IT and Digital Transformation Manager at Sierra Gorda SCM

Today, mining continues to play a crucial role in global development. The growing demand for essential minerals and metals in industries such as technology, energy, construction and manufacturing has elevated the strategic importance of mining in the global economy. However, the industry faces significant challenges, including, for example, the low grade of the mineral, the reduction of the environmental impact in the production process, and social responsibility, among others, which highlights the importance of adopting increasingly efficient mining practices often leveraged by innovative technologies.

Recently, with the new concepts of disruptive innovation, it has become very fashionable to think that a large part of the production processes, operations support, environmental processes, etc., can be completely rethought and delegated to emerging technologies, and mining is not exempt from this.

Mining companies, like many productive companies, are not characterized by creating technology; their main focus is the product they sell and the adoption of any new technology; generally, in this area, it is sometimes a slow process, especially if the new technology aims to impact a critical process for the operation, which has really demanding productive indicators and where any lost hour could have a significant impact.

"Recently, with the new concepts of disruptive innovation, it has become very fashionable to think that a large part of the production processes, operations support, environmental processes, etc., can be completely rethought and delegated to emerging technologies and mining is not exempt from this."

What was described above can be a huge incentive factor if we see “the glass half full,” considering that if the impact caused by the implemented technology affects a key process in a minimum percentage, the return can far exceed any previous attempt.

So, what is needed to encourage the trial and error exercise in completely demanding operations, where they “don't stop” and where every hour lost by a pilot compromises the weekly, annual, and monthly production budget?

The first idea is related to cultural change, generating a culture of resilience, especially considering that the process of technological innovation is often a path full of uncertainties, frustrations, and many failed attempts, but at the same time, it is a path which, once completed, brings a lot of satisfaction and learning for the organization and for all those who were part of the project.

Secondly, the associated innovation strategy, organizational structure and budget for innovation projects should be considered. Depending on the innovation strategy, centralized or decentralized, open or closed, or any other organizational structures, agile cells per project may be created, and a budget may be allocated to be executed; this execution should be measured based on the return of each project.

A third point to consider is the agility in the response and the capacity for scaling and growth of the base technological infrastructure, such as communication networks, servers, etc. This happens because the construction of prototypes demands very quick work environments where setting up the laboratories and with that, the technological demand for these new projects is also increasing.

A fourth idea could be the incorporation of innovation KPIs (Key performance indicators) within the already existing operational KPIs, which implies a paradigm shift that has to come from Investors, General Managers, and so on in order to encourage pilot testing, the incorporation of new technologies or the change in processes. To impulse it, it would also be important that the performance indicators of the areas and people be on the same line. People must be given time to work on innovation, to be part of the project cells and not see it as additional work to the operational one. Once the performance of the employees begins to be measured with metrics other than operational ones, the innovation will be incorporated as part of regular work.

Finally, another fundamental point to consider is personnel training. With all the new emerging technologies, we can no longer stick to teaching only Excel or PowerPoint; business academies must change too; for example, learn to manage projects with agile methodologies, know how to interact correctly with generative artificial intelligence to take advantage of them and to understand how this can support process improvement.

Although in the previous paragraphs, a series of ideas were raised without a structured order of succession, there are many others that, depending on the reality of each company, can be included, modified, or changed. The important thing is that each company begins to consider innovation as a relevant factor for reducing costs, increasing processing, and improving competitiveness, among others.

The stimulating thing about this whole topic is that despite the way in which each company approaches innovation, clients and collaborators are learning how to iterate more quickly between each prototype; they are learning how to make increasingly complete pilots where there is a high percentage of certainty to ensure the result before intervening in operations and with this, the industry is increasingly closer to the breaking point, where the unresolved need and the innovative solution takes only months or weeks to converge.