Mining Magazine - September 2021 by Mining Global

September 2021 | miningglobal.com

GACW

REINVENTING THE WHEEL IN AN EVOLVING INDUSTRY Claroty: Industrial Cybersecurity: More Critical Than Data Security? Accenture: Industry Leaders Adopt New Mining Technologies

Mining Tech Leaders

The company’s Air Suspension Wheels reach optimum levels of performance and last for years

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The Mining Team EDITOR-IN-CHIEF

SCOTT BIRCH

EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON DUKE WEATHERILL JORDAN WOOD

OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH

VIDEO PRODUCTION MANAGER

PRODUCTION EDITOR

DIGITAL VIDEO PRODUCERS

JANET BRICE

KIERAN WAITE

SAM KEMP EVELYN HUANG

MOTION DESIGNER

SALES AND MARKETING DIRECTOR

TYLER LIVINGSTONE

JASON WESTGATE

MARKETING MANAGER

MANAGING DIRECTOR

KAYLEIGH SHOOTER GRETA ANDREJEVAITE PROJECT DIRECTORS

GLEN WHITE LEWIS VAUGHAN MICHAEL BANYARD STUART IRVING KRIS PALMER MIKE SADR MEDIA SALES DIRECTOR

MARK CAWSTON

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

EDITOR'S LETTER

Good Times “Investing in new technology like AI can improve efficiencies and maximise productivity”

MINING MAGAZINE IS PUBLISHED BY

The global mining industry is enjoying record results as demand for metals soars While the world’s biggest mining companies have reported record profits of late, tech innovators can also share the wealth. Rio Tinto reported a record first half net profit which saw it triple payouts to shareholders. Net profit rose to more than US$12.3 billion compared to ‘just’ US$3.3 billion a year ago. This saw Rio Tinto pay out US$9 billion to shareholders. Anglo American paid US$4.1 billion, Glencore US$1.18 billion – with plenty more to come. This boom has been fuelled by soaring commodities prices. Copper is up around 21% so far this year. Lithium has more than doubled. Why is this good news beyond dividends? High commodity prices mean more mines become viable, exploration that previously may have been put on hold becomes economically attractive, and investing in new technology like AI can improve efficiencies and maximise productivity. This is good news all round for the industry.

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CONTENTS

Our Regular Upfront Section: 08 Big Picture 10 The Brief 12 Global News 14 People Moves 16 Timeline: Newmont Celebrates 100 Years 18 Trailblazer: Florence Drummond 20 Five Mins With: Mark Ashcroft

Digital Mining

Reliability Analysis Drives Mining Asset Management

Reinventing the Wheel in an Evolving Industry

Industrial Cybersecurity: More Critical Than Data Security?

GACW

Claroty

Industry X.0

What is Industry X.O and Why Businesses Should Move Towards It?

A Business Solutions Provider

The Mining Supply Chain and Ops

Maxam Tire

Technology

How IoT Technology is Transforming the Mining Industry

Supply Chain

Top 10

Mining Tech Leaders

BIG PICTURE

electrive.com

September 2021

Mining is gradually going green Global As issues regarding climate change continue to permeate almost every aspect of the high-emitting mining industry, corporations are eager to accelerate progress towards a decarbonised future. In an effort to keep pace with the global agenda, the race is on among competitors to increase lithium and nickel output to meet the rising demand for battery metals. But questions still remain about the sustainable sourcing of the battery metals and whether the companies who are claiming to place sustainability at the centre of their new operations are, in fact, sincere with their promises. This much, however, is clear: the mining industry is turning a corner, away from outdated and damaging fossil fuels and towards a more renewable, ecofriendly-focused future. As anticipation regarding the looming electric vehicle revolution grows, it brings with it a sense of optimism for an industry that, to date, is one held accountable for an issue that has come to threaten the future of our planet. Perhaps an industry that has contributed to the problem also holds the key to the solution. miningglobal.com

THE BRIEF “These wheels must be designed with the same precision as the vehicle itself, with a metallic structure, reactive suspension and mechanical parts. The identification of that weakness became an inspiration at first, and then an obsession”

BY THE NUMBERS Revenue Contributions of the Top 40 Mining Companies - PwC

Zoltan Kemeny President & CEO, GACW 

US$123.15bn America

“The bottom line is everyone, no matter which field or sector they are in, should be aware of industrial cyber security and how vital it is to protect the world’s increasingly connected industrial plants and production facilities” Simon Chassar

Chief Revenue Officer, Claroty  READ MORE

“We strive to be a true business partner, not a tire sales force. We have built the MMG to become a business solutions provider” Matt Johnson

Vice President, Maxam Mining Group 

US$288.63b APAC

September 2021

EMEA

US$544.37bn Total

Did you know? 70% of participants from 100 huge mining organisations across the world believe that IoT would give them a significant advantage against competitors - Vanson Bourne READ MORE

Shart and Connected Things It is projected that there will be an overabundance of 20 billion smart and connected things by 2021 - Gartner READ MORE

The advantages of IoT 41% recommend that IoT would build business process automation, and almost half assure that IoT could be utilised to discover cost-saving opportunities - Vanson Bourne READ MORE

US$132.59bn

What is Bitcoin Mining and How Does it Work? Painstaking, costly and sporadically rewarding, cryptocurrency - despite its flaws - is appealing to many investors due to miners being rewarded for their work with crypto tokens.

 KOBOLD METALS Announcing plans to develop a new major nickel, copper and cobalt project with AIMlisted Bluejay Mining, the shares of Jeff Bezos and Bill Gates-backed venture KoBold Metals skyrocketed by 25.76% at 11.7p per share.

How is Bitcoin Mined? Bitcoin mining is the process of new bitcoins entering into circulation; it is critical to the maintenance and development of the blockchain ledger. The process is performed by using sophisticated computers that can solve complex computational maths problems.

 BATT MOBILE EQUIPMENT Batt Mobile Equipment (BME) has secured a AUS$4.5mn grant to ditch diesel and produce heavyduty battery-electric vehicles for underground mines.

So Miners get paid for their work as auditors? Yes - miners verify the legitimacy of Bitcoin transactions. This process is meant to keep Bitcoin users honest. It was conceived by the founder of Bitcoin, Satoshi Nakamoto. By verifying transactions, miners can help to prevent the ‘double-spending problem’, whereby a Bitcon owner could illicitly spend the same Bitcoin twice. Once a miner has verified 1MB of Bitcoin transactions (a block), the miner is eligible to be rewarded with a quantity of bitcoin. However, this does not mean that everyone who verifies transactions will get paid.

 CHILE BILL The Chilean government is discussing a royalty bill that could close some mines in the country. The bill proposes a 3% royalty on sales of copper that would also increase in line with rising copper prices. The National Mining Society says it would “make private mining impossible”.

So what conditions does a miner have to meet to get paid? To earn bitcoins, miners need to meet two conditions: • Verify 1MB worth of transactions • Be the first miner to arrive at the right answer - or the closest answer - to a numeric problem (proof of work)

 BHP GROUP LTD Union of workers at BHP Group Ltd’s Escondida copper mine in Chile have rejected the final labour contract offer. BHP has requested governmentmediated talks to avoid a strike.

W A Y U P SEPT21

W A Y D O W N

miningglobal.com

TIMELINE A Year of Change at

As the global sustainability drive promotes a shift in global industry purchasing, the mining industry is gearing up for the abolishment of coal and the spike in other resources. We take a look at some of the industry actions of Glencore during the past year. A year of significant change.

October 2020

January 2021

Signs £136.1mn Deal with Sandvik Glencore signed a deal with Sandvik for the procurement of underground and mobile mining equipment for its metal mining operations in Queensland, Australia.

Sells Majority Stake in Zambian Copper Mine Glencore relieved itself of its 90% share of the struggling business practices at the Mopani Copper Mines. Zambia, to the statecontrolled investment organisation, ZCCM Investment Holdings.

September 2021

April 2021 Signs MOU with China Huaneng Group on CCUS project China Huaneng Group Clean Energy Research Institute and Carbon Capture Transport and Storage Company of Glencore sign a Memorandum of Understanding (MOU) for the cooperation on carbon capture utilisation and storage (CCUS) technology.

May 2021

June 2021

July 2021

Strikes a deal with Katanga over US$5.8bn rights issue Glencore agrees to swap US$5.8bn for a larger stake in Katanga Mining Limited in an effort to lower its debts to the company.

Acquires shares in the Cerrejón mine Glencore buys shares of Cerrejón in Colombia from Anglo American and BHP to obtain 100% ownership of the coal mine—closing a joint venture between the three companies.

Appoints Gary Nagle as CEO Gary Nagle joined Glencore in 2000 and has now been appointed as the company’s CEO, succeeding the previous executive Ivan Glasenberg.

TRAILBLAZER

Empowering Indigenous Women Florence Drummond

Job Title: CEO and Co-Founder Company: Indigenous Women in Mining and Resources Australia (IWIMRA)

elieving in the importance of raising the profile of indigenous women in mining, Florence Drummond is the proud CEO and Co-Founder of Indigenous Women in Mining and Resources Australia (IWIMRA). Whilst Drummond’s early career started in tourism and hospitality; she moved to Weipa (Northern Queensland) to be closer to her family, where she began working as a haul truck operator at the Bauxite mine. “Moving to Weipa with no confirmed job and experiencing caravan park living was definitely character building, and I loved it. Successfully securing a role as an Operator was a great opportunity to be part of the industry,” reflects Drummond on her early years in the Mining industry. After spending more time with her

September 2021

By 2030 IWIMRA aims to: support 10 people a year women and men - to complete the Australian Institute of Company Directors’ courses and gain a qualification that is valued in Mining

team members, Drummond began to learn more about their ambitions and challenges, taking notice of the lack of communication when it comes to opportunities to progress. “I was approaching it from the perspective of ‘why are there not many Traditional Owners and other Indigenous people as leaders on-site [...] But I gradually began to focus on what was and wasn’t in my control and how I could proactively make myself a better candidate for when opportunities came along. “This resulted in me moving for work in the Pilbara after being offered a supervisor role - my whole mantra with IWIMRA was around progression and being proactive, so if I wasn’t going to action that, then who was I to even be talking about it,” says Drummond. The Leap to Full Time CEO of IWIMRA Founded in 2017, the IWIMRA has been shaped by the experiences Drummond has faced. “The genesis for IWIMRA was my own experience

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TRAILBLAZER

working in the industry as a machine operator. I worked in a remote location and struggled to really find opportunities to grow and progress within my career [...] So, it was important to reach out and see if there was any support, specifically for Indigenous people - but there wasn’t any. It’s what led me to start the conversation on Facebook, to make social connections and identify if anyone else was feeling the same frustrations.” However, as IWIMRA grew, the incident at Juukan Gorge and the Indigenous engagement that followed it, running the IWIMRA, was perceived as a conflict of interest for Drummond due to her position. “It was about this time I understood how IWIMRA could be utilised better for our online community and for people in our networks who wanted to learn more. I had to choose whether I wanted to continue my supervisor role or fully commit to IWIMRA, and I went with IWIMRA, which was scary as heck, but a really empowering decision to make,” explains Drummond. IWIMRA’s Mission “IWIMRA is a network to raise the profile of Indigenous women. To encourage visibility, voice and quality participation of Indigenous women in the Australian mining and resources industry,” explains Drummond. While many companies are driving Indigenous employment and engagement campaigns, the purpose of the initiatives is often not clearly communicated at an operational level. 16

September 2021

“There are no formal safe spaces for Indigenous people to have a yarn and talk about issues, which is why I am looking forward to addressing racism on-site, as it is a key contributor and barrier for women,” adds Drummond. With the industry facing a call to action for better and more transparent communication on functions in the mining industry, IWIMRA addresses this issue by sharing profiles within its network, creating a safe space for Indigenous

“Over the past two years, we have seen the organic growth of our network to our international communities, who through our shared history and culture, have much to learn from each other. It is a relationship we will continue to nurture as the functionality of digitalisation continues to become accessible in the regions.”

women to find their voice, understand their value, and how their voice can influence. “We find that one of the common elements is that people on the ground, who feel they’re being treated poorly and can’t do anything about it, often aren’t aware of options to make changes. This was a huge call to action for us to build on people’s self-confidence, to communicate, ask questions, take ownership and find their voice to shape their own narrative,” comments Drummond. miningglobal.com

FIVE MINUTES WITH...

ASHCROFT MARK

MARK ASHCROFT, PRESIDENT AND CEO OF AURELIUS MINERALS SHARES HIS INSIGHTS ON THE MINING INDUSTRY

September 2021

Q. PLEASE COULD YOU INTRODUCE YOURSELF AND YOUR MINING EXPERIENCE?

» I am a 6th generation underground

miner and professional mining engineer born in Sudbury, Ontario. Having first toured an underground mine at 12 years old, I started as an underground miner at 18, and paid my way through university by working in mines in Canada, Australia and Chile. After graduation, I gained my P. Eng designation at Inco, before pursuing a M.Sc. in Finance at the University of Reading (UK) and becoming an investment banker for nine years in London, New York and Toronto. In 2008, I returned to the industry as the CEO of a phosphate development company, before becoming CEO of Aurelius Mineralsin 2016.

Q. TELL US MORE ABOUT AURELIUS MINERALS?

» Aurelius Minerals, listed on the

TSX Venture Exchange, is a Canadian focussed, advanced-stage exploration company currently exploring a suite of properties in Nova Scotia and Ontario. Our most advanced asset, the Nova Scotia-based Aureus East Project, is a 300-tonne-per-day underground mine and mill complex currently on care and maintenance and located approximately 90 minutes east of Halifax. Over the past year, we have successfully diamond drilled over 12,000 metres from both surface and underground. We have confirmed the presence of high-grade gold in both the hinges and limbs of the saddle

reef deposit, identified gold in the host sediments, and extended the length of the limbs beyond 100 metres – significantly increasing the mineralised envelope. Building on the exploration successes of our programs, and that of other regional explorers, we have significantly improved upon the traditional understanding of the Meguma gold district.

Q. WHAT ARE THE TOP ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) TREND IN THE MININ INDUSTRY AT THE MOMENT?

» I think ESG will become ever

more important and can be an effective vehicle to grow trust with the communities that our industry co-exists with. While all elements of ESG are important, some areas

“ SIXTY YEARS AGO, MINING WAS AN UNSAFE AND DANGEROUS INDUSTRY. IN 2021, IT IS THE SAFEST HEAVY INDUSTRY IN THE WORLD” miningglobal.com

5MINS WITH...

will take on a higher profile as our industry must escalate, and then maintain, accountability to the broader community of stakeholders we interact with. Whether it is working with the local towns and villages on training and developing a local workforce, protecting the local environment for future enjoyment, or broader corporate measures like diversification, decarbonisation and electrification – there are considerable opportunities for our industry to appeal to the evolving basket of ESG-centric investors, diversifying our traditional reliance on resourcefocussed capital managers. I think there is a real opportunity for ESG to have a much broader positive impact on our industry than many think as we evolve and embrace best practises.

Q. WHAT INFLUENCE DO YOU THINK TECHNOLOGY WILL HAVE ON THE MINING INDUSTRY IN THE NEXT YEAR OR SO?

» We’ve certainly seen the influence

of technology in the front end of our business when it comes to advanced targeting exploration with AI, or resource and reserve modelling in geology and mine planning, and of course maintenance planning. I believe technology will add substantial value in Safety & Health and ESG compliance moving forward. The trend to realtime reporting of safety and health compliance by eliminating paper checklists and physical sign offs allows for safer work environments and improved efficiencies.

September 2021

“ I THINK THERE IS A REAL OPPORTUNITY FOR ESG TO HAVE A MUCH BROADER POSITIVE IMPACT ON OUR INDUSTRY THAN MANY THINK”

As we move towards ever more rigorous ESG standards, the ability to maintain realtime electronic records and monitoring will allow not just for improved data collection, but proactive intervention in the mitigation and prevention of identifiable risks. This will not just benefit individual companies, their employees and stakeholders, but will benefit the broader industry as a whole.

Sixty years ago, mining was an unsafe and dangerous industry. In 2021, it is the safest heavy industry in the world, and there is no reason we can’t apply those same safety and health achievements to ESG, in my opinion.

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September 2021

GACW

REINVENTING THE WHEEL IN AN EVOLVING INDUSTRY WRITTEN BY: JOHN PINCHING PRODUCED BY: MARK CAWSTON

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GACW

‘Reinventing the wheel’ has been a great motivation for GACW. The company’s Air Suspension Wheels reach optimum levels of performance and last for decades

lobal Air Cylinder Wheels (GACW) is a company driven by a steel will to transform the mining industry through its pioneering Air Suspension Wheels. Its emergence in the industry is a response to a conundrum which has remained unsolved for decades – how do you reinvent the wheel? Mining is almost as old as time itself and while the industry has moved with the times, some things have remained the same. For the wheels typically used in global mining operations, time has stood still. Even in the digital era, wheels have remained strangely, almost defiantly, antiquated. Too often sophisticated mining operations have persevered with the old-fashioned inflatable tyres. These have been prone to combustion, skidding, blowouts, and lateral sway, while also being completely unsustainable, impossible to dispose off, and responsible for polluting oceans throughout the world. Indeed, a study published in the International Journal of Environmental Research and Public Health, estimated that tyres account for as much as 10% of overall microplastic waste in the world’s oceans. In contrast, Air Suspension Wheels (ASW) uses a complex combination of long-lasting steel, inwheel suspension, pneumatic wizardry, energy efficiency, and replaceable treads to optimise performance and provide mining systems – from gold to coal – with

GACW

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GACW

GACW - Reinventing the wheel in an evolving industry

ultra modern reliability and, mercifully, a vital venture into corporate sustainability. It is indisputable proof that change is happening and it concerns the one thing that should keep businesses moving (but so often does the opposite). President & CEO of GACW, Zoltan Kemeny, is the visionary behind ASW, but also a mining luminary who has been determined to evolve an element of the industry which had stalled for decades. “I saw the tyres as the weak link in the critical interface,” reflects Zoltan. “When the existing rubber hits the road or the terrain, you run the risk of flat tyres, fire, and damage from repeated use. I thought, there's got to be a better way – these wheels must be designed with the same precision as the vehicle itself, with a metallic structure, reactive suspension, and mechanical parts. The identification of that weakness became an inspiration at first, and then an obsession.”

Highly qualified in the field of engineering, Zoltan has used all his experience and knowledge of mining to create a dynamic wheel which works in tandem with other machinery and, critically, the environment in which it operates. Wheel of fortune Clearly the most important plot point on the ASW journey is the elimination of the inflated tyre – a burden which would not be able to survive in the modern mining ecosystem. For centuries, repeatedly pumping up and patching up beaten-up old tyres has been the unsustainable sticking plaster on the mining industry, frequently bringing operations to a grinding halt, wasting valuable time, and creating economic problems in the process. By replacing the traditional design with a predominantly metallic structure – which has steel walls, easily replaceable rubber gripping tracks, and suspension under the chassis – the wheels represent a fully

GACW

integrated solution, allowing free-flowing mining projects without hazardous overreliance on old technology. It is a gateway to the future and a message to the wider world about the positive motivations of mining businesses. When Zoltan started forming the blueprint for ASW he was well aware of the old adage about the ‘pointless reinvention of an existing idea’, but his response is progressive rather than restrictive: “People say, ‘oh

you’re reinventing the wheel’ but that’s just thinking inside a box – you have to look beyond that. Yes, the wheel is already invented, but is it always perfect? No – there are certain areas where the wheel is far from perfect, particularly in the military, forestry construction and, of course, the mining industry.” “The rubber tyre can so easily be damaged by fire, or just with a knife. If you have a steel wheel, which operates the

“THESE WHEELS MUST BE DESIGNED WITH THE SAME PRECISION AS THE VEHICLE ITSELF, WITH A METALLIC STRUCTURE, REACTIVE SUSPENSION AND MECHANICAL PARTS. THE IDENTIFICATION OF THAT WEAKNESS BECAME AN INSPIRATION AT FIRST, AND THEN AN OBSESSION” ZOLTAN KEMENY

PRESIDENT & CEO, GLOBAL AIR CYLINDER WHEELS miningglobal.com

GACW

CT Hydraulics (Nqoba)(Pty)Ltd ‘Quality in Hydraulics’ Specialise in the design, manufacture and repair of all types of hydraulic & pneumatic cylinders. CT Hydraulics is affiliated to most of the OEM’s in Southern Africa in the mining industry and often our design improvement recommendations are implemented worldwide. CT Hydraulics have been instrumental in the design of the GACW cylinders. CT Hydraulics is accredited with ISO 9001-2015 quality system.

GACW

Zoltan Kemeny TITLE: PRESIDENT & CEO INDUSTRY: MINING

EXECUTIVE BIO

LOCATION: ARIZONA Zoltan Kemeny has written and co-written over 200 national and international technology patents – issued or pending – in the field of seismic, mechanical, structural, civil, and earthquake engineering, as well as medical electronics, semiconductor, control systems, green energy, engine technology, and optics. He contracted short-run productions of seismic isolators for data centres in Shanghai, China, and sold his licensee upon request in Tokyo, Japan. He owns five small businesses and partners in two other enterprises, which are exclusively dedicated to his own patented technologies. He serves on the board of Eliances where he is an SME on values.

“ PEOPLE SAY, ‘OH YOU’RE REINVENTING THE WHEEL’ BUT THAT’S JUST THINKING INSIDE A BOX. YES, THE WHEEL IS ALREADY INVENTED, BUT IS IT ALWAYS PERFECT? NO” ZOLTAN KEMENY

PRESIDENT & CEO, GLOBAL AIR CYLINDER WHEELS miningglobal.com

GACW

“ WE'RE NOT LIMITED TO AN OFF-THE-SHELF SOLUTION. WE ASK THE CLIENT WHAT THEIR SPECIFIC CHALLENGE IS AND, BY WORKING TOGETHER, WE CREATE A SOLUTION.” ZOLTAN KEMENY

PRESIDENT & CEO, GLOBAL AIR CYLINDER WHEELS

September 2021

GACW

same way, then it is impossible to do that. With ASW, you can ride over an IED in a war, or an explosive, and still keep running,” adds Zoltan. It is this robust approach, attention to detail and focus on design which is taking GACW into the next stage of development. Wheels of your mind When it came to testing the new wheels, GACW had a rather novel approach, starting with small vehicles and gradually moving on to monster machines. It started with the humble wheelchair, before progressing to an SUV and then the giant trucks. Sales SVP at GACW, Harmen Van Kamp, who became Zoltan’s indispensable right hand, strategic partner and friend from the get go, knows the potential of taking ASW to the next level, including improving their impact on the sacred arena of sustainability: “Tyres are by far the least innovated part of mining, but they’re also considered the biggest issue – environmentally, it's the most negative aspect of mining. There are many campaign groups that have identified tyre problems and are urging improvements on mining sites. “Controlling the vehicle is also one of the most dangerous jobs on the mine site, so reactions to ASW from a safety perspective have been really positive.” In terms of the disposal of rubber tyres, the process over the last couple of centuries has been far from sophisticated. “You can't really scrap them,” says Harmen. “The only way to get rid of them is to dig a big hole and throw them in there. It then takes about 150 years for disintegration to take place.” It is this kind of statistic which puts mining under the microscope. The launch of ASW, however, has also coincided with mining companies needing to boost their green miningglobal.com

GACW

credentials – essentially future-proofing an ancient industry for the next generation. GACW has been explicitly told by organisations that, as part of their lower emission goals, they need to be more responsible when it comes to wheel usage. After all, there is only one thing better than recycling wheels and that is not having to recycle them at all. “A lot of mining operations want to slash their CO2 emissions by 50-60% by 2030 and the use of ASW is going to become a big part of that,” notes Harmen. Testing times During the long journey from conception to roll-out, mining equipment will reach the

hallowed ground of ‘technology readiness level’. During trials in South Africa, the ASW successfully reached the proof of concept stage, as the wheels excelled in the fields of durability, versatility, and performance. It also convinced Zoltan and Harmen that the ‘crazy’ idea of replacing the rubber tyre could become a stark reality.

GACW

Following the initial trial, GACW moved on to the United States – it was crunch time for the ASW as it faced its most demanding tests. “In America, we have been going through rounds of much more destructive testing, pushing the wheels to their very limits,” reflects Harmen. “Along the way, we have been making final minor

improvements, resulting in the best wheel we can possibly produce.” Getting the most formidable wheel made is something GACW will not cut corners on, and that means investing heavily in collaboration. “We team up with strong partners, because at our heart we are an engineering firm,” insists Harmen. “We are proudly working with the best cylinder manufacturer, the best wheel manufacturer, and the best compound manufacturer. These entities combine to deliver the best wheel possible – a wheel that can fundamentally change how organisations approach mining.” miningglobal.com

GACW

“ WE TEAM UP WITH STRONG PARTNERS, BECAUSE AT OUR HEART WE ARE AN ENGINEERING FIRM” ZOLTAN KEMENY

PRESIDENT & CEO, GLOBAL AIR CYLINDER WHEELS

September 2021

GACW Production line GACW currently has the potential to produce hundreds of wheels every year, while its manufacturing partner has 18 facilities all over the world, allowing for significant global distribution. The use of ASW is also a bespoke solution and the company is keen to work with clients to meet their exact mining specifications. “We're not limited to an off-the-shelf solution,” concludes Zoltan. “We ask the client what their specific challenge is and, by working together, we create a solution. Historically a company would choose a rubber tyre and build the vehicle around it. With ASW, we can do the opposite by taking the existing vehicle and integrating a made-to -measure wheel. Subsequently, this method opens up many more possibilities.” The brand of forward-thinking epitomised by ASW is certainly drawing the attention of tier one global mining companies, whose commitment to tech and modern solutions is growing exponentially. Many have even included the embracing of innovation within new mission statements. It's become a pivotal exercise for companies to implement new technology on a mine site, then throughout a country, ultimately resulting in global rollouts. With this in mind, ASW is set to make a seismic impact on mining operations across all continents, taking the industry into unchartered territory and yielding new opportunities in the search for sustainability. The opportunities for mining companies to reboot their systems with the ASW are manifest, while the chance to engage with the public about how they operate represents a unique milestone. The dawn of change has arrived for mining and over the coming years GACW will play a pivotal role in its transformation. Evidently, ‘reinventing the wheel’ is possible after all.

miningglobal.com

DIGITAL MINING

Reliability Analysis Drives Mining Asset Management Pinnacle highlights critical asset management data in its ‘Global Economics of Reliability’ report

WRITTEN BY: TANMAY PATANGE

September 2021

he Covid-19 pandemic has affected all industries. The mining industry, too, is recovering from the impact of the pandemic. Market volatility, reduction in commodity prices, easy availability, etc., are some trends defining the new normal in the mining and metals industry. Hence, companies invest in cutting-edge technologies to introduce automation, reduce costs, and improve operational efficiency. Nonetheless, additional complexities are mounting up, such as public scrutiny, shareholder involvement, government regulations, environmental risks, etc. According to industry experts, in the coming years, more demand for minerals is anticipated. However, along with the trends mentioned above, other industry patterns will determine which mining companies can survive in the future. With the development of technological innovations, an economy must be strong. For this, mining, metal, and fertiliser industries should have high levels of reliability. It is well-pointed in a recent report - Global Economics of Reliability Report by Pinnacle, the largest reliability analytics company in the world.

DIGITAL MINING

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sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability. For more information, please visit: www.honeywellprocess.com/iiot

DIGITAL MINING

“ Miners suffered in profitability in 2015 due to the major oil price crash” Exploring the impact reliability has on mining and fertiliser miners, this report discloses some crucial facts about the mining industry after analysing data from 15 large, publicly-traded miners. This report examines the financial performance of metal and fertiliser miners, whether their reliability investments enhance their overall reliability and the association between reliability budget and the overall performance of the mining industry.

To conduct its analysis, the researchers relied on important data sets from The International Monetary Fund (IMF), lithium pricing from Statista, The United States Geological Survey (USGS), uranium production volume data from the World Nuclear Association, and financial performance data from 15 large and publicly-traded miners. The report concluded that despite mining organisations spending so much on their reliability activities, they did not gain returns because of spending their reliability budgets on areas that did not impact the reliability of their mines. Before we get more insights into it, let's first try to understand what reliability is. miningglobal.com

DIGITAL MINING

“ Market volatility, reduction in commodity prices, easy availability, etc., are some trends defining the new normal in the mining and metals industry” Definition of Reliability According to the researchers and analysts who conducted the study of this report, reliability is measuring the results/ achievements organisations gain when they want something to run. In simple terms, what are organisations’ efforts or investments to improve reliability, and are they achieving results? In the case of the mining industry, the report analyses the reliability in metal and fertiliser mining space, activities ranging from resource extraction to processing operations. Base metals like aluminium, cobalt, copper, iron ore, lead, lithium, molybdenum, nickel, tin, uranium, zinc, and precious metals such as gold, palladium, platinum, etc. silver are considered. However, reliability is ubiquitous. One common mistake mining operators make is they report the significance of reliability in words. Simultaneously, they discuss holistic operational results with the minimal significance of reliability's quantitative impact on performance. 42

September 2021

Global Production and Related Economic Value of the Mined Resources After analysing the data from the data sets, the total economic value of the mined metals and fertilisers was US$782bn in 2020. The dominant leader is metals, accounting for US$700bn. It was followed by gold, accounting for US$184bn. Other contributors include iron ore, copper, aluminium, and nickel. In the case of fertilisers, it was phosphate rock and potash, accounting for US$72bn and US$9bn, respectively. While this was the overall economic value of mining metals and fertilisers globally, the report dived deep into the geographical distribution of the economic value and then calculated the corresponding reliability spend.

DIGITAL MINING

For a total economic value of US$782bn, the corresponding reliability spend was US$55bn. As per geographical distribution, Asia was the leader, holding US$214bn in economic value, and in Asia, China was the ruler with US$167bn. South America occupied 2nd position in the list with US$107bn in economic value. Thus, it was estimated that metal and fertiliser miners worldwide spend US$55bn per annum on reliability. This was 10% more than the reliability budget of the refiners, which spent US$51bn per annum. Revenue and Profitability Miners suffered in profitability in 2015 due to the major oil price crash. However, after examining the financial performance of

15 large publicly traded meal miners from 2015-2020, it was noted that miners suffered a revenue drop of 3% from 2015-2016. Still, their operating margin increased by 11 percentage points. As the recovery from the crash started in 2017, the revenue increased by 25%, and the operating margin increased by eight percentage points. A similar trend was witnessed in 2019-2020. With the Covid19 outbreak, mining organisations didn't operate their least productive mines or any other non-performing facilities. It enabled them to gain 10% more operating profit against 12% less revenue. These figures strongly indicate the capabilities of the mining industry to mitigate serious challenges posed on the industry. The miningglobal.com

DIGITAL MINING

mining organisations made a smart move to keep their non-performing plants idle as operating them would have caused deterioration of their financial performance. Cash and Debt Analysis 2015 and 2016 were terrible years for metals and fertiliser miners, affecting their profitability due to the market's volatility. Nonetheless, from 2017-2019, they could recover, having a steady operating profit and margin. Then again, in 2020, the pandemic caused revenue decline. While the mining organisations could keep a steady operating profit and margin, it's also important to consider their cash balance and total debt. With an excessive debt burden, it is difficult to survive in the market. In 2015, total debts were US$224bn with a cash balance of US$46bn, generating a net debt of US$178bn. From 2016-2018, the balance sheet was different, with a larger cash balance against a smaller debt load. This pattern was witnessed even during the pandemic in 2020 as mining organisations safeguarded their balance sheets by reducing their spendings. Cash balance and debt load are related to reliability. A poor balance sheet can be risky for any business, not just mining. However, reliability budget cuts are often the top priority for cost mitigation. If mining plants and related facilities are not functional, then the reliability burden will also decrease. Moreover, it is to be noted that such reliability cost reductions are not for nonperforming facilities. It, of course, creates reliability challenges. While the mining organisations recovered from the commodity price crash from 20162019, during the outbreak of the Covid-19 pandemic in 2020, they protected their balance sheets. 44

September 2021

Capital Investment The increased debt in 2015 affected capital investments too. The cash balance increased from US$46bn in 2015 to US$60bn in 2019. In 2020, it went to a whopping US$82bn. As miners were recovering from the price crash from 2016-2018, a huge reduction in capital expenditures was also witnessed.

DIGITAL MINING

“ One common mistake mining operators make is they report the significance of reliability in words” pumped into expansions, setting up spare units, data storage, visualisation systems, etc. Organisations can save up cash and improve their balance sheet, but the reliability quotient will decline over time. Relation between Profitability and Reliability The same logic applies to any business: the lesser the operating cost, the more the operating margin. However, this does not hold for mining organisations. The study shows that mining operators that spent least on reliability incurred more profits. It points out that mining operators that spend a lot on reliability are unlikely to get better returns. It raises one important question: if miners overspend on reliability, why is it challenging to cut down their reliability spending? The study suggests that mining operators can reduce their spending but, at the same time, reinvest excess reliability spend while ensuring profitability. Hence, to gain fruitful outcomes and profits, it is important to optimise the reliability spend. The debt load went down from US$178bn in 2015 to US$147bn in 2016. At the same time, capital expenditure was reduced by US$21bn from 2015 to 2016. That is a 40% year-over-year decline. A reduction in capital expenditures might appear to be a relief, but this adversely affects reliability. There is no capital being

Closing Thoughts Also, as the economy is continually evolving, digitisation of activities demands better utilisation of the reliability budget. To ensure strategic reliability investments, the study suggests intentional, multi-dimensional, system-wide analysis. miningglobal.com

INDUSTRIAL

CYBERSECURITY:

MORE CRITICAL THAN DATA SECURITY ? WRITTEN BY: LAURA BERRILL PRODUCED BY: GLEN WHITE

September 2021

CLAROTY

miningglobal.com

Simon Chassar. CRO, Claroty

September 2021

CLAROTY

Strengthening the cybersecurity of industrial supply chains is arguably more critical than protecting against data breaches

urrently, Claroty is experiencing data — they can also disrupt the physical a period of what Chassar calls industrial processes that underpin global ‘hyper growth’ which, he says, supply chains. Recent incidents have shown means the company is rapidly that with the expanding attack surface, gaining momentum as the certain types of breaches can shut down levels of connectivity operations. When in industrial this happens, the “MALICIOUS HACKERS systems increase. resulting impact ARE INCREASINGLY This increase in on organisations is UNDERSTANDING THAT connectivity has typically far worse resulted in the THEY CAN DO MORE THAN than that of a data creation of a wider breach. This is not COMPROMISE DATA — attack surface that only in terms of lost THEY CAN ALSO DISRUPT cybercriminals and revenue, people’s THE PHYSICAL INDUSTRIAL wages, and income other adversaries can exploit. PROCESSES THAT UNDERPIN — but it is also in “Malicious hackers terms of physical GLOBAL SUPPLY CHAINS” are increasingly safety. This is one of understanding that the primary drivers SIMON CHASSAR they can do more of the market’s CHIEF REVENUE OFFICER, than compromise momentum. At CLAROTY miningglobal.com

CLAROTY

Industrial cybersecurity: more critical than data security?

“ ON THE INDUSTRIAL SIDE YOU ARE OFTEN LOOKING AT TECHNOLOGY AND SYSTEMS IN PLACE WHICH ARE SOMETIMES DECADES OLD AND THEREFORE DIFFICULT, IF NOT IMPOSSIBLE, TO UPDATE AND PATCH” SIMON CHASSAR

CHIEF REVENUE OFFICER, CLAROTY

September 2021

the same time, there is a growing need to address the problem, which is our mission.” Chassar said that this accelerating demand is driving 100% growth on a quarterly basis for Claroty, and the team is scaling the business accordingly. He noted that half of all Claroty employees were hired in just the last nine months, and that a strong company culture has allowed Claroty to address the challenges that inevitably come along with such rapid growth. So apart from the expanding attack surface, what else is impacting Claroty and its services? Chassar says there is also something referred to as the Purdue Model. He explains that this is a network segmentationbased reference architecture for industrial

CLAROTY

control systems (ICS) that was created by Theodore Williams in the ‘90s. He said this model is now starting to collapse because of the increased levels of connected technology, including IoT and 5G. This, along with the aforementioned attack surface, means much bigger perimeters that stretch beyond just one building that CSOs and CIOs need to protect. He uses car production as an analogy. “Take for example a brake manufacturing plant in the Czech Republic. The car manufacturer may use a headlight manufacturer in Poland and a computer component manufacturer in China. All of these places reflect the expanding attack surface, so you are now trying to protect this massive perimeter and at the same time you have to be aware of the greater potential for

lateral movement across connected supply chains. This could be someone gaining access through a back door and then moving across the network. This is one of the biggest challenges we face and is critical when it comes to securing industrial environments.”

miningglobal.com

It’s not the usual “However, on the “RECENT INCIDENTS case of personal and industrial side you are often HAVE SHOWN company data theft looking at technology and THAT WITH THE Industrial cyber attacks systems in place which are differ from other EXPANDING ATTACK sometimes decades old kinds of well-known and therefore difficult, if not SURFACE, CERTAIN cybercriminal activity, impossible, to update and TYPES OF BREACHES such as personal and patch. And when there is corporate data breaches any kind of attack, processes CAN SHUT DOWN and loss, which can lead can grind to a halt. Imagine OPERATIONS” to reputational damage a major car manufacturer and fines. Chassar that produces a vehicle SIMON CHASSAR said the difference is every 50 seconds. If that CHIEF REVENUE OFFICER, that with the latter, is stopped for five hours, CLAROTY there are mitigations how many cars are then not in place. “When personal data is breached produced? On top of that, the next question and extracted there are mechanisms such to then ask is, how many people cannot earn as insurance, backup, encryption, multimoney because they can’t work on making the factor authentication, and others that cars? In this respect, industrial cyber attacks are widely implemented to help further can have a much more tangible impact than protect that particular data,” he says. data breaches.” 54

September 2021

CLAROTY

“WE HAVE ALWAYS BEEN A TECHNOLOGY COMPANY RATHER THAN A SERVICES-BASED ONE. BECAUSE OF THAT WE HAVE BUILT VERY STRONG TECHNICAL INTEGRATIONS WITH OUR IT SECURITY PARTNERS” SIMON CHASSAR

CHIEF REVENUE OFFICER, CLAROTY

Simon Chassar TITLE: CHIEF REVENUE OFFICER COMPANY: CLAROTY INDUSTRY: INDUSTRIAL CYBERSECURITY

EXECUTIVE BIO

LOCATION: SURREY, UNITED KINGDOM Simon Chassar is Chief Revenue Officer at Claroty, where he leads the global sales organization including territories, partnerships, sales engineers, sales development, and revenue operations. He brings more than 20 years of IT industry experience across the go-to-market on hardware, software, and services at multinational organizations such as NTT, Cisco, Avaya, VMware, and Actifio. Prior to joining Claroty, he served as CRO of the security division of NTT, where he ran a sales, channel, and marketing organization of more than 300 people, delivering $1.5 billion in revenue across products and services. Chassar is part of the World Economic Forum for Oil & Gas Security.

miningglobal.com

The critical benefits of industrial cybersecurity protection The first important thing to establish with Claroty’s customers, Chassar says, is identifying the assets they have operating within their industrial environment. This is because, he adds, customers aren’t always aware that, say, their heating controls are connected to this environment. The same goes for engineering workstations, controllers, sensors, and other devices. Chassar advises they need to start with finding out which parts of their operation are connected to their industrial environment, because you cannot protect what you cannot see. “This is how Claroty helps at the start of the journey — by identifying the devices and connections and which ones pose inherent 56

September 2021

risks, such as a control system that hasn’t been updated in ten years. Once you understand what and where those inherent risks are, the next step is prioritization. Our threat detection capabilities enable customers to know when they are being attacked and exactly what the residual risks are. We apply our standard cybersecurity procedures to the perimeter and everywhere within their environment.” Chassar says the firm also takes the approach of looking at vulnerabilities from the hackers’ point of view with risk scoring, so organisations can more easily prioritise and then make the changes and also keep them up to date with regulatory requirements. He adds that the company is backed and adopted by the top three industrial automation vendors globally: Siemens,

CLAROTY

“ THESE ARE THE SAME COMPANIES THAT HAVE CONTROL OF THE FIREWALLS, SIEMS AND OTHER TECHNOLOGIES THAT OUR CUSTOMERS ALREADY RELY ON. WE CAN PLUG AND PLAY DIRECTLY INTO THESE ENVIRONMENTS. THAT CREATES OPPORTUNITIES FOR OUR CUSTOMERS TO EASILY INTEGRATE OUR PLATFORM WITH THEIR EXISTING TECH STACK” SIMON CHASSAR

CHIEF REVENUE OFFICER, CLAROTY

Schneider Electric, and Rockwell Automation. Claroty’s strategic partnerships with all three have allowed the company to build a solid understanding and awareness around all their protocols, capabilities, and vulnerabilities. He explains, “This in turn has also enabled Claroty, via our Team82 research team, to know where the threats are coming from, the constant changes within the threat landscape, and the reality of the dark world.”

How partnerships matter Off the back of the investment, Chassar says the company has been able to grow its coverage of what has long been the sector’s most extensive library of industrial protocols. He said this means Claroty’s

miningglobal.com

“ WHEN THERE IS ANY KIND OF ATTACK, PROCESSES CAN GRIND TO A HALT. IN THIS RESPECT, INDUSTRIAL SECURITY IS CRITICAL” SIMON CHASSAR

CHIEF REVENUE OFFICER, CLAROTY

platform is fully compatible with both greenfield IoT and IIoT environments and traditional brownfield OT environments. Developing and expanding support for the various protocols utilized within these environments requires close collaboration and a strong relationship with the industrial vendors — including those that are Claroty investors and partners. “We have always been a technology company rather than a services-based one. Because of that we have also built very strong technical integrations with our IT security partners. These are the same companies that have control of the firewalls and other technologies that our customers already rely on. Not only does this enable us to work in harmony, we can also plug and play directly into these environments. That creates opportunities for our customers to easily integrate our platform with their existing tech stack,” he states. Chassar says the company has three partner categories which have different values but are equally important. The first, he says, is the service partners that are driving enterprise transformation and include the likes of Deloitte, KPMG, NTT, and Kudelski Security. The second is ICS/automation vendors including Siemens, Schneider Electric, Yokogawa, and Rockwell. And then there are strategic 58

September 2021

CLAROTY

FUTURE PROJECTIONS The number of internetconnected devices is expected to increase from 31 billion in 2020 to 35 billion in 2021 and 75 billion in 2025 Security Today’s The IoT Rundown for 2020

miningglobal.com

integrations with CrowdStrike, Check Point Software Technologies, and Tripwire. “We consciously focus on the industries that have absolute excellence in what they do and have a very large customer base. We are strongly committed to taking a ‘partner first’ approach. There is a real skills shortage in OT and specifically in OT security, so we are enabling our partners to develop these skills and giving them the economies of scale needed to address the shortage.” 60

September 2021

The future of these partnerships These relationships are going to become tighter, Chassar says. “Just in the last six months we have increased our focus on driving up our partners’ certifications and their capabilities within OT cybersecurity. At Claroty we have taken our core central knowledge and skills and shared these

CLAROTY

“THE BOTTOM LINE IS EVERYONE, NO MATTER WHICH FIELD OR SECTOR THEY ARE IN, SHOULD BE AWARE OF INDUSTRIAL CYBER SECURITY AND HOW VITAL IT IS TO PROTECT THE WORLD’S INCREASINGLY CONNECTED INDUSTRIAL PLANTS AND PRODUCTION FACILITIES” SIMON CHASSAR

CHIEF REVENUE OFFICER, CLAROTY

openly with them, which has driven up He offers the example of developing the volume of skills and capabilities so technology for a car production line they can take advantage of our hyper whereby a breach would halt the supply growth that I mentioned at the start. of vehicles. “On the industrial side it is This tightening of partner relationships more about business continuity than is the future right now.” reputational damage and Chassar said this was fines. Look at the Colonial significant because it was Pipeline incident, in which FUTURE vitally important for those operations halted after PROJECTIONS in industrial cybersecurity the breach, as well as JBS to be aware of the foods. Stopping production criticality of protecting Gartner projected that of things consumers need these environments. businesses would spend leads to lost revenue and an This stems from the more than $123 billion impact on stock markets, momentum caused by the on security in 2020 and which is very difficult to convergence of OT and IT. projects that figure to grow repair. It can mean people He cites everything from to $170.4 billion by 2022 can’t go to work anymore vaccinations and pharma because the tins of beans companies to automotive and cars aren’t being made.” production, all the way through to food and Chassar concludes: “The bottom line is drink manufacturing. everyone, no matter which field or sector “Our mission is to be the industrial they are in, should be aware of industrial cybersecurity company and to protect cybersecurity and how vital it is to protect everything within the four walls of an the world’s increasingly connected industrial site — and ultimately keep industrial plants and production facilities. enterprises going. We’re not focused on This issue has huge significance to us as preventing the extraction of personal individual consumers and the economy information or, for instance, credit card at large.” numbers. Our goal is to help companies maintain their production and overall business operations.” miningglobal.com

INDUSTRY X.0

WHAT IS INDUSTRY 4.O AND WHY BUSINESSES SHOULD MOVE TOWARDS IT? Industry 4.0 takes digital transformation to a whole new level in the mining sector as industry leaders adopt new mining technologies WRITTEN BY: TANMAY PATANGE

he concept of digital transformation has been around for quite a while now. Organisations are starting to see the great potential that technological advancement and adoption presents to their ambitions of achieving business-wide transformation and development. And, now, as a result, many are making considerable investments in a wide variety of state-ofthe-art technologies to create a more agile, effective, efficient, yet robust system. With the advent of digital transformation, the fourth industrial revolution has emerged, also known as Industry 4.0. Industry 4.0 takes the impact of digital technology to a new level with the assistance of interconnectivity through the Internet of Things (IoT), access to real-time information, and the presentation of cyber-physical systems. Industry 4.0 is defined by versatility, flexibility and effectiveness that covers customers' needs in the genuine market. Truth be told, industry 4.0 utilises digital technologies to respond quickly to market changes, offer more personalised products and services, and improve operational efficiency.

September 2021

INDUSTRY X.0

miningglobal.com

INDUSTRY X.0

The Challenge The rate at which things around us are getting intelligent and connected is incredible. Gartner projects there will be an overabundance of 20 billion smart and connected things by 2021. There must be an organised and efficient way to deal with this dramatic development of our connected environment to such an extent that considering the new class of smart and living things into daily life is centred around expanding human functionality and productivity and eventually improving our way of life. Nonetheless, even though organisations are ramping up their digitisation initiatives, many aren't getting the most out of their digital investments. That is, they're not changing their core operations or businesses while developing into new ones.

For this, Accenture proposes a new concept of Industry X.O. What is Industry X.O? Accenture puts forward Industry X.0 as "the digital reinvention of industry", changing fundamental operations, employee and customer experiences, and business models and strategies. Industry X.0 is understanding how the future is and combining changing effectiveness with looking at how we can utilise this change to make advancements and new developments within customers' businesses to create top-line value. Accenture studied some medium and large Italian organisations, pioneers in the production and manufacturing sectors. Through this study, an incredible awareness has emerged on the significance of the digital transformation around us, yet a feeling of doubt and dissatisfaction with results.

miningglobal.com

INDUSTRY X.0

Just 13% said they were getting superior efficiency, cost savings and business growth from their digital investments. 13% is a low number. Fortunately, organisations can grab the opportunity, presently, to enhance both. As a matter of fact, consolidating digital technologies is certifiably not an easy way of mix-and-match. Organisations should accomplish something other than changing themselves into digital organisations. They should recreate their working models, production and value chains to make more worth with digital initiatives. All this is possible through Industry X.0. It's a model for becoming more capable of embracing technological change and benefiting from it. This new vision would make tasks more proficient by saving, simultaneously reinvesting in valuable resources, paying little heed to the organisation size. Why Should Business Move Towards Industry X.O? At the present moment, it's a highly befuddling world. We're moving into an existence where the business ecosystem is undeniably more significant than it was before. Everything is travelling at pace. So the infrastructure organisations are working with today will be outdated in 90 days, without any doubt. Hence, to limit the impacts of technological obsolescence, which we have witnessed as perhaps the greatest snag to investment, it is essential to utilise a blend of digital technologies to multiply profits instead of implementing a single one. Industry X.0 organisations embrace consistent technological change as well benefit from it. They move beyond trying different things with IT groups or SMAC (social, mobile, analytics, cloud) stacks, consolidating digital innovations to drive top-line and bottomline growth. With Industry X.0, organisations 66

September 2021

INDUSTRY X.0

join Industry 4.0's fundamental operational efficiencies yet harness the benefits when digital technologies are combined to persistently make new, hyper-customised experiences in both a B2C and B2B context. Organisations operating with the Industry X.O concept have pretty much every part of their production self-monitored, datagenerated and are mindful of its industrial context. They endeavour to build end-to-end communications and information sharing between frameworks and machines in realtime. What's more, they make applicable and necessary customer experiences over time by building digital models that empower adaptive interactions between machines, customers and the workforce. Furthermore, we need to understand that the quintessence of Industry 4.0 depends principally on harnessing operational efficiencies in manufacturing operations by utilising technology to build the Overall Equipment Effectiveness (OEE), which is typically characterised as the result of availability, productivity, and quality measurements. Notwithstanding, digital transformation is genuinely substantially more than simply the functional proficiency gains. Business value is progressively advancing around the generation of new income streams that aren't just determined by innovative As-a-Service platforms but also through hyper-personalisation of industrialism that is driving microsegmentation and thus a dramatic development of the addressable customer base. Industry X.0 addresses the cost parameters driven by the conventional operational efficiencies of Industry 4.0 and the era of new consumer-driven business models and thus new income streams. X.0 accentuates the dramatic speed of progression in digitisation. miningglobal.com

INDUSTRY X.0

How can Organisations Embrace X.O? For organisations and businesses to embrace X.O, Accenture has laid down a six-step strategy that can help them to leverage the benefits of Industry X.O. Transform the Core Industry X.0 organisations should build their core engineering and production systems around the digital agenda to drive new levels of effectiveness. They guarantee that actual

September 2021

machines and software frameworks are synchronised to unlatch previously hidden cost efficiencies, accordingly increasing investment capacity. Focus on Experiences and Outcomes Industry X.0 organisations should utilise their investment capacity to drive new, hyperpersonalised customer insight through different innovative touchpoints. It develops core businesses by upgrading customer engagement.

INDUSTRY X.0

APAC businesses could decrease costs by up to

27%

per employee and increase their market capitalization by an average of

28%

Innovate New Business Models Industry X.0 organisations should ideate and make business models to drive differentiated value for their customers and new income streams for themselves. Create a Digital-ready Workforce Industry X.0 organisations should source, train, and conserve digital-ready skills and foster collaboration between people and machines. Re-architect New Ecosystems Industry X.0 organisations should make a robust ecosystem of suppliers, wholesalers, new companies, and customers that permits them to scale new business plans across the digital value chain quickly. Pivot Wisely Industry X.0 organisations should constantly balance speculation and asset designation between the fundamental business and the new business to synchronise development and development. Wrapping Up Looking closely at how Industry 4.0 operates, it treats different technologies such as big data, IoT, and AI in silos. Industry X.O helps us in connecting all of these technologies to transform how businesses work and operate. The primary differentiator between Industry 4.0 and Industry X.O is that the latter helps organisations create a strategic business case and roadmap for digital transformation and assist them with kickstarting, prototyping, realising value, industrialising, and eventually sustaining their digital journey. Though Industry X.O might be relatively a new concept, organisations that take this road will be the leaders of a digital world tomorrow. miningglobal.com

MAXAM TIRE

A BUSINESS SOLUTIONS PROVIDER WRITTEN BY: DAN BRIGHTMORE

September 2021

PRODUCED BY: MARK CAWSTON

MAXAM TIRE

miningglobal.com

MAXAM TIRE

September 2021

MAXAM TIRE

Maxam Tire brings decades of experience in the tire industry to push the boundaries for continuous improvement in mining with R&D innovation and state-of-the-art manufacturing driven by a customer-centric approach

dedicated global group under Maxam Tire, Maxam Mining Group (MMG) was created in 2019 to specifically focus on the open-pit mining segment, boasting a team of committed and knowledgeable experts with decades of experience in the field coupled with the ambition and drive to exceed expectations. Maxam has appointed talents globally to meet the highest standards of customer experience. Each MMG team member has over 15 years of experience in the off-the-road (OTR) tire industry with a proven record of delivering accelerated business performance and growth to a customer’s business. That experience working for top-tier tire manufacturers and dealers underpins the ability to provide knowledgeable support to customers in every aspect of the mining business. “All members of the MMG team aim to ensure customers have the top-tier solution to meet their needs,” confirms Vice President Matt Johnson. “They work with the engineering team by learning each mine site’s requirements and goals first. A strategic plan with specific products and compounds, along with expected performance and hours, is then proposed to customers for their consideration. Once a customer accepts Maxam’s proposal and initial product placements, the company and dealer network will continue to make scheduled monthly visits to monitor its products, along with providing any helpful maintenance tips to maximise tire life and operation. miningglobal.com

MAXAM TIRE

“Every site visit is completed and submitted back to the customer with a data review. The process of on-site review, proposal and monitoring demonstrates our commitment to customers along with our ambition to earn their confidence. We want customers to see Maxam as more than a tire supplier; we are a trusted partner delivering guaranteed performance and dedicated support. “My role in the company is to drive and continue the fostering of these long-term, mutually beneficial business relationships with our customers by concentrating the global MMG team to prioritise customers. While each region has its own strategic approach, we focus on delivering solutions with the lowest costper-hour/tonne to mine sites.”

September 2021

Mining business solutions The tire industry has long been dominated by Goodyear, Michelin and Bridgestone – a dominance that also transitioned to the mining industry. “When I joined the company, I quickly realised they were going after something different,” counters Johnson. “Maxam was focused on building a quality product and chasing down the tierone level position. They wanted good market recognition, and they were standing behind every facet of support to achieve that and never losing sight of what comes first – the customer and our employees.” Johnson believes that for Maxam to be truly successful, his team must first understand the customer’s goals because only then can they focus on their needs. “We strive to be a true business partner, not a tire sales force.

MAXAM TIRE

Matt Johnson TITLE: VICE PRESIDENT OF MAXAM MINING GROUP COMPANY: MAXAM TIRE Matt Johnson is the Vice President of MAXAM MINING GROUP (MMG), a subgroup of MAXAM Tire, with the responsibility for sales and support strategy implementation for MMG globally. Matt has been with MAXAM Tire since October 2019. Prior to MAXAM Tire, he has held various field and management positions in the mining and tire industry for over two decades of his career. Matt began his career as a tire technician in a retail mining business back in 1993 and advanced through multiple sales and management roles with his proven dedication and skills.

“ We strive to be a true business partner, not a tire sales force. We have built the MMG to become a business solutions provider” MATT JOHNSON

VICE PRESIDENT, MAXAM MINING GROUP

miningglobal.com

MAXAM TIRE

MAXAM Tire Global Mining Performance

We have built the MMG to become a business solutions provider.” A customer-centric approach “We live and breathe the customer-centric approach in every aspect,” maintains Johnson. “For example, one of the most important elements in a mining tire is compounding. It has a direct correlation to the performance of the tire and whether it meets the need of a particular mine site. Maxam’s engineering team has a dedicated rubber compound research group. Working directly with the sales team, they provide customers with product performance feedback, while our rubber compound research engineers are constantly developing new ways to increase energy and savings in mixing and polymer structure advancement.” Maxam’s engineering team factors in the needs of each mine site to meet its requirements and goals. “A strategic plan with specific products and compounds, 76

September 2021

MAXAM TIRE

“ ‘Quality that drives productivity’ is one of our fundamental beliefs at Maxam” MATT JOHNSON

VICE PRESIDENT, MAXAM MINING GROUP

along with expected performance and hours, can then be proposed,” explains Johnson. “Once a customer accepts Maxam’s proposal and initial product placements, we continue to make frequent visits to monitor the solutions chosen, along with providing any helpful maintenance tips to maximise tire life and operation. Every site visit is completed and submitted back to the customer with a data review. Our customers see Maxam as more than just a tire supplier, but a trusted partner delivering guaranteed performance and dedicated support.” R&D Maxam prides itself on innovative R&D and state-of-the-art manufacturing to support product performance with its raw materials, compounding, synthetic rubber technology, competitive analysis, tire design, and simulation modelling. “All Maxam’s engineering and R&D teams are fully integrated with our factory’s quality assurance and product development operations to optimise quality and performance,” pledges Johnson. “We have global R&D centres dedicated to understanding each local user’s specific demands. We believe in investing in stateof-the-art manufacturing for product consistency in quality and performance.” “We're analysing and setting our treads, and our new tread designs are out,” adds the passionate VP. “Currently, we have the largest footprint of tread designs there is in the whole industry. We're not always going to be in this position, but we are actively tracking every single tire in the field to get a wide array of understanding of how these tires perform in different situations; from soft underfoot to hard rock or high-speed and high tempsto-low-speed and heavy haul. We're tracking this alongside our site studies. At the end of miningglobal.com

MAXAM TIRE

KGHM – CASE STUDY Maxam Mining Group has multiple mining customers in the western U.S., Australia, South America, and Canada that have already chosen to give the majority share of their tire needs to Maxam as it continues to outperform its competitors. “Our products perform closely with our competitors while delivering a lowest costper-hour/mile,” explains Vice President Matt Johnson. “One of the mine locations of KGHM has been very pleased with our products and the experience of working with Maxam. As mining managers are always looking for ways to maximise an operation’s efficiency, they are looking for tires that help reduce costper-hour. We guaranteed our tires to perform within 90% of the tier-one tires KGHM was using with 20% savings in cost-per-hour. Our tires ended up performing on par with the tier-one tires' they have and are projected to meet or exceed those tire’s hours. “In addition to our products delivering guaranteed performance and exceptionally lower in cost-per-hour, we guaranteed our integrity as well by providing the best warranty in the business. Should a customer be unsatisfied with our tires or the performance doesn’t meet what was promised, we will provide credit to the customers through the dealership, and they can seek other solutions. Other manufacturers usually send another new tire as a form of warranty while we provide our customers with the freedom to make their own decisions.”

September 2021

Tracking the trends “Mining is set to boom for the next three to five years,” forecasts Maxam Mining Group’s Vice President Matt Johnson. “It has been booming for the last seven or eight years. Even throughout the pandemic, it was growing. What you're seeing is a lot of mining sites investing in their future, which means developing new projects and sending people in the field to do this. Any time mines open a new project or develop a new pit, it creates challenging situations where it's harder to cut through the gamut of operations, where it's rough, and it’s wet. There's fractured rock, which is like a hot knife through butter for a tire. Those are the types of challenges we work through being in this business.” Maxam helps its customers select the right tire for the terrain and what speeds they can run to maintain a certain tire life. “The mining industry is focused on costper-tonne in production,” notes Johnson. “At the end of the day, no matter what field you're in when supplying to a mine site, you will be measured by cost-per-tonne. In the tire world, that can be defined by cost-permile. So we continually focus on pricing our tires appropriately and putting the correct compounding TMPH (tonne-miles-perhour) or TKPH (tonne-kilometres-per-hour) capability in that operation to ensure our customer gets to the absolute lowest cost-per-tonne with production or costper-mile. Mines are heavily focused on the KPI side of things right now. We're echoing that to ensure we're doing what's right for sustainability within both industries.”

MAXAM TIRE

“ Many of our tires are now competing on-par with other tier-one manufacturers tires, and customers are starting to see the value in choosing Maxam” MATT JOHNSON

VICE PRESIDENT, MAXAM MINING GROUP

that process, we analyse all the information to help us select what works best to slim down our tread count and improve our efficiencies at the plant, which will ultimately help our customers.” All of Maxam’s large mining and some radial OTR (off the road) tires are formed in positive crown drums that build the tires

in a shape closer to their finished profile, ensuring components are minimally disturbed during the curing process. “Maxam runs its own natural rubber processing plant in Asia to fully control the quality of our rubber in addition to working with the top-tier raw material suppliers,” adds Johnson. “With our technical excellence supplemented by the advanced engineering, all these aspects are integrated to deliver improved safety, product performance and consistent quality for our customers. ‘Quality that drives productivity’ is one of our fundamental beliefs at Maxam.” Partnering for success Achieving the lowest cost-per-hour/tonne with a performance on-par with tier-one tires, Maxam is partnering with the likes of Caterpillar® with its OTR tires approved on their medium wheel loaders. “We understand the need for equipment to evolve in parallel to today’s demands,”

Maxam Mining Group (MMG) SETTING THE NEW STANDARD

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MAXAM TIRE

“ Currently, we have the largest footprint of tread designs there is in the whole industry” MATT JOHNSON

VICE PRESIDENT, MAXAM MINING GROUP

assures Johnson. “A prime example of this is our recent approval of the 65-series medium wheel loader tire, the MS405, validated and approved for the 982M loaders. With the increasing demands of the mining industry, tires are working harder and longer hours to keep up with the more advanced equipment. This goes back to our continuous commitment to improve the performance of our tires for leading equipment OEM manufacturers, such as Caterpillar, so that the tires match the performance of their machines and meet customer expectations.” Treading a path to success Maxam was named the best overall vendor for Purcell, one of the largest global 80

September 2021

dealerships, in 2020. In addition, it is one of the sole suppliers for Kal Tire in both Canada and Australia, a major global dealer in the mining industry. “We’ve also been receiving excellent performance feedbacks with the lowest cost-per-hour from customers,” notes Johnson. “For example, our placement in a mine site in Canada in 2015 began with a programme target for Maxam to reach 4,200 hours. Within the first nine months of initial placement, Maxam’s tires have been proving the performance initially promised, according to the customers, while competing against leading manufacturers at the same site. Based on the data in the first nine months, our products performed closely with our leading competitor’s performance but at a

MAXAM TIRE

Maxam Mining Group: a business solutions provider

lower cost-per-hour. In the first two years of placement, we received excellent feedback and have positioned an additional 124 tires (112 pieces of the Maxam MS402 and 12 pieces of the Maxam MS401). By August of 2017, MMG held approximately 75% of the entire CAT 777 fleet in this mine.” 2021 and beyond… MMG is proud to be exhibiting its new mining series tires at this year’s MineExpo in Las Vegas. “We’ll also be unveiling our 63” tire, the largest tire in the world,” says Johnson. “To show that we’re a full-range supplier for the speciality tire industry, we’ll also be demonstrating our wheel loader radial tires and underground mining tires that many mining operations now utilise. It’s a major opportunity to connect with

our customers and display various types of solutions we can offer to the industry.” MMG is expanding globally and aims to become a first-choice supplier for mine sites. “Many of our tires are now competing on-par with other tier-one manufacturers tires, and customers are starting to see the value in choosing Maxam,” says a proud Johnson. With his detail-oriented and dedicated team, building confidence and focused on fostering successful business relationships, along with guaranteed performance, MMG’s customers can expect a smooth journey on the road ahead.

miningglobal.com

TECHNOLOGY

HOW IOT TECHNOLOGY IS TRANSFORMING THE MINING INDUSTRY We take a look at some of the challenges faced by mining organisations on a day-today basis, and how mining technology can help leaders overcome complications WRITTEN BY: TANMAY PATANGE

n the digital period, technology is thoroughly changing how organisations operate. Asset-intensive enterprises like utilities, oil and gas, energy, manufacturing and construction are progressively deploying IoT solutions to conduct operations more productively and lower costs. As the population keeps on growing, there is increased pressure on the mining business. With every industry utilising new technologies to bolster proficiency, cost savings and growth, the mining industry is also in the race. To conduct certain operations and guarantee mining safety, there's a crucial need to introduce underground monitoring and control systems.

“ IN THE MINING BUSINESS, EACH ROCK SQUASHED IS CASH IN THE BANK”

Hence, the mining industry is looking forward to IoT to automate certain operations and gain an edge. According to a study by market research specialist Vanson Bourne, 70% of participants from 100 huge mining organisations across the world believe that IoT would give them a significant advantage against competitors, with 41% recommending it would build business process automation and practically half assuring that IoT could be utilised to discover cost-saving opportunities. Nonetheless, IoT technology has been around for quite some time now, representing connected machines, sensors, connected appliances and internet-powered equipment. However, the mining industry has been slow to accept this technology, frequently deciding to stay with traditional and manual processes. It appears as though this is set to change as an increasing number of firms are starting to realise the advantages IoT can provide in mining operations. Indeed, this technology can change the business, increase safety measures in dangerous conditions, improve overall efficiency, and positively influence an organisation’s bottom line. How can IoT help the mining industry overcome its drawbacks and move on the path of growth and efficiency? First, let's understand some critical challenges the mining industry faces each day to get insights. miningglobal.com

TECHNOLOGY

“AN IOT POWERED CENTRAL SYSTEM CAN PROVIDE BETTER EVACUATION PROCEDURES AND RESCUE OPERATIONS IN CASE OF AN ACCIDENT” Challenges of Mining Industry Mining is a very risky business. Long-held issues are still persistent, such as hearing loss because of high noise levels, lung diseases because of coal dust inhalation, and chemical risks. Further, the risk of breakdown incredibly increases with mines getting deeper. Progressively unusual environments and surface temperatures exacerbate the conditions. Further, as an ever-increasing number of mines are set up in off-grid areas, it becomes troublesome from a financial outlook to construct permanent power infrastructure to support the mine. That is the reason organisations are peering toward scalable microgrids in mines to satisfy power requirements.

Along with being risky, it adversely affects the environment too. Its unfavourable impact on the climate incorporates erosion, biodiversity loss and contamination of surface water, groundwater and soil. Besides these, fluctuating commodity costs, declining worldwide demand, rising safety and security risks, etc., are significant challenges the mining industry faces quite often while expecting to meet mounting expectations of the shareholders. To remain cut-throat, organisations need to become less lean, more grounded and creative. Here, digitalisation plays a significant role by offering new opportunities to expand efficiency and operational excellence. miningglobal.com

TECHNOLOGY

IoT in Mining While technologies such as artificial intelligence, machine learning, drones, etc., are already being used in the mining industry, IoT solves the challenges of the industry at the core, helping mining organisations gain efficiency and save operational costs. Let's check out how. Cost Optimisation The driving purpose for mining organisations’ utilisation of IoT in their operations is to increase productivity and cost optimisation. By implementing sensors on mining hardware and systems that monitor equipment, diggers can utilise huge sets of data, also known as big data, to find more cost-effective methods of conducting their operations and further developing efficiency along these lines. The deployment of sensors likewise can diminish operational downtime by and large, as organisations can utilise the data accumulated to train their machinery and prevent breakage. For example, Glencore's Matagami Zinc mine in Canada has been utilising digital sensors organisation Newtrax since 2016. Using Newtrax's Mobile Equipment Telemetry (MET), which furnishes mine tasks with fundamental data from interconnected resources and equipment, Glencore can effectively see how their equipment functions to improve efficiency. Over time, the organisation has revealed that the average tonnage of ore pulled in each outing has ascended from 55 tons to 60 tons. Predictive Maintenance Having a completely integrated network, checking each part of an operation becomes far simpler and results in more prominent functionality and security. It consists of identifying wear and tear for crucial pieces 86

September 2021

of equipment and projecting when repairs or maintenance are required. More Control Administrators can gain significant insights in real-time by monitoring, gathering, and analysing the data from individual mining equipment. IoT assists administrators with comprehension in case there is a breakage or deterioration in performance, offering them the chance to respond quickly and suitably.

TECHNOLOGY

In the mining business, each rock squashed is cash in the bank. Administrators can't stand to have systems down for a few hours while they trust that an engineer will head out to the site as it can bring about a considerable loss in production. While IoT can assist with reducing the cases of downtime, issues will happen, and when they do, each moment counts in the race to fix. Nonetheless, IoT can help here, as well. Engineers don't generally have to have an actual presence on location to repair with approval from administrators. They can sign in remotely and help mine workforce to address the issues, saving the site important time and money.

Glencore Matagami, Newtrax

“ WITH IoT COMMUNICATIONS TECHNOLOGIES, YOU CAN BE SUBSTANTIALLY MORE FLEXIBLE”

Better Plant Design One of the initial applications of IoT in the mining industry is plant design. Each plant is interesting with a unique hardware set and flow sheet that details the production stream. Data gathering devices like sensors are often not set in predetermined locations in the flowsheet in light of the theory during the underlying design. When deployed, these wired gadgets become static, and it's undeniably challenging to make additions or adjustments because of the capitalescalated and tedious process. Presently, with IoT communications technologies, you can be substantially more flexible. You can move the sensor around and choose which area is ideal for data collection during production. Improved Safety There are noticeable risks in the mining business, even though innovation has figured out how to kill some of them. IoT can assist with forestalling the breakdown of unsound shafts because the sensors will get real-time information and predict any miningglobal.com

TECHNOLOGY

“ IoT TECHNOLOGY HAS BEEN AROUND FOR QUITE SOME TIME NOW, REPRESENTING CONNECTED MACHINES, SENSORS, CONNECTED APPLIANCES AND INTERNETPOWERED EQUIPMENT”

September 2021

TECHNOLOGY

Garmin, IBM's Maximo Worker Insights solutions

faulty machine or where issues might occur, which considers modifications to be made before anything turns out wrong. Mining organisations can likewise avoid accidents. Moreover, an IoT powered central system can provide better evacuation procedures and rescue operations in case of an accident. To improve safety, IBM has partnered with wearable technology developer Garmin to provide mining organisations with realtime sensor information and alerts on their workforce. Using IBM's Maximo Worker Insights solutions, an IoT platform that gathers data from wearables and natural sensors, mining organisations can get realtime alerts and warnings on high pulses, man-down situations and other biometric signs to further safeguard worker safety. Conclusion If we aggregate all of the points explained above, IoT saves energy expenditure, helps build smart solutions and transform the mining industry. As IoT solves many problems in the mining industry, how quickly you deploy it is the only matter of concern. miningglobal.com

SUPPLY CHAIN & OPERATIONS

The Mining Supply Chain and OPS The future of sustainable, renewable alternatives hangs in the balance as mineral supply operations are knocked back by ongoing disruptions

WRITTEN BY: TANMAY PATANGE

upply chains and procurement operations have always functioned based on the proportionate connection between supply and demand. Thus, supplying raw materials that are high in demand, all parties in the supply chain generate profit. However, the recent disruptions in the ore mining industry could have repercussions that decide the fate of Electric Vehicles, aircraft engines, and wind turbines. The Electric Vehicle industry, in particular, is expected to face a challenging roadblock due to an insufficient supply of lithium and other minerals. At the same time, the United States and the European Union have been pushing towards replacing fossil fuel-based machines with electric ones. Neither of these parties wants to keep relying on China, which has been controlling a substantial portion of processing minerals like lithium, cobalt, and graphite. Amidst these geopolitical issues and the ever-increasing demand, the ore industry has to ask itself: is supply more important than cost? 90

September 2021

Problems that Disrupt Mineral Supply Ops For years, organisations have focused on industries that provide substantial profits by delivering supply to the sources that demand the same. Nevertheless, supply chain operations have to follow a unique strategy to align with the instructions from the governments and the big step towards eco-friendly business practices. To be more specific, organisations receive so much pressure towards creating a European supply chain for minerals that spearhead the development of EVs and other modern machines. Before the pandemic started wreaking havoc across the globe, the industry was getting prepared for the upcoming boom of demand. It was predicted, among other things, that the EV industry would require more than 50% of the current global supply.

“ The ore industry has to ask itself: is supply more important than cost?”

SUPPLY CHAIN & OPERATIONS

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Empowering safer, more sustainable mining As energy costs fluctuate, high-grade ores become scarcer, and profit margins tighten, productive mines recognize that technology is essential to their success. Companies must be smarter, safer, and quicker to respond to change. Their future depends on it. Hexagon recognizes that the competitive edge of its customers depends on empowering an autonomous future by integrating, automating, and optimizing critical workflows. This means smart mines that are efficient to operate, maximize safety and minimally impact the environment.

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SUPPLY CHAIN & OPERATIONS

“ Instead of looking at immediate profits and financial stability, the ore supply industry follows a holistic approach” Because electric vehicles use more copper than vehicles with an Internal Combustion Engine, the industry was left with an option to enhance its supply capabilities only if it had gone as per the plan. However, the COVID-19 spread and the lockdowns that followed the pandemic had disrupted this seemingly effortless plan. During the same time, companies have found it necessary to cut down their carbon footprint. Therefore, moving materials from one region to another using fossil

fuel-based transportation methods does not seem practical. Similarly, importing materials from China, which has invested heavily in and profited from ores, seems equally problematic. Even when keeping aside the geopolitical tensions, relying on a single source to get the necessary parts for a potent industry is not the most desirable set-up for many. Therefore, the EU and the US have started using regulations to push the industry towards an unconventional route: prioritising supply over cost. The Solutions and Issues The solutions that are being considered by the ore industry are not uncommon. However, they seem to be on the unconventional side of things. Instead of miningglobal.com

SUPPLY CHAIN & OPERATIONS

“ Organisations must take a long-term approach to capital investment with the primary objective of supplying as per the demand” 94

September 2021

looking at immediate profits and financial stability, the ore supply industry follows a holistic approach. It is imperative that the EV industry needs a constant supply of minerals, especially when consumers are willing to shift to environmental-friendly vehicles. So, instead of waiting for the most cost-effective options — that may ultimately defeat the purpose of a carbon-free future for the industry —, companies must invest substantial capital in many subsectors.

SUPPLY CHAIN & OPERATIONS

Britain will see one of the larger metal purification centres, thanks to a rare earth developer called Pensana. The developer has its main projects in Angola, but the UK government will assist the company in enhancing the supply chain using the Automotive Transformation Fund. Similarly, companies that localise their ore supply chain tend to receive government aids and tax subsidies. Nevertheless, shifting the processing centres from Asia-Pacific is easier said than done. While businesses in Asia have retained an efficient framework for the ore supply chain, establishing the same in regions like the European Union or the United States is challenging. Organisations would face many issues, such as the lack of low-cost labour and the presence of stricter regulations. Therefore, a company that relocates its mining and ore-processing infrastructure from China to Europe must be ready for a substantial investment upfront. The same needs to continue for a considerable period, and it becomes a race for survival.

We can find a few examples in the European Union, where the pressure towards reduced carbon footprint is relatively high. Mkango Resources is a popular rare earth developer whose projects are in Malawi. After the long-lasting impact of COVID-19 and increasing demand, the company has partnered with Groupa Azoty Pulawy, a chemical company. Together, they will build a mineral separation plant in the Special Economic Zone of Poland. Similarly,

Supply over Cost: The Race for Survival There is no doubt that the EV industry will need more minerals than ever by 2030. Experts have added that there will be a 637% demand increase for lithium, while cobalt supplies should embrace a 183% rise by that time. However, 2030 is a number that is far away for companies that aim to establish mineral processing units and ore supply chains in Europe and the United States in 2021. The analytics has not yet predicted the pattern for the increase in demand. However, the optimistic sources believe that companies that can keep the costs minimum will survive the race. However, there is also another narrative that is keeping miningglobal.com

SUPPLY CHAIN & OPERATIONS

“ Electric vehicles offer sustenance from an economic and planetfriendly point of view” investors afraid of these movements. Even though the world predicts higher demand for EV-based hardware, price volatility is a concern. Indeed, the price decrease of minerals in the 2017-2020 period compromised many investors' confidence in these ores. The problem is more common in the case of commodities with relatively small markets. While copper and aluminium tend to get sufficient capital investments, lithium and cobalt are on the verge. The same is the case for platinum and nickel, which hold a relatively better position than lithium and cobalt but are still undermined by aluminium and copper. While it is true that aluminium and copper make up most of the bulk in the EV industry, these vehicles cannot fulfil their purpose without the proper supply of lithium/cobalt. Market analysts and industry veterans have recommended a few ways to approach the unique scenario. However, we should also keep in mind that companies that start ore processing systems in Europe and elsewhere need to adhere to the changing ESG pressures. Considering these, organisations must take a long-term approach to capital investment with the primary objective of supplying as per the demand. In addition, they must diversify the strategy. It will also be essential to have consortiums that can help them predict and act according to the government policies. 96

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SUPPLY CHAIN & OPERATIONS

Given the common objective of carbonfree and environment-friendly designs, it is also essential to optimise the EV industry for recycling and reusing resources. Fortunately, government subsidies and tax exemptions can help organisations get the jump-start they want. Yet, despite all these, taking investment-related risks and deriving a comprehensive strategy is necessary for social commitment and pioneering the electric vehicle era that our planet desperately needs. What the Future Holds Though we are unsure about the patterns, electric vehicles offer sustenance from an economic and planet-friendly point of view. The ore industry, hitherto monopolised and geopolitically restricted, must be ready for this optimisation, starting with localising the availability of necessary minerals. And putting supply over cost is the only way to avoid a detrimental impact on the EV mobility sector and embrace long-term financial and ethical goals. miningglobal.com

TOP 10

September 2021

TOP 10

MINING TECH

LEADERS

Mining Global Magazine takes a look at the technology leaders and innovators that play a crucial role in supporting mining operations and management

WRITTEN BY: TANMAY PATANGE

apid developments in technological innovation, including automation, digitisation, and facial recognition, have significantly impacted the mining industry in recent years. A couple of key advancements reshaping the industry incorporate autonomous vehicles, drones, robots, IoT-enabled sensors, and robotic process automation. Let's look at the top 10 mining tech leaders who transform the industry with their experience and expertise.

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TOP 10

Steve de Jong Chairman

Integra Resources Steve is the Chairman at Integra Resources. One of the soughtafter speakers on mining innovation, Steve is passionate about developing technology solutions to advance resources exploration. He aims at transforming the mining industry using highly connected and hightech solutions. He co-led the efforts behind the 2016 Integra Gold Rush Challenge and the 2017 #DisruptMining initiatives.

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September 2021

Pamela Hackett CEO

Proudfoot Pamela has diverse experience working across close to 1000 organisations ranging from mining, oil and gas, insurance, and many more. She is a wellrenowned keynote speaker and CEO of Proudfoot, who helps organisations gain impactful results through excellence in digital transformation and operations. Besides, Pamela loops in the human element along with the digital transformation. That's what makes her stand out from the rest.

TOP 10

Rolf Fandrich Co-founder

Voconiq

Rolf is an industry expert in helping organisations grow using different technologies. Currently, the Co-founder of Voconiq, Rolf aims at driving tech-based solutions across different industries, including mining. He is one of the speakers for Future of Mining Americas that will take place on 3-4th October 2022, in Denver, USA.

Afzal Jessa

Chief Digital Officer

Vale

As the Chief Digital Officer at Vale, Afzal is a business transformation leader, digitally transforming processes and organisations. With a strong tech background, Afzal focuses on going beyond business outcomes to bring innovative breakthroughs at Vale and transform the mining industry. Not just to drive innovation, but Afzal believes in sustainably digitally transforming processes or organisations.

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Change is hard. The truth is that many mining companies are still very hesitant about furthering their digital mining transformations in fear of cost of implementation, risk and uncertainty. However, digital solutions from AVEVA can help mining companies reduce complexity and optimize business and operational performance. aveva.com @avevagroup linkedin.com/company/aveva

For more information, read our free E-Book on Digital Mining Transformation.

TOP 10

George Hemingway Advisor

Stratalis Consulting

Carl Weatherell

George is a well-known keynote speaker and a CxO Advisor. George currently leads the Innovation Practice for a growth strategy consultancy, helping companies embrace innovative solutions and practices across diverse industries, including mining. He focuses on innovation strategy and aims at bringing disruptive change.

CEO

CMIC Carl is the Executive Director & CEO at CMIC (Canada Mining Innovation Council). CMIC aims to develop technologies that will help reduce waste, cut down costs, and alleviate the environmental impacts in the mining industry. Having over 30 years of experience, Carl has won numerous awards for his breakthroughs in technology and leadership. miningglobal.com

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TOP 10

Arun Narayanan Chief Data Officer

Anglo American Arun is the Chief Data Officer at Anglo American. Having 24+ years of experience in building and developing digital solutions, Arun is currently heading VOXEL. This data analytics platform aims at improving operational excellence in mining with the power of the digital twin. Besides, his core expertise lies in the cloud, data analytics, machine learning, and much more.

Dr Mohammad Babaei Program Manager

Teck Resources Ltd. Currently serving as the program Manager, Mining at Teck Resources Ltd., he has provided guidance and support to digital innovation across the organisation. He has pioneered the cuttingedge application of ML in mining and maintenance and the development of a one of a kind real-time diggability solution.

TOP 10

Janice Zinck

Director of Critical Minerals & Strategic Resources

Natural Resources Canada Janice is the Director of Critical Minerals & Strategic Resources, a division of the Natural Resources Canada (NRCan) dedicated to research, development and innovation. As the mining industry in Canada is shifting towards innovation and green technology, Janice is accelerating this transformation, developing innovative solutions in mining, processing and environmental management.

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MSTA CANADA - The DIG - EP 42 Special Guest Theo Yameogo

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TOP 10

Theophile Yameogo

Mining & Metals Sector Leader

Theophile strongly opines that mining is a lucrative industry, and so much can be achieved through new ideas and concepts. Currently, with Ernst & Young, Theophile is also Americas' Mining & Metals Sector Leader. Since 2012, Theophile has focused on making technological developments in the mining industry and accelerating transformation initiatives and digital transformation.

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Mining Magazine - September 2021

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