • +110 radio frequency links • 360 WiFi access points • 280 Switches • Six telecommunication towers +45m • Nested mine wireless network • Nested ICS/SCADA Network • Nested digital radio network Tasiast servers infrastructure • • • • •

4TB RAM memory 408 logical processors +450GHz CPU +330 TB storage +12 servers hosting +210 virtual machines • P roviding services to +1000 IT users • T wo sites in high availability +hot-site mode

Mining communications requirements •A ccess to corporate business applications • Access to real-time communication • The importance of well-being – keeping on-site personnel connected • D ealing with medical emergencies • Large file transfer • A sset tracking and management • Onsite (cyber) security • D ata storage, back up and redundancy – insuring against power outage and extreme weather

world via the vendors.” Kinross is partnered with Cisco, described by Alemán as “among the best in the market” when it comes to networking. “All our main station network, our business network, is on Cisco. At Tasiast we are completing the migration for everything involving our WiFi infrastructure to Cisco’s industrial networks and we’re very happy with the process.” He stresses the choices made with innovations should be site specific, based on studying the weaknesses of your operations and weighing those against the opportunities to add value and should be made before committing to any hardware/ software purchases. “Mining is a complicated industry,” he concedes. “At the end of the day, the objective with things like automation and driverless trucks is to remove people from dangerous areas.” The result at Tasiast is a challenge for Alemán’s team in managing the workarounds required for a mix of technologies that may lack standardisation when it comes to communication protocols, but will offer significant advances for Kinross in its most remote operations.

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