Software giant SAP is targeting the African mining sector with some solutions that it says will reduce the complexities the industry is facing.
The company says Africa holds up to 90% of the world's chromium and platinum group metals and 40% gold, according to the UN Economic Commission for Africa. It adds that the continent's vast wealth in mineral resources - which also includes aluminium, copper, iron ore, lead, nickel, uranium, zinc and coal - has fostered a diverse and multi-faceted mining industry.
During a media roundtable held on the sidelines of the SAP Russian and South African Mining Forum in Johannesburg yesterday, Nikhil Chaturvedi, SAP's director, IBU - mining and mill products, revealed that the majority of mining companies based in Africa are looking for next-generation mining solutions.
Also speaking at the event, the company's director for mining and metals, IBU mining and mills products, Georg Gradl, noted that mining companies on the continent require integrated IT solutions to make their operations smoother.
SAP believes that today, more than ever, mining companies across the globe are striving to improve their business efficiencies and control costs. It adds that the mining industry in Africa presently faces turmoil, including challenges around price as well as demand volatility, resulting in it being more cautious in its capital-project decisions and an inclination to engage in cost reduction initiatives.
Dealing with many of these challenges is possible through employing integrated software that gives a digital mining enterprise vision, says SAP, which defines a digital mining enterprise as a mining organisation that has the capability to orchestrate information systems on-premise and on-demand with ease and confidence.
The outcome is increased flexibility, scalability, improved security as well as interoperability of data across multiple devices, the company notes, adding that this culminates in greater operational efficiency and productivity and the hugely advantageous ability to react in real-time to geological conditions.
Chaturvedi noted that a digital mining enterprise integrates enterprise management systems, production control systems as well as mining specialist systems.
"The real-time visibility of what happens on the shop floor and the possibility of all those involved in the manufacturing and delivery process working together is essential to improve processes, reduce costs and intermediate stock levels and, moreover, the improvement in various industry operational indicators," he said.
Describing the benefits of a digital mining enterprise, Chaturvedi noted that it enhances delivered throughput while providing greater operational efficiency and productivity - taking into account the constraints like declining grades, inadequate skilled people availability, difficult terrains, greater depths, higher rock stress and impact on environment.
A digital mining enterprise also reduces the operational costs in mines and processing plants as well as reducing the combined total cost of ownership of various applications running in the mining, beneficiation, processing and transportation areas, he noted.
"The other benefits include reacting real-time to geological conditions using intelligent and remote-controlled surface mining equipment and underground mining equipment. Increasing exploration efficiency using intelligent drilling rigs and improving the quantity and quality of data acquired from borehole are the other benefits."
SAP says the unpredictable nature of the mining industry is encouraging many African mining companies to embark upon digital mining initiatives in an effort to create an integrated technology application landscape of seamless information flow.
It claims that its digital mining enterprise software offers a vast range of pertinent solutions, including the SAP ERP application, the SAP for mining solution, SAP HANA and the SAP operations management for mining application.