Across the industry, comparable application of advanced-analytics approaches to drive yield improvements for commodities with similarly complex ore-processing operations, such as copper, nickel, phosphate, and platinum, could translate to roughly $20 billion to $50 billion per year of additional earnings before interest, tax, and depreciation. Mines leveraging new technologies to enhance their productivity is nothing new. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. End of the investment boom. By searching the title, publisher, or authors of guide you in fact want, you can discover them rapidly. Based on our benchmarking, we observe a global average overall equipment effectiveness (OEE) performance of 27 percent for underground mining, 39 percent for open-pit mining, and 69 percent for crushing and grinding—compared with 88 percent for upstream oil and gas, 90 percent for steel, and 92 percent for oil refining. Use minimal essential Please email us at: How advanced analytics helped a gold mine to step up performance, How a mine cut maintenance costs and improved equipment availability using advanced analytics, Mining the unmineable: How digitization is paving the way for a mining company to move far beyond historical frontiers. The mining companies that recognize this shift today and best navigate the changes ahead will be the winners of tomorrow. The result has been that mining productivity has leveled off and even started to recover in some locations and commodities. A large North American open-pit mine applied an advanced analytics–based approach to how it maintained its hauling trucks, and within six months captured 12 percent savings in labor, services, and spare parts and improved availability by 5 percent. our use of cookies, and Despite the industry’s booms and busts, the nature of mining has stayed the same for decades. How did the mine achieve this? This trend is evident across commodities, geographies, and most mining companies. Second, the use of clustering algorithms made it possible to more accurately identify the cause of equipment failures. Our flagship business publication has been defining and informing the senior-management agenda since 1964. We believe that the mining industry is at an inflection point, in which digital technologies have the potential to unlock new ways of managing variability and enhancing productivity. The more data that are accessible to decision-making algorithms, the more effective they become; the more operational activities are systematized and recorded, the more they become valuable data in and of themselves; and the broader the scope of the decision-making algorithms, the more they reflect the best whole-of-business outcomes for the operation. Mining companies worldwide largely lost sight of productivity goals that had underpinned operating discipline in the lean years of the 1980s and 1990s, when parts of the industry had set a healthy record in productivity imp… 05.11.2015. Please try again later. The path to a step change in mining productivity will come through reducing and, where possible, eliminating the variability that has made mining unique. Each opportunity is significant in itself, but achieving the full potential of all opportunities is possible only if they are pursued in an integrated fashion. Press enter to select and open the results on a new page. Achieving a breakthrough on productivity performance demands rethinking how mining works. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Alone, each of these opportunities has real potential; together, they represent a fundamental shift in both potential safety outcomes and how value can be captured in the mining sector. Hugh Durrant-Whyte is professor at the University of Sydney. Is there hidden treasure in the mining industry? Digital technology can help literally at every stage of mining process, from exploration, extraction, transportation to processing of the ore and shipment. Riding the resource wave: How extractive companies can succeed in the new resource era, McKinsey_Website_Accessibility@mckinsey.com. Alone, each of these opportunities has real potential; together, they represent a fundamental shift in both potential safety outcomes and how value can be captured in the mining sector. Registrati per essere avvisato quando pubblichiamo notizie di tuo interesse. Artificial intelligence has large potential to contribute to global economic activity. Of course, mining differs from other industries in many ways. First, the physical technology required for automation provides the real-time flow of information that forms the foundation for better insights. How technology can boost productivity in small-scale mining. 2002-2013: Investment boom in mining driven largely by demand from China. The key to unlocking this value will be to see innovation as an undertaking that encompasses all aspects of the business, rather than a technology effort. Boosting production volumes became the industry’s top priority. As the industry outlook has deteriorated, most mining companies have shelved or trimmed expansion plans and refocused on doing more with less. This makes capturing the opportunity a management challenge for the next generation of industry leaders. On top of this, worldwide mining operations are as much as 28 percent less productive today than a decade ago—and that’s after adjusting for declining ore grades. Taking an advanced-analytics approach enabled the mine to improve gold output in a different way: it optimized its leaching extraction process based on extensive data analyses and boosted its average yield by 3 to 4 percent within three months. By applying advanced-analytics techniques, the mine was able to transform its maintenance approach through two initiatives, both based on analysis of the large quantities of data already being gathered but not being used. The industry has shifted its focus to improving productivity by “sweating” existing assets, but this strategy will go only so far. The first step brought together all the mine’s extensive but underused production and process data—not just from its operating and resource-planning systems but also from the laptops of operators and management—and deployed mathematical-modeling approaches to reconcile inconsistencies and data gaps. In truth, most of the technology challenge has been solved. Smart planning and coordination of activities are required to mitigate variability caused by external forces; disciplined execution is needed to eliminate variability that miners create themselves. Modern mines have to be digitally connected. But there remains significant untapped potential for productivity improvement. We see three reasons for this. Thus, we see it as a natural destination; the question is how long it will take to get there and to navigate the journey successfully. If you purpose to Never miss an insight. Second, in time, these decisions will be fed back to autonomous machines, not to human operators. Hugh Durrant-Whyte is professor at the University of Sydney. The fourth revolution is about much more than technology—it is an opportunity to unite global communities by improving communication and access to information, to build sustainable economies, to adapt and modernize governance models, to reduce material and social inequalities, and to commit to values … The large-scale adoption of four different clusters of technologies is accelerating: Taken together, these technologies enable a fundamental shift in the way mining works—a shift marked both by harnessing the flow of information to reduce variability in decision making and by deploying more centralized, mechanized operations to reduce variability in execution. The mining companies that recognize this shift today and best navigate the changes ahead will be the winners of tomorrow. AN INFLECTION POINT FOR THE MINING INDUSTRY We believe that the mining industry is at an inflection point, in which digital technologies have the potential to unlock new ways of managing variability and enhancing productivity. digital innovation can improve mining productivity as you such as. In the digital mine every operational detail is connecte d , improving safety, productivity and efficiency. Learn more about cookies, Opens in new We see five areas of significant value creation (Exhibit 2): A gold mine was under severe pressure because the gold grade of the ore body it was mining had fallen by around 20 percent. This timely webinar – presented by Australian Mining and Rockwell Automation – discusses how mining operations can benefit from embracing new technologies to improve system efficiencies and the safety of employees. For more information on McKinsey’s perspective on these disruptive technologies and Industry 4.0 in manufacturing, see Matthias Breunig, Jamie Cattell, Richard Kelly, and Dominik Wee, “Industry 4.0: How to navigate digitization of the manufacturing sector,” McKinsey & Company, 2015. Article How digital innovation can improve mining productivity Article Productivity in mining operations: Reversing the downward trend Article Riding the resource wave: How extractive companies can succeed in the new resource era The results of a unique way of production or we can say the achieving the productivity demand stimulates the industry for the new ideas of mining to keep rethinking. The COVID-19 pandemic has forced companies to rapidly evolve, but without past, present and future innovation, many of these changes would have been impossible. To seize these opportunities and take productivity to the next level, construction companies should apply digital to lean planning so foreman, subcontractors, and support staff in the field can more easily communicate, receive task assignments, check documents, and report progress through digital devices such as their mobile phones and laptops. We use cookies essential for this site to function well. In fact, an underinvestment in digital technology designed to improve productivity can lead to increased work hours, corresponding billing increases, increased operational expenses, schedule slippage and lost revenue. But by deploying a complete suite of digitized mining approaches, the miner is on the way to turning the economics around. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Their applications include building a more comprehensive understanding of the resource base, optimizing material and equipment flow, improving anticipation of failures, increasing mechanization through automation, and monitoring performance in real time. Innovation and adoption of breakthrough technologies could also help in the productivity battle, and the mining industry has room to raise its game here. Secondo le stime di McKinsey nel prossimo decennio il business Ai varrà 13 mila miliardi di dollari. Mining companies may wish to apply a better use of technology to achieve these goals: Seek out innovative technologies capable of unlocking deposits and improving productivity on the mine site. Flip the odds. Let’s define productivity as getting the job done faster, and increased productivity helps miners do more with less. The path to a step change in mining productivity will come through reducing and, where possible, eliminating the variability that has made mining unique. How mining leaders can take charge to improve safety, productivity and reduce stress By Hendrik Lourens and Paul Moynagh This article explores how combining a management operating system with frontline work management software can help stabilise operations, improve safety, lift productivity … The path to a step change in mining productivity will come through reducing and, where possible, eliminating the variability that has made mining unique. In the short term, falling commodity prices are squeezing cash flow. Our analysis shows that global mining productivity has declined 3.5 percent a year over the past decade (Exhibit 1). how digital innovation can improve mining productivity is available in our digital library an online access to it is set as public so you can download it instantly. Productivity drive and cost cutting sees record Australian coal and mineral production. Our view is that the greatest impact will come from embedding these technologies as an integrated whole across the mining value chain. On top of this, worldwide mining operations are as much as 28 percent less productive today than a decade ago—and that’s after adjusting for declining ore grades.1 1. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Over time, mining work will evolve toward knowledge-based jobs that solve the same challenges as today but do so through different means. While there is debate about the cause of the decline, there is universal agreement that this performance is untenable. The 3-D modeling data these robots provide to the control module on the surface can inform the real-time mine-planning and reconciliation approaches used for the mine’s development, and also avoid the dangers and delays of sending geologists to the just-blasted mine face. Subscribed to {PRACTICE_NAME} email alerts. tab. Deployment of robots down the mine that can assay the mine face using remote-controlled laser-scanned point clouds to inform the control module on the mine surface can cause a step change in productivity. First, using predictive models of failure made possible by more targeted and effective maintenance, examination of the data showed that gearshift-timing variances that appeared after trucks hit a particular revolutions-per-minute level were an indicator of imminent transmission failure, and so truck-maintenance strategy was modified accordingly. Using this approach, the mine learned that a particular portion of the truck fleet was suffering more failures—and that all the trucks in that portion were being used in a part of the mine that had very rough roads. Improve efficiencies through technology. There are six crucial innovations that today’s mining companies should strongly consider implementing. This will be a difficult change, and it will only succeed if industry leadership believes there is a big prize at the end of it. Our analysis indicates that the opportunity is indeed sizable—with a potential economic impact of about $370 billion per year worldwide in 2025 (Exhibit 5). If part of the truck fleet is undergoing greater stress—for example, carrying heavier loads, with more stops and starts—the maintenance-management system will be alerted, leading to an increase in maintenance frequency for those trucks, which in turn will trigger the scheduling of required maintenance crews and the ordering of replacement parts. We outline these opportunities and raise several key questions that miners should ask themselves as they navigate the journey. Please use UP and DOWN arrow keys to review autocomplete results. The increase in yield translated into a sustainable $10 million to $20 million annual profit improvement, with no need for substantial capital outlays or reorganizations. Significant yield gain the opportunity a management challenge for the next generation industry. Predicted, generated a significant yield gain disabilities equal access to our website un quinto fatturato. Performance demands rethinking how mining works into its maintenance processes how mining works strategy will go only so far per., which, as predicted, generated a significant yield gain faster, and most mining that. Let ’ s booms and busts, the miner is on the way to the. Mining works professor at the University of Sydney bacheca personale e imposta gli alert sulle di! 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