Image courtesy of Sandvik

The global digital mining market was valued at US$8.49 billion in 2023 and is projected to grow at a CAGR of 9.8% from 2024 to 2030, according to a Market Analysis report by Grand View Research. In Chile, the 2022 Digital Transformation Index found that mining suppliers achieved the most extensive digital transformation of any industry, landing 13 points above the national average for other industries. Benoit Richard, associate and director Chile at BBA, explained: “Chile will become a pioneer in digitalization, adopting technology, decarbonization and ESG guidance, not only because the country has the expertise, but also because it is necessary.”

The necessity is simple, said TIMining cofounder and CEO, Nicolas Jubera: “In Chile, where we are exploiting copper with grades of 0.3%, inefficiency is not an option. In other places, the pressure is felt in the political sphere, while in Chile all the pressure is on production.”

This pressure is multifold. Chile’s existing operations have exploited the same deposits for decades. Codelco’s Chuquicamata, for example, has mined the same deposit for nearly 100 years. Furthermore, the world is demanding more of the minerals that Chile has in abundance, which increases pressure to not only locate the deposits but also exploit them quickly and efficiently. Yet exploration and production must be done responsibly. Globally, for the third year in a row, ESG is EY’s top business risk and opportunity in the mining sector.

For Chile, a solution has presented itself, and the industry is capitalizing on it. Digitalization, the use of digital technologies and data, is being used to enhance every aspect of the mining operation, from exploration to production to processing. Digitalization is being used to improve performance and efficiency through automation, robotics, and integrated management systems, advance models with AI, increase safety, and reduce downtime, with real-time monitoring, predictive alert systems, and reactive detentions.

Exploring digitalization
In Chile, traditional exploration methods are being overtaken by digital tools, such as artificial intelligence and machine learning, to meet the urgent needs of the global energy transition, said Ignacio Torresi, executive vice president LATAM at Seequent: “It is fundamental for junior exploration companies wanting to enter Latin America to be disruptive and use techniques such as drones for faster/cheaper geophysical surveys, horizontal drilling, optimization of drilling, targeting core logging, geochemical survey solutions, and continuous modeling. Those are options that will speed up the process of advancing an exploration portfolio pipeline.”

According to S&P Global, for the 127 new mines that began operations worldwide from 2002 to 2023, the average time from discovery to commercial production was 15.7 years. For copper mining, exploration averages two to eight years and can cost from US$500,000 to US$15 million, according to the University of Arizona. On top of that, “With traditional methods, only 1 in 1,000 exploration projects become a mine,” emphasized Amitai Axelrod, COO and cofounder at VerAI.

New methods are necessary. “VerAI can shrink the traditional targeting window from three or four years to two months, while significantly cutting costs,” Axelrod continued.

Efficient capital use is crucial in exploration due to reduced liquidity, as evidenced by the TSX-Venture Exchange index, which has halved since early 2021 amid a three-year decline. “By leveraging AI, we offer the industry a way to de-risk exploration investments and improve the odds of success, benefiting not only juniors but also mining financiers and investors seeking more efficient and reliable methods for mineral discovery,” said Axelrod.

AI is also being used to better analyze exploration results at technology firm Veracio. “Data captured undergoes preparation for analysis by AI within our cloud system, followed by validation by Veracio’s geoscientists. This process ensures the delivery of results to our clients within 24 hours,” remarked Eduardo Molina, the firm’s commercial vice president LATAM. “Currently, AI is being used to assist in data analysis; in the future, it is expected to be able to collect and process information autonomously. This will require extensive learning and proper education by the industry. It will allow for faster and more accurate decision-making, as well as greater real-time knowledge of the mining deposit,” he continued.

The digitalization processes
Digitalization can significantly enhance the efficiency of ore extraction and comminution. In extraction, digitally based tools, like Minesense’s ShovelSense, are demonstrating results. “It resulted in metal production increases of 5% to 20%, averaging 12% across all installations,” said Jeff More, Minesense CEO. “By scanning each extracted bucket, Minesense’s datasets surpass traditional methods like blast hole sampling, offering information down to every 50 to 90 t in the pit,” he continued.

After extraction, Fourthane utilizes digital tools to identify conveyor faults, reducing unexpected stoppages. Fourthane general manager Alfredo Serrano explained: “We started services with X-ray equipment for inspecting conveyor belts with steel cords, enhancing our diagnostic capabilities. This modern technology now allows us to use X-ray filming equipment to examine the condition of steel cords throughout the entire conveyor belt in about 20 minutes. This process may be displayed on a screen, enabling operators to identify the belt's condition remotely.”

SAG mills, the most energy-intensive components in the mining industry, can be managed digitally to minimize energy use, said Oscar San Roman, general manager at Yokogawa Chile: “We developed an advanced control algorithm that predicts mill behavior, considering various inputs like the type of mineral, the amount of water added, and the amount of grinding media used. By adjusting these parameters, our automatic control system can regulate the mill's speed efficiently. Operating at optimal speeds reduces the consumption of water, grinding media, and, most importantly, energy. The algorithm must control dozens of variables, and how they correlate, in seconds. This task is impossible for a human being.”

Not even remotely an issue
Digitalization has paved the way to remotely run operations. The incorporation of technologies such as IoT devices, sensors, and automation systems into mining equipment enable real-time monitoring and control of machinery through robust network connections, allowing operators to manage and operate equipment from remote locations. “Remote integrated operation centers, used by companies like Teck, Anglo American and BHP, show how technology has gained ground in the mining industry. The implementation of autonomous operations, such as operating long-distance mining trucks from Santiago, demonstrates technological progress in mining,” said William Lilis, operations director South America at Wood.

The implementation of remote operating centers is becoming popular. Cloud-based supporting technologies increased from 75% in 2021 to 94% in 2022, predominantly utilizing information hosted in data centers according to the 2022 Digital Transformation Index. This enables continuous operation and accessibility from any physical location. “Today everything is in the cloud, and it is possible to work with different data from anywhere in the world. This also allows for autonomous operations, such as trucks that drive following an algorithm,” said Jorge Abraham, local division manager at ABB Chile.

This is changing the fundamental underpinnings of the mining industry, said Juan Cariamo, founding partner and co-CEO at Vantaz: “Twenty years ago, supervisors were stationed at the mine, observing operations firsthand. Now, they are far away in Santiago, relying on cameras, communication systems, and screen data. This represents a radical shift in mine supervision and operation.”

Fewer than 30 out of 100 young Chileans express interest in working in the mining sector. Addressing the talent shortage will therefore require a multifaceted effort. Remote operations are one way to draw talent that was previously underrepresented, said David Alaluf, managing director SC Chile at Endress + Hauser: “Automated remote systems eliminate the need for physical presence, reducing associated risks and costs. It also opens industry work to people who previously had limited access, like women. Historically, the mining industry has seen minimal female presence due to societal expectations. Automation and remote operation remove these barriers, allowing work from home or any location without the need for physical strength that was once necessary.”

A part of the network
The digitalization of mining operations would not be possible without networks. Transmitting the data collected in the field and transporting it to be analyzed and utilized requires robust network infrastructure. “Without a network, a mining operation cannot run autonomous trucks or teleoperate,” said Rodrigo Couto, president LATAM at Hexagon.

“The correct network”, Couto said, “should be multi-banded and multifunctional. The ideal solution will not only include LTE, but a combination of different network solutions like Wi-Fi, LTE, and MESH. Combining different network solutions leads to better coverage and performance.”

Using a mix of solutions and continuously adapting new ones is critical, said Alonso Quiñones, country manager at Torsa. “Standard technologies lose efficiency. GPS, for example, loses precision if there are thunderstorms or clouds… Our anti-collision system is not only based on current standard technologies like radiofrequency, GPS, and ultrawideband, but also LIDAR and AI sensors within the camera which validate, with our algorithm, how critical an event is.”

Digital twins
Every mine is unique emphasized Quiñones: “A mine is alive and no mine is the same as another. No mining unit has the same characteristics as another; the roads, the area, the operational techniques, the climatological conditions, and the altitude are all different. All technology companies should be able to adapt to each mining operation.”

In the Chilean mining sphere, this adaptation can come in the form of digital twins. “Mines not only require data management but also the analytical capacity to identify operational conditions of the mine’s terrain, like the condition of the roads. Mines require visualization to enable management of such things. Digital twins help increase productivity, efficiency, quality, and safety of mining operations,” said Patricio Picero, general manager at Rockblast Mining Technology.

The company developed Rockvision, a 3D visualizer that allows, through connection with drones, direct visualization of each parameter of a mine. It is a physical replica, in real-time in a virtual form, Picero explained.
Digital twin technology allows mines to adjust operations around operational changes in real time, said Nicolas Jubera, cofounder and CEO at TIMining: “Many current control intervals are a month-long, only allowing operations to adapt once a month. We manipulate and transform data in real-time to allow operations to realize and correct deviations. This reduces control intervals, allowing operations to increase productivity and operate more efficiently. We can do this in different areas including geotechnics, truck operation, and drilling, among others.”

TIMining contributed to a production increase of 2% across 50 mines in Chile, which is a production result equivalent to one entire mine.

Digital solutions will be one of the main factors enabling the industry to meet its goals. As the world goes digital, the Chilean mining industry has proven it will be at the forefront of this change.