According to Madison Margolin in The Periodic Table of iPhone Elements, the human body is arguably the most complex machine on the planet, containing approximately 30 of the 118 elements on the periodic table. Yet, an iPhone requires 75 – ranging from lithium in batteries to silicon in transistors – including as many as 18 rare earth elements. Most of these are obtained through mining, which produces $1.5 trillion worth of this material annually, accounting for 2% of global gross domestic product (GDP) on its own, according to the 2020 World Mining Data report.
This vital industry itself consumes a lot of resources, while requiring serious investments in equipment and maintenance. Companies in the two primary kinds of mining — surface and underground — are highly motivated to get a better grasp on the condition of both personnel and equipment. However, mining has been conservative to adopt new approaches, sacrificing potential advancements by clinging to legacy technology simply because it’s in place and already adheres to a regulatory framework.
Meeting this demand and associated challenges requires new approaches. Mining organizations must monitor and automate heavy fixed assets, connect disbursed and diverse operations, while empowering and protecting workers. To do this, savvy operators are partnering with original equipment manufacturers (OEMs) on connected use cases. These are laying the foundation for a smarter future of mining, leveraging data, autonomous machines and advanced tech for higher productivity, better safety and reduced operational costs.
And as Ericsson’s latest research shows, these smart mines will offer dramatic new cost efficiencies, ROI exceeding 200%, greatly improved worker safety and a more responsible environmental impact.
A market and means
The smart mining market will triple by 2025, according to Mordor Intelligence. By then, half of all mines will likely have connected workers to improve safety and productivity throughout their operations. Additionally, while autonomous machines such as load haulers require advanced infrastructure, there has been rapid acceleration in adoption over the past decade. So, Mordor anticipates that by then, 25% of mines will also have autonomous operations
Ericsson’s report, "Connected Mining - A guide to smart mining transformation with private cellular technology," details the challenges mining faces. We examined how private cellular networks — typically 4G and 5G — will play a critical role in overcoming these by delivering high-speed connectivity, low latency and strong performance in remote environments. Further, the new report features a deep-dive analysis of five high-value use cases that illustrate how 5G-ready networks address specific pain points and offer a path to the future.
Collaborating with Ericsson once again were researchers from Arthur D. Little. Two mining-specific partners also lent their expertise: Komatsu, providers of essential equipment, systems and solutions to extract fundamental minerals for developing modern infrastructure, technology and consumer products; and Epiroc, producers of drill rigs, excavation and construction equipment with a focus on solutions for automation and interoperability.
Challenges and transformation
Employees, investors and government agencies, as well as public opinion, constantly pressure the mining industry to improve safety, reduce impact and update mines so they are more in sync with our digital age.
The report takes a comprehensive look at the issues and how digital transformation can help companies innovate around material extraction and reap dividends. As an example, adoption of autonomous and remote operations involving haulers, load-haul-dump vehicles and drill rigs can not only improve efficiency, they keep humans from harm. Management can also drive efficiency by collecting tracking data for insights to improve operations.
Further, the report details what’s necessary for establishing the foundation of connectivity that’s required for smart mining. Any network infrastructure deployed must be able to handle large amounts of data that vehicles, equipment and workers will generate. For instance, remote drilling systems and unmanned aerial vehicles (UAVs) produce a live video feed that must be transmitted to a remote operations system. That requires ample bandwidth and a reliable connection.
5G-ready private cellular networks are well positioned to handle such requirements by reducing latency by 95%, providing high uplink speeds and more. It also delves into how these networks are highly optimized for the Internet of Things (IoT) with low energy consumption, strong security and high device density.
As a result, a mine can create a single backhaul for all communications instead of installing various networking equipment. And because this is a sizable investment, the report is underpinned by a solid evaluation of how future use cases can benefit mines, which justify the capital expenditure and return the best ROI.
A case to be made
To gauge the net economic, social and environmental value, the report is based on two baseline mines - one surface and the other underground – determined with KPIs from actual mines.
- Surface mine: A gold mine in Argentina with 25 million tonnes of annual production, revenues of $530 million USD and gross profit of $170 million
- Underground mine: A gold mine in Brazil with 2 million tonnes of annual production, revenues of $195 million USD and gross profits of $85 million
Working with Komatsu and Epiroc, we then created five use cases and analyzed the incremental value delivered by cellular connectivity from deployment to operational-ready state. In each instance, we detail how it would benefit the baseline mines we describe above. Use cases include:
- Autonomous vehicles
- Real-time condition monitoring
- Remote-controlled drilling rigs
- Unmanned drone inspection
- Smart ventilation control
Striking paydirt
While there are many potential smart mining use cases, our research indicated the five above are the most important, with autonomous vehicles as the most beneficial to surface mines and smart ventilation the most beneficial for underground mines.
What were the findings?
All use cases would pay for themselves in two to seven years, and if all five are deployed together, they provide complete payback within three years. Beyond the great financial benefits, smart mining creates a substantial triple bottom line that includes improved safety for workers and a more responsible environmental impact.
The pre-condition for hitting this kind of operational “paydirt” is the implementation of fast, reliable, secure connectivity that only a 5G-ready private cellular network can provide. To see the full findings, read the report “Connected Mining” and check out the smart mining value calculator, to see the required costs and ROI for your own mine.
Learn more
Click here and download your free copy of "Connected Mining - A guide to smart mining transformation with private cellular technology."
Smart mining value calculator
