HOUSTON, TX / ACCESSWIRE / August 15, 2018 / The digital revolution is transforming the global mining industry, which is a key driver of the world economy and valued at $750 billion in 2017. Artificial intelligence (AI) is already being applied to process vast amounts of data to increase the success rate of mineral discoveries, notes Richard Verkley, CEO of Eco Metals Recovery UK.
The World Bank's Metals and Minerals Price Index rose 16% from 2015 lows to average $87/tonne last year. It is expected to further increase by 8.5% in 2018 on strong global demand for raw materials. "Mining companies are required to remain competitive in low commodity price environments while positioning themselves for growth in periods of rising prices. The application of AI technology to the automation of operations has become vital for enterprises looking to gain a competitive edge," Richard Verkley points out. An increase in efficiency due to automation helps companies to reduce costs and extend the life of productive assets. In addition, these technologies lower the energy intensity of mineral extraction and transportation, reducing companies' environmental footprints.
Gains from automation can be made across the project life cycle. In 2017, Canada's Goldcorp partnered with IBM's Watson to enhance exploration in its mines. Watson's analytics were applied to survey data, guiding geologists to high-value target areas and providing better information for modeling. Automation can also drive down extraction costs once mineral discoveries are made, and autonomous trucks and drills decrease personnel costs while increasing productivity. Mining giant Rio Tinto announced last year it was expanding its autonomous fleet by 50%, commissioning over 130 trucks by 2019.
Digital monitoring systems can also manage company risk and increase the safety of an active mine. The ability to process timely information from operations and learn from historical records allows the system to predict safety breaches. The creation of Digital Twins, or virtual models of physical assets that collect real-time data through sensors, enables companies to conduct predictive planning and stress-testing exercises. Machine learning algorithms, which can respond to patterns within large datasets without pre-coded instructions, are key to linking automation with the complex operations of miners, says Richard Verkley.
Global business consultancy Ernst & Young advises mining companies to consider a multi-step, integrated approach to digitalization and automation. Looking beyond short-term operational gains, miners should employ a digital strategy across the value chain and adapt their business approach to capture full value from technological disruptions. Current trends suggest that future capital spending in the sector will shift in favor of AI. A recent survey by Accenture revealed that 54% of executives consider robotics and automation an important area for investment. The World Economic Forum reported that digital transformation efforts will add $190 billion in value to the mining industry over the decade ahead.
Richard Verkley is the CEO of Eco Metals Recovery UK and Farpoint Metals & Mining, both of which are ventures focused on environmentally-sustainable business practices. He is also the founder of the Hearts of Gold Foundation, a registered Ecuadorian non-profit organization dedicated to capacity building within local communities. The charity project offers workshops and mentorship to community leaders who serve populations in need.
Richard Verkley - Eco Metal Recovery UK - Farpoint Metals & Mining: http://richardverkleynews.com
Richard Verkley on How AI Can Improve Safety in Mining Industry: https://finance.yahoo.com/news/richard-verkley-ai-improve-safety-014000996.html
Richard Verkley Explores the Role of AI in Reducing Mine Downtimes: https://finance.yahoo.com/news/richard-verkley-explores-role-ai-130000472.html
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SOURCE: Richard Verkley
