As the world moves towards net-zero, technologies like electric vehicles and battery storage are becoming critical to the energy transition.
These systems require far more raw materials than traditional energy infrastructure, and are driving incredible demand for critical metals such as lithium, copper, cobalt, and nickel. So vital are these materials that we’re starting to see companies reliant on them invest directly into their supply chain, such as Apple’s announcement to invest in MP Materials. This boom in demand may appear to be a ‘good problem to have’ for mine operators, but as anyone in the sector knows, the reality of keeping up is more complex. Bringing a new mine online can take more than 15 years, and existing sites are already struggling to keep pace.
Meanwhile, projects are becoming more remote and technologically complex, while a global talent shortage – affecting everything from engineering to operations – is making it harder to scale at the pace the market requires.
The industry is also dealing with rising costs, a difficult global supply chain environment and pressures to comply with ESG regulations – altogether, these headwinds are creating an air of uncertainty around delivery timelines and long-term capital planning.
The sector is under intense pressure to deliver more critical metals faster and sustainably.
Yes, it’s no small task, but it is achievable. And it comes down to digitally transforming the design and execution phase of mine development.
Reaping the rewards
To build more mines on time – and responsibly – owner-operators and EPCs are turning to full-scale digital engineering platforms.
Cloud-based design tools, AI-driven modeling and real-time collaboration environments are enabling companies to streamline and enhance every phase of mine development – from design and build to commissioning and handover.
This full-spectrum visibility offers a practical solution to the sector’s long lead times and often spiralling costs.
Reduced risk
Digital engineering platforms boost the accuracy of cost forecasting, enabling EPCs and owner-operators to run multiple build-out scenarios with disparate inputs and constraints. This results in better capital allocation and fewer budget overruns.
According to McKinsey, mining companies that deploy advanced digital technologies and analytics can reduce CAPEX by up to 20 per cent and cut project delivery times by up to 30 per cent.
Reusable designs
Standardised digital solutions enable mining companies to create design templates that can be replicated across multiple projects, ensuring engineers don’t have to reinvent the wheel every time. This enables faster project iteration, lower costs and more predictable outcomes.
This process ensures mining operators and EPCs can work together seamlessly, with a smooth handover each time.
Integrated project delivery
Cloud-enabled design tools will accelerate delivery and reduce rework. Bringing these together in an integrated engineering and design suite that supports end-to-end delivery from construction to operations can cut schedule times by as much as 20 per cent compared to traditional sequential planning, according to McKinsey analysis.
How? These platforms connect cross-functional teams – from engineers and suppliers to construction crews – across a shared data environment. This means that, when one team updates a design spec, the change flows across the system, eliminating version conflicts.
With all stakeholders working from the same, up-to-date information, there is reduced chances of miscommunication and errors that can lead to delays. And the evolution towards AI-assisted engineering identifies cost-saving opportunities early by flagging potential problem areas, supporting design optimisations while streamlining processes.
But digital delivery is only as strong as the partnership between projects and operations, and both parties must evolve their digital capabilities in unison.
Projects should deliver a rich, robust digital asset containing everything operations will need for decades to come – they can’t be seen as just a handover document. In turn, operations must be ready to leverage every ounce of the asset’s full potential while maintaining it and protecting its integrity.
Digital mining in action
In the real world, global mining firms are achieving measurable gains through digital-first design and build.
For example, Rio Tinto deployed a suite of digital tools to drive greater efficiency, transparency and control across mine development projects. One major advance has been the shift towards design reuse. For the first time, an entire crushing facility – including conveyor systems – was replicated from one project to another.
This approach is a prime example of the reuse of entire designs, significantly reducing engineering time and capital expenditure.
This example is soon to become the norm if those in the mining sector are ready to adapt and transform. And while the digital transformation of the mining sector has been slow compared to other sectors, we are seeing an increased appetite for change.
The mining industry has entered a period of unprecedented demand – a time of significant challenges, but also vast opportunities. What is clear – not just in mining, but everywhere – is that highly digitised organisations consistently outperform peers in productivity and profitability.
As the world continues its march towards net zero, it needs the mining sector more than ever before – and while the first steps towards a digital future may seem bold at first, they’re also the key to meeting today’s and tomorrow’s demands for critical minerals quickly and sustainably. And those companies that meet these challenges through a digital lens will be primed for long-term success.
By Glenn Kerkhoff, Global Industry Principal, Mining, Metals and Minerals, AVEVA
