Scientific and technological innovation promotes the high-quality development of mining industry

3. Technological innovation is the key to the rapid development of mining enterprises

Mining companies are gradually adjusting their strategies and business models, including making technological innovation the cornerstone of their growth strategies. At present, the key innovation that can make a step change in mine operational capacity is the adoption of digital technology.

Some companies have proposed the "mine of the future" concept for decades and have developed, tested and applied new digital technologies. However, there are still some enterprises have not moved, affecting the realization of the "future mine" process.

3.1 The technological innovation "leader" will gain a competitive advantage

McKinsey analysis shows that the application of AI in the mining industry will bring a cumulative 122% cash flow change for technological innovation "front-runners" and only 10% cash flow change for "followers".

The "front-runner" will have an initial competitive advantage, bringing their cost curve down and giving them an edge over competitors, such as higher margins and market value. It can be said that the entire industry will deeply realize that digital technology will be a cost reduction factor, which can bring the cost curve down across the industry and ultimately keep mineral prices lower.

It is clear that the key to the long-term development of mining companies is to stay ahead in innovation. To be clear, digital accessibility is "open" to businesses or operators of all sizes, as well as smes, and will not be exclusive to developed economies.

3.2 Technological innovation makes the mining industry better, faster and more efficient

Rio Tinto, one of the pioneers in the mining industry, launched the Mine of the Future initiative in 2008 to find advanced ways to extract minerals while reducing environmental impact and further improving safety. The concept sounds broad, but as one of the industry's leaders in technological innovation, they have focused on four main areas in recent years: autonomous truck haulage system, automated drill system system, its automated rail (track) transport system from mine to port (AutoHaul), and its remote operations center in Perth, Australia. Rio Tinto put its first driverless rail system into operation in late 2018, achieving the development goals in these four areas. Chris Salisbury, Chief Executive Officer of Rio Tinto Iron Ore, said: "The opening of a pioneering laboratory in Brisbane, Australia, will help deliver the Rio 4.0 concept and ultimately make the mining industry better, faster and more efficient.

3.3 Many mining enterprises implement technological innovation strategies

Although BHP Billiton (BHP) has not announced a formal plan for its stock holders, its technology strategy is focused on integration. Their integration strategy is to connect everything by 2025 to create a "bridge" between the present and the future, as well as to lay the foundation for fully integrated and highly automated operations.

BHP Billiton has globalised technology development and now applies R&D, solution execution and technology operations across the value chain. The company is applying a "systems engineering" approach to analyze the mine life cycle in conjunction with its assets to identify constraints and optimize investments. This facilitates the rapid replication of best practices throughout the company's operations.

An important pillar of BHP's technology strategy is to build an ecosystem of partnerships with established and new companies, many from original equipment manufacturers. These partnerships give BHP access to leading technology and external talent to help it find solutions to complex problems. BHP Billiton has invested in partnerships with universities, including a $3 million donation to a consortium of the University of Melbourne, Stanford University and the University of Cambridge to draw global attention to CO2 storage and support the establishment of future large-scale carbon capture and storage projects.

In Canada, Teck Resources has four research and development centers covering different technology development and innovation efforts, including the evaluation of the effectiveness of current technologies and the development of new breakthrough technologies. Teck Resources' technology innovation is focused on four main areas - safety, sustainability, capacity and growth - which will be supported by the ongoing digitization of operations.

Teck Resources has established strategic partnerships with regional and global companies to develop and apply pioneering technologies such as open source fleet management systems, the first electric semi-automatic drilling system, virtual reality mines, and the first shovel ore sorting technology. At the same time, Teck Resources has formed a dedicated interdisciplinary field team to examine and promote opportunities for the development and innovation of new technologies, which contributes to the analysis of the benefits of new technologies and the planning of technology testing, validation and demonstration.