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Making mines smarter
South Africa is incredibly rich in natural resources, with large reserves of some of the most valuable minerals on the planet. Since industrial scale mining began in the 1850’s, South Africa’s mining industry has carved out an international leadership position – one that the mining companies have no intention of losing.
In today’s competitive business environment, retaining industry leadership requires the right technology investments. This is even more important for miners, who not only have to stay ahead of competitors, but have to contend with a number of requirements and challenges specific to their industry.
Consultancy firm Accenture says South African mining companies are pouring millions of rands into digital technologies. Accenture’s research shows the mining industry can create R213 billion in value through 2026 by investing in the right digital initiatives.
Industry firsts
This is why progressive organisations like Minetec Smart Mining, Canyon Coal’s Phalanndwa Colliery, Nkwe Platinum and South Africa Zijin Platinum are partnering with technology leaders MTN Business and Huawei to take their businesses to the next level. These miners are embracing the Fourth Industrial Revolution (4IR) and leading-edge technologies to ensure their sustainability and effectiveness in the decades to come.
Canyon Coal’s Phalanndwa Colliery has used its technology partners to create a 5G-connected coal mine operation in Delmas, Mpumalanga. The mine combines digital applications with 5G, achieving the first trial use of 5G applications of mining solutions in SA, providing a major step toward digital transformation of the coal industry.
Similarly, Nkwe Platinum and South Africa Zijin Platinum, wholly owned subsidiaries of the Zijin Mining Group, were backed by MTN Business and Huawei in the development of the Zijin Garatau Platinum Mine. The Zijin Garatau Platinum Mine is one of the Zijin Mining Group’s major projects, being the organisation’s first high-tech and safe overseas smart mine.
The collaboration at Phalanndwa Colliery saw Huawei and MTN providing an advanced 5G solution to ensure guaranteed connectivity within the mine and plant area. The ultra-high bandwidth and ultra- low latency of 5G allows real-time communication among the mine workers. This will be followed by the deployment of more application scenarios, including PDS (proximity detection system), vehicle detection, tracking system and wireless video surveillance. The Zijin Garatau Platinum Mine is the Southern African region’s first 5G-enabled smart metal mine, with MTN and its technology partners deploying smart mining solutions like vehicle remote control, IOT and enterprise digital transformation.
Leading the change
These projects have been enabled by a partnership agreement between MTN Business, Huawei Technologies South Africa, Miniandante Mining company and Minetec Smart Mining. The partners offer 5G technologies, equipment and connectivity to mining customers, with a number of active test cases with mines throughout South Africa currently running. The technology investments made by these mines are providing compelling use cases. From energy efficiency to waste and environmental monitoring, to equipment and asset monitoring, the implementation of IoT and its associated technologies is transforming mines into poster children for the 4IR.
“Smart mining continues to be a buzzword in South Africa. At MTN Business, we are excited to be playing a leading role in this space by using our world-class network and systems to promote the growth and sustainability of our enterprise customers. 5G technology is a game-changer that will transform old mining processes,” says Wanda Matandela, Chief Enterprise Officer at MTN Business.
“We have invested over R50 billion in modernising our network for the past five years. This investment has put MTN in a greater position to offer cutting-edge, faster and seamless connectivity to its customers. The partnership will see all parties involved reaping the benefits of our best network.”
The future of mining success
Matandela adds that the application of digital technologies, both in their current form and in future digital forms such as artificial intelligence (AI), machine learning (ML), big data analytics, and the Internet of Things (IoT) is increasingly pivotal to mining success. McKinsey predicts that by 2035 AI and IoT will save up to $390 billion for mining operations annually. Of course, revenue will grow accordingly. However, according to a study conducted with 100 global mining companies, only half utilise IoT’s opportunities for cost savings and the other half still suffer losses from these missed opportunities.
“This advancement will become increasingly important as South Africa looks to remain competitive in the global mineral and resources space. South Africa is seeing improvements in the digitsation of the mining sector as mines start gaining the benefits technology offers. Investment only in the Internet of Things (IoT) has grown more than 30% over the past six years, with other technologies in the digital ecosystem powering smart mines seeing similar growth,” he says.
“Mines are reporting cost optimisations of around 23% as a result of IoT solutions and 18% improved production recovery through reduced downtime of machinery and shutdowns. This will ensure much greater investment into IoT solutions in the future as mines look to gain even more efficiencies. There are many other IoT use cases that mines have started valuing. Radical improvements in safety are being matched with marked improvements in ESG adoption and reporting and value chain automation, to name a few. Whether miners have implemented large-scale projects or have just started investing in IoT, they are all starting to see the benefits of proactive, informed decision making,” Matandela concludes.
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