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Indaba 2015 - IBM mining on demand

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By Dirk Claasens, IBM Vice President for Industrial Products , presents a point of view of the South African Mining Industry at Mining Indaba 2015.
The industry of mining is by its nature highly exposed to risk. Its asset intensity, commodity price dependence and health safety and security (HSE) profile demand predictability. So it seems perfectly understandable that productivity has become the mantra for the mining industry. The typical response to market volatility are austerity and capital investment cuts, but nothing more than a short term cash improvement. Urgent and sustainable productivity gains are important but responsiveness to volatile market demand is even more important. It’s called agility. Technologies pave the way to adopt a mine- on- demand supply chain design. Mine to order is
the big picture approach to gaining optionality in mine design and scheduling driven by the
power of big data and analytics. It’s the non-intrusive breakthrough the industry needs to be
agile and thrive. Not just survive.

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Indaba 2015 - IBM mining on demand

  1. 1. "Mining on Demand" How Information Technology Can Transform the Mining Industry Dirk Claessens Vice President, Metals & Mining, IBM Capetown, February 2015
  2. 2. With the end of the commodity supercycle behind us, the mining industry has taken its initial productivity measures. More is required, the mining industry is in need of agility & visibility. Current technology facilitates this objective. We call it « Mine-on-Demand ». 2
  3. 3. DEMANDSUPPLY Current Status: Lack of Optionality & Integration kills Agility & Visibility 3 Establish Sell & Distribute Exploit BeneficiateDiscover Rehabilitate
  4. 4. DEMANDSUPPLY Current Status: Lack of Optionality & Integration kills Agility & Visibility 4 Establish Sell & Distribute Exploit Beneficiate Lack of optionality in the design and planning phase Lack of optimization and optionality in scheduling phase Discover Rehabilitate
  5. 5. • POC at a platinum producer demonstrated an 8 week current process reduced to minutes • Multiple realistic design scenarios can be created for immediate evaluation and optimization • Leverage descriptive, spatial visualization to inspect, analyse and animate each scenario to verify feasibility – with the ability to share options over the web Outcomes & Benefits OPTIONALITY IN DESIGN OPTIONALITY IN SCHEDULING MINE-ON- DEMAND The Solution : Optionality in Mine Design and Scheduling • Baseline, Unconstrained and Constrained Scenario Building • Optimized schedules for multiple business factors and constraints, e.g: Outcomes & Benefits • Shaft hoisting capacity • Reef Density • Tramming capacity • Waste Density • # Panels per raise line • Commodity Price Forecasts • # Raise lines per half level • Exchange Rates & Inflation Forecasts • Extraction %
  6. 6. DEMANDSUPPLY Current Status: Lack of Optionality & Integration Kills Agility & Visibility 6 Establish Sell & Distribute Exploit Beneficiate No mineral asset visibility as inventory on an enterprise level Discover Rehabilitate
  7. 7. EnterpriseSystems MiningAssetSystems The Solution : Enterprise Visibility Of The Mineral Asset Copyright, MineRP 2014 Translate to Inventory Maintain Inventory Understand Mineral Asset On Demand, auditable, traceable Mineral Asset Management •Continuous control of Mineral Asset status, at any level of granularity •Exposure of data sources for analysis, by analytics tools •Mineral Asset knowledge founded upon fully auditable/traceable mining technical information •Commercially advised mining decisions and mining-advised commercial decisions •Standardised , integrated information framework spanning the whole value chain. Outcomes & Benefits ORE RESERVE ENTERPRISE INTEGRATION
  8. 8. DEMAND SUPPLY End-to-end Integration will drive Agility and Visibility 8 Establish Sell & Distribute Exploit Beneficiate « Sell what you have and then mine what you sold. »
  9. 9. 9 Conclusion. …On Demand Mining, providing the Agility and Transparency required can be delivered today. Come and visit IBM and MineRP’s stand so we can explain..

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