The Asia Miner

JAN-MAR 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 16 • issue 1 5 LEADING DEVELOPMENTS and the pace of change is outpacing our ability to adapt. This makes it imperaঞve for mining companies to clarify how they plan to drive value into the future and how they intend to respond when prices inevitably drop again." According to Deloie, the following trends will play a pivotal role in propelling the mining industry into the future: RISK MANAGEMENT IN DIGITAL ERA Deloie believes that with today's widening of the risks within the digital landscape, tradiঞonal assurances of protecঞon are no longer effecঞve. For a mining company to remain at the forefront of its game – and to fulfill the expectaঞons of its boards, investors and communiঞes – they need to have a forward- looking view on risk, moving from risk assurance to the anঞcipaঞon of emerging risks. DIGITISING THE SUPPLY CHAIN The organisaঞons that determine how to interlink their supply chains, from pit-to-port, can do more than break down operaঞonal silos. They can also gain the end-to- end visibility needed to enhance their asset uঞlisaঞon, operaঞonal efficiency, and producঞvity, realising hard dollar savings as a result. ANALYTICS AND AI Industry 4.0 and the increased connecঞvity between the physical and digital worlds, represent opportuniঞes to explore massive amounts of informaঞon, do it quickly, and distribute knowledge wherever it needs to go. Yet, as informaঞon floods into businesses, data volumes proving difficult to keep up with. Deloie believes that in order to progress, it is imperaঞve for mining companies to shi[ from what it calls 'Horizon 1' – Assisted Intelligence requiring assisted human assistance and interpretaঞon – to 'Horizon 2' and 'Horizon 3': Augmented Intelligence, where machine learning augments human decisions, and Autonomous Intelligence, where AI decides and executes autonomously. To move up the analyঞcs maturity curve into Horizons 2 and 3, organisaঞons must gain the ability to answer progressively more complex quesঞons such as "what happened?", "why did it happen?", and "what will happen?". According to Paul Klein, Consulঞng Partner Deloie Australia, experience shows that the majority of early analyঞcs use cases have been targeted point soluঞons, which deliver value in only one part of the value chain or at only one operaঞon. "Increasing analyঞcs maturity requires greater integraঞon of data from mulঞple sources, and delivery of end-to-end planning and decision-making soluঞons that span mulঞple processes and operaঞons," said Mr Klein. RETHINKING MINING STRATEGY In the past, mining companies typically anchored their strategic planning around producing large volumes of ore at the lowest possible cost. This approach of building increasingly larger mines in pursuit of superior returns underpinned by the expectaঞons of constantly rising commodity prices, has led to large amounts of debt being incurred to fund these projects with significant write-offs. "To thrive into the future, mining companies will need to challenge the status quo—and the only way to do this is by soliciঞng a diversity of opinions and taking the risk to do things differently," says Glenn Ives, Americas Mining & Metals Leader, Deloie Canada. Diagram depicng the shi[ from tradional supply chain to digital supply network. Source: ©Deloie

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