Mining companies are looking to technology for drastic operational changes. This is according to the International Data Corporation's (IDC's) most recent Energy Insights research, which found an overwhelming 83% of mining companies say their technology budgets will increase or stay the same in 2015.
According to the IDC, top strategic objectives for miners this year include improving safety and automation of assets as well as mine operations management and control. The survey of 190 miners globally found 69% of mining companies are looking at innovations for remote operation and monitoring centres. New mining methods are an area of concern for 56% of companies, while 29% are looking into robotics and 27% at unmanned drones.
"The potential for data intelligence, data integration, and technologies like robotics to change the physical nature of mining is recognised by leading mining companies, which are taking steps to realise that potential," according to an IDC statement.
The IDC says the impact of technological transformation and digital disruption has been apparent in IT-intensive sectors for some time but these trends are only recently beginning to influence the mining sector.
"The future of mining is to create the capability to manage the mine as a system - through an integrated web of technologies like virtualisation, sensors, robotics, and the connectivity of IOT [Internet of things], which will allow more complete command of the whole system."
The IDC says IT is connecting the physical with the virtual for miners through a raft of technologies, sensors and solutions which are enabling greater transparency across mining operations.
"This transformation is not only about being able to see what is happening across a given mine, but rather about the ability to control the entire mining environment and, eventually, to respond predictively to various operational factors."
The mining sector is facing a period of enormous challenges and falling commodity prices have made cutting costs the industry's top priority.
"Globally, productivity of mining companies has been declining since before the commodity price boom, despite vast production and supply-chain investments. Mining companies are under more pressure than ever to get more material from the ground, of the highest possible grade at the lowest possible cost," according to the IDC.
Technology's role as an enabler is therefore becoming critical for core mining operations to save costs and up production.
The survey found the vision of mining company leaders was the stand-out characteristic that made them more successful with their transformation initiatives to date.
"Leadership transformation - where senior leaders have a sophisticated understanding of technology that informs their vision for transformation - needs to play a more significant role globally, as it is still developing across the mining sector in most countries."
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