Leading Opinions

Applying a manufacturing imperative to the mining world

Solution providers in the industry are concerned with how to render these phrases obsolete. From MinLog’s perspective, the answer lies in a Mining Execution System (MES) and the company has made the development of an enabling architecture a primary focus as it builds on it existing client value proposition in the management information system space, using their experiences to shape the end result.

 

Global consolidation of thought, action and accountability

In the commodities arena specifically, we are in an era of standardisation in the practices applied to operational environments, with the result that the most astute practices set the standard and all global players are required to conform regardless of what is acceptable in their own country. A compelling example of this shift is how multinational organisations are judged on their safety statistics across their global operations, and not from a regional perspective.

With all these factors setting the scene for increased automation of the mining executional value chain, the stark reality is that the mining industry is lagging behind in terms of automation across business processes. When considering the typical mining hierarchy layers of equipment, process, operations and enterprise, there is a particularly troublesome gap at the operational level. This historic lack of integration has given rise to terms such as ‘silos of automation’ and the requirement for ‘one version of the truth’ calling for alignment of the disciplines of production, engineering and quality. The phrase ‘bridging the gap’ has also found its way into industry parlance reminding business leaders of the great divide that exists between the production and enterprise levels.

 

Harnessing invaluable information

With renewed focus on efficiency comes a greater appreciation for the quality of information inherent across the mining executional value chain. It is now widely accepted by mining companies that an Enterprise Resource Planning (ERP) system and Management Information System (MIS) are not simply ‘nice-to-haves’, but essential tools in realising the value component of the mining executional value chain. The better the available information, after all, the better a company can manage its entire operation, including corporate and site governance, auditing practices, ensure accurate and transparent reporting consistent with legislative requirements, and utilise resources.

Well-managed information also helps a company meet the requirements of new developments in terms of the Company’s Act and governance guidelines like those identified in the King III Report, such as social responsibility and stakeholder engagement.

 

Growth and opportunity abound in recovering markets

For the mining sector worldwide, the post-global financial crisis era heralds a renewed focus on commodities such as energy, precious metals and iron ore, and the systems that are deployed to manage them.

Demand for these products and systems is higher than before the downturn and the sector’s dark hours have highlighted inefficiencies and imparted invaluable lessons that can only strengthen the industry in the years to come.